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SR-6-D (106) ~ ... ,-~ FIN:CMD:ymk:br/srgannap Councll Meeting: June 25, 1991 Santa Monica, Californla JUfi 2.s J~' TO: MAYOR AND CITY COUNCIL FROM: City Staff SUBJECT: Recommendation to Approve Resolutions Establishing the City's Gann Approprlatlons Limit For FY1991-92 and Appropriating FY1990-91 Funds to Gann'ed Reserve and/or Deslgnated Balance Sheet Accounts Introduction This report recommends approval of resolutions establishing the Clty'S Gann Appropriations Limit for FY1991-92 at $71,750,466 and appropn at 1 on of available FY1990-91 funds to Gann'ed reserve and/or designated balance sheet accounts. Gann Approprlatlons Limit for FY1991-92 On June 25, 1991, the City Council wll1 be considerlng the proposed City FY1991-92 budget for adoption. In order to meet legal requlrements, the Clty Counc 11 must also formally adopt the City's Gann Appropri at ions Limit for FYI991-92. Based upon Artlcle XIIIB ApproprlatJOnS Limit Unlform Guidellnes released by the League of California Cltles In March 1991, the City's Gann Appropriatlons Limlt of $71,750,466 for FY1991-92 has been computed and made avallable to the public fifteen days prior to thlS meetlng. The FYl991-92 11mlt has been computed based on the fo 11 owi ng all owabl e increase fa<;tors: the annual percentage change in the State Per Capita Personal Income times the annu a 1 percentage popu1 at i on change for Los Angel es County. Staff recommends that the Council approve the FYl991-92 1 imit based on these factors. The calculatlon of the C1ty'S FY1991-92 11mit uSlng these factors is detalled at - 1 - t-~ JUH 2 b 1991 Attachment A. An appropriate resolution to establish the City's FYl991-92 Gann Appropriation Limit at $71,750,466 is at Attachment B. The alternate factors of the "annual percentage population change of the C1ty of Santa Mon; ca II and the "annual percentage change of local non-res1dential assessed valuation due to new construction" were not used because: a) the ann ua 1 percentage population change for Los Angeles County is a better approximat1on of the increase in the actual population served by the City, and b) data concerning the annual percentage change in the local non-residential assessed val uation due to new construct 1 on is not avail able from the County Assessor's Office. Duri ng FYl991-92, staff w1ll research alternate ways of obtaining the local non-residential assessed valuat10n change data. Compari son of Proposed FY1991-92 Appropriations and Tax Proceeds Subject to Limitation to the FY1991-92 Gann Limit A comparison of the City's FY1991-92 Gann Appropriations Limlt and FY1991-92 appropri at ions and tax proceeds subject to l1m1tation as set forth in the City's proposed FY1991-92 budget (including recommended final changes) is as follows: Proposed Gann-related Spend1ng for FY1991-92 Capital Improvements Police and Outlays TORCA On-Going Override Overnde Override Component + Component + Component + Component = Total Gann Limit $51,965,28] $ 7,426,871 $11,759,214 $599,100 $71,750,466 Appropriations Subject to L1m1- tation 50,769,852 6~281~957 11,759,214 110,281 68,921~304 Net under! $ 2,829,162* (over) $ 1,195,429 $ 1,]44,914 $ -0- $488,819 - 2 - * In terms of receipt of tax proceeds, the City is $115,529 under its' Gann Limit . The above table indicates that in all components of the City's total Gann Appropriations Limit, FY1991-92 appropriations subject to lim1tation are less than the applicable limit component. Appropriation of Available FY1990-91 Funds to Gann'ed Reserve and/or Designated Balance Sheet Accounts Under the provisions of Article XIIIB of the State Constitution, a city i s authorized to appropriate to reserve and/or designated balance sheet accounts the difference between actual spending (1 . e. expenditures and encumbrances) subject to the Gann Appropriations Limit and the City's Gann Appropnations L 1mit for that fiscal year. Th1S act i on can be accompli shed by the City Council pass i ng a reso 1 ut i on to th is effect. For FY1990-91, an appropri ate resolution to accomplish this transaction has been prepared