HomeMy WebLinkAboutPublic Hearing to consider adopting Resolution No. 2018-37 e )IPPR® VM 7
City of Huntington Beach
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File #: 18-084 MEETING DATE: 6/18/2018
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Gilbert Garcia, Chief Financial Officer
Subiect:
Public Hearing to consider adopting Resolution No. 2018-37 establishing the Gann
Appropriation Limit for Fiscal Year 2018119
Statement of Issue:
Section 7910 of the State Government Code requires the City of Huntington Beach to adopt its
appropriations limit, pursuant to Article XIIIB of the State of California Constitution. The Government
Code requires adoption of the appropriation limit by June 30, 2018, for the following Fiscal Year
2018/19.
Financial Impact:
None.
Recommended Action:
Adopt Resolution Number 2018-37, "A Resolution of the City Council of the City of Huntington Beach
Establishing the Gann Appropriation Limit for Fiscal Year 2018/19" in the amount of$921,344,622.
Alternative Action(s):
Do not approve the recommended action and direct staff accordingly.
Analysis:
In November 1979, the California voters approved Proposition 4, which created Article XIIIB of the
State Constitution, a state law that requires the state and local governments to adopt an annual
appropriation limit. This limit, also referred to as the "Gann Limit," establishes a limit on the proceeds
of taxes that may be appropriated for spending in a given fiscal year. The limit allows the City's
spending of tax proceeds to increase only by population growth and cost-of-living 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
City of Huntington Beach Page 1 of 2 Printed on 6/13/2018
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File #: 18-084 MEETING DATE: 6/18/2018
(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 non-residential new construction
(whichever is greater).
The proposed appropriation limit for Fiscal Year 2018/19 is calculated as follows:
FY 2017/18 Appropriation Limit $ 882,638,091
Multiplied by percentage growth in State Per Capita Personal Income 1.0367
Multiplied by change in County Population 1.0069
Proposed FY 2018/19 Appropriation Limit $ 921,344,622
Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund. The
General Fund proposed appropriation for FY 2018/19 of $228.4 million is significantly below this
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:
Strengthen economic and financial sustainability
Attachment(s):
1. Public Hearing Notice
2. Resolution Number 2018-37, "A Resolution of the City Council of the City of Huntington Beach
Establishing the Gann Appropriation Limit for Fiscal Year 2018/2019"
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PUBLIC HEARING
CITY OF HUNTINGTON BEACH
Notice of Public Hearing on the Proposed City Gann Appropriation Limit for Fiscal Year
2018/2019
Notice is hereby given that a public hearing will be held by the City Council of the City of
Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach located at
2000 Main Street, at the hour of 6:00 PM, or as soon as possible thereafter on Monday, the 181"
day of June 2018, for the purpose of considering the Gann Appropriation Limit for Fiscal Year
2018/2019.
The Gann Appropriation Limit for Fiscal Year 2018/2019 totals $921,344,622. The Gann
Appropriation Limit calculation for Fiscal Year 2018/2019 may be reviewed by the public from 8:00
AM to 5:00 PM, Monday through Friday in the City Clerk's Office at City Hall, 2000 Main Street,
second floor; the City's Central Library located at 7111 Talbert Avenue; and all branch libraries.
All interested persons are invited to attend to express their opinions for, or against, the proposed
Gann Appropriation Limit revisions with written or oral comments. Written communications to the
City Council should be mailed to the Office of the City Clerk at the address below. Further
information may be obtained from the Finance Department, 2000 Main Street, Huntington Beach,
CA, 92648-2702 or by telephone (714) 536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped status in the
admission or access to, or treatment or employment in, city programs or activities. The City of
Huntington Beach is an equal opportunity employer.
Dated: May 24, 2018 City of Huntington Beach
May 31, 2018 By: Robin Estanislau, City Clerk
2000 Main Street
Huntington Beach, CA 92648-2702
Telephone: (714) 536-5405
** Notice to City Clerk ** this copy to run twice in newsprint no later than 19 days prior to the
Council Meeting date. Run in both display format and in legal
section.
231
RESOLUTION NO. 2018-37
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
GANN APPROPRIATION LIMIT FOR FISCAL YEAR 2018/19
WHEREAS, Article 13B of the California Constitution imposes upon state agencies and
local governments the obligation to limit each fiscal year's appropriation 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 provisions of Article 13B of the California Constitution and the
formula set out therein, there is hereby established an appropriation limit of$921,344,622 for the
fiscal year 2018/19.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 18th day of June , 2018.
