Administrative
Report
H.16., File # 24-0617 Meeting Date: 6/18/2024
To: MAYOR AND CITY COUNCIL
From: WENDY COLLAZO, FINANCE DIRECTOR
TITLE
ADOPT BY TITLE ONLY RESOLUTION NO. CC-2406-047, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-2025
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 Fiscal Year 2024-2025 has been computed at $172,783,051.
BACKGROUND
Article XIIIB of the California Constitution (Gann Limit) requires that the City compute an annual appropriations limit that 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 approval of voters. The City last exceeded the limit in 1983 and voter approval to expend was received. The estimated annual tax receipts for Fiscal Year 2024-2025 are estimated to be $80.1 million and fall well below the $172.8M limit.
The annual adjustment for the limit is also provided by Article XIIIB and is set 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 purposes of calculating the City’s appropriations limit for Fiscal Year 2024-2025, staff has used the County’s population factor as it exceeds the City’s population growth factor for the past year. Using these two factors, the coming year’s limit is $172,783,051.
Exhibit A, attached, provides the calculation information for Fiscal Year 2024-2025.
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 Budget and are part of the Department’s annual administrative work program. Failure to adopt an appropriations limit will result in the State withholding gas taxes. Estimated gas tax revenues for Fiscal Year 2024-2025 are approximately $3.7M.
H.16., File # 24-0617 Meeting Date: 6/18/2024
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
· Reso - No. CC-2406-047 Adopting the Annual Appropriations Limit for Fiscal Year 2024-2025 · Exhibit A: FY 2024-2025 Appropriations Limit Calculation