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Home My WebLink AboutResolution 2006-32 - Establish Annual Appropriation Limit foCouncil/Agency Meeting Held: _ ti _. CITY QL' Deferred/Continued to: MT;; C Y AApp oved Conditionally Appr ved ❑ Denied ity erk's ign � `''' ""' Council Meeting Date: 6/19/2006 Department ID Number: FN 06-005 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENEL PERET� T, p q CITY ADMINISTRATOR PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR SUBJECT: ADOPT RESOLUTION TO ESTABLISH ANNUAL APPROPRIATION LIMIT FOR FISCAL YEAR 2006-2007 Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Article 13B of the State of California Constitution '(the Gann Appropriation Limit) imposes upon state agencies and local government the obligation to limit each fiscal year's appropriations and requires the City of Huntington Beach to. annually adopt a tax proceeds appropriation limit. Funding Source: Not applicable Recommended Action: Motion to: Adopt Resolution .Number-L ;� - 3.?."A Resolution of the City Council of the City of Huntington Beach Establishing the Appropriation Limit for Fiscal Year 2006-2007" of $536,862,296. Alternative Action(s):. 1. Do.not adopt an appropriation limit in which case the prior year limit applies. 2. Adopt the limit with. different factors. Analvsis: in November .1979, the California voters approved Article 13B of the State.of California Constitution, which allows the 'city's spending of tax proceeds to increase only by factors from the base year of 1978-1979. In June 1990, Proposition 111 was passed which changed the way the limit is calculated and is outlined as follows. The city may increase its limit annually in two ways: • By a percentage equal to the increase from the preceding year in county or city population (whichever is greater). E -3 rl We U0 �I F BEACH REQUEST FOR ACTION MEETING DATE: 6/19/2006 DEPARTMENT ID NUMBER:FN 06-005 Analysis (continued): • By an amount equal to the change in per capita personal income in California or the change in the. assessment roll the, preceding year due. to the addition of local nonresidential new construction, is greater). For this year's calculation, the 0.83 percent increase in County population was greater than the increase in the city's population of 0.49 percent. The 3.96 percent increase in per capita personal income was greater than the 2.81 percent increase irithe assessment roll from the addition of local, nonresidential construction. The proposed appropriation limit for Fiscal Year 2006-2007 was calculated as follows: Fiscal Year 2005-2006 Adopted` Appropriation Limit $512,161,427 Multiplied by change in per capita personal income 1.0396 Multiplied by change in county population 1.0083 Proposed Fiscal Year 2006-2007 Appropriation Limit $536,862 296 Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund. General Fund appropriations for Fiscal .Year 2006-2007 are expected to be significantly below the amount set as the city's appropriation limit. Examples of proceeds of taxes governed by the Gann Appropriation limit are: property. taxes, sales taxes, utility taxes, state subventions,'. fines., forfeitures, interest revenue on regulatory 1icenses, user charges, and user fees to the extent that those proceeds exceed the costs reasonably borne by that entity in providing the regulation, product, or service. Environmental Status: Not applicable. Attachment(s): ` 1. Resolution Number;`200jb-3,�„ "A Resolution of the City Council of Number, - the City of Huntington Beach Establishing the Appropriation Limit a3 for Fiscal Year 2006-2007" G:\RCA\RCA - Finance\FN 06-005 Adopt Appropriation Limit 2006-2007.doc _2_ 6/5/2006 12:19 PM I ATTACHMENT #1 RESOLUTION NO. 2 0 o h_ 3 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2006/2007 WHEREAS, Article 13B of the California Constitution imposes upon state agencies and locals government the obligation to limit each fiscal year's appropriations of the proceeds from taxes to the amount of such appropriations in fiscal year 1978/1979, adjusted for changes as prescried under the law, NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. In compliance with the provisions of Article 13B of the California Constitution and the formula set out therein, there is hereby established an appropriation limit of $536,862,296 for the fiscal year 2006/2007. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 1 91- h day of June 120 () 6 Mayor Z&E AND APPROVED: APPROVED AS TO FORM: City Administrator ZOC ty Attorney V 6-P•0� INITIATED AND APPROVED: Finance Director 2509 Res. No. 2006-32 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex*-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that.the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at an regular meeting thereof held on the 19th day of June, 2006 by the following vote: AYES: Bohr, Green, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: Coerper ABSTAIN: None City Clerk and ex-officio C rk of the City Council of the City of Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT:. V FINANCE SUBJECT:. Adopt Resolution to Establish Annual Appropriation Limit for Fiscal Year 2006-2007- COUNCIL MEETING DATE: June 19, 2006 = RCA ATTACNIM"ENTS .� STATUS u.. ..:.., o Ordinance.(w/exhibits & legislative draft if applicable) Attached . ❑ Not Applicable Resolution (w/exhibits- & legislative draft if applicable) Attached Not Applicable El Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached Not Applicable ❑ (Signed in full by the City Attorney) Subleases, Third Party Agreements, etc.. Attached Not Applicable ❑ (Approved as to form by City Attorney) Certificates of Insurance (Approved by the City Attorney) Attached Not Ap licable ❑ Impact Statement (Unbudget, over $5,000) ed Not AttachchApplicable El Bonds (If applicable) AttachedNot Applicable ❑ Staff Report (If applicable) Attached Applicable ElNot Commission Board or Committee Re ort If alicable p ( pp ) Attached Not Applicable El Findings/Conditions for Approval and/or Denial Attached . Not Applicable ❑ EX 'LANATION FOR ' RETURN, OF ITEM �"" 0 RCA Author: Robert Sedlak, Accounting Manager x5907