SR-6-B (86)
68 .
FIN'CMD:kfjg:\cafrtemp\obbudrev\misc9596\srgannap.96
Council Meet~ng: June 20, 1995 Santa Monica, California
JUN 2 0 1995
TO: MAYOR AND CITY COUNCIL
FROM: City Staff
SUBJECT: Recommendat~on to Approve Resolut~ons Establishing
the City's Gann Appropr~ations L~mit for FY 1995-96
and Appropriating FY 1994-95 Funds to Gann'ed Reserve
and/or Designated Balance Sheet Accounts
Introduction
This report recommends approval of resolutions establ~shing the
City's Gann Appropriations Limit for FY 1995-96 at $96,457,047
and appropriating available FY 1994-95 funds to Gann' ed reserve
and/or designated balance sheet accounts.
Gann Appropr~ations Llmlt for FY 1995-96
On June 20, 1995, the City Council will be considering the
proposed City FY 1995-96 budget for adoptlon. In order to meet
legal requlrements, the Clty Council must also formally adopt the
City's Gann Appropriations Limit for FY 1995-96.
Based upon Article XIIIB Appropriations Llmit Unlform GUldelines
published by the League of Callfornia Clties In March 1991, the
Clty'S Gann Appropriations Llmit of $96,457,047 for FY 1995-96
has been computed and made available to the public fifteen days
prior to this meeting. The FY 1995-96 limlt has been computed
based on the following allowable increase factors: the annual
percentage change ln the State Per Capita Personal Income tlmes
-1- 62se I
the annual percentage population change for the County of Los
Angeles. Both factors were provided by the State Department of
Finance. Staff recommends that the Council approve the FY 1995-
96 llmit based on these factors. The calculation of the City's
FY 1995-96 limit using these factors 1S detailed at Attachment A.
An appropriate resolution to establish the City's FY 1995-96 Gann
Appropriations Limit at $96,457,047 is at Attachment B.
Comparison of Proposed FY 1995-96 Appropriations and Tax Proceeds
SubJect to Limltation to the FY 1995-96 Gann Limit
A compar1son of the City's FY 1995-96 Gann Appropriat1ons Limit
and FY 1995-96 appropriations and tax proceeds subject to
limitat10n as set forth in the City's Proposed FY 1995-96 Budget
(lncluding recommended final changes) is as follows:
Proposed Gann-related Spending for FY 1995-96
TORCA
On-Going Overrlde Override
Component + Component * + Component = Total
Gann LJ.mit $58,578,786 $27,618,061 $10,260,200** $96,457,047
Appropr1atlons
Subject to
LimJ.tatlon*** 52,685,358 27/618,061 7,820,999**** 88/124,418
Net under/(Over)$ 5,893/428 $ 0 $ 2,439,201 $ 8,332,629
* For Police, Schools, Basic City Services and Other Specified
Purposes per City Charter.
** Limlt reflects estimated 95/96 TORCA Tax proceeds and share
of interest earnings, and estimated unexpended tax proceeds
as of 6/30/95.
*** In terms of receipt of tax proceeds, the City is $4,976,095
under its Gann Limit.
**** Consists of FY 1994-95 appropriations subject to limltation
reappropr1ated to FY 1995-96 plus new FY 1995-96 appropri-
ations subJect to limitation.
-2-
The above table indicates that in all components of the C~ty's
total Gann Appropr~ations Limit, FY 1995-96 appropriations
subject to limitation are equal to or less than the applicable
limit component.
Appropriation of Available FY 1994-95 Funds to Gann'ed Reserve
and/or Desiqnated Balance Sheet Accounts
Under the provisions of Article XIIIB of the State Constitution,
a city is authorized to approprlate to reserve and/or designated
balance sheet accounts the difference between actual spending
(~ e. expendi ture~s and encumbrances) subJect to the Gann
Appropriations Lim~t 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 1994-95, an
appropr~ate resolut~on to accompl~sh this transaction has been
prepared and is at Attachment C.
By taking this action, the C~ty Council, ~n effect, subjects to
the FY 1994-95 Gann Appropriations Limit the funds so
appropriated to Gann'ed reserve and/or designated balance sheet
accounts. Thus, the lIGann'ed" monies become ava~lable to finance
carryover capital projects or for appropriat~on during FY 1995-96
and/or subsequent fiscal years free of FY 1995-96 and/or
subsequent f~scal years' Gann limitations.
As the following table indicates, Council adoption of the
-3-
resolution at Attachment C means that up to $21,046,225 of funds
which may be available at the end of the current flscal year can
be "Gann' ed" .
Estimated Actual Gann-related Spendinq for FY 1994-95
TORCA
On-Golng OVerrlde Overrlde
Component + Component*** + Component = Total
Gann Limit* $55,754,274 $26,286,393 $9,985,375 $92,026,042
Estimated Actual
Spendlng Subject
to L1rnitation** 44,648,229 26,286,393 45,195 70,979,817
Net Under/(Over) 11,106,045 0 9,940,180 21,046,225
* As adopted by the City Councll on June 28, 1994.
** In terms of recelpt of tax proceeds, the City 1S $2,983,527
under its Gann Limit.
*** For Police, Schools, Basic City Services and Other Specifled
Purposes per City Charter.
When the City's FY 1994-95 Comprehensive Annual Flnancial Report
lS submltted to the Council this Fall, the Finance Director will
report to the Council actual total FY 1994-95 spendlng and the
actual amount which the Council has appropriated to "Gann'edl1
reserve and/or designated balance sheet accounts.
-4-
- ~--
Budqet/Financial Impact
Adopt loon of the attached resolution establloshlong the Clty'S FY
1995-96 Gann Appropriations Limit does not have a
budget/flonancloal lompact. Adopt loon of the attached resolution
approprloating avalolable FY 1994-95 funds to lIGann'edll reserve
and/or designated balance sheet accounts will enable the C1.ty to
continue to finance carryover capital proJects and increase the
City's ability to respond to future service needs.
Recomrnendat1.on
It 1.S recommended that the attached resolut1.ons which establish
the City's Gann Approprlations Limit for FY 1995-96 at
$96,457,047 based on the allowable lncrease factors of the annual
percentage change in the State Per Caplta Personal Income and the
annual percentage population change of the County of Los Angeles,
and WhlCh appropriate up to $21,046,225 of available FY 1994-95
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 FY 1995-96
GANN APPROPRIATIONS LIMIT
FY 1994-95 GANN APPROPRIATIONS LIMIT
Ongoing Component (Exclusive of TORCA
Override Component) $55,754,274
Police, Schools, BasIc City Services and
Other SpecIfIed Purposes ExpendIture Overndefal 26,286,393
Subtotal $82,040,667[bf
ADJUSTMENT FACTORS
Allowable FY 1 995-96 Adjustment:
Callforma Per Capita
Personal Income Change[C) 1.0472 times
County Pop Chg [cl 1.0033 = x 1.05066
Subtotal $86,196,847
Plus FY 1995-96 TORCA Overrrde Component
(Per Section 20158 of City Charter(d)) $10,260,200
FY 1995-96 TOTAL GANN APPROPRIATIONS LIMIT $96,457,047
(a) Overrrde Approved by City voters on June 2, 1992.
(b) As adopted by City Council on June 28, 1994, exclusive of TORCA component
(c) Per State Department of Finance, May 1, 1995. 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 June 2, 1992; FY 1995-96 amount reflects:
a) estimated FY 1995-96 TORCA tax proceeds and share of Interest earnings, and b)
estimated unexpended tax proceeds as of 6/30/95.
