HomeMy WebLinkAboutCC 11 APPROP. LIMIT 01-05-81DATE:
December 29, 1980
1~5-81
Inter-Corn
TO:
FROM:
5UB.JECT:
HONORABLE MAYOR AND CITY COUNCIL
RON NAULT, FINANCE DIRECTOR
RESOLUTION ADOPTING APPROPRIATION LIMIT PER ARTICLE XIII B OF ~{E STATE
CONSTI~3TION (GAh~ INITIATIVE)
BACKGROUND
As discussed in a previous staff report, the "Gann Spending Limitation Initiative"
passed into law at the general election of November 6, 1979. The first year that the
law takes effect is Fiscal 80-81. The attempt of this Amendment is to limit the
increase in goverDJ~ent spending to the increase in the lesser of the CPI/Personal Per
Capita Incon~, and the growth in population within the governmental agency. The
limitation only applies to the "proceeds of taxes". "Proceeds of taxes" are ~efined
as all tax revenues and proceeds from Regulatory Licenses, User Fees to the extent
that such fees exceed the reasonable oosts to provide the service and State
Subventions for other than a specific required use.
OVERVIEW
SB 1352 is the enabling legislation that requires a resolution be adopted annually to
determine the spending limit, and provides for the source of the CPI/PCPI and
population information. The Council has expressed a concern regarding the population
figures as oertified by the State Department of Finance. Contact was made with the
State to voice our disagreement with the population figures they provided. Two
points were r~de clear: 1) we could only use the population as certified by SDFper
SB 1352; and, 2) they would not change the population figures. But, if they were
convinced to change the figures, they ~uld also adjust the previous year's figures
so that the overall growth trend would stay the same. The end result would be a
larger population figure but the same percentage growth.
The importance of an accurate population count cannot be overstated. Each One
hundred count change in population, increase or decrease, equals a $30,000 change in
spending limitation. We are investigating various alternatives, including a special
Census, to provide a corrected population figure for the SDF to certify. It is
important that we resolve this problem prior to the issuance of the new growth
figures by the State Departn~nt of Finance, May 1, 1981. It will be necessary to
determine our actual appropriations subject to limitation prior to adopting the
Fiscal 82 Budget.
The current year's appropriations subject to limit were based on ~nformation
available at the time the Fiscal 81 Budget was prepared. The adoption of this
resolution does not preclude the City from amending our spending limit through the
remainder of the fiscal year to reflect new data.
RECOMMENDATION
A~opt the attached resolution establishing the appropriation limit of $8,562,986 for
Fiscal Year 1980-81.
Finance Director
P~N :dmt
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RESOLUTION NO. 80-14,3'~
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, DETERMINING AND ADOPTING
AN APPROPRIATIONS LIMIT FOR THE FISCAL YEAR
1980-81, IN ACCORDANCE WITH ARTICLE XIIIB OF
THE CONSTITUTION OF THE STATE OF CALIFORNIA, AND
CHAPTER 1205 OF THE REVENUE AND TAXATION CODE
SECTION 7910.
WHEREAS, Article XIIIB was added to the'Constitution
of the State of California at a general election held on
November 6, 1979; and
WHEREAS, an annual appropriation limit must be
determined for this City effective for the fiscal year
beginning July 1, 1980; and
WHEREAS, the appropriations limit must be adhered
to in preparing and adopting this City's annual budget;
NOW, THEREFORE, the City Council of the City of
Tustin, does hereby resolve and order as follows:
Section 1: The City does not agree with the
population count as certified by the State Department
of Finance.
Section 2: In accordance with Article XIIIB of
the Constitution of the State of California, and Chapter
1205 of the Revenue and Taxation Code Section 7910,~and
as set forth in detail in the attached Exhibit "A", that
the appropriations limit for the fiscal year beginning
July 1, 1980, is $8,562,986.
Section 3: The appropriations limit shall not be
exceeded in the proposed budget nor by any proposed amend-
ment to the budget.
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Tustin held on the day of
, 1981.
Donald J. Saltarelli
Mayor
ATTEST:
Mary E. Wynn
City Clerk
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