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HomeMy WebLinkAboutRES. No. 06-87CITY OF PALM DESERT APPROPRIATIONS LIMIT FISCAL YEAR 2006-2007 Item 3 RESOLUTION NO. 06-87 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE 2006-2007 FISCAL YEAR WHEREAS, the voters approved the Gann Spending Limitation Initiative (Proposition 4) on November 6, 1979, adding Article XIII B to the Constitution of the State of California to establish and define annual appropriation limits on state and local government entities; and WHEREAS, Chapter 120-5 of the Revenue and Taxation Code Section 7910 (which incorporates California Senate Bill 1352) provides for the implementation of Article XIII B by defining various terms used in this Article and prescribing procedures to be used in implementing specific provisions of the Article, jurisdiction of its appropriations limit; and WHEREAS, the required calculation to determine the Appropriations Limit for Fiscal Year 2005-2006, has been performed by the Finance Department based on available information and is on file with the Finance Department and available for public review; WHEREAS, finance staff will recalculate the Appropriations Limit for respective fiscal periods including Fiscal Year 2005-2006, as soon as information regarding the percentage changes in the local assessment roll due to additional local nonresidential new construction is made available by the Riverside County Assessor=s office; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert, California, that the City of Palm Desert Appropriations Limit is hereby established as $ 77,282,779 for 2006-2007 Fiscal Year. PASSED, APPROVED AND ADOPTED at the regular meeting of the Palm Desert City Council held on this 22 day of June, 2006, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA JIM FERGUSON, MAYOR xii RES-ESTAPPO6O7 xv RESOLUTION NO. 06-87 CITY OF PALM DESERT FISCAL YEAR 2006-2007 APPROPRIATIONS LIMIT CALCULATION Article XIII B of the California Constitution requires adoption of an annual appropriation limit. The original base year limit was adopted in FY 1978-79 and has been adjusted annually for increase by a factor comprised of the percentage change in population combined with either the percentage change in California per capita personal income or the percentage change in local assessment roll due to the addition of local nonresidential new construction. The changes in the local assessment roll due to additional local nonresidential new construction for current and prior periods have not been available from the County Assessor's office. The November, 1988 voters approved Proposition R which increased the limit to $25,000,000. It expired in November, 1992. The FY 1993-94 limit was calculated with prior years re -calculated to reflect the expiration of the $25,000,000 limit. A. 2005-06 APPROPRIATION LIMIT AMOUNT SOURCE 71,859,793 PRIOR YEAR'S CALCULATION B. ADJUSTMENT FACTORS 1. POPULATION % POPULATION % CHANGE 3.45 STATE DEPT OF FINANCE POPULATION CONVERTED TO RATIO (3.45+100)/100 1.0345 CALCULATED 2. INFLATION % USING % CHANGES IN CALIF PER CAPITA PERSONAL INCOME PER CAPITA % CHANGE 3.96 STATE DEPT OF FINANCE PER CAPITA CONVERTED TO RATIO (3.96+100)/100 1.0396 CALCULATED 3. CALCULATION OF FACTOR FOR FY 06-07 ESTIMATED C. 2006-07 APPROPRIATIONS LIMIT BEFORE ADJUSTMENTS D. OTHER ADJUSTMENTS E. 12006-2007 APPROPRIATIONS LIMIT I F. 'APPROPRIATIONS SUBJECT TO LIMIT I G. IOVER/(UNDER) LIMIT I 1 1 1.0755 B1*B2 77,282,779 B3*A 0 CALCULATED 77,282,779 I C+D 34,145,714 I CALCULATED (43,137,065)1 F-E Page 1-26