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HomeMy WebLinkAboutFin GANN Appropriations FY2012-13Agenda Item No: 3. d Meeting Date: June 17, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses Interim Finance Director 1�' City Manager Approval) € 4 - SUBJECT: RESOLUTIONS A) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2012-2013; AND B) APPROVING FISCAL YEAR 2013-2014 GANN APPROPRIATION LIMIT RECOMMENDATION: ADOPT RESOLUTIONS APPROPRIATING UNAPPROPRIATED REVENUES AND APPROVING FISCAL YEAR 2013-2014 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 X11113 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 at the beginning of each fiscal year. Proposition 111, which was passed on June 5, 1990, made adjustments to the formula used to calculate the appropriations limit. The original formula required spending limits to be tied to the Consumer Price Index or California Per Capita Personal Income growth, whichever was lower. The provisions in Proposition 11 I allow an agency to select the California Per Capita Personal Income or nonresidential property assessed valuation growth, whichever is higher. Cities may also choose to use the percentage rate of change in population within the City or county, whichever is highe . ANALYSIS: The Appropriation Limit for each year is based on the prior year Appropriation Limit, adjusted by factors that incorporate changes in the local cost of living and population. K —g- FOR CITY CLERK ONLY File No.: Council Meeting: if Disposition: Sol, SAN RAFAEL CITY COUNCIL AGENDA REPORT l Page: 2 For fiscal year 2013-2014, the City is using a5.12 percent increase in the change in California Per Capita Personal Income from 2012 to 2013 (provided by the State of California Department of Finance). For the change in population, the City is using 0.42 percent — representing the change in population for Marin County, which is higher than the City's figure of 0.34 percent for the period of January 2012 to January 2013 (provided by the State of California Department of Finance). In addition, a downward adjustment of $1,142,323 was made to reflect the amount associated with Measure P at the time the limit was increased in fiscal year 2011-2012 for Measure 1. A Resolution is attached which authorizes the new Appropriation Limit for fiscal year 2013- 2014, which has been calculated to be $110,641,157 (Exhibit A to 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 2013-2014 appropriations subject to the Gann Limit is $54,313,859 (Exhibit B to resolution). Therefore, the portion of the City's budget appropriation that is restricted by the GANN limit is $56,327,298 under the legal limit. Also, as part of this action, the City must adopt a Resolution under Proposition 4, to roll over excess revenues in fiscal year 2012-2013 to be included in the Gann limit calculation. A separate Resolution has been prepared for this action. FISCAL IMPACT: By approving the Resolutions, the City's Appropriation Limit for fiscal year is increased to $110,641,157 for fiscal year 2013-2014. To support this calculation, the fiscal year 2012-2013 budget is amended to appropriate revenues that had not been appropriated by fiscal year-end. OPTIONS: In adopting this report as presented, the City Council satisfies the requirements of Article XIIIB of the California Constitution and Proposition 4. RECOMMENDATION: Accept this report and adopt the Resolutions as presented. ATTACHMENTS yti:^._Management Services- W'orkFile;Finance- WorkFile Council Materia]\Staff Reports?013\City.Gann Limit 13-14.doc RESOLUTION NO. 13551 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2012-2013 WHEREAS, the City of San Rafael may have unappropriated revenues in its operating funds as of June 30, 2013; 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 2012- 2013 Budget is amended to appropriate all year-end unappropriated 2012-2013 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. 1, 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 17th day of June, 2013, by the following vote to wit: AYES: COUNCILMEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips ABSENT: COUNCILMEMBERS: None - laa-te"e ESTHER C. BEIRNE, City Clerk RESOLUTION NO. 13552 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2013-2014 GANN APPROPRIATIONS LIMIT AT $110,641,157 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 Marin County from January 2012 to January 2013, 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 City of San Rafael, pursuant to the formula set forth in Senate Bill 1352, does hereby establish the Appropriations Limit for fiscal year 2013-2014 for the City of San Rafael at $110,641,157, as documented in Exhibit A, and further establish the 2013-2014 Appropriations Subject to the Gann Limit at $54,313,859 as documented in Exhibit B, which Exhibits are attached hereto and incorporated herein by reference as though fully set forth. 