H:\Budget\FY2025-27\AgendaPacket\City\GANN_Resolution-City.docx
GARDEN GROVE CITY COUNCIL
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN
GROVE REVISING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-25, AND ESTABLISHING THE APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2025-26
WHEREAS, Chapter 1205 of the Statutes of 1980, effective January 1, 1981, implemented Article XIII B of the California Constitution, which establishes an annual appropriations limit for local governments; and
WHEREAS, Proposition 111, approved by the voters in 1990, amended Article XIII B to m odify the factors used in calculating the annual appropriations limit, allowing local jurisdictions to use a combination of population change and either the change in California per capita personal income or the change in the local assessment roll due to non-residential new construction; and
WHEREAS, the City Council previously adopted an appropriations limit for Fiscal Year 2024-25 by Resolution No. 9859-24; and
WHEREAS, the City’s independent auditor, in a report dated December 30, 2024, identified a variance in the calculation of the Fiscal Year 2023-24 appropriations limit, resulting in an under-calculation of $1,869,422; and
WHEREAS, based on the auditor’s recalculation, it is necessary to revise the appropriations limit for Fiscal Year 2024-25 accordingly.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Garden Grove hereby revises the appropriations limit for Fiscal Year 202 4-25 to $198,777,152, as detailed in Exhibit “A” attached hereto and incorporated herein by reference.
BE IT FURTHER RESOLVED that the appropriations limit for Fiscal Year 2025 - 26 is established at $211,936,200, and the appropriation subject to limitation is $114,606,751, as shown in Exhibit “B” attached hereto and incorporated herein by reference.
EXHIBIT “A”
ARTICLE XIII-B CALCULATIONS
FOR
FISCAL YEAR (FY) 2024-25
Per Capita Change = 3.62%1 (Personal Income)
Population Change = 1.17%1
Per Capita converted to a ratio: 3.62+ 100 = 1.0362
100
Population converted to a ratio: 1.17 + 100 = 1.0117 100
Calculation of factor for FY 2024-25: 1.0362 X 1.0117 = 1.0483
Appropriations Limit
FY2023-24 Appropriations Limit $189,618,5752
FY2024-25 Adjustment Factor X 1.0483
FY2024-25 Appropriations Limit $198,777,152
Appropriations Subject to Limitation
Proceeds of Taxes $114,148,536
Exclusions 0
Appropriations Subject to Limitation $114,148,536
FY2024-25 Appropriations Limit $198,777,152
Over/(Under) Limit $(84,628,616)
1 Released by the California Department of Finance, Demographic Research Unit, on May 1, 2024.
2 $189,618,575 reflects a revision to the adopted FY 202 3–24 Appropriations Limit, based on the independent auditor’s recalculation completed in December 2024.
EXHIBIT “B”
ARTICLE XIII-B CALCULATIONS
FOR
FISCAL YEAR (FY) 2025-26
Per Capita Change = 6.44%1 (Personal Income)
Population Change = 0.17%1
Per Capita converted to a ratio: 6.44+ 100 = 1.0644
100
Population converted to a ratio: 0.17 + 100 = 1.0017 100
Calculation of factor for FY 2025-26: 1.0644 X 1.0017 = 1.0662
Appropriations Limit
FY2024-25 Appropriations Limit $198,777,1522
FY2025-26 Adjustment Factor X 1.0662
FY2025-26 Appropriations Limit $211,936,200
Appropriations Subject to Limitation
Proceeds of Taxes $114,606,751
Exclusions 0
Appropriations Subject to Limitation $114,606,751
FY2024-25 Appropriations Limit $211,936,200
Over/(Under) Limit
$(97,329,449)
1 Released by the California Department of Finance, Demographic Research Unit, on May 1, 2025.
2 $198,777,152 reflects a revision to the adopted FY 2024 –25 Appropriations Limit, based on the independent auditor’s recalculation of the FY 2023–24 limit completed in December 2024.