DATE:
June 4, 2024
TO:
Paul Buddenhagen, City Manager
FROM:
Lawrence Chiu, Finance Director
SUBJECT:
Resolution Of The City Council Of The City Of Emeryville Adopting An Appropriations Limit For Fiscal Year 2025 Of $159,680,499
RECOMMENDATION
Staff recommends that the City Council adopt the above-entitled resolution in compliance with the state law requirement that the City Council establish an annual Appropriations Limit.
BACKGROUND
In 1979, Proposition 4, known as the Gann Initiative, was approved by the California voters. As a result, Article XIII (B) of the California Constitution (Government Code Section 7900-10) places a limit on appropriations from most government revenue sources, including tax proceeds, and requires that the governing body of a local jurisdiction annually establish, by resolution, an appropriations (spending) limit for the following fiscal year. The determination of an appropriations limit is a legislative act and adopted at a regularly scheduled City Council meeting.
Proposition 111, approved by California voters in 1990, further amended Article XIII (B) and updated the base year for calculating the appropriation limit to fiscal year 1986-87 beginning in fiscal year 1990-91.
Proposition 111 also revised that the annual adjustment factors used to calculate the Appropriations Limit to include:
A change in population growth for City or County (whichever is higher); and A change in California Per Capita Personal Income
Given these adjustment factors, staff calculated the Fiscal Year 2025 Gann Appropriations Limit using the City’s population change and the change in California per capita personal income factors. The basis for selection of this methodology is because the City’s population change is higher than Alameda County’s population growth. Based on these calculations, the City’s appropriations limit for Fiscal Year 2025 is $159,680,499.
DISCUSSION
Establishing an appropriations limit is a state law requirement that all cities must adopt at the beginning of each fiscal year at a regularly scheduled City Council meeting.
ADVISORY BODY REVIEW
There has been no communication with the budget committees.
CONCLUSION
Staff recommends that the City Council adopt the above-entitled resolution in compliance with the state law requirement that the City Council establish an annual Appropriations Limit.
PREPARED BY: Lawrence Chiu, Finance Director
APPROVED AND FORWARDED TO THE
CITY COUNCIL OF THE CITY OF EMERYVILLE:
Paul Buddenhagen, City Manager
ATTACHMENTS:
Draft Resolution
Exhibit A – Fiscal Year 2025 Gann Appropriations Limit
Fiscal Year 2025 Gann Appropriations Limit
MACROBUTTON DISPLAY City Council Meeting | June 4, 2024 Page PAGE 2 of NUMPAGES 22
City of Emeryville
CALIFORNIA
MEMORANDUM