TO:
Honorable Mayor and Members of the City Council
FROM:
Bruce Moe, Acting City Manager
SUBJECT:Title
Public Hearing and Adoption of Fiscal Year 2014-2015 Operating Budget: Appropriation (Gann) Limit (Acting City Manager Moe).
CONDUCT PUBLIC HEARING; ADOPT RESOLUTION NO. 14-0037 AS PART OF THE OPERATING BUDGET
Line
________________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that the City Council: adopt Resolution No. 14-0037 establishing the appropriation limit for Fiscal Year 2014-2015 as part of the Operating Budget.
Body
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action.
BACKGROUND:
In 1980, California voters adopted Article XIIIB of the California State Constitution, commonly referred to as the Gann Initiative or Gann Appropriations Limit, placing limits on the amount of tax proceeds that State and local agencies can appropriate each year. The City's limit is adjusted each year for inflation, population and other factors.
On June 5, 1990, Proposition 111 was voted into California law. Among other provisions, Proposition 111 provided for changes in the calculation of the Gann Appropriation Limit. The annual adjustments to the spending limit were liberalized by Proposition 111 to be more closely linked to the rate of economic growth in personal income or the percent increase in the local tax roll due to non-residential property construction. Additionally, cities can choose to use the rate of change in population either within the City or County, whichever is higher. The City utilized elements of these adjustment factors in calculating this year's Gann Appropriation Limit. The Gann calculation is reviewed annually by the City's external audit firm as part of the annual audit process.
DISCUSSION:
Staff has calculated the Gann limit to be $65,706.566 The City's tax proceeds subject to the FY 2014-2015 Gann Limit equal $40,...
Click here for full text