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SR-201-004 (4) e 12Ev-b 6-(;. '2 pi r ?loLl JUN 2 8 1988 Council Meeting: June 28, 1988 Santa Monica, California TO: Mayor and City Council FROM: city Staff SUBJECT: Revised Staff Report for Item 6-G The attached revised staff report reflects final Council action on the FY 1988-89 budget. The only change is to the table on the second pages of the staff report. R&(ISe'~ /" (JI- 6- JUN 2 8 lQ88 e ~"e;h 0-6 ~N 281988 FD:MD:ak:srgannap Councll Meetlng: June 28, 1988 Santa Mon1ca, Californla TO: MAYOR AND CITY COUNCIL FROM: City Staff SUBJECT: Recommendatlon to Approve Resolutions Establ1sh1ng the C1ty'S Gann Appropriations Llm1t For FY 1988-89 and Appropnating FY 1987-88 Funds to Gann Reserve Accounts Introduction ThlS report recommends approval of resolutions establishing the City's Gann Appropriations L1mit for FY 1988-89 at $50,896,388 and appropriatlon of available FY 1987-88 funds to Gann reserve accounts. Gann Appropriatlons Llmit for FY 1988-89 On June 2L 1988, the City Council adopted the City's FY 1988-89 budget. In order to meet legal requirements, the City Councll must also formally adopt the City's Gann Approprlatlons Lim1t for FY 1988-89. Based upon the lnstructlons provided by the State of Cal1fornia Department of Flnance, various clarifying gU1delines, and reflecting the results of the June 7, 1988 election, the C1ty'S Gann Appropr1ations Limit of 550,896,388 for FY 1988-89 has been computed and made available to the publlC for fifteen days prlor to this meeting. The calculation of the llm1t 15 detailed at Attachment A. A comparison of the C1ty'S FY 1988-89 Gann Approprlat10ns L1mlt and FY 1988-89 appropriations subject to 11mitation as set forth In the C1ty'S adopted FY 1988-89 budget 1S as follows: ,&"/J:~~ 6-6 JUN 2 8 1968 e e Cap1 ta 1 Improvements Pol1ce and Outlays TORCA On-Going Overrl de Overn de Overr1de Component + Component + Component + Component = Total Gann L 1 ml t $35,193,788 $ 6,000,000 $ 9,500,000 $ 202,600 550,896,388 Appropn at ions Subject to Llm1ta- 34,107,925 3,903,393 2,076,627 29,810 40,117,755 tlon Net under/ $ 1,085,863 $ 2,096,607 $ 7,423,373 $ 172, 790 $10,778,633* (over) *It should be noted that whlle this is the amount by Wh1Ch the C1ty lS under the Gann Limit on the expenditure slde, the City 1S under the 11mit by $6,875,420 on the revenue side. The above table indlcates that 1n all components of the Clty'S total Gann Appropriat1ons Limit, FY 1988-89 appropriations subject to limitation are less than the applicable l1mit component. An appropriate resolution to establish the City's FY 1988-89 Gann Appropriations Limit at $50,896,388 is at Attachment B. Appropriat1on of Available FY 1987-88 Funds to Gann Reserve Accounts Under the provisions of Article XIIlB of the State Constltutlon, a city 15 authori zed to appropri ate to reserve accounts the d 1 fference between actual spend1ng (i.e. expend1tures and encumbrances) subJect to the Gann Appropriations Limit and the City's Gann Appropriations Limit for that fiscal year. This act10n can be accompl1shed by the City Councll passing a resolution to thlS effect. For FY 1987-88, an appropriate resolutlon to accomplish this transact10n has been prepared and is at Attachment c. e e By tak1ng th1S actlon, the City Council, 1n effect, subjects to the FY 1987-88 Gann Appropriat10ns Lim1t the funds so appropriated to Gann reserve accounts. Thus, the "Ganned" monles in the reserve accounts become ava1lable to f1nance carryover capltal proJects or for appropr1at1on during FY 1988-89 and/or subsequent f1 seal years free of FY 1988-89 andjor subsequent f1 $cal year's Gann limitatlons. As the follow1ng table lndicates, Council adopt1on of the resolution at Attachment C means that up to $4,710,336 of cash whlch may be ava11able at the end of the current f1scal year can be "Ganned". Estimated Actual Spend1ng Results for FY 1987-88 Pollce Capital TORCA On-go1ng Override ProJect Overrlde