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<br />155:5/25/06 <br /> <br />RESOLUTION NO. 2006-030 <br /> <br />A RESOLUTION OF THE CITY COUNCIL OF THE <br />CITY OF SANTA ANA ESTABLISHING THE <br />APPROPRIATION LIMIT OF THE CITY OF SANTA <br />ANA FOR FISCAL YEAR 2006-2007 <br /> <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br /> <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br /> <br />A Article XIIIB of the Constitution of the State of California, adopted by the <br />voters of the State of California in November 1978, imposes upon State <br />and local government the obligation to limit each fiscal year's <br />appropriations to those established in fiscal year 1978-79 as adjusted for <br />by inflation and population, together with other specified changes required <br />or permitted. <br /> <br />B. In June of 1990, the voters of the State of California approved Proposition <br />111 which amended Article XIII B to establish the limit originally calculated <br />for fiscal year 1986-87 as a new adjustment base and to change the <br />definition of the cost of living to be either the percentage change in <br />California per capita personal income from the preceding year or the <br />percentage change in the local assessment roll from the preceding year <br />for the jurisdiction due to the addition of local non-residential new <br />construction. <br /> <br />C. Proposition 111 further modified Article XIII B requirements by making <br />certain capital outlay, debt service, emergency and court ordered <br />expenditures not subject to the limit and by allowing expenditures in <br />excess of one year's limit to be offset by underexpenditures in an <br />immediately following year. <br /> <br />D. The City of Santa Ana has opted to use as the inflation adjustment factor, <br />the percentage change in the California per capita personal income from <br />the preceding year. <br /> <br />E. The City of Santa Ana has opted to use as the population adjustment <br />factor, the County's percentage change in population from the preceding <br />year. <br /> <br />F. Division 9 of Title I of the Government Code of the State of California <br />(commencing with section 7900), as enacted by 1980 Statutes, Chapter <br />1205, effective January 1, 1981, directs the governing body of each local <br /> <br />Resolution 2006-030 <br />Page 1 of 8 <br />