HomeMy WebLinkAbout1991-12-10; City Council; Resolution 91-398A .’
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RESOLUTION NO. 9 1 - 3 9 8
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, AMENDING THE 1990-91
APPROPRIATION LIMIT AND ESTABLISHING THE 1991 -92
APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XIIIB
OF THE CALIFORNIA STATE CONSTITUTION AND STATE LAW
WHEREAS, Article XIIIB of the California State Constitution
requires that governments annually establish a limit on the appropriation of
proceeds of taxes; and
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 amend and adopt the 1990-91 appropriation limit of fifty-two
million, seven hundred seventy-three thousand, six hundred and twenty-seven
dollars ($52,773,627) as computed in Exhibit A attached hereto.
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2. That the City Council of the City of Carlsbad, California,
does hereby establish and adopt the 1991-92 appropriation limit of sixty-
four million, nine hundred seventy seven thousand, nine hundred and forty
one dollars ($64,977,941) as computed in Exhibit B attached hereto.
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3. 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 10th day of December
vote, to wit:
, 1991, by the following
AYES: Council Members Lewis, Kulchin, Larson, Nygaard I
NOES: None
ABSENT: None
ATTEST:
(SEAL) llu2.3L 1.R-
ALETHA L. RAUTENKRANZ, City Clerk
0 e EXHIBIT
GA" APPROPRIATIONS LJMIT - CITY OF CARLSBAD -
The Appropriations Limitation imposed by Proposition 4 and modified by Proposition 11'
creates a restriction on the amount of revenue which can be appropriated in any fiscs
year. The revenues which are subject to the Limitation are those considered "proceeds c
taxes." The basis for calculating the Limit began in fiscal year 1978-79 and is increase1
based on population growth and inflation.
The major change made by Proposition 111 is to provide the City the option of selectin
factors which will maximize the City's calculated limit. Prior to Proposition 111, th
calculation was based upon the lesser of either the California per capita income or th
United States CPI. Proposition 111 now allows the City to annually choose among th
following options:
- Growth in California per capita income, OR
Growth in non-residential assessed valuation due to new construction in tI
City.
-
AND
- Population growth of Carlsbad, OR
Population gr(mvth within San Diego County. -
The Proposition included provisions for City's to recalculate their 1990-91 Limit becau!
the passage and subsequent interpretation of this legislation was so late in the year. Sta
has calculated an amended Gann Limit for 1990-91 using 1986-87 as the base year and tl
new factors. In order to maximize the City's Limit, the following calculation factors we
selected:
- Population growth in Carlsbad, AND
Carlsbad's growth in non-residential new construction. -
LAhIblt 1) 0
The formula is outlined below:
1989-90 Expenditure Limit $ 45,797,023
YO Carlsbad Papulation Growth 1.0243
Net Increase Factor 1.1523
1990-91 fimit (1989-90 Limit X Factor) $52,773,627
1990-91 Appropriation of Proceeds of Taxes $ 31,723,423
The spending limit for the City of Carlsbad for 1990-91 is $52,773,627, wil
appropriations of ''proceeds of taxes" of $31,723,423. The result of the calculatic
provides the City with a comfortable operating margin.
Carlsbad also needs to amend the Gann Limit for 1991-92 because the Carlsbad Munkip
Water District should be segregated from the City's calculation. Additionally, the facto
used to calculate the 1991-92 Limit need to be changed. The factors used to calculate tl
1991-92 Limit were:
% Non-Resid. New Construction x 1.1250
- Population growth in San Diego County, AND
Carlsbad's grc~wth in non-residential new construction. -
The formula is outlined below:
1990-91 Expenditure Limit $ 52,773,627
% County Population Growth 1.0306
Yo Non-Resid. New Construction X 1.1947
Net Increase Factor 1.2313
1991-92 Limit (1989-90 Limit X Factor) $ 64,977,941
Current Appropriation of Proceeds of Taxes $ 34,351,889
The spending limit for the City of Carlsbad for 1991-92 is $64,977,941 with appropriatio
of "proceeds of taxes" of $34,351,889. The result of the calculation provides the City wj
a comfortable and increasing operating margin of $30.6 million.
The area chart on the following page graphically depicts the growing operating mar5
within Carlsbad. As can be seen, Proposition 11 1 dramatically increased the amount whi
can be appropriated from taxes.
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CITY OF CARLSBAD
PROPOSITION 4 SPENDING LIMIT
VS. APPROPRIATION OF PROCEEDS OF TAXES
MILLIONS OF DOLLARS
. . . . . . . .
1983 1984 1985 1986 1987 1988 1989 1990 1991 1992
FISCAL YEAR
UAPPROP OF TAXES SPENDING LIMIT