HomeMy WebLinkAboutAGENDA REPORT 2019 0619 REG CCSA ITEM 10GCITY OF MOORPARK,
CALIFORNIA
City Council Meeting
of June 19, 2019
ACTION Approved Staff
Reco mmendation,
Including Adoption of
Resolution No. 2019-3822.
BY B.Garza
G. Consider Resolution Establishing the Appropriation Limitation for Fiscal Year
2019/2020 for the City of Moorpark at $40,808,451. Staff Recommendation:
Adopt Resolution No. 2019-____. ROLL CALL VOTE (Staff: Irmina Lumbad)
Item: 10.G.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Irmina Lumbad, Interim Finance Director
DATE: 06/19/2019 Regular Meeting
SUBJECT: Consider Resolution Establishing the Appropriation Limitation for
Fiscal Year 2019/2020 for the City of Moorpark at $40,808,451
BACKGROUND
Proposition 4, sometimes referred to as the “Gann Limit”, was approved by the voters of
California on the November 1979 special ballot election. This Proposition created
Article XIII B of the State Constitution which sets forth the calculation of the State and
local jurisdictions’ annual appropriations limit or the “ceiling” on monies that can be
spent from tax revenues. Each year, it requires the governing body of the local agency
to establish the limit, by resolution, before the beginning of the following fiscal year.
Initially, the appropriations limit was annually adjusted by the population growth of each
local agency and the lesser of the change in cost-of-living or the change in California
per capital personal income from the preceding year. Proposition 111 adopted in June
1990, allowed major adjustments to the methodology. Local agencies may select the
higher of percentage change in population within the City, or County; and the higher of
rate of change in California per capita personal income from preceding year, or the rate
of change in the local assessment valuation due to additional non-residential new
construction from the preceding year.
DISCUSSION
On May 1, 2019 the California State Department of Finance notified the local
jurisdictions of the population and price data for use in the appropriations limit
calculation for Fiscal Year (FY) 2019/2020. Based on this letter, the percentage change
in population for the City of Moorpark is 0.52%, while the Ventura County percentage
change is -0.18%. The preceding year’s percentage change in cost-of-living factor per
capita personal income is 3.85%. Information regarding the change in local assessment
Item: 10.G.
720
Honorable City Council
6/19/2019 Regular Meeting
Page 2
valuation in non-residential due to new construction of 1.13% was provided by the City’s
property tax consultants, HDL Coren & Cone.
The City selected to use the percentage change in population for the City of Moorpark
(0.52%) and the percentage change in per capital personal income (3.85%) in adjusting
the prior year’s appropriations limit of $39,092,292. Accordingly, the City of Moorpark’s
limitation for FY 2019/2020 is $40,808,451. Per the Recommended Budget for FY
2019/2020, the appropriation subject to limit is $17,973,809. This brings the City
$22,834,642 or 55.96% under the limit.
FISCAL IMPACT
There is no fiscal impact with the establishment of the FY 2019/2020 appropriations
limit.
STAFF RECOMMENDATION (ROLL CALL VOTE)
Adopt Resolution No. 2019 -____.
Attachments: A. Resolution No. 2019-____
B. Appropriation Limit Calculation
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RESOLUTION NO. 2019-____
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MOORPARK, CALIFORNIA,
ESTABLISHING THE CITY’S APPROPRIATION
LIMITATION FOR FISCAL YEAR 2019/2020
WHEREAS, Article XIII B of the State Constitution limits annual
appropriations from proceeds of tax revenues for state and local governments;
and
WHEREAS, Government Code Section 7910 requires that a city establish
its annual appropriations limitation by resolution at a public meeting of the
legislative body; and
WHEREAS, the Fiscal Year 2019/2020 appropriations limitation has been
calculated in accordance with the State Constitution and applicable sections of
the Government Code by adjusting the Fiscal Year 2018/2019 appropriations
limit of $39,092,292 by the percentage change in the City of Moorpark’s
population of 0.52% and the percentage change of cost-of-living factor based on
the per capita personal income of 3.85% as determined by the State of
California, Department of Finance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MOORPARK DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The appropriations limitation for the City of Moorpark for
Fiscal Year 2019/2020 is hereby determined to be $40,808,451.
SECTION 2. The City Clerk shall certify to the adoption of this resolution
and shall cause a certified resolution to be filed in the book of original
Resolutions.
PASSED AND ADOPTED this 19th day of June, 2019.
__________________________
Janice S. Parvin, Mayor
ATTEST:
_________________________________
City Clerk
Attachment A
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Attachment B
CITY OF MOORPARK
Appropriation Limit Calculation
Article XIIIB of the California State Constitution, commonly referred to as the
Gann Initiative or Gann Appropriations Limit, was adopted by California voters in
1979 and placed limits on the amount of proceeds of taxes that State and local
agencies can appropriate and spend each fiscal year.
