APPROVED AS TO FORM AND LEGALITY
________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. _______________ C.M.S.
RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR
FISCAL YEAR 2024-25 PURSUANT TO ARTICLE XIIIB OF THE
CALIFORNIA CONSTITUTION
WHEREAS, Article XIIIB of the California Constitution (“Article XIIIB”) was passed by the California electorate on November 6, 1979, and became effective on July 1, 1980; and
WHEREAS, Article XIIIB establishes a limit on the amount of tax revenue local governments can appropriate in any fiscal year and requires that local governments calculate appropriations limits annually; and
WHEREAS, Title 1, Division 9 (commencing with Section 7900 ) of the California Government Code implements Article XIIIB and provides the method for calculating annual appropriations limits based on appropriations limit for the prior fiscal year; and
WHEREAS, each year, the limit is recalculated by multiplying the previous year’s limit by adjustment factors for population growth and inflation (cities have the option of using their own growth or the growth of the entire county in which the city is located as the population adjustment factor, and the option of using the increase in California Per Capita Income or the increase in the assessed valuation of non-residential property in the City as the inflation adjustment factor); and
WHEREAS, Section 4 of Article XIIIB provides that the appropriations limit may be changed by the electors of the government entity for a term established by the electors but that shall not exceed four years from the vote of said electors; and
WHEREAS, on March 5, 2024, City of Oakland voters passed Measure D, which increased the City’s appropriations limit until March 5, 2028 to allow the City to continue to spend tax revenue from twelve (12) voter-approved tax measures including Measure M (The Emergency Medical Services Retention Act of 1997); Measure N (The Paramedic Services Act of 1997), Measure C (The Library Services Retention and Enhancement Act), Measure C (City of Oakland Hotel Tax of 2009), Measure Z (The 2014 Oakland Public Safety and Services Violence Prevention Act), Measure HH (Sugar-Sweetened Beverage Distribution Tax of 2016), Measure D (The 2018 Oakland Public Library Preservation Act), Measure W (The Oakland Vacant Property Tax Act of 2018), Measure Q (The 2020 Oakland Parks an d Recreation Preservation, Litter Reduction, Homelessness Support Act), Measure AA (The Children’s Initiative of 2018), Measure
-2-
T (The Business Tax Ordinance of 2022), and Measure Y (The 2022 Oakland Zoo Animal Care, Education and Improvement Ordinance); and
WHEREAS, for 202 4-25 Oakland is using the population growth of the County of Alameda and the increase in California Per Capita Income; and
WHEREAS, pursuant to Government Code Section 7903(b) city governments are required to include specified state subventions within their appropriations limits; and
WHEREAS, DOF has identified that the City of Oakland is a recipient of a total of $32,000,000 in subventions and has instructed city governments to use the state identified subventions for FY 2024-25 appropriations limit calculations; and
WHEREAS, City’s calculation includes $32,000,000 in state subventions; now, therefore be it
RESOLVED: That the Fiscal Year 2024-25 appropriations limit for the City of Oakland is $1,129,162,217, as reflected in Exhibit A attached hereto and incorporated herein by reference; and be it
FURTHER RESOLVED: That the growth factors used to calculate the limit are the county population change and the increase in the California per capita income.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of
the City of Oakland, California
3366836v3/ARM
Exhibit A
1 ARTICLE XIIIB APPROPRIATIONS LIMIT
Fiscal Year 2024-25
FY 2023-24 Appropriations Limit $810,109,612
FY 2024-25 Adjustment Factors
County of Alameda Population Change = -1.0054 (-0.54%) California Per Capita Income Change = 1.0362 (3.62%) Combined Change = (-1.0054) x 1.0362 = 1.0306
