SPECIAL JOINT HAYWARD CITY
COUNCIL/ HAYWARD
REDEVELOPMENT SUCCESSOR
AGENCY/ HAYWARD HOUSING
AUTHORITY MEETING
JUNE 7, 2022
PRESENTATIONS
GANN APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2023
PUBLIC HEARING
ITEM #12
PH 22-026
CITY OF HAYWARD
FY 2023 GANN
APPROPRIATION LIMIT
1 City of Hayward
FY 2023 Gann Appropriation Limit
Nicole Gonzales, Deputy Director of Finance June 7, 2022
2 What is a Gann Appropriations Limit?
• State Proposition 4, commonly known as the Gann Initiative, was approved by California v
oters in November 1979.
• Proposition 4 created Article XIIIB of the State Constitution, which placed limits on the am
ount of revenue that can be spent by government agencies. • Proposition 111, was approved by the voters in June 1990 and provided new adjustment f
ormulas to the Gann Limit and requires local governments to adopt Gann Appropriations Limits each fiscal year.
• The appropriations limitation imposed by Propositions 4 and 111 creates a restriction on the am
ount of revenue that can be appropriated in any fiscal year. The limit is based on actual appropriations during the 1978-79 fiscal year and is increased each year using population and inflation growth factors.
• Only revenues that are classified as "proceeds of taxes" are subject to the limit. 3 Gann Appropriations Limits
FY 2023
Gann Appropriation Limit
$386 million
$75
$83
$87
$104
$108
$109
$122
$133
$109
$127
$134
$238
$253
$257
$270
$287
$301
$315
$329
$343
$361
$386
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Gann Appropriation Limit
($ in millions)
Appropriations Subject to Limit Appropriations Limit
4 Recommendation
• Adopt a Resolution establishing a Gann Appropriation Limit for F
iscal Year 2023.
FY 2023 BUDGET/ CIP
PUBLIC HEARING AND
ADOPTION
PUBLIC HEARING
ITEM #13
PH 22-024
FY 2023 PROPOSED
OPERATING & CIP BUDGETS
PUBLIC HEARING &
ADOPTION
Hayward Police Department Year-End Report
FY 2023
Proposed
Operating & CIP
Budgets
Public Hearing &
Adoption
June 7, 2022
Nicole Gonzales, Deputy Director of Finance
Hayward Police Department Year-End Report
Where We’ve Been
Jan.–Feb.
Budget Kick-Off
Discussion of FY 2023 Budget Process and Work Session
Framework with CBFC
Department budget submittals are due
Department budget review meetings
CIP Screening Committee
Mar.–Apr.
Department budget review meetings with City Manager
CIP Screening Committee
Presentation of the Draft CIP to City Manager
Final Department Budget Submittals due
Budget Document delivered to Council
May
Saturday Budget Work Session #1
CIP Presentation and Work Session #2
June
June 7 – Public Hearing (and potential adoption) of
Proposed FY 2023 Operating and CIP Budgets
June 14 – Budget Adoption, if not on June 7
Hayward Police Department Year-End Report
FY 2023 Budget Expenditure Summary
Hayward Police Department Year-End Report
FY 2023 Proposed Operating Expenditure Budget
in 1,000's
FY 2022
Adopted
FY 2023
Proposed
4/28/2022
FY 2023
Proposed
6/7/2022
Change
from
4/28/2022
$
Change from
FY 2022
Adopted
%
Change from
FY 2022
Adopted
General Fund $ 184,787 $ 193,986 $ 194,688 $ 702 $ 9,901 5.4% All Other Funds $ 164,701 $ 205,033 $ 206,617 $ 1,584 $ 41,916 25.4% Total City Budget $ 349,488 $ 399,020 $ 401,305 $ 2,286 $ 51,817 14.8% Hayward Police Department Year-End Report
FY 2023 Proposed Operating Budget
Revisions
General Fund
1. Internal Service Fund adjustments –Net increase of
$25,000
2. Restore program budget reduction in Public Works
and Utilities - Increase of $60,000
3. Library Strategic Plan – Contract Services – Increase of $75,000
4. Security Services at the Main Library and Weekes
Branch Library – Increase of $116,480
5. Personnel Reclassification in Police Department –
Increase of $41,268
6. Transfer-Out to new Cannabis Community Fund (1/7
of Cannabis Tax collected in FY 2020 and FY 2021) –
Increase of $63,552
7. Transfer-Out to Risk Management Fund for projected
increase in insurance premium expense – Increase of
$320,270
All Other Funds
1. ARPA Project Appropriation for Tax-
Defaulted/Foreclosure Property Program
implementation in Year 2 rather than Year 3 of the
Federal Stimulus Expenditure Plan – Increase
$1,000,000
2. CDBG Entitlement Award for program income –
Increase of $366,212
3. Financial Services for Redevelopment Successor
Agency – Increase of $5,000
4. Bay Area Water Supply & Conservation Agency
(BAWSCA) membership - Increase of $101,621
5. Transfer-Out across several operating funds to Risk
Management Fund for projected increase in insurance
premium expense – Increase of $111,752
Hayward Police Department Year-End Report
General Fund Five Year Forecast Update
Proposed FY 2023
GENERAL FUND FORECAST (FY 2023 Proposed) FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 in thousands Year 1 Year 2 Year 3 Year 4 Year 5
Revenues 191,891 198,852 206,572 213,573 218,795
Expenditures 194,688 206,248 212,685 218,507 224,418
Net Change in Reserve - Surplus / (Shortfall) (2,797) (7,396) (6,113) (4,934) (5,623) Beginning Balance $39,394 $43,847 $36,451 $30,338 $25,404 Net Change in Reserve - Surplus / (Shortfall) (2,797) (7,396) (6,113) (4,934) (5,623) American Rescue Plan Act $7,250 - - - -
Ending Balance $43,847 $36,451 $30,338 $25,404 $19,782
Hayward Police Department Year-End Report
General Fund Revenue by Source
Property Tax
32.9%
Transfer Tax
8.1%
Sales Tax
23.0%
Utility User's Tax
9.8%
Franchise Fees
5.9%
Other Taxes
4.6%
Charges for Service
6.1%
Other & Interest
1.8%
Intergovernmental
4.3%
Fines
1.3%
Transfers In
2.2%
Hayward Police Department Year-End Report
General Fund Expenditures by Category
Hayward Police Department Year-End Report
9 FY 2023 CIP
Expenditures
by Category
Total:
$118M
Hayward Police Department Year-End Report
10 Total:
$118M
FY 2023 CIP
Expenditures
by Fund
Hayward Police Department Year-End Report
1. Conduct a Public Hearing in accordance with the City’s Charter • SECTION 1202. PUBLIC HEARING ON THE BUDGET
2. Adopt the FY 2023 Operating and CIP Budgets in accordance with the City
’s Charter
• SECTION 1203. ADOPTION OF THE BUDGET After the conclusion of the public he
aring, the Council shall further consider the proposed budget and make any r
evisions thereof that it may deem advisable and thereafter it shall adopt the budget w
ith revisions, if any. Upon final adoption, the budget shall be in effect for the ensuing fiscal year*.
* SECTION 1200. THE FISCAL YEAR Unless otherwise provided by ordinance, the fiscal year of the City shall b
egin on the first day of July of each year and end on the thirtieth day of June of the following year.
Recommendation
Hayward Police Department Year-End Report
Questions,
Discussion,
and Action