HomeMy WebLinkAboutAGENDA REPORT 2006 0621 CC REG ITEM 10HrrEM o• 4 .
wI E 1 OV iViCaC?RF'.ARK, CALIFORWIP:
City Council Meeting
of - 4,
ACTION:
MOORPARK CITY COUNCIL
AGENDA REPORT
TO: Honorable City Council
FROM: Johnny Ea, Finance Director
DATE: June 7, 2006 (Council Meeting of June 21, 2006)
SUBJECT: Consider Resolution Establishing the Appropriation Limitation for
Fiscal Year 2006 -2007 for the City of Moorpark at $19,700,584.
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 2005 -2006
the limitation was $18,904,696.
The information provided by the State Department of Finance, as required by the
Government Code, indicated a 3.96% change in cost index and a 0.24% change in
population. Accordingly, the City of Moorpark's limitation for Fiscal Year 2006 -2007 is
$19,700,584. General Fund appropriations which are subject to this limitation (some
appropriations are exempt) for FY 2006 -2007 are estimated to be $9,225,745 which is
well below this amount.
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Honorable City Council
June 21, 2006
Page 2
STAFF RECOMMENDATION
Adopt Resolution No. 2006-
Attached: Resolution No. 2006 -
Appropriation Limit Calculation
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RESOLUTION NO. 2006-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MOORPARK, CALIFORNIA, ESTABLISHING THE CITY'S
APPROPRIATION LIMITATION FOR FISCAL YEAR 2006 -2007
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 2006 -2007 appropriations limitation has been
calculated in accordance with the State Constitution and applicable sections of the
Government Code by adjusting its Fiscal Year 2005 -2006 appropriations limit of
$18,904,696 by a cost index change of 3.96% and a population change of 0.24% 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 2006 -2007 is hereby determined to be $19,700,584.
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 21 st day of June, 2006.
Patrick Hunter, Mayor
ATTEST:
Deborah S. Traffenstedt, City Clerk
✓' L V fi fi
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 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 -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 2006 -07, the estimated tax proceeds appropriated by the Moorpark City Council
are under the Limit. The adjusted Appropriation Limit for FY 2006 -07 is $19,700,584.
This is the maximum amount of tax proceeds the City is able to appropriate and spend
in FY 2006 -07. The appropriations subject to the limit are $9,225,745, leaving the City
with an appropriations capacity under the Limit of $10,474,839.
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
__1_999_00
Per Capita Income
4.15
City
2.72
1.0698
$11,780,241
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
2006 -07
Per Capita Income
3.96
City
0.24
1.0421
$19,700,584