HomeMy WebLinkAboutFIN Amend FY2015-16 Budget & Approve FY2016-17 GANN LimitAgenda Item No: 39
CITY OF
Meeting Date: August 15, 2016
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Mark Moses City Manager Approval:
Finance Director
TOPIC: CLOSING ADJUSTMENTS TO FISCAL YEAR 2015-2016 BUDGET AND
ADOPTION OF LEGAL APPROPRIATIONS LIMIT FOR FISCAL YEAR
2016-2017
SUBJECT: RESOLUTIONS 1) AMENDING THE BUDGET FOR FISCAL YEAR
2015-2016; 2) APPROPRIATING UNAPPROPRIATED REVENUES FOR
FISCAL YEAR 2015-2016; AND 3) APPROVING FISCAL YEAR 2016-2017
GANN APPROPRIATIONS LIMIT
RECOMMENDATION: ADOPT RESOLUTIONS
BACKGROUND: Since the adoption of the City-wide budget on June 6, 2016, the review of
fiscal year 2015-2016 appropriation needs has been completed, as well as the calculation of the
GANN Appropriations Limit for fiscal year 2016-2017. A resolution amending the fiscal year
2015-2016 budget has been prepared to address the final expenditure -related actions of the
current fiscal year, and two resolutions, one to appropriate unappropriated revenues for fiscal
year 2015-2016, and another approving the GANN appropriations limit, have been prepared to
address the requirements of the relevant California statutes that govern tax spending authority.
On November 6, 1979, California voters passed Proposition 4, adding new Article XIIIB to the
California Constitution. This article is commonly known as the "GANN Limit Initiative." This
Initiative established constitutional spending limits allowable for California governmental
agencies based on the Consumer Price Index and population growth. Section 7910 of the
Government Code, which provides for the implementation the Initiative, requires each local
governmental unit to establish its appropriations limit at the beginning of each fiscal year.
Proposition 111, passed in 1990, adjusted the formula used to calculate the appropriations limit.
The provisions in Proposition 111 allow an agency to calculate its growth factor by using the
greater of California Per Capita Personal Income or nonresidential property assessed valuation
growth, and by using the percentage rate of change in population within the City or county
(whichever is greater).
FOR CITY CLERK ONLY
File No.: 8-5
Council Meeting: 08/15/2016
Disposition: Resolutions 14174. 14175. 14176
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
ANALYSIS:
Resolution Making Amendments to Fiscal Year 2015-2016 Budget (reference Exhibit A
to Attachment 1- Resolution Amending the Citv-Wide Budget)
General Fund: The proposed changes reflect a $15,748 increase to General Fund transfers in,
due to a disbursement of residual funds from the account used to report transactions related to the
San Rafael Sanitation District (SRSD). The proposed changes also include two reductions to
General Fund appropriations: (1) A reduction of $380,000 in expenditures to remove the
allowance for Measure E - Public Safety Facilities pre -project expenditures that are now reflected
in the capital budget; and (2) a reduction of $100,000 in transfers out for the supplemental
massage ordinance enforcement activity which is now being tracked and reported in the General
Fund. These adjustments are not mandatory, but are recommended to provide a more accurate
accounting of the City's General Fund resources and resource needs. No formal changes are
being recommended for General Fund revenues because there is no need to appropriate
additional funds. The proposed changes are presented in Tables I and II of Exhibit A to the
Resolution amending the City-wide budget, attached hereto as Attachment 1.
Other Funds: A few changes are required to reflect the final operating activity in other funds. An
additional $355,232 in appropriation authorization is recommended to reflect the following
operational activity (also reflected in Table III of Exhibit A to Attachment 1).
