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Home My WebLink About2011-07-05_cityofsanrafael_930de30d862c25681fccfd170a2d2517CITY OF� Agenda Item No: 8 Meeting Date: July 5, 2011 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Janet Pendoley Interim Finance Director City Manager Approval.h W4414 SUBJECT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal Year 2010-2011; b) Approving Fiscal Year 2011-2012 GANN Appropriation Limit. RECOMMENDATION: Adopt Resolutions appropriating unappropriated Revenues and approving 2011-2012 GANN Appropriation Limit. BACKGROUND: On November 6, 1979, California voters passed Proposition 4. Statutes clarifying certain provisions of the Proposition are now codified in article XIIIB of the California Constitution. This Article is commonly known as the "GANN Initiative". The Initiative established constitutional spending limits allowable for California governmental agencies based on the Consumer Price Index and population growth. Concurrent with Proposition 4, the Revenue and Taxation Code, Section 7910, requires each local governmental unit to establish its appropriations limit by the beginning of each fiscal year. Due to the GANN's constraint on State and local governments to respond effectively to the demands of rapid growth around California, a legislative -business -labor coalition drafted and supported Proposition 111, which was adopted June 5, 1990. Proposition 111 makes crucial adjustments to the GANN by allowing it the flexibility to operate in a growing economy while retaining its purpose in placing a limit on government spending. The following are the changes Proposition 111 made to the GANN Initiative. Prior law required spending limits to be tied to the Consumer Price Index or California Per Capita Personal Income growth, whichever was lower. The new provisions allow an agency to select the California Per Capita Personal Income or non residential property assessed valuation growth, whichever is higher. FOR CITY CLERK ONLY File No.: Council Meeting: Disposition: Cities may now choose to use the percentage rate of change in population within the City or county, whichever is higher. ANALYSIS: The Appropriation Limit for the current year (FY 2010-2011) is based on the prior year Appropriation Limit adjusted for the change in assessment roll for non residential construction times the change in the population for Marin County. For fiscal year 2011-2012, we are using a 2.51 percent increase in the change in California Per Capita Personal Income from 2010 to 2011 (this figure is provided by the State of California Department of Finance). For the change in population, we are using 0.90 percent — representing the change in population for Marin County, which is higher than the City's figure of 0.81 percent for the period of January 2010 to January 2011 (provided by the State of California Department of Finance). A resolution is attached which authorizes the new Appropriation Limit for next year. Based on our calculation, the 2011-2012 Appropriation Limit is $100,987,678 (Exhibit A to resolution). In November 2010, the citizens of San Rafael passed Measure I which increased the paramedic tax rate ceiling on residential units and on non-residential structures. An increase in the Appropriation Limit was included in the measure; therefore, $3,890,000 increase for this tax increase is included in the 2011-2012 Appropriation Limit calculation. The actual budget subject to the limitation excludes self- supporting funds, capital improvement funds, capital outlay grant funds, and specific exclusions such as the Gas Tax Fund. The Fiscal Year 2011-2012 appropriations subject to the Gann Limit is $50,180,413 (Exhibit B to resolution). Therefore, the City could appropriate an additional $50,807,266 before the legal limit would be reached. Also, as part of this report, we must adopt a Resolution under Proposition 4, to roll over excess revenues in fiscal year 2010-2011 to be included in the Gann limit calculation. A separate Resolution is attached for this action. FISCAL IMPACT: By approving the Resolutions, the City's Appropriation Limit for fiscal year is increased to $100,987,678 for fiscal year 2011-2012, and the 2010-2011 budget is amended to appropriate year-end unappropriated 2010-2011 revenues into a reserve for working capital. OPTIONS: In adopting this report as presented, the City Council satisfies the requirements of Article XIIIB of the California Constitution and Proposition 4. ACTION REQUIRED: The Council accepts this report and adopts the Resolutions as presented. ATTACHMENTS WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2011\City\Gann Limit 11-12.