HomeMy WebLinkAboutAGENDA REPORT 2023 0621 CCSA REG ITEM 10CCITY OF MOORPARK, CALIFORNIA
City Council Meeting
of June 21, 2023
ACTION APPROVED STAFF
RECOMMENDATION, INCLUDING
ADOPTION OF RESOLUTION NO. 2023-
4190. (ROLL CALL VOTE: UNANIMOUS)
BY A. Hurtado.
C. Consider Resolution Establishing the Appropriation Limitation for Fiscal Year
2023/24 for the City of Moorpark at $49,091,379. Staff Recommendation: Adopt
Resolution No. 2023-4190 establishing the FY 2023/24 appropriations limit at
$49,091,379. (Staff: Yolanda Cunning Finance/Administrative Services
Director and City Treasurer) (ROLL CALL VOTE REQUIRED)
Item: 10.C.
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Yolanda Cunning, Finance/Administrative Services Director & City
Treasurer
DATE: 06/21/2023 Regular Meeting
SUBJECT: Consider Resolution Establishing the Appropriation Limitation for
Fiscal Year 2023/24 for the City of Moorpark at $49,091,379
BACKGROUND
The Gann Spending Limitation Initiative (Proposition 4) 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 State and local
jurisdictions’ annual appropriations limit on monies that can be spent from tax revenues.
Each year, the governing body of the local agency must establish the appropriations limit,
by resolution, before the beginning of the following fiscal year. The goal of Proposition 4
was to keep State and local government spending capped at 1978-79 levels, adjusted for
changes in population and inflation. Under Proposition 4, if a city ends the fiscal year
having exceeded its appropriation limit (aka Gann limit), it must return the excess to
taxpayers within two years.
Initially, the appropriations limit was adjusted annually by: (1) the population change of
each local agency in the preceding year (the population factor) and (2) the lesser of the
Consumer Price Index (CPI) or the change in California per capita income from the
preceding year (inflation or growth factor). Proposition 111, adopted in June 1990,
allowed for adjustments to this methodology. For the population factor, the entity can
select the greater of population change within the City or County. For the growth or
inflation factor, local agencies may select the greater of growth in California per capita
income, or growth in the local assessment valuation due to non-residential new
construction.
DISCUSSION
In May of 2023, the California State Department of Finance (DOF) notified the local
jurisdictions of the population and price data for use in the appropriations limit calculation
for Fiscal Year (FY) 2023/2024. Based on said documentation from the DOF, the
Item: 10.C.
149
Honorable City Council
06/21/2023 Regular Meeting
Page 2
percentage change in population for the City of Moorpark is -0.65%, while the Ventura
County percentage change is -0.72%. The preceding year’s percentage change in per
capita personal income is 4.44%. Information regarding the change in local assessment
valuation in non-residential new construction of 0.67% was provided by the City’s property
tax consultants, HDL Coren & Cone, whose original source is the Ventura County Tax
Assessor.
The City elected to use the percentage change in population for the County of Ventura
(-0.72%) and the percentage change in per capita personal income (4.44%) in adjusting
the prior year’s appropriations limit of $47,311,913. Accordingly, the City of Moorpark’s
Gann limitation for FY 2023/24 is $49,091,379. Per the Budget for Adoption, the budgeted
appropriations subject to the limitation are $18,465,069. The City is $30,626,311, or 62%,
under the limit. Therefore, the City’s proposed appropriations for FY 2023/24 are
significantly below the mandated limits. With such a sizable margin, the provisions related
to the return of taxes will not apply to the City.
ENVIRONMENTAL DETERMINATION
This action is exempt from the California Environmental Quality Act (CEQA) as it does
not constitute a project, as defined by Section 15378 of the State CEQA Guidelines.
Therefore, no environmental review is required.
FISCAL IMPACT
There is no fiscal impact related to the establishment of the FY 2023/24 Gann
appropriations limit.
COUNCIL GOAL COMPLIANCE
This action does not support a current strategic directive.
STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED)
Adopt Resolution No. 2023-____ establishing the FY 2023/24 appropriations limit at
$49,091,379.
Attachment 1: Draft Resolution No. 2023-____
Attachment 2: Appropriation Limit Calculation
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RESOLUTION NO. 2023-____
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF MOORPARK, CALIFORNIA,
ESTABLISHING THE CITY’S APPROPRIATION
LIMITATION FOR FISCAL YEAR 2023/24
WHEREAS, Article XIII B of the Constitution of the State of California
establishes and defines annual appropriations limits for state and local government
entities; and
WHEREAS, Government Code Section 7910 requires that the governing
body of each local government establishes its annual appropriations limitation by
resolution at a public meeting; and
WHEREAS, the required computation to determine the City of Moorpark’s
appropriation limit for FY 2023/24 has been performed by the Finance Department
in accordance with the California State Constitution and applicable sections of the
Government Code.
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 2023/24 is hereby determined to be $49,091,379.
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 21st day of June 2023.
__________________________
Chris R. Enegren, Mayor
ATTEST:
_________________________________
Ky Spangler, City Clerk
ATTACHMENT 1
151
ATTACHMENT 2
CITY OF MOORPARK
Gann Appropriation Limit Calculation
Article XIII B 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) 1978/79, modified for changes in inflation and population since that time.
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 the
County’s population.
At incorporation in FY 1983/84, the Local Agency Formation Commission (LAFCO)
determined that the initial appropriation limit for the City of Moorpark was
$900,000. The limit was annually adjusted as prescribed by law. However, by FY
1988/89, it became evident that the appropriation limit was set too low, and the
City had more revenues that could fund certain levels of service and/or capital
improvement projects. Increases in a City’s Gann Limit may be achieved by a
simple majority of 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 1986/87 through FY 1989/90 by the amount of proceeds of taxes
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. 1993-953, the FY 1983/84 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 2023/24, the estimated tax proceeds appropriated by the Moorpark City
Council are significantly under the limit established by the Gann Initiative. The
adjusted Appropriation Limit for FY 2023/24 is $49,091,379. This is the maximum
amount of tax proceeds the City can appropriate and spend in FY 2023/24. The
budgeted appropriation subject to the limit is projected at $18,465,069, leaving the
City with a remaining appropriations capacity of $30,626,311.
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Section 7910 of the State Government Code requires the governing body to
annually adopt, by resolution, an Appropriations Limit for the upcoming fiscal year.
Shown below is the calculation of the Appropriations Limit for the FY 2023/24
Fiscal Year.
Appropriations limit for FYE June 30, 2023:47,311,913$
Adjustment Factors: .
Population Factor:0.9935
Growth/Inflation Factor:1.0444
Population Factor*Growth/Inflation Factor:1.0376114
Appropriations limit for FYE June 30, 2024:49,091,380$
CALCULATION OF FY 2023-2024 LIMIT
Shown below is a table of the City’s annual historical calculations under the Gann
Appropriations Limit.
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
2020-21 County -0.38 Per Capita Income 3.73 1.0334 $42,169,750
2021-22 County -0.70 Per Capita Income 5.73 1.0499 $44,273,974
2022-23 County -0.64 Per Capita Income 7.55 1.0686 $47,311,912
2023-24 City -0.65 Per Capita Income 4.44 1.0376 $49,091,380
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