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File Number: 17-297 <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 2017-18 staff is using the County Population Growth factor of 0.99% multiplied <br />by the Non-residential assessed value factor 6.25% since the county’s population factor is <br />higher than the City of San Leandro’s population factor of 0.45%. Similarly, the City’s <br />non-residential new construction growth factor of 6.25% is higher than the State of California <br />per capita income factor of 3.69%. The non-residential assessed valuation factor for 2017-18 <br />includes “new construction” of $32 million for San Leandro Tech Campus (SLTC LLC) Phase <br />I, 132,000 square foot office building and parking facility <br />The calculated 2016-17 Appropriation Limit of $203,693,435 multiplied by the adjustment <br />factor of 1.0730 produces the 2017-18 Appropriation Limit of $218,570,233. 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 2017-18 appropriation subject to the Gann Limit is <br />$104,360,051 and is significantly below the Appropriation Limit by over $114 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 />2017-18 appropriation subject to limitation. <br />Attachments <br />·Attachment 1 - Gann Appropriation Limitation Calculation 2017-18 <br />CONCLUSION <br />Staff recommends City Council approval of a resolution establishing the City’s appropriation <br />limit of $218,570,233 for fiscal year 2017-18. <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 5/30/2017 <br />124