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File Number: 16-307 <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 retroactively applied to <br />fiscal years 1990-91 through 2010-11 to recalculate the ending limits. The revised <br />calculations will continue to be applied in subsequent years. <br />For fiscal year 2016-17 staff is using the County Population Growth factor of 1.06% multiplied <br />by the State of California per Capita Income factor 5.37% since Alameda County’s population <br />factor is higher than the City of San Leandro’s population factor of 0.56%. Similarly, the State <br />of California per Capita Income factor is higher than the City’s non-residential new <br />construction growth factor of 0.06%. The non-residential assessed valuation factor for <br />2015-16 included “new construction” of $42 million for Chill Build LLC (Preferred Freezer) <br />which has been completed and no longer reflected under new construction. <br />The calculated 2015-16 Appropriation Limit of $191,284,931 multiplied by the adjustment <br />factor of 1.0649 produces the 2016-17 Appropriation Limit of $203,693,435. A Resolution is <br />attached which authorizes the new Appropriation Limit for next fiscal year and includes the <br />calculation as Attachment 1. The actual budget subject to the limitation excludes <br />self-supporting funds, capital improvement funds, capital outlay grant funds and specific <br />exclusions such as the Gas Tax Fund. The fiscal year 2016-17 appropriation subject to the <br />Gann Limit is $95,593,423 and is significantly below the Appropriation Limit by over $108 <br />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 />2016-17 appropriation subject to limitation. <br />Attachments <br />·Attachment 1 - Gann Appropriation Limitation Calculation 2016-17 <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 6/14/2016