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File Number: 13-276 <br />choose to use the percentage rate of change in population within the City or county, <br />whichever is higher. <br />ANALYSIS <br />The Appropriation Limit for prior fiscal years was predominantly based on the county <br />population factor multiplied by the assessed valuation change factor. After the passage of <br />Proposition 111, cities are able to use the higher of the population factors (City or county) and <br />the higher of the California per capita personal income factor or the Non-residential property <br />assessed valuation growth factor. This amended approach has been applied to fiscal years <br />1990-91 through 2010-11 to recalculate the ending limits. The revised calculations will <br />continue to be applied in subsequent years. <br />For fiscal year 2013-14 staff is using the California per capita income growth factor (1.0512) <br />multiplied by the county population factor (1.0121) since the county’s population factor is <br />higher than the City of San Leandro’s population factor (1.0512 x 1.0121 = 1.0639). Similarly, <br />the State’s per capita income growth factor is higher than the City’s non -residential assessed <br />valuation factor. The non-residential assessed valuation factor includes a significant property <br />adjustment of $263.5 million for Kaiser Hospital since the hospital is exempt from property <br />taxes. <br />The calculated 2012-13 Appropriation Limit of $161,166,358 multiplied by the adjustment <br />factor of 1.0639 produces the 2013-14 Appropriation Limit of $171,468,034. A Resolution is <br />attached which authorizes the new Appropriation Limit for next fiscal year and includes <br />Attachment 1 Calculation. The actual budget subject to the limitation excludes self-supporting <br />funds, capital improvement funds, capital outlay grant funds and specific exclusions such as <br />the Gas Tax Fund. The fiscal year 2013-14 appropriation subject to the Gann Limit is <br />$70,778,848 and is significantly below the Appropriation Limit by over $100 million. <br />Current City Council Policy <br />The Council adopts the appropriation limit during the budget adoption process. <br />Fiscal Impact <br />None. Impacts the City only if the appropriation limit is exceeded by proposed fiscal year <br />2013-14 appropriation subject to limitation. <br />Attachments <br />·Attachment 1 - Gann Appropriation Limitation Calculation 2013-14 <br />CONCLUSION <br />Staff recommends City Council approval of a resolution establishing the City’s appropriation <br />limit of $171,468,034 for fiscal year 2013-14. <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 5/29/2013