1, 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 17th day of June, 2013, by the following vote to wit: AYES: COUNCILMEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Mate ria I\Resolutions\201 3\C ity\Ga n n Approp Limit 13-14Resolution.doc GANN LIMITATION CALCULATION Fiscal Year 2013-2014 (A) (B) Change in $ 26,113,235 Assessment $ 27,941,557 California Roll for Change in Change in 95!96 Per Capita Nonresidential Population for Population for 0.60 Personal Income Or Construction San Rafael Or Marin Court (Highest 8 X Source- State) (Source- County) (Source. State) (Source- State) Highest A) 94/95 $ 26,113,235 $ 27,941,557 $ 30,176,882 95!96 $ 35,192,257 0.60 1 I 1.060000 x $ 24,635,128 = 96/97 _ 4.67,.: $ 46,838,297 1.37°. ,.. �,?,-' 1.070000 x $ 26,113,235 = 97198 4.67 $ 58,867,753 $ 53,279,474 1.64 1.080000 x $ 27,941,557 98/99 4.15+, $ 100,987,679 1.42 '�: ,; 1.080000 x $ 30,176,882 = 99100 4.53 1.47 1.079800 x $ 32,591,032 = 00101 491 :.�,, 1.50 1.112600 X $ 35,192,257 = 01/02'" 667 0.53 r 1086000 X $ 39,154,905 = 02/03 -1.27�� 0.69 1.060000 X $ 42,522,227 = 03/04 2.31 G,z �` ".-' 0.77 1.039152 X $ 45,073,561 = 04105 ` <<' 2.06 0.16`; ; 1.058900 X $ 46, 838,297 = 05106 1.59 0.07;# 1.056100 X $ 49,597,072 = 06/07 0.57 0.49`i4 '. 1.047300 X $ 52,379,468 = 07/08*? 2.09 0.97 7 �'� 1.054300 X $ 54,857,017 = 08!09 z ':."- 2.63 0.681.052600 X $ 58,867,753 = 09/10 0.62_- 0.57 1.075100 X $ 61,964,197 = 10/11 -2.54':;,',' 0.79 0 ',= 1.409200 X $ 66,617,708 = 11/12*' 1 -34.13 0.81 �. 1.034300 X $ 93,877,675 = 12/13{ ,�.;' « 0.12 0.92 #�„"u:��: 1,048600 X $ 100,987,679 13/14 209 0.34 �s,`=; 1.055600 X $ 105,895,680 = Value selected for Factor calculation 'Includes Increase for Paramedic Tax Revenue Generated by Measure P "Includes increase for Paramedic Tax Revenue Generated by Measure I "' 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 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 GANN Limit Calculations EXHIBIT A $ 24,635,128 $ 26,113,235 $ 27,941,557 $ 30,176,882 $ 32,591,032 $ 35,192,257 $ 39,154,905 $ 42,522,227 $ 45,073,561 $ 46,838,297 $ 49,597,072 $ 39,274,542 $ 52,379,468 $ 43,215,534 $ 54,857,017 $ 47,167,477 $ 58,867,753 $ 53,279,474 $ 61,964,197 $ 54,394,753 $ 66,617,708 $ 51,368,817 $ 93,877,675 $ 48,469,424 $ 100,987,679 $ 50,180,413 $ 105,895,680 $ 51,825,702 $ 110,641,157 $ 54,313,859 gotQQ QQlQn O�Q2 flry°� Q3fl fl�`Qh Q0Q0 ©01 Q'1 Q,`fl4i 00Qfl Qg1^Q '\a, ^���`L• ,rt�`,� ,�'`R** n ❑Current Year Limitation a5ubject to Gann Limit City of San Rafael Appropriation Limit Analysis FY 2013-14 EXHIBIT B 2013-2014 Fund # 2013-2014 Less Less Appropriations Projected Exempt Non -Tax Subject to Budget Expenditures Revenues Gann Limit Total Appropriations Fund # General Fund 001 $ 59,526,424 $ 367,492 $ 10,450,269 $ 48,708,663 Abandoned Vehicle Fund 200 160,467 1,267 130,100 29,100 Stormwater Fund 205 886,293 - 800,200 86,093 Emergency Medical Services 210 5,867,535 45,300 2,425,000 3,397,235 Library Fund 214 70,640 - 6,550 64,090 Library Special Assessment 215 811,180 7,064 804,116 Street Cleaning Fund 220 - - - Recreation Revolving 222 3,797,367 33,645 2,558,060 1,205,662 Street Maintenance Fund 225 - - - - Police Youth Services 230 16,000 - 1,000 15,000 Open Space Fund 405 3,900 - - 3,900 Total Appropriations $ 71,139,806 $ Appropriation Limit 454,768 $ 16,371,179 $ 54,313,859 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. $ 110,641,157 $ 56,327,298 W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\13-14\Gann Limit 13- 14\Gann Limit Growth 13-14;Sub to Limit CITY OF SAN RAFAEL , INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OFA CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. 3`d DATE OF MEETING: June 17, 2013 FROM: Mark Moses DEPARTMENT: Finance DATE: June 11, 2013 TITLE OF DOCUMENT: RESOLUTIONS A) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2012-2013; AND B) APPROVING FISCAL YEAR 2013-2014 GANN APPROPRIATION LIMIT Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) REMARKS: APPROVED AS TO FORM: d ��' J, g ek�- City Attorney (signatur