RESOLUTION NO. 23-0068
A RESOLUTION OF THE MANHATTAN BEACH CITY
COUNCIL ESTABLISHING THE APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2023-2024
THE MANHATTAN BEACH CITY COUNCIL HEREBY RESOLVES AS
FOLLOWS:
SECTION 1. The City Council makes the following findings:
A. Government code Section 7910 requires the City Council to establish its appropriations limit pursuant to Article XIII B of the State Constitution; and B. The appropriations limit to be applied to the “proceed s of taxes” as defined by Section 7910 of the Government Code for Fiscal Year 202 3-2024 has been calculated to be $99,327,390.
SECTION 2. The City Council elects to use as the annual adjustment factors in calculating the appropriations limit, the percenta ge change in California per capita income and the annual population for the City of Manhattan Beach.
SECTION 3. The City Council hereby establishes the appropriations limit for the City of Manhattan Beach for Fiscal Year 2023-2024 at $99,327,390.
SECTION 4. This Resolution shall take effect immediately.
SECTION 5. The City Clerk shall certify to the adoption of this Resolution.
ADOPTED on June 6, 2023.
AYES:
NOES:
ABSENT:
ABSTAIN:
________________________________
RICHARD MONTGOMERY
Mayor
ATTEST:
_______________________________
LIZA TAMURA
City Clerk
APPROPRIATIONS LIMIT CALCULATION
Article XIIIB of the California State Constitution, commonly referred to as the Gann Initiative or Gann Appropriations Limit, was adopted by California voters in 1980 and placed limits on the amount of proceeds of taxes that State and local agencies can appropriate and spend each year.
The limit is different for every agency and changes each year. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79, modified for changes in inflation and population. Inflationary adjustments are based on increases in the California per capita income or the increase in non-residential assessed valuation due to new construction. An adjustmen t is also made based on changes in Manhattan Beach’s population or County population.
For fiscal year 2023-2024, the estimated tax proceeds appropriated by the Manhattan Beach City Council are under the Limit. The adjusted Appropriation Limit for fiscal year 2023-2024 is $99,327,390. This amount is the maximum amount of tax proceeds the City is able to appropriate and spend in fiscal year 20 22-2023. The appropriations subject to the Limit are $73,005,280, leaving the City with an appropriations capacity of $26,322,110.
Section 7910 of the State Government Code requires a governing body to annually adopt, by resolution, an Appropriations Limit for the upcoming fiscal year.
Appropriations subject to limit
Fiscal Year 2023-2024 Revenues (all funds) $95,823,415
Less: Non tax proceeds 22,818,135
Plus: User fees in excess of costs -
Total appropriations subject to limit $73,005,280
Appropriation limit
Fiscal year 2022-2023 adjusted appropriation limit $95,823,415 A. Population adjustment (Based on change in City/County population) 0.992500 B. Change in per capita income 1.044400
Total Annual Adjustment = (A multiplied by B) 1.036567
Increase in appropriation limit $3,503,975
Fiscal year 2023-2024 appropriation limit $99,327,390
Appropriations subject to limit $73,005,280
Remaining appropriation capacity $26,322,110
Available capacity as a percent of appropriation limit 26.50% SPENDING LIMIT CALCULATION - FISCAL YEAR 2023-2024