$270,000 — required to reflect actual operational activity for Recreation Fund (offset by fees)
35,000 — Police Safety Grant actual expenditures (offset by approved grants)
25,000 — Bay Point Lagoon operating expenses (covered by assessments)
5,000 — required to reflect actual expenditures in Emergency Medical Services Fund
4,484 — other adjustments and disbursements
15,748 — transfer out to the General Fund to disburse residual funds (SRSD)
$355,232
The impact of these recommended changes on City-wide appropriations is presented in the
following table (Table IV of Exhibit A to Attachment 1):
Adopted Approved Current
All Funds Budget
Proposed
Revised Annual
Changes Budget
FY15-16
Changes
Appropriations
General Fund $69,481,296 707,432 70,188,728
(480,000)
$69,708,728
Other Funds $46,558,537 21,521,897 68,080,434
355,232
$68,435,666
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
Resolution Approving GANN (Appropriations) Limit
The Appropriation Limit for each year is based on the prior year Appropriation Limit, adjusted
by factors that incorporate changes in local cost of living and population. For fiscal year
2016-2017, the City is using a 5.37 percent increase or change in California's per capita personal
income from January 1, 2015 to January 1, 2016 (this figure is provided by the California
Department of Finance). For the change in population, the City is using 0.33 percent —
representing the change in population for Marin County, which is higher than the City's figure of
0.12 percent for the period January 1, 2015 to January 1, 2016 (provided by the State of
California Department of Finance).
Attachment 3 to this staff report is a Resolution that authorizes the new Appropriation Limit for
fiscal year 2016-2017, which has been calculated to be $123,841,017 (Exhibit A to Attachment 3
- GANN Resolution). 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 2016-2017 appropriations subject to the GANN Limit is $71,967,785
(Exhibit B to Attachment 3). Therefore, the portion of the City's budget appropriation that is
restricted by the GANN limit is $51,873,232 under the legal limit.
Resolution Appropriating Unannropriated Revenues For Fiscal Year 2015-2016
Also, in connection with the adoption of the GANN limit, the City must adopt a Resolution
under Constitution Article XIIIB, to roll over previously unappropriated revenues in fiscal year
2015-2016 to be included in the GANN limit calculation. A separate Resolution has been
prepared for this action and is attached as Attachment 2.
FISCAL IMPACT: The proposed budget amendments have no impact on General Fund
expenditures and only serve to adjust the spending authority in two funds (one special revenue
and one capital fund), based on actual activity during the year. There is adequate funding in these
funds to support the budgets as amended.
There is no fiscal impact associated with fulfilling the legal requirement to set the City's
Appropriation Limit at $123,841,017 for fiscal year 2016-2017. The action to appropriate
revenues not appropriated by fiscal year-end supports the calculation of the Appropriations Limit
and has no fiscal impact.
In adopting this report as presented, the City Council satisfies the requirements of Article XIIIB
of the California Constitution.
RECOMMENDATION:
Accept this report and adopt the Resolutions as presented.
ATTACHMENTS
1. Resolution Adopting Amendments to the City -Wide Budget (FYI 5-16), with Exhibit A
2. Resolution Appropriating Unappropriated Revenues for Fiscal Year 2015-2016
3. Resolution Approving Fiscal Year 2016-2017 GANN Appropriations Limit with Exhibits
A, B
W:\\Council Material\Staff Reports\2016\City\Gann Limit 16-17.doc
RESOLUTION NO. 14174
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ADOPTING AMENDMENTS TO THE CITY-WIDE BUDGET FOR
FISCAL YEAR 2015-2016
WHEREAS, the City Council approved Resolution 13932 adopting the fiscal year
2015-2016 budget, and has taken other actions throughout the year amending said budget; and
WHEREAS, the City Council reviews periodic reports and recommendations from staff
regarding the City's financial condition, including updated revenue projections, newly available
resources over which the City Council has discretion, and emerging operational issues that
require a change in budget authority; and
WHEREAS, staff has submitted a report and made recommendations regarding changes
to the operating budget for fiscal year 2015-2016, based on the identification of operational areas
in need of adjustment; and
WHEREAS, there are certain special revenue funds whose required appropriations are
affected by actual demand for paid services; and
WHEREAS, there are sufficient resources in the designated funds to support the
recommendations presented; and
WHEREAS, after examination, deliberation and due consideration, the City Council has
accepted the staff report and recommendations.
NOW, THEREFORE, BE IT RESOLVED, by the San Rafael City Council that
Resolution 13932 for fiscal year 2015-2016 is further amended to increase General Fund
revenues and other resources to $74,498,529, authorize a decrease in total general fund
expenditures to $67,217,478, authorize a decrease in general fund transfers out to $2,491,250, for
a new total general fund appropriations of $69,708,728. Further, the Resolution is amended to
increase other fund resources to $60,634,482, expenditures to $65,567,956 and transfers out to
$2,867,710. These changes as presented on Exhibit A result in total City-wide appropriations of
$138,144,394.
