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 1 2 3 4 5 6 ? 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 26 27 28 29 3O 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 31 32