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HomeMy WebLinkAbout1997-06-24; City Council; Resolution 97-519t '.- 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RESOLUTION NO. 97-519 A RESOLUTION OF THE CITY COUNCIL OF THE CITY APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XlllB OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW WHEREAS, Article XlllB of the California State Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes; and OF CARLSBAD, CALIFORNIA ESTABLISHING THE 1997-98 WHEREAS, State law requires that this limit be presented to the governing body of each entity each fiscal year; and WHEREAS, State law also requires that this limit be published in a newspaper of general circulation to allow public response to the limit as adopted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the City Council of the City of Carlsbad, California, does hereby establish and adopt the 1997-98 appropriation limit of one hundred twenty-three million, five hundred and forty-seven thousand, one hundred and forty dollars ($123,547,140) as computed in Exhibit A attached hereto. 2. That the City Clerk is directed to publish this Resolution in a newspaper of general circulation. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council on the 24th day of June , 1997, by the following vote, to wit: AYES: Council Members Lewis, Finnila, Nygaard, Kulchin, and NOES: None ABSENT: None 26 27 ATTEST: ALETHA L. RAUTENKRANZ, City Clerk 28 (SEAL) - w e CITY OF CARLSBAD GANN APPROPRIATIONS LIMIT Exhibit A The Appropriations Limitation imposed by Proposition 4 and modified by Proposition 11 1 creates a restriction on the amount of revenue which can be appropriated in any fiscal year. The revenues which are subject to the Limitation are those considered "proceeds of taxes." The basis for calculating the Limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The major change made by Proposition I I1 allows the City to annually choose among the following options for calculating its Gann Limit: P Population growth of Carlsbad, OR P Population growth within San Diego County, AND 9 Growth in California per capita income, OR 9 Growth in non-residential assessed valuation due to new construction in the City. The factors used to calculate the 1997-98 Limit were: 9 Population growth in Carlsbad, AND 9 Growth in California per capita income. The formula is outlined below: 1996-97 Expenditure Limit $1 14,872,674 % Carlsbad Population Growth Growth in California per capita income Net Increase Factor 1.0275 X 1.0467 1.0755 1997-98 Limit (1996-97 Limit X Factor) $1 23,547.140 Current Appropriation of Proceeds of Taxes $32,888,408 The spending limit for the City of Carlsbad for 1997-98 is $123.5 million with appropriations of "proceeds of taxes" of $32.9 million. The result of the calculation provides the City with an operating margin of $90.6 million.