SR-062596-CC/HA/RA/PA-3
a/ HA/RAfPA"3
JUN 2 5 1996
FIN:CMD:sd/f.\finance\admin\stfrpts\srgannap.97
Council Meeting. June 25, 1996 Santa Monlca, Californla
TO: MAYOR AND CITY COUNCIL
FROM: City Staff
SUBJECT: Recommendation to Approve Resolutlons Establishing
the Clty'S Gann Appropriations L1.mit for FY 1996-97
and Appropriating FY 1995-96 Funds to Gann'ed Reserve
and/or Designated Balance Sheet Accounts
Introduction
Th1.s report recommends approval of resolutions establishing the
City's Gann Appropriations Limit for FY 1996-97 at $100,246,886
and approprlating available FY 1995-96 funds to Gann'ed reserve
and/or des1.gnated balance sheet accounts
Gann Appropriations Limit for FY 1996-97
On June 25, 1996, the City Council wlll be considering the
proposed City FY 1996-97 budget for adoptlon. In order to meet
legal requirements, the Clty Council must also formally adopt the
City's Gann Appropriations Limit for FY 1996-97.
Based upon Article XIIIB Appropriations Limit Uniform Guidelines
published by the League of California Clties 1.n March 1991, the
City's Gann Appropriations Limit of $100,246,886 for FY 1996-97
has been computed and made available to the publlc fifteen days
prior to this meeting. The FY 1996-97 limit has been computed
based on the followlng allowable increase factors: the annual
percentage change in the State Per Caplta Personal Income times
JUN 2 5 1996
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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
1996-97 limit based on these factors. The calculation of the
City's FY 1996-97 limit uSlng these factors is detailed at
Attachment A An appropriate resolution to establish the City's
FY 1996-97 Gann Appropriations Limit at $100,246,886 is at
Attachment B.
Comparlson of Proposed FY 1996-97 Appropriations and Tax Proceeds
Subiect to Ll.mitation to the FY 1996-97 Gann Limit
A comparlson of the City's FY 1996-97 Gann Appropriations Limit
and FY 1996-97 appropriations and tax proceeds subject to
limltation as set forth in the City's Proposed FY 1996-97 Budget
(includlng recommended final changes) is as follows:
Proposed Gann-related Spendinq for FY 1996-97
TORCA
On-Gol.ng Override Override
Component + Component * + Component = Total
Gann Ll.ffil.t $61,608,725 $26,608,621 $12,029,540** $100,246,886
Appropriations
Subject to
Liml.tatl.on*** 58,096,746 26,608,621 9,152,722**** 93,858.089
Net Under/(Over)$ 3,511,979 $ 0 $ 2.876,818 $ 6,388,797
* For Police, Schools, Basic City Services and Other Specified
Purposes per City Charter
** Llmit reflects estimated 96/97 TORCA Tax proceeds and share
of interest earnings, and estimated unexpended tax proceeds
as of 6/30/96.
*** In terms of recelpt of tax proceeds, the City is $2,079,897
under its Gann Limit.
**** Conslsts of FY 1995-96 appropriations subject to limitation
reappropriated to FY 1996-97 plus new FY 1996-97 appropri-
ations subject to limitation.
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The above table indicates that in all components of the City's
total Gann Appropriations Limit, FY 1996-97 appropriations
subJect to lJ.mitation are equal to or less than the applicable
llffilt component.
Appropriation of Available FY 1995-96 Funds to Gann'ed Reserve
and/or Deslqnated Balance Sheet Accounts
Under the provisions of Artlcle XIIIB of the State Constitution,
a city lS authorlzed to appropriate to reserve and/or designated
balance sheet accounts the difference between actual spending
(i. e. expenditures and encumbrances) subject to the Gann
Appropriations Limit and the Clty'S Gann Approprlations Limit for
that fiscal year. This actlon can be accompllshed by the City
Council passing a resolutlon to thls effect. For FY 1995-96, an
appropriate resolution to accomplish this transaction has been
prepared and is at Attachment C.
By taking this action, the Clty Counell, in effect, subjects to
the FY 1995-96 Gann Appropriations Limit the funds so
appropriated to Gann'ed reserve and/or designated balance sheet
accounts. Thus, the "Gann'ed" monles become available to finance
carryover capital projects or for appropriation during FY 1996-97
and/or subsequent fiscal years free of FY 1996-97 and/or
subsequent fiscal years' Gann limltations.
As the following table indlcates, Council adoption of the
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resolution at Attachment C means that up to $15,247,175 of funds
which may be available at the end of the current fiscal year can
be "Gann' edll_
Estimated Actual Gann-related Spending for FY 1995-96
TORCA
On-Going Overr~de Override
Component + Component*** + Component = Total
Gann L~m1.t* $58,578,786 $27,618,061 $10,260,200 $96,457,047
Est~rnated Actual
Spend1.ng Subject
to L1.rn~tation** 53(559,058 27,618(061 32,753 81,209,872
Net Under/ (Over) $ 5,019,728 $ 0 $10,227(447 $15.247,175
* As adopted by the Clty Council on June 20 1995
** In terms of rece1pt of tax proceeds, the City is $879,631
under its Gann Llmit.
*** For Pollce, Schools, BaS1C City Services and Other Specified
Purposes per City Charter.
When the City's FY 1995-96 Comprehensive Annual Financial Report
1S submitted to the Council this Fall, the Finance Director w1ll
report to the Council actual total FY 1995-96 spending and the
actual amount which the Council has appropriated to "Gann'ed"
reserve and/or designated balance sheet accounts.
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Budget/Financial Impact
Adoption of the attached resolution establishing the City's FY
1996-97 Gann Appropr~ations Limit does not have a
budget/financial impact. Adoption of the attached resolution
appropriating available FY 1995-96 funds to "Gann'ed" reserve
and/or des~gnated balance sheet accounts w1ll enable the City to
continue to finance carryover capital projects and increase the
C1ty'S ab1l~ty to respond to future service needs.
Recommendatlon
It is recommended that the attached resolutions which establish
the City's Gann Appropriations Limit for FY 1996-97 at
$100,246,886 based on the allowable lncrease factors of the
annual percentage change 1n the State Per Capita Personal Income
and the annual percentage population change of the County of Los
Angeles, and WhlCh appropriate up to $15,247,175 of available FY
1995-96 funds to Gann'ed reserve and/or designated balance sheet
accounts be approved.
Attachments
Prepared by: M~ke Dennis, Director of Finance
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actual donation of $: 15 per meal
As of July 1994, the City subcontracted ltS Home Delivered Meals
Program to Westside Interfalth COurlCll (Meals on W~eels) . ThlS
arrangement has proved to be a cost effective and productlve method
of provldlng thlS serVlce, glven the organlzation's experlence and
broader program lTI dellvering ~eals to homebound seniors. The Home
Dellvered Meals Program provldes approxlmately 54 meals per day,
seven days a week, for homebound senlors ln Santa Monlca.
Revenue for these programs comes from thlS grant, the Dnlted States
Department of Agrlculture, partlclpant donatlons and the Clty'S
General Fund. The Clty 18 requlred to provide a minimum 15% local
matc~ for the Congregate Meals Progra~, and p~ovisions to do so are
already in place as lndlcated below.
BUDGET/FINANCIAL IMPACT
Total proJected Clty Congregate Meals and Home Delivered Meals
Program revenues and expenses for FY 1995/96 and FY 1996/97 are
shown below:
CONGREGATE MEALS PROG~~
FY 1995/96 FY 1996/97
# of Meals Served 49,082 # of Meals Served 49,048
Tot Clty Cash Expen. $271,931 Tot. Clty Cash Expen. $269,514
Less Grant Revenues $126,533 Less Grant Revenues $126,446
Less ?art:..c Donatlon $ 59,880 Less Partlc Donation $ 56,405
Net Clty Cost $ 85,518 Net Clty Cost $ 86,663
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ATTACHMENT B
?IN:CMD:sd/srgannap
c:ounc~l Meetl::g: June 25, 1996 Santa Monlca, Callfornla
RESOLUTION NO. 9044
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING THE
GANN APPROPRIATIONS LIMIT FOR THE
FISCAL YEAR 1996-97
WHEREAS, ':.he City Councl.l lS requlred under the
prOVl.Sl0nS of Government Code Sectlon 7910 and Artlcle XIIIB of
the Call:ornla Constltutlon to establlsh lCS approprlatlons limit
by ::-esolutlon; and
WtIEREAS , documentation used in the determlnatlon of the
approp:::-laclons llIDlt has been aval1able to the publlC for fifteen
days prlor to thlS neet~~g as requlred by Government Code Sectlon
7918
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
~ONIC~ DOES RESOLVE AS FOLLOWS,
SECTION ~ For purposes of ArtJ.cle XIIIB of the
~ .
Callfornla Conscitutlon, ::he Clty of Santa Monlca approprlations
l~mlt for the fisca~ year 1996-97 shall be $100,246,886.
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SEC':':::ON 2. ':'he Clty Clerk shall certlfy to the adoptJ..on
of the Resolut:lon, and thenceforth and thereafLer the same shall
be In f:.lll ferce and effect
APPROVED AS ~O FORM.
'r~ L~
if " 'A dt<..<-
MARSHA J~S.MOUTRIE
C1ty Att<t> ney
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Adopted and approved thIS 25th of June. 1996
dJ~
Mayor
I hereby certIfy that the foregomg ResolutIOn 9044 (CCS) 'vas duly adopted at a meetmg
of the Cny CouncIl held on the 15th of June. 1996 by the followmg vote
Aves CounCIlmembers Abdo. GenseL Greenberg. Holbrook. O'Connor.
Rosenstem
Koes Councllmembers Kone
Abstam CouncIlmembers None
Absent Councrlmembers Ebner
ATTEST
~~(~J _~
CIty Clerk
~ ATTACHMENT C
~IN:CMD sci/srgannap
Cou:J.c:.l tJ!ee~::.ng. June 25, =-996 Santa Mon~ca, California
RESOLUTION NO. 9045
{City Council Series}
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROPRIATING FISCAL YEAR 1995-96
FUNDS TO GANN'ED RESERVE AND/OR DESIGNATED
BALANCE SHEET ACCOUNTS
WHEREAS ( under the prOV1S1.0nS of Article XII:B of the
Cal:.rornla Constltutlon, a city is authorlzed to approprlate to a
~ I' !:"eserve and/or designated balance sheet accounts the
!....:;an.:l eo ci:.:::erence between accual spending subject ::0 t.he Gann
Approprla~~ons Llml.t and the City's Gann Appropriatlons Llm~t for
that f~scal year; and
WHEREAS, approprlatlng aval.lable funds to Gann'ed
reserve and/or des~gnaced balance sheet accounts lS ln the publ~c
l:lterest because establlshment of Gann'ed reserve and/or
::ieslgr.ated balance sheet: account.s l.ncreases the abllity of t.he
Cl~Y Counc:.:i. LO respond to the service needs of the citlzens of
the Clty of Santa Monlca
NOW, THEREFORE, ~HE CITY COUNCIL OF THE CITY OF SANTA
MOKICA DOES RESOLVE AS FOLLOWS:
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SECTION ~ All F.l.scal Year 1995-96 General Fund, Parks
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and Rec~eatlon Fund, and ~ORCA Fund approprlatlons, excluslve of
Federal or State grant appropr.l.at~ons, shall be adJusted to
actuals as determlned by the City's annual flnanc~al audlt as set
forth in the City's Fiscal Year 1995-96 Comprehens1.ve Annual
Financlal Report, ana the difference between the lesser of
$15,247,175 or actual expenditures and encumbrances subject to
11Tnltatlon as determ1.ned by the Clty'S annual financ~al audit as
set forth ~n the City's Fiscal Year 1995-96 Comprehenslve Annual
F~nanc~al Report for these Funds and the City's Flscal Year
1995-96 Gann Appropr~atlons Llmit, to the extent funds are
avallable, lS hereby approp~lated to reserve and/or designated
balance sheet accounts ln Lhese respective Funds.
SECTION 2. The City Clerk shall certify to the adoptlon
of thl.s Resolutlon, and thenceforth and thereafter the same shall
be In full force and effect.
APPROv~D AS TO FORM:
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if
~SHA JoNt MOUTRIE
Clty Attorney
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c
Adopted and approved thIS 25th of June. 1996
:\1ayor
I hereby certIfy that the foregomg ResolutlOn 9045 (CCS) was duly adopted at a meetmg
of the Cay CouncIl held on the 25th of June. 1996 by the followmg vote
Aves C ouncllmem bers Abdo. Genser. Greenberg. Holbrook. O'Connor.
Rosenstem
1\oes CounCllmembers Kone
Abstam Councllmembers None
Absent Councllmembers Ebner
ATTEST
~~;c~
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