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FIN CMD vflf \flnance\admln\stfrpts\srgannap 98 ~HM 2 It 1997
Council Meetmg June 24, 1997 Santa MOnica, Cahfo 18
TO MAYOR AND CITY COUNCIL
FROM City Staff
SUBJECT RecommendatIon to Approve ResolutIons Establlshmg the CIty's Gann
Appropnatlons Limit for FY 1997-98 and Appropnatlng FY 1996-97
Funds to Gann'ed Reserve and/or Designated Balance Sheet Accounts
Introduction
This report recommends approval of resolutIons establlshmg the CIty'S Gann
AppropriatIons LImIt for FY 1997-98 at $105,099,475 and appropriating avaIlable FY
1996-97 funds to Gann'ed reserve andlor desIgnated balance sheet accounts
Gann Aooroonatlons limit for FY 1997-98
On June 24, 1997, the City CounCIl will be consldermg the proposed City FY 1997-98
budget for adoption In order to meet legal reqUirements, the City CounCil must also
formally adopt the City'S Gann Appropnatlons Limit for FY 1997-98
Based upon Article XIIIB Appropriations Limit Uniform GUidelines published by the
League of CallfornJa CItIes In March 1991, the CIty's Gann AppropriatIons Limit of
$105,099,475 for FY 1997-98 has been computed and made available to the public
fIfteen days pnor to thIs meetIng The FY 1997-98 limIt has been computed based on
the followmg allowable Increase factors the annual percentage change in the State Per
Capita Personal Income times the annual percentage population change for the County
of Los Angeles Both factors were provided by the State Department of Finance Staff
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JUN 2 ~ 1997
recommends that the Council approve the FY 1997-98 limit based on these factors
The calculation of the City'S FY 1997-98 limit uSing these factors IS detailed at
Attachment A An appropnate resolution to establish the CIty's FY 1997-98 Gann
Appropnatlons Limit at $105,099,4 75 IS at Attachment B
Comoanson of the FY 1997-98 Gann Limit to the Proposed FY 1997-98 Appropnatlons
and Tax Proceeds Sublect to LimItation
A companson of the City'S FY 1997-98 Gann Appropnatlons Limit and FY 1997-98
approprratlons and tax proceeds subject to limitation as set forth In the City's Proposed
FY 1997-98 Budget (Including recommended final changes) IS as follows
Prooosed Gann-related Soendlno for FY 1997-98
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TORCA
On-Gomg Overnde Overnde
Component + Component* + Comconent = Total
Gann LimIt $65.285,223 $28,196,853 $11,617,399** $105,099.475
Appropriations
Subject to
Llmltatlon*** 55.287.123 28.196.853 9.040.895**** 92.524.871
Net Under/(Over) $ 9.998.100 $ 0 $ 2,576.504 $ 12.574.604
* For Police, Schools, BaSIC City Services and Other SpecIfied Purposes per City
Charter
** Limit reflects estimated FY 1997/98 TORCA Tax proceeds and share of Interest
earnIngs, and estimated unexpended tax proceeds as of 6J30/97
*** I n terms of receipt of tax proceeds, the City IS $1,402,176 under Its Gann Limit
**** Consists of FY 1996-97 appropriations subject to limItation reappropriated to FY
1997 -98 plus new FY 1997-98 appropriations subject to limItation
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The above table indicates that In all components of the City'S total Gann Appropriations
Limit, FY 1997-98 appropnatlons subject to limitation are equal to or less than the
applicable limit component
Approonatlon of Available FY 1996-97 Funds to Gann'ed Reserve and/or Desl(~mated
Balance Sheet Accounts
Under the provIsions of Article XIIIB of the State ConstitutIon, a city IS authorized to
appropnate to reserve and/or designated balance sheet accounts the difference
between actual spending (I e expendItures and encumbrances) subject to the Gann
Appropnatlons Limit and the City's Gann Appropriations Limit for that fiscal year ThiS
action can be accomplished by the City CounCil passing a resolution to thiS effect For
FY 1996-97, an appropriate resolution to accomplish thiS transaction has been
prepared and IS at Attachment C
By takIng thiS action, the City CounCil, In effect, subjects to the FY 1996-97 Gann
Appropriations Limit the funds so appropriated to Gann'ed reserve and/or deSignated
balance sheet accounts Thus, the "Gann'ed" monies become available to finance
carryover capital projects or for appropriation dUring FY 1997-98 and/or subsequent
fiscal years free of FY 1997-98 and/or subsequent fiscal years' Gann limitations
As the follOWing table Indicates, CounCil adoption of the resolution at Attachment C
means that up to $18,242,342 of "un-Gann'ed" funds which may be available at the end
of the current fIscal year can be "Gann'ed"
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Estimated Actual Gann-related Spendmg for FY 1996-97
TORCA
On-Going Override Override
Component + Comoonent*** + Component = Total
Gann Llmlt* $61,608,485 $26,608,861 $12,029,540 $100,246,886
Estimated Actual
Spendmg Subject to
Limitation*"" 55.178.283 26.608.861 217.400 82.004.544
Net Under/(Over) $ 6,430.202 $ 0 $11.812.140 $ 18.242.342
* As adopted by the City Council on June 25, 1996
** In terms of receipt of tax proceeds, the City IS $165,502 under ItS Gann Limit
*** For Police, Schools, BasIc City Services and Other Specified Purposes per City
Charter
When the City'S FY 1996-97 Comprehensive Annual Financial Report IS submitted to
the Council this Fall, the Finance Director Will report to the Council actual total FY 1996-
97 spendmg and the actual amount which the Council has appropriated to "Gann'ed"
reserve and/or designated balance sheet accounts
Budget/FinancIal Impact
Adoption of the attached resolution establIshing the CIty'S FY 1997-98 Gann
Appropriations Limit does not have a budget/financial Impact Adoption of the attached
resolution approprlatmg available FY 1996-97 funds to "Gann'ed" reserve and/or
designated balance sheet accounts Will enable the City to continue to finance carryover
capItal projects and Increase the City'S ability to respond to future service needs
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Recommendation
It IS recommended that the attached resolutions which establish the City's Gann
Appropriations Limit for FY 1997-98 at $105,099,475 based on the allowable Increase
factors of the annual percentage change In the State Per Capita Personal Income and
the annual percentage population change of the County of Los Angeles, and which
appropnate up to $18,242,342 of available FY 1996-97 funds to Gann'ed reserve
and/or designated balance sheet accounts be approved
Attachments
Prepared by Mike Denms, Director of Finance
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ATTACHMENT A
CITY OF SANTA MONICA CALCULATION OF FY 1997~98
GANN APPROPRIATIONS LIMIT
FY 1996-97 GANN APPROPRIATIONS LIMIT
Ongoing Component (ExclusIve of TORCA
Override Component) $61,608,485Ia,
Polrce, Schools, BasIc City Services and
Other Specified Purposes Expenditure Overrlde(b' 26.608.86t
Subtotal $88,217,346
ADJUSTMENT FACTORS
Allowable FY 1997-98 Adjustment.
California Per Capita
Personal Income ChangelCl 1.0467 times
County Pop. Chg (c) 1 ,01 24 ::; x 1,05967908
Subtotal $93,482,076
Plus FY 1997-98 TORCA Overrrde Component
(Per Section 2015C of City Charter1dl) $11.617.399
FY 1997-98 TOTAL GANN APPROPRIATIONS LIMIT $ 105.099.47fi
(a) As adopted by City Council on June 25t 1996
(b) Override approved by City voters March 26, 1996, exclUSive of TORCA component,
Increased by allowable FY 1996-97 adjustment factors.
(c) Per State Department of fmance, May 1, 1997. State law permIts a City to use the
annual City population change or the annual population change of the county In which the
City IS located
~d) Approved by City voters March 26, 1996; FY 1996-97 amount reflects:
a) estimated FY 1997-98 TORCA tax proceeds and share of Interest earnings, and b)
estimated unexpended tax proceeds as of 6/30/97.
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A TT ACHMENT 8
FIN CMD sd/srgannap
Council Meeting June 24, 1997 Santa Monica, California
RESOLUTION NO. 9153
(City Council Series)
A RESOLUTION OF THE CITY COUNCil OF THE CITY OF
SA NT A MONICA ESTABLISHING THE
GANN APPROPRIA lIONS LIMIT FOR THE
FISCAL YEAR 1997-98
WHEREAS, the City Council IS required under the provIsions of Government Code
Section 7910 and ArtIcle XIlIS of the Calrfornla Constitution to establish Its
appropnatlons limIt by resolution, and
WHEREAS, documentation used In the determmatlon of the appropriatIons limit
nas been avaIlable to the publIc for fifteen days pnor to thIs meeting as reqUIred by
Government Code SectIon 7910
NOW. THEREFORE, THE CITY COUNCil OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOllOWS,
SECTION 1 For purposes of Article XIIIB of the California Constitution, the City
of Santa Monica appropnatlons limit for the fiscal year 1997-98 shall be $105,099,475
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SECTION 2 The CIty Clerk shall certify to the adoption of tl)e Resolution, and
thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM
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MARSHA JONES MOUTRIE
CIty Attorney
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Adopted and approved thls 24th of June 1997
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P O'Connor. Mayor
1. Mana M Ste\vart. CIty Clerk of the CIty of Santa MOllica. do hereby certd'y that the
foregomg ResolutIOn 9153(CCS) was duly adopted at a meetmg ofthe CIty CGlIDed held on the
24th of June. 1997 by the followmg vote
Ayes Councl1members Ebner. Femstem. Genser. Greenberg, Iv1 ay or Pro Tern
Holbrook. ~1ayor O'Connor. Rosenstem
:'-Joes Councllrnembers Kane
Abstam Councllmembers None
Absent Councllmembers ;\one
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Mana M Stewart. Cny Gerk
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ATTACHMENT C
FIN CMD sdfsrgannap
Council Meetmg June 24, 1997 Santa MOnica, California
RESOLUTION NO. 9154
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROPRIATING FISCAL YEAR 1996-97
FUNDS TO GANN'ED RESERVE AND/OR DESIGNATED
BALANCE SHEET ACCOUNTS
WHEREAS, under the provIsIons of Article XIIIS of the CalifornIa
Constitution. a city IS authorized to appropriate to a Gann'ed reserve and/or designated
balance sheet accounts the difference between actual spending subject to the Gann
Appropnatlons LImIt and the CIty'S Gann Appropnatlons LimIt for that fiscal year, and
WHEREAS, appropnatmg available funds to Gann'ed reserve and/or
designated balance sheet accounts IS In the public Interest because establrshment of
Gann'ed reserve and/or deSignated balance sheet accounts Increases the ability of the
CIty CouncIl to respond to the servIce needs of the cItizens of the CIty of Santa MOnica
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS
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SECTION 1 All Fiscal Year 1996-97 General Fund, Parks and RecreatIon
Fund, and TORCA Fund appropriations, exclusive of Federal or State grant
appropnatlons, shall be adjusted to actuals as determIned by the City'S annual financIal
audit as set forth In the CIty'S fIscal Year 1996-97 Comprehensive Annual FinancIal
Report, and the difference between the lesser of $18,242.342 or actual expenditures
and encumbrances subject to limitation as determIned by the CIty'S annual financial
audIt as set forth In the City's Fiscal Year 1996-97 Comprehensive Annual Financial
Report for these Funds and the CIty'S FIscal Year 1996-97 Gann Appropnatlons LImIt,
to the extent funds are available, IS hereby appropnated to reserve and/or designated
balance sheet accounts In these respective Funds.
SECTION 2 The CIty Clerk shall certIfy to the adoption of this Resolution,
and thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM
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MARSHA JOf-JES MOUTRIE
CIty Attorney
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Adopted and approved thIS 24th of June 1997
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L ~1ana M Stewart, CIty Clerk of the Cny of Santa ~1omca. do hereby certIfy that the
foregomg ResolutIOn 9154(CCS) was duly adopted at a meetmg of the CIty Council held on the
24th of June. 1997 by the follovv'lng vote
Ayes Councilrnernbers Ebner. Femstem. Genser, Greenberg. Mayor Pro Tern
Holbrook. Mayor O'Connor. Rosenstem
Noes CouncIlrnernbers None
.-\bstam CouncIlrnem bers );one
Absent CouncIlmembers "\""one
ATTEST
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Mana M Stewart. CIty Cl2rk