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File Number: 14-160 <br />choose to use the percentage rate of change in population within the city or county, whichever <br />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 2014-15 staff is using the County Population Growth factor of 1.50% multiplied <br />by the Non-Residential Assessed Valuation factor 0.93% since the county’s population factor <br />is higher than the City of San Leandro’s population factor (1.015 x 1.0093 = 1.0245). <br />Similarly, the City’s non-residential assessed valuation factor is higher than the State’s per <br />capita income growth factor. The non-residential assessed valuation factor includes a <br />significant property adjustment of $151.9 million for Kaiser Hospital since the hospital is <br />exempt from property taxes. <br />The calculated 2013-14 Appropriation Limit of $171,468,034 multiplied by the adjustment <br />factor of 1.0245 produces the 2014-15 Appropriation Limit of $175,666,900. 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 2014-15 appropriation subject to the Gann Limit is <br />$80,897,562 and is significantly below the Appropriation Limit by over $94 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 />2014-15 appropriation subject to limitation. <br />ATTACHMENT(S) <br />Attachment(s) to Related Resolution <br />·Attachment 1 - Gann Appropriation Limitation Calculation 2014-15 <br />PREPARED BY: David Baum, Finance Director, Finance Department <br />Page 2 City of San Leandro Printed on 5/27/2014