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2010-2011 WHEREAS, the City of San Rafael may have unappropriated revenues in our operating funds as of June 30, 2011; and WHEREAS, the City will require the use of these funds in the future; and WHEREAS, the City Council wishes to appropriate these revenues for future use. NOW, THEREFORE, BE IT RESOLVED by the City Council of San Rafael that the 2010- 2011 Budget is amended to appropriate all year-end unappropriated 2010-2011 revenues into a reserve for working capital. BE IT FURTHER RESOLVED that all previously appropriated year-end revenues and reserves are classified as working capital reserves. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Tuesday, the 5th day of July, 2011, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ESTHER C. BEIRNE, City Clerk MManagennent Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2011\Appropriating Revenue 10-11.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2011-2012 GANN APPROPRIATIONS LIMIT AT $100,987,678 WHEREAS, Proposition 4, which was voted upon by the voters of the State of California on November 6, 1979, places various limitations on the fiscal powers of state and local governments; and WHEREAS, Senate Bill 1352, which implements Proposition 4, requires that the governing body of each local jurisdiction shall establish its Appropriations Limit at a regularly scheduled meeting or noticed special meeting; and WHEREAS, documentation used in the determination of the Appropriations Limit has been available in the Finance Department as provided by Senate Bill 1352; and WHEREAS, the City has elected to use the percent change in the population of the Marin County from January 2010 to January 2011, and the percent change in California Per Capita Personal Income, as provided by Proposition 111. NOW, THEREFORE, BE IT RESOLVED that the City Council of the San Rafael, pursuant to the formula set forth in Senate Bill 1352, does hereby establish the Appropriations Limit for fiscal year 2011-2012 for the City of San Rafael at $100,987,678, as documented in Exhibit A, and further establish the 2011-2012 Appropriations Subject to the Gann Limit at $50,180,413 as documented in Exhibit B, which Exhibits are attached hereto and incorporated herein by reference as though fully set forth. I, ESTHER C. BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting on the City Council of said City held on Tuesday, the 5th day of July, 2011, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: ESTHER C. BEIRNE, City Clerk EXHIBITA GANNUUMUTATUON CALCULATIONFiscal Year 2011-2012 (A) (B) Fiscal = Cost of Living Change in Population Factor Current Year Subject to Year Changein Assessment Limitation Gann Limit California Roll for Changein Changein Per Capita Nonresidential Population for Population for Personal Income Or Construction San Rafael Or Marin county (Highest B X (Source: State) (Source: County) (Source: State) (Source: State) Highest A) 94/95 $ 24,635,128 1.060000 $ 26,113,235 96/97 4.67 5.50 1.37 IA3 1.070000 $ 27,941,557 97198 4.67 5A0 2.17 1.64 1.080000 $ 30,176,882 98199 4.15 -6.80 1.42 1 56 1.080000 $ 32,591,032 00/01 4.91 927 1.50 132 1.112600 $ 39,154,905 1.060000 $ 45,073,561 04/05 3.28 05106 5.26 1.59 0.07 0.33 1.056100 $ 52,379,468 $ 43,215,534 08/09 4,29 0,81 1.075100 $ 66,617,708 $ 51,368,817 Value selected for Factor calculation *Includes increase for Paramedic Tax Revenue Generated byMeasure P "Includes increase for Paramedic Tax Revenue Generated byMeasure | City of San Rafael Appropriation Limit Analysis FY 2011-12 EXHIBIT B 2011-2012 Fund # 2011-2012 Less Less Appropriations Projected Exempt Non -Tax Subject to Budget Expenditures Revenues Gann Limit Total Appropriations Fund # General Fund 001 $ 53,200,530 $ 347,260 $ 8,401,827 $ 44,451,443 Abandoned Vehicle Fund 200 147,920 1,250 130,410 16,260 Stormwater Fund 205 1,136,010 3,360 805,390 327,260 Emergency Medical Services 210 5,596,180 43,610 2,100,000 3,452,570 Library Fund 214 259,840 18,960 44,340 196,540 Library Special Assessment 215 783,900 7,180 776,720 Street Cleaning Fund 220 10,310 40 - 10,270 Recreation Revolving 222 3,462,050 38,040 2,494,520 929,490 Street Maintenance Fund 225 - - - - Police Youth Services 230 6,900 - - 6,900 Open Space Fund 405 12,960 - - 12,960 Total Appropriations $ 64,616,600 $ 459,700 $ 13,976,487 $ 50,180,413 Appropriation Limit $ 100,987,679 Available Room Under Appropriation Limit Excludedfunds include self-supporting funds, capital improvement funds, capital outlay grant funds and specific exclusions such as the Gas Tax Fund. $ 50,807,266 W.\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\1 1-1 3\Two Year Budget 2011-13\Gann Limit 11-12\Gann Limit Growth 11-12.xls;Sub to Limit