4A Public Hearing 2007 0618 - Laserfiche WebLink

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CITY OF SAN LEANDRO MEMORANDUM DATE: June 11,2007 TO: John Jermanis, City Manager FROM: Jesse Baloca, Finance Direct~ BY: Carla Rodriguez, Deputy Finance Director ~ SUBJECT: RESOLUTION ESTABLISHING THE CITY'S APPROPRIATION LIMIT FOR FISCAL YEAR 2007-2008. SUMMARY AND RECOMMENDATION Staff recommends City Council approval of a resolution establishing the City's appropriations limit for the FY 2007-08. Staff has completed the calculations required for determining the City's appropriations limit for FY 2007-08, which is $134,769,937. The City's proposed budget appropriations that are subject to the FY 2007-08 limitation is $69,778,330. Therefore, the City's appropriation is $64,991,607 below the limit. Attachment 1 provides an executive summary of the appropriations limitation calculation. BACKGROUND In June 1990, California voters approved Proposition 111, limiting the amount of revenues that can be spent during a fiscal year by governmental entities in California. The Proposition provided a formula that allowed spending limit calculations to be responsive to local growth. It also required that cities perform an annual calculation of the appropriation limit to be adopted by resolution of the governing body subject to review by an independent auditor. Annual Adiustment Factors Each year, the City must choose two of four annual growth factors to calculate its appropriations limit. These are . The City of San Leandro annual population growth . The County of Alameda annual population growth . The annual change in California per capita personal income . The annual growth in the City's non-residential assessed valuation The City must choose one population based growth factor and one non-population based growth factor to calculate its appropriations limit. For the purposes of the fiscal year 2007-08 calculation, staff used the Alameda County population change factor of 1.07 % and the growth in non-residential assessed value factor of 1.71 %.