Component + Component + Component + Component = Total Gann Limit $33,501,175 $ 4,461,756 $ 3,904,037 $ 111,456 S41,978,424 Estimated Actual Spending Subject to Lim1tation 29,483,195 3,854,938 3,904,037 25,918 37,268,088 Net underj (over) S 4,017,980 $ 606,818 $ -0- S 85,538 $ 4,710,336* *Under by $1,665,163 on the revenue side. When the Clty'S FY 1987-88 Comprehenslve Annual F1nanclal Report 1S submitted to the Council this Fall, the Finance Director wl11 report to the Counc1l actual total FY 1987-88 spending and the actual amount WhlCh the Councll has appropr1ated to "Ganned" reserve accounts. - e Budget/F1nancial Impact Adoptlon of the attached resolution establishing the City's FY 1988-89 Gann Appropr1ations Limit does not have a budget/flnancia1 impact. Adoptlon of the attached resolution appropr1atlng ava1lable FY 1987-88 funds to "Ganned" reserve accounts will enable the City to continue to finance carryover capital projects and increase the City's ability to respond to future serVlce needs. Recommendatlon It lS recommended that the attached resolut10ns Wh1Ch establ1sh the C1ty'S Gann Appropriat1ons L1m1t for FY 1988-89 at $50,896,388 and Wh1Ch appropriate up to $4,710,336 of avallable FY 1987-88 funds to Ganned reserve accounts be approved. Attachments Prepared by: Mike Dennis, Dlrector of Finance - e ATTACHMENT A CITY OF SANTA MONICA CALCULATION OF FY 1988-89 GANN APPROPRIATIONS LIMIT FY1987-88 TOTAL GANN APPROPRIATIONS LIMIT On-Go1ng Component (a) Pol1ce Overr1de Component (b)(a) Capital Improvement and Outlays Overrr1de Component (b)(a) FY1987-88 Gann Llmlt (Exclus1ve of TORCA Component) $ 33,501,175 4,461,756 3,904,037 S 41,866,968 ADJUSTMENT FACTORS Allowable FY1988-89 AdJustment (c) CPI Change 1.0393 t1mes Clty Pop. Chg. 1.0108 = 1. 050524 x 1. 050524 Sub-Total $ 43,982,255 Override Component Increases Approved by the voters, June 7, 1988: Police Override Component +S 1,312,818 Capital Improvements and Outlays Component +$ 5,398,715 Plus FY1988-89 TORCA Override Component (Per Section 2015 of City Charter) (d) 202,600 FY1988-89 TOTAL GANN APPROPRIATIONS LIMIT S 50,896,388 Consisting of the Following Components: On-going Component S 35,193,788 Police Override Component(e) S 6,000,000 Capltal Improvements and Outlays Override Component(e) S 9,500,000 TORCA Overrlde Component(e) S 202,600 (a) Adopted by Clty Counc11 on 6/23/87. (b) Approved by the voters in Nov. 1984; spec1flc FY1987-88 amounts adopted by the Clty Councll on 6/23/87. (c) Per State Department of Finance, May 1, 1988. (d) Approved by the voters June 1988; spec1flc FY1988-89 amount per adopted FY1988-89 Budget. (e) Approved by the voters June 1988. t""l co - o ~ -- 0'1 II) G) u c:: ~ ~ ~ "'0 ~ o :tl > ~ 0,) u ~ ~ oJ o t: >.. (:) c::: ~ o ...... ~ -< ~ nl .c. ..... VOTE: Affirmative: Negative: Abstain: Absent: PROOF vOtE~ WITH ANOTHER PERSON BEFORE A~~THING uISTKIBliTiuN;ORIGiNAL ~o be signed, sealed and ~11ed in Vault, - , , e ~EFORE DISTRIBUTION CHECK CONTENT OF ALL DISTRIBUTION OF RESOLUTION , ~~ ~~ ;~!If! G~ G-- IV t" 7--0 <- '- Council Meeting Date Agenda Item * Was it amended? e FOR CITY C~ERK'S ORDINANCE 1# ACTION Introduced: Adopted: AIJ'lAYS PUBLISH AOOP l',till ORDINANCES '* *Cross out Attorney I s approval NEWSPAPER PUBLICATION (Date~ ) Pepartment orlglrtating staff report ( '* ) *Cl. ty Attorney does not want copies of his o~ces or resolutl.ons. td.anagement SerVr,1-.;e? Lynne Bar,rette urd1nances only Agency mentloned in document or staff report .lI " (certifIed ?) Subject file (agenda packet) 1 o the r s -: (Review for c1ep<u: tilW3l1ts who need to knc:7w) . Counter file 1 A1rport Parking Auth. "'d 0,) Aud1torum ~ \I) ~ Building Dept. cr' Q) ~ Cu.lllll..1J'ri.ty and Econcmic Dev. Q) u Finance I ~4 4-1 4-1 Fire o Personnel Planning Police (en- forcement?) Purchasing Recr/Parks t/l General Servo - >. Ci.l ~ 1-0 o ~ +-l < >- +-l ,...( U Transportat1on Ltbrary Treasurer Manager SEND FOUl'. COP lES OF ALL ORDINANCES TO: COD~D SYSTEMS, Attn PetelrMaclearie l:.O J.1iiin- .rtr~et ~ . Avri'f ~~w Jersey_02717 . SEND FOUR COPIES OF AT.T._ OHDINANr._P.5 ~tO: ~~bzp ~yr1ck . SAN'fA MONICA MUNICIPAL COURT " 725 MAIN STREB'!;. Room 118 SANTA MONICA CA 90401 . ' ....., o to +-> $-0 l1> .a o cG . *Check COde Secticns befor;::: <..,=;nd 1 TOTAL COPIES 3 -- .. ATTACHr~ENT B -'"" FD:CMO:gp:srgannap Councll Meet,ng: June 28, 1988 Santa Mon1ca, Cal1fornia RESOLUTION NO. 7644 (CCS) (C,ty Councll Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1988-89 WHEREAS, the City Council 1S required under the prov1sions of Government Code Sectlon 7910 and Article XIIIB of the Californ1a Constitut1on to establish its approprlations limlt by resolution; and WHEREAS, documentatlon used In the determlnation of the appropriations limit has been avallable to the publ1C for f1fteen days prlor to this meeting as requ1red by Government Code'Sect1on 7910, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS; SECTION 1. For _purposes of Artlcle XIIIB of the Cal1fornla Constitution, the C1ty of Santa Monica appropnat1ons limlt for the fiscal year 1988-89 shall be $50,896,388. SECTION 2. The City Clerk shall certlfy to the adoptlOn of the Resolut1on, and thenceforth and thereafter the same shall be ln full force and effect. APPROVED AS TO FORM: ~~.~ ROBERT M. ~ty ERS - U C,ty Attorney t""l co - 01 '" ..... 0'1 In CJ U c: ~ c: ... "'0 ~ o lU > .... Q) U Q) s... ~ o c: >- C,) c: s... o ... ..... <( ..... <<l .c ..... ~ Q) ;oJ III Q) =' C" ClJ \..0 Q) U ..~ .... ~ o VOTE: AffirmatIve: Negative: Abstain: Absent: PROOF vOtE~ WITH ANOTHER PERSON BEFORE Af\,r'''THING uISTKIouTIvN; uKIGINAL LO oe signea, ~ealed ~nd ~iled In Vault e BEFORE DISTRIBUTION CHECK CONTENT OF ALL DISTRIBUTION OF RESOLUTION' (76 ~s--- ;1~llff Gr-G:- /Yo <7~o '. .. Council Meeting Date Agenda Item /# Was it amended? e FOR CITY C~ERK IS ORDINANCE /# ACTION Introduced: Adopted: AIJ'lAYS PUBLISH AOOPI1:V ORDlllANCES* *Cross out Attorney. s approval -) NEWSPAPER PUBLICATION (Date: ) Pepartment originating staff report ( * ) *Clty Attorney does not want oop1es of his o:rdl.1')ances or resolut1ons. ldanagement Ser~.ise ~ Lynne Bar,ret te urdlnance s onI y Agency mentioned in document or staff report !l .. (certIfied?) Subject file (agenda packet) 1 o the r s -: (Review for depcu; t.llents wb:> need to knc::1.o1) . Counter file 1 AirpoTt Parking Auth. Auditotum Personnel Building Dept. Planning Police (en- forcement?) c:';'-UIvJJ'U ty and Eoonc:m:ic 0eV. Finance J Purchasing Fire Recr/Parks III General Servo >- Q) r::: "" o ..... ..... < >. ~ .... u Transportation Library Treasurer Manager ..... o SE~D FOU~ COPIES OF ALL ORDINANCES TO: CODf,D SYSTEl-iS. AttnPete-t- Maclearie 1:'.9 "fpin~ .r'tr~et Avri'r ~~w Jersey_OZ717 SEND FOUR COPIES OF A1.L ORDTNMJf:)::S _TO: Debza ~yrick . ~AN1A MONICA MUNICfPAL COURT ,1.725 MAIN STREE't Room 118 SA~ITA MON.leA, CA 90401 coo .... ~ Q) ..0 o Cl::. . *Check. OXIe Sect1cns be for = ";':'!l1dll TOTAL COPIES 3 r e e ...:.." ATTACHMENT C FD:CMD:gp:srgannap Council Meeting: June 28, 1988 Santa Mon1ca, Cal1fornia Reso 1 ut lOn No. 7645(CCS) (City Counc1l Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROPRIATING FISCAL YEAR 1987-88 FUNDS TO GANN RESERVE ACCOUNTS WHEREAS, under the prov1sions of Article XIIIB of the Califorma Const1tutlon, a C1ty is author1zed to appropr1ate to a Gann reserve account the di fference between actual spend1ng subject to the Gann Appropr; at 10ns L1m1t and the c1ty'S Gann Appropriat1ons L1m1t for that fiscal year; and WHEREAS, appropr1ating available funds to Gann reserve accounts 1S 1n the publ1C interest because establishment of Gann reserve accounts increases the ab1lity of the C1ty Counc1l to respond to the serV1ce needs of the cit1zens of the C1ty of Santa Mon1ca, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. All F1scal Year 1987-88 General Fund and Recreat10n and Parks Facllitles Fund approprlations and revenue estimates, exclusive of Federal or State grant approprlat1ons and revenue estlmates, shall be adJusted to actuals as determ1ned by the C1ty'S annual flnanc1al audit as set forth 10 the City's F1scal Year 1987-88 Comprehensive Annual Financlal Report, and the difference between the lesser of $4,710,336 or actual expend1tures and encumbrances subJect to lim1tation as determ1ned by the C1ty'S annual financial aud1t as set forth 1n the C1ty/S F1scal Year 1987-88 Comprehensive - .