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HomeMy WebLinkAbout18- Finance CITY OF SAN BERN. MINO - REQUEST F "'R COUNCIL ACTION From: FRED WILSON, ACTING DIRECTOR OF FINANCE Subject: APPROPRIATION LIMIT FOR FISCAL YEAR 1992/93 Dept: FINANCE Date: JUNE 24, 1993 Synopsis of Previous Council action: 10/23/91 Resolution #91-429 adopted. 9/05/90 Resolution #90-370 adopted. Recommended motion: Adopt Resolution Signature Contact person: lj: ed Phone: Supporting data attached: Ward: NIA FUNDING REQUIREMENTS: Amount: Source: Finance: Council Notes: 75-0262 Agenda Item No. Z2 CITY OF SAN BERNDINO - REQUEST COUNCIL ACTION STAFF REPORT In November, 1979, the voters of the State of California approved Proposition 4 , commonly known as the (Paul) Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government. Proposition 4 became effective for the 1980-81 fiscal year but the formula for calculating the limits was based on the 1978-79 "base year" revenues. The limit is based on actual appropriations during the 1978-79 fiscal year, and is increased each year using the growth of population and inflation. Article XIIIB attempts to restrict spending at all levels of government in California. During any fiscal year a city may not appropriate any proceeds of taxes they receive in excess of their limit. Any excess funds remaining after the second year have to be returned to the taxpayers by reducing tax rates or fees. The Appropriation Limit applies to "all taxes levied by and for" an agency. The funds constrained by Article XIIIB is the General Fund, Capital Outlay Funds and Special Revenue Funds. Attachment A details the total appropriations subject to the Gann Limitation which is $82, 329, 500. As noted on Attachment B, the CPI change for the 1992/93 fiscal i year is 3 .84%, the population change is 2 .480. We are in the 13th year ratio change which is 3 . 3356 times our base year Appropriations of $35, 131, 011. This gives us our appropriations ' limit for the 1992/93 fiscal year in the amount of $117 , 183 , 000. Files which are open for public review are located in the Finance Department. Notice of the availability of these records has been posted at various public locations. Please adopt resolution based on above calculation. 75-0264 ATTACHMENT A CITY OF SAN BERNARDINO 1992-93 APPROPRIATIONS SUBJECT TO LIMIT TOTAL 1992/93 FINAL BUDGET $107,097,558 LESS: APPROPRIATION NOT SUBJECT TO LIMITATION ENTERPRISE FUND REFUSE (127) $14,078,811 INTERNAL SERVICE FUNDS LIABILITY INSURANCE (629) $2,227,943 TELEPHONE SUPPORT (630) 536,655 MOTOR POOL (635) 3,285,727 COMBINED HEALTH INSURANCE (676) 319,328 UNEMPLOYMENT INSURANCE (677) 130,000 WORKER COMPENSATION (678) 1,835,561 DATA PROCESSING 969,187 TOTAL 9,304,401 OTHER FUNDS SPECIAL GAS TAX (126) 500,000 DEBT SERVICE GENERAL GOVERNMENT (001) $187,600 LIBRARY (105) 697,246 TOTAL 884,846 TOTAL EXCLUSIONS NOT SUBJECT TO LIMITATION 24,768,058 TOTAL APPROPRIATIONS SUBJECT TO LIMITATION $82,329,500 ATTACHMENT B 1992/93 CITY OF SAN BERNARDINO APPROPRIATION LIMITATION COMPUTATION (PERMITTED GROWTH RATE) 1992/93 CPI CHANGE 3 . 84% I POPULATION CHANGE 2 . 48% CPI CHANGE CONVERTED TO RATIO 1 .0384 POPULATION CHANGE CONVERTED TO RATIO 1 . 0248 CALCULATION 1 . 0384 X 1 . 0248 = 1 . 0642 1991/92 LIMIT 3 . 1344 (PRIOR PEARS ) X 1 . 0642 = 3 . 3356 1992/93 APPROPRIATION LIMIT --------------------------- BASE YEAR - $35 , 131 , 011 X 3 .3356 = $117 , 183 ,000 LIMITATION PRIOR TO PROPOSITION 108. 1 RESOLUTION NO. 2 A RESOLUTION OF THE CITY OF SAN BERNARDINO, ESTABLISHING, THE APPROPRIATION LIMIT FOR THE FISCAL YEAR 1992/93 FOR THE CITY 3 OF SAN BERNARDINO IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA CODE, AND REPEALING RESOLUTION NO. 4 91-429. 5 WHEREAS, Article XIII B of the Constitution of the State of 6 California as proposed by the Initiative Measure approved by the 7 people at the special statewide election held on November 5, 8 1979, provides that the total annual appropriations subject to 9 limitation of each local government shall not exceed the 10 appropriations limit of such entity for the prior year adjusted 11 for changes in the cost of living and population except as 12 otherwise specifically provided for in said Article; and 13 WHEREAS, Section 7910 of the Government Code provides that 14 each year the governing body of each local jurisdiction shall, by 15 resolution, establish its appropriations limit for the following 16 fiscal year pursuant to Article XIII B at a regularly scheduled 17 meeting or a noticed special meeting and that fifteen days prior 18 to such meeting, documentation used in the determination of the 19 appropriations limit shall be available to the public; and 20 WHEREAS, the City Council of the City of San Bernardino 21 wishes to establish the appropriations limit for fiscal year 22 1992/93 for the City of San Bernardino. 23 24 25 26 27 1 28 0 1 NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE 2 CITY OF SAN BERNARDINO, CALIFORNIA, AS FOLLOWS: 3 SECTION 1: That it is hereby found and determined that the 4 documentation used in the determination of the appropriations 5 limit for the City of San Bernardino for fiscal year 1992/93 was 6 available to the public in the Finance Department of said City at 7 least fifteen days prior to this date. 8 SECTION 2 : That the appropriations limit for the City of 9 San Bernardino as established in accordance with Section 7902 (a) 10 of the Government Code is $117, 183 , 000. 11 SECTION 3 : That resolution 91-429 be repealed. 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 2 28 I A RESOLUTION OF THE CITY OF SAN BERNARDINO, ESTABLISHING, THE APPROPRIATION LIMIT FOR THE FISCAL YEAR 1992/93 FOR THE CITY 2 OF SAN BERNARDINO IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA CODE, AND REPEALING RESOLUTION NO. 3 91-429 . 4 COUNCIL MEMBERS AYES NAYS ABSTAIN ABSENT 5 NEGRETE 6 CURLIN 7 HERNANDEZ 8 OBERHELMAN 9 OFFICE VACANT 10 POPE-LUDLAM 11 MILLER 12 13 CITY CLERK 14 The foregoing resolution is hereby approved this day 15 of , 1993 . 16 17 Tom Minor, Mayor 18 City of San Bernardino 19 Approved as to form and legal content: 20 JAMES F. PENMAN 21 City Attorney 22 23 By: 24 25 26 27 3 28