SR-6-O (39)
.,
"- 1'\ e: L
.
"-"'-""'-
,~ ~....
(PO
F \FINANCE\BUDGET\OBBUDREV\9900\FINALCHG\SRGANN WPD
Council Meeting June 22, 1999 Santa MOnica, California
TO
Mayor and City Council
FROM
City Staff
SUBJECT
Recommendation to Approve Resolutions Establlshmg the City's Gann
Appropnatlons Limit for FY 1999-00 and Appropnatlng FY 1998-99
Funds to Gann'ed Reserve and/or DeSignated Balance Sheet Accounts
Introduction
ThiS report recommends approval of resolutions establlshmg the City's Gann
Appropnatlons Limit for FY 1999-00 at $223,112,769 and approprlatmg available FY
1998-99 funds to Gann'ed reserve and/or deSignated balance sheet accounts
Gann Aooroonatlons Limit for FY 1999-00
On June 22, 1999, the City Council Will be consldermg the proposed City FY 1998-99
budget for adoption In order to meet legal requirements, the City Council must also
formally adopt the City's Gann Appropnatlons Limit for FY 1999-00
Based upon Article XIIIB Appropnatlons Limit Uniform GUidelines published by the
League of California Cities In March 1991, the City's Gann Appropnatlons Limit of
$223,112,769 for FY 1999-00 has been computed and made available to the public
fifteen days pnor to thiS meeting The FY 1999-00 limit has been computed based on
the follOWing allowable mcrease factors applied to the adjusted FY1998-99 Gann Limit
the annual percentage change m the State Per Capita Personal Income times the
-1-
. ' ~I ') 2 ::..;...i.'
: i!"oj l- ~J""".::I
<.0
annual percentage population change for the City Both factors were provided by the
State Department of Finance Staff recommends that Council approve the FY 1999-00
limit based on these factors The calculation of the City's FY 1999-00 limit uSing these
factors IS detailed at Attachment A An appropnate resolution to establish the CIty'S FY
1999-00 Gann Appropnatlons LimIt at $223,112,769 IS at Attachment B
The FY1998-99 Gann limit adopted by the City Council on June 23, 1998 has been
adjusted, retroactively to FY1992-93, usmg (where applicable) the allowable adjustment
factor of the annual percentage change In "Non-Residential Assessed Valuation" In
place of the annual percentage change In "Callforma Per Capita Personal Income"
adjustment factor to recognize the greater Impact on City services resulting from non-
reSidential economIc development In the City since FY1992-93 ThiS alternate factor
was not preViously used as the data upon which It IS based was not preViously
avaIlable
Comoanson of the FY 1999-00 Gann Limit to the Prooosed FY 1999-00 Aooroonatlons
- -
and Tax Proceeds Subject to LImitation
A comparison of the City'S FY 1999-00 Gann Appropnatlons Limit and FY 1999-00
appropnatlons and tax proceeds subject to limitation as set forth In the City's Proposed
FY 1999-00 Budget (Including recommended final changes) IS as follows
-2-
Proposed Gann-related Spending for FY 1999-00
TORCA
On-GOIng Override Override
Component + Component" + Comoonent = Total
Gann Limit
Appropriations
Subject to
LimltatlOn***
$162,373,739
$46.629,881
$14,109,149** $223.112,769
Net Under/COver)
29,783.010
$132.590.729
46,629.881
$ 0
11,026,308**** 87.439.199
$ 3.082,841 $135.673.570
*
For Police, Schools, BasIc City Services and Other SpecifIed Purposes per City
Charter
Limit reflects estimated FY 1999-00 TORCA Tax proceeds and share of Interest
earnmgs, and estimated unexpended tax proceeds as of 6/30/99
In terms of receipt of tax proceeds, the City IS $113,999,629 under Its Gann
Limit
**
***
****
Consists of FY 1998-99 approprratlons subject to limitation reappropnated to FY
1999-00 plus new FY 1999-00 appropnatlons subject to limitation
The above table Indicates that In all components of the City's total Gann Approprratlons
LimIt, FY 1999-00 approprratlons subject to limitation are equal to or less than the
applicable limit component
Appropnatlon of Available FY 1998-99 Funds to Gann'ed Reserve and/or DeSignated
Balance Sheet Accounts
Under the provIsions of Article XIIIB of the State Constitution, a city IS authorrzed to
approprrate 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
-3-
action can be accomplished by the City Council passing a resolution to this effect For
FY 1998-99, an appropriate resolution to accomplish this transaction has been
prepared and IS at Attachment C
By takmg this action, the City Council, In effect, subjects to the FY 1998-99 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 1999-00 and/or subsequent
fiscal years free of FY 1999-00 and/or subsequent fiscal years' Gann limitations
As the following table mdlcates, Council adoption of the resolution at Attachment C
means that up to $13,478,692 of "un-Gann'ed" funds which may be available at the
end of the current fiscal year can be "Gann'ed"
Estimated Actual Gann-related Soendlna for FY 1998-99
- -
On-Going Overnde
