HomeMy WebLinkAbout2022-06-14; City Council; Resolution 2022-137RESOLUTION NO. 2022-137
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2022-23 APPROPRIATION
LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE
CONSTITUTION AND STATE LAW
EXHIBIT 9
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 Attachment A, attached and incorporated by reference; 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 (FY) 2022-23 as listed in the attached and incorporated
Attachment A.
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, establishes and adopts the FY
2022-23 appropriation limit of $582,535,354 as computed in the attached and
incorporated Attachment A.
June 14, 2022 Item #7 Page 192 of 454
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of
Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the
Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission, and
the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency
held on the 14th day of June, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Norby.
None.
Hall.
MATT HALL, Mayor
.fr FAVIOLA MEDINA, City Clerk Services Manager
(SEAL)
June 14, 2022 Item #7 Page 193 of 454
Attachment A
APPROPRIATION LIMIT
The appropriations limitation (otherwise known as the Gann Limit) imposed by the state creates a restriction on
the amount of revenue which can be appropriated in any fiscal year. The basis for calculating the limit began in
fiscal year 1978-79 and is increased based on population growth and inflation. The appropriation limit applies only
to those revenues defined as proceeds of taxes.
•Population growth of Carlsbad, OR
•Population growth within San Diego County,
AND
•Growth in California per capita income, OR
•Growth in non-residential assessed valuation due to new construction in the city.
The factors used to calculate the fiscal year 2022-23 Limit were:
•Population growth of Carlsbad AND
•Growth in non-residential assessed valuation due to new construction in the city.
The formula is outlined below:
Fiscal Year 2021-22 Expenditure Limit $542,095,062
% Population growth within Carlsbad 0.9992
Growth in California per capita income X 1.0755
Net Increase Factor 1.0746
Fiscal Year 2022-23 Limit (2021-22 Limit x Factor) $582,535,354
Current Appropriation of Proceeds of Taxes
(Subject to the Limit) $170,799,505
Carlsbad’s appropriation limit is currently almost three and a half times its annual appropriations. With such a
large margin it is unlikely that the city will reach the appropriation limit in the foreseeable future.
$-
$100
$200
$300
$400
$500
$600
$700
2019 2020 2021 2022 2023MillionsAppropriations Limit by Fiscal Year
Gann Appropriation Limit
Appropriations Subject to
Limit
June 14, 2022 Item #7 Page 194 of 454