SR-202-002 (20)
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Santa r10n i ca s
call1lrnias March 13, 1981
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TO: Mayor and City Council
FROM: City Staff
SUBJECT: Harch 10, 1981 Agenda Item 13-C - Transfer of $105 r1illion from
, Capital Improvement Reserves
Introduction
City Council at its Harch 11, 1981 meeting requested a report from City Staff
regarding Agenda Item 13-C. In Agenda Item l3-C, Council Member Scott discusses
the need for an appropriation from Reserve for Capital Improvement to General
Fund Unappropriated Surpluso
Discussion
Differences Between Fund Balance Calculations
Council Member Scott1s calculations show what the General Fund balance will be
at June 30, 1981 if estimated revenues equal actual revenues and approprlations
equal expenditures and encum~rances. Staff's January monthly report shows wha;
the General Fund balance is as of January 31, i981~ Depending on the purpose
of the analysis, both calculations are accurate and usefuJ in asseSSing the City's
financial position.
Need for Transfer of $105 from Capital Improvement Reserve
Council Member Scott points out General Fund 1980-81 appropriations exceed
estimateq revenue and unreserved beginning fund balance by $1.2 million. Every
year since the 1976-77 fiscal year, the City's budgets have provlded the
differences between appropriations and esti~ated revenues are to be financed
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from "expenditure savings, unanticipated revenues and reservesl'. The exact
dollar amount to be financed from each of these categories has not been specified
in the budget.
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Mayor and City Co~'
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~Ch 13, 1981
To:
Transferring $105 million from the Capital Improvement Reserve to unappropriated
fund balance would make the City's financing plan more explicito In connection
with the preparation of the City's 1981-82 budget, Staff is currently in the
process of refining estimates of revenues and expenditure savings. Unanticipated
revenues and expenditure savings may make the $1.5 ~il1ion transfer from Capital
Improvements Reserve unnecessary. It is Staff's intention to prepare a report
to City Council in May requesting adoption of revised revenue estimates for
1980-81. Revision of revenue estimates will be necessary if the City is to
maximize its flexibility under the Gann Initiative. Council may wish to consider
the proposed transfer from the Capital Improvement Reserve in conjunction with
its review of the proposed revision in 1980-81 revenue estimateso
Recommendation
Receive and file.-
Prepared by: Charles Kent McClain
Nick Rives
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FROM:
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Mayor and City Council
C1 ty Staff
Santa t1onica, calmia. r.1arch 13, 1981 I J n
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SUBJECT: March 10. 1981 Agenda Item 13-C - Transfer of $1.5 Million from
Cap1tal Improvement Reserves
Introduction
City Council at its March 11,1981 meeting requested a report from Clty Staff
regarding Agenda Item 13-C. In Agenda Item 13-C, Council Member Scott discusses
the need for an appropriation from Reserve for Capital Improvement to General
Fund Unappropriated Surplus.
DiscusSl0n
Dlfferences Between Fund Balance Calculations
Councl1 Member Scott1s calculations show what the General Fund balance will be
at June 30, 1981 If estlmated revenues equal actual revenues and aoproprlations
equal expenditures and encumbrances. Staff's January monthly report shows what
the General Fund balance ~ as of January 31,1981. Dependlng on the purpose
of the analysls, both calculations are accurate and useful in assessing the Clty'S
financial position.
Need for Tra.osfer of_ Sl.S from Capital ImprDvem~ntReserve
Council Member Scott points out General Fund 1980-81 appropriations exceed
estlmated revenue and unreserved beglnning fund balance by $1.2 million. Every
year since the 1976-77 flscal year~ the City's budgets have provided the
differences between appropriations and estiMated revenues are to be financed
from uexpendlture savings, unanticipated revenues and reserves". The exact
dollar amount to be financed from each of these categories has not been specific
in the budget.
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To: Mayor and City Council
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March 13. 1981
Transferrlng $1.5 ml1110n from the Caplta1 Improvement Reserve to unappropriated
fund balance would make the City's flnancing plan more exp11cit. In connection
wlth the preparation of the City's 1981-82 budget, Staff is currently in the
process of refinlng estlmates of revenues and expenditure savings. Unantlclpated
revenues and expenditure savi ngs may make the $1.5 llIill ion transfer from Capital
Improvements Reserve unnecessary. It is Staff's intention to prepare a report
to Clty Council in May requesting adoptlon of revlsed revenue estimates for
1980-81. Revision of revenue estimates will be necessary if the Clty is to
maximize lts flexibllity under the Gann Inltiative. Council may wish to conslder
the proposed transfer from the Capltal Improvement Reserve in conjunction wltn
lts review of the proposed reviSlon in 1980-81 revenue estimates.
Recommendation
Receive and file.
