HomeMy WebLinkAboutAGENDA REPORT 1993 0602 CC REG ITEM 08JAGENDA REPORT
CITY OF MOORPARK
TO: The Honorable City Council
FROM: Richard Hare, Deputy City
DATE:
Mans, i4.
May 25, 1993 (C(L Mtg. 6/2/93)
ITEM 86 Uwe
:�R ?ARK, CALIFO?N' A
{ Council Moo ;ng
1993
ACTION:
By
RE: Consider Report on Correct i6a -- of Appropriation
Limit and Set Public Hearing.
Background
Upon incorporation, the City's appropriation limit was
established by the Local 4gency Foi4mation Commission ( LAFCO)
as $9b0,000. Over the years,' it was painfully obvious that
this appropriation limit was much too low given the rapid
growth of the community. Staff has been engaged in research
to determine how the original appropriation limit was
established.
LAFCO Report
In this review of the appropriation limit, staff went to the
original report filed by LAFCO in establishing the $900,000
limit. The review of the LAFCO report pointed out the
errors that were made in setting the limit. Staff's review
indicates that the initial assumptions need to be corrected
in order to calculate the proper appropriation limit for the
City of Moorpark.
The original LAFCO study was based on information and
estimates made two years prior to incorporation. The LAFCO
staff took the information obtained at that time and
attempted to project the City's revenue flow five years
after incorporation. As you can see from the attached
tables, their assumptions were much lower than the actual
revenues for the City of Moorpark and do not reflect the
conditions for this community.
Correction of First Year
After reviewing the assumptions made by the LAFCO staff and
the actual revenues received by the City, staff has
concluded that the first year appropriation limit should be
corrected to reflect actual revenues in the fifth year. As
the attached table illustrates, the adjustments in price
index and population growth per the procedures established
by the California Department of Finance, would bring the
appropriation limit to $8.8 million dollars for fiscal year
1993/94.
Honorable City Council
May 25, 1993 (CC. Mtg. 6/2/93)
Page 2
Other cities have made similar corrections to their
appropriation limits. The most recent example is the city
of Santa Clarita. In making the correction to their
appropriation limit, they received a report from their staff
indicating that errors where made in the initial
calculation. After receiving this report a public hearing
was held to receive testimony from any interested parties.
The City Council then reviewed the information gathered from
staff and the public hearing, and made a determination on
whether or not there was an error in the calculation of the
appropriation limit. It was their determination that an
error did exist. They directed that the appropriation limit
be corrected.
Staff Recommendation
Staff Recommends that the City Council receive and file this
report taking into account that it is staff's recommendation
to correct the assumptions made by the LAFCO staff in
establishing the initial appropriation limit for the City
and that the City Council set a public hearing for June 16,
1993, which will allow testimony regarding the correction of
the current appropriation limit.
Attachment: Appropriation Limit Table
May 25, 1993 c: \wp51 \CC.RePorts\Appro.1imii
City of Moorpark
Appropriation Limit Comparison
LAFCO Beginning Estimate ($900,000) Corrected to Actual ($2,400,000)
YEAR
1982/83
1983/84
1984/85
1985/86
1986/87
1987/88
1988/89
1989/90
1990/91
1991/92
1992/93
1993/94
28- May -93
LAFCO
LAFCO
APPROPRIATION
ESTIMATED
APPROPRIATION
ACTUAL
LIMIT
REVENUE
LIMIT
REVENUE
AVAILABLE
900,000
292,301
900,000
391,848
2,400,000
789,716
1,083,776
1,104,699
2,890,070
799,671
1,320,501
1,461,895
3,521,337
814,200
1,523,379
1,825,211
4,060,757
829,645
1,751,146
2,366,074
4,667,898
2,337,201
6,230,099
2,707,050
7,215,977
2,940,628
7,838,607
3,142,910
8,377,816
3,174,321
8,436,575
3,312,507
8,803,840