HomeMy WebLinkAbout2017-06-13; City Council; Resolution 2017-110RESOLUTION NO. 2017-110
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE 2017-18 APPROPRIATION LIMIT AS
REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE CONSTITUTION
AND STATE LAW.
EXHIBIT 7
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 2017-18 appropriation limit of four hundred and thirty-three million, eight hundred
forty-five thousand, and eight hundred fifty-two dollars ($433,845,852) as computed in Exhibit 7-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 13th day of June, 2017, by the following vote to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard
None.
None.
ATIEST:
BARBARA
{SEAL)
Page 655
EXHIBIT7-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 2017-18 Limit were:
~ Population growth in San Diego County, AND
~ Growth in California per capita income
The formula is outlined below:
2016-17 Expenditure Limit
% Population growth within San Diego County
Growth in California per capita income
Net Increase Factor
2017-18 Limit (2016-17 Limit X Factor)
Current Appropriation of Proceeds of Taxes
(Subject to the Limit)
$414,608,040
1.0092
X 1.0369
1.0464
$433,845,852
$134,700,038
The spending limit for the City of Carlsbad for 2017-18 is $433.8 million, with appropriations of
"proceeds of taxes" of $134.7 million. The result of the calculation provides the City with an
operating margin of $299.1 million.
D-11