NOW, THEREFORE, BE IT FURTHER RESOLVED, by the San Rafael City
Council that the City Manager has the authority to make further adjustments to accommodate
actual results in special revenue funds whose expenditures are impacted by actual demand for
services within the overall appropriations within the special revenue fund category. The City
Manager will report to the City Council the result of any actions taken under this authority.
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 Council of
said City on Monday, the 15th of August 2016, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
�� M
ESTHER C. BEIRNE, City Clerk
W:A\Council Material\Resolutions\2015\City\FinalAmend City budget 14-15.doc
TABLE I
CHANGES TO GENERAL FUND REVENUES AND OTHER SOURCES
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
Adopted Budget FY
Approved
General Fund
2015-16
Changes
Revenues
72,394,767
877,287
Transfers -in
1,357,349
(262,287)
FY15-16 Sources
73,752,116
615,000
FY14-15 Rollover
69,481,296
115,665
Total Resources
73,752,116
730,665
TABLE II
CHANGES TO GENERAL FUND EXPENDITURES AND OTHER USES
TABLE III
CHANGES TO OTHER FUNDS
EXHIBIT A
Current Budget Proposed Changes Revised Budget
73,272, 054
Adopted Budget FY
Approved
General Fund
2015-16
Changes
Expenditures
66,921,296
560,517
Transfer -out
2,560,000
31,250
FY14-15 Rollover
-
115,665
Total Appropriation
69,481,296
707,432
TABLE III
CHANGES TO OTHER FUNDS
EXHIBIT A
Current Budget Proposed Changes Revised Budget
73,272, 054
73, 272, 054
1,095,062
15,748 1,110, 810
74,367,116
15,748 74,382,864
115,665
115,665
74,482,781
15,748 74,498,529
Current Budget Proposed Changes Revised Budget
67,481,813
(380,000) 67,101,813
2,591,250
(100,000) 2,491,250
115,665
115,665
70,188,728
(480,000) 69,708,728
TABLE IV
CITY-WIDE APPROPRIATION SUMMARY
Adopted Budget FY
All Funds 2015-16
[General Fund 69,481,296
Other Funds 46,558,537
iTotal Appropriations 116,039,833
Approved
Changes Current Budget Proposed Changes Revised Budget
707,432 70,188,728 (480,000) 69,708,728
21,521,897 68,080,434 355,232 68,435,666
22,229,329 138,269,162 (124,768) 138,144,394
Adopted Budget FY
Approved
Other Funds
2015-16
Changes
Current Budget
Proposed Changes
Revised Budget
Revenues
38,621,826
4,220,100
42,841,926
587,200
43,429,126
Transfers -in
2,650,000
3,782,899
6,432,899
(115,748)
6,317,151
FYI 5-16 Sources
41,271,826
8,002,999
49,274,825
471,452
49,746,277
FY14-15 Rollover
2,158,321
2,158,321
2,158,321
FY14-15 CIP Carry Over
8,729,884
8,729,884
8,729,884
Total Resources
41,271,826
18,891,204
60,163,030
471,452
60,634,482
Expenditures
45,111,188
20,117,284
65,228,472
339,484
65,567,956
Transfer -out
1,447,349
1,404,613
2,851,962
15,748
2,867,710
Total Appropriation
46,558,537
21,521,897
68,080,434
355,232
68,435,666
TABLE IV
CITY-WIDE APPROPRIATION SUMMARY
Adopted Budget FY
All Funds 2015-16
[General Fund 69,481,296
Other Funds 46,558,537
iTotal Appropriations 116,039,833
Approved
Changes Current Budget Proposed Changes Revised Budget
707,432 70,188,728 (480,000) 69,708,728
21,521,897 68,080,434 355,232 68,435,666
22,229,329 138,269,162 (124,768) 138,144,394
RESOLUTION NO. 14175
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL APPROPRIATING UNAPPROPRIATED
REVENUES FOR FISCAL YEAR 2015-2016
WHEREAS, the City of San Rafael may have unappropriated revenues in its operating
funds as of June 30, 2016; 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
fiscal
year 2015-2016 Budget is amended to appropriate all year-end unappropriated 2015-2016
