3B Public Hearing 2012 0604 - Laserfiche WebLink

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File Number: 12 -276 Non - residential Property Assessed Valuation growth factor, whichever is higher Cities may choose to use the percentage rate of change in population within the City or county, whichever is higher Analysis The Appropriation Limit for prior fiscal years was predominantly based on the county population factor multiplied by the assessed valuation change factor. After the passage of Proposition 111, cities are able to use the higher of the population factors (City or county) and the higher of the California per capita personal income factor or the Non - residential property assessed valuation growth factor. This amended approach has been applied to fiscal years 1990 -91 through 2010 -11 to recalculate the spending limits. The revised calculations will continue to be applied in subsequent years. For fiscal year 2012 -13 staff is using the California per capita income growth factor (1.0377) multiplied by the county population factor (1.0098) since the county's population factor is higher than the City of San Leandro's population factor (1.0377 x 1.0098= 1.0479). Similarly, the State's per capita income growth factor is higher than the City's non - residential assessed valuation factor. The non - residential assessed valuation factor includes a significant property adjustment of $318 million for Kaiser Hospital since the hospital is exempt from property taxes. The calculated 2011 -12 Appropriation Limit of $153,803,850 multiplied by the adjustment factor of 1.0479 produces the 2012 -13 Appropriation Limit of $161,166,358 (Attachment 1). A Resolution is attached which authorizes the new Appropriation Limit for next year. The actual budget subject to the limitation excludes self- supporting funds, capital improvement funds, capital outlay grant funds and specific exclusions such as the Gas Tax Fund. The fiscal year 2012 -13 appropriations subject to the Gann Limit is $66,449,150 and is significantly below the Appropriation Limit by almost $95 million. Current City Council Policy The Council adopts the appropriation limit during the budget adoption process. Fiscal Impact None. Impacts the City only if the appropriation limit is exceeded by proposed fiscal year 2012 -13 appropriation subject to limitation. Attachments Attachment 1 - Gann Appropriation Limitation Calculation 2012 -13 PREPARED BY: David Baum, Finance Director, Finance City of San Leandro Page 2 Printed on 512912012