CITY OF CARMEL-BY-THE-SEA Council Report January 7, 2014 To : From: Submitted by: Subject: Honorable Mayor and Members of the

City Council Jason Stilwell, City Administrator Susan Paul, Administrative Services Director Consideration of a Resolution Adopting the Inflation and City Population as the Factors for the Purpose of Determining the City's Fiscal Year 201213 Gann Limit, and Accepting the Calculated Gann Limit.

Recommendation{s): It is recommended that the City Council adopt the Resolution. Executive Summary: In November, 1979, the California electorate adopted Proposition 4

which was codified into the California Constitution as Article XIII B and provided for the establishment of a maximum appropriation limit for California, and its cities and districts, commonly called the "Gann Limit." This limit acts as a maximum limit that a city or district may spend in a given fiscal year. This Resolution adopts the factors that are used in calculating this limit, accepts the calculated limit, and declares that the fiscal year 2012-13 appropriations do not exceed this calculated limit.
Analysis/Discussion:

Article XIII B does three key things. Specifically, it: Places annual limits (or ceilings) on the appropriations of tax proceeds that can be made by the state, school districts, and local governments in California. These limits are based on the amount of appropriations in the 1978-79 "base" year, as adjusted each year for population growth and cost-of-living factors. Precludes state and local governments from retaining any "excess revenues" (that is, revenues above each jurisdiction's state appropriations limit). Requires the state to reimburse local governments for the cost of certain state mandates. Each year, the State of California calculates and forward s to us the two factors related to local population growth and statewide inflation, which staff used to calculate the appropriations limit (attached).

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Gann Limit Staff Report January 7, 2014 Page2

For fiscal year 2012-13, we expected to realize $12,356,091 in tax revenue, and based on our calculated appropriation limit of $25,499,984, we were under the maximum limit.

Fiscal Impact: Budgeted (yes/no)

None.
Funding Source( general fund, grant, state)

Not applicable

Not applicable

Previous Council Action/Decision History:

This calculation and approval is an annual exercise normally carried out at the same time as the budget process. This was missed during the budget process for FY12-13. The City has always been under the calculated limit.
Attachment:

Resolution

Reviewed by:

City Administrator Asst. City Admin. Public Safety Dir City Engineer

City Attorney Dir of CPB Library Dir

D D D

Administrative Services Dir of Public Svcs Other

D D
D

D D D

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CITY OF CARMEL-BY-THE-SEA CITY COUNCIL RESOLUTION NO. 2014A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ADOPTING THE PER CAPITA PERSONAL INCOME AND CITY POPULATION AS THE FACTORS FOR THE PURPOSE OF DETERMINING THE CITY'S FISCAL YEAR 2012-2013 GANN LIMIT WHEREAS, in NoYember of 1979, the California electorate did adopt Proposition 4, commonly called the Gann Amendment, which added Article XIII-B to the California Constitution; and, WHEREAS, the provisions of that Article establish maximum appropriation limitations, commonly called "Gann Limits," for public agencies; and, WHEREAS, the City must establish a projected Gann limit for the 2012-13 fiscal year in accordance with the provisions of Article XIII-B and applicable statutory law; NOW, THEREFORE, BE IT RESOLVED that this Council does provide public notice that the attached calculations and documentation ofthe Gann limit for the 2012-13 fiscal year is made in accordance with applicable constitutional and statutory law; AND BE IT FURTHER RESOLVED that the City does hereby declare that the appropriations in the Budget for the 2012-13 fiscal year does not exceed the limitations imposed by Proposition 4; AND BE IT FURTHER RESOLVED that the Council provides copies of this resolution along with the appropriate attachments to interested citizens of this city.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this ih day of January 2014 by the following roll call vote: A YES: NOES: ABSENT: ABSTAIN: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNCIL MEMBERS: COUNICL MEMBERS:

[THIS SPACE INTENTIONALLY LEFT BLANK]

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SIGNED,

Jason Burnett, MAYOR ATTEST:

Daryl A. Betancur, CMC Deputy City Clerk

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Carmel-by-the-Sea
Gann Limit Calculation FYE 6/30/2014

Popu lation Factor

Inflation Factor

All
Taxes $ $ $ $ $
$

Property Tax Secured

Property TaxUnsecured

Property Tax Unila~

Property TaxTransfer

Sales & Use Tax

Business License Tax

VLF Tax

TOT

2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 201 1-12 2012-13

1.73 1.35 1.11 1.56 1.015 1.0121 1.0067 1.0156 1.0145 1.0137 1.0059 1.007

7.82 -1 .27 2.31 3.28 1.0526 1.0396 1.0442 1 .0429 1.0062 0 .9746 1.0251 1.0377

1.0969 1.0006 1.0345 1.0489 1.0684 1.0522 1.0512 1.0592 1.0208 0.988 1.0311 1.045

s
$ $
$ $

$ $

15,741 ,192 17,266,514 17,276,873 17,872,926 18,746,912 $ 20,029,200 21 ,074,725 $ 22,153,751 $ 23,465,253 $ 23,953,330 $ 23,665,890 $ 24,401 899 $ 25,499,984 $

8,981,670 10,1 15,000 11 ,105,200 11,2 82,220 10,542,099 10 ,721,568 11,152,661 12,356,091

$ $ $

2 ,724,900

114,000

- $
30,000 32,436 39,500 39,602 39,849 22,514 44,529

115,000

1,845,000

460,000

45,770 305,000 312,800 335,580 352,139 353,246 170 ,338 297.067

3,677,000 3,800,000 4,220,000 4,260,640 3,830,432 3,878,772 4,177,730 4,619,137

$
$ $ $ $

3.050,000 $ 3,415,604 $ 3,599,500 $ 3,869,050 $ 3,824,941 $ 4,264,610 $ 4,215,825 $

130,000 $ 147,960 $ 140.000 $ 153,577 $ 156,577 $ 150,546 $ 174,669 $

$
$ $ $ $ $ $

230,000 $ 204,000 $ 113,000 $ 126,665 $ 136,422 $ 129,890 $ 193,035 $

2,050,000 $ 2,217,000 $ 2,164,000 $ 1.619,968 $ 1,805,510 $ 1,722,659 $ 2,251 ,453 $

520,000 $ 555,400 $ 630,000 $ 550,666 $ 526,251 $ 514,374 $ 560,376 $

$
$ $ $ $ $

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