Prepared by: Charles Kent McClain
Nick Rives
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Ii-A: CAPITAL IMPROVEMENT RESERVE/REVENUE ESTIMATES: Presented was a
staff report regard~ng the effect on the C~ty's Gann appropr~ation
limit of a proposed transfer from the Capital Improvement Reserve to
the General Fund Unappropriated Balance and recommending instead a
revis~on of 1980-81 General Fund Revenue Est~rnates. Councilmernber Reed
moved to adopt the schedule of revised revenue estimates for the
1980-81 Fiscal Year in a total amount of 51,750,000. Second by ~ayor
Yannatta Goldway. Discussion was held. The mot~on was approved by the
following vote:
council Vote: Unanimously approved 6-0
Absent: Councilmember Jennings
CITY COUNCIL }.1EETING - MAY 19, 1981
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Santa MonIca, callf.a, t~ay 12
, 1981
TO:
Mayor and CIty CouncIl
//11
MAY 1 2 1981
FROM: CIty Staff
SUBJECT: Transfer from Capital Improvement Reserve/Revision of
Revenue EstImates
Backg r,ound
At its April 14, 1981 meeting, the City Council requested a report
of the effect on the City's Gann ApproprIation Limit of a proposed
transfer of $1.5 mIllion from the Capital Improvement Reserve to
the General Fund Unappropriated Balance.
ArtIcle XIIIB of the State ConstItutIon provides that:
Each entIty of government may establIsh such
contingency, emergency, unemployment, reserve,
retIrement, sinking fund, trust, or similar funds as It
shall deem reasonable and proper. ContrIbutIons to any
such fund, to the extent that such contrIbutions are
derived from the proceeds of taxes, shall for purposes
of this Article constItute approprIations subject to
limitation in the year of contrIbution. Neither
WIthdrawals, nor transfers between or among such funds
shall for purposes of thIS Article constItute
approprIatIons subJect to limItatIon.
with regard to interpretation of ArtIcle XIIIB, Senate BIll No.
1352 (Marks) which became effective January 1, 1981 provides as
follows:
The Legislature finds and declares that Article XIIIB of
the California ConstitutIon IS Intended to prOVIde
certain limitatIons and controls on government In the
State, but these restrIctIons are intended to be applIed
In a reasonable and practical way, so as to permit
fleXIbIlity in meeting the constantly changing
conditions and needs of the people for governmental
serVIces.
}I It
MAY 1 2 1981
To: Mayor and Ci~ouncil
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May 12, 1981
DiscuSSIon
ArtIcle XIIIB of the State Const1tution clearly spec1fles that
transfers or withdrawals from reserves are not subject to the
appropriation limit. If a transfer or wlthdrawal is made and later
proves unnecessary, can the transfer or wIthdrawal be cancelled or
reversed without affectlng the City's Gann L1m1t? It 1S staff's
opinlon
that
such
a
cancellatlon or reversal is not a
contribution, and therefore does not constitute an approprlation
subject to limit.
In summary, the proposed transfer or a
subsequent reversal of the proposed transfer w1ll not affect the
CIty'S Gann L1mIt.
However, due to unanticipated revenues, staff be11eves this
transfer is unnecessary.
Based on a review of nine months of
actual
revenues, staff est1mates that 1980-81 General Fund
revenue s
will exceed original est1mates by $1,750,000 (see
Attachment A).
Recommendation
Adopt revised 1980-81 General Fund revenue est1mates shown on
Attachment A.
Prepared By: Nick Rlves
Kay Watanabe
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Attachment A
CITY OF SANTA MONICA - GENERAL FUND
SCHEDULE OF REVISED REVENUE ESTIMATES
FISCAL YEAR 1980-81
Or ig inal Revised
Est1mate Est1mate Increase
Property Taxes 3,885,500 4,373,000 487,500
Franchise Tax - Ut il i ties 240,000 308,000 68,000
Franch1se Tax - Misc. 45,000 56,000 11,000
Transient Occupancy Tax 700,000 838,600 138,600
Utl11ty Users Tax 3,000,000 3,294,900 294,900
Sales/Use Taxes 8,000,000 8,100,000 100,000
BUSlness L1cense 1,200,000 1,350,000 150,000
Condominium Tax ----- 500,000 500,000
TOTAL 17,070,500 18,820,500 1,750,000
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CITY OF SANTA MONICA
INTER-DEPARTMENT MEMO
DATE: September 23, 1983
TO: Finance Director
FROM: City Clerk
SUBJECT: PUBLICATION OF GANN LIMIT NOTICE
Attached for your 1nformatlon is a copy of the above
not1ce which is hot off the press. At a near future
date, you will receive a copy of the proof of publi-
cations certified by the Even1ng Outlook. As you may
know, our office retains proofs of all city notices
as part of our records keeplng.
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Attachment
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