Mayor
REVIE AND APPROVED: APPROVED AS TO FORM:
City anger ;C-i A rney
TIATED AND APPROVED:
Chief Fin cial Officer
Exhibit A-Gann Limit Calculation
18-6519/180473/MV
EXHIBIT A
GANN LIMIT CALCULATION FISCAL YEAR 2018-2019
Under Proposition 111,there are two options available for each of the major adjustment factors. The values of these
factors for the purpose of calculating the Fiscal Year 2018-2019 adjustment are as follows:
Price Factor:
(A) Percent growth in State per Capita Personal Income: 3.67%
(Source: Dept of Finance,California-Attachment 1)
(B) Percent change in Assessed Valuation due to new non-residential construct 1.97%
(Source: Orange County Assessor Prop 111 Report-Attachment 2)
Population Factor:
(C) Percent growth in County Population: 0.69%
(Source:Dept of Finance,California-Attachment 1)
(D) Percent growth in City Population: 0.33%
(Source:Dept of Finance,California-Attachment 1)
Annual Adjustment Factor:
Based on the actual data,the four alternative adjustment factors are as follows:
(A x C) 1.0367 x 1.0069 = 1.0438532
(A x D) 1.0367 x 1.0033 = 1.0401211
(B x C) 1.0197 x 1.0069 = 1.0267359
(B x D) 1.0197 x 1.0033 = 1.023065
Calculation of the Fiscal Year 2018-2019 Limit
I
FY 17/18 Limit $882,638,091 From PY GANN
Recommended Adjustment Factor(Largest Allowable Increase) 1.04385323
FY 18/19 Limit $921,344,622
k
Res. No. 2018-37
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, 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 18, 2018 by the following vote:
AYES: O'Connell, Semeta, Peterson, Posey, Delgleize, Hardy, Brenden
NOES: None
ABSENT: None
RECUSE: None
P
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
LIn,l(//" s//(C///F
PUBLIC HEARING
CITY OF HUNTINGTON BEACH
J
Notice of Public Hearing on the Proposed City Gann Appropriation Limit for Fiscal Year
2018/2019
Notice is hereby given that a public hearing will be held by the City Council of the City of
Huntington Beach, in the Council Chambers of the Civic Center, Huntington Beach located at
2000 Main Street, at the hour of 6:00 PM, or as soon as possible thereafter on Monday, the 18tn
day of June 2018, for the purpose of considering the Gann Appropriation Limit for Fiscal Year
2018/2019.
The Gann Appropriation Limit for Fiscal Year 2018/2019 totals $921,344,622. The Gann
Appropriation Limit calculation for Fiscal Year 2018/2019 may be reviewed by the public from 8:00
AM to 5:00 PM, Monday through Friday in the City Clerk's Office at City Hall, 2000 Main Street,
second floor; the City's Central Library located at 7111 Talbert Avenue; and all branch libraries.
All interested persons are invited to attend to express their opinions for, or against, the proposed
Gann Appropriation Limit revisions with written or oral comments. Written communications to the
City Council should be mailed to the Office of the City Clerk at the address below. Further
information may be obtained from the Finance Department, 2000 Main Street, Huntington Beach,
CA, 92648-2702 or by telephone (714) 536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped status in the'
admission or access to, or treatment or employment in, city programs or activities. The City of
Huntington Beach is an equal opportunity employer.
Dated: May 24, 2018 City of Huntington Beach
May 31, 2018 By: Robin Estanislau, City Clerk
2000 Main Street
Huntington Beach, CA 92648-2702
Telephone: (714) 536-5405
** Notice to City Clerk ** this copy to run twice in newsprint no later than 19 days prior to the
Council Meeting date. Run in both display format and in legal
section.
I
Switzer, Donna
From: David Ward <daward@scng.com>
Sent: Thursday, May 17, 2018 9:30 AM
To: Switzer, Donna
Cc: Esparza, Patty; Saraye, Shari
Subject: Re: 06-18-18 PH Notice
Good morning Donna.
Below is the proof for the liner portion.
I will send you the proof for the Display portion when I get it from the artist.
Thank you,'
Liner- Ad#I 1123163 May 24 & 31 $282
Display - Ad#11123186 May 24 & 31 $416
LINER PROOF
_ PUBLIC HEARING
CITYOF HUNTINGTON BEACH
3
_ Notice of Public Hearing on the Proposed City GANN Appropriation
Limit for Fiscal Year 2018/2019
Notice is hereby given that a public hearing will be held by the City
Council of the City of Huntington Beach, in the Council Chambers of
the Civic Center, Huntington Beach located at 2000 Main Street, at the
°hour of 6:00 PM, or as soon as possible thereafter on Monday, the 18th
�ilday of June 2018, for the purpose of considering the GANN Appropria-
tion Limit for Fiscal Year 2018/2019.
=!The GANN Appropriation Limit for Fiscal Year 2018/2019 totals
�.
