HomeMy WebLinkAbout2023-06-13; City Council; Resolution 2023-163RESOLUTION NO. 2023-163
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2023-24 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; 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) 2023-24 as listed in 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
2023-24 appropriation limit of $607,584,374 as computed in Attachment A.
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 Community Development Commission, and the City Council as
Successor Agency to the Carlsbad Redevelopment Agency held on the 13th day of June, 2023, by the
following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder, Luna.
None.
None.
None.
KEITH BLACKBURN, Mayor
_L ✓SHERRY FREISINGER, City Clerkf-(SEAL)
Attachment A
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 2023-24 Limit were:
•Population growth within San Diego County AND
•Growth in California per capita income.
The formula is outlined below:
Fiscal Year 2021-22 Expenditure Limit $582,535,354
% Population growth within Carlsbad 0.9987
Growth in California per capita income X 1.0444
Net Increase Factor 1.0430
Fiscal Year 2022-23 Limit (2021-22 Limit x Factor) $607,584,374
Current Appropriation of Proceeds of Taxes
(Subject to the Limit) $184,275,214
Carlsbad’s appropriation limit is currently almost 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.
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2020 2021 2022 2023 2024
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Appropriations Limit by Fiscal Year
Gann Appropriation Limit
Appropriations Subject to Limit