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HomeMy WebLinkAbout2022-52 CC Resolution RESOLUTION NO. 2022-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23 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 2022-23, 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 14`h day of June, 2022. I -27 ,-(' ."/ /4:— Matt Rahn, Mayor ATTES • —) Randi Johl, City Clerk [SEAL] 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. 2022-52 was duly and regularly adopted by the City Council of the City of Temecula at a meeting thereof held on the 14th day of June, 2022,by the following vote: AYES: 3 COUNCIL MEMBERS: Edwards, Schwank Stewart NOES: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None ABSENT: 2 COUNCIL MEMBERS: Alexander, Rahn Randi Johl, City Clerk 2 iitra City of Temecula � Fiscal Year 2022-23 The Heart of Southern California Annual Operating Budget Wine Country 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 2022-23: Fiscal Year 2021-22 Appropriations Limits $312,834,479 City Population Growth -0.42% Per Capita Personal Income Change 7.55% Fiscal Year 2022-23 Appropriations Limit $335,045,727 Appropriations subject to the limit in the Fiscal Year 2022-23 Budget total $97,674,737 which is $237,370,990 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 $237,370,990 variance indicated. Further, any overall actual receipts from tax sources greater than$237,370,990 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 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 iiu ill 0 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 111 ■Appropriations Subject to Limit Legal Limit Annual Operating Budget