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Home My WebLink AboutAGENDA REPORT 2004 0616 CC REG ITEM 10EITEM 1o.C. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: Cindy Borchard, Administrative Services Director DATE: June 2, 2004 (Council Meeting of June 16, 2004) SUBJECT: Consider Resolution Establishing the Appropriation Limitation for Fiscal Year 2004 -2005 for the City of Moorpark at $17,494,629. BACKGROUND Proposition 4 was approved by the voters of California in 1979 adding Article XIII B to the State Constitution. The Proposition places a limit on the growth of general fund appropriations by government entities. DISCUSSION Proposition 4 (the "Gann Limitations ") was adopted by California voters in November 1979 and added Article XIII B to the State Constitution. The Proposition limited the growth in appropriations of state and local governments to the increase in the jurisdiction's population and the increase in the State price index. For FY 2003 -2004 the limitation was $16,650,451. The information provided by the State Department of Finance, as required by the Government Code, indicated a 3.28% change in cost index and a 1.73% change in population. Accordingly, the City of Moorpark's limitation for Fiscal Year 2004 -2005 is $17,494,629. General Fund appropriations which are subject to this limitation (some appropriations are exempt) for FY 2004- 2005 are estimated to be $7,426,500, well below this amount. 000168 Honorable City Council June 16, 2004 Page 2 STAFF RECOMMENDATION Adopt Resolution No. 2004- Attached: Resolution No. 2004 - Appropriation Limit Calculation 000169 RESOLUTION NO. 2004- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, ESTABLISHING THE CITY'S APPROPRIATION LIMITATION FOR FISCAL YEAR 2004 -2005 WHEREAS, Article XIII B of the State Constitution limits annual appropriations for certain general fund 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 2004 -2005 appropriations limitation has been calculated in accordance with the State Constitution and applicable sections of the Government Code by adjusting its Fiscal Year 2003 -2004 appropriations limit of $16,650,451 by a cost index change of 3.28% and a population change of 1.73% as determined by the 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 during Fiscal Year 2004 -2005 is hereby determined to be $17,494,629. 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 16th day of June, 2004. Patrick Hunter, Mayor ATTEST: Deborah S. Traffenstedt, City Clerk 000170 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 1980 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 FY 1978 -79, 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. For FY 2004 -05, the estimated tax proceeds appropriated by the Moorpark City Council are under the Limit. The adjusted Appropriation Limit for FY 2004 -05 is $17,494,629. This is the maximum amount of tax proceeds the City is able to appropriate and spend in FY 2004 -05. The appropriations subject to the Limit are $7,426,500, leaving the City with an appropriations capacity under the Limit of $10,068,129. Section 7910 of the State Government Code requires a governing body to annually adopt, by resolution, an Appropriations Limit for the upcoming fiscal year. HISTORY OF LIMIT CALCULATION Fiscal Year Price Population Growth Factor Appropriation Limit Basis Factor Basis Factor 1995 -96 Per Capita Income 4.72 County 2.15 1.0697 9,656,132 1996 -97 Per Capita Income 5.21 County .95 1.0621 10,255,730 1997 -98 Per Capita Income 4.67 City 2.58 1.0737 11,011,629 1998 -99 Per Capita Income 4.15 City 2.72 1.0698 11,780,241 1999 -00 Per Capita Income 4.53 City 0.64 1.0520 12,392,814 2000 -01 Per Capita Income 4.91 City 0.07 1.0498 13,010,402 2001 -02 Per Capita Income 7.82 City 1.37 1.0930 14,219,997 2002 -03 Per Capita Income -1.27 City 4.19 1.0287 14,627,654 2003 -04 Non -Res. Constr. 9.23 City 4.21 1.1383 16,650,451 2004 -05 Per Capita Income 3.28 County 1.73 1.0507 17,494,629 0001'71.