HomeMy WebLinkAboutCC AG PKT 2010-06-14 #KAGENDA STAFF REPORT
DATE: June 14, 2010
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, Director of Administrative Services/Treasurer
SUBJECT: ESTABLISH ANNUAL APPROPRIATION (GANN) LIMIT
FOR FISCAL YEAR 2010/2011
SUMMARY OF REQUEST:
Adopt Resolution 6009 establishing the Appropriation Limit (GANN) for Fiscal
Year 2010/11.
BACKGROUND:
In November of 1979, the voters of California approved Article XIIIB of the
California State constitution also known as 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 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 for the-following
year. The appropriations limit for any fiscal year is equal to the previous year's
limit, adjusted for population changes and the change in the U.S. Consumer
Price Index or California per Capita Personal Income if smaller.
In June 1990, the voters modified the original 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. Under Proposition
4, if a city ends the fiscal year having more proceeds of taxes than the limit
allows, it must return the excess to the taxpayers within 2 years.
The City of Seal Beach's GANN Limit for the 2010/11 fiscal year is calculated to
be $22,255,288. The General Fund's revenues subject to the Appropriation's
Limit are $18,608,400. Therefore, the City is under the Appropriation's Limit by
$3, 646,888.
Agenda Item K
Page 2
FINANCIAL IMPACT:
There is no financial impact to the City.
RECOMMENDATION:
Adopt Resolution No. 6009 establishing the Appropriation Limit for fiscal year
2010/11.
SUBMITTED BY:
'ev'- '46b, 13:.�1
Robbeyn Bird, CPA
Director of Administrative Services/
City Treasurer
NOTED AND APPROVED:
David Carmany
City Manager
Attachments:
A. Resolution 6009
B. Calculation of Appropriations
RESOLUTION NUMBER 6009
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA ESTABLISHING THE FISCAL YEAR
2010/2011 GANN (APPROPRIATION LIMIT)
WHEREAS, Proposition 4 (Appropriation Limit) was approved by the voters of
the State of California in November 1979 ; and
WHEREAS, Proposition 111 and its implementing legislation amending
Proposition 4 was passed in June 1990; and
WHEREAS, adoption by resolution of the governing body is an annual
requirement.
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY
RESOLVE:
That for Fiscal Year ending June 30, 2011, the City of Seal Beach establishes an
appropriation limit of $22,255,288, thereby demonstrating compliance with Article
XIIIB of the State Constitution.
PASSED, APPROVED and ADOPTED by the City Council of the City of Seal
Beach at a regular meeting held on the 14th day of June , 2010 by
the following vote:
AYES: Council Members
NOES: Council Members
ABSENT: Council Members
ABSTAIN: Council Members
ATTEST:
Mayor
City Clerk
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution Number 6009 on file in
the office of the City Clerk, passed, approved, and adopted by the City Council at
a regular meeting held on the 14th day of June , 2010.
City Clerk
Attachment A
City of Seal Beach
Calculation of Appropriations Subject to Proposition XIIIB Limit
For Fiscal Year Ending June 30, 2011
Limit for FY 10111
2010/2011 per capita personal income
Product
2009/2010 population change (County)
Appropriations Limit FY 10111
Appropriations Limit FY 10111
Total FY 10111 General Fund revenues subject to
Appropriations Limit
$ 22,606,974
0.9746
22,032,757
1.0101
22,255,288
22,255,288
18,608,400
Amount under appropriations limit 3,646,888