No preview available
HomeMy WebLinkAboutFin GANN Appropriations FY2013-14c►rr aF/wr+�!1 "L--* Agenda Item No: 3. a Meeting Date: July 7, 2014 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses Finance Director r City Manager Approval „< SUBJECT: RESOLUTIONS A) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2013-2014; AND B) APPROVING FISCAL YEAR 2014-2015 GANN APPROPRIATION LIMIT RECOMMENDATION: ADOPT RESOLUTIONS APPROPRIATING UNAPPROPRIATED REVENUES AND APPROVING FISCAL YEAR 2014-2015 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 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 111 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 higher. 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. FOR CITY CLERK ONLY File No. � " Council Meeting: Disposition. cr,5' p...� �. .; .i : b "7 .r. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 For fiscal year 2014-2015, the City is using a 0.85 percent increase in the change in assessment roll for nonresidential construction from July 1, 2012 to July 1, 2013 (this figure is provided by the County of Marin's Auditor -Controllers Property Tax Division). 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 0.39 percent for the period January 1, 2013 to January 1, 2014 (provided by the State of California Department of Finance). A Resolution is attached which authorizes the new Appropriation Limit for fiscal year 2014- 2015, which has been calculated to be $112,046,300 (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 2014-2015 appropriations subject to the Gann Limit is $56,717,201 (Exhibit B to resolution). Therefore, the portion of the City's budget appropriation that is restricted by the GANN limit is $55,329,098 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 2013-2014 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 $112,046,300 for fiscal year 2014-2015. To support this calculation, the fiscal year 2013-2014 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 W:AManagement Services- WorkFile\Finance- WorkFileACouncil Material\Stal't Reports\2014\City\Gann Limit 14-15.doc RESOLUTION NO. 13750 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2013-2014 WHEREAS, the City of San Rafael may have unappropriated revenues in its operating funds as of June 30, 2014; 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 2013- 2014 Budget is amended to appropriate all year-end unappropriated 2013-2014 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 7th day of July, 2014, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS Bushey, Connolly, McCullough & Mayor Phillips Colin ESTHER C. BEIRNE, City Clerk W:\Management Services- WorkFile\Finance- WorkFile\Council Mate rial\Resolutions\2014\Appropriating Revenue 13-14.doc RESOLUTION NO. 13751 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2014-2015 GANN APPROPRIATIONS LIMIT AT $112,046,300 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 1, 2013 to January 1, 2014, 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 San Rafael, pursuant to the formula set forth in Senate Bill 1352, does hereby establish the Appropriations Limit for fiscal year 2014-2015 for the City of San Rafael at $112,046,300 as documented in Exhibit A, and further establish the 2014-2015 Appropriations Subject to the Gann Limit at $56,717,201 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 Monday, the 7th day of July, 2014, by the following vote to wit: AYES: COUNCILMEMBERS: Bushey, Connolly, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Colin ESTHER C. BEIRNE, City Clerk W:\Management Services- WorkFile\Finance- Work File\Council Material\Resolutions\2014\City\Gann Approp Limit 14-15Resolution.doc GANN LIMITATION CALCULATION Fiscal Year 2013-2014 (A) (B) Fiscal Cost of Living Change in Population Factor Prior. Year Current Year Current Year Subject to Change in Assessment Year Limitation Limitation Limitation Gann Limit (as calculated) California Roll for Change in Change in Per Capita Nonresidential Population for Population for P sls_o I ne;_lnme Or construction San Rafael Or Marin Coun (Highest B X (Source State) (Source: County) (Source: State) (Source: State) Hi hest A) 94/95 $ 24,635,128 $ 24,635,128 95/96 432 0.60 1,22 1.060000 x $ 24,635,128 = $ 26,113,236 $ 26,113,235 96/97 4.67 51,50" 1.37 1.43 1.070000 x $ 26,113,235 = $ 27,941,162 $ 27,941,557 97/98 4.67 5,40 2.17 1.64 1.080000 x $ 27,941,557 = $ 30,176,455 $ 30,176,882 98/99 4.15 6.80 1.42 1,56 1.080000 x $ 30,176,882 = $ 32,590,672 $ 32,591,032 99100 4.53 6,26." 1.47 1,62 1.079800 x $ 32,591,032 = $ 36,191,299 $ 35,192,257 001011 4.91 9,27 1.50 1,82 1.112600 X $ 35,192,257 = $ 39,154,905 01/02 7.82 6.67 0.53 012 1.086000 x $ 39,154,905 = $ 42,522,227 02/03 -1.27 5.15 0.69 0.81 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 04/05 128 2.06 -016 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 = $ 62,379,468 $ 43,215,534 06107 3.96 0.57 0.49 0.74 1,047300 X $ 52,379,468 = $ 54,857,017 $ 47,167,477 07/08- 4,42 2.09 0.97 0,97 1.054300 X $ 54,857,017 = $ 58,867,753 $ 53,279,474 08109 4,29 2.63 0.68 0.0 1.052600 X $ 58,867,753 = $ 61,964,197 $ 54,394,763 09/10 0.62 6.65 0.57 0,81 1,075100 X $ 61,964.197 = $ 66,617,708 $ 61,368,817 10/11 -2.54 39,62 0.79 0,93 1.409200 X $ 66,617,708 = $ 93,877,675 $ 48,469,424 111112- 1'61: -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 $ 51,825,702 113/114- ;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 1 $ 56,717,201 I I I = 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 oCurrent Year Limitation ®Subject to Gann Lunit '111 N N City of San Rafael Appropriation Limit Analysis FY 2014-15 EXHIBIT B 2014-2015 Fund # 2014-2015 Less Less Appropriations Projected Exempt Non -Tax Subject to Budget Expenditures Revenues Gann Limit Total Appropriations Fund # General Fund 001 $ 64,422,288 $ 537,896 $ 10,121,374 $ 53,763,018 Abandoned Vehicle Fund 200 165,592 1,281 140,000 24,311 Stormwater Fund 205 920,320 - 785,000 135,320 Emergency Medical Services 210 6,596,635 100,178 6,526,377 (29,920) Library Fund 214 210,000 - 27,578 182,422 Library Special Assessment 215 875,648 12,127 863,521 General Plan Special Revenue 218 82,000 - 82,000 Recreation Revolving 222 3,878,269 40,622 2,626,310 1,211,337 Police Youth Services 230 16,000 - - 16,000 Measure A Open Space 241 470,030 4,738 - 465,292 Open Space Fund 405 3,900 - - 3,900 Total Appropriations $ 77,640,682 $ Appropriation Limit 696,842 $ 20,226,639 $ 56,717,201 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. $ 112,046,300 W:\Accounting and Budgeting\Budget\14-15\Gann Limit 14-15\Gann Limit Growth 14-15;Sub to Limit 55,329,098 CITY OF SAN RAFAEL ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRSA / SRCC AGENDA ITEM NO. DATE OF MEETING: July 7, 2014 FROM: Mark Moses DEPARTMENT: Finance DATE: JUlyl, 2014 ,/I- a I TITLE OF DOCUMENT: RESOLUTIONS A) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2013-2014; AND B) APPROVING FISCAL YEAR 2014-2015 GANN APPROPRIATION LIMIT a Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City M6n'ager (signature) xel••-.• W REMARKS: APPROVED AS TO FORM: g City Attorney,(si"""na u