June 20, 2023
Finance Department
DATE: June 20, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Nickie Mastay, Deputy City Manager, Internal Services
Mubeen Qader, Deputy Director of Finance
Subject:
Fiscal Year 2022-2023 and 2023-2024 Annual
Appropriations Limit
FINANCIAL IMPACT: Adoption of the resolution establishes the appropriations limit for Fiscal Year 2023-2024 in the amount of
$502,279,172 and for Fiscal Year 2022-2023 in the
amount of $482,663,645.
PREVIOUS COUNCIL
ACTION:
June 21, 2022
STATEMENT OF THE
ISSUE:
The Fiscal Year 2023-2024 appropriations limit for the
City of Richmond is required to be established and
adopted pursuant to Article XIIIB of the Constitution of the State of California. In addition, the Fiscal Year 2022- 2023 appropriations limit approved by City Council on
June 21, 2022, needs to be adjusted.
RECOMMENDED ACTION:
ADOPT a resolution approving the Fiscal Year 2023-
2024 and adjusted Fiscal Year 2022-2023 appropriations
limits for the City of Richmond pursuant to Article XIIIB of the Constitution of the State of California – Finance
Department (Nickie Mastay/Mubeen Qader 510-412-
2077).
AGENDA
REPORT
June 20, 2023
DISCUSSION:
Article XIIIB of the California Constitution, passed by California voters in 1979, establishes an annual limitation on appropriations of tax proceeds for all municipalities.
Article XIIIB requires all local government entities to establish annual appropriations limits. The limitation is calculated by using appropriations of 1979 as the base year and adjusting for changes in growth of inflation and population.
California Government Code Section 7910 requires cities to establish appropriations limit by resolution. Adoption of the attached resolution will approve the Fiscal Year 2023-2024 and adjusted Fiscal Year 2022-2023 appropriations limits.
For Fiscal Year 2023-2024, the appropriations limit has been determined to be $502,279,172.
For Fiscal Year 2022-2023, the appropriations limit of $473,560,478 was passed and adopted by the City Council on June 21, 2022. The adopted Fiscal Year 2022-2023 appropriations limit was calculated by using the percentage change in per capita personal income published by State of California Department of Finance in the Bureau of Economic Analysis’ measure of personal income as opposed to that published by State of California Department of Finance in the Price and Population Factors Used for Appropriations Limit Calculations. The Fiscal Year 2022-2023 appropriations limit needs to be adjusted to $482,663,645 to reflect the percentage change in per capita personal income of 7.55 percent. This has no negative impact to the City as the City’s Fiscal Year 2022-2023 appropriation remains unchanged, and is below the adjusted Fiscal Year 2022-2023 appropriations limit of $482,663,645.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution – Appropriations Limit FY 2022-2023 and 2023-2024