HomeMy WebLinkAboutAGENDA REPORT 1996 0619 CC REG ITEM 07GITT A7A
City of Moorpark
Agenda Report
TO: Honorable City Council
FROM: Richard Hare, Deputy City Man g -
DATE: May 31, 1996 (CC Mtg. 6/19/96)
SUBJECT: Adoption of "Gann" Appropriation Limit Resolution
Government Code Section 7910 requires each governmental entity 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.
On June 7, 1988, the voters approved Measure "C" which increased the
City's appropriation limit for the four year period beginning fiscal
year 1986/87 through fiscal year 1989/90. This override election
authorized the City to expend any proceeds of taxes in excess of the
calculated "Gann" appropriation limit established for fiscal year
1986/87 through 1989/90.
The original revenue assumptions developed in a study by the Local
Agency Formation Commission ( LAFCO) did not reflect the actual revenues
of the City. The actual revenues were applied to the same methodology
used by LAFCO to set the appropriation limit calculation. Ventura
County Superior Court reviewed the City's process and on November 22,
1994, validated the City's new appropriation limit.
Pursuant to Government Code 7911, the City Council has several options
with regard to the disposition of excess proceeds of taxes. The
Council may grant a tax refund or credit, by providing a temporary
suspension of tax rates or fee schedules. Additionally, per the
provisions of Government Code Section 79 and consistent with Article
13B, Section 9D of the State Constitution, expenditures for all
qualified capital outlay projects are not included as appropriations
subject to limitations. Therefore, any proceeds of taxes in excess of
the appropriation limit can be appropriated for a fixed asset
(including land and construction) if the fixed asset has a useful life
of ten (10) or more years and a value which equals or exceeds one
hundred thousand dollars ($100,000).
Approve Resolution 96-/"S establishing the City's appropriation
limit.
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