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SR-6C (51)~~~ ~-~a~ ~ - ~ 9~~'0 ~~~r z 3 ~ FIN CMD VfIF IFINANCEIBUDGETIOBBUDftEV198991FINALCHGISRGANNAP 99 Cauncd Meeting June 23, 199$ San#a Monica, Cal~forn~a TO MAYOR AND CITY C~UNCIL FROM C~ty S#aff SUBJECT Recommendation to Approve Resalut~ons Es#abl~sf~mg the City's Gann Appropnat~ons Limit for FY 1998-99 and Apprapriat~ng FY 1997-98 Funds to Gann'ed Reserve and/or Designated Balance Sheet Accounts I ntrod uct~an This report recammends appro~al of resalutions establishing the City's Gann Appropnatians Limit for FY 1998-99 at ~11~,747,409 and appropnat~ng ava~lable FY 1997-98 funds to Gann`ed reserve andlor designated balance sheet accounts Gann A~aropnat~ons Lrrnit for FY 1998-99 On June 23, 1998, the City Council wili be considering the proposec~ City FY 1998-99 budget far aclopt~or~ !n Qrder to meet legal requ~reme~ts, the C~ty Counc~l m~ast also formally adopt the City's Gann Appropriations LimEt for FY 1998-99 Based upon Article X111B Ap{~ropriat~ons L~mit Uniform Guidelines publ~shed ~y the League of California Ci#ies in March 1991, the City's Gann Appropr~ations Limit of $110,747,4D9 for FY '~998-99 has been computed and made available to the public fifteen days prior to this meeting Ti~e FY 1998-99 lim~t has been camputed based on the following allowab~e increase factors the annual percentage change i~ the State Per Gapita Persanal Income #imes the annual percentage papulation change for the City ~..~ -1- JUN 2 3 ~ Both fac#ors were pro~ided by the State Department of Finance Staff recommends that the Council appro~e the FY 1998-99 limit based on these factors The calculafion of the City's FY 199$-99 limit using these factors is detatlecf at Attachment A An appropriate resolution to establish the City's FY 1998-99 Gann Appropriat~ons Limit at $11 Q,747,409 ~s at Attachment B Compar~son of the FY i 998-99 Gann ~im~t #o the Pro~osed FY 1998-99 Ac~nro~riat~or~s and Tax Praceeds Subiect ta Limitation A comparison of the City's FY 1998-99 Gann Appropnations Lim~# and FY 1995-99 apprnpriations and tax proceeds sub~ECt to lim~tation as set forth in the City's Proposeci FY 1998-99 Budget (includmg recommended f~nal changes} is as follows Proposed Gann-related Soend~na for FY 1998-99 TORCA On-Going O~erride Override Comoonent + Component~` +~ Companent = Total Gann Limit $69,Q00,880 $29,801,654 $11,944,575** $110,747,409 Appropnatians Sub~ect to Limitation*""" 55.08~.741 29,801.654 9,099,584~`*** 93.982.975 Net Under/{Ower} $13,919.~39 $ 0 $ 2,845,295 $ 16.7fi4,434 * ~or Police, Schoals, Basic City Services and Ot her Specife~ Purposes per City Charter ~* Limit reflecfs est~mated FY '~ 998-99 TORCA Tax proceeds and share of ~nterest earn~ngs, and estjmated unexpended tax proceeds as of 6/30/98 *** In terms of receipt of tax proceeds, #he City is $1,269,873 under its Gann LEmit *'~** Cansists ~f FY 1997-98 appropriations subJect to iimitation reappropnated to FY 1998-99 plus new FY 1998-99 a~propnations sub~ect to lim~tat~on -2- The above table indicates that in all components of the City's total Gann Ap~ropr~ations Limit, FY 1998-99 appropriations sub~ect to [imitatior~ are equal to or less than #he applicable limit component Appropnation of A~ailable FY 1997-98 Funds to Gann'ed Reserve and/or Designated Balance Sheet Accounts Urrder the prov~s~ons of Art~cle XIlIB of the State Const~t~tion, a cfty ~s author~zed to appropriate #o reserve andlor desEgnated balance sheet accounts the difference between actual spending (i e expenditures and encumbrances) su~~ect to the Gann Appropriations L~mit and the City's Gann Appropriat~ons Limit far that fisca! year Th~s action can be accamplished by the City Council passing a resolutian to th~s effect Far FY 1997-98, an appropriate resolutian to accomplish this ~ransaction has been preparEd and ~s at Attachment C By taking thES action, the City Council, m effect, sub~ects ta the FY 1997-98 