HomeMy WebLinkAbout12-049 CC Resolution RESOLUTION NO. 12-49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2012-13 AND SELECTING THE
POPULATION AND INFLATION FACTOR ACCORDINGLY
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 Fiscal Year
2012-13, 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 12th day of June, 2012. ;�
; huck Washington, Mayor
ATTEST:
Susan W. ones,(MMC
G�ty Clerk �
[SEAL]
R:/Resos 2012/Resos 12-49 1
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that
the foregoing Resolution No. 12-49 was duly and regularly adopted by the City Council of
the City of Temecula at a meeting thereof held on the 12th day of June, 2012, by the
following vote:
AYES: 5 COUNCIL MEMBERS: Comerchero, Edwards, Naggar, Roberts,
Washington
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
��� ,
Susan W. Jones, MMC
City Clerk
R:/Resos 2012/Resos 12-49 2
GAltiiltii APPROPRIAT'IONS 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 2012-13:
Fiscal Year 2011-12 Appropriations Limits .................................................... $191,732,198
City Population Growth .............................................................................................1.81 %
Per Capita Personal Income Change ........................................................................3.77%
Fiscal Year 2012-13 Appropriations Limit ...... ...... ............ ............... ......$202,565,067
Appropriations subject to the limit in the fiscal year 2012-13 budget total $42,636,026 which is
$159,929,041 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 $159,929,041 variance indicated. Further, any
overall actual receipts from tax sources greater than $159,929,041 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.
$225,000,000
$200,000,000
$175,000,000
$150,000,000
$125,000,000
$100,000,000
$75,000,000
$50,000,000
$25,000,000
$0
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
■ Appropriations Subject to Limit � Legal Limit