HomeMy WebLinkAbout4.3 Adoption of an Appropriations Limit for Fiscal Year 2022-23STAFF REPORT
CITY COUNCIL
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Agenda Item 4.3
DATE:June 7, 2022
TO:Honorable Mayor and City Councilmembers
FROM:Linda Smith, City Manager
SUBJECT:Adoption of an Appropriations Limit for Fiscal Year 2022-23Preparedby:Lisa Hisatomi,Director of Administrative Services
EXECUTIVE SUMMARY: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 2022-23 is $450,080,278, which exceeds the City’s related appropriations by $363,692,486.
STAFF RECOMMENDATION:Adopt the Resolution Adopting an Appropriations Limit for Fiscal Year 2022-23.
FINANCIAL IMPACT:None.
DESCRIPTION:BackgroundEach 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 Limit 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 Almeda County population.2.Change in State per capita personal income or change in the “Non-residential New Construction.”
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Fiscal Year 2022-23 Proposed Appropriations LimitStaff has prepared the calculations necessary to adopt the Limit for Fiscal Year 2022-23 in accordance with State law and with the Uniform Guidelines of the League of California Cities. The discretionary factors selected in calculating the 2022-23 Limit are: (1) Change in the City population; and (2) Change in State per capita income.The new Fiscal Year 2022-23 Appropriations Limit as calculated and attached to the Resolution is $450,080,278, based upon an increased adjustment factor of 1.0722 applied to the Fiscal Year 2021-22 Limit. The Proposed Fiscal Year 2022-23 Budget includes appropriations subject to the Limit totaling $86,387,792 that would be categorized as “Proceeds of Taxes”. Therefore, the appropriations subject to the Appropriations Limit are below the allowed amount by $363,692,486.
STRATEGIC PLAN INITIATIVE:None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:A Public Notice was posted on May 23, 2022 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 2022-23 and 2023-24. The City Council Agenda was posted.
ATTACHMENTS:1) Resolution Adopting an Appropriations Limit for Fiscal Year 2022-232) Exhibit A to the Resolution – Calculation of Fiscal Year 2022-23 Appropriations Limit
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Attachment 1
Reso. No. XX-22, Item X.X, Adopted XX/XX/2022 Page 1 of 1
RESOLUTION NO. xx-22
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
ADOPTING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2022-23
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, for one of the adjustment factors the City must select between: (A) the change in
City population, or (B) Countywide population, and 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
construction, and the City has selected the change in the State per capita income; and
WHEREAS, the calculation of the Appropriations Limit for Fiscal Year 2022-23 is described in
Exhibit A, attached hereto and by reference made a part hereof.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does
hereby adopt the Fiscal Year 2022-23 City of Dublin Appropriations Limit as $450,080,278.
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 7th day of June 2022, by the following vote:
AYES:
NOES:
ABSENT:
ATTEST:
________________________________
Mayor
_____________________________
City Clerk
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Attachment 2
EXHIBIT A
CALCULATION OF FISCAL YEAR 2022-23 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2021-22 Limit)
A. Selection of Optional Factors
1. Change in population – City vs. County.
Factors 1/1/2022 1/1/2021 % Increase
a. City of Dublin 71,706 71,930 -0.31%
b. County of Alameda 1,649,285 1,659,616 -0.62%
The City selected Factor 1a. City of Dublin population change -0.31%
2. Change in State per capita personal income vs. City non-residential building construction.
Factors % Change
a. Change in State per capita personal income 7.55%
b. Change in non-residential assessed valuation 0.01%
The City selected Factor 2a. Change in State per capita personal income 7.55%.
B. Fiscal Year 2022-23 Growth Adjustment Factor
Calculation of factor for Fiscal Year 2022-23 = X*Y = 0.9969*1.0755 = 1.0722
X = Selected Factor #1 + 100 = -0.31+100 = 0.9969
100 100
Y = Selected Factor #2 + 100 = 7.55 +100 = 1.0755
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2021-22 Appropriations Limit $419,772,690
Fiscal Year 2022-23 Adjustment Factor x 1.0722
Fiscal Year 2022-23 Appropriations Limit $450,080,278
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