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Home My WebLink About23 - Fiscal Year 2012-13 Appropriations LimitNEWPORT = CITY OF NEWPORT yg T J E � tlb A.0 19 L9�! CqC /FOAM City Council Staff Report Agenda Item No. 23 June 12, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Finance Department Tracy McCraner, Finance Director/Treasurer 949 - 644 -3123, tmccraner @newportbeachca.gov PREPARED BY: Susan Giangrande, Budget Manager APPROVED: a k� TITLE: Adoption of Fiscal Year 2012 -13 Appropriations Limit ABSTRACT: As a governmental entity, the City is subject to the Gann Spending Limitation Initiative, which limits the amount of annual appropriations of tax proceeds. The limitation is based upon the prior fiscal year amount, adjusted for changes in population combined with the change in California per capita personal income and must be adopted by Resolution. RECOMMENDATION Adopt, by Resolution 2012- 45 , the City's Appropriations (Gann) Limit for Fiscal Year 2012 -13 in the amount of $15u,988,947. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: Article XIIIB of the California Constitution specifies that appropriations of government entities may increase annually only by a limited amount, primarily to allow for population increases and inflation. Each local government is required to establish its appropriations limit by resolution each year at a regularly scheduled or noticed special meeting of the City Council. The attached resolution submitted for Council approval fulfills this requirement. The calculation of the City's Appropriation Limit for Fiscal Year 2012 -13 is Adoption of Fiscal Year 2012 -13 Appropriations Limit June 12, 2012 Page 2 FY 2011 -12 Appropriations Limit $ 144,448,989 Inflation Adjustment Factor' 1.0377 Population Adjustment Factor' 1.0073 FY 2012 -13 Appropriations Limit $ 150,988,947 ' Based on California per capita income increases as provided by the California Department of Finance, May 2012. 2 Based on Newport Beach population growth as provided by the California Department of Finance, May 2012. The City of Newport Beach estimated proceeds from taxes for Fiscal Year 2012 -13 is $118,802,556, or $32,186,391 under the Appropriations Limit. Calculation of proceeds of taxes can exclude certain public fund uses, including categories of debt service, contribution to some types of reserves, and federal mandates. The exclusion calculation was not performed as we continue to maintain appropriations significantly below our Appropriations Limit. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). The Public Notice for this item was published in the Daily Pilot on June 2, 2012. Submitted by: Tracy McCraner Finance Director/Treasurer Attachments: Resolution 2012- 43 RESOLUTION NO. 2012- 43 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DETERMINING AND ESTABLISHING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2012 -13 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 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 2012 for the City of Newport Beach is $150,988,947. The computation of appropriations for the 2012 -13 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 2012 -13 fiscal year. ATTEST: ADOPTED this 12th day of June, 2012. City Clerk Mayor LEGAL NOTICE NOTICE IS HEREBY GIVEN THAT the City Council of the City of Newport Beach will establish the City's Appropriation Limit for the 2012 -13 Fiscal Year, pursuant to Article 13B of the State Constitution on the 12`h day of June, 2012, at the hour of 7:00 p.m. in the City Hall Council Chambers, 3300 Newport Boulevard, Newport Beach, CA 92663. APPROPRIATION LIMIT: Article 13B Appropriation for 2012 -13 Fiscal Year $150,988,947 Total Appropriations Subject to Limit 118,802,556 Amount Under Limit 32.186.39. For questions please contact Tracy McCraner, Finance Director, at (949) 644 -3127 or tmccranerna newnortbeachca.gov. C i Leilani Brown, City Clerk City of Newport Beach STATE OF CALIFORNIA) )SS. COUNTY OF ORANGE ) I am a citizen of the United States and a resident of the County of Los Angeles; I am over the age of eighteen years, and not a party to or interested in the notice published. I am a principal clerk of the NEWPORT BEACH /COSTA MESA DAILY PILOT, which was adjudged a newspaper of general circulation on September 29, 1961, case A6214, and June 11, 1963, case A24831, for the City of Costa Mesa, County of Orange, and the State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Saturday, June 2, 2012 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on June 7, 2012 at Los Angeles, California �lf/'llcGti;(� �Mf' Signature RECEIVED 2012 JIJN I I AN 9: 4 2 �_ n „f 0 r? CLERK Cliff (;