HomeMy WebLinkAbout2020-06-23; City Council; Resolution 2020-129RESOLUTION NO. 2020-129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2020-21 APPROPRIATION
LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA STATE
CONSTITUTION AND STATE LAW
EXHIBIT 8
WHEREAS, Article XIIIB of the California State Constitution requires that governments
annually establish a limit on the appropriation of proceeds of taxes commonly known as the "Gann
Limit"; and
WHEREAS, state law requires that this limit be presented to the governing body of each
entity each fiscal year; and
WHEREAS, the Gann Limit is based on a combination of a population factor and an
inflation factor as outlined in Exhibit 8-A attached hereto; and
WHEREAS, the City Council desires at this time and deems it to be in the best public
interest to adopt the annual Gann Limit for fiscal year (FY) 2020-21 as listed in Exhibit 8-A, attached to
this resolution and incorporated by this reference:
NOW, THEREFORE, BE IT RESOLVED by the City Council ofthe 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, establishes and adopts
the FY 2020-21 appropriation limit of five hundred and nine million, nine thousand, four hundred and
forty eight dollars ($509,009,448) as computed in the attached Exhibit 8-A.
Ill
Ill
Ill
June 23, 2020 Item #9 Page 105 of 124
PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the
City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors
of the Carlsbad Public Financing Authority, the City of Carlsbad Community Development Commission,
and the City Council of the City of Carlsbad as Successor Agency to the Carlsbad Redevelopment Agency
held on the 23rd day of June, 2020, by the following vote to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher.
None.
None.
MATT HALL, President
(SEAL)
June 23, 2020 Item #9 Page 106 of 124
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 fiscal year 2020-21 Limit were:
Population growth of Carlsbad AND
Growth in non-residential assessed valuation due to new construction in the city.
The formula is outlined below:
Fiscal Year 2019-20 Expenditure Limit $478,842,379
% Population growth within Carlsbad 1.0073
Growth in non-residential assessed valuation X 1.0553
Net Increase Factor 1.0630
Fiscal Year 2020-21 Limit (2019-20 Limit x Factor) $509,009,448
Current Appropriation of Proceeds of Taxes $140,076,477
(Subject to the Limit)
The spending limit for the City of Carlsbad for fiscal year 2020-21 is $509.0 million, with appropriations of
"proceeds of taxes" of $140 million. The result of the calculation provides the city with an operating
margin of $369 million.
Exhibit 8A
June 23, 2020 Item #9 Page 107 of 124