HomeMy WebLinkAbout2021-06-08; City Council; Resolution 2021-134RESOLUTION NO. 2021-134
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2021-22
APPROPRIATION LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE
CALIFORNIA STATE CONSTITUTION AND STATE LAW
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 Attachment A, attached and incorporated by reference; 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) 2021-22 as listed in the attached and
incorporated Attachment A.
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, establishes and adopts the
FY 2021-22 appropriation limit of $542,095,062 as computed in the attached and
incorporated Attachment A.
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June 8, 2021 Item #11 Page 194 of 336
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 8th day of June, 2021, by the following vote, to
wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
MATT HALL, Mayor
L-Mierrt v( corr
BARBARA ENGLESON, City Clerk
(SEAL)
001111111111 91/40
CA/i/
June 8, 2021 Item #11 Page 195 of 336
APPROPRIATION LIMIT
The appropriations limitation (otherwise known as the Gann Limit) imposed by the state creates a restriction on
the amount of revenue which can be appropriated in any fiscal year. The basis for calculating the limit began in
fiscal year 1978-79 and is increased based on population growth and inflation. The appropriation limit applies only
to those revenues defined as proceeds of taxes.
•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 2021-22 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 2020-21 Expenditure Limit $509,009,448
% Population growth within Carlsbad 1.0073
Growth in California per capita income X 1.0573
Net Increase Factor 1.0650
Fiscal Year 2021-22 Limit (2020-21 Limit x Factor) $542,095,062
Current Appropriation of Proceeds of Taxes
(Subject to the Limit) $149,272,129
Carlsbad’s appropriation limit is currently in excess of three and a half times its annual appropriations. With such a
large margin it is unlikely that the city will reach the appropriation limit in the foreseeable future.
$-
$100
$200
$300
$400
$500
$600
2018 2019 2020 2021 2022MillionsAppropriations Limit by Fiscal Year
Gann Appropriation Limit
Appropriations Subject to Limit
Attachment A
June 8, 2021 Item #11 Page 196 of 336