HomeMy WebLinkAboutResolution 2011-41 establishing an annual appropriation limiCouncil/Agency Meeting Held: t7
Deferred/Continued to:
",Approved ❑ Conditionally Approved 0 Denied
° C s Sign ure
Council Meeting Date: June 20, 2011
Department ID Number: FN 11-008
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann. Farrell, Director of Finance
SUBJECT: Adopt Resolution No. 2011-41 establishing an annual appropriation
limit of $1,181,036,690 for the fiscal year 2011-2012
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.
Financial Impact: Not applicable
Recommended Action: Motion to:
Adopt Resolution Number 2011-41, "A Resolution of the City Council of the City of
Huntington Beach Establishing the Appropriation Limit for Fiscal Year 2011-2012" of
$1,181,036,690.
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.
I I -32 7- Item 15. - I
REQUEST FOR COUNCIL ACTION
MEETING, DATE: 6/20/2011 - DEPARTMENT ID NUMBER: FN 11-008
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.
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).
The proposed appropriation limit for Fiscal Year 2011-2012 was calculated as follows:
Fiscal Year 2010-2011 Adopted Appropriation Limit $ 902,730,066
Multiplied by change in assessment roll from addition
of local, nonresidential construction 1.2992
Multiplied by change in county population 1.0070
Proposed Fiscal Year 2011-2012 Appropriation Limit $1,181,036,690
Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund.
General Fund appropriations for Fiscal Year 2011-2012 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.
Environmental Status: Not applicable
Strategic Plan Goal: Maintain financial viability and our reserves
Attachment(s):
Resolution Number 2011-41, "A Resolution of the City Council of the City of
Huntinqton Beach Establishing the Appropriation Limit for Fiscal Year 2011-2012. "
Item 15. - 2 1113 -32IS-
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ATTACHMEN
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RESOLUTION NO. 2011-41
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
APPROPRIATION LIMIT FOR FISCAL YEAR 2011-2012
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:
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 $1,181,036,690 for
the fiscal year 2011-2012.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 20th day of June , 2011.
MI/y4i-
AND APPROVED: INITIATED AND APPROVED:
/:),
Finance Director
APPROVED AS TO FORM:
l
;kity Attorney
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11-2916/65185
Res. No. 2011-41
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH
1, 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 20, 2011 by the following vote:
AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
Cit Jerk and ex-officio(jerk of the
City Council of the City of
Huntington Beach, California