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Councll Meeting. June 28, 1994 Santa Monica, Cal~fornia
JUN 2 8 1994
TO: MAYOR AND CITY COUNCIL
FROM: City Staff
SUBJECT: Recommendation to Approve Resolutions Establishing
the City's Gann Appropriations Limlt for FY 1994-95
and Appropriating FY 1993-94 Funds to Gann'ed Reserve
and/or Designated Balance Sheet Accounts
Introduction
ThlS report recommends approval of resolutions establishing the
City's Gann Appropriat~ons Limit for FY 1994-95 at $92,026,042
and appropriating available FY 1993-94 funds to Gann'ed reserve
and/or designated balance sheet accounts.
Gann Appropriations Llmit for FY 1994-95
On June 28, 1994, the City Council will be considering the
proposed City FY 1994-95 budget for adoption. In order to meet
legal requirements, the C~ty Councll must also formally adopt the
Clty'S Gann Appropriations Limlt for FY 1994-95.
Based upon Article XIIIB Appropriations Limit Uniform Guidelines
publlshed by the League of Californla Clties in March 1991, the
Clty'S Gann Approprlations Llmit of $92,026,042 for FY 1994-95
has been computed and made available to the public f~fteen days
prior to this meeting The FY 1994-95 limit has been computed
based on the following allowable increase factors: the annual
percentage change in the State Per capita Personal Income tlmes
JUN 2 8 1994
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the annual percentage population change for the City of Santa
Monica. Both factors were provJ..ded by the State Department of
Finance. Staff recommends that the Council approve the FY 1994-
95 limit based on these factors. The calculation of the City's
FY 1994-95 limit using these factors is detailed at Attachment A.
An appropriate resolution to establish the Clty's FY 1994-95 Gann
ApproprJ..ations LJ..mit at $92,026,042 is at Attachment B.
Comparison of Proposed FY 1994-95 Approprlations and Tax Proceeds
Subject to LimitatJ..on to the FY 1994-95 Gann LJ..mit
A comparison of the City's FY 1994-95 Gann Appropriations Limit
and FY 1994-95 approprlations and tax proceeds subject to
limJ..tatJ..on as set forth ~n the CJ..ty's proposed FY 1994-95 budget
(including recommended final changes) is as follows:
Proposed Gann-related Spendinq for FY 1994-95
TORCA
On-Gol.ng Overr~de Overr~de
Component + Compenent* + Component = Total
Gann Limlt: $55,754,274 $26,286,393 $9,985,375** $92,026/042
Appropriatl.ons
Subject to
Liml.tat~on*** 49,061,490 26/286/393 9,618,324 84,966/207
Net Under/(Over)$ 6/692,784 $ 0 $ 367,051 $ 7,059.835
* For PolJ..ce, Schools, BasJ..c CJ..ty Services and Other Specified
Purposes per City Charter
** Limlt reflects estimated 94/95 TORCA Tax proceeds and share
of interest earnings, and estJ..mated unexpended tax proceeds
as of 6/30/94.
*** In terms of receipt of tax proceeds, the City is $4,869,124
under its Gann LJ..mit.
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The above table ind~cates that ~n all components of the City's
total Gann Appropriations Lim~t, FY 1994-95 appropriations
subject to limitatl.on are equal to or less than the applicable
lim~t component.
Appropriation of AVa~lable FY 1993-94 Funds to Gann'ed Reserve
and/or Designated Balance Sheet Accounts
Under the provisions of Article XIIIB of the State Constitution,
a city ~s authorized to approprlate to reserve and/or designated
balance sheet accounts the difference between actual spending
(Le. expenditures and encumbrances) subJect to the Gann
Appropriatlons Limit and the C~ty's Gann Appropriat~ons Limit for
that fiscal year. This action can be accomplished by the City
Council passing a resolution to this effect. For FY 1993-94, an
appropr~ate resolutlon to accomplish this transaction has been
prepared and is at Attachment C.
By taklng this action, the Ci ty Council, in effect, subjects to
the FY 1993-94 Gann Appropriations Limit the funds so
appropriated to Gann'ed reserve and/or deslgnated balance sheet
accounts. Thus, the I1Gann'ed" monies become available to finance
carryover capital projects or for appropriation during FY 1994-95
and/or subsequent flscal years free of FY 1994-95 and/or
subsequent fiscal years' Gann limitat1ons.
