HomeMy WebLinkAboutAGENDA REPORT 2010 0616 CC REG ITEM 10F ITEM 10.F.
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AGENDA REPORT - —
ACTION: -
TO: Honorable City Council
FROM: Ron Ahlers, Finance Director '��
BY: Irmina Lumbad, Finance/Accounting Manager
DATE: June 3, 2010 (Council Meeting of June 16, 2010)
SUBJECT: Consider Resolution Establishing the Appropriation Limitation for
Fiscal Year 2010/2011 for the City of Moorpark at $25,896,031
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 3, 2010 the California State Department of Finance notified the local
jurisdictions of the population and price data for use in the appropriations limit
calculation for FY 2010/2011. Based on this letter, the percentage change in population
for the City of Moorpark is 1.42°/x, while the Ventura County percentage change is
1.25%. The preceding year's percentage change in cost-of-living factor per capita
personal income is -2.54%. Information regarding the change in local assessment
valuation in non-residential new construction of -18.77% was provided by the City's
property tax consultants, HDL Coren & Cone.
135
Honorable City Council
June 16, 2010
Page 2
The City selected to use the percentage change in population for the City (1.42%) and
the percentage change in cost-of-living factor per capita personal income (-2.54%) in
adjusting the prior year's appropriations limit of $26,198,908. Accordingly, the City of
Moorpark's limitation for FY 2010/2011 is $25,896,031. Per the Recommended Budget
for FY 2010/2011, the appropriations subject to limit is $13,088,019. This brings us
$12,808,012 or 49.5% under the limit.
FISCAL IMPACT
None.
STAFF RECOMMENDATION
Adopt Resolution No. 2010-
Attachments: A. Resolution No. 2010-
B. Appropriation Limit Calculation
136
Attachment A
RESOLUTION NO. 2010-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ESTABLISHING THE CITY'S
APPROPRIATION LIMITATION FOR FISCAL YEAR 201012011
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 2010/2011 appropriations limitation has been
calculated in accordance with the State Constitution and applicable sections of the
Government Code by adjusting its Fiscal Year 2009/2010 appropriations limit of
$26,198,908 by the percentage change in the City of Moorpark's population of 1.42%,
as determined by the State of California, Department of Finance and the percentage
change of cost-of-living factor per capita personal income of -2.54% as provided 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 2010/2011 is hereby determined to be $25,896,031.
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 16`h day of June, 2010.
Janice S. Parvin, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
137
Attachment B
CITY OF MOORPARK
Appropriation Limit Calculation
Article X11113 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 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.
For FY 2010/2011, the estimated tax proceeds appropriated by the Moorpark
City Council are under the limit. The adjusted Appropriation Limit for FY
2010/2011 is $25,896,031. This is the maximum amount of tax proceeds the City
is able to appropriate and spend in FY 2010/2011. The appropriations subject to
the limit is $13,088,019, leaving the City with an appropriations capacity under
the limit of $12,808,012.
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 Price or Non-Residential New
City/County City/County Construction
Fiscal Growth Appropriation
Year Basis Factor Basis Factor Factor Limit
1996-97 County 0.95 Per Capita Income 521 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 782 1 0930 $14,219,997
2002-03 City 4 19 Per Capita Income -1 27 1 0287 $14,627,654
2003-04 City 421 Non-residential new construction 923 1 1383 $16,650,451
2004-05 County 1 73 Per Capita Income 328, 1 0507 $17,494,629
2005-06 City 266 Per Capita Income 5.26 1.0806 $18,904,696
2006-07 City 024 Per Capita Income 3.96 1.0421 $19,700,584
2007-08 City 1 05 Per Capita Income 442 1.0552 $20,788,056
2008-09 City 2.13 Non-residential new construction 4.51 1 0674 $22,189,171
2009-10 Cit 1 27 Non-residential new construction 16.59 1.1807 $26,198,908
2010-11 City 1 42 Per Capita Income -2.54 09884, $25,896,031
138