Gann Appropriations Limit the funds so appropriated to Gann'ed reserve andlor designated balance sheet accounts Thus, the "Gann'ed" manies b~come ava~lable to finance carryover capital pro~ects or for approprEation during FY 199$-99 and/or subsequen# fiscal years fr~e of FY 1998-99 andlor subsequent fiscal years' Gann I~mitations /~s the faliowing table ir~dicates, Council adoption af ti~e resalutron at Attachment C means that u~ to $20,328,fi17 af "un-Gann'ed" funds which may be available at the end of the current fiscal year can be "Gar~n'ed" -3- Estimated Actual Gann-related Sqendina for ~Y 1997-98 TO RCA On-Going O~erride OverrEde Companer~t + Companent*** + Component = Total Gar~n Lrmit'" $6~.285,223 $28,'i96.853 ~11,617,399 $'i05,099,~F7~ Estimated Actual Spending Sub~ect to Limitation** 56.3fi0.175 28.196.853 213.830 84,770.858 Net Underl(O~er} $ 8,92~.p48 $ 0 $11.403.569 $ 20.328,617 ~` As adapted by the City Counc~l on June 24, 1997 ~* In terms of receipt of tax proceeds, the City is $3,699,686 under its Gann Limit **~ For Pol~ce, Schools, Basic City Services and Other SpecE~ied Purpases per City Charter When the Ciiy's FY 1997-98 Comprehens~~e Annual Financial Report is submitted to the Council this Fall, the Finance Director wtll report ta the Council actual ta#al FY 1997- 9$ spending and the actual amount which the Council has appropriated to "Gann'ed" reserve and/or destgnated balance sheet accounts Sudaet/Financial Imaact Adaption of the attached resolutian sstablishing the C~ty's FY 1998-99 Gann Appropriations Limit dves not ha~e a budgeUfinanc~al impact Adoption of the attached resolution appropria#ing availab6e ~Y 1997-98 funds to "Gann'ed" r~ser~e andlor -4- designated balance sheet accounts will enable the City to cantinue to finance carryover capital pro~ects and increase the City's ab~fity to respond #o future serW~ce needs Recommendation It is recommended that the attached resolut~ons which establish the City's Gann Appropriations Limit for FY 1998-99 at $110,747,409 based on the aiiowable increase tactors o~ the ar~r~ual percentage c#~ange f~ the State Per Cap~ta Persar~al Income and the annual percentage population change af the City and which a~propriate up to $20,328,617 of available FY 1997-98 funds ta Gann'ed reserve anc!!ar designated balance sheet accounts be appro~ed Attachments Prepared by Mike DennES, Director of Finance -5- ATTACHMENT A CITY OF SANTA MONICA CALCULATION OF FY 1$98-9$ GANN API~ROPRIATIONS LIMIT FY 1997-98 GANN APPROPRIATIONS L1M1T Ongoing Component {Exclusive of TORCA ~~ernde Comportent){ar Police, Schools, Basic C~ty Services and Other Specif~ed Purposes ExpendrturE O~ernde1e' ADJUSTM~NT FACT~RS Allawabfe FY 1998-99 Ad~ustment• Califarnia Per Capita Personal Incorne Change"`' City Pop Change``' Subtotal 1 0415 times 1.0148= Pl~s FY 199$-99 TQRCA Override Component (Per Section 2015C qf Cit~+ Charter~d') FY 1998-99 TOTAL GANN APPROPRIATIONS L1MIT (a) As adopted by C~ty Council on June 24, 1997 ~ 65,285,223 28.196,853 $ 93,482~076 x 1 0569142 S 98.802.534 ~ 1,944,$75 $ 1 1 p~747,409 (b) O~erride appro~ed 6y City ~oters March 26, 1996, exclus~ve of TORCA companent, increased by allowable adaustment factors ~c) Per State Dapartment of Finance, May 1~~ 99$, State law permits a C~ty to use its annual CEty population change or the annual population change of the caunty in which the City is located. {d} Appro~ed by City voters March 26~ 7 99fi, FY 1998-99 amount reflects. a) estimated FY 1998-99 TORCA tax praceeds and share of mterest eam~ngs, and b) est~mated unexpended tax praceeds as of 6/30198 -6- E" ~ ATTACHMENT B FIN CMD sdlsrgannap Council Meefing June 23, 1998 RESOLUTION NO. 9279 (City Council Seriesy Santa Mornca, Cal~fornia A RESOLUT[ON OF THE CITY COUNCIL OF THE CITY QF SANTA MQNICA ESTABLISHING THE GANN APPROPRIATIONS LtM1T FOR THE FISCAL YEAR 1998-99 WHEREAS, the City Counal as required under the provESions of Go~ernment Code Section 79'~0 and Article XIIIB of the CaE~#ornia Constit~tion to estabfish ~ts appropnations limit by resolution, and WHEREAS, documentation used in the determ~nation of the appro~rEatians Itmit has been available #o the public for fifteen days prior to this meet~ng as reqwred by Go~ernment Code Section 7910 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONlCA DQES RES~LVE AS FOLLOWS, SECTION 1 For purposes of Art~cle XEiIB of t~e Califorr~ia Constitution, the City af Santa Monica apprapriat~ons fimit for the fiscal year 1998-99 shafl be $11Q,747,409 _7_ SECTI~N 2 T#~e City Clerk shall cert~fy to th~ adapt~an of the Resolution, and thencefart~ and #hereafter the same shall be in ful~ force and effect APPROVED AS TO FQRM r jti ^ ' ~~ ~; 1,l,c~ f L~.~` MARSHA JO ~ ES MOUTRIE City Attorney -8- ! . Adopted and approved this 23rd of June, 1998 z~~~~- ~ Robert Holbrook, Mayar I, Maria M Stewart, C~ty Clerk of the City af Santa Monica, do hereby certify that the faregoing Resolutian 9279 (CCS} was duiy adopted at a meetmg af the Santa Monica City Council held on the 23rd of June, 1998 by the following vote Ayes Councilmembers Ebner, Femstein, Genser, Greenberg, Holbrook, ~'Connor, Rosenstein Noes Gouncilmembers None Abstain Couneilmembers None Absent Counciimembers None ATTEST ~c~~~~,.~~. r i - ~ Beth Sanchez, Assistant City Clerk ATTACHMENT C FIN CMD sdlsrgannap Cauncil Meeting June 23, 1998 Santa Monica, California RESOLUT[ON NO. 9280 {City Council Series~ A RESOLUTEON OF THE CITY COUNCIL OF THE CITY OF SANTA MQNICA APPROPRIATING FISCAL YEAR 1997-98 FUNDS TO GANN'ED RESERVE ANDIOR DESIGNATED BALANCE SHEET ACCQUNTS WHEREAS, under the provisions of Article XIIIB of the Californ~a Constitut~on, a city is aU#horized to appropria#e to a Gann'ed reserve and/or designated bafance sheet accaunts the ci~fference between actual spendmg sub~ect to #he Gann Appropriations Limit and the City's Gann Appropr~at~ons Limit for that fiscal year, and WHEREAS, appropriating available funds to Gann'ed reserve and/or designa#ed balance sheet accounts ~s ~n the public interest because establishment of Gann'ed reserve andlor designated balance sheet accounts ~ncreases the ability of the City Council to respand to the service needs of the citizens of the City of Santa Monica NOW, THEREFORE, THE CITY COUNCIL OF THE CETY OF SANTA MONICA DOES RESOLVE AS FOLLOWS -9- SECTION 1. A11 Fiscal Year 1997-98 General Fund, Parks and Recreation Fund, and TORCA Fund appropriations, exclusive of Federal or State grant approprEatio~s, shall be ad~usted to actuals as determined by the C~ty's annual financial a~dit as set forth ir~ the City's F~scal Year 't997-98 CornprehensEVe Annual Firtancial Report, and the di~Ference between the lesser of $2D,328,fi17 vr actual expenditures and encumbrances sub~ect to Iemitation as determined by the City's annual financial audit as set forth in the City's Fiscaf Year 1997-98 Comprehensive Annual Financial Report for #hese Funds and ~he Ci#y's FiscaE Year 1997-98 Gann ApproPnations L~mit, to the ext~nt funds are availabie, ~s hereby appropriated to reserve and/or designated balance sheet accounts in these respect~ve Funds SECTION 2 The City Clerk shall certify to the adoption of tF~is Reso[ution, and #henceforth and thereafter the same shall #~e in full force ~nd effect APPROVED AS TO FQRM ,~~~.e,~-~l~ l~u-~ MARSHA .7~IVES MOUTRiE Ci#y Attorney -10- 4 Y Aclo~ted and approved #h~s 23rd of June, '1998 i~ Robert Hol~rook, Mayar ~, Mar~a M Stewart, C~ty Clerk of the C~ty of Santa Monica, do hereby cert~fy that the foregoEng Resolut+on 9280 (CCS} was duly adoptec} at a meet~ng of the Sar~ta Mvn~ca C~ty Council held o~r the 23rd o~ Jur~e, 9 998 by the follow~r~g Wate Ayes Cauncilmembers Noes Counc~imernbers Absta~n Councilmembers Absent Cauncilmembers Ebner, Feinstein, Genser, Greenberg, Holbrook, O'Connor, Roser~ste:n ~lane None None ATTEST ~ L~ / v ~ ~ Bet~ Sanchez, Assistant C~ty Clerk