As the follow~ng table ~ndicates, Council adoption of the
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resolution at Attachment C means that up to $17,557,917 of funds
which may be available at the end of the current fiscal year can
be "Gann' ed" .
Estlmated Actual Gann-related Spending for FY 1993-94
TORCA
On-Going Override Override
Component + component*** + component = Total
Gann L2m2t* $54,618,376 $25,750,852 $8,667,235**** $89,036,463
Estimated Actual
Spend~ng Subject
to Limitat2on** 45r470,031 25,750,852 257,663 71,478,546
Net Under/ (Over) $ 9,148,345** $ 0 $8,409.572 $17,557,917
* As adopted by the City Council on June 22, 1993.
** In terms of receipt of tax proceeds, the City is $6,849,069
under its Gann Limit.
*** For Police, Schools, Basic City Services and Other Specified
Purposes per City Charter.
**** LJ.m~t reflects estlffiated 6/30/94 fund balance which is
proceeds of taxes.
When the City's FY 1993-94 Comprehensive Annual Financial Report
is submitted to the Council this Fall, the F~nance Director will
report to the Council actual total FY 1993-94 spending and the
actual amount which the Council has appropriated to llGann'ed"
reserve and/or deslgnated balance sheet accounts.
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Budget/Financial Impact
Adopt~on of the attached resolution establishlng the Clty'S FY
1994-95 Gann Appropriations Limit does not have a
budget/financial impact. Adoption of the attached resolution
appropriating ava1-lable FY 1993-94 funds to "Gann'ed" reserve
and/or designated balance sheet accounts will enable the City to
continue to finance carryover capital projects and increase the
City's ability to respond to future service needs.
Recommendation
It is recommended that the attached resolutlons which establish
the C~ty's Gann Appropriations L~mit for FY 1994-95 at
$92,026,042 based on the allowable lncrease factors of the annual
percentage change in the State Per Capita Personal Income and the
annual percentage population change of the City of Santa Monica,
and which appropriate up to $17,557,917 of avallable FY 1993-94
funds to Gann'ed reserve and/or deslgnated balance sheet accounts
be approved.
Attachments
Prepared by: Mlke Dennis, Director of Finance
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ATTACHMENT A
CITY OF SANTA MONICA CALCULATION OF FY 1994-95
GANN APPROPRIATIONS LIMIT
FY 1993-94 TOTAL GANN APPROPRIATIONS LIMIT
Ongoing Component (Exclusive of $54,618,376
TORCA Override Component)
Pol~ce, Schools, BaS1C City Services
and Other Specified Purposes
Expendi t ure Override Ja) 25,750,852
Sub-Total $80,369,228 (b)
ADJUSTMENT FACTORS
Allowable FY 1994-95 Adjustment:
Californ~a Per
Capita Personal
Income Change (e) 1.0071 times
C~ty Pop. Change Ie; 1 0136
X 1.020797
Sub-Total $82,040,667
Plus FY 1994-95 TORCA Overr~de Component
{Per Section 2015B of City Charter} 'd) $ 9,985,375
FY 1994-95 TOTAL GANN APPROPRIATIONS LIMIT $92.026.042
(a) Override Approved by Clty voters on June 2, 1992.
(b) As adopted by C~ty Council on June 22, 1993, exclusive of
TORCA component
(c) Per State Department of Finance, May 2, 1994.
{d} Approved by City voters June 2, 1992; FY 1994-95 amount
reflects: a} estimated FY 1994-95 TORCA tax proceeds and
share of ~nterest earnings, and b} est~mated unexpended tax
proceeds as of 6/30/94.
