LWV League of Women Voters of California
Smart Voter
Orange County, CA November 5, 2002 Election
Measure O
Appropriation Limit
City of Laguna Woods

Majority Approval Required

7,437 / 80.1% Yes votes ...... 1,843 / 19.9% No votes

See Also: Index of all Measures

Results as of Nov 12 4:00pm, 100.0% of Precincts Reporting (31/31)
Information shown below: Impartial Analysis | Arguments |

Shall the permanent appropriations limit of the City of Laguna Woods be set at $4,165,544?

Impartial Analysis from City Attorney
This measure will set the Constitutional appropriation limitation for the City of Laguna Woods. It does not impose any new or additional tax or fee. It requires a majority vote.

Existing law, enacted by the voters in 1979 as part of Proposition 4 (now California Constitution Article XIIIB), restricts governmental appropriation of revenues received from taxes by setting an annual appropriation limit for governmental agencies. This appropriation limit is sometimes called the "Gann limit."

The California Constitution requires new cities to set an annual appropriations limit based on a formula contained in Article XIIIB. The calculation of the appropriations limit must follow the formula in Article XIIIB, and also must be approved by the voters. The City of Laguna Woods has been operating under a provisional appropriation limit set by the Local Agency Formation Commission prior to incorporation of the City.

Approval of this measure is necessary to bring the City of Laguna Woods into compliance with the requirements of California Constitution Article XIIIB. If the measure is not approved, the effect is unknown. The measure probably must be resubmitted to the voters until approved.

A "yes" vote is a vote to approve the appropriations limit.

A "no" vote is a vote not to approve the appropriations limit.

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Arguments For Measure O Arguments Against Measure O
To establish a permanent appropriations limit for the City of Laguna Woods in conformance with the California Constitution, vote YES on Measure O.

Measure O is not a tax or an increase in the City's revenues. It simply allows the City of Laguna Woods to keep money it is already authorized to receive.

Every local government must establish an appropriations limit. The limit controls the amount of existing taxes # sales, property, motor vehicle, and transient occupancy tax # that Laguna Woods may keep and spend. These taxes are not unique to the City of Laguna Woods. All the tax rates were set by the State or County. The State and County pass through a portion of total sales, property and motor vehicle fees they collect to the City. The City receives all transient occupancy taxes collected based on a tax rate set by the County.

When Laguna Woods incorporated in 1999, the voters approved a provisional appropriations limit established by the Local Agency Formation Commission. This limit was based on an estimate of taxes the City would receive. State law requires Laguna Woods to set a permanent limit based on revenues it actually receives in its first year. Measure O establishes the City's permanent appropriations limit in accordance with a strict interpretation of the State Constitution. The measure does not increase existing taxes or authorize any new taxes. If the Measure is not adopted, it might prevent the City from continuing to receive money passed through by the County and State.

We urge you to approve Measure O so that the City can continue to receive and spend taxes collected from Laguna Woods' residents by the State and County.

No argument against this measure was submitted.

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Created: December 6, 2002 03:14 PST
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