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 Monday, the 15th day of August, 2016, by the following vote to
wit:
AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough and Mayor Phillips
NOES: Councilmembers: None
ABSENT: Councilmembers: None
A-- ►
ESTHER C. BEIRNE, City Clerk
RESOLUTION NO. 14176
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING FISCAL YEAR 2016-2017 GANN APPROPRIATIONS LIMIT
AT $123,841,017
WHEREAS, California Constitution Article X11113, which was approved as
Proposition 4 by the voters of the State of California on November 6, 1979, imposes on
the state and on each local jurisdiction a limitation on the amount of budget
appropriations they are permitted to make annually (the "Appropriations Limit", sometimes
referred to as the "Gann Appropriations Limit") and limits changes in the Appropriations
Limit to an annual adjustment for the change in the cost of living and the change in
population; and
WHEREAS, California Government Code Section 7910, which implements Article
X11113, 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, as permitted by Proposition 111, adopted by the voters in 1990, the
City has elected to use the percent change in the population of Marin County from
January 1, 2015 to January 1, 2016, and the percent change in California's per capita
personal income, for the calculation of the annual adjustment to the City's Appropriations
Limit; and
WHEREAS, documentation used in the determination of the City's Appropriations
Limit has been available to the public in the Finance Department as provided by
Government Code Section 7910.
NOW, THEREFORE, BE IT RESOLVED that the City Council of San Rafael,
pursuant to the provisions of Article XIIIB and Government Code Sections 7901 and
7910, does hereby establish the Appropriations Limit for fiscal year 2016-2017 for the City
of San Rafael at $123,841,017 as documented in Exhibit A, and further establishes the
2016-2017 Appropriations Subject to the Gann Appropriations Limit at $71,967,785 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
of the City Council of said City held on Monday, the 15th day of August, 2016, by the
following vote to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
4z c .
ESTHER C. BEIRNE, City Clerk
W: Finance- WorkFile\Council Material\Resolutions\2016\City\Gann Approp Limit 16-17Resolution.doc
EXHIBIT A
GANN LIMITATION CALCULATION
Fiscal Year 2016-2017
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
GANN Limit Calculations
\O$2e N,\Nt, O
���^h cod^a
O
1 0 Current Year Limitation 0 Subject to Gann Limit
(A) (B)
Fiscal
Cost of Living Change in Population
Factor
Prior Year
Current Year
Subject to
Year
Changein
Limitation
Limitation
Gann Limit
Assessment
California Roll for Change in
Change in
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
95/96
4.72 0.60
1.22
1.060000
x
$ 24,635,128
= $
26,113,235
96/97
4.67 r 5.50 1.37
1.43
1.070000
x
$ 26,113,235
= $
27,941,557
97/98
4.67 5.40
1.64
1.080000
x
$ 27,941,557
= $
30,176,882
98/99
4.15 6.80
1.42
1.56
1.080000
x
$ 30,176,882
= $
32,591,032
99/00
4.53 6.26
1.47
1.62
1.079800
x
$ 32,591,032
= $
35,192,257
00/01
4.91 9.27
1.50
1.8
1.112600
X
$ 35,192,257
= $
39,154,905
01/02
7.82 6.67 0.53
0.7
1.086000
X
$ 39,154,905
= $
42,522,227
02/03
-1.27 5.15 0.69
1.060000
X
$ 42,522,227
= $
45,073,561
03/04
2.31 2.43 1.45
0.77
1.039152
X
$ 45,073,561
= $
46,838,297
04/05
3.28 2.06 -0.16
2.53
1.058900
X
$ 46,838,297
= $
49,597,072
$ 39,274,542
05/06
5.26 1.59 0.07
0.33
1.056100
X
$ 49,597,072
= $
52,379,468
$ 43,215,534
06/07
3.96 0.57 0.49
0.74
1.047300
X
$ 52,379,468
= $
54,857,017
$ 47,167,477
07/08 a
4.42 2.09 0.97
0.97
1.054300
X
$ 54,857,017
= $
58,867,753
$ 53,279,474
08/09
4.29 2.63 0.68
0.9
1.052600
X
$ 58,867,753
= $
61,964,197
$ 54,394,753
09/10
0.62 0.57
0.81
1.075100
X
$ 61,964,197
= $
66,617,708
$ 51,368,817
10/11
-2.54 3 0.79
0.93
1.409200
X
$ 66,617,708
= $
93,877,675
$ 48,469,424
11/12 b
2.51 -34.13 0.81
0.90
1.034300
X
$ 93,877,675
= $
100,987,679
$ 50,180,413
12/13
3.77 0.12 0.92
1.05
1.048600
X
$ 100,987,679
= $
105,895,680
$ 51,825,702
13/14 c
5.12 2.09 0.34
0.42
1.055600
X
$ 105,895,680
= $
110,641,157
$ 54,313,859
14/15
-0.23 0.85 0.39
0.42
1.012700
X
$ 110,641,157
= $
112,046,300
$ 56,717,201
15/16 d
3.82 7.99 0.60
0.73
1.087800
X
$ 112,046,300
= $
117,140,576
$ 65,177,999
16/17
5.37 0.68 0.12
0.33
1.057200
X
$ 117,140,576
= $
123,841,017
$ 376,513
- = Value selected for Factor calculation
(a) Includes increase for Paramedic Tax Revenue Generated by
Measure P
(b) Includes increase for Paramedic Tax Revenue Generated by
Measure I
(c) Reduce
the limit by $1,142,323 to reflect the amount associated with
Measure P at the time the limit was increased in fiscal year 2011-2012 for
Measure I
(d) 2015-16 The Limit is reduced by $4,743,389 for the Paramedic
Tax -
Measure I for the increase of $3,890,000 added in 2011 - 2012 that
"Sunset"
or Expired after 4 years at the end of 2015.
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
GANN Limit Calculations
\O$2e N,\Nt, O
���^h cod^a
O
1 0 Current Year Limitation 0 Subject to Gann Limit
City of San Rafael
Appropriation Limit Analysis
FY 2016-17
Total Appropriations
General Fund
Abandoned Vehicle Fund
Stormwater Fund
Emergency Medical Services
Library Fund
Library Special Assessment
General Plan Special Revenue
Recreation Revolving
Police Youth Services
Measure A Open Space
Open Space Fund
LongTerm Capital Outlay
(Excess of $100K & 10yr Life)
General Fund Debt Service -
Capital Outlays
Total Appropriations
EXHIBIT B
2016-2017
Appropriations
Subject to
Gann Limit
63,295,581
2,613
0
4,041,709
17,400
921,704
0
1,347,545
16,715
807,005
0
1,141,000
376,513
71,967,785
123,841,017
51,873,232
2016-2017
Less
Less
Adopted
Exempt
Non -Tax
Budget
Expenditures
Revenues
Fund #
001
$ 75,256,406
$ 682,329
$ 11,278,496 $
200
173,801
1,188
170,000
205
734,711
-
782,800
210
7,138,379
125,047
2,971,623
214
25,000
-
7,600
215
935,822
14,118
-
218
168,651
490
429,000
222
4,389,658
40,724
3,001,389
230
93,841
486
76,640
241
814,123
7,118
-
405
-
-
-
N/A
1,141,000
-
-
N/A
451,685
75,172
-
$ 91,323,077
$ 946,672
$ 18,717,548 $
Appropriation
Limit from Revised Growth Limit $
Available Room Under Appropriation
Limit $
EXHIBIT B
2016-2017
Appropriations
Subject to
Gann Limit
63,295,581
2,613
0
4,041,709
17,400
921,704
0
1,347,545
16,715
807,005
0
1,141,000
376,513
71,967,785
123,841,017
51,873,232
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) --> CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 8/15/2016
From: Mark Moses
Department: Finance
Date: 8/4/2016
Topic: CLOSING ADJUSTMENTS TO FISCAL YEAR 2015-2016 BUDGET AND
ADOPTION OF LEGAL APPROPRIATIONS LIMIT FOR FISCAL YEAR
2016-2017
Subject: RESOLUTIONS
1) AMENDING THE BUDGET FOR FISCAL YEAR 2015-2016;
2) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2015-2016; AND
3) APPROVING FISCAL YEAR 2016-2017 GANN APPROPRIATIONS LIMIT
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks:
® City Attorney
Remarks: LG -Approved 8/8/16.
® Author, review and accept City Attorney / Finance changes
Remarks: all changes accepted
M City Manager
Remarks:
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