FY 2024-25 Appropriations Limit
(After Adjustment for Growth Factor of 1.0306) $834,898,966
Appropriations Limit Override (Measure D): $294,263,251
Emergency Medical Services (Measure M) 2,654,188 Paramedic Services (Measure N) 2,115,804
Library Services Retention & Enhancement (Measure C) 20,132,632 Transient Occupancy Tax - Hotel Tax (Measure C) 5,382,823 Public Safety and Violence Prevention Services (Measure Z) 21,615,790 Sugar Sweetened Beverages Distribution Tax (Measure HH) 6,896,218 Public Libraries Preservation (Measure D) 16,275,705 Vacant Property Tax (Measure W) 5,362,916
Parks & Recreation Preservation (Measure Q) 33,008,342 Children’s Initiative of 2018 (Measure AA) 45,752,229 Business Tax Ordinance (Measure T) 120,056,728
Oakland Zoo Animal Care Ordinance (Measure Y) 15,009,876
TOTAL Appropriation Limitation with Override $1,129,162,217 Exhibit A
2 Not all City appropriations are subject to the limitation of Article XIIIB. Determining which appropriations are subject to the limit requires classifying each funding source as either proceeds of taxes or non -proceeds of taxes. Property tax , and local taxes are subject to limitation. State taxes that are subvented to the City count against the City’s limit if their use is unrestricted, as in the case of sales tax and motor vehicle in lieu. State subventions that are restricted in use are applied against the State’s limit rather than the City’s, so they are considered non -proceeds of taxes for the City’s calculation and includes Measure B and BB sales tax and gas tax . Government Code Section 7903 requires city governments to include specified state subventions within the appropriations limits commencing with the fiscal year 2021-2022, which are considered proceeds of taxes included in the Grants and Subsidies category. Interest income is prorated so that the interest earned on tax revenue is included as proceeds of taxes.
Most of the City’s other revenue sources are classified as non -proceeds of taxes and are not subject to the appropriations limit: franchise fees, Landscape and Lighting Assessments (special benefit assessment districts are excluded from the limitation), fines and penalties, license and permit fees, service charges, rentals and concessions, federal grants, Oakland Redevelopment Agency reimbursements (redevelopment agencies are exempt from Article XIIIB), internal service revenues, and other miscellaneous revenues. Enterprise funds – sewer service charges and golf course revenues – are also exempt from the limitation. Fund transfers are re - appropriations of revenue received in previous years; these funds were included in the calculation of appropriations subject to limitation in the year they were received and are not counted twice.
Exhibit A
3 ARTICLE XIIIB - APPROPRIATIONS SUBJECT TO LIMITATION
FY 2024-25
Revenue
PROPERTY TAX $474.81 $474.81 $0.00
STATE TAX
Sales Tax 99.61 63.73 35.88
Gas Tax 22.79 22.79
Subtotal, State Taxes $122.40 $63.73 $58.67
LOCAL TAXES
Business License Tax 120.06 120.06 0.00
Utility Consumption Tax 68.44 68.44 0.00
Real Estate Transfer Tax 73.72 73.72 0.00
Transient Occupancy Tax 25.12 25.12 0.00
Parking Tax 18.42 18.42 0.00
Sugar Sweetened Beverage Tax 6.90 6.90 0.00
Special Taxes 162.76 162.76 0.00
Subtotal, Local Taxes $475.41 $475.41 $0.00
LANDSCAPE & LIGHTING ASSESSMENT 19.47 0.00 19.47
INFRASTRUCTURE BOND 207.99 0.00 207.99
OTHER LOCAL FEES 64.48 0.00 64.48
SERVICE CHARGES 232.34 0.00 232.34
GRANTS & SUBSIDIES 116.29 32.00 84.29
MISCELLANEOUS 246.89 0.00 246.89
FUND TRANSFERS 258.72 0.00 258.72
INTEREST (Prorated) 4.61 2.50 2.11
TOTAL REVENUE $2,223.40 $1,048.44 $1,174.96
EXEMPTIONS* (150.23)
$898.21
GANN APPROPRIATIONS LIMIT $834.90
GANN LIMIT OVERRIDE (MEASURE D) $294.26
APPROPRIATIONS LIMIT WITH
GANN OVERRIDE 1,129.16
AMOUNT OVER/(UNDER) LIMIT ($230.95)
* Property tax revenue appropriated to service voter-approved debt is exempted.
REVENUE APPROPRIATIONS
SUBJECT TO LIMITATION
Total Proceeds of
Taxes
Non Proceeds
of Taxes