Administrative
Report
H.15., File # 23-6474 Meeting Date: 8/1/2023
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2308-073, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-2024
EXECUTIVE SUMMARY
As required by the California Constitution, the City has computed an annual appropriations limit for the coming Fiscal Year. The City’s appropriations limit for FY 2023-24 is $166,297,812.
BACKGROUND
Article XIIIB of the California Constitution (Gann Limit) requires that the City compute an annual appropriations limit. This limit sets the maximum amount of appropriations that can be made from tax receipts. Taxes exceeding this limit must be returned to the residents or may be spent with the approval of a majority vote. The City exceeded the limit in 1983 and voter approval to expend was received. The estimated annual tax receipts for FY 2023-24 are approximately $76.5 million and are well below the computed limit of $166.3 million.
The annual adjustment for the limit is described in Article XIIIB and is based on the change in the California per capita personal income combined with the greater of the change in population in the jurisdiction or the jurisdiction’s county. For the purpose of calculating the City’s appropriations limit for FY 2023-24, staff used the County’s population factor. Accordingly, the City’s limit for the coming year is $166,297,812.
Exhibit A (attached) provides the calculation information for FY 2023-24.
COORDINATION
The City Attorney’s Office approved the Resolution as to form.
FISCAL IMPACT
The costs to calculate and prepare the appropriations limit document are included within the Department’s adopted 2023-2024 annual budget and are part of the Department’s annual work program. Failure to adopt an appropriations limit would result in the State withholding gas taxes.
Estimated gas tax revenues for FY 2023-24 are approximately $3.7 million.
H.15., File # 23-6474 Meeting Date: 8/1/2023
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. 2308-073 Approve Appropriations Limit
· Exhibit A - 2023-2024 Appropriations Limit Calculation