and 1S at Attachment C. By taking this act10n, the C1ty Council, in effect, subjects to the FY1990-91 Gann Appropriations limit the funds so appropr1ated to Gann'ed reserve and/or designated balance sheet accounts. Thus, the lIGann'edll monies become available to finance carryover capital projects or for appropriatlon durlng FY 1991-92 and/or subsequent fiscal years free of FY1991-92 and/or subsequent fiscal year's Gann limitations. As the follow; ng table 1nd1cates, Counc1l adopt1on of the resolution at Attachment C means that up to $7,655,582 of funds which may be avallable at the end of the current flscal year can be "Gann'ed". - 3 - -- -- Estimated Actual Gann-related Spendlng for FY1990-91 Police Capltal TORCA On-going Override ProJect Override Component + Component + Component + Component = Total Gann limi t* $49,051,615 $ 7,010,450 $11,099,881 $ 805,700 $67,967,646 Estimated Actual Spending Subject to LimitatlOn 43,722l717 5l393,323 11,099,881 96,143 60,312,064 Net under/ $ 5,328,898 $ 1,617,127 $ -0- $ 709,557 $ 7,655,582** (over) * As adopted by the Clty Council on June 26, 1990. ** In terms of recelpt of tax proceeds, the City lS $552,299 under lts' Gann Limit. When the City's FY1990-91 Cornprehenslve Annual Financlal Report is submltted to the Counc i 1 this Fall, the Flnance Director will report to the Caunc i 1 actua 1 total FY1990-91 spendlOg and the actual amount which the Councll has appropriated to "Gann'ed" reserve and/or designated balance sheet accounts. Budget/Flnancial Impact Adoptlon of the attached resolution establ1shing the City's FYl991-92 Gann Appropriations Limit does not have a budget/financial lmpact. Adoptlon of the attached resolution appropriating available FY1990-91 funds to "Gann'ed" reserve and/or des 1 gnated balance sheet accounts wi 11 enable the City to continue to finance carryover capital projects and increase the City's ability to respond to future service needs. - 4 - Recommendation It lS recommended that the attached resolut10ns which establish the C1ty'S Gann Appropriations Limit for FY1991-92 at $71,750,466 based on the allowable increase factors of the annual percentage change in the State Per Cap i ta Personal Income and the annual percentage populat lOn change of Los Angeles County,and which appropriate up to $7,655,582 of available FY1990-91 funds to Gann'ed reserve and/or designated balance sheet accounts be approved. Attachments Prepared by: Mike Dennis, Director of Finance - 5 - - - ATTACHMENT A CITY OF SANTA MONICA CALCULATION OF FY1991-92 GANN APPROPRIATIONS LIMIT FY1990-91 TOTAL GANN APPROPRIATIONS LIMIT Ongoing Component (a) $49,051,615 Police Override Component (a) 7,010,450 Capital Improvement and Outlays Override Component (a) 111099,881 FY1990-91 Gann Limit (Exclusive of $67,161,946 Torca Component) ADJUSTMENT FACTORS (d) Allowable FY1991-92 Adjustment (b) Call forni a Per Capital Personal Income Change 1.0414 times County Pop. Chg. 1.0173 = 1.0594 x 1.0594 Sub-Total $71,151,366 Plus FY1991-92 TORCA Override Component (Per Section 2015 of Clty Charter) (c) 599,100 FY1991-92 TOTAL GANN APPROPRIATIONS LIMIT $71,750,466 Consisting of the Following Components: Ongoing Component $51,965,281 Police Override Component $ 7,426,871 Capital Improvements and Outlays Override Component $11,759,214 TORCA Override Component $ 599,100 (a) As adopted by City Council on 6/26/90. (b) Per State Department of Finance, May 1, 1991. (c) Approved by the voters June 1988; specific FY1991-92 amount per proposed FY1991-92 Budget. (d) Prior to State Proposition 111 approved by the voters in June 1990, a public jurisdictlon's Gann Approprlatlons Llmlt was increased annually by the product of the allowable percentage change in the Cost-oF-Living fac- tor and the allowable percentage change in the Populatlon Change factor. State Proposition ]11 changes, retroactively from FYI986-87, the allowable Cost-of-living and Population Change factors. The Cost-of-Living factor is changed from the lesser of the annual percentage change of the u.s. CPI or the annual percentage change of the State Per Capita Personal Income, to either the annual percentage change of the State Per Capita Personal Income or the annual percentage change of local non-residentlal assessed valuation due to new construction. The Population factor is changed from the annual population percentage change of the jurisdiction, to either the annual percentage population change of the jurisdiction or the annual percentage population change of the county in which the jurisdiction is located. - , ATTACHf.1ENT C FIN~CMD~ymk~br/srgannap Council Meetlng: June 25, 1991 Santa Mon1ca, Callforn1a RESOLUTION NO. 8248(CCS) (C1ty Counc1l Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROPRIATING FISCAL YEAR 1990-91 FUNDS TO GANN'ED RESERVE AND/OR DESIGNATED BALANCE SHEET ACCOUNTS WHEREAS, under the provisions of Article XIIIB of the Cal ifornla Const1tution, a city is author1zed to appropr1ate to a Gann'ed reserve and/or des1gnated ba 1 ance sheet accounts the difference between actual spending subject to the Gann Appropnations Limit and the C1ty/$ Gann Appropriations Lim1t for that f1scal year; and WHEREAS, appropn at 1 ng avallable funds to Gann' ed reserve and/or deslgnated balance sheet accounts 1S in the publ1C 1nterest because establlshment of Gann'ed reserve and/or designated balance sheet accounts lncreases the abil1ty of the C1ty Council to respond to the service needs of the citlzens of the C1ty of Santa Mon1ca. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. All Flscal Year 1990-91 General Fund and Parks and Recreat10n Fund appropn at lOns l exc1 us lVe of Federal m~ State grant appropr1at10ns, shall be adjusted to actuals as determl ned by the Clty'S annua 1 financial audit as set forth 1n the C Hy , s Fiscal Year 1990-91 Comprehensive Annual Flnancul Report, and the difference between the 1 esser of $7,655,582 or actua1 expendltures and encumbrances subJect to 1imitation as - - , determl ned by the C 1 ty' s annual flnanclal audl t as set forth In the Clty'S Flscal Year 1990-91 Comprehenslve Annual Flnanclal Report for these Funds and the Clty's Fiscal Year 1990-91 Gann Appropriatlons Llmlt, to the extent funds are available, is hereby appropn ated to reserve and/or des i gnated 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: ,. , , < ~- < . -~..<1tp~-- .1i , . ROBERT M. MYERS Clty Attorney , . Adopted and approved this 25th day of June, 1991. J/,~' ~j> 6' / /Mayor I hereby certify that the foregoing Resolution No. 8248(CCS) was duly adopted by the City council of the city of Santa Monica at a meeting thereof held on June 25, 1991 by the fallowing Council vote: Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen, Vazquez, Zane, Mayor Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: - F Clty Clerk -- - - ATTACHMENT B ~ FIN:CMD:ymk:brlsrgannap Council Meeting: June 25. 1991 Santa Monica, California RESOLUTION NO. 8249(CCs) (City Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1991-92 WHEREAS, the City Council is requ1red under the provisions of Government Code Section 7910 and Article XIIIB of the California Constitution to establish its approprlations 1imlt by resolution; and WHEREAS, documentation used in the determination of the appropriations 11mlt has been avallable to the public for fifteen days prlor to this meetlng 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 Artlcle XII IB of the Callfornia Constitutlon, the City of Santa Monica approprlations 11mlt for the fiscal year 1991-92 shall be $71,750,466. SECTION 2. The City Clerk shall certl fy to t he adopt i on of the Resolution, and thenceforth and thereafter the same shall be 1n full force and effect. APPROVED AS TO FORM: . _ .., ~ .. ~'-""r _ . , - ~ ROBERT M. MYERS City Attorney . ! Adopted and approved this 25th day of June, 1991. {) <<J~ JI Mayor I hereby certify that the foregoing Resolution No. 8249(CCS) was duly adopted by the City Council of the city of Santa Monica at a meeting thereof held on June 25, 1991 by the following Council vote: Ayes: Councilmembers: Genser, Holbrook, Katz, Olsen, Vazquez, Zane, Mayor Abdo Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: .. ~ -\ , , / -~ ./ / I -- ~ ;,~ ~~<- .-- /:'l/'..:.d:!<- ,-.' city Cler~