SR-6A (9)
FIN:CMD:brjsrgannap 6-A
Councl1 Meeting: June 22, 1993 Santa Monica, California
JUN 2 ~ 1:1~3_
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TO: MAYOR AND CITY COUNCIL
FROM: Clty Staff
SUBJECT: Recommendatlon to Approve ResolutlOns Establlshlng the Clty'S Gann
Appropriatlons Llmit For FY1993-94 and Approprlatlng FY1992-93 Funds
to Gann'ed Reserve and/or Designated Balance Sheet Accounts
Introduct10n
Thl s report recommends approval of resolutlons establishing the City's Gann
Appropriat1ons Llm1t for FY1993-94 at 589,036,463 and approprlatlon of
available FY1992-93 funds to Gann'ed reserve and/or des1gnated balance sheet
accounts.
Gann Appropriat1ons Llm1t for FY1993-94
On June 22, 1993, the C1 ty Counci 1 will be cons i der1 ng the proposed City
FY1993-94 budget for adoption. In order to meet legal requirements, the City
Council must also formally adopt the City's Gann Appropr1 at lOns Limit for
FY1993-94.
Based upon Article XIIIB AppropnatlOns Lim1t Uniform Guide11nes released by
the League of Cal1fornia Cities in March 1991, the Clty'S Gann Appropriations
Llmlt of $89,036,463 for FY1993-94 has been computed and made ava,lable to the
pub 11 c f1 fteen days pnor to th1S meet1ng. The FY1993-94 limit has been
computed based on the fo 11 OWl ng all owabl e 1ncrease factors: the annual
percentage change 1 n the State Per Capita Personal Income times the annual
percentage populat,on change for the C,ty of Santa Monlca. Both factors were
prov1ded by the State Department of F1nance. Staff recommends that the
Counc,l approve the FY1993-94 11m1t based on these factors. The ca1cu1at1on
of the Clty'S FY1993-94 11mit uS1ng these factors is detailed at Attachment A.
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JUN 2 2 ~gJ3
An appropriate resolution to estab11sh the City's FY1993-94 Gann Appropr1atlon
Limit at $89,036,463 1S at Attachment B.
Compar1 son of Proposed FY1993-94 Appropri ations and Tax Proceeds Subject to
Limitat10n to the FY1993-94 Gann Limit
A comparlson of the Clty'S FY1993-94 Gann Appropriatlons Limit and FY1993-94
appropriations and tax proceeds subject to 1 imitation as set forth in the
C1ty'S proposed fY1993-94 budget (including recommended final changes) is as
follows:
Proposed Gann-related Spending for FY1993-94
TORCA
On-Go1ng Override Override
*
Component + Component + Component = Total
Gann Limit $54,618,376 $25,750,852 $8,667,235** $89,036,463
Approprl at ions
Subject to Limi-
tation 45,073,210 25,750,852 7,104,911 77,928,973
Net under/ $ 9,545,166***$
(over) -0- $1,562,324 $11,107,490
* For Pollee, Schools, Basic C1ty Services and Other Specified Purposes per
Clty Charter.
** L lmlt reflects estimated 93/94 TORCA Tax proceeds and share of interest
earn1ngs, and estimated unexpended tax proceeds as of 6/30/93.
*** In terms of receipt of tax proceeds, the Clty is $9,810,669 under 1tS Gann
L1mlt.
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The above table i ndi cates that in all components of the C 1 ty' s total Gann
Approprlations Limit, FY1993-94 appropriations subject to limitation are equal
to or less than the app11cable limit component.
Appropriat1on of Ava il abl e FYl992 - 93 Funds to Gann'ed Reserve and/or
Designated Balance Sheet Accounts
Under the provisions of Article XIIIB of the State Constitution, a city 1S
authorlzed to appropriate to reserve and/or deslgnated balance sheet accounts
the dl fference between actual spendlng (i . e. expendltures and encumbrances)
subject to the Gann Appropriat10ns Llmlt and the c1ty'S Gann Appropnat10ns
L lmlt for that f i sca 1 year. Th1S actlon can be accomplished by the C1ty
Counc11 pass1ng a resolutlOn to this effect. For F'(l992-93, an appropri ate
resolutlon to accompllsh thlS transaction has been prepared and is at
Attachment C.
