HomeMy WebLinkAbout2019-06-18; City Council; Resolution 2019-094RESOLUTION NO. 2019-094
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2019-20 APPROPRIATION
LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE
CONSTITUTION AND STATE LAW.
EXHIBIT 8
WHEREAS, Article XIIIB of the California State Constitution requires that governments
annually establish a limit on the appropriation of proceeds of taxes commonly known as the "Gann
Limit"; and
WHEREAS, State law requires that this limit be presented to the governing body of each
entity each fiscal year; and
WHEREAS, the Gann Limit is based on a combination of a population factor and an
inflation factor as outlined in Exhibit 8-A attached hereto; and
WHEREAS, the City Council desires at this time and deems it to be in the best public
interest to adopt the annual Gann Limit for Fiscal Year 2019-20 as listed in Exhibit 8-A, attached to this
resolution and incorporated by this reference:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California,
as follows:
1. That the above recitations are true and correct.
2. That the City Council of the City of Carlsbad, California, does hereby establish
and adopt the Fiscal Year 2019-20 appropriation limit of four hundred and seventy-eight million, eight
hundred and forty-two thousand, and three hundred seventy-nine dollars ($478,842,379) as computed
in Exhibit 8-A attached hereto.
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the Carlsbad City
Council, Carlsbad Municipal Water District Board of Directors, Carlsbad Public Financing Authority
June 18, 2019 Item #5 Page 105 of 197
Board of Directors, Community Development Commission, and City of Carlsbad as Successor Agency to
the Redevelopment Agency, held on the 18th day of June, 2019, by the following vote to wit:
AYES: Blackburn, Bhat-Patel, Schumacher, Hamilton.
NAYS: Hall.
ABSENT: None.
ATTEST:
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June 18, 2019 Item #5 Page 106 of 197
EXHIBIT SA
CITY OF CARLSBAD
GANN APPROPRIATIONS LIMIT
The Appropriations Limitation imposed by Proposition 4 and modified by Proposition 111 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 111 allows the City to annually choose among the following
options for calculating its Gann Limit:
► Population growth of Ca rlsbad, OR
► Population growth within San Diego County, AND
► Growth in California per capita income, OR
► Growth in non-residential a.ssessed valuation due to new construct ion in the city.
The factors used to calculate the fiscal year 2019-20 Limit were:
► Population growth within San Diego County AND
► Growth in California pe r capita income
The formula is outlined below:
Fiscal Year 2018-19 Expenditure Limit
% Population growth within San Diego County
Growth in California per capita income
Net Increase Factor
Fiscal Yea r 2019-20 Limit (2018-19 Limit x Factor)
Current Appropriation of Proceeds of Taxes
(Subject to the Limit)
$458,105,219
1.0052
X 1.0385
1.0439
$478,842,379
$148,103,240
The spending limit for the City of Carlsbad fo r fiscal year 2019-20 is $478.8 million, with appropriations of
"proceeds of taxes" of $148.1 million. The result of the calcu lation provides t he city with an operating
margin of $330.7 million.
D-11 June 18, 2019 Item #5 Page 107 of 197