HomeMy WebLinkAboutAGENDA REPORT 1992 0219 CC REG ITEM 08EMOORPARk TEM e. E
799 Moorpark A,enue Moorpark, California 93021
TO: Honorable City Council
FROM: Richard Hare, Deputy City Manage
DATE: February 13, 1992
SUBJECT: Consider Election For Authorization
to spend Excess Proceeds of Taxes
Background
(805) 529 -6864
r;CTION:
Article XIIIB of the State Constitution limits the annual
appropriations of state and local governments. The revenues
received as proceeds of taxes which are in excess of that limit
may not be spent, unless the electorate authorizes their
expenditure in a special election. The last election held for
such authorization was on June 7, 1988. The voters approved
Measure C, which increased the City's Appropriation Limit for the
four year period beginning fiscal year 1986/1987 through fiscal
year 1989/1990. The appropriation limit was increased by the
amount of the proceeds of taxes collected in excess of the
appropriation limit for each of those years.
It is estimated that the City will have received over $275,000 in
excess proceeds of taxes by the end of fiscal year 1991/1992. Of
that amount, $261,000 is from fiscal year 1990/1991 and $14,000
from this fiscal year. Given the current economy, it is
anticipated that additional funds will be needed in fiscal year
1992/1993 in order to maintain the same level of services.
Staff has met with the Budget & Finance Committee to discuss the
economic trends and the outlook for the next fiscal year. It is
agreed that it may be necessary to go to the voters and request
their permission to spend these excess proceeds of taxes. If an
election were to be held, an election in June would cost
approximately $5,500 because it would be a single item election
and an election in November would cost $1,000.
Santa Clarita was also faced with an appropriation limit which
was too low to fund the basic levels of service. They
successfully petitioned the court to raise the appropriation
limit to a more realistic level, based upon the actual costs of
operating their City. Santa Clarita used the law firm of Burke
Williams and Sorensen in this matter. Staff is investigating the
approach taken by the City of Santa Clarita and will be reporting
back to the Council on their findings.
PAUL W. LAWRASON JR. JOHN E WOZNIAK SCOTT MONTGOMERY BERNARDO M. PEREZ ROY E. TALLEY JR.
Mayor Mayor Pro Tern C. urra7member Councilmember Councilmember
Honorable City Council
Election for Authorization
February 13, 1992
Page Two
The Budget & Finance Committee expressed concern regarding the
additional cost of having the measure considered in June and it
was the Committee's opinion that more information was needed
regarding the approach taken by the City of Santa Clarita to
correct their low appropriation limit. The Committee does not
recommend consideration of a measure authorizing the expenditure
of excess proceeds of taxes until November.
Recommendation
Staff concurs with the Budget & Finance Committee recommendation
and requests direction from Council to investigate, with the
assistance of the City Attorney's office, the possibility of
amending the City's original appropriation limit.