8E Consent 2008 0616 - Laserfiche WebLink

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CITY OF SAN LEANDRO STAFF REPORT DATE: June 16, 2008 TO: FROM: BY: John Jermanis, City Manager Perry Carter, Interim Finance Director Finance Department J APPROVED AND FORWARDED TO CITY COUNCIL Jo : Jermanis Ci anager Mary Ann Perini, Budget & Compliance Manager /~~ Finance Department , SUBJECT PROJECT/PROJECT DESCRIPTION: RESOLUTION ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 2008-2009 SUMMARY AND RECOMMENDATION Staff recommends City Council approval of a resolution establishing the City's appropriation limit for FY 2008-09. Staff has completed the calculations required for determining the City's appropriation limit for FY 2008-09, which is $139,427,250. Budget appropriations that are subject to the FY 2008-09 limitation is a total of $63,024,954, which is $76,402,296 below the limit. BACKGROUND Article XIIIB of the California State Constitution, was approved by California voters in November 1979, and modified by Proposition 111 in 1990. This article more commonly referred to as the Gann Initiative or Gann Limit, placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79, modified for changes in inflation and population in each subsequent year. Each year the City Council must adopt, by resolution, an appropriation limit for the following year. Using data provided by the State of California and the State Department of Finance, the City's Appropriation Limit for 2008-09 has been computed to be $139,427,250. Appropriations subject to the limitation in the 2008-09 budget total $63,024,954. Additional appropriations to the budget funded by non-tax sources, such as charges for service, restricted revenues, grants or beginning fund balances, are not affected by the Appropriation Limit.