- e e Annual Financial Report for these Funds and the C1ty'S F1scal Year 1987-88 Gann Appropriations Limlt, to the extent funds are available, is hereby approprlated to reserve accounts ;n these respect1ve Funds. SECTION 2. The C1ty Clerk shall certify to the adopt10n of this Resolution, and thenceforth and thereafter the same shall be 1n full force and effect. APPROVED AS TO FORM: ~1N\..~ ROBERT H. NYERS 0 Clty Attorney -. ~. .. - - -- Adopted and approved this 28th day of June, 1988. AA v - ) I hereby certify that Resolution No. 7645(CCS) was duly adopted by the City Council of the City of Santa Monica at a meeting thereof held on June 28, 198B by the following Council vote: Ayes: Councilmembers: Finkel, Jennings, A. Katz, H. Katz, Reed, Zane, Mayor Conn Noes: Councilmembers: None Abstain: Councilmembers: None Absent: Councilmembers: None ATTEST: ~ {L ~'.<A</r - ~City Clerk . . ~--6 :lUN 2 8 1988 FD:MD:ak:srgannap Counc,l Meeting: June 28, 1988 ~ Santa Monica, Californla ./-'tJ 1,- (} C'I TO: MAYOR AND CITY COUNCIL FROM: C1ty Staff SUBJECT: Recommendat lOn to Approve Resol ut 1 ons Establ i shi ng the City's Gann Appropriat1ons Limlt For FY 1988-89 and Appropriat1ng FY 1987-88 Funds to Gann Reserve Accounts Introduction This report recommends approval of resolutions establ1shing the City's Gann Appropriat1ons Limit for FY 1988-89 at $50,896,388 and appropr1at1on of available FY 1987-88 funds to Gann reserve accounts. Gann Appropr1at1ons L1m1t for FY 1988-89 On June 21, 1988, the City Council adopted the City's FY 1988-89 budget. In order to meet legal requ1rements, the City Council must also formally adopt the City's Gann Appropriat1ons Limit for FY 1988-89. Based upon the instruct10ns provided by the State of Californ1a Department of Finance, various clarifying guidelines, and reflecting the results of the June 7, 1988 election, the City's Gann Appropriations Lim1t of $50,896,388 for FY 1988-89 has been computed and made ava1lable to the publ1c for f1fteen days prior to this meeting. The calculation of the limit is detailed at Attachment A. A comparison of the City's FY 1988-89 Gann Appropriations L1m1t and FY 1988-89 appropriatlons subJect to l1m1tat1on as set forth 1n the City's adopted FY 1988-89 budget 1S as follows: 6-6 JUN 2 8 1988 ~ . . . Cap1tal Improvements Police and Outlays TORcA On-Going Overn de Overn de Overn de Component + Component + Component + Component '" Total Gann Li m1 t $35,193,788 S 6,000,000 $ 9,500,000 $ 202,600 $50,896,388 Appropn at ions SubJect to Limi ta- 33,167,297 3,903,393 2,076,627 29,810 39,177,127 tion Net under/ $ 2,026,491 $ 2,096,607 $ 7,423,373 $ 172,790 $11,719,261* (over) *It should be noted that whlle thlS is the amount by WhlCh the C1ty lS under the Gann L1m1t on the expendlture side, the clty lS under the limit by $6,875,420 on the revenue side. The above table ind1cates that in all components of the Clty'S total Gann Appropriations L1m1t, FY 1988-89 appropriations subject to llmitation are less than the appl1cable l1mit component. An appropri ate resol ut ion to establ1 sh the C1ty'S FY 1988-89 Gann Appropriations Limit at $50,896,388 is at Attachment B. Appropriat1on of Ava1lable FY 1987-88 Funds to Gann Reserve Accounts Under the provis10ns of Article XIIIB of the State Constitut10n, a city is authorized to appropriate to reserve accounts the difference between actual spending (i.e. expenditures and encumbrances) subject to the Gann Appropriations Lim1t and the City's Gann Appropr1ations Limit for