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HomeMy WebLinkAbout2012-06-26 CC Agenda Item No. 05CITY O fi LA C0911" LSI1ORT DREAM EXTREME. REPORT TO CITY COUNCIL TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: THOMAS P. EVANS INTERIM CITY MANAGER DATE: JUNE 26, 2012 SUBJECT: APPROPRIATIONS LIMIT FOR FISCAL YEAR 2012 -13 RECOMMENDATION Adopt Resolution No. 2012 -031 setting the City's 2012 -13 appropriations limit at $66,689,086. 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 2012 -13 Changes are as follows: California Per Capita Personal Income 3.77% State Department of Finance- Population 53,024 @ 1/1/12 1.40% 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. Prepared by: James R. Ril Director of Adm" i ative Services Approved by: Thomas P. Evans . Interim City Manage AGENDA ITEM NO. 5 Page 1 of 4 CITY OF LAKE ELSINORE F/Y 2012 -13 APPROPRIATIONS LIMIT 2011 -12 Appropriations Limit: Per Capita Cost of Living Change = 3.77% Population Change = 1.40% Per Capita Cost of Living converted to a ratio = Population converted to a ratio = Calculation of factor for FY 2012 -2013: 2012 -13 Appropriations Limit: $ 63,378,943 1 .0377 1.0140 1.0377 x 1.0140 = 1.0522 $ 63,378,943 x 1.0522 = $ 66,689,086 Page 2 of 4 RESOLUTION NO. 2012 -031 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2012 -13 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 2012 -13 fiscal year; and WHEREAS; the City Council of the City of Lake Elsinore wishes to establish the appropriations limit for fiscal year 2012 -13 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 2012 -13 was available to the public in the Finance Department of said City at least fifteen days prior to this date. SECTION 2. That the change in California Per Capita Income and City Population was selected for the 2012 -13 fiscal year. Page 3 of 4 CITY COUNCIL RESOLUTION NO. 2012 -031 Page 2 of 2 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 2012 -13. SECTION 3. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED this 26th day of June, 2012. Brian Tisdale, Mayor City of Lake Elsinore ATTEST: Virginia Bloom, City Clerk City of Lake Elsinore APPROVED AS TO FORM: Barbara Zeid Leibold, City Attorney City of Lake Elsinore Page 4 of 4