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HomeMy WebLinkAboutResolution 2008-27 to Establish the Annual Appropriation LimCouncil/Agency Meeting Held Deferred/Continued to Appr ved ❑ Conditionally Approved ❑ Denied City Irk Sign to e Council Meeting Date 6/16/2008 Department ID Number FN 08-002 Ile e SUBMITTED TO HONORABLE MAYOR AND CITY COUNCIL MEM S SUBMITTED BY PAUL EMERY, INTERIM CITY ADMINISTRATO PREPARED BY DAN T VILLELLA, CPA FINANCE DIRECTOR SUBJECT ADOPT RESOLUTION TO ESTABLISH ANNUAL APPROPRIATION LIMIT FOR FISCAL YEAR 2008/2009 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 Lotion to Adopt Resolution Number, 2008-27 , `A Resolution of the City Council of the City of Huntington Beach Establishing the Appropriation Limit for Fiscal Year 200812009" of $602 877 623 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 REQUEST FOR CITY COUNCIL ACTION MEETING DATE 6/1612008 DEPARTMENT ID NUMBER FN 08-002 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 over the preceding year due to the addition of local nonresidential new construction (whichever is greater) For this years calculation the 1 03 percent increase in County population was greater than the increase in the city s population of 0 34 percent The 5 56 percent increase in the assessment roll from the addition of local nonresidential construction was greater than the 4 29 percent increase in per capita personal income The proposed appropriation limit for Fiscal Year 2008/2009 was calculated as follows Fiscal Year 2007/2008 Adopted Appropriation Limit Multiplied by change in assessment roll from addition of local nonresidential construction Multiplied by change in county population Proposed Fiscal Year 2008/2009 Appropriation Limit $565 300 579 1 0556 1 0103 $602,877,623 Appropriations of revenues controlled by the Gann Limit are primarily in the General Fund General Fund appropriations for Fiscal Year 2008/2009 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 Strategic Plan Goal Financial - 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) Pagie Nuffiber No. Des011ption 1 Resolution Number 2008-27 A Resolution of the City Council of the City of Huntington Beach Establishing the Appropriation Limit for Fiscal Year 200812009 2 5/29/2008 11 12 AM ATTACHMENT RESOLUTION NO 2008-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2008-2009 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 $602,877 623 for the fiscal year 2008-2009 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 16th day of June , 2008 REVIEW A D APPROVED AP OVED AS TO FORM City Administrator ty Attorney s 28 0� INITIAT AND APPROVED finance Director 22737 Res No 2008-27 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 16, 2008 by the following vote AYES Hansen Hardy Bohr Cook Coerper Green Carchio NOES None ABSENT None ABSTAIN None Cit Jerk and ex-officio (Aerk 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 2008/2009 COUNCIL MEETING DATE June 16 2008 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Apphcable ❑ Tract Map Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed Ln full by the Clty Attorney) Not Applicable Subleases Third Party Agreements etc (Approved as to form by City Attorney) Not Applicable pphcable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not A plicable Fiscal Impact Statement (Unbudgeted over $5 000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached t Apphcable Commission, Board or Committee Report (I' applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Dei iial Attached ❑ Not Applicable EXPLANATION FOR IAISSING ATTACHMENTS REVIEWED RETURNED FOR LARDED Administrative Staff Deputy City Administrator Initial q!!y Administrator Initial City Clerk ( ) RCA Author ROBERT SEDLAK