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Home My WebLink AboutFin Financial Reports FY2015-16CITY OF n.-- "54W 1� 0, "t , Agenda Item No: 3, d Meeting Date: June 1, 2015 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE Prepared by: Mark Moses Finance Director City Manager Approval SUBJECT: RESOLUTIONS 1) AMENDING THE BUDGET FOR FISCAL YEAR 2014-2015; 2) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2014-2015; AND 3) APPROVING FISCAL YEAR 2015-2016 GANN APPROPRIATIONS LIMIT RECOMMENDATION: ADOPT RESOLUTIONS BACKGROUND: Since the adoption of the City-wide budget on May 18, 2015, the review of fiscal year 2014-2015 appropriation needs has been completed, as well as the calculation of the GANN Appropriations Limit for fiscal year 2015-2016. A resolution amending the fiscal year 2014-2015 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 2014-2015, 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. 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 Limit 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, 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). File No.: 5l'® 'g Council Meeting: FOR CITY CLERK ONLY Disposition: eL-uT(O _) S- L19 t S9Z61 t39Z;f 1 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: Amendments to fiscal year 2014-2015 budget There are two budget amendments recommended: (1) Increase projected revenues in the Recreation Fund by $259,520, for a total of $2,969,193, and expenditures by $260,344 for a total of $4,148,643. These adjustments are prompted by increased demand for youth enrichment, camp and athletic programs. Youth enrichment, camps and Falkirk Rentals have exceeded the original revenue projections for fiscal year 2014-2015. This request includes adjustment for those accounts to accurately reflect increased revenue. (2) Increase appropriations in the Open Space Acquisition fund by $1,000 for a total of $5,000, to cover property taxes assessed on City -owned property outside the City's jurisdiction. No other formal changes are recommended, however in order to facilitate the year-end close, the City Manager may make adjustments within fund categories (e.g., special revenue, capital, internal service, etc.) within the limits of the Council -approved appropriation authority. Such changes will be reported to the City Council. The impact of these recommended changes on City-wide appropriations is presented in the following table (Exhibit A to Resolution Amending City-wide Budget): All Funds Adopted Budget FY14-15 Approved Changes Current Budget Proposed Changes Revised Annual Appropriations General Fund 64,422,287 479,625 64,901,912 64,901,912 Other Funds 40,994,596 16,923,625 57,918,221 261,344 58,179,565 Less interfund (13,978,052) (1,714,160) (15,692,212) (15,692,212) Net Expenditures I $91,438,831 $15,589,090 $107,1279921 $261,344 $107,389,265 GANN (Appropriations) Limit 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 fiscal year 2015-2016, the City is using a 7.99 percent increase in the change in assessment roll for nonresidential construction from July 1, 2013 to July 1, 2014 (this figure is provided by the County of Marin's Auditor -Controllers Property Tax Division). For the change in population, the City is using 0.73 percent — representing the change in population for Marin County, which is higher than the City's figure of 0.60 percent for the period January 1, 2014 to January 1, 2015 (provided by the State of California Department of Finance). A further adjustment to the Appropriations Limit was required, due to the expiration of the ability to include Measure I (Paramedic Tax) in the calculation. A Resolution is attached which authorizes the new Appropriation Limit for fiscal year 2015- 2016, which has been calculated to be $117,140,576 (Exhibit A to 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 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Year 2015-2016 appropriations subject to the Gann Limit is $65,177,999 (Exhibit B to GANN Resolution). Therefore, the portion of the City's budget appropriation that is restricted by the GANN limit is $51,962,576 under the legal limit. Also, as part of this action, the City must adopt a Resolution under Proposition 4, to roll over previously unappropriated revenues in fiscal year 2014-2015 to be included in the Gann limit calculation. A separate Resolution has been prepared for this action. 