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City of San Leandro Meeting Date: June 21, 2022 Staff Report Agenda Section:File Number:22-409 CONSENT CALENDAR Agenda Number:9.l. TO:City Council FROM:Fran Robustelli City Manager BY:Susan Hsieh Finance Director FINANCE REVIEW:Susan Hsieh Finance Director TITLE:Adopt a Resolution Approving the City’s Gann Appropriation Limit for 2022-2023 SUMMARY AND RECOMMENDATIONS Staff recommends the City of San Leandro City Council approve a resolution establishing the City’s Gann Appropriation Limit for 2022-2023 . Staff completed calculations required for determining the appropriation limit at $298,248,575. Budget appropriations subject to the 2022-2023 appropriation limitation total $116,776,758. This is $181,471,817 below the new appropriation limit. BACKGROUND In 1979, California voters passed Proposition 4 limiting governmental expenditures and taxation. Statutes clarifying provisions of the proposition are codified in Article XIIIB of the California Constitution. This article is known as the Gann Limit. Because the Gann Limit constrained local governments effectively responding to demands of rapid growth in California, a legislative-business-labor coalition drafted and supported Proposition 111, adopted in 1990. Proposition 111 allows flexibility in a growing economy, while retaining limits on government spending. While the law sets limits on spending and taxation, it does allow for increases on the appropriation limit based on both population and personal income growth. For 2022-2023, the state Department of Finance Per Capita Personal Income growth rate was lower than Alameda County’s Non-Residential Property Assessed Valuation rate (7.57%). The county’s population rate (-0.62%) was more advantageous to the City than the City’s population change rate. ANALYSIS Concurrent with Proposition 4, Cal. Government Code Section 7910 requires each local agency Page 1 City of San Leandro Printed on 6/15/2022