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HomeMy WebLinkAbout2006-06-20; City Council; Resolution 2006-170Exhibit 6 1 RESOLUTION NO. 2006-170 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING 3 THE 2006-07 APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE 4 CONSTITUTION AND STATE LAW 5 6 WHEREAS, Article XIIIB of the California State Constitution requires that 7 governments annually establish a limit on the appropriation of proceeds of taxes; and 8 WHEREAS, State law requires that this limit be presented to the governing body 9 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. 12 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 13 Carlsbad, California, as follows: 14 1. That the above recitations are true and correct. 16 2. That the City Council of the City of Carlsbad, California, does hereby 17 establish and adopt the 2006-07 appropriation limit of one hundred sixty-six 18 million, four hundred ninety-nine thousand, three hundred and ninety-one 19 ($166,499,391) as computed in Exhibit 6-A attached hereto. 20 3. That the City Clerk is directed to publish this Resolution in a newspaper of general circulation. 22" 23 24 25 26 '" 27 /// 28 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 26 27 28 PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 20th day of June 2006, by the following vote: AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose NOES: None ABSENT: None ATTEST: Exhibit 6-A 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 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 2006-07 Limit were: > Population growth in Carlsbad, AND > Growth in California per capita income The formula is outlined below: 2005-06 Expenditure Limit $153.938.047 % Carlsbad Population Growth 1.0404 Growth in California per capita income X 1.0396 Net Increase Factor 1.0816 2006-07 Limit (2005-06 Limit X Factor) $166.499.391 Current Appropriation of Proceeds of Taxes $97,455,248 (Subject to the Limit) The spending limit for the City of Carlsbad for 2006-07 is $166.5 million, with appropriations of "proceeds of taxes" of $97.5 million. The result of the calculation provides the City with an operating margin of $69 million. D-11