By taklng thlS action, the City counc1l, In effect, subjects to the FY1992-93
Gann Appropr1at1ons Lim1t the funds so appropr1ated to Gann'ed reserve and/or
deslgnated balance sheet accounts. Thus, the "Gann'ed" mom es become
avallable to f1nance carryover capltal projects or for approprlatlon dur1ng FY
1993-94 and/or subsequent fi scal years free of FYl993-94 and/or subsequent
f1scal year's Gann llm1tat1ons.
As the fo 11 OWl ng table lnd1cates, Counc11 adopt1on of the resolutlon at
Attachment C means that up to $12,644,638 of funds which may be avallable at
the end of the current flscal year can be "Gann'ed".
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Estimated Actual Gann-related Spendlng for FY1992-93
TORCA
On-go1ng Overn d~ Override
**
Component + Component + Component = Total
Gann Llmit* $S2t401,789 S24JOS,800 $6,577,245**** $83,684,834
Estlmated Actual
Spending Subject
to Limitatlon 46,334,396 24J05,800 -0- 7l ,040, 196
Net Under/{Over) $ 6,067,393** S -0- $6,577,245 $12,644,638
* As adopted by the C1ty Councll on June 23, 1992.
** In terms of receipt of tax proceeds, the clty 1S $6,676,019 under 1ts
Gann Limi t.
*** For Po11ce, Schools, Basic Clty Services and Other Speclfied Purposes
per City Charter.
**** Llm1t refl ects estimated 6/30/93 fund balance Wh1Ch proceeds of
1S
taxes.
When the C1ty'S FYl992-93 ComprehenslVe Annual Flnanclal Report 1S subffiltted
to the Counc11 th1S Fall, the F1 nance 01 rector w11l report to the Councll
actual total FY1992-93 spend1ng and the actual amount wh 1 ch the Counc11 has
appropriated to "Gann'ed" reserve and/or des1gnated balance sheet accounts.
Budget/F1nanc1al Impact
Adopt1on of the attached resolut1on establishlng the City's FY 1993 - 94 Gann
Appropr1ations L1m1t does not have a budget/financlal lmpact. Adoptlon of the
attached resolutlon appropriat1ng ava11able FY1992-93 funds to "Gann'ed"
reserve and/or des1gnated balance sheet accounts wi 11 enable the C1ty to
contlnue to flnance carryover capltal proJects and increase the City's abl11ty
to respond to future serVlce needs.
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Recommendatlon
It is recommended that the attached resolut1ons which establish the City's
Gann Approprlations Limit for FY1993-94 at $89,036,463 based on the allowable
1 ncrease factors of the annual percentage change in the State Per Cap ita
Personal Income and the annual percentage popu 1 at 1 on change of the City of
Santa Mon1ca, and which appropr1ate up to $12,644,638 of ava11able FY1992-93
funds to Gann'ed reserve and/or designated balance sheet accounts be approved.
Attachments
Prepared by: Mike Denn1s, Director of F1nance
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Attachment A
CITY OF SANTA MONICA CALCULATION OF FY1993-94
GANN APPROPRIATIONS LIMIT
FY1992-93 GANN APPROPRIATIONS LIMIT
Ongoing Component (a) (Exclus1ve of
TORCA Overrlde Component) $52,401,789
Pollee, Schools, BaS1C City SerVlces
and Other Spec1fled Purposes
Expend1ture Override (b) 24,705,800
Sub-Total S77, 107,589
ADJUSTMENT FACTORS
Allowable FY1993-94 Adjustment:
Cal1fornla Per
Cap1ta Personal
Income Change (c) 1. 0272 t 1 roes
C 1 ty Pop. Chg. (c) 1.0147 --
1. 04229984 x 1.04229984
Plus FY1993-94 TORC~ Overr1de Component $80,369,228
(Per Section 20158 of Clty Charter) (d) 8,667,235
FY1993-94 TOTAL GANN APPROPRIATIONS LIMIT $89,036,463
(a) As adopted by Clty Counc11 on June 23, 1992.
(b) Approved by Clty voters on June 2, 1992.
(c) Per State Department of F1nance, Apr11 30, 1993.
(d) Approved by City voters June 2, 1992; amount reflects: a) est1mated
FY1993-94 TORCA tax proceeds and share of interest earn1ngs, and b)
estimated unexpended tax proceeds as of 6/30/93.
