HomeMy WebLinkAbout5.11 Adoption of an Appropriations Limit for Fiscal Year 2024-25r
DUBLIN
CALIFORNIA
STAFF REPORT
CITY COUNCIL
DATE: June 4, 2024
TO: Honorable Mayor and City Councilmembers
FROM: Linda Smith, City Manager
SU ELECT : Adoption of an Appropriations Limit for Fiscal Year 2024-25
Prepared by:: Jay Baksa, Finance Director
EXECUTIVE SUMMARY:
Agenda Item 5.1 I
The City Council will consider adoption of the annual Appropriations Limit in accordance with
State law. The City of Dublin's Limit for Fiscal Year 2024-25 is $485,074,181, which exceeds the
City's related appropriations by $383,496,716.
STAFF RECOMMENDATION:
Adopt the Resolution Adopting an Appropriations Limit for Fiscal Year 2024-25.
FINANCIAL IMPACT:
None.
DESCRIPTION:
Each year, the City Council is required by State law to adopt an Appropriations Limit, also known
as the Gann Limit or Proposition 4 Limit, in conjunction with the annual budget process. The Gann
Limit, established in 1979, is the maximum amount of money that California cities can spend on
tax -funded services in a given fiscal year. It is calculated by multiplying the adopted Limit for the
prior year by factors reflecting economic changes over the prior year.
The laws regulating the application of the Limit forbid an agency from appropriating specific funds
that would exceed the Limit. The restriction applies to appropriating monies categorized as
"Proceeds of Taxes." The Limit carries forward each year and is subject to an adjustment in
accordance with a specified formula that includes the following factors (the City has the discretion
to choose one factor from each category below):
1. Change in the City population or change in Alameda County population.
2. Change in State per capita personal income or change in the "Non-residential New
Construction."
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Fiscal Year 2024-25 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2024-25 in
accordance with State law and with the Uniform Guidelines of the League of California Cities. The
discretionary factors selected in calculating the 2024-25 Limit are: (1) Change in the City
population; and (2) Change in State per capita income.
The new Fiscal Year 2024-25 Appropriations Limit as calculated and attached to the Resolution is
$485,074,181, based upon an increased adjustment factor of 1.0359 applied to the Fiscal Year
2023-24 Limit. The Proposed Fiscal Year 2024-25 Budget includes appropriations subject to the
Limit totaling $101,577,465 that would be categorized as "Proceeds of Taxes". Therefore, the
appropriations subject to the Appropriations Limit are below the allowed amount by
$383,496,716.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A Public Notice was posted on May 20, 2024 stating that the factors used in calculating the
Appropriations Limit were available for public review. The notice was also displayed on the City
website and the information is contained in the Proposed Budget for Fiscal Year 2024-25. The City
Council Agenda was posted.
ATTACHMENTS:
1) Resolution Adopting an Appropriations Limit for Fiscal Year 2024-25
2) Exhibit A to the Resolution - Calculation of Fiscal Year 2024-25 Appropriations Limit
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Attachment I
RESOLUTION NO. XX — 24
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-25
WHEREAS, State law requires that an Appropriations Limit be adopted by the City Council
in conjunction with the Annual Budget process; and
WHEREAS, Article XIII B of the California Constitution places certain restrictions on
appropriations made by cities; and
WHEREAS, the restrictions are applicable to appropriations, which meet the definition of a
"Proceeds of Taxes"; and
WHEREAS, the law allows the option to select the factors to be used in the calculation of
the Appropriations Limit; and
WHEREAS, one of the adjustment factors the City must select between is: (A) the change
in City population, or (B) Countywide population. The City has selected the change in City
population; and
WHEREAS, for the second adjustment factor, the City must select between: (1) the change
in the State per capita income, or, (2) the change in the assessed valuation of local non-residential
New construction. The City has selected the change in the State per capita income.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby adopt the Fiscal Year 2024-25 City of Dublin Appropriations Limit as $485,074,181.
BE IT FURTHER RESOLVED that the limit has been calculated in accordance with State
Law and is shown in Exhibit A, attached hereto.
PASSED, APPROVED AND ADOPTED this 4th day of June 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Mayor
ATTEST:
City Clerk
Reso. No. XX-24, Item X.X, Adopted XX/XX/2024 Page 1 of 1 3
Attachment 2
EXHIBIT A
CALCULATION OF FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2023-24 Limit)
A. Selection of Optional Factors
1. Change in population — City vs. County.
Factors 1 /1 /2024 1 /1 /2023 % Increase
a. City of Dublin 71,575 71,600 -0.03%
b. County of Alameda 1,639,409 1,648,369 -0.54%
The City selected Factor la. City of Dublin population change -0.03%
2. Change in State per capita personal income vs. City non-residential building
construction.
Factors % Change
a. Change in State per capita personal income 3.62%
b. Change in non-residential assessed valuation 0.76%
The City selected Factor 2a. Change in State per capita personal income 3.62%.
B. Fiscal Year 2024-25 Growth Adiustment Factor
Calculation of factor for Fiscal Year 2024-25 = X*Y = 0.9997*1.0362 = 1.0359
X = Selected Factor #1 + 100 =-0.03+100 = 0.9997
100 100
Y = Selected Factor #2 + 100 = 3.62+100 = 1.0362
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2023-24 Appropriations Limit $468,263,521
Fiscal Year 2024-25 Adjustment Factor x 1.0359
Fiscal Year 2024-25 Appropriations Limit $485,074,181
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