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File Number: 15-319 <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 2015-16 staff is using the County Population Growth factor of 1.30% multiplied <br />by the Non-Residential Assessed Valuation factor 7.49% since the county’s population factor <br />is higher than the City of San Leandro’s population factor (1.013 x 1.0749 = 1.0889). <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 “new construction” of $42 million for Chill Build LLC, and a property <br />adjustment exclusion of $714,000 for Kaiser Foundation Hospitals since the hospital is <br />exempt from property taxes. <br />The calculated 2014-15 Appropriation Limit of $175,666,900 multiplied by the adjustment <br />factor of 1.0889 produces the 2015-16 Appropriation Limit of $191,284,931. A Resolution is <br />attached which authorizes the new Appropriation Limit for next fiscal year and includes the <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 2015-16 appropriation subject to the Gann Limit is <br />$90,508,228 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 the proposed fiscal year <br />2015-16 appropriation subject to limitation. <br />ATTACHMENT <br />·Attachment 1 - Gann Appropriation Limitation Calculation 2015-16 <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 5/27/2015