Resolution 2024-### Page 1
RESOLUTION 2024-###
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO
ESTABLISHING THE ANNUAL APPROPRIATIONS (GANN) LIMIT FOR FISCAL YEAR 2024-25
WHEREAS, Article XIIIB of the California Constitution enacted with the passage of Proposition 4 in 1979, with modifications under Proposition 111, passed by the voters of California in June 1990, and implemented by California Government Code Sections 7900 et seq., specifies appropriations of governmental ent ities may increase by an amount not to exceed the change in population and the change in either the California per capita income or the change in non- residential assessed valuation due to new construction within the City;
WHEREAS, the Appropriation Limit is based on actual appropriations during the 1978-79 Fiscal Year, as increased each year using specified population and inflationary growth factors. The original legislation implementing the provisions of Article XIIIB became effective January 1, 1981;
WHEREAS, Section 7910 of the California Government Code requires a governing body to annually adopt by resolution, an Appropriations (Gann) Limit for the upcoming fiscal year when the budget is adopted;
WHEREAS, documentation used in the determination of the FY 2024 /25 appropriations limit has been available to the public for 15 days before City Council’s determination in this matter, as required by Government Code Section 7910;
WHEREAS, according to the State of California Department of Finance, change in the cost of living or per capita personal income during 2024/25 was 3.62%, change in the City of San Pablo population decreased by 0. 24%, and change in the C ontra Costa County population increased by 0.12%. According to property tax records, the change in non-residential new construction in San Pablo was 10.59%. These specified factors are used to calculate the appropriations limit of $62,173,149 as reflected in Exhibit A for the FY 2024/25. The calculation of the appropriation limit applies only to expenditures funded by “proceeds of taxes” as defined by the California Constitution, which includes revenues such as property taxes, sales taxes, utility user taxes, state subventions (e.g. motor vehicle in-lieu), mandated costs reimbursements, etc. Certain types of revenues such as user fees or regulatory fees are also excluded from the Appropriation Limit, as are other specific expenditure types, including some debt service costs, qualified capital outlay, contractual payments including revenues received under section 7.1 of the Municipal Services Agreement with the Lytton Band of Pomo Indians, and certain types of leases;
WHEREAS, the City’s total FY 2024/25 proposed budgeted revenues subject to the appropriations limit are $18 ,130,734, which is well below the calculated limit of $62,173,149, such that the City will not be impacted by the Gann Limit in the next fiscal year nor in the foreseeable future as evidenced by a five-year trend analysis; and
Resolution 2024-### Page 2
WHEREAS, due to budget operational deadlines and preparation of the Two-Year Biennial G eneral Fund Operational & C apital Improvement Program Budget process during May 2024, the City Manager was not able to schedule a preview of the Proposed FY2024-25 Gann Appropriations Limit Report with the Budget, Fiscal & Legislative Standing Committee; and therefore, the subject report has been prepared for full review by the City Council for subsequent approval and adoption before June 30, 2024.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Pablo hereby elects to use the San Pablo percentage change in new non -residential construction factor of 10.59% and the County population change of 0.12% for calculating the appropriations and to establish said limit for Fiscal Year 2024 -25 in the amount of $62,173,149, while acknowledging the public challenge period of 60 days which ends on August 7, 2024; and
BE IT FURTHER RESOLVED that the foregoing recitations are true and correct and are included herein by reference as findings (Exhibit A for the annual calculations, and Exhibit B for the historical table).
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ADOPTED this 10
th day of June, 2024, by the following votes:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ATTEST: APPROVED:
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Dorothy Gantt, City Clerk Patricia Ponce, Mayor