Joint Special Council/BFPD
06/20/23 05:30 PM
Finance
Heidy Riley
Resolution
Doc ID: 5381
COUNCIL RESOLUTION
AGENDA MATTER:
APPROVAL OF ANNUAL 2023/2024 APPROPRIATIONS LIMIT
EXECUTIVE SUMMARY:
As per Section 7910 of the Government Code, each year the City of Barstow is required to adopt a resolution to establish its appropriation limit for the fiscal year. Pursuant to Article XIII B, such adoption must occur at a regularly scheduled meeting and the required documentation used to determine the appropriations is presented for review by the City Council and the public.
DISCUSSION:
In November 1979, the voters of California approved Proposition 4, commonly known as the Gann Initiative. The proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government. Proposition 4 became effective for the 1980/1981 fiscal year, but the formula for calculating the limits was based on the 1978/1979 "base year" revenues.
The City of Barstow is required to annually calculate its appropriations limit. The calculation must be approved by the City Council each fiscal year. For FY 2023/2024, the Appropriations Limit (also known as the Gann Limit) is $53,717,014. The City of Barstow’s net proceeds of taxes are subject to the limit of $27,222,900; thereby, the City of Barstow is $26,494,114 under its limit for this period.
FISCAL IMPACT:
None.
RECOMMENDED ACTION:
Staff recommends that the City Council take the following actions:
1. Approve the annual 2023/2024 appropriations limit, which is calculated using the change in County population and the change in growth in California personal income, which are determined by the State of California, Department of Finance.
2. Adopt Resolution No. _____-2023, establishing the appropriations limit for FY 2023/2024, by title only and waive the reading.