Exhibit A
Proposition 4 (Gann Limit) Analysis
Section 7910 of the California Government Code and Article XIIIB of the California Constitution (referred to as the “Gann Limit”) restrict the amount of revenue that cities can appropriate in any fiscal year.
Annually, the City must adopt a resolution to approve the appropriations limit based on actual appropriations in FY 1978-79, adjusted by a.) the greater of growth in California per capita income or the percentage change in the local assessment roll from t he preceding year due to the addition of new nonresidential construction in the City, and b.) the greater of the growth in City or County population.
Section 37200 requires that the Gann Limit and the total appropriations subject to the limitation be published in the annual budget. The City’s limitation is calculated annually and was adopted by City Council resolution as part of its annual operating budget. Below is the calculation.
Actual Projected Projected
FY 2023/24 FY 2024/25 FY 2025/26
Growth Factors A & B (use the greater of each)
(A) City Population Growth Factor (%) OR 0.18% 0.32% -0.07% County Population Growth Factor -0.52% 0.04% -0.03%
(B)
% change due to non-residential construction-Not
Available
Per capita personal income % change over prior
year 4.44% 3.62% 6.44%
New Factor to Apply to Prop 4 Limit
(City or County population factor X change in non-
residential construction) OR N/A N/A N/A
(City or County population factor X change in per
capita personal income) 1.0463 1.0395 1.0637
Gann Limit
310,476,000
322,740,000
343,299,000
Estimated Revenues Subject to the Limit
116,134,532
121,328,533
123,499,757
Unused Appropriations Limit
194,341,468
201,411,467
219,799,243
The following represents a trend analysis of the appropriations limit versus the net proceeds of taxes for the last five fiscal years. The City expects to remain under its appropriations limit well into the future.
109 114 116 121 123
168 183 194 201 220
-
50 100
150
200
250
300
350
400
FY 2021/22 FY 2022/23 FY 2023/24 FY 2024/25 FY 2025/26
Millions
Revenues Subject to Limit Unused Appropriations Limit