HomeMy WebLinkAbout19-27 - Determining and adopting the appropriations Limit for Fiscal Year 2019-2020RESOLUTION NO. 19-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DETERMINING AND ADOPTING THE APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2019-2020
WHEREAS, the California electorate added Article XIII B to the Constitution of
the State of California in November 1979, placing various limitations on the
appropriations of the state and local governments; and
WHEREAS, the California electorate amended Article XIII B by approving
Proposition 111 in June 1990; and
WHEREAS, pursuant to Article XIII B, as amended, and California Government
Code provisions implementing Article XIII B, the total annual appropriations limit must
be calculated by adjusting the prior year's appropriations limit for changes in the cost of
living and population growth; and
WHEREAS, pursuant to Section 8(e) of Article XIII B, to determine the change in
the cost of living, the City may select, by a recorded vote of the City Council, either (a)
the percentage change in California per capita personal income from the preceding
year, or (b) the percentage change in the local assessment roll from the preceding year
due to the addition of non-residential new construction in the City; and
WHEREAS, pursuant to Section 8(f) of Article XIII B and Section 7901(b) of the
California Government Code, the City may choose to use the percentage change in
population within the City or within the County of Orange to determine the change in
population; and
WHEREAS, Section 7910 of the California Government Code requires that the
City Council, each year by resolution, establish the City's appropriations limit and make
other necessary determinations for the upcoming fiscal year pursuant to Article XIII B at
a regularly scheduled meeting or noticed special meeting, and that the City make the
documentation used in the determination of the appropriations limit publicly available at
least fifteen (15) days prior to the meeting; and
WHEREAS, the City Council has elected to utilize the percentage change in
California per capita income from the preceding year to calculate the change in cost of
Resolution No. 19-27 Page 1 of 4
living, and the population percentage increase for the City of Costa Mesa to calculate
the change in population; and
WHEREAS, the calculations and documentation used in the determination of the
appropriations limit is attached hereto as Exhibit "A" and incorporated herein; and
WHEREAS, such documentation was made available for public inspection at
least fifteen (15) days prior to June 18, 2019.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Costa
Mesa as follows:
Section 1. The appropriations limit for the City of Costa Mesa for Fiscal Year
2019-2020 is established in the amount of $245,308,059.
Section 2. The City Council, by recorded vote of the City Council in adopting this
Resolution, selects and determines that, for purposes of establishing the appropriations
limit for Fiscal Year 2019-2020, "change in the cost of living" shall be the percentage
change in California per capita income from the preceding year in accordance with
Article XIII B, section 8(e)(1)(A) of the California Constitution.
Section 3. The City Council selects and determines that, for purposes of
establishing the appropriations limit for Fiscal Year 2019-2020, "change in population"
shall be the population increase for the City of Costa Mesa in accordance with section
8(f) of Article XIII B of the California Constitution and Section 7901(b) of the California
Government Code.
PASSED AND ADOPTED this 18th day of June, 2019.
Resolution No. 19-27 Page 2 of 4
ATTEST:
Brenda Gree City Clerk
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
APPROVED AS TO FORM:
*0 4,1,j
Kimberly Hall Barlow, City Attorney
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY
CERTIFY that the above and foregoing is the original of Resolution No. 19-27 and was
duly passed and adopted by the City Council of the City of Costa Mesa at a regular
meeting held on the 18th day of June, 2019, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENIS, REYNOLDS, MARK, STEPHENS,
FOLEY
NOES: COUNCIL MEMBERS: MANSOOR
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 19th day of June, 2019.
a9k ()�,w
Brenda Gree City Clerk
Resolution No. 19-27 Page 3 of 4
EXHIBIT A
CALCULATION OF APPROPRIATIONS LIMIT FOR FY 2019-2020
Since the addition of Article XIII B to the Constitution of California in November 1979,
the City has been required to annually establish an Appropriations Limit. The purpose of
an annual appropriation limit is to control an agency's ability to spend tax proceeds each
year and lessen the impact or tax burden upon taxpayers throughout the State. _
In June 1990, Article XIII B and its implementing legislation were modified by
Proposition 111 and Senate Bill 88. Pursuant to Article XIII B, as amended, and its
implementing legislation, the annual appropriations limit must be calculated by adjusting
the prior year's appropriations limit for changes in the cost of living and population
growth.
The City may choose one of the following factors to use for the inflationary adjustment:
• The growth in California per capita income; or
• The growth in the non-residential assessed property valuation due to new
construction within the City.
The City may choose one of the following factors to use for the population adjustment:
• The population growth of the City; or
• The population growth within the County.
These two adjustment factors, one for inflation and one for population, are both annual
elections for the City in determining its Appropriations Limit. For Fiscal Year 2019-20,
the City has elected to use the growth in per capita income for the inflationary
adjustment and the population growth of the City for the population adjustment.
Below is the calculation of the City's Appropriations Limit for Fiscal Year 2019-20:
Step 1 - Appropriations Limit for FY 2018-19 $ 233,404,433
Step 2 - Multiply the FY 18-19 Appropriations Limit by the
cumulative growth factors for the City of Costa Mesa 1.0510
Appropriations Limit FY 2019-20 $ 245,308,059
The estimated proceeds from general tax revenues in Fiscal Year 2019-20 equals $120
million, which is $125 million, or 51 %, below the limit.
Resolution No. 19-27 Page 4 of 4