****#sss FROM: DARIA CARRILLO, FINANCE DIRECTOR ESTABLISHING THE SUBJECT! RESOLUTION NO. 28l20rg APPROPRIATIONS LIMIT. 5. t.

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1 THIS MATERIAL BEEN BY: MANAGER CORTE MADERA TOWN COUNCIL STAFF REPORT REPORT DATE: June 4,2018 MEETING DATE: June 19,2018 TO MAYOR AND MEMBERS OF THE TOWN COLINCIL FROM: DARIA CARRILLO, FINANCE DIRECTOR SUBJECT! RESOLUTION NO. 28l20rg APPROPRIATIONS LIMIT PURPOSE: ****#sss ESTABLISHING THE To comply with the requirement of establishing the appropriations limit for fiscal year STAF'F RECOMMENDATION: That Council approve the attached resolution establishing the appropriations limit for fiscal year OPTIONS: 1. Approve the attached resolution establishing the appropriations limit. 2. Direct staff to make changes to the attached resolution. TOWN MANAGERIS RECOMMENDATION: Support staff s recommendation. ENVIRONMENTAL IMPACT: Not applicable. FISCAL IMPACT: There is no financial impact associated with this resolution. BACKGROUND/DISCUSSION : Under Proposition 4 of the State of California, municipalities are limited in the amount of revenue that they may spend each fiscal year. The limit is calculated using a formula that includes change in 5. t.ii

2 population and inflation, as defined by the State. Also known as the Gann limit, the limit is set each yearby resolution of the Town Council. Attached is a worksheet prepared by staff showing the Gann Limit calculation for fiscal year The calculation shows that the amount of revenue that the Town estimates it will collect is $27,445,358 below the amount it is allowed to spend. CONCLUSION: Staff recommends that Town Council approve the attached resolution. ATTACHMENTS: l. Resolution No , A Resolution of the Town Council of the Town of Corte Madera Establishing the Appropriations Limit for Fiscal Year Exhibit A: Appropriations Limit Data, Summary

3 ATTACHMENT 1 Resolution No , A Resolution of the Town Council of the Town of Corte Madera Establishing the Appropriations Limit for Fiscal Year

4 RESOLUTION NO. 28/2018 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF CORTE MADERA ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR L9 WHEREAS, in November 1979, Proposition 4 (the GANN Initiative) was which added Article XIII B to the State constitution, placing limits on the amount that all govefilment entities may spend; and approved, ofrevenue WHERAS, the provisions of that Article establish maximum limitations, commonly called "Gann Limits", for public agencies; and WHEREAS, the Town must establish a GANN limit in accordance with the provisions of Article XIII B; and WHEREAS, pursuant to Government Code Section 7910, and based on documentation submitted by Town stafl and acknowledging that the documentation has been available to the public for the required period of time; NOW' THEREFORE BE IT HEREBY RESOLVED, that the Town Council for the Town of Corte Madera establishes the appropriations limit for the Town of Corte Madera for fiscal year under Article XIII B of the State constitution, as shown on Exhibit A in the amount of $38,797,128 and IT IS HEREBY CERTIFIED that the foregoing Resolution was duly and regularly adopted by the Town of Corte Madera of Marin County at a regular meeting thereof held on June 19, 2018, to wit: ******** AYES: NOES: ABSENT: Carla Condon, Mayor ATTEST: Rebecca Vaughn, Town Clerk

5 Exhibit A: Appropriations Limit Data, Summary

6 APPROPRIATIONS LIMIT DATA TOWN OF CORTE MADERA 2OL SUMMARY 2OL7-2OL8 APPROPRIATIONS LI M IT 35,880,804 CA LCU TATIO N O F 2OL8-2OL9 A PPRO PRIATI O NS II M IT L. Annual Change Factors Per Capita Personal lncome or 3.670% <= Non-residential Assessed Valuation plus o.ooo% Corte Madera Population or 4.300% Marin County Population ( whichever is greoter) o.ooo% 2. Calculation: ( ) X ( ) = 7.08t APPROPRIATIONS LIMIT 2OL8.2OT9 ESTIMATED TAX PROCEEDS SUBJECT TO APPROPRIATIONS TIMIT Current Year Property Taxes 4,8L2,299 ERAF 597,000 Supplemental Property Taxes 106,000 Tra nsient Occu pa ncy Tax 908,000 Sales Tax 6,5go,ooo Measure B Sales Tax 2,550,000 Property Transfer Tax 90,000 Business License Tax 570,000 Paramedic Tax 510,000 Property Tax ln Lieu of Motor Vehicle License Fees L,O52,480 Homeowners Exemption 22,778 TOTAL TAX PROCEEDS SUBJECT TO LIMIT 2OL8.2OL9 EXPENDITURES EXEMPT FROM LIMIT Social Security payments 6,200 Unemployment lnsurance Capital Equipment: Technology 160,000 Capital Facilities and Road Projects L,043,967 Measure B Road Projects and Capital Projects 4,437,475 Debt Service -- MERA/Police Facility/Park Madera Center 804,644 TOTAT EXPENDITURES EXEMPT FROM LIMIT 2OT8-2OL9 APPROPRIATIONS SUBJECT TO TIMIT 38,797,L28 L7,797,956 6,446,L86 LL,35L,770 2OL8-2OI9 ESTI MATE D LEEWAY 27,445,358