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ATTACHMENT B
FIN CMD:br/srgannap
Counc11 Meet1ng: June 22, 1993 Santa Monlca, Callforn1a
RESOLUTION NO. 8610(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 1993-94
WHEREAS, the City Council is required under the prov1s1ons of
Government Code Sectlon 7910 and Art1cle XIIIB of the cal1fornla Constitution
to establlsh 1ts approprlatlons 11mit by resolut10n; and
WHEREAS, documentatlon used in the determinatlon of the
appropriatlons l1m1t has been ava1lable to the public for fifteen days prlor
to th1S meet1ng as requ1red 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 Art1cle XI lIB of the Ca 1 Harm a
Const1tut1on, the C 1 ty of Santa r~om ca appropri at 1 ons 11mlt for the fl seal
year 1993-94 shall be $89,036,463
SECTION 2. The City C1 erk shall cert i fy to the adopt 1 on of the
Reso1utlon, and thenceforth and thereafter the same shall be ln full force and
effect.
APPROVED AS TO FORM:
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~EPH~AWRtNCE
A 1ng City Attorney
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Adopted and approved this 22nd day of June, 1993.
j);,ff ;f,l
I hereby certify that the forego~ng Resolut~on No 8610(CCS)
was duly adopted by the City Council of the City of Santa Mon~ca
at a meet:Lng thereof held on June 22, 1993 by the following
Council vote:
.~yes Counc~lmembers: Abdo, Genser, Greenberg,
Holbrook, Rosenstein, Vazquez
Noes: CounC:Llmernbers: None
Abstain: Councilmembers: None
Absent Counc:Llmembers: Olsen
ATTEST:
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h~lw EM~
-------- C:Lty Clerk
.
ATTACHMENT C
FIN:CMD:br/srgannap
Counc1l Meetlng: June 22, 1993 Santa Mon1ca, Ca11fornla
RESOLUTION NO. 8611(CCS}
(City Counc11 Ser1es)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA APPROPRIATING FISCAL YEAR 1992-93 FUNDS TO GANN'ED
RESERVE AND/OR DESIGNATED BALANCE SHEET ACCOUNTS
WHEREAS, under the provls1ons of Article XIIIB of the Cal1fornla
Constltut10n, a C1ty lS author1zed to approprlate to a Gann/ed reserve and/or
deslgnated balance sheet accounts the dlfference bet~'ieen actual spend1ng
subject to the Gann ApprOprlatlOns L1mlt and the Clty'S Gann ApprOprlat1ons
L1mit for that f1scal year; and
WHEREAS, approprl at 1 ng avallable funds to Gann'ed reserve and/or
designated balance sheet accounts 1 S ln the publlC 1nterest because
establ1shment of Gann'ed reserve and/or des1gnated balance sheet accounts
lncreases the ab111ty of the Clty Councll to respond to the serVlce needs of
the clt1zens of the C1ty of Santa Mon1ca.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE AS FOLLOWS:
SECTION l. All Fl sea 1 Year 1992-93 General Fund. Parks and
Recreat10n Fund. and TORCA Fund appropr1at1ons, excluslve of Federal or State
grant approprlat1ons, shall be adjusted to actuals as determ1ned by the C1ty'S
annua 1 flnanc1al aud1t as set forth ln the Clty'S Flscal Year 1992-93
Comprehens1ve Annual Flnanc1al Report. and the d1fference between the lesser
of 512.644,638 or actual expendl tures and encumbrances subject to llml tat 1 on
as determlned by the Clty'S annual flnanc1al aud1t as set forth ln the Clty'S
~
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. F1scal Year 1992-93 Comprehens1ve Annual F1nanc1al Report for these Funds and
the C1ty'S F1scal Year 1992-93 Gann Appropr1at1ons Llmit, to the extent funds
are avallable. 1 s hereby appropn ated to reserve and/or deslgnated balance
s~eet accounts 1n these respectlve Funds.
SECTION 2. The Clty Clerk shall cert 1 fy to the adopt 1 on of th1 S
Resolutlon, and thenceforth and thereafter the same shall be 1n full force and
effect.
APPROVED AS TO FORM:
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Adopted and approved thlS 22nd day of June, 1993_
~ if,G
M r
I hereby certlfy that the foregolng Resolutlon No 8611(CCS)
was duly adopted by the Clty COUDCll of the City of Santa Monlca
at a meeting thereof held on June 22, 1993 by the following
COUDCll vote:
Ayes Councllmembers: Abdo, Genser, Greenberg,
Holbrook, Rosensteln, Vazquez
Noes: Councllmembers None
Abstaln Councllmembers: None
]l.b s en t : Councllmembers: Olsen
ATTEST
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~~;~n .L1~
---- ~ ci ty Cl erk I