that fiscal year. This action can be accompl1shed by the C1ty Counc1l passing a resolutlon to th1S effect. For FY 1987-88, an appropriate resolut1on to accomplish this transact10n has been prepared and 1S at Attachment C. By taking th,s actio~he City Counc,l, in effect, su~cts to the FY 1987-88 Gann Appropriations Limit the funds so approprlated to Gann reserve accounts. Thus, the "Ganned" monles in the reserve accounts become ava1lable to flnance carryover capital proJects or for appropriat1on dunng FY 1988-89 and/or subsequent f1scal years free of FY 1988-89 and/or subsequent f1scal year's Gann lim1tations. As the following table 1nd1cates, Counc1l adopt1on of the resolution at Attachment C means that up to $4,710,336 of cash whlch may be ava1lable at the end of the current f1scal year can be "Ganned". Est1mated Actual Spend1ng Results for FY 1987-88 Police Capital TORCA On-go1ng Override Project Override Component + Component + Component + Component = Total Gann Liffilt $33,501,175 $ 4,461,756 S 3,904,037 S 111,456 $41,978,424 Est1mated Actual Spend1ng SubJect to L 1m1tatlOn 29,483,195 3,854,938 3,904,037 25,918 37,268,088 Net under/ $ 4,017,980 $ 606,818 $ -0- $ 85,538 $ 4,710,336* (over) *Under by $1,665,163 on the revenue side. When the City's FY 1987-88 Comprehensive Annual Flnancial Report is submitted to the Counc1l this Fall, the F1nance Duector will report to the Council actual total FY 1987-88 spending and the actual amount which the councll has appropr1ated to "Ganned" reserve accounts. . . Budget/F1nancial Impact Adoption of the attached resolutlon establishing the City's FY 1988-89 Gann Appropr1ations Limit does not have a budgetjf1nanc1al impact. Adopt10n of the attached resolution appropriating available FY 1987-88 funds to "Ganned" reserve accounts will enable the C1ty to continue to flnance carryover capital projects and 1ncrease the City's ability to respond to future serV1ce needs. Recommendat1on It is recommended that the attached resolutlons which establish the City's Gann Appropriations Limit for FY 1988-89 at $50,896,388 and wh1ch appropriate up to $4,710,336 of available FY 1987-88 funds to Ganned reserve accounts be approved. Attachments Prepared by: Mike Denn1s, Dlrector of Finance . . ATTACHMENT A CITY OF SANTA MONICA CALCULATION OF FY 1988-89 GANN APPROPRIATIONS LIMIT FY1987-88 TOTAL GANN APPROPRIATIONS LIMIT On-Go1ng Component (a) Police Overr1de Component (b) (a) Capital Improvement and Outlays Overrride Component (b)(a) FY1987-88 Gann Limit (Exclus1ve of TORCA Component) $ 33,501,175 4,461,756 31904,037 $ 41,866,968 ADJUSTMENT FACTORS Allowable FY1988-89 Adjustment (e) cpr Change 1.0393 times City Pop. Chg. 1.0108 = 1.050524 x 1.050524 Sub-Total $ 43,982,255 Override Component Increases Approved by the voters, June 7, 1988: Police Override Component +$ 1,312,818 Cap1tal Improvements and Outlays Component +$ 5,398,715 Plus FY1988-89 TORCA Overr1de Component (Per Section 2015 of Clty Charter) (d) 202,600 FY1988-89 TOTAL GANN APPROPRIATIONS LIMIT $ 50,896,388 Consisting of the Following Components: On-going Component $ 35,193,788 Pol1ce Override Component(e) $ 6,000,000 Capital Improvements and Outlays Override Component(e) $ 9,500,000 TORCA Override Component(e) $ 202,600 (a) Adopted by City Council on 6/23/87. (b) Approved by the voters in Nov. 1984; specific FY1987-88 amounts adopted by the City Council on 6/23/87. (e) Per State Department of F1nance, May I, 1988. (d) Approved by the voters June 1988; spec1fic FY1988-89 amount per adopted FY1988-89 Budget. (e) Approved by the voters June 1988. . . ATTACHMENT B FD:cMD:gp:srgannap Counc1l Meeting: June 28, 1988 Santa Monica, Cal1forn1a RESOLUTI ON NO. (C1ty Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 1988-89 WHEREAS, the C1ty CounC1l 1S requ1red under the prOV1S1ons of Government Code Sect10n 7910 and Article XIIIB of the Cal1forn1a Constitut1on to establ1sh 1tS approprlat10ns limit by resolut10n; and WHEREAS, documentation