HomeMy WebLinkAbout17-36 CC Resolution RESOLUTION NO. 17-36
' A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2017-18
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 2017-18,
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 13th day of June 2017.
C
' U Maryann Edwards, Mayor
ATTE
Randi Johl, City Clerk
[SEAL]
Resos 17-36 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. 17-36 was duly and regularly adopted by the City Council of the
City of Temecula at a meeting thereof held on the 13`h day of June, 2017, by the following
vote:
AYES: 3 COUNCIL MEMBERS: Comerchero, Rahn, Edwards
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 2 COUNCIL MEMBERS: Naggar, Stewart
Randi Johl, City Clerk
Resos 17-36 2
City Temecula
Fiscal Year 2017-18
' Annual Operating Budget
GANN APPROPRIATIONS LIMIT
Article %1118 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 2017-18:
Fiscal Year 2016-17 Appropriations Limits...................................................................$247,727,051
CityPopulation Growth ............................................................................................................1.27%
Per Capita Personal Income Change.........................................................................................3.69%
Fiscal Year 2017-18 Appropriations Limit.................................................................... ...$260,138,176
Appropriations subject to the limit in the Fiscal Year 2017-18 Budget total $76,129,236 which is $184,008,940
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 $184,008,940 variance
indicated. Further, any overall actual receipts from tax sources greater than $184,008,940 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
300,000,000
250,000,000
200,000,000
150,000,00o
100,000,000
50,000.000
0 ■ ■ __. __ __ _
' 2013-14 2014-15 2015-16 2016-17 2017-18
■Appropriations subject to Limit Legal Limit
Fiscal Year 2017-18 Annual Operating Budget