Comoonent + Component"** +
TORCA
Overnde
Component =
Total
Gann Llmlt*
$69,000.880
$29,801,654
$11,944.875 $110,747,409
EstImated Actual
Spending Subject to
Limitation"""
Net Under/(Over)
67.186.456
$ 1.814.424
29,801.654
$ 0
280.607 97.268.717
$11,664.268 $ 13.478.692
*
As adopted by the City Council on June 23, 1998
In terms of receipt of tax proceeds, the City IS $3,073,004 under Its Gann limit
For Police, Schools, BaSIC City Services and Other Specified Purposes per City
Charter
**
***
-4-
When the City's FY 1998-99 Comprehensive Annual Financial Report IS submitted to
the Council this Fall, the Fmance Director will report to the Council actual total FY
1998-99 spendmg and the actual amount whIch the Council has appropnated to
"Gann'ed" reserve and/or designated balance sheet accounts
Budget/Financial Impact
Adoption of the attached resolution establishing the CIty'S FY 1999-00 Gann
Appropnatlons Limit does not have a budget/financial Impact Adoption of the attached
resolution appropnatmg available FY 1998-99 funds to "Gann'ed" reserve and/or
designated balance sheet accounts Will enable the City to contmue to fmance carryover
capital projects and Increase the City's ability to respond to future service needs
Recommendation
It IS recommended that the attached resolutions which establish the City's Gann
Appropnatlons Limit for FY 1999-00 at $223,112,769 based on the allowable Increase
factors of the annual percentage change m the State Per Capita Personal Income and
the annual percentage population change of the City, and which appropnate up to
$13,478,692 of available FY 1998-99 funds to Gann'ed reserve and/or designated
balance sheet accounts be approved
-5-
Prepared by Mike Dennrs, Director of Finance
Attachments A City of Santa Monica Calculation of FY 1999-00 Gann AppropriatIOn
Limit
B Resolution of the City Council of the City of Santa Monica
Establishing the Gann AppropriatIon Limit for the Fiscal Year 1999-00
C Resolution of the City Council of the City of Santa Monica
Appropriating FY 1998-99 Funds to Gann'ed Reserve and/or
Designated Balance Sheet Accounts
-6-
ATTACHMENT A
CITY OF SANTA MONICA CALCULATION OF FY 1999-00
GANN APPROPRIATIONS LIMIT
FY 1998-99 GANN APPROPRIATIONS LIMIT
Ongoing Component (Exclusive of TORCA Override Component) (a1
$
152,365,840
Police. Schools. BasIc City Services and Other SpeCified Purposes
Expenditure Ovemde (~)
$
43.755.850
196,121,690
ADJUSTMENT FACTORS
Allowable FY 1999-00 Adjustment
California Per Capita Personal Income Change 'c;
City Population Change (~'I
1 0453 times
1 0195 =
x
1 06568335
Subtotal
$
209,003,620
Plus FY 1999-00 TORCA Override Component
(Per Section 2015C of City Charter) (d',
$
14.109.149
FY 1999-00 TOTAL GANN APPROPRIATIONS LIMIT
$
223,112,769
(a) The FY 1998-99 ongoing component adopted by the City CouncIl on June 23, 1998 was
$69.000,880 ThiS amount has been adjusted. retroactively to FY 1992-93 uSing (where
applicable) the allowable adjustment factor of uNon-Resldentlal Assessed Valuation Change" In
place of the "California Per Capita Personal Income Change" adjustment factor ThiS
recalculation results In a revised FY 1998-99 amount of $152,365,840 Calculation details are
on file In the Finance Department
(b) Overrrde approved by City voters March 26, 1996. exclusive of TORCA component Resulting
overrrde approved by the City Council on June 23. 1998 was $29.801,654 ThIS amount has
been adjusted. as explained In "(a)"' from the FY 1995-96 amount to be $43,755,850 for FY
1998-99
(c) Per State Department of Finance. May 1, 1999 State law permits a CIty to use the product of
eIther ItS annual City population change or the annual population change of the county In which
the City IS located, and either the California Per Capita Personal Income Change or the Non-
ReSIdential Assessed Valuation Change
(d) Approved by City voters March 26. 1996 FY 1999-00 amount reflects a) estimated FY 1999-
00 TORCA tax proceeds and share of Interest earnings, and (b) estimated unexpended tax
proceeds as of 6/30/99
-1-
l
ATTACHMENT B
FIN CMD sd/srgannap
Council MeetIng June 22. 1999
Santa MonIca, California
RESOLUTION NO. 9416
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING THE
GANN APPROPRIATIONS LIMIT FOR THE
FISCAL YEAR 1999-00
WHEREAS, the City Council IS required under the provIsions of Government Code
SectIon 7910 and Article XIIIS of the CalIfornia Constitution to establish Its
appropriations limIt by resolution. and
WHEREAS, documentation used In the determInatIon of the appropriations limIt
has been available to the publIc for fifteen days prior 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 XIIIS of the CalifornIa Constitution, the City
of Santa MOnica appropriatIons limit for the fiscal year 1999-00 shall be $223,112,769
-1-
!