-6-
FIN CMD:kf/srgannap
Counc~l Meet~ng: June 20, 1995 Santa Mon~ca, Cal~fornia
RESOLUTION NO. 8912
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING THE
GANN APPROPRIATIONS LIMIT FOR THE
FISCAL YEAR 1995-96
WHEREAS, the City Council is required under the
provisions of Government Code Section 7910 and Art~cle XIIIB of
the Cal~forn~a Const~tut~on to establish ~ts appropr1at~ons liffi~t
by resolut~oni and
WHEREAS, documentat~on used ~n the determinat~on of the
appropriat~ons l~m~t has been available to the publ~c for f~fteen
days pr~or to th~s meet~ng 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
Cal~forn~a Constltut~on, the City of Santa Monica approprlatlons
llffilt for the f~scal year 1995-96 shall be $96,457,047
-7-
SECTION 2. The City Clerk shall certify to the adoptlon
of the Resolutlon, and thenceforth and thereafter the same shall
be In full force and effect.
APPROVED AS TO FORM:
~111'~ ~~h~t/J ~uc~
MARSHA JONE~ MOUTRIE
City Attorney
-8-
--- --
.
Adopted and approved thIS 20th of June. 1995
4J~~
Mayor
I hereby certify that the foregomg ResolutIon 8913 (CCS) was duly adopted at a meetmg
of the City CouncIl held on the 20th of June. 1995 by the followmg vote
Ayes CouncIl members Abdo, Genser, Greenberg, Holbrook/O'Connor, Rosenstem
Noes Counell members None
Abstam Couned members None
Absent Councll members Ebner
ATTEST
,&dx/z;te4
/ / //
CIty Clerk
#
FIN:CMD.kf/srgannap
Council Meet~ng' June 20, 1995 Santa Mon~ca, Cal~fornia
RESOLUTION NO. R911
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROPRIATING FISCAL YEAR 1994-95
FUNDS TO GANN'ED RESERVE AND/OR DESIGNATED
BALANCE SHEET ACCOUNTS
WHEREAS, under the provisions of Art~cle XIIIB of the
Cal1fornia Const1tut~on, a c1ty 1S authorlzed to appropriate to a
Gann'ed reserve and/or designated balance sheet accounts the
d~fference between actual spending subJect to the Gann
Appropr1at~ons Lim~t and the City's Gann Appropr1at~ons L1ffi1t for
that fiscal year; and
WHEREAS, approprlating ava~lable funds to Gann'ed
reserve and/or des1gnated balance sheet accounts 18 1n the publ1C
lnterest because establishment of Gann'ed reserve and/or
des~gnated balance sheet accounts lncreases the ability of the
City Councll to respond to the serV1ce needs of the cltizens of
the Clty of Santa Mon1ca.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS
-9-
----
. ..
SECTION l. All Fiscal Year 1994-95 General Fund, Parks
and Recreatlon Fund, and TORCA Fund appropriatlons, excluslve of
Federal or State grant approprlatlons, shall be adJusted to
actuals as determlned by the City's annual financlal audlt as set
forth ln the Clty'S Fiscal Year 1994-95 Comprehenslve Annual
Financlal Report, and the dlfference between the lesser of
$21,046,225 or actual expendltures and encumbrances subJect to
llmitatlon as determ~ned by the City's annual financl.al aud~t as
set forth in the City's Fiscal Year 1994-95 Comprehensl.ve Annual
Financl.al Report for these Funds and the City's Fiscal Year 1994-
95 Gann Approprlatlons Llml.t, to the extent funds are avallable,
is hereby approprlated to reserve and/or designated balance sheet
accounts in these respectlve Funds.
SECTION 2. The Clty Clerk shall certify to the adoption
of this Resolutlon, and thenceforth and thereafter the same shall
be ln full force and effect.
APPROVED AS TO FORM:
fl:(f[4v~~-,-~
MARSHA JONE MOUTRIE
Clty Attorney
-10-
-----
. .
Adopted and approved thiS 20th of June, 1995
J1J~
Mayor
I hereby certify that the foregomg ResolutiOn 8912 (CeS) was duly adopted at a meetmg
of the City CouncIl held on the 20th of June. 1995 by the following vote
Ayes CouncIl members Abdo. Genser, Greenberg, Holbrook,OlConnor, Rosenstem
Noes Council members None
Abstam Council members None
Absent CouncIl members Ebner
ATTEST
&Ltk/b/
- / II
Cay Clerk