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HomeMy WebLinkAboutAGENDA REPORT 1998 0617 CC REG ITEM 11C?08 1 ?14 ITEM 1,1409 AGENDA REPORT CITY OF MOORPARK, CALIFORNIA CITY OF MOORPARK City Council Meeting of L°-11-cl$ TO: Honorable City Council ACTION: {-d DQ fed Re50. N°_' q8- I►41-7 FROM: Martin R. Cole, Senior Management Analys Department of Administrative Services BY: `71" DATE: June 5, 1998 (CC Meeting of June 17, 1998) SUBJECT: Consider Resolution 98- establishing the City of Moorpark's "Gann Appropriation Limit" for Fiscal Year 1998/1999 BACKGROUND Government Code Section 7910 requires each governmental entity within California to establish its annual appropriation limit by resolution at a regularly scheduled or noticed special meeting of the entity. The attached resolution complies with the referenced section of the government code and Article XIII B of the State Constitution. As you will note by the attached resolution, no taxes will be collected in excess of our appropriation limit in Fiscal Year 1998/1999. DISCUSSION In 1994, the Ventura County Superior Court validated the City's process used to correct a divergence between revenue projections by LAFCO at the time of the City's incorporation and actual receipts. Based upon the Court's decision, the base year appropriation limit was adjusted to $2,400,000 (with the base year being FY 1983/1984, the City's first year of incorporation). The Gann Appropriation Limit for Fiscal Year 1997/1998 was $11,011,629. Utilizing the methodology required by Section 7910 which takes into account a growth in population and a per capita price factor (to account for changes in the cost of living), staff has calculated the "Gann Appropriation Limit" for FY 1998/1999 to be $11,780,241 (with a per capita personal income change factor of 4.15 and a population change factor of 2.72). Please note that capital project appropriations are not subject to the Gann Appropriation Limit. The City's estimated appropriation for FY 1998/1999 net of capital projects is well below this ceiling. RECOMMENDATION That the City Council adopt Resolution No. 98 - establishing the City's Gann Appropriation Limit for Fiscal Year 1998/1999. ooul.k_ RESOLUTION NUMBER 98 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 1998/1999 WHEREAS, Article XIII B of the State Constitution limits annual appropriations of state and local governments; and WHEREAS, Government Code Section 7910 requires that a city establish its annual appropriation limit by resolution at a regularly scheduled or noticed special meeting; and WHEREAS, the Fiscal Year 1998/1999 appropriation limit has been calculated in accordance with the State Constitution and applicable sections of the Government Code by adjusting the Fiscal Year 1997/1998 appropriation limit of $11,011,629 for a per capita change of 4.15% and a population change of 2.72% as determined by the State Department of Finance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES RESOLVE AS FOLLOWS: Section 1. The appropriation limit for Fiscal Year 1998/1999 is hereby declared to be $11,780,241. PASSED, APPROVED AND ADOPTED this 17th day of June, 1998. Patrick Hunter Mayor ATTEST: Deborah Traffenstedt City Clerk