HomeMy WebLinkAboutResolution 2009-26 to establish the annual appropriation limCouncil/Agency Meeting Held: z -J609
Deferred/Continued to:
pro ed moll proved ❑ Denied
�aoL�CY' `lty ' Cler Signature
Council Meeting Date: 6/1/2009
Department ID Number: FN 09/002
ee
SUBMITTED TO: HONORABLE MAYOR AND CITY COU IIC MEMBERS
SUBMITTED BY: FRED A. WILSON, CITY ADMINIST
v
PREPARED BY: BOB WINGENROTH, DIRECTOR OF FINANCE
SUBJECT: ADOPT RESOLUTION TO ESTABLISH ANNUAL APPROPRIATION
LIMIT FOR FISCAL YEAR 2009-2010
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 2009-26 , "A Resolution of the City Council of the City of
Huntington Beach Establishing the Appropriation Limit for Fiscal Year 2009-2010" of
$646,330,684.
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.
Analysis:
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.
�9
FETING ®ATE: 6/112009 DEPARTMENT I® NUMBER: FN 09/002
Analysis (continued):
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).
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 (whichever is greater).
For this year's calculation, the 1.02 percent increase in County population was greater than
the increase in the city's population of 0.67 percent. The 6.13 percent increase in the
assessment roll from the addition of local, nonresidential construction was greater than 0.62
percent increase in per capita personal income.
The proposed appropriation limit for Fiscal Year 2009-2010 was calculated as follows:
Fiscal Year 2008-2009 Adopted Appropriation Limit $602,877,623
Multiplied by change in assessment roll from addition
of local, nonresidential construction 1.0613
Multiplied by change in county population 1.0102
Proposed Fiscal Year 2009-2010 Appropriation Limit $646,330,684
Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund.
General Fund appropriations for Fiscal Year 2009-2010 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 licenses, 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.
Strate-gic Plan Goal:
Fully understand the financial implications of financial decisions before they are made, and
recognize and disclose fiscal impacts of the pension crisis.
Environmental Status: Not applicable
Attachment(s):
Resolution Number 2009-26 , "A Resolution of the City Council of
the City of Huntington Beach Establishing the Appropriation Limit
for Fiscal Year 2009-2010. "
-2- 5/13/2009 11:41 AM
ATTACHMENT
RESOLUTION NO. 2009-26
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
APPROPRIATION LIMIT FOR FISCAL YEAR 2009-2010
WHEREAS, Article 13B of the California Constitution imposes upon state agencies and
local governments 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
prescribed 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
$646,330,684 for the fiscal year 2009-2010.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 1 s t day of June , 206 9 .
ayor
REVIEWS PROVED: fM ED AND APPROVE :
City Ad intstriftor Finance Director
APPROVED AS TO FORM:
�-- City Attorney
09-2082/33677
Res. No. 2009-26
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 a regular meeting thereof held on June 1, 2009 by the following vote:
AYES:
Carchio, Dwyer, Bohr, Coerper, Hardy, Hansen
NOES:
None
ABSENT:
Green
ABSTAIN: None
T
Ci Clerk and ex-officio Jerk of the
City Council of the City of
Huntington Beach, California
:� •
INITIATING DEPARTMENT:
FINANCE
SUBJECT:
ADOPT RESOLUTION TO ESTABLISH ANNUAL
APPROPRIATION LIMIT FOR FISCAL YEAR 2009-2010
COUNCIL MEETING DATE:
June 1, 2009
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
Not A plicable
❑
Tract Map, Location Map and/or other Exhibits
Attached
❑
Not Applicable
Contract/Agreement (w/exhibits if applicable)
Attached
❑
(Signed in full by the City Attorney
Not Applicable
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000)
Attached
❑
Not A plicable
Bonds (If applicable)
Attached
Not p cable
Staff Report (If applicable)
Attached
Not Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not A plicable
Findings/Conditions for Approval and/or Denial
Attached
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
I—
REVIEW15D
RETURNED
FORW RPED
Administrative Staff I hIAY 14 B03
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Deputy City Administrator Initial n� � ��, r �� � ra B
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CityAdministrator Initial Vr�DNIIiVIS+�•.���r-ON
City Clerk L" ��—�
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0 EXPLANATION FOR RETURN OF ITEM;
RCA Author: Robert Sedlak, Dahle Bulosan