The limit is different for every agency and changes each year. The annual limit is
based on the amount of tax proceeds that were authorized to be spent in Fiscal
Year (FY) 1978/1979, modified for changes in inflation and population.
Inflationary adjustments are based on increases in the California per capita
income or the increase in non-residential assessed valuation due to new
construction. An adjustment is also made based on changes in Moorpark’s
population or County population.
At incorporation in FY 1983/1984, the Local Agency Formation Commission
(LAFCO) determined that the initial appropriation limit for the city was $900,000.
The limit was annually adjusted as prescribed by law. However by FY
1988/1989, it became evident that the appropriation limit was set too low and the
City has more revenues that could fund certain levels of service and/or capital
improvement projects. An increase in Gann Limit may be achieved by simple
majority vote by the voters. Thus on June 7, 1988, the voters approved Measure
“C” which increased the City’s appropriation limit for the four year period
beginning FY 1986/1987 through FY 1989/1990 by the amount of proceeds of
taxed collected in excess of said limit for each year mentioned.
Subsequently in June 1993, the City reviewed the original incorporation study
and found that the LAFCO’s assumptions of revenues, which were the basis for
setting the initial appropriation limit of $900,000, were erroneous. A public
hearing was held to gather information and testimony regarding the correction of
the initial limit. By Resolution No. 93-953, the FY 1983/1984 appropriation limit
was corrected based on actual revenues of the City from $900,000 to
$2,400,000. The City Council subsequently authorized the filing of a validation
action with the Superior Court. On November 22, 1994 (Case No. CIV 147270)
the Superior Court of the State of California for the County of Ventura set the
City’s appropriation limit at $2,400,000. The subsequent years’ appropriation
limits were adjusted accordingly.
For FY 2019/2020, the estimated tax proceeds appropriated by the Moorpark
City Council are under the limit. The adjusted Appropriation Limit for FY
2019/2020 is $40,808,451. This is the maximum amount of tax proceeds the City
is able to appropriate and spend in FY 2019/2020. The appropriations subject to
the limit is $17,973,809 leaving the City with an appropriations capacity under the
limit of $22,834,642.
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Attachment B
Section 7910 of the State Government Code requires the governing body to
annually adopt, by resolution, an Appropriations Limit for the upcoming fiscal
year.
HISTORY OF LIMIT CALCULATION
Population
City/County
Price or Non-Residential New
Construction
Fiscal
Year Basis Factor Basis Factor
Growth
Factor
Appropriation
Limit
1996-97 County 0.95 Per Capita Income 5.21 1.0621 $10,255,730
1997-98 City 2.58 Per Capita Income 4.67 1.0737 $11,011,629
1998-99 City 2.72 Per Capita Income 4.15 1.0698 $11,780,241
1999-00 City 0.64 Per Capita Income 4.56 1.0523 $12,392,814
2000-01 City 0.07 Per Capita Income 4.91 1.0498 $13,010,402
2001-02 City 1.37 Per Capita Income 7.82 1.0930 $14,219,997
2002-03 City 4.19 Per Capita Income -1.27 1.0287 $14,627,654
2003-04 City 4.21 Non-residential new construction 9.23 1.1383 $16,650,451
2004-05 County 1.73 Per Capita Income 3.28 1.0507 $17,494,629
2005-06 City 2.66 Per Capita Income 5.26 1.0806 $18,904,696
2006-07 City 0.24 Per Capita Income 3.96 1.0421 $19,700,584
2007-08 City 1.05 Per Capita Income 4.42 1.0552 $20,788,056
2008-09 City 2.13 Non-residential new construction 4.51 1.0674 $22,189,171
2009-10 City 1.27 Non-residential new construction 16.59 1.1807 $26,198,908
2010-11 City 1.42 Per Capita Income -2.54 0.9884 $25,896,031
2011-12 City 0.93 Per Capita Income 2.51 1.0346 $26,792,899
2012-13 County 0.61 Per Capita Income 3.77 1.0440 $27,972,590
2013-14 County 0.73 Per Capita Income 5.12 1.0589 $29,619,442
2014-15 County 0.79 Non-residential new construction 5.72 1.0656 $31,561,052
2015-16 City 1.62 Per Capita Income 3.82 1.0550 $33,297,504
2016-17 City 1.81 Per Capita Income 5.37 1.0728 $35,720,629
2017-18 City 0.82 Per Capita Income 3.69 1.0454 $37,342,438
2018-19 City 0.98 Per Capita Income 3.67 1.0469 $39,092,292
2019-20 City 0.52 Per Capita Income 3.85 1.0439 $40,808,451
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