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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 -1- C!C/flA/RA/PA-3 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. -2- 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 -3 - 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. -4- 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 -5- ---- ~- 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 -- - -- ------- - ~ 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. -7- ".. 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 -8- , ~ 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: -9- ----- r SECTION ~ All F.l.scal Year 1995-96 General Fund, Parks - 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: .~~~~ if ~SHA JoNt MOUTRIE Clty Attorney -10- -- .. . 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~ - -"