HomeMy WebLinkAbout2020-45 CC Resolution RESOLUTION NO. 2020-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2020-21
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The Appropriations Limit will be calculated based on the changes in City
population and California per capita personal income.
Section 2. The Appropriations Limit for the City of Temecula for FY 2020-21,
attached hereto, is hereby adopted.
Section 3. The City Clerk shall certify to the adoption of this resolution and shall cause
a certified resolution to be filed in the office of the City Clerk.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula
this 9th day of June 2020.
i -)..1
ifi-6"(7
Mar n wards, Mayor Pro Tempore
ATTEST.
... .4
J
Randi Johl, City Clerk
[SEAL]
r
1
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, City Clerk of the City of Temecula, do hereby certify that the foregoing
Resolution No. 2020-45 was duly and regularly adopted by the City Council of the City of
Temecula at a meeting thereof held on the 9th day of June, 2020, by the following vote:
AYES: 4 COUNCIL MEMBERS: Edwards, Naggar, Rahn, Schwank
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Randi Johl, City Clerk
2
City of Temecula
Fiscal Year 2020-21
Annual Operating Budget
GANN APPROPRIATIONS LIMIT
Article XIIIB of the California State Constitution,more commonly referred to as the Gann Initiative or Gann Limit,
was approved by California voters in November 1979,and placed limits on the amount of proceeds of taxes that
state and local government agencies can receive and spend each year. For cities that incorporated after 1978-
79 (such as the City of Temecula), the voters set the initial appropriations limit at the time of incorporation.
Proposition 111 was approved by California voters in June 1990,which provided new adjustment formulas which
make the appropriations limit more responsive to local growth issues. Each year the City Council must adopt by
resolution the appropriations limit for the following year. Following is the calculation of the City's Gann
Appropriations Limit for Fiscal Year 2020-21:
Fiscal Year 2019-20 Appropriations Limits $284,375,703
City Population Growth 0.08%
Per Capita Personal Income Change 3.73%
Fiscal Year 2020-21 Appropriations Limit ...$295,210,417
Appropriations subject to the limit in the Fiscal Year 2020-21 Budget total $80,172,527 which is $215,037,890
less than the computed limit. Additional appropriations to the budget funded by non-tax sources such as service
charges, restricted revenues from other agencies,grants or beginning fund balances would be unaffected by the
appropriations limit. However, any supplemental appropriations funded through increased tax sources would
be subject to the appropriations limit and could not exceed the $215,037,890 variance indicated. Further, any
overall actual receipts from tax sources greater than$215,037,890 from budget estimates will result in proceeds
from taxes in excess of the City's appropriations limit, requiring refunds of the excess within the next two fiscal
years or voter approval of an increase in the City's appropriations limit. Voter approval for an increase in the
City's appropriations limit is not anticipated in the future due to the margin between the limit and tax revenue.
GANN Appropriations Limit
350,000,000
300,000,000
250,000,000
200,000,0001.41
150,000,000
100,000,000
50,000,000 - - ----- —
0
2016-17 2017-18 2018-19 2019-20 2020-21
â– Appropriations Subject to Limit Legal Limit
I
Annual Operating Budget