HomeMy WebLinkAboutAGENDA REPORT 2005 0615 CC REG ITEM 10JITEM 10 • :T-
CITY OIL MOORPARK, CALIFORNIA
City Caunell Meeting
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MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Johnny Ea, Finance Director
DATE: June 3, 2005 (Council Meeting of June 15, 2005)
SUBJECT: Consider Resolution Establishing the Appropriation
Limitation for Fiscal Year 2005 -2006 for the City of
Moorpark at $18,904,696.
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 2004 -2005 the limitation was $17,494,629.
The information provided by the State Department of Finance, as
required by the Government Code, indicated a 5.26% change in
cost index and a 2.66% change in population. Accordingly, the
City of Moorpark's limitation for Fiscal Year 2005 -2006 is
$18,904,696. General Fund appropriations which are subject to
this limitation (some appropriations are exempt) for FY 2005-
2006 are estimated to be $8,061,610 well below this amount.
0t�29,-
Honorable City Council
June 15, 2005
Page 2
STAFF RECONMMATION
Adopt Resolution No. 2005 -
Attached: Resolution No. 2005 -
Appropriation Limit Calculation
RESOLUTION NO. 2005-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ESTABLISHING THE CITY'S
APPROPRIATION LIMITATION FOR FISCAL YEAR 2005 -2006
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 2005 -2006 appropriations
limitation has been calculated in accordance with the State
Constitution and applicable sections of the Government Code by
adjusting its Fiscal Year 2004 -2005 appropriations limit of
$17,494,629 by a cost index change of 5.26% and a population
change of 2.66% 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 2005 -2006 is hereby determined to be
$18,904,696.
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 15th day of June, 2005.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
0() CZ-al -1
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 2005 -06, the estimated tax proceeds appropriated by the
Moorpark City Council are under the Limit. The adjusted
Appropriation Limit for FY 2005 -06 is $18,904,696. This is the
maximum amount of tax proceeds the City is able to appropriate
and spend in FY 2005 -06. The appropriations subject to the
limit are $8,061,610, leaving the City with an appropriations
capacity under the Limit of $10,843,086.
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
2005 -06
Per Capita Income
5.26
City
2.66
1.0806
18,904,696
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