used 1n the determinat10n of the appropr1at10ns l1m1t has been ava11able to the publ1C for f1fteen days pr10r to th1S meet1ng as requ1red by Government Code Sect10n 7910, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS; SECTION 1. For purposes of Art1cle XIIIB of the Cal1fornla Constitution, the Clty of Santa Monica appropnations llmit for the fiscal year 1988-89 shall be $50.896,388. SECTION 2. The c1ty Clerk shall certify to the adoption of the Resolution, and thenceforth and thereafter the same shall be 1n full force and effect. APPROVED AS TO FORM: R~ M~~ ~~~ C1ty Attorney . . ATTACHMENT C FD:CMD:gp:srgannap Councll Meeting: June 28, 1988 Santa Monica, Cal1fornia Resolution No. (C1ty Council Serles) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA APPROPRIATING FISCAL YEAR 1987-88 FUNDS TO GANN RESERVE ACCOUNTS WHEREAS, under the prov1sions of Artlcle XIIIB of the Cal ifornla Constltutlon, a city 1S authorlzed to appropriate to a Gann reserve account the difference between actual spend1ng subJect to the Gann Appropr1ations l1mlt and the City's Gann Appropr1ations L1m1t for that f1scal year; and WHEREAS, appropr1at1ng available funds to Gann reserve accounts 1S 1n the public interest because establishment of Gann reserve accounts 1ncreases the ab1lity of the City Counc1l to respond to the service needs of the c1tizens of the C1ty of Santa Monica, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. All F1scal Year 1987-88 General Fund and Recreation and Parks Facilities Fund appropriatlons and revenue estimates, exclus1ve of Federal or State grant appropr1atlons and revenue est1mates, shall be adJusted to actuals as determined by the City's annual f1nancial audit as set forth 1n the C1ty'S Fiscal Year 1987-88 Comprehensive Annual F1nancial Report, and the difference between the lesser of $4,710,336 or actual expenditures and encumbrances subject to l1m1tation as determined by the C1ty'S annual flnancial audit as set forth in the City's Flscal Year 1987-88 ComprehenslVe Annual F1 nanci al Rep' for these Funds and the Cl t~ Fi scal Year 1987 -88 Gann Appropriations Llmlt, to the extent funds are ava1lable, is hereby appropr1ated to reserve accounts 1n these respect1ve Funds. SECTION 2. The C1ty Clerk shall cert1fy to the adoption of th1S Resolution, and thenceforth and thereafter the same shall be in full force and effect. APPROVED AS TO FORM: ~W\..~ ROBERT M. MYERS 0 City Attorney . ~V"Eb 6-(;. JUN 2 8 1988 council Meeting: June 28, 1988 Santa Monica, California TO: Mayor and City Council FROM: City staff SUBJECT: Revised Staff Report for Item 6-G The attached revised staff report reflects final Council action on the FY 1988-89 budget. The only change is to the table on the second pages of the staff report. ~&(ISe'~ /" (JI- 6- JUN 2 B lQ88 . ~.e;h ~N-:~ FD:MD:ak:srgannap Counc1l Meet1ng: June 28, 1988 Santa Monlca, californ1a TO: MAYOR AND CITY COUNCIL FROM: City Staff SUBJECT: Recommendation to Approve Resolutions Establishing the City's Gann Appropriations Limit For FV 1988-89 and Appropriat,ng FY 1987-88 Funds to Gann Reserve Accounts Introduction This report recommends approval of resolutions establishing the City's Gann Appropriations Limit for FY 1988-89 at $50,896,388 and appropriation of available FY 1987-88 funds to Gann reserve accounts. Gann Appropriations Limit for FY 1988-89 On June 21, 1988, the Ci ty Counc1l adopted the Ci ty' s FY 1988-89 budget. In order to meet legal requirements, the City Council must also formally adopt the City's Gann Appropriations Limit for FY 1988-89. Based upon the instructions provlded by the State of California Department of F1nance, various clarifying guidelines, and reflecting the results of the June 7, 1988 election, the City's Gann Appropriations Limit of $50,896,388 for FY 1988-89 has been computed and made available to the publ1C for f1fteen days prlor to this meeting. The calculation of the limit is detailed at Attachment A. A comparison of the City's FY 1988-89 Gann Appropriations Limit and FY 1988-89 appropnat1ons subJect to limitat10n as set forth in the City's adopted FY 1988-89 budget 1S as follows: ~VIS~~ 6-6 JUN 2 8 1988 . . Capi ta 1 Improvements Police and Outlays TORCA On-Going Override Override Override Component + Component + Component + Component = Total Gann L imi t $35,193,788 $ 6,000,000 $ 9,500,000 $ 202,600 $50,896,388 Appropriations Subject to Limita- 34,107,925 3,903,393 2,076,627 29,810 40,117,755 t10n Net under/ $ 1,085,863 $ 2,096,607 $ 7,423,373 $ 172,790 $10,778,633* (over) *It should be noted that while this is the amount by Wh1Ch the City is under the Gann L i mi t on the expend 1 ture s 1 de. the C 1 ty is under the 11 ml t by $6,875,420 on the revenue side. The above table indicates that in all components of the City's total Gann Appropriations Limit, FY 1988-89 appropr1at1ons subject to llmitation are less than the applicable l1m1t component. An appropriate resolution to establish the City's FY 1988-89 Gann Appropriations Limit at $50,896,388 is at Attachment B. Appropriation of Available FY 1987-88 Funds to Gann Reserve Accounts Under the provisions of Article XIIIB of the State Constitution, a city is authori zed to appropri ate to reserve accounts the difference between actual spending (i.e. expenditures and encumbrances) subject to the Gann Appropriations Limit and the City's Gann Appropriations Limit for that fiscal year. This action can be accomplished by the City Council pass1ng a resolution to this effect. For FY 1987-88, an appropriate resolut1on to accomplish this transaction has been prepared and is at Attachment C. . . By taking this action, the City Council, in effect, subjects to the FY 1987-88 Gann Appropriations Limit the funds so appropriated to Gann reserve accounts. Thus, the "Ganned" monies in the reserve accounts become available to finance carryover capital proJects or for appropriat1on during FY 1988-89 and/or subsequent fiscal years free of FY 1988-89 and/or subsequent flscal year's Gann lim1tations. As the follow1ng table indicates, Council adoption of the resolution at Attachment C means that up to $4,710,336 of cash wh1ch may be available at the end of the current fiscal year can be "Ganned". Estimated Actual Spending Results for FY 1987-88 Police Capital TORCA On-going Overr1de Project Override Component + Component + Component + Component = Total Gann Lim1t $33,501,175 $ 4,461,756 $ 3,904,037 $ 111,456 $41,978,424 Estimated Actual Spending SubJect to L 1mitat ion 29,483,195 3,854,938 3,904,037 25,918 37,268,088 Net under! (over) $ 4,017,980 $ 606,818 $ -0- $ 85,538 $ 4,710,336* *Under by $1,665,163 on the revenue side. When the City's FY 1987-88 Comprehensive Annual Financial Report is submitted to the Counc1l this Fall, the Finance D1rector will report to the Council actual total FY 1987-88 spending and the actual amount which the Councll has appropr1ated to "Ganned" reserve accounts. . . Budget/F1nancial Impact Adoption of the attached resolution establ1shing the C1ty'S FY 1988-89 Gann Appropriations Limit does not have a budget/f1nancial impact. Adoption of the attached resolut1on appropriating available FY 1987-88 funds to "Ganned~ reserve accounts will enable the City to continue to finance carryover capital projects and increase the C1ty'S ability to respond to future service needs. Recommendation It is recommended that the attached resolutlons which establ1sh the City's Gann Appropr1ations L1m1t for FY 1988-89 at $50,896,388 and which appropriate up to $4,710,336 of ava1lable FY 1987-88 funds to Ganned reserve accounts be approved. Attachments Prepared by: Mike Dennis, Director of Finance . . ATTACHMENT A CITY OF SANTA MONICA CALCULATION OF FY 1988-89 GANN APPROPRIATIONS LIMIT FY1987-88 TOTAL GANN APPROPRIATIONS LIMIT On-Going Component (a) Police Override Component (b)(a) Capital Improvement and Outlays Overrride Component (bJ(a) FY1987-88 Gann Limit (Exclusive of TORCA