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File Number: 19-341 <br />Assessed Valuation growth factor, whichever is higher. Cities may choose to use the percentage <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 2019-20 staff is using the County Population Growth factor of 0.75% (1.0075) <br />multiplied by the Non-Residential New Construction Assessed Value Income factor 7.78% <br />(1.0778) since the county’s population factor is higher than the City of San Leandro’s population <br />factor of 0.30%. Similarly, the City’s non-residential new construction growth factor of 7.78% is <br />higher than the State of California per capita income factor of 3.85%. <br />The calculated 2018-19 Appropriation Limit of $228,495,132 multiplied by the adjustment factor <br />of 1.0859 produces the 2019-20 Appropriation Limit of $248,119,855. <br />A Resolution is attached which authorizes the new Appropriation Limit for this upcoming fiscal <br />year and includes the Attachment 1 Calculation. The actual budget subject to the limitation <br />excludes self-supporting funds, capital improvement funds, capital outlay grant funds and specific <br />exclusions such as the Gas Tax Fund. <br />The City’s Fiscal Year 2019-20 appropriation subject to the Gann Limit is $110,338,856 and is <br />significantly below the Appropriation Limit of $248,119,855 by over $137 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 />2019-20 appropriation subject to limitation. <br />CONCLUSION <br />Staff recommends City Council approval of a resolution establishing the City’s appropriation limit <br />of $248,119,855 for fiscal year 2019-20. <br />PREPARED BY: David Baum, Finance Director, Finance <br />Page 2 City of San Leandro Printed on 6/12/2019 <br />40