CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2022-23
EXHIBIT A
Executive Summary
An annual calculation of the City's appropriation limitation is required by Article XIIIB of the California Constitution. City expenditures may increase only in relation to changes in per capita income or growth in non-residential assessment valuation, whichever is greater, and the population change for the City or County, whichever is greater.
I. Determination of Appropriation Limit:
2022-23 Appropriation Limit (Schedule 3) $ 37,844,018
II. Determination of Appropriations Subject to Limitation:
2022-23 Revenue Sources for Appropriations (Schedule 2) $ 56,323,874 Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (27,307,101) 2022-23 Appropriations Subject to Limitation (Schedule 1) $ 29,016,773 III. Amount Under/(Over) Appropriation Limit (I-II) $ 8,827,244 IV. Remaining Capacity as a Percent of FY 2022-23 Limit 23.33% The City's 2022-23 proposed budget appropriations that are subject to limitation are $8,827,244 million under the limitation as shown below:
CITY OF EAST PALO ALTO
CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2022-23
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) $ 56,323,874 Exclusions:
Non-Proceeds of Taxes (Schedule 2) (27,307,101)
Qualifying Capital Outlay -
Total Exclusions (27,307,101)
Net Revenue Sources Subject to Limitation $ 29,016,773
CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2022-23
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes $ 16,510,856 $ 5,496,425 $ 22,007,281
Sales and Use Tax 5,845,000 - 5,845,000
Utility Users Tax 1,702,684 - 1,702,684
Transient Occupancy Tax 1,376,000 - 1,376,000
Other Taxes 3,102,530 2,430,000 5,532,530
$ 28,537,070 $ 7,926,425 $ 36,463,495
Franchise Fees
Franchise Fees $ - $ 1,196,000 $ 1,196,000
Licenses, Fees, and Permits
Building and Other Permits $ - $ 430,300 430,300
Rent Stabilization Fees - 536,360 536,360
NPDES - 144,000 144,000
CCAG Measure M Vehicle Fee - 92,000 92,000
Development Impact Fees - 5,506,852 5,506,852
$ - $ 6,709,512 $ 6,709,512
Fines and Forfeitures
Vehicle Code and Parking Fines $ - $ 180,000 $ 180,000
Other Fees and Fines - - -
$ - $ 180,000 $ 180,000
Grants and Intergovernmental
California SLESF $ - $ 160,000 $ 160,000
California Department of Aging - - -
California SB2 - 57,000 $ 57,000
CalHome - 1,000,000 $ 1,000,000
ARPA Grant - 3,506,250 $ 3,506,250
Subventions and Reimbursements 42,500 103,000 145,500
Miscellaneous Grants - 450,000 450,000
$ 42,500 $ 5,276,250 $ 5,318,750
Charges for Current Services
Solid Waste and Recycling Charges $ - $ 2,850,000 $ 2,850,000 Water Capital Replacement Fees - 787,500 787,500
Building Charges - 411,000 411,000
Engineering Charges - 580,117 580,117
Planning Charges - 360,000 360,000
Police Services - - -
Miscellaneous Charges 6,000 - 6,000
$ 6,000 $ 4,988,617 $ 4,994,617
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CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2022-23
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Use of Money and Property (ex. Interest)
Facility Use and Leases - 454,500 454,500
Penalties - 20,000 20,000
$ - $ 474,500 $ 474,500
Other Miscellaneous
Solid Waste Reimbursements $ - $ 150,000 $ 150,000
Loan Proceeds and Reimbursements - - -
Other - - -
$ - $ 150,000 $ 150,000
Operating Budget Subtotal $ 28,585,570 $ 26,901,304 $ 55,486,874 Percent of Total 51.52% 48.48% 100.00%
Interest Allocation $ 431,203 $ 405,797 $ 837,000
TOTAL $ 29,016,773 $ 27,307,101 $ 56,323,874
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CITY OF EAST PALO ALTO
APPROPRIATIONS LIMIT COMPUTATION
CUMULATIVE GROWTH RATE
2022-23
Schedule 3
ASSESSED
PER CAPITA VALUATION
FISCAL BEGINNING POPULATION INCOME CHANGE ENDING
YEAR LIMIT FACTOR FACTOR FACTOR LIMIT
2007-08 15,463,621 1.0139 1.0442 N/A 16,371,558
2008-09 16,371,558 1.0126 N/A 1.0920 18,103,000
2009-10 18,103,000 1.0121 N/A 1.1120 20,374,116
2010-11 20,374,116 1.0117 N/A 1.0080 20,777,393
2011-12 20,777,393 1.0080 N/A 0.9810 20,545,684
2012-13 20,545,684 1.0098 1.0377 N/A 21,529,195
2013-14 21,529,194 1.0109 1.0512 N/A 22,878,172
2014-15 22,878,172 1.0117 N/A 1.1160 25,830,765
2015-16 25,830,765 1.0100 1.0382 N/A 27,085,675
2016-17 27,085,675 1.0091 1.0537 N/A 28,799,891
2017-18 28,799,891 1.0056 1.0369 N/A 30,029,838
2018-19 30,029,838 1.0065 N/A 1.0379 31,369,805
2019-20 31,369,805 1.0028 1.0385 N/A 32,668,760
2020-21 32,668,760 0.9987 1.0373 N/A 33,843,251
2021-22 33,843,251 0.9925 1.0573 N/A 35,514,101
2022-23 35,514,101 0.9908 1.0755 N/A 37,844,018
Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's Office N/A = Not applicable; calculation formula uses the higher of per capita or assessed valuation factors multiplied by population factor.
Notes:
Population factor: San Mateo County, ((-0.92+100)/100 = 0.9908) Per Capita Income Factor, ((7.55+100)/100 = 1.0755)
Total Change Factor (0.9908 x 1.0755) = 1.0656