Component) ADJUSTMENT FACTORS Allowable FY1988-89 Adjustment (e) CPI Change 1.0393 times City Pop. Chg. 1.0108 = 1.050524 Sub- Total Override Component Increases Approved by the voters, June 7, 1988: Police Override Component Capital Improvements and Outlays Component Plus FY1988-89 TORCA Override Component (Per Section 2015 of City Charter)(d) FY1988-89 TOTAL GANN APPROPRIATIONS LIMIT Consisting of the Following Components: On-going Component Police Override Component{e) Capital Improvements and Outlays Override Component(e) TORCA Override Component(e) $ 33,501,175 4,461 J56 3,904,037 $ 41,866,968 x 1.050524 $ 43,982,255 +$ 1,312,818 +$ 5,398,715 202,600 $ 50,896,388 $ 35,193,788 $ 6,000,000 $ 9,500,000 $ 202,600 (a) Adopted by C1ty Council on 6/23/87. (b) Approved by the voters in Nov. 1984; specific FY1987-88 amounts adopted by the City Council on 6/23/87. (c) Per State Department of F1nance, May 1, 1988. (d) Approved by the voters June 1988; specific FY1988-89 amount per adopted FY1988-89 Budget. (e) Approved by the voters June 1988. . . . . ATTACHMENT B FD:CMD:gp:srgannap Council Meeting: June 28, 1988 Santa Mon1ca, California RESOLUT ION NO. (C1ty Council Series) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ESTABLISHING THE GANN APPROPRIATIONS LIMIT fOR THE FISCAL YEAR 1988-89 WHEREAS, the City Council is required under the prOV1S10ns of Government Code Section 7910 and Article XIIIB of the California Constitution to establish its appropriations lim1t by resolution; and WHEREAS, documentation used in the determination of the appropriations lim1t has been ava1lable to the public for fifteen days prior to this meeting as required 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 Article XIIIB of the Cal1fornia Constitution, the City of Santa Monica appropnations 1 imit for the fiscal year 1988-89 shall be $50,896,388. SECTION 2. The C1ty Clerk shall cert1fy to the adoption of the Resolution, and thenceforth and thereafter the same shall be 1n full force and effect . APPROVED AS TO FORM: ~~.~ ROBERT M. MYERS U City Attorney . . . . ATTACHMENT C FD:CMD:gp:srgannap Council Meeting: June 28, 1988 Santa Mon1ca, California Resolut1on No. (City Council Series) A RESOLUTI ON OF THE CITY COUNC I L OF TH E CITY OF SANTA MONICA APPROPRIATING FISCAL YEAR 1987-88 FUNDS TO GANN RESERVE ACCOUNTS WHEREAS, under the provisions of Article XIIIB of the Californla Constitution, a city is authorized to appropriate to a Gann reserve account the di fference between actual spendi ng subJect to the Gann Appropri at 1 ons L1mit and the City's Gann Appropr1ations Limit for that f1scal year; and WHEREAS, appropr1ating available funds to Gann reserve accounts 1S in the public interest because establishment of Gann reserve accounts increases the abil1ty of the City Counc1l to respond to the serV1ce needs of the citizens of the City of Santa Monica, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES RESOLVE AS FOLLOWS: SECTION 1. All Fiscal Year 1987-88 General Fund and Recreatlon and Parks Facilities Fund appropriations and revenue estimates, exclusive of Federal or State grant appropriat1ons and revenue estimates, shall be adjusted to actuals as determined by the City's annual financlal audit as set forth 10 the C1ty'S Fiscal Year 1987-88 Comprehensive Annual Financial Report, and the d1fference between the lesser of $4,710,336 or actual expenditures and encumbrances subject to llmltat10n as determ1ned by the C1ty'S annual f1nancial audit as set forth in the City's F1scal Year 1987-88 Comprehensive . , . . Annual Financial Report for these Funds and the City's Fiscal Year 1987-88 Gann Appropriations L1mit, to the extent funds are available, is hereby appropriated to reserve accounts in these respective Funds. SECTION 2. The C1ty Clerk shall cert1fy to the adoption of th1S Resolutlon, and thenceforth and thereafter the same shall be In full force and effect. APPROVED AS TO FORM: ~~.~ ROBERT M. MYERS 0 City Attorney