RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2022-2023 PURSUANT TO ARTICLE XIIIB OF
THE CALIFORNIA STATE CONSTITUTION
WHEREAS, Proposition 4 was adopted by voters on November 6, 1979, thereby adding Article XIIIB of the California State Constitution, and WHEREAS, it is the desire of the City Council of the City of Pacifica to establish the Appropriation Limit for fiscal year 2022-2023 pursuant to Article XIIB of the California State Constitution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PACIFICA THAT:
1. the appropriations subject to limitations for the fiscal year 2022-2023 were $40,146,688;
2. the January 1, 2022 factors for the California per capita personal income increased by
7.55% and the population of the County of San Mateo decreased by 0.9198%;
3. the Appropriation Limit subject to limitation for the fiscal year 2022-2023 totals $50,995,869; and
BE IT FURTHER RESOLVED THAT $50,995,869 is hereby appropriated to “Reserve for General Operations.” The appropriations authorized by the adopted budget shall be chargeable to said account. Any unspent or unencumbered budget appropriations, and any balance of appropriations in the Reserve account shall not be expended without prior authorization from the City Council of the City of Pacifica, and BE IT FURTHER RESOLVED that any revenues from proceeds of taxes and user fees in excess of costs received during the fiscal year 2022-2023 over and above the appropriated limit of $50,995,869 must be returned to the taxpayers of the City of Pacifica in accordance with the procedure to be adopted by the Council of the City of Pacifica when such amount of refund is determined.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 27th day of June, 2022, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
Mary Bier, Mayor
APPROVED AS TO FORM: ATTEST:
Michelle Marchetta Kenyon, City Attorney Sarah Coffey, City Clerk
ANNUAL APPROPRIATION LIMT
FISCAL YEAR 2021-2022
Appropriations Limitation, imposed by Propositions 4 and 111, establishes a formula to restrict the amount of revenues that can be appropriated in any fiscal year. The Limit is based on actual appropriations for base fiscal year 1978-79 and is increased annually using the growth in population and the consumer price index as well as commercial property development within the City during the year. Revenues that are restricted to the limitation are those which are referred to as “proceeds of taxes”, such as sales tax, property tax and business license tax.
The City must adopt an appropriation limit for each fiscal year. Beginning with the fiscal year 1990-1991, the law provides the local agency with an option to calculate the adjustment factors by the following formulas:
Inflation - Either the percentage change in the California per capital income or the percentage change in the local assessment roll from the preceding year due to the addition of local non-residential construction.
Population - Either the City’s own population growth or the population growth of the entire County.
Historically Calculated Appropriations Limits:
Fiscal Year Method Used Limit
2008-2009 CA Income/San Mateo Population 29,912,483
2009-2010 CA Income/San Mateo Population 30,462,125
2010-2011 CA Income/San Mateo Population 30,035,741
2011-2012 CA Income/San Mateo Population 31,048,271
2012-2013 CA Income/San Mateo Population 32,534,535
2013-2014 CA Income/San Mateo Population 34,573,086
2014-2015 CA Income/San Mateo Population 34,897,143
2015-2016 CA Income/San Mateo Population 36,592,519
2016-2017 CA Income/San Mateo Population 38,908,408
2017-2018 CA Income/San Mateo Population 40,570,055
2018-2019 CA Income/San Mateo Population 42,269,940
2019-2020 CA Income/San Mateo Population 44,019,916
2020-2021 CA Income/San Mateo Population 45,604,633
2021-2022 CA Income/San Mateo Population 47,856,145
2022-2023 CA Income/San Mateo Population 50,995,869
Calculations:
Fiscal Year 2021-2022 Limit: $47,856,145
Adjustment Factors:
1. California per capital income change = 7.55%
2. San Mateo County Population change = -0.9198%
Total Adjustment: 1.0656
Step 1 Total all appropriations (2022-2023) operating and capital from general and special funds $ 80,087,999
Step 2 Deduct:
1. Non-Proceeds of Taxes $ (36,134,663)
2. Exempt Expenditures (Debt Service, Medicare) $ (3,984,891) Add:
1. Excess user fees which exceed actual costs $ 178,243 Step 3 Equals appropriations subject to limit (Step 1 - Step 2) $ 40,146,688 Step 4 Compare against 2022-2023 Appropriations (from below) $ 50,995,869 Dollar Amount Under Limit (Step 4 - Step 3) $ 10,849,181 Percentage of Limit (Step 3/Step 4) 78.73%
Step 5 Fiscal Year 21-22 Appropriation Limit $ 47,856,145 Fiscal year Growth Factor based on Non-Residential
Step 6 California per capita personal income growth 7.55% 1.0656 and the County of San Mateo Population Change -0.9198%
((7.55+100)/100) x ((-0.9198+100)/100)
Step 7 FY 22-23 Appropriations Limit (Step 5 x Step 6) $ 50,995,869 Step 8 FY 22-23 Appropriations Subject to Limit (from above) $ 40,146,688 Step 9 Dollar Amount Under Limit (Step 7 - Step 8) $ 10,849,181 Step 10 Percentage of Limit (Step 8/Step 7) 78.73%
Step 11 Percentage Under Limit (Step 9/Step 7) 21.27%
APPROPRIATIONS LIMIT CALCULATIONS
FISCAL YEAR 2022-2023
CITY OF PACIFICA