HomeMy WebLinkAboutItem #9CITY OF ,f
LADE LSIHOKE
NC09 DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: GRANT M. YATES
CITY MANAGER
DATE: JUNE 25, 2013
SUBJECT: APPROPRIATIONS LIMIT FOR FISCAL YEAR 2013 -14
RECOMMENDATION
Adopt Resolution No. 2013 -DLD setting the City's 2013 -14 appropriations limit at
$73,075,959.
BACKGROUND
Article XIIIB of the State Constitution specifies that the City can annually increase its
appropriations limit by a factor comprised of the change in population combined with
either the change in California per capita personal income or the local assessment roll
due to local non - residential construction.
DISCUSSION
2013 -14 Changes are as follows;
California Per Capita Personal Income 5.12%
State Department of Finance- Population 55,285 @ 1/1/13 4.24%
FISCAL IMPACT
This population increase, combined with the California per capita personal income
decrease, may result in a decrease in State Subventions that are calculated on a per
capita basis.
AGENDA ITEM NO. 9
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Appropriations Limit for FY 2013 -14
June 25, 2013
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Prepared by: James R. Riley
Director of Admi ' rative Services
Approved by: Grant M. Yates
City Manager
Attachments: City Council Resolution No. 2013- 01—d
FY2013 -14 Appropriation Limit Calculation
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CITY OF LAKE ELSINORE
FN 2013 -14 APPROPRIATIONS LIMIT
2012 -13 Appropriations Limit:
Per Capita Cost of Living Change = 5.12%
Population Change = 4.24%
Per Capita Cost of Living converted to a ratio =
Population converted to a ratio =
Calculation of factor for FY 2013 -2014:
2013 -14 Appropriations Limit:
1.0512
1.0424
1.0512 x
$ 66,689,086 x
$ 66,689,086
1.0424 = 1.0958
1.0958 = $ 73,075,959
In 1979 a statewide voter approved spending limitation (Gann Initiative) went into effect. The purpose
was to limit the spending of tax proceeds by government agencies by limiting expenditures. An agency
is restricted from approving expenditures in excess of its limit. If a City receives more revenue than the
appropriation limit, the revenue must be returned to the taxpayers through a tax reduction or refund.
The appropriation limit is annualy adjusted by the population change and the greater change of either the
state per capita income or the local assessment roll for non - residential construction. The limit can be
increased for an emergency as declared by the Governor and excludes qualified capital outlay
expenditures of more than $100,000 with a ten -year life expenctancy.
Currently, the City of Lake Elsinore is at 47.6255% of its limitation and therefore will not be impacted by
the appropriations limit.
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RESOLUTION NO. 2013 -030
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2013 -14 FOR THE CITY OF LAKE
ELSINORE IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9
OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE
WHEREAS, Article XIII B of the Constitution of the State of California as
proposed by the Initiative Measure approved by the people at the special statewide
election held on November 6, 1979 and amended in June, 1990 by the people of the
State of California (Proposition 111), provides that the total annual appropriations
subject to limitations of each local government shall not exceed the appropriations limit
of such entity for the prior year adjusted for changes in the cost of living and population
except as otherwise specifically provided for in said Article; and
WHEREAS, Section 7910 of the Government Code provides that each year
the governing body of each local jurisdiction shall, by resolution, establish its
appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly
scheduled meeting or a noticed special meeting and that fifteen days prior to such
meeting, documentation used in the determination of the appropriations limit shall be
available to the public; and
WHEREAS, Proposition 111 as approved by the voters of the State of
California, requires a recorded vote of the City council regarding which of the annual
adjustment factors have been selected each year; and
WHEREAS, at the time of adoption of this resolution, data necessary to
calculate the increase in the non - residential assessed valuation was not available from
the County Assessor's office; and
WHEREAS, Section 7902(a) of the Government Code sets forth the method
of determining the appropriations limit for each local jurisdiction for the 2013 -14 fiscal
year; and
WHEREAS, the City Council of the City of Lake Elsinore wishes to establish
the appropriations limit for fiscal year 2013 -14 for the City of Lake Elsinore.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. That it is hereby found and determined that the documentation
used in the determination of the appropriations limit for the City of Lake Elsinore for
fiscal year 2013 -14 was available to the public in the Finance Department of said City at
least fifteen days prior to this date.
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City Council Resolution No. 2013 -030
Page 2 of 2
SECTION 2. That the change in California Per Capita Income and City
Population was selected for the 2013 -14 fiscal year.
SECTION 3. That there may be a need to amend the inflation factor
selected and adjust the appropriations limit once the non - residential assessed valuation
data becomes available from the county Assessor's Office.
SECTION 4. That the appropriations limit for the City of Lake Elsinore as
established in accordance with Section 7902(a) of the California Government Code is
$66,689,086 for fiscal year 2013 -14.
SECTION 3. This Resolution shall take effect from and after the date of its
passage and adoption.
PASSED, APPROVED AND ADOPTED this 25th day of June, 2013.
Robert E. Magee, Mayor
ATTEST:
Virginia Bloom, City Clerk
APPROVED AS TO FORM:
Barbara Zeid Leibold, City Attorney
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