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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
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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: