City Council Agenda Report
TO: Mayor McCord and Members of the City Council
FROM: Ken Irwin, City Manager
BY: Saadiah Ryan, Finance Director
MEETING DATE: June 21, 2022
ITEM NO: 5.12
SUBJECT: Approve Resolution No. 2022-39 Setting the Appropriations Limit for Fiscal Year 2022-23.
RECOMMENDATION
Motion to Approve Resolution No. 2022-39 Setting the Appropriations Limit for Fiscal Year 2022-23.
BACKGROUND
Annually, the City is required to prepare a statement of Appropriations Limit in compliance with Section XIIIB of the California Constitution and Section 7910 of the California Government Code. The attached and supporting documentation provides for this annual declaration.
While Proposition 13 has limited property tax revenue, the effect of Proposition 4 is to restrict the spending from taxes collected. This does not include user fees, non General Fund activity, Enterprise Fund activity, debt service and capital outlay.
ANALYSIS
The Appropriations Limit is the calculation combining per-capita personal income change and population growth. It restricts the ability to receive and appropriate proceeds of taxes. Exhibit “A” shows the calculation. The 2022-23 Appropriations Limit is $69,708,272. This is a 9.95% increase over last year $63,400,917. This increase is attributed to the combined factors of the
7.55% per capita income growth and the 1.22% increase in the population of the City of Patterson.
The Appropriations Subject to Limitation are generally those appropriations to expend proceeds of taxes (not including numerous exclusions). The amount for 2022-23 is $21,552,905 (Exhibit “B”). The Appropriations Subject to Limitations may not exceed the Appropriations Limit. This presents no problem for the City of Patterson.