HomeMy WebLinkAbout2016-06-28; City Council; Resolution 2016-1311
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RESOLUTION NO. 2016-131
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE 2016-17 APPROPRIATION LIMIT
AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE
CONSTITUTION AND STATE LAW.
EXHIBIT6
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 above recitations are true and correct.
2. That the City Council of the City of Carlsbad, California, does hereby
establish and adopt the 2016-17 appropriation limit of four hundred and fourteen million, six
hundred and eight thousand, and forty dollars ($414,608,040) as computed in Exhibit 6-A
attached hereto.
3. That the City Clerk is directed to publish this Resolution in a 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 Public Financing
Authority Board of Directors, Community Development Commission, and City of Carlsbad as
Successor Agency to the Redevelopment Agency, held on the 28th day of June, 2016, by the
following vote to wit:
AYES: Hall, Wood, Schumacher, Blackburn, Packard.
NOES: None.
ABSENT: None.
M~
ATTEST:
Item No. 15 - AB #22,337 June 28, 2016 Page 81 of 179
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 2016-17 Limit were:
);;;, Population growth in San Diego County, AND
);;;, Growth in California per capita income
The formula is outlined below:
2015-16 Expenditure limit
% City of Carlsbad Population Growth
Growth in California per capita income
Net Increase Factor
2016-17 limit (2015-16 limit X Factor)
Current Appropriation of Proceeds of Taxes
(Subject to the Limit)
$389,999,097
1.0089
X 1.0537
1.0631
$414,608,040
$126,508,081
The spending limit for the City of Carlsbad for 2016-17 is $414.6 million, with appropriations of
"proceeds of taxes" of $126.5 million. The result of the calculation provides the City with an
operating margin of $288.1 million.