921,344,622. The complete GANN Appropriation Limit for Fiscal
Year 2018/2019 may be reviewed by the public from 8:00 AM to 5:00
PM, Monday through Friday in the City Clerk's Office at City Hall,
12000 Main Street, second floor; the City's Central Library located at
7111 Talbert Avenue; and all branch libraries.
All interested persons are invited to attend to express their opinions
"for, or against, the proposed GANN Appropriation Limit revisions
with written or oral comments. Written communications to the City
Council should be mailed to the Office of the City Clerk at the address
below. Further information may be obtained from the Finance De-
partment, 2000 Main Street, Huntington Beach, CA, 92648-2702 or by
-telephone (714) 536-5630.
IThe City of Huntington Beach endeavors to accommodate persons of
handicapped status in the admission or access to, or treatment or em-
ployment in, city programs or activities. The City of Huntington
Beach is an equal opportunity employer.
�aDated: May 24, 2018 City of Huntington Beach
May 31, 2018 By: Robin Estanislau, City Clerk
2000 Main Street
Huntington Beach, CA 92648-2702
Telephone: (714) 536-5405
http://Iluntinglonbeachca.gov/H BPublicComments/
-' Published: The Huntington Beach Wave May 24, 31, 201811123163
i
®avid Ward
Legal Advertising Rep
2190 S. Towne Centre PI.
Anaheim, CA 92806 "
714-796-6764
daward@scng.com
PLEASE NOTE THE E-MAIL ADDRESS HAS CHANGED
® SOUTHERn
CHLIF® nIH
NEWS GROUP
On Wed, May 16, 2018 at 1:58 PM, Switzer, Donna<Donna.SwitzerAsurfcitjhb.org>wrote:
Hi David:
Please publish the attached Public Hearing Notice twice, on May 24`h and May 31 S`, in both legal and display.
Thank you!
D&n*w.SW6t7
Deputy City Clerk
City of Huntington Beach
2000 Main Street
Huntington Beach, CA 92648
(714)374-1649
Donna.Switzergsurfcity-hb.org
z
PUBLIC HEARING
CITY OF HUNTINGTON BEACH
Notice of Public Hearing on the Proposed City Gann Appropriation
Limit for Fiscal Year 2018/2019.
Notice is hereby given that a public hearing will be held by the City Council of the
City of Huntington Beach,in the Council Chambers of the Civic Center,Huntington
Beach located at 2000 Main Street,at the hour of 6:00 PM,or as soon as possible
thereafter on Monday,the 18th day of June 2018,for the purpose of considering
the Gann Appropriation Limit for Fiscal Year 2018/2019.
The Gann Appropriation Limit for Fiscal Year 2018/2019 totals$921,344,622.The
Gann Appropriation Limit calculation for Fiscal Year 2018/2019 may be reviewed
by the public from 8:00 AM to 5:00 PM,Monday through Friday in the City Clerk's
Office at City Hall,2000 Main Street,second floor;the City's Central Library located
at 7111 Talbert Avenue;and all branch libraries.
All interested persons are invited to attend to express their opinions for,or against,
the proposed Gann Appropriation Limit revisions with written or oral comments.
Written communications to the City Council should be mailed to the Office of the
City Clerk at the address below. Further information may be obtained from the
Finance Department,2000 Main Street,Huntington Beach,CA,92648-2702 or by
telephone(714)536-5630.
The City of Huntington Beach endeavors to accommodate persons of handicapped
status in the admission or access to,or treatment or employment in,city programs
or activities.The City of Huntington Beach is an equal opportunity employer.
Dated:May 24,2018 City of Huntington Beach
May 31,2018 By:Robin Estanislau,City Clerk
2000 Main Street
Huntington Beach,CA 92648-2702
Telephone:(714)536-5405
Published:The Huntington Beach Wave 11123186
City of Huntington Beach
�,ann Appropriation Limit
FY 2018/19
June 18,2018
Presented by the Finance Department
Gann Appropriation Limit
State Government Code section 7910 requires
adoption of appropriation limit annually before the
start of a fiscal year, pursuant to Article 13B of the
State of California Constitution (November 1979)
Gann Limit establishes a limit on the proceeds of
taxes that may be appropriated for spending in a
fiscal year
Limit may increase annually in two ways:
Per Capita Personal Income in California or
Assessment Roll of Local Non-Residential New
Construction (whichever is greater)
6/18/2018
County or City Population (whichever is greater)
SUPPLEMENTAL
COMMUNICATION
Moe1
6/18/2018
Gann Limit •
Description Amount 2017/18 Appropriation Limit $882,638,091
Multiplied by percentage growth in State Per Capita 1.0367
Personal Income
Multiplied by change in County Population 1.0069
Proposed FY 2018/19 Appropriation Limit $921,344,622
General • appropriation fori
million which is significantlybelow the
Gann Limit
Recommended •
Adopt Resolution No. 2018-37, a Resolution of
the City Council of the City of Huntington
Beach Establishing . • • • • •
Limit for FiscalYear 1 i 1
a
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