HomeMy WebLinkAboutFin Legal Spending Limit 2017-18f SAN RAFAEL
THE CITY WITH A MISSION
Agenda Item No: 4.c
Meeting Date: June 5, 2017
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Mark Moses, City Manager Approval:
Finance Director
TOPIC: ADOPTION OF LEGAL SPENDING LIMIT FOR FISCAL YEAR 2017-2018
SUBJECT: RESOLUTION APPROVING FISCAL YEAR 2017-2018 GANN
APPROPRIATIONS LIMIT
RECOMMENDATION: ACCEPT REPORT AND ADOPT RESOLUTION AS PRESENTED
BACKGROUND: In November 1979, the voters of the State of California approved Proposition 4,
commonly known as the "Gann Initiative" or "Gann Limit." The Proposition created Article XIIIB of
the State Constitution placing limits on the amount of revenue which can be spent by all entities of
government from the "proceeds of taxes." Proposition 4 became effective for the 1980-81 fiscal year,
but the formula for calculating the limit was based on the 1978-79 "base year" revenues, with
adjustments being made annually to reflect increase in population and cost of living.
Section 7910 of the California Government Code, added in 1980 by the State Legislature,
provides that "each year, the governing body of each local jurisdiction shall, by resolution, establish its
appropriations limit for the following year." In June of 1990, the California Voters approved Proposition
111. Among other things, Proposition 111 provided new adjustment formulas, which make the
Appropriations Limit more responsive to local growth issues. Only tax proceeds are subject to the limit.
Charges for services, regulatory fees, grants, loans, donations and other non -tax proceeds are not subject
to the limit. Proposition 111 also established a requirement for an annual review of Limit calculations.
This report presents the City's Gann Limit on appropriations for fiscal year 2017-2018.
ANALYSIS: The new GANN Limit for each year is based on the prior year's limit, adjusted by factors
that incorporate changes in cost of living and population. For fiscal year 2017-2018, the City is using a
3.69 percent increase in California's per capita personal income from January 1, 2016 to January 1, 2017
(this figure is provided by the California Department of Finance). For the change in population, the City
is using 0.25 percent — representing the change in population for the City of San Rafael, which is higher
than the County's figure of 0.18 percent for the period January 1, 2016 to January 1, 2017 (provided by
the State of California Department of Finance).
FOR CITY CLERK ONLY
File No.: 8-5 x 9-3-20
Council Meeting: 06/05/2017
Disposition: Resolution 14333
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
The attached Resolution establishes the new GANN Limit for Fiscal Year 2017-2018, which has been
calculated to be $128,732,737 (Exhibit A to the Resolution).
The total proposed budgeted appropriations for FY 17-18 are $111,578,822, however only certain funds
are included when calculating the amount of appropriations that `count' toward the limit; such as the
General Fund, Storm Drain Fund, Emergency Medical Services (see Exhibit B for more detail). The
total appropriations for FY 17-18 that `count' toward the GANN limit of $128,732,737, are calculated at
$74,893,075 (see Exhibit B), which is far below the actual limit.
FISCAL IMPACT: There is no fiscal impact associated with fulfilling the legal requirement to set the
City's Appropriations Limit at $128,732,737 for fiscal year 2017-2018. 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.
RECOMMENDATION: Staff recommends that City Council accept the report and adopt the Resolutions
as presented.
ATTACHMENT:
Resolution Approving Fiscal Year 2017-2018 GANN Appropriations Limit with Exhibits A, B
RESOLUTION NO. 14333
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
APPROVING FISCAL YEAR 2017-2018 GANN APPROPRIATIONS LIMIT
AT $128,732,727
WHEREAS, California Constitution Article X11113, which was approved as
Proposition 4 by the voters of the State of California on November 6, 1979, imposes on
the state and on each local jurisdiction a limitation on the amount of budget
appropriations they are permitted to make annually (the "Appropriations Limit", sometimes
referred to as the "Gann Appropriations Limit") and limits changes in the Appropriations
Limit to an annual adjustment for the change in the cost of living and the change in
population; and
WHEREAS, California Government Code Section 7910, which implements Article
X11113, 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, as permitted by Proposition 111, adopted by the voters in 1990, the
City has elected to use the percent change in the population of Marin County from
January 1, 2016 to January 1, 2017, and the percent change in California's per capita
personal income, for the calculation of the annual adjustment to the City's Appropriations
Limit; and
WHEREAS, documentation used in the determination of the City's Appropriations
Limit has been available to the public in the Finance Department as provided by
Government Code Section 7910;
NOW, THEREFORE, BE IT RESOLVED that the City Council of San Rafael,
pursuant to the provisions of Article XIIIB and Government Code Sections 7901 through
7914, does hereby establish the Appropriations Limit for fiscal year 2016-2017 for the City
of San Rafael at $128,732,737 as documented in Exhibit A, and further establishes the
2017-2018 Appropriations Subject to the Gann Appropriations Limit at $74,893,075 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 5th day of June 2017, by the
following vote to wit:
AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
4z 'e . F.A.4 ►e&w
ESTHER C. BEIRNE, City Clerk
W: Finance -Council Material\Resolutions\2017\City\Gann Approp Limit 17-18Resolution.doc
EXHIBIT A
GANN LIMITATION CALCULATION
Fiscal Year 2017-18
(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
I V 1-.U-.