SECTION 2 The City Clerk shall certify to the adoption of the ResolutIon, and
thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM
'-'"'I -..--1 / I
f " ". PI!. -1-1.. ,-
. I; 11.-.\. llA....-'.L.. Ylj-<--<; , ~"IJ_, I.A-L
MARSHA JONES MOUTRIE
CIty Attorney
-2-
Adopted and approved this 22nd of June, 1999
...
----- -
/f-{tit/l CCl11"- - ----
( Pam O'Connor, Mayor
!
I. Mana M Stewart, City Clerk of the City of Santa MOnica, do hereby certify that
the foregoing ResolutIon 9416(CCS) was duly adopted at a meeting of the Santa
MOnica City CounCil held on the 22nd of June, 1999, by the following vote
Ayes Council members
Feinstein, Holbrook, McKeown. Rosenstein.
Bloom, Mayor Pro Tem Genser,
Mayor O'Connor
Noes CounCil members
None
Abstam CounCil members
None
Absent CounCIl members
None
ATTEST
~\ ~
\ \
~ '\..)...;
~-o-~
\,
Mana M Stewart, City Clerk
ATTACHMENT C
FIN CMD sd/srgannap
Council Meeting June 22, 1999
Santa MOnica, California
RESOLUTION NO. 9417
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROPRIATING FISCAL YEAR 1998-99
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 authonzed to appropnate to a Gann'ed reserve and/or deSignated
balance sheet accounts the difference between actual spending subject to the Gann
Appropriations Limit and the City's Gann Appropnatlons Limit for that fiscal year, and
WHEREAS. appropnatlng available funds to Gann'ed reserve and/or
deSignated balance sheet accounts IS In the public Interest because establishment 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
-1-
SECTION 1 All Fiscal Year 1998-99 General Fund, Parks and Recreation
Fund. and TORCA Fund appropriatIons, exclusive of Federal or State grant
apprOpriations, shall be adjusted to actuals as determined by the City'S annual financial
audIt as set forth In the City'S Fiscal Year 1998-99 Comprehensive Annual Financial
Report, and the difference between the lesser of 513,478,692 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 1998-99 Comprehensive Annual Financial
Report for these Funds and the City's Fiscal Year 1998-99 Gann Appropriations Limit,
to the extent funds are available. IS hereby appropriated to reserve and/or deSignated
balance sheet accounts In these respective Funds
SECTION 2 The City Clerk shall certrfy to the adoption of thiS Resolution,
and thenceforth and thereafter the same shall be In full force and effect
APPROVED AS TO FORM
~k
MARSHA JOI'4.e!S MOUTRIE
City Attorney
-2-
.
Adopted and approved this 22nd of June. 1999
~.h\ (t?j1~-
I
!
\ Pam O'Connor, Mayor
,
I. Marla M Stewart, CIty Clerk of the CIty of Santa MOnica, do hereby certify that
the foregoing Resolution 9417(CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 22nd of June, 1999, by the follOWing vote
Ayes Council members
Feinstein. Holbrook. McKeown, Rosenstein.
Bloom, Mayor Pro Tem Genser,
Mayor O'Connor
Noes Counalmembeffi
None
Abstain CounCil members
None
Absent CounCil members
None
ATTEST
'--
\\f. ~.... '\-. I
~_ \.....:, . \~ ~n.-,X
"-'
Marra M Stewart, City Clerk