HomeMy WebLinkAboutFin GANN Limitn, ,d5aK 1�
Agenda Item No: 9
Meeting Date: July 6, 2009
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: FINANCE
Prepared by: Ciindy Mosser City Manager Approval:
Finance Director
SUBJECT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal
Year 2008-2009; b) Approving Fiscal Year 2009-2010 GANN Appropriation Limit.
RECOMMENDATION: Adopt Resolutions appropriating unappropriated
Revenues and approving 2009-2010 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 2008-2009) is based on the prior year
Appropriation Limit adjusted for the California per capita personal income growth, times
the change in the population for Marin County.
For fiscal year 2009-2010, we are using a 6.65 percent increase in the change in
assessment roll for nonresidential construction from 2007 to 2008 (this figure is
provided by the County of Marin's Auditor -Controllers Property Tax Division). For the
change in population, we are using 0.81 percent — representing the change in
population for Marin County, which is higher than the City's figure of 0.57 percent for
the period of January 2008 to January 2009 (provided by the State of California
Department of Finance).
Based on our calculation, the 2009-2010 Appropriation Limit is $66,617,708 (Exhibit A).
A Resolution is attached, which authorizes the new Appropriation Limit for next year.
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 2009-2010 appropriations subject to the Gann Limit is
$51,368,817 (Exhibit B). Therefore, the City could appropriate an additional
$15,248,891 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 2008-2009 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 $66,617,708 for fiscal year 2009-2010.
OPTIONS:
The City Council should adopt the report as presented in order to satisfy Article XIIIB of
the California Constitution and Proposition 4.
ACTION REQUIRED:
The Council should accept this report and adopt the Resolutions as presented.
ATTACHMENTS
W:\Management Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2009\City\Gann Limit 09-10.doc
EXHIBIT A
GANN LIMITATION CALCULATION
Fiscal Year 2009-2010
(A) (B)
= =Value selected for Factor calculation
*Includes increase for Paramedic Tax Revenue Generated by Measure P
- �3�-siiln3
� �
Changein
Assessment
lira =7c�
uta€f�in�_
= Eacioc_ =
dal i�`1
=
u"81e"ra=i
$50,000,000
California
Roll for
Change in
Change in
-
Per Capita
Nonresidential
Population for
Population for
$30,000,000
at
Personal Income Or Construction
San Rafael
Or Marin County
(Highest BX
(source: State)
(Source: County)
(Source: State)
(Source: State)
Highest A)
94/95
$
24,635,128
0\p0 -F' O\On N\F' aP 'b\Ob 1,P �\06 ro\01
C 9 O O O O O O O
95/96
0.60
==
1.060000
$
26,113,235
96/97
4.67-_m
r
137
1.070000
$
27,941,557
97/98
4.67
1.080000
$
30,176,882
98/99
4.15
_8d=
1.42
F56
1.080000
$
32,591,032
99/00
4.53
_MORE1.47
m
1.079800
$
35,192,257
00/01
4.91��
.:
1.50
1.112600
$
39,154,905
01/028
-=
6.67
0.53
_m
6
1.086000
$
42,522,227
02/03
-1.27
0.69_-
0 ='
1.060000
$
45,073,561
03/04
2.31
_�
�- 3�
0.77
1.039152
$
46,838,297
04/05
i$-2.06
-0.16
T
1.058900
$
49,597,072
$
39,274,542
05/06
1.59
0.07
IN
1.056100
$
52,379,468
$
43,215,534
06/07�
0.57
0.49
O-
1.047300
$
54,857,017
$
47,167,477
07/08*
2.09
0.97
1.054300
$
58,867,753
$
53,279,474
08/09
2.63
0.68
1.052600
$
61,964,197
$
54,394,753
_-
09/10
0.62
0.57
'=QO,t
1.075100
$
66,617,708
1 $
51,368,817
= =Value selected for Factor calculation
*Includes increase for Paramedic Tax Revenue Generated by Measure P
GANN Limit Calculations
$70,000,000
$60,000,000
$50,000,000
$40,000,000
�xyz vet
-
KM
$30,000,000
at
$20,000,000
$10,000,000
0\p0 -F' O\On N\F' aP 'b\Ob 1,P �\06 ro\01
C 9 O O O O O O O
0Current Year Limitation ®Subject to Gann Limit
City of San Rafael
Appropriation Limit Analysis
FY 2009-10
EXHIBIT B
2009-2010
Fund #
2009-2010
Less
Less
Appropriations
Projected
Exempt
Non -Tax
Subject to
Budget
Expenditures
Revenues
Gann Limit
Total Appropriations
Fund #
General Fund
001 $
56,022,760 $
361,420 $
9,850,613 $
45,810,727
Abandoned Vehicle Fund
200
139,210
1,260
130,800
7,150
Stormwater Fund
205
1,542,030
3,920
811,210
726,900
Emergency Medical Services
210
5,144,320
34,890
1,900,000
3,209,430
Library Fund
214
376,610
13,730
44,400
318,480
Street Cleaning Fund
220
55,920
370
-
55,550
Recreation Revolving
222
3,358,600
32,550
2,102,330
1,223,720
Street Maintenance Fund
225
-
-
-
-
Police Youth Services
230
6,900
3,000
3,900
Open Space Fund
405
12,960
-
12,960
Total Appropriations
$ 66,659,310 $
Appropriation Limit
448,140 $ 14,842,353 $ 51,368,817
Available Room Under Appropriation Limit
Excluded funds include self-supporting funds, capital improvement funds, capital outlay grant funds
and specific exclusions such as the Gas Tax Fund.
$ 66,617,708
$ 15,248,891
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL APPROVING FISCAL YEAR 2009/2010 GANN
APPROPRIATIONS LIMIT AT $66,617,708
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 2008 to January 2009, and the percent change in the
assessment roll for nonresidential construction, 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 2009-2010 for the City of San Rafael at $66,617,708,
as documented in Exhibit A, 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 Monday, the 6th day of July, 2009, by the
following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, City Clerk
W:Wlanagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2009\City\Gann Approp Limit 09-10
Resolution.doc
EXHIBIT
GANN LIMITATION CALCULATION
Fiscal Year 2009-2010
$70,000,000
$60,000,000
$50,000,000
$40,000,000
7
$30,000,000
$20,000,000
$10,000,000
$-
C
1� Q, N 11, 'o
'bf' Cb\F' Z\P N\'�' '5\P 4F' OP
oi Q3 (3 Q, C5 Ci Qi
0 Current Year Limitation E Subject to Gann Limit
(A)
(B)
ls
YCar
''Co t of
in
0hailge, In p0oulatlow
Factor,
",0uinr6nty610r,
Stillblect,"to
Change in
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 BX
(Source: State)
(Source: County)
(Source. State)
(Source: State)
Highest A)
94195
$
24,635,128
95196
0.60
1.22.1.060000
$
26,113,235
96197
467
1.37
1
1.070000
$
27,941,657
97/98
467
64
2 17
1.64
1.080000
$
30,176,882
98199
4156,80
,
1.42
1.080000
$
32,691,032
99100
4.53
1.47
1.079800
$
35,192,257
00101
4.91
1.50
1.112600
$
39,164,905
01/026.67
0.53
1.086000
$
42,522,227
02/03
-1.27
0.69
Q1 = i
1.060000
$
45,073,561
03/04
231
0.77
1.039152
$
46,838,297
04/05
2.06
-0.16
'2-53" ,
1.058900
$
49,597,072
$
39,274,542
05106
52-
,]_ 6
1.59
0.07
1.056100
$
52,379,468
$
43,215,634
06/07
�
= 3 9f =
0.57
0.49
1.047300
$
54,857,017
$
47,167,477
07108'
2.09
0.97
i -a 97 7--
1.054300
$
58,867,763
$
53,279,474
08109
2.63
0.68
0 93
1.052600
$
61,964,197
$
54,394,753
09/10
0.62
8.8tr
0.57
0.61;
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN RAFAEL APPROPRIATING UNAPPROPRIATED
REVENUES FOR FISCAL YEAR 2008-2009
WHEREAS, the City of San Rafael may have unappropriated revenues in our operating
funds as of June 30, 2009; 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 2008-
2009 Budget is amended to appropriate all year-end unappropriated 2008-2009 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 6th day of July, 2009, by the following vote to wit:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ESTHER C. BEIRNE, City Clerk
WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2009\CityWppropriating Revenue 08-09.doc
