To: Honorable Mayor and Members of City Council
From: Heather Ippoliti, Interim Finance Director
Prepared By: Priscilla Wong-O’Rourke, Senior Budget Analyst
TITLE:
Title
Correcting the Gann Appropriation Limits for Fiscal Year 2024/25
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the correction to the Gann appropriations limit for Fiscal Year 2024/25.
Body
DISCUSSION:
The City Council approves all City appropriations (authorizations to incur financial obligations) as a part of the process of approving and updating the budget. California Constitution Article XIIIB requires cities to establish an annual limit of maximum allowable appropriations (the “Gann Limit”) based on a formula that begins with the appropriation limit of the previous year, and considers adjustments to either City or County population and California per capita income. The details of the formula are summarized in this report and calculated as a part of the attached resolution.
Both the California per capita personal income price factor and the population percentage change factors are provided by the State Department of Finance to local jurisdictions each year. These numbers provide the basis for the factors to be used in the City’s calculation of the Gann Limit.
The table in Attachment 2 presents the corrected ratios used and illustrates that the City’s 2024/25 Adjusted Appropriations limit of $613,036,431.
FINANCIAL IMPACTS:
Approval of the appropriation limits correction will have no financial impact on the Fiscal Year 2024/25 operations of the City.
CEQA:
The Finance Director has determined that the recommended action described in this report is not subject to CEQA, pursuant to CEQA guidelines section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution with EX A - Corrected Appropriations Limit Formula
ATCH 2 - Fiscal Year 2024/25 Corrected Tax Appropriations Limit
NOTIFICATION:
None