CITY OF EAST PALO ALTO
Appropriation Limitation Calculation
2023-24
EXHIBIT A
Executive Summary
I. Determination of Appropriation Limit:
2023-24 Appropriation Limit (Schedule 3) $ 39,354,338
II. Determination of Appropriations Subject to Limitation:
2023-24 Revenue Sources for Appropriations (Schedule 2) $ 55,997,022 Deductions of Exempt Revenues and Qualified Capital (Schedule 1) (21,560,809) 2023-24 Appropriations Subject to Limitation (Schedule 1) $ 34,436,213 III. Amount Under/(Over) Appropriation Limit (I-II) $ 4,918,125 IV. Remaining Capacity as a Percent of FY 2023-24 Limit 12.50% 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.
The City's 2023-24 proposed budget appropriations that are subject to limitation are $4,918,125 under the limitation as shown below:
CITY OF EAST PALO ALTO
CALCULATION OF APPROPRIATIONS SUBJECT TO LIMITATION
2023-24
SCHEDULE 1
Total Revenue Sources For Appropriations (Schedule 2) 55,997,022 $ Exclusions:
Non-Proceeds of Taxes (Schedule 2) (21,560,809)
Qualifying Capital Outlay -
Total Exclusions (21,560,809)
Net Revenue Sources Subject to Limitation 34,436,213 $
CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2023-24
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Taxes
Property Taxes 17,924,000 $ 3,562,862 $ 21,486,862 $
Sales and Use Tax 6,030,000 - 6,030,000
Utility Users Tax 1,726,043 - 1,726,043
Transient Occupancy Tax 2,750,000 - 2,750,000
Other Taxes 4,964,943 1,755,000 6,719,943
$ 5,317,862 33,394,986 $ 38,712,848 $
Franchise Fees
Franchise Fees - $ 1,158,000 $ 1,158,000 $
Licenses, Fees, and Permits
Building and Other Permits - $ 432,600 $ 432,600
Rent Stabilization Fees - 605,000 605,000
NPDES - 144,000 144,000
CCAG Measure M Vehicle Fee - 92,000 92,000
Development Impact Fees - 2,226,092 2,226,092
$ 3,499,692 - $ 3,499,692 $
Fines and Forfeitures
Vehicle Code and Parking Fines - $ 185,000 $ 185,000 $
Other Fees and Fines - 40,000 40,000
$ 225,000 - $ 225,000 $
Grants and Intergovernmental
California SLESF - $ 160,000 $ 160,000 $
California Department of Aging - - -
California SB2 - 488,251 488,251 $
CalHome - 1,000,000 1,000,000 $
ARPA Grant - - - $
Subventions and Reimbursements 41,340 625,000 666,340
Miscellaneous Grants - 650,000 650,000
$ 2,923,251 41,340 $ 2,964,591 $
Charges for Current Services
Solid Waste and Recycling Charges - $ 2,988,000 $ 2,988,000 $ Water Capital Replacement Fees - 1,212,500 1,212,500
Building Charges - 411,000 411,000
Engineering Charges - 307,500 307,500
Planning Charges - 220,000 220,000
Police Services - 25,000 25,000
Miscellaneous Charges 11,700 441,679 453,379
$ 5,605,679 11,700 $ 5,617,379 $
1 of 2 Pages
CITY OF EAST PALO ALTO
SUMMARY OF REVENUES-BY CATEGORY
2023-24
SCHEDULE 2
Budgeted Budgeted
Proceeds Non-Proceeds Total
of Tax of Tax Revenues
Use of Money and Property (ex. Interest)
Facility Use and Leases - 485,820 485,820
Penalties - 50,792 50,792
$ 536,612 - $ 536,612 $
Other Miscellaneous
Solid Waste Reimbursements - $ 276,000 $ 276,000 $
Loan Proceeds and Reimbursements - - -
Other - 1,400,000 1,400,000
$ 1,676,000 - $ 1,676,000 $
Operating Budget Subtotal 33,448,026 $ 20,942,096 $ 54,390,122 $ Percent of Total 61.50% 38.50% 100.00%
Interest Allocation 988,187 $ 618,713 $ 1,606,900 $
TOTAL 34,436,213 $ 21,560,809 $ 55,997,022 $
2 of 2 Pages
CITY OF EAST PALO ALTO
APPROPRIATIONS LIMIT COMPUTATION
CUMULATIVE GROWTH RATE
2023-24
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
2023-24 37,844,018 0.9957 1.0444 N/A 39,354,338
Sources:State Dept.of Finance, Budget Resolutions & Prior Year Appropriation Limits, San Mateo County Assessor's OfficeN/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, ((-0.43+100)/100 = 0.9957)Per Capita Income Factor, ((4.44+100)/100 = 1.0444)Total Change Factor (0.9957 x 1.0444) = 1.0399091