HomeMy WebLinkAboutAGENDA REPORT 1997 0618 CC SPC ITEM 03BAGENDA REPORT
CITY OF MOORPARK
TO: Honorable City Council
FROM: Martin R. Cole, Management Analyst
Department of Administrative Services
DATE: June 13, 1997 (CC Meeting of June 18, 1997)
ITEM
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SUBJECT: Consider Resolution 97- establishing the City of Moorpark's "Gann
Appropriation Limit" for Fiscal Year 1997/1998
BACKGROUND
Government Code Section 7910 requires each governmental entity within California to
establish its annual appropriation limit by resolution at a regularly scheduled or noticed
special meeting of the entity. The attached resolution complies with the referenced
section of the government code and Article XIII B of the State Constitution. As you will
note by the attached resolution, no taxes will be collected in excess of our
appropriation limit in Fiscal Year 1997/1998.
DISCUSSION
In 1994, the Ventura County Superior Court validated the City's process used to correct
a divergence between revenue projections by LAFCO at the time of the City's
incorporation and actual receipts. Based upon the Court's decision, the base year
appropriation limit was adjusted to $2,400,000 (with the base year being FY 1983/1984,
the City's first year of incorporation). The Gann Appropriation Limit for Fiscal Year
1996/1997 was $10,255,730. Utilizing the methodology required by Section 7910
which takes into account a growth in population and a per capital price factor (to
account for changes in the cost of living), staff has calculated the "Gann Appropriation
Limit" for FY 1997/1998 to be $11,011,629 (with a per - capital personal income change
factor of 4.67 and a population change factor of 2.58). Please note that capital project
appropriations are not subject to the Gann Appropriation Limit. The City's estimated
appropriation for FY 1997/1998 net of capital projects is well below this ceiling.
RECOMMENDATION
That the City Council adopt proposed Resolution 97 - establishing the City's Gann
Appropriation Limit for Fiscal Year 1997/1998.