HomeMy WebLinkAbout28 - Appropriation Limit (Gann) Adoption - 1999-00June 14, 1999
Council Agenda Number 28
CITY OF NEWPORT BEACH
Administrative Services Department
Resource Management-Human Resources-Fiscal Services •M.I.S.•Revenue•Accounting
14 June 1999
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
From:
Dennis Danner, Administrative Services Director /�) /
SUBJ:
ADOPTION OF THE ANNUAL APPROPRIATION (GANN) LIMIT
Background: Article XIIIB of the California Constitution (Proposition 4) specifies
that appropriations of government entities may increase annually only by a limited
amount (primarily to allow for population increases and inflation). As in the past, SB
1352 (Revenue and Taxation Code Section 7910) requires each local government to
establish its appropriations limit by resolution each year at a regularly scheduled or
noticed special meeting. The attached resolution submitted for Council approval
fulfills this requirement.
It should be noted that even without calculating authorized exclusions, the amount by
which our Proceeds of Taxes are under the Gann Limit during the past seven years has
been sufficient to provide a reasonable margin of comfort.
1990 -91 Gann Limit Margin:
$2,814,736
1991 -92 Gann Limit Margin:
$6,955,931
1992 -93 Gann Limit Margin:
$6,527,790
1993 -94 Gann Limit Margin:
$15,536,246
1994 -95 Gann Limit Margin:
$16,193,661
1995 -96 Gann Limit Margin:
$19,624,749
1996 -97 Gann Limit Margin:
$19,711,288
1997 -98 Gann Limit Margin:
$20,285,768
1998 -99 Gann Limit Margin:
$20,344,472
1999 -00 Gann Limit Margin:
$21,751,495
14 June 1999
Page 2
There are several factors which have a bearing on the Gann Limit, and on our
expenditures subject to the Limit. However, actions by the State reducing our tax
revenues, along with weak economic conditions during the early and mid 1990's
established the trend which can be seen above. The detailed population and inflation
adjustment calculations are still required, but they have been reduced to a level of
relative insignificance by these larger factors. We are still required to perform the
calculations and take appropriate Council action, but, unless the law is changed, it is
apparent that staying under the Gann Limit is not something we are going to have to
worry about any time soon.
Recommendation: Adopt the City's Appropriation (Gann) Limit for the 1999 -00 fiscal
year in the amount of $21,751,495.
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WHEREAS, Article XIIIB was added to the California
Constitution at the special State -wide election held November 6,
1979 (commonly known as Proposition 4); and
WHEREAS, Government Code Section 7910 was added to
Chapter 12.05 by Statute at the Regular Session of the California
Legislature; and
WHEREAS, Proposition 111, which, among other things,
provides new annual adjustment formulas for the Appropriations
Limit, was approved by the voters in June, 1990, and
WHEREAS, The League of California Cities and the State
of California Department of Finance have published population and
per capita income growth indexes, as well as guidelines for the
uniform application of Proposition 111, and
WHEREAS, Government Code Section 7910 requires the
governing body of each local jurisdiction to adopt, by
resolution, its appropriations limit; and
WHEREAS, said appropriations limit must be adhered to
in preparing and adopting this City's annual budget.
NOW, THEREFORE, the City Council of the City of Newport
Beach does hereby resolve as follows:
Section 1: In accordance with Article XIIIB of the
California Constitution and Government Code Section 7910, the
appropriations limit for fiscal year commencing 1 July 1999 for
the City of Newport Beach is $78,445,375. The computation of
appropriations for the 1999 -00 fiscal year are set forth in
detail in the attachment hereto, which is incorporated as though
fully set forth herein.
Section 2: Said appropriations limit shall be adhered
to in the City of Newport Beach budget for the 1999 -00 fiscal
year.
ADOPTED this 14th day of June, 1999.
Mayor
ATTEST:
City Clerk
RESOLUTION
NO. 99-
A RESOLUTION OF
THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
DETERMINING AND
ESTABLISHING AN
APPROPRIATIONS LIMIT FOR FISCAL
YEAR 1999 -00 IN
ACCORDANCE WITH
ARTICLE XIIIB OF THE CALIFORNIA
CONSTITUTION AND
GOVERNMENT CODE
SECTION 7910.
WHEREAS, Article XIIIB was added to the California
Constitution at the special State -wide election held November 6,
1979 (commonly known as Proposition 4); and
WHEREAS, Government Code Section 7910 was added to
Chapter 12.05 by Statute at the Regular Session of the California
Legislature; and
WHEREAS, Proposition 111, which, among other things,
provides new annual adjustment formulas for the Appropriations
Limit, was approved by the voters in June, 1990, and
WHEREAS, The League of California Cities and the State
of California Department of Finance have published population and
per capita income growth indexes, as well as guidelines for the
uniform application of Proposition 111, and
WHEREAS, Government Code Section 7910 requires the
governing body of each local jurisdiction to adopt, by
resolution, its appropriations limit; and
WHEREAS, said appropriations limit must be adhered to
in preparing and adopting this City's annual budget.
NOW, THEREFORE, the City Council of the City of Newport
Beach does hereby resolve as follows:
Section 1: In accordance with Article XIIIB of the
California Constitution and Government Code Section 7910, the
appropriations limit for fiscal year commencing 1 July 1999 for
the City of Newport Beach is $78,445,375. The computation of
appropriations for the 1999 -00 fiscal year are set forth in
detail in the attachment hereto, which is incorporated as though
fully set forth herein.
Section 2: Said appropriations limit shall be adhered
to in the City of Newport Beach budget for the 1999 -00 fiscal
year.
ADOPTED this 14th day of June, 1999.
Mayor
ATTEST:
City Clerk
CITY OF NEWPORT BEACH
COMPUTATION OF APPROPRIATION LIMIT FOR
FISCAL YEAR ENDING 30 JUNE 20009
AS PER ARTICLE X11113, CALIFORNIA STATE CONSTITUTION
PRIOR YEAR INFLATION POPULATION NEW APPROP.
FISCAL YEAR LIMIT ADJUST. (1) ADJUST. (2) LIMIT
1999 -00 $73,740,592 0.0453 0.0177 1 $78,445,375
note (1): Based on California per capita income increases
note (2): Based on Orange County population growth
CALCULATION OF ESTIMATED PROCEEDS OF TAXES FOR
FISCAL YEAR ENDING 30 JUNE 2000
Total Estimated Proceeds of Taxes $56,693,880
Less Authorized Exclusions note (3) $0
Net Proceeds of Taxes $56,693,880
note (3): Since 1999 -00 estimated gross proceeds were substantially less than
appropriations limit, exclusions were not calculated.
AMOUNT UNDER APPROPRIATIONS LIMIT $21,751,495