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. .lI.TT_n.CfIMENT B
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CauDell Meetlng. Jane 28, 1994 Santa Manlea, Callforn:.a
RESOLUTION NO. 8774
(Clty Caunel~ Ser~es)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA ESTABLISHING THE
GANN APPROPRIATIONS LIMIT FOR THE
FISCAL YEAR 1994-95
WHEREAS, the Clty Council is :!:'"equlred under the
p:!:'"OV1Slons of Government Code Seetlon 7910 and Art.:cle XIIIB af
the Callforn~a Constltut:.on to establ:.sh ~ts appropriatlons limit
by resolutlon, and
WHEREAS, docum.enCatlon used :.n the deterrrunatlon of the
approprlatlons Ilml~ has been available to the publ.:e for flfteen
days prior to thlS meet:lng as requlred by Government: Code Sectlon
7910.
NOW, THEREFORE, THE CITY COliNC I ~ OF TEE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWSi
SECTION - For purposes of Artlcle XIIIB of the
Ca11fornia Constltution, the Cl t:y of Santa Monica approprlations
Ilene for the flseal year 1994-95 shall be 592,026,042.
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SECT:!:ON 2. Tr:e Clty Clerk shall certl.fv to :.he adoption
of ~he Resolut:,o:1, and ::henceforth ar:d thereafte~ the same shall
De ':":l full force and effect.
APPROVE:D AS TO FOR..."1
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~~SrtA JONES MOUTRIE
Clty Attorney
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Adopted and approved th1s 28th of June, 1994
tJM~~
] hereby certify that the foregomg ResolutIon 8774 (CCS) was duly adopted at a
meetmg of the CIty CouncIl held on the 28th of June, 1994 by the followmg vote
Ayes CouncIlmembers Abdo. Genser, Greenberg, Holbrook, Olsen.
Rosenstem, Vazquez
Noes CouncIlmembers None
Abstam Councllmembers None
Absent Councllmembers: None
ATTEST
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./ CIty Clerk
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Counc~l Meeting: June 28, 1994 Santa Monica, Californ~a
RESOLUTION NO. 6775
(C~ty Council Serles)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA APPROPRIATING FISCAL YEAR 1993-94
FUNDS TO GANN'ED RESERVE AND/OR DESIGNATED
BALANCE SHEET ACCOUNTS
WHEREAS, under the provisions of Art~cle XIIIB of the
Callforn~a Constltutlon, a Clty 18 authorized to approprlate to a
Gann'ed reserve and/or deslgnated balance sheet accounts the
dlfference between actual spending subJect to the Gann
Appropriations Limlt and the City's Gann Approprlatlons Limlt for
that flscal year; and
WHEREAS, appropriatlng avallable funds to Gann' ed
reserve and/or des~gnated balance sheet accounts is in the publlC
~nterest because establ~shment of Gann/ed reserve and/or
des~gnated balance sheet accounts ~ncreases the ab~lity of the
Clty Council to respond to the servlce needs of the c~tizens of
the Clty of Santa Mon~ca
NOW, THEREFORE, ':'HE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
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SECTION 1. All Fiscal Year 1993-94 General Fund, Parks
and Recreation Fund, and TORCA Fund appropriations, exclusive of
Federal or State grant appropriations, shall be adJusted to
actuals as determ~ned by the City's annual financ~al aud~t as set
forth ~n the C~ty's F~scal Year 1993-94 Comprehensive Annual
Financ~al Report, and the difference between the lesser of
$17,557,917 or actual expenditures and encumbrances subJect to
limitatlon as determined by the C~ty's annual financial audit as
set forth in the Clty'S Fiscal Year 1993-94 Comprehensive Annual
F~nanc~al Report for these Funds and the City's Fiscal Year 1993-
94 Gann Appropriations Lim~t, to the extent funds are available,
lS hereby appropriated to reserve and/or des~gnated balance sheet
accounts ~n these respective Funds.
SECTION 2. The Clty 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.
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MARSHA JONES MOUTRIE
City Attorney
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Adopted and approved tlus 28th of June, 1994
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I hereby certIfy that the foregomg ResolutIon 8775 (CCS) was duly adopted at a
meetmg of the City CouncIl held on the 28th of June, 1994 by the followmg vote:
Ayes Councllmembers Abdo, Genser, Greenberg, Holbrook, Olsen.
Rosenstem, Vazquez
Noes. Councllmembers None
Abstam Councllmembers None
Absent Councllmembers. None
ATTEST
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-- - ity lerk