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 $117,140,576 for fiscal year 2015-2016. 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 and Proposition 4. RECOMMENDATION: Accept this report and adopt the Resolutions as presented. ATTACHMENTS Resolution Amending the Budget for Fiscal Year 2014-2015 with Exhibit A Resolution Appropriating Unappropriated Revenues for Fiscal Year 2014-2015 Resolution Approving Fiscal Year 2015-2016 GANN Appropriations Limit with Exhibits A, B WA\Council Material\StaffReports\20I5\City\Gann Limit I5-16.doc RESOLUTION NO. 13935 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING AMENDMENTS TO THE CITY-WIDE BUDGET FOR FISCAL YEAR 2014-2015 WHEREAS, the City Council approved Resolution 13748 adopting the fiscal year 2014- 2015 budget, and approved Resolutions 13845 and 13905 and took 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 2014-2015, based on the identification of two 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 13748 for fiscal year 2014-2015 is further amended to authorize an increase in total general fund revenues and other financing sources to $68,827,320, with transfers in unchanged at $1,290,207; an increase in general fund expenditure authorization to $63,204,248 and increased transfers out to $1,697,664. Further, the Resolution is amended for other fund revenues to $38,903,037 and transfers in to $3,308,999, expenditures to $55,278,023 and transfers out to $2,901,542. These changes as presented on Exhibit A result in net City-wide appropriations of $107,389,265. 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 fiend 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 special meeting of the Council of said City on Monday, the lst of June 2015, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ESTHER C. BEIRNE, City Clerk W:A\Council Material\Resolutions\2015\City\FinalAmend City budget 14-15.doc EXHIBIT A General Fund Adopted Budget FY2014-15 Approved Changes Proposed Current Budget Changes Revised Annual Appropriations Revised Annual Appropriations General Fund 64,422,287 479,625 64,901,912 Revenues 67,874,773 952,547 68,827,320 68,827,320 Transfers in 1,290,207 38,903,037 1,290,207 1,290,207 Total Resources 69,164,980 952,547 70,117,527 - 70,117,527 38,431,443 3,521,073 41,952,516 259,520 42,212,036 Expenditures 62,772,287 156,666 62,928,953 62,928,953 Measure E Expenditures 275,295 275,295 275,295 Transfer out 1,650,000 47,664 1,697,664 1,697,664 Total Appropriation 64,422,287 479,625 64,901,912 - 64,901,912 16,923,625 57,918,221 261,344 58,179,565 Net Results $ 4,742,693 $ 472,922 $ 5,215,615 $ - $ 5,215,615 Other Funds Adopted Budget FY2014-15 Approved Changes Current Budget Proposed Changes Revised Annual Appropriations General Fund 64,422,287 479,625 64,901,912 - 64,901,912 Revenues 36,711,443 1,932,074 38,643,517 259,520 38,903,037 Transfers in 1,720,000 1,588,999 3,308,999 - 3,308,999 Total Resources 38,431,443 3,521,073 41,952,516 259,520 42,212,036 Net Expenditures $ 91,438,831 $ 15,689,090 $ 107,127,921 $ 261,344 $ 107,389,265 Expenditures 39,634,389 15,382,290 55,016,679 261,344 55,278,023 Transfer out 1,360,207 1,541,335 2,901,542 - 2,901,542 Total Appropriation 40,994,596 16,923,625 57,918,221 261,344 58,179,565 Net Results $ (2,563,153) $ (13,402,552) $ (15,965,705) $ (1,824) $ (15,967,529) All Funds Adopted Budget FY2014-15 Approved Changes Current Budget Proposed Changes Revised Annual Appropriations General Fund 64,422,287 479,625 64,901,912 - 64,901,912 Other Funds 40,994,596 16,923,625 57,918,221 261,344 58,179,565 Less interfund (13,978,052) (1,714,160) (15,692,212) - (15,692,212) Net Expenditures $ 91,438,831 $ 15,689,090 $ 107,127,921 $ 261,344 $ 107,389,265 RESOLUTION NO. 13936 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2014-2015 WHEREAS, the City of San Rafael may have unappropriated revenues in its operating funds as of June 30, 2015; 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 2014- 2015 Budget is amended to appropriate all year-end unappropriated 2014-2015 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 1 st day of June, 2015, by the following vote to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None / � w ESTHER C. BEIRNE, City Clerk WAWorkFile\Council Material\Resolutions\2015Wppropriating Revenue 14-15.doc RESOLUTION NO. 13937 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2015-2016 GANN APPROPRIATIONS LIMIT AT $117,140,576 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, 2014 to January 1, 2015, 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 2015-2016 for the City of San Rafael at $117,140,576 as documented in Exhibit A, and further establishes the 2015-2016 Appropriations Subject to the Gann Limit at $65,177,999 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 1st day of June, 2015, by the following vote to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None st�JJa- c . ESTHER C. BEIRNE, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2014\City\Gann Approp Limit 15-16Resolution.doc EXHIBIT A GANN LIMITATION CALCULATION Fiscal Year 2015-2016 (A) (B) Flecai 'Cost of Living Change in Population Factor - ;Prior Year:. Current Year 'Subject to Change In Assessment Year Limitation Limitation ' Gann Limit California Roll for Change in Change in Per Capita Nonresidential Population for Population for Personal Income Or Construction San Rafael Or Marin Count v (Highest B X (Soun:e: State) (Sourco: 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 5.50 1.37 1.43 1.070000 x $ 26,113,235 = $ 27,941,557 97/98 4.67 5.40 2.17 1.64 1.080000 x $ 27,941,557 = $ 30,176,882 98199 4.15 6.801 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 1.82 1.112600 X $ 35,192,257 = $ 39,154,905 01/02 7.82 6.67 0.53 0.72 1.086000 X $ 39,154,905 = $ 42,522,227 02/03 -1.27 5.151 0.69 0.81 1.060000 X $ 42,522,227 = $ 45,073,561 03104 2.31 2.43 1.45 0.77 1.039152 X $ 45,073,561 = $ 46,838,297 04105 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 0.93 1.052600 X $ 58,867,753 = $ 61,964,197 $ 54,394,753 09/10 0.62 6.65 0.57 0.81 1.075100 X $ 61,964,197 = $ 66,617,708 $ 51,368,817 10/11 -2.54 39.62 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 14115 -0.23 0.85. 0.39 0.42 1.012700 X $ 110,641,157 = $ 112,046,300 $ 56,717,201 15116 d 3.82 7.991 0.60 0.73 1.087800 X $ 112,046,300 = $ 117,140,576 $ 65,177,999 = 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 °a oh 161�1 ��o o� o° ,�o �? b a y�� Q, N 1 ❑ Current Year Limitation 0 Subject to Gann Limit City of San Rafael Appropriation Limit Analysis FY 2015-16 Total Appropriations Fund # General Fund 001 $ Abandoned Vehicle Fund 200 Stormwater Fund 205 Emergency Medical Services 210 Library Fund 214 Library Special Assessment 215 General Plan Special Revenue 218 Recreation Revolving 222 Police Youth Services 230 Measure A Open Space 241 Open Space Fund 405 EXHIBIT B 2015-2016 2015-20165 Less Less Appropriations Projected Exempt Non -Tax Subject to Budget Expenditures Revenues Gann Limit 69,481,296 $ 639,958 $ 10,821,820 $ 58,019,518 169,661 1,188 160,000 8,473 1,504,563 - 785,500 719,063 6,718,527 143,293 2,800,317 3,774,917 130,000 - 1,100 128,900 866,630 12,144 - 854,486 190,566 2,445 291,100 (102,979) 4,106,191 41,832 2,850,312 1,214,047 92,174 560 75,000 16,614 546,530 6,570 - 539,960 5,000 - - 5,000 Total Appropriations $ 83,811,138 $ 847,990 $ 17,785,149 1 $ Appropriation Limit from Revised Growth Limit $ 65,177,999 117,140,576 Available Room Under Appropriation Limit 1 $ 51,962,576 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. SRRA / SRCC AGENDA ITEM NO. DATE OF MEETING: June 1, 2015 FROM: Mark Moses DEPARTMENT: Finance DATE: May 22, 2015 TITLE OF DOCUMENT: RESOLUTIONS 1) AMENDING THE BUDGET FOR FISCAL YEAR 2014-2015; 2) APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2014-2015; AND 3) APPROVING FISCAL YEAR 2015-2016 GANN APPROPRIATIONS LIMIT r Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AGENDA ITEM: City anager (signature) City Attorney (signatu e) NOT APPROVED REMARKS: