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File Number: 18-223 <br />rate of change in population within the City or county, whichever is higher. <br />ANALYSIS <br />The Appropriation Limit for prior fiscal years was predominantly based on the county population <br />factor multiplied by the assessed valuation change factor. After the passage of Proposition 111, <br />cities are able to use the higher of the population factors (City or county) and the higher of the <br />California per capita personal income factor or the Non-residential Property Assessed Valuation <br />growth factor. This amended approach has been applied to fiscal years 1990-91 through <br />2010-11 to recalculate the ending limits. The revised calculations will continue to be applied in <br />subsequent years. <br />For fiscal year 2018-19 staff is using the County Population Growth factor of 0.84% multiplied by <br />the California per Capita Income factor 3.67% since the county’s population factor is higher than <br />the City of San Leandro’s population factor of 0.45%. Similarly, the State of California per capita <br />income factor of 3.67% is higher than the City’s non-residential new construction growth factor of <br />2.46%. <br />The calculated 2017-18 Appropriation Limit of $218,570,233 multiplied by the adjustment factor <br />of 1.0454 produces the 2018-19 Appropriation Limit of $228,495,132. A Resolution is attached <br />which authorizes the new Appropriation Limit for next fiscal year and includes the Attachment 1 <br />Calculation. The actual budget subject to the limitation excludes self-supporting funds, capital <br />improvement funds, capital outlay grant funds and specific exclusions such as the Gas Tax Fund. <br />The fiscal year 2018-19 appropriation subject to the Gann Limit is $105,653,459 and is <br />significantly below the Appropriation Limit by over $122 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 />2018-19 appropriation subject to limitation. <br />CONCLUSION <br />Staff recommends City Council approval of a resolution establishing the City’s appropriation limit <br />of $228,495,132 for fiscal year 2018-19. <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 5/30/2018 <br />96