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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:
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City Attorney,(si"""na u