6,751 / 73.5% Yes votes ...... 2,439 / 26.5% No votes

See Also: Index of all Measures

Pursuant to California Government Code Section
56842.6, the initial limit of a newly incorporated city is provisional, and a permanent limit must be submitted to the voters at this municipal election. The permanent limit is based upon the actual revenue received by the City during the first full fiscal year of operation, and application of the statutorily prescribed formula. The law does not authorize adjustments of the formula for projected increases, such as the $5,000,000 projected by the City resulting from non-residential development and preservation of state provided revenues. However, Section 4 of Article XIII-B of the California Constitution authorizes deviations from the formula pursuant to the voters' approval, effective for four years.

If a majority of the votes cast are in favor of the measure, the City shall be subject to a permanent appropriation limit of $10,626,045.00, which can be adjusted to no more than $15,626,045.00 in the next four years. If the majority of the votes cast are in opposition of the measure, there will not exist a permanent appropriation limit for the City, and the California State Legislature has made no provision for an alternative method of establishing such limit.

Additionally, this measure does not impose any taxes. It simply authorizes the City to spend its actual revenue as long as it does not exceed the appropriation limit established by the measure.

Under State law, a newly incorporated city has a temporary appropriations limit. A permanent limit must be submitted to the voters, which is based upon a prescribed statutory formula. Using the prescribed formula, the City's permanent appropriations limit is $10,623,045.00.

The California Coalition authorizes the voters to approve adjustments of the Limit effective for four years. The City will be receiving non-residential development revenues that the prescribed formula does not address. Furthermore, the City Council must insure that the City can receive state provided revenues. These revenues are projected to be a total of $5 million over the next four years, beyond the permanent limit.

Adopting the permanent appropriations limit with the needed $5 million adjustment over four years will ensure that the City receives all appropriate revenues but does not spend any taxes received in excess of the voter-approved Limit. The City Council is confident that adopting the Limit will not create a financial hardship for the City or restrict the City's ability to provide the services anticipated by the voters' who supported incorporation. Adopting the permanent appropriations limit and adjustment will not impose or increase any taxes. It simply establishes the amount of tax money the City can receive and spend in any given year.

Voting in favor of this ballot measure will result in the adoption of the permanent appropriations limit and an adjustment over four years for the City of Rancho Santa Margarita, which will fulfill the requirements of State Law. The City Council of the City of Rancho Santa Margarita urges a YES VOTE ON MEASURE BB.