HomeMy WebLinkAboutRESOLUTION 2007-38 - ESTABLISH THE ANNUAL APPROPRIATION LIMI�hl
Council/Agency Meeting Held:
Deferred/Continued to:
)(Appr vet ❑ Conditionally Approved ❑ Denied
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Council Meeting Date: 7/2/2007
Department ID Number: FN 07-004
CITY OF HUNTINGTON BEACH
REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY C NCIL MEMBERS
SUBMITTED BY: PEN EL PE CULBRETH-GRAFT, DPA, CITY ADM INIST TOR
PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR
SUBJECT: ADOPT RESOLUTION TO ESTABLISH ANNUAL APPROPRIATION
LIMIT FOR FISCAL YEAR 2007-2008
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 2007-38 , "A
Resolution of the City Council of the City of Huntington Beach Establishing the Appropriation
Limit for Fiscal Year 2007-2008" of $565,300,579.
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.
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 7/2/2007 DEPARTMENT ID NUMBER: FN 07-004
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 2007-2008 was calculated as follows:
Fiscal Year 2006-2007 Adopted Appropriation Limit $536,862,296
Multiplied by change in per capita personal income 1.0442
Multiplied by change in county population 1.0084
Proposed Fiscal Year 2007-2008 Appropriation Limit $565,300,579
Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund.
General Fund appropriations for Fiscal Year 2007-2008 will 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.
Strategic Plan Goal: Not applicable
Environmental Status: Not applicable
Attachment(s):
1. Resolution Number 2007-38 "A Resolution of the City
Council of the City of Huntington Beach Establishing the
Appropriation Limit for Fiscal Year 2007-2008"
-2- 6/5/2007 4:01 PM
ATTACHMENT #1
RESOLUTION NO. 2007-38
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF HUNTINGTON BEACH ESTABLISHING THE
APPROPRIATION LIMIT FOR FISCAL YEAR 2007-2008
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 1313 of the California
Constitution and the formula set out therein, there is hereby established an appropriation limit of
$565,300,579 for the fiscal year 2007-2008.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 2 n d day of 1111 y , 2007.
REVIEWED AND APPROVED:
o-V " 1s =0-
ut ?1"4 1-
APPROVED
ity Admi istrator City Attorney
FORM:
G
AND APPROVED:
inance Director
07-1099110626
Res. No. 2007-38
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 the 2nd day of July, 2007 by the following
vote:
AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy
NOES: None
ABSENT: None
ABSTAIN: None
y Clerk and ex-offic67CIerk of the
City Council of the City of
Huntington Beach, California
RCA ROUTING SHEET
INITIATING DEPARTMENT:
FINANCE
SUBJECT:
ADOPT RESOLUTION TO ESTABLISH ANNUAL
APPROPRIATION LIMIT FOR FISCAL YEAR 2007/2008
COUNCIL MEETING DATE:
July2, 2007
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
Not Applicable
❑
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 Applicable
Bonds (If applicable)
El
Notached
t Applicable
Staff Report (If applicable)
Nott Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
RCA Author: Robert Sedlak, Accounting Manager x5907