Resolution 2022-XX Page 1 of 3
RESOLUTION NO. 2022-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR
2022/23 FOR THE CITY OF FREMONT
WHEREAS, Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979; with modifications under Proposition 111, passed by the voters of California in June 1990; and implemented by California Government Code Sections 7900, and following), speci fies that appropriations of governmental entities may increase by an amount not to exceed the change in population and the change in either the California per capita income or the change in non -residential assessed valuation due to new construction within the City; and
WHEREAS, documentation used in the determination of the fiscal year 2022/23 appropriations limit has been available to the public prior to City Council’s determination in this matter, as required by Government Code Section 7910.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FREMONT HEREBY RESOLVES AS FOLLOWS:
SECTION 1 . Pursuant to the appropriations limit formula set forth by Government Code Sections 7900-7913, the City Council does hereby establish the appropriations limit for fiscal year 2022/23 for the City of Fremont a t $877,488,604 , as documented in Exhibit A, attached hereto and incorporated herein by reference.
SECTION 2. The City Council of the City of Fremont adopts the following adjustment factors for use in determining the fiscal year 2022/23 appropriations limit:
Population Factor: The percentage change in the City’s population from January 1 of the preceding calendar year to January 1 of the current calendar year , as provided in the State of California Department of Finance “Price and Population Information ” publication, dated May 2022.
Per Capita Personal Income : The percentage change in California per capital personal income from the preceding year as provided i n the State of California Department of Finance “Price and Population Information” publication , dated May 202 2. ///
///
///
Resolution 2022-XX Page 2 of 3
SECTION 3. This resolution shall take effect immediately upon its adoption.
ADOPTED June 14, 2022, by the City Council of the City of Fremont, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST: APPROVED AS TO FORM:
City Clerk City Attorney
Resolution 2022-XX Page 3 of 3 Exhibit A to Resolution No. 2022-XX
Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979, with modifications under Proposition 111 passed in June 1990, and implemented by California Government Code sections 7900, and following) provides the basis for the appropriations limitation. In brief, the City’s appropriations growth rate is limited to changes in population and either the change in California per capita income or the change in the local assessment roll due to new, non-residential construction. The formula to be used in calculating the growth rate is:
% change in population + 100
100
multiplied by either
% change in per capita income + 100
100
or
% change in assessment roll due to non-residential construction + 100 100
The resultant factor times the previous appropriations limit equals the new appropriations limit.
Both the California per capita personal income price factor and the population percentage change factor are provided by the State Department of Finance to local jurisdictions each year. The population percentage change factor estimates the change in the City’s population between January of the previous fiscal year and January of the current fiscal year. Reports that present changes in new non-residential assessed value are provided by the County of Alameda. These numbers provide the basis for the factor to be used in the City’s calculation of the appropriations limit. Of the two methods above, the City is using the “per capita personal income” factor because it results in the higher appropriations limit.
On May 2, 2022, the State Department of Finance notified each city of the population change factor and the per capita personal income factor to be used in determining the appropriations limit. The percentage change in per capita income is 7.55%. The calculation as applied to the City of Fremont for FY 2022/23 is as follows:
The population change on January 1 of the previous year (228,872) compared to the population on January 1, 2022 (229,476) is 604, or a 0.26% increase.
The change in per capita personal income is 7.55%.
The factor for determining the year-to-year increase is computed as:
0.26 + 100 X 7.55 + 100 = 1.0783
100 100
Applying this year’s factor of 1.0783 to last year’s limit of $813,770,383 yields the Appropriations Limit for FY 2022/23 of $877,488,604.
Based on an operating budget of $249,295,000 Fremont is not at risk of exceeding the appropriations limit. The Appropriations limit is adopted by the City Council concurrently with the adoption of the FY 2022/23 operating budget.