In November 1979, the citizens of California passed Proposition 4 (Gann Initiative amending Article XIII B) which placed limitations on the finances of state and local governments.  It also provided a method of calculating and adopting the limitations.  The State Department of Finance provides guidelines from the legislation and Article XIII B for consistent statewide implementation (See Exhibit A).  The District is utilizing these guidelines in the calculation process.

The Fiscal Year 2016-17 appropriations limit for the Garden Grove Sanitary District is $12,435,737.  The recommended budget appropriations subject-to-limit is $2,401,000.  The difference of $10,034,737 is the “gap” from which additional appropriations can be made. Section 7900 et seq. of the Government Code requires local governments to adopt a resolution setting the limitations at a regularly scheduled meeting or noticed special meeting.  There is no requirement in the State Code for a public hearing prior to adoption of the resolution.

It is recommended that the Sanitary District Board:

• Adopt the Appropriations Limit Resolution for the Garden Grove Sanitary District setting the appropriations limit for Fiscal Year 2016-17 at $12,435,737.