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HomeMy WebLinkAboutCC AG PKT 2008-12-08 #IAGENDA STAFF REPORT DATE: December 8, 2008 TO: Honorable Mayor and City Council THRU: David Carmany, City Manager FROM: Robbeyn Bird, CPA Director of Administrative Services/Treasurer SUBJECT: ESTABLISH APPROPRIATIONS LIMIT FOR FISCAL YEAR 2008/2009 (GANN) SUMMARY OF REQUEST: Staff requests that the City Council adopt Resolution No. 5816 establishing the 2008/09 Appropriations Limit (GANN) required under Article XIIIB of the State Constitution. BACKGROUND: In November of 1979, the voters of California passed Proposition 4 or the "GANN Initiative". The proposition restricts the total amount of appropriations allowed in any given fiscal year from the "proceeds of taxes". In June 1990, the voters modified Proposition 4 with the passage of Proposition 111 and its implementing legislation. Beginning with the 1990-91 Appropriations Limit, a City may choose annual adjustment factors. The adjustment factors include the growth in the California Per Capita Income or the growth in the non-residential assessed valuation due to construction within the City, and the population growth within the County or the City. The City of Seal Beach's GANN Limit is currently calculated to be $22,240,818 which is under the limit by $4,700,818. The proceeds of taxes subject to the appropriations limit is $17,540,000 . FISCAL IMPACT: None. RECOMMENDATION: Staff recommends that City Council adopt Resolution No. 5816 establishing the 2008/09 Appropriations Limit. SUBMITTED BY: .~.. Robbeyn ird, CPA Director of Administrative Services/Treasurer NOTED AND APPROVED: ~-' David Carman ,City Manager Attachments: A. Resolution No. 5816 B. GANN Limit Calculation Agenda Item ~ RESOLUTION NUMBER 5816 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL BEACH, CALIFORNIA ,SETTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2008-09 WHEREAS, In November of 1979 the voters of California passed Proposition 4; and WHEREAS, In 1980, the State Legislature added a section of the Government Code that required the governing body of each local jurisdiction to establish, by resolution, an appropriations limit. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY RESOLVE: That for Fiscal Year ending June 30, 2009 the City of Seal Beach establishes an appropriations limit of $22,240,818, thereby demonstrating compliance with Article XIIIB of the State Constitution. PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a meeting hereof held on the 8th day of December , 2008 by the following vote: AYES: COUNCILMEMBERS NOES: COUNCILMEMBERS ABSENT: COUNCILMEMBERS ABSTAIN: COUNCILMEMBERS ATTEST: City Clerk Mayor STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Linda Devine, City Clerk of Seal Beach, California, do hereby certify that the foregoing resolution is the original copy of Resolution Number 5816 on file in the office of the City Clerk, passed, approved, and adopted by the City Council of the City of Seal Beach, at a regular meeting thereof held on the 8th day of December , 2008. City Clerk City of Seal Beach Schedule B Calculation of Appropriations Subject to Proposition XIIIB Limit For Fiscal Year Ending June 30, 2009 Limit for FY 07/08 $ 21,110,607 2008/2009 per capita personal income Product 2008/2009 population change (County) Appropriations Limit FY 08/09 Appropriations Limit FY 08/09 Total FY 08/09 General Fund revenues subject to Appropriations Limit Appropriations under the limit 1.0429 22,016,252 1.0102 22,240,818 22,240,818 17,540,000 4,700,818 R:\-2008 Agendas\12-08-08 Council MeetingWS -Staff Report - I - 2008-09 GANN Limit (Calculation)