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HomeMy WebLinkAboutFin GANN Appropriation Limit 2010-2011Agenda Item No: 10 carr of .. ,,��.� W,` Meeting Date: July 6, 2010 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE M)� Prepared by: Cindy Mosser Finance Director City Manager Approval: A, _ SUBJECT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal Year 2009-2010; b) Approving Fiscal Year 2010-2011 GANN Appropriation Limit. RECOMMENDATION: Adopt Resolutions appropriating unappropriated Revenues and approving 2010-2011 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 hiaher. File No.: g' Council Meeting:-�6�2ai0 Disposition: RESV1-U4t0AJ5 FOR CITY CLERK ONLY l�-9 9� / 12996 Cities may now choose to use the percentage rate of change in population within the City or county, whichever is hiqher. ANALYSIS: The Appropriation Limit for the current year (FY 2009-2010) is based on the prior year Appropriation Limit adjusted for the change in assessment roll for non residential construction times the change in the population for Marin County. For fiscal year 2010-2011, we are using a 39.62 percent increase in the change in assessment roll for nonresidential construction from 2008 to 2009 (this figure is provided by the County of Marin's Auditor -Controllers Property Tax Division). This large percentage increase is calculated as a percentage of the assessment roll change and includes Northgate Mall and the Corporate Center. For the change in population, we are using 0.93 percent — representing the change in population for Marin County, which is higher than the City's figure of 0.79 percent for the period of January 2009 to January 2010 (provided by the State of California Department of Finance). Based on our calculation, the 2010-2011 Appropriation Limit is $93,877,674 (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 2010-2011 appropriations subject to the Gann Limit is $48,469,424 (Exhibit B). Therefore, the City could appropriate an additional $45,408,250 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 2009-2010 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 $93,877,675 for fiscal year 2010-2011. OPTIONS: The City Council should adopt the report as presented in order to satisfy Article X11113 of the California Constitution and Proposition 4. ACTION REQUIRED: The Council should accept this report and adopt the Resolutions as presented. ATTACHMENTS W:Wlanagement Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2010\City\Gann Limit 10-11.doc RESOLUTION NO. 12995 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROPRIATING UNAPPROPRIATED REVENUES FOR FISCAL YEAR 2009-2010 WHEREAS, the City of San Rafael may have unappropriated revenues in our operating funds as of June 30, 2010; 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 2009- 2010 Budget is amended to appropriate all year-end unappropriated 2009-2010 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 Tuesday, the 6th day of July, 2010, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Brockbank, Connolly, Levine & Mayor Boro None Heller �LS!-�d� G •�d'�u ESTHER C. BEIRNE, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\Appropriating Revenue 09-10.doc RESOLUTION NO. 12996 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2010-2011 GANN APPROPRIATIONS LIMIT AT $93,877,674 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 2009 to January 2010, 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 2010-2011 for the City of San Rafael at $93,877,674, 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 Tuesday, the 6th day of July, 2010, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS Brockbank, Connolly, Levine & Mayor Boro None Heller 1-5SY � ESTHER C. BEIRNE, City Clerk WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\City\Gann Approp Limit 10-11 Resolution.doc RESOLUTION NO. 12996 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL APPROVING FISCAL YEAR 2010-2011 GANN APPROPRIATIONS LIMIT AT $93,877,674 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 2009 to January 2010, 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 2010-2011 for the City of San Rafael at $93,877,674, 