CITY OF POMONA
COUNCIL REPORT
April 15, 2024
To: Honorable Mayor and Members of the City Council
From: Anita Gutierrez, City Manager
Submitted By: Andrew Mowbray, Finance Director/City Treasurer SUBJECT: resolution establishing the corrected gann appropriations limit for fiscal year 2023-24 RECOMMENDATION:
It is recommended that the City Council take the following action:
Adopt the following resolution (Attachment No. 1):
RESOLUTION NO. 2024-62 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA, ESTABLISHING THE CORRECTED GANN APPROPRIATIONS LIMIT OF THE CITY OF POMONA PURSUANT TO ARTICLE XIII OF THE STATE CONSTITUTION FOR FISCAL YEAR 2023-24 EXECUTIVE SUMMARY:
The corrected version of the Fiscal Year 2023-24 GANN Appropriations Limit is being submitted for approval. The state budget excluded additional local subventions – unrestricted funds received by local agency from the state from the state limit calculation. As a result, local governments are to count these additional local subventions towards their revenue appropriation limits calculation.
FISCAL IMPACT:
There is no fiscal impact related to the approval of the corrected Fiscal Year 2023-24 GANN Appropriations Limit.
The prior GANN calculation reported appropriations subject to the limitation of $127.6 million, instead of the correct amount of $136M. With the corrected calculation, the city is still $169.8M under the cap.
PREVIOUS RELATED ACTION:
On January 3, 2023, the City Council adopted the FY 2023-24 City of Pomona Operating Budget, Housing Authority Budget, Five-Year Capital Improvement Program Budget, Establishing the FY 2023-24 GANN Appropriations Limit (Attachment No. 2).
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☐ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer; or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity; or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
DISCUSSION:
In November 1979, California voters approved Proposition 4 commonly known as the Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government from the proceeds of taxes. Pursuant to California Government Code, the City is required annually to adopt the adjustment factors and the appropriations limit by resolution. The appropriations limit for any fiscal year is equal to the previous fiscal years limit adjusted for population growth in Los Angeles County or the City of Pomona and the State per capita income as supplied by the State of California Department of Finance and reflected in Schedule A (Exhibit A of Attachment No.1). The Calculation of Proceeds of Taxes is shown in Schedule B (Exhibit B of Attachment No.1).
The state budget excluded additional local subventions – unrestricted funds received by local agency from the state from the state limit calculation. As a result, local governments are to count these additional local subventions towards their revenue appropriation limits calculation. The prior adopted GANN appropriations subject to limitation calculation was $127.6M and is below the limit of $314M. With the corrected calculation, the city’s limit is $136M and is still below the revenue cap that it can appropriate for FY 2023-24 ALTERNATIVE(S): None
Prepared by:
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Aleli Burgos
Deputy Finance Director
ATTACHMENT(S):
Attachment No. 1 – Resolution No. 2024-62
Exhibit A Appropriations Limit Calculation
Exhibit B – Calculation of Proceeds of Taxes
Attachment No. 2 – Resolution No 2023-99
Exhibit A – Appropriations Limit Calculation
Exhibit B – Calculation of Proceeds of Taxes
Fiscal Year 2022-23 General Fund Unassigned Fund Balance