HomeMy WebLinkAbout2011-06-21; City Council; Resolution 2011-144Exhibit 6
1 RESOLUTION NO2011-144
2 A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD, CALIFORNIA,
3 ESTABLISHING THE 2011-12 APPROPRIATION
4 LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE
CALIFORNIA STATE CONSTITUTION AND STATE
5 LAW
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WHEREAS, Article XIIIB of the California State Constitution requires that
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governments annually establish a limit on the appropriation of proceeds of taxes; and
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9 WHEREAS, State law requires that this limit be presented to the governing body
JQ of each entity each fiscal year; and
11 WHEREAS, State law also requires that this limit be published in a newspaper of
12 general circulation to allow public response to the limit as adopted.
13 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
14 Carlsbad, California, as follows:
1. That the above recitations are true and correct.
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2. That the City Council of the City of Carlsbad, California, does hereby
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establish and adopt the 2011-12 appropriation limit of two hundred and ninety
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three million, eight hundred and seventy two thousand, seven hundred and
20 eighty dollars ($293,872,780) as computed in Exhibit 6-A attached hereto.
21 3. That the City Clerk is directed to publish this Resolution in a
22 newspaper of general circulation.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the
Carlsbad City Council, Carlsbad Municipal Water District Board of Directors, Carlsbad
Housing and Redevelopment Commission held on the 21st day of June 2011, by the
following vote to wit:
AYES: Council Members Hall, Kulchin, Blackburn, Douglas, Packard.
NOES: None.
ABSENT: None.
MATT HALL,'Mayor
ATTEST:
^ — ttfRRAINE'Tyi. WOOD, City Clerk
(SEAL)
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 2011-12 Limit were:
> Population growth in Carlsbad, AND
> Growth in non-residential assessed valuation due to new construction in the City.
The formula is outlined below:
2010-11 Expenditure Limit $192,476,277
% Carlsbad Population Growth 1.0107
Growth in non residential assessed valuation X 1.5106
Net Increase Factor 1.5268
2011-12 Limit (2010-11 Limit X Factor) $293,872,780
Current Appropriation of Proceeds of Taxes $99,115,723
(Subject to the Limit)
The spending limit for the City of Carlsbad for 2011-12 is $293.9 million, with appropriations of
"proceeds of taxes" of $99.1 million. The result of the calculation provides the City with an
operating margin of $194.8 million.
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