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 Tuesday, the 6th day of July, 2010, by the following vote to wit: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS Brockbank, Connolly, Levine & Mayor Boro None Heller ESTHER C. BEIRNE, City Clerk WA (Management Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2010\City\Gann Approp Limit 10-11 Resolution.doc EXHIBIT A GANN LIMITATION CALCULATION Fiscal Year 2010-2011 = Value selected for Factor calculation *Includes increase for Paramedic Tax Revenue Generated by Measure P GANN Limit Calculations $100,000,000 - $90,000,000 - ------ --- ----- $80,000,000 ----- $70,000,000 $60,000,000 $50,000,000 - - - - - $40,000,000 $30,000,000 $20,000,000 - - - $10,000,000 - -- $- 00, "'\°oo°\o, ,\°tio`�°30` 0�,o`'\°�oo`JZ, �\°� o41 Cg,�o�4" O Current Year Limitation 0 Subject to Gann Limit (A) (B) Fiscal Cost of Living Change in Population Factor Current Year Subject to Year Change in 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 Countv (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 $ 26,113,235 96/97 4.67 5.50 1.37 1.43 1.070000 $ 27,941,557 97/98 4.67 5.40 2.17 1.64 1.080000 $ 30,176,882 98/99 4.15 6.80 1.42 1.56 1.080000 $ 32,591,032 99/00 4.53 6.26 1.47 1.62 1.079800 $ 35,192,257 00/01 4.91 9.27 1.50 1.82 1.112600 $ 39,154,905 01/02 7.82 6.67 0.53 0.72 1.086000 $ 42,522,227 02/03 -1.27 5.15 0.69 0.81 1.060000 $ 45,073,561 03/04 2.31 2.43 1.45 0.77 1.039152 $ 46,838,297 04/05 3.28 2.06 -0.16 2.53 1.058900 $ 49,597,072 $ 39,274,542 05/06 5.26 1.59 0.07 0.33 1.056100 $ 52,379,468 $ 43,215,534 06/07 3.96 0.57 0.49 0.74 1.047300 $ 54,857,017 $ 47,167,477 07/08* 4.42 2.09 0.97 0.97 1.054300 $ 58,867,753 $ 53,279,474 08/09 4.29 2.63 0.68 0.93 1.052600 $ 61,964,197 $ 54,394,753 09/10 0.62 6.65 0.57 0.81 1.075100 $ 66,617,708 $ 51,368,817 10/11 -2.54 39.62 0.79 0.93 1.409200 $ 93,877,674 $ 48,469,424 = Value selected for Factor calculation *Includes increase for Paramedic Tax Revenue Generated by Measure P GANN Limit Calculations $100,000,000 - $90,000,000 - ------ --- ----- $80,000,000 ----- $70,000,000 $60,000,000 $50,000,000 - - - - - $40,000,000 $30,000,000 $20,000,000 - - - $10,000,000 - -- $- 00, "'\°oo°\o, ,\°tio`�°30` 0�,o`'\°�oo`JZ, �\°� o41 Cg,�o�4" O Current Year Limitation 0 Subject to Gann Limit O I:II-9t77t] City of San Rafael Appropriation Limit Analysis FY 2010-11 Total Appropriations $ 63,090,494 $ Appropriation Limit 360,869 $ 14,260,201 $ 48,469,424 $ 93,877,674 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. $ 45,408,250 W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\09-1 1 \09-1 1 Twelve Month\Gann Limit Growth 10-11.xls;Sub to Limit 2010-2011 2010-2011 Less Less Appropriations Projected Exempt Non -Tax Subject to Budget Expenditures Revenues Gann Limit Total Appropriations Fund # General Fund 001 $ 51,548,600 $ 287,559 $ 8,788,171 $ 42,472,870 Abandoned Vehicle Fund 200 146,649 1,230 130,800 14,619 Stormwater Fund 205 1,436,300 3,270 811,210 621,820 Emergency Medical Services 210 5,552,800 28,190 2,100,000 3,424,610 Library Fund 214 363,314 10,419 44,400 308,495 Library Special Assessment 215 649,600 - - 649,600 Street Cleaning Fund 220 - - - - Recreation Revolving 222 3,373,371 30,201 2,382,620 960,550 Street Maintenance Fund 225 - - - - Police Youth Services 230 6,900 - 3,000 3,900 Open Space Fund 405 12,960 - - 12,960 Total Appropriations $ 63,090,494 $ Appropriation Limit 360,869 $ 14,260,201 $ 48,469,424 $ 93,877,674 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. $ 45,408,250 W:\Management Services- WorkFile\Finance- WorkFile\Accounting and Budgeting\Budgets\09-1 1 \09-1 1 Twelve Month\Gann Limit Growth 10-11.xls;Sub to Limit 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. 10 FROM DEPARTMENT DATE: Cindy Mosser Finance June 29, 2010 DATE OF MEETING: July 6, 2010 TITLE OF DOCUMENT: Resolutions a) Appropriating Unappropriated Revenues for Fiscal Year 2009- 2010; b) Approving Fiscal Year 2010-2011 GANN Appropriation Limit. Vkala�- Dept ment Head (signature) JUS! 3 0 2010 CIT/ ATTORNEY *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY APPROVED AS TO FORM: AG ND 1TEM: City M'a ager (signature) �j City Attorney (signature) NOT APPROVED REMARKS: