1 TO: City Council
FROM: Ryan Smoot, City Manager
PREPARED BY: Susan Kamada, Administrative Services Director MEETING DATE: August 15, 2023
SUBJECT: Adoption of Resolution Confirming the Annual Appropriations Limit for Fiscal Year 2023/2024
RECOMMENDATION
Adopt Resolution No. 2023-16 confirming the Annual Appropriations Limit for Fiscal Year 2023/2024
BACKGROUND
In November 1979, Proposition 4 was approved by the voters adding Article XIIIB, also known as the Gann Limitation to the State Constitution to ensure that limits were placed on all state and local government appropriations. These appropriations calculations must be approved by the City Council on an annual basis.
In 1980, the State Legislature added Section 7910 of the Government Code stating that the governing body of each City must establish, by resolution, an appropriations limit for the following year.
In June 1990, the voters of California approved Proposition 111 which revised the annual adjustment factors applied to the 1986-1987 Limit and each year thereafter.
ANALYSIS
Data provided by the State Department of Finance indicates that the population change in the City of Lomita over the last year was -1.02%. Additionally, California’s per capita personal income change was 4.44%. These factors combined will increase the City’s annual appropriations limit to $35,058,599 for the Fiscal Year 2023-24, with appropriations subject to the Limit of $8,829,730, or $26,228,829 below the Limit.
Item No. 7l
CITY OF LOMITA
CITY COUNCIL REPORT
2 FISCAL IMPACT
Adoption of this Resolution does not have an impact on the FY2023/2024 Budget.
ATTACHMENT
1. Resolution No. 2023-16
Reviewed by: Approved by:
________ ____________________________
Gary Y. Sugano Ryan Smoot
Assistant City Manager City Manager
Prepared by:
__________________________
Susan Kamada
Administrative Services Director
RESOLUTION NO. 2023-16
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOMITA,
CALIFORNIA, CONFIRMING THE FACTORS USED FOR
CALCULATING THE ANNUAL APPROPRIATION LIMIT FOR FISCAL
YEAR COMMENCING JULY 1, 2023, AND ENDING JUNE 30, 2024
WHEREAS, the voters of California on November 6, 1979, added Article XIIIB (Proposition 4) to the State Constitution placing various limitations on the appropriations of the state and local governments; and
WHEREAS, the voters of California in June 1990 modified Article XIIIB by approving Proposition 111 and SB 88 (Chapter 60/90) which revised the annual adjustment factors to be applied to the 1986-87 Limit and each year thereafter; and WHEREAS, pursuant to the above and Government Code sections 7900 et seq. the City must annually select by a recorded vote of the City Council its change:
a) In the cost of living between (1) the percentage change in California per capita personal income from the preceding year or (2) the percentage change in the local assessment roll from the preceding year due to the addition of local nonresidential construction in the city; and
b) In population between the percentage change in (1) the City’s own population change or (2) the entire county’s population; and
WHEREAS, the City of Lomita has complied with all the provisions of Article XIIIB and Government Code section 7900 et seq. in determining the Appropriations limit for the Fiscal Year 2023-2024; and
WHEREAS, the documentation used in determining the City’s appropriations limit and other necessary and related determinations has been available to the public for at least 15 days prior to the City Council meeting where this resolution was adopted.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LOMITA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. That the appropriations limit for the City of Lomita for the Fiscal Year 2023- 2024 shall be $35,058,559.
Section 2. That the change in cost of living factor being used to calculate the Fiscal Year 2023-2024 appropriations limit is the change in California per capita personal income.
Attachment No. 1
Resolution No. 2023-16
Section 3. That the change in population factor being used to calculate the Fiscal Year 2023-2024 appropriations limit is the population percentage change for the City of Lomita.
Section 4. This Resolution will become effective immediately upon adoption.
Section 5. That the City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED and ADOPTED, this 15
th day of August 2023.
________________________________
Barry Waite, Mayor
ATTEST:
_____________________________________
Kathleen Horn Gregory, MMC, City Clerk
APPROVED AS TO FORM:
______________________________
Trevor Rusin, City Attorney