GANN Limit Calculations
$20,000,000
O4\ ��o\ O�\O�0 0��00 O�\O ^O�
®Current Year Limitation ■Subject to Gann Limit
W:\Accounting and Budgeting\Budget\17-18\Gann Limit FY17-18\Gann Limit Calculation 17-18.xlsx - 7/11/16
(A)
(B)
of Living
Change in Population
Factor
Prior Year
Current Year
Subject to
Variance
ErmCost
Change in
_
Limitation
Limitation
Gann Limit
Gann'gap'
Assessment
Califomia
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)
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
1.64
1.080000
x $
27,941,557 = $
30,176,882
98/99
4.15
6.80
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
1 7.82
6.67
0.53
0.72
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
0.77
1.039152
X $
45,073,561 = $
46,838,297
04/05
-3.28
2.06
-0.16
r 2.53
1.058900
X $
46,838,297 = $
49,597,072
$ 39,274,542
$ 10,322,530
05/06
5.26
1.59
0.07
0.33
1.056100
X $
49,597,072 = $
52,379,468
$ 43,215,534
$ 9,163,934
06/07
3.96
0.57
0.49
0.74
1.047300
X $
52,379,468 = $
54,857,017
$ 47,167,477
$ 7,689,540
07/08 a
J6 4.42
2.09
0.97
0.97
1.054300
X $
54,857,017 = $
58,867,753
$ 53,279,474
$ 5,588,279
08/09
IL 4.29
2.63
0.68
0.93
1.052600
X $
58,867,753 = $
61,964,197
$ 54,394,753
$ 7,569,444
09/10
0.62
0.57
0.811.075100
X $
61,964,197 = $
66,617,708
$ 51,368,817
$ 15,248,891
10/11
-2.54
0.79
0.93
1.409200
X $
66,617,708 = $
93,877,675
$ 48,469,424
$ 45,408,251
11/12 to
-34.13
0.81
0.90
1.034300
X $
93,877,675 = $
100,987,679
$ 50,180,413
$ 50,807,266
12/13
0.12
0.92
1.05
1.048600
X $
100,987,679 = $
105,895,680
$ 51,825,702
$ 54,069,978
13/14 c
2.09
0.34
0.42
1.055600
X $
105,895,680 = $
110,641,157
$ 54,313,859
$ 56,327,297
14/15
-0.23
0.39
0.42
1.012700
X $
110,641,157 = $
112,046,300
$ 56,717,201
$ 55,329,098
15/16 d
3.82
0.60
0_.7_3_
1.087800
X $
112,046,300 = $
117,140,576
$ 65,177,999
$ 51,962,576
16/17
0.68
0.12
L
1.057200
X $
117,140,576 = $
123,841,017
$ 71,967,785
$ 51,873,231
17/18
0.11
0.18
1.039500
$
123,841,017 $
128,732,737
$ 74,893,075
$ 53,839,661
- =
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
I V 1-.U-.
GANN Limit Calculations
$20,000,000
O4\ ��o\ O�\O�0 0��00 O�\O ^O�
®Current Year Limitation ■Subject to Gann Limit
W:\Accounting and Budgeting\Budget\17-18\Gann Limit FY17-18\Gann Limit Calculation 17-18.xlsx - 7/11/16
City of San Rafael
Appropriation Limit Analysis
FY 2017-18
Total Appropriations
General Fund
Abandoned Vehicle Fund
Stormwater Fund
Emergency Medical Services
Library Fund
Library Special Assessment
General Plan Special Revenue
Recreation Revolving
Police Youth Services
Measure A Open Space
Open Space Fund
LongTerm Capital Outlay
(Excess of $100K & 10yr Life)
General Fund Debt Service -
Capital Outlays
Total Appropriations
EXHIBIT B
*The total proposed budget is $111,578,822, however not all funds are included in the calculation.
WAAccounting and Budgeting\Budget\17-18\Gann Limit FY17-18\Gann Limit Growth 17-18.xlsx
2017-2018
2017-2018
Less
Less
Appropriations
Adopted
Exempt
Non -Tax
Subject to
Budget
Expenditures
Revenues
Gann Limit
Fund #
001 $
78,337,511
$ 740,422
$ 12,699,271
$ 64,897,818
200
184,482
1,376
170,000
13,106
205
897,447
232
778,800
118,415
210
7,695,597
174,422
3,149,365
4,371,810
214
25,000
-
8,600
16,400
215
1,069,363
14,304
-
1,055,059
218
371,324
539
408,650
0
222
4,800,695
44,162
3,139,859
1,616,674
230
95,143
489
76,500
18,154
241
808,000
4,314
-
803,686
405
5,000
-
-
5,000
N/A
1,500,690
-
-
1,500,690
N/A
551,435
75,172
-
476,263
$
96,341,687
$ 1,055,432
$ 20,431,045
$ 74,893,075
*The total proposed budget is $111,578,822, however not all funds are included in the calculation.
WAAccounting and Budgeting\Budget\17-18\Gann Limit FY17-18\Gann Limit Growth 17-18.xlsx
ROUTING SLIP / APPROVAL FORM
INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval
by the City Council. Save staff report (including this cover sheet) along
with all related attachments in the Team Drive (T:) --> CITY COUNCIL
AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT -
AGENDA TOPIC]
Agenda Item #
Date of Meeting: 6/5/2017
From: Mark Moses
Department: Finance
Date: 5/23/2017
Topic: ADOPTION OF LEGAL SPENDING LIMIT FOR FISCAL YEAR 2017-2018
Subject: RESOLUTION APPROVING FISCAL YEAR 2017-2018 GANN APPROPRIATIONS
LIMIT
Type: ® Resolution ❑ Ordinance
❑ Professional Services Agreement ❑ Other:
APPROVALS
® Finance Director
Remarks: approved
® City Attorney
Remarks: LG -Approved 5/23/17
® Author, review and accept City Attorney / Finance changes
Remarks: Ready for CM approval.
® City Manager
Remarks: