HomeMy WebLinkAboutItem No. 04 - FY 2023-24 Gann Limit
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REPORT TO CITY COUNCIL
To:Honorable Mayor and Members of the City Council
From:Jason Simpson, City Manager
Prepared by:Shannon Buckley, Assistant City Manager
Date:July 11, 2023
Subject:Adoption of the Fiscal Year 2023-24 Gann Limit
Recommendation
Adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY 2023-24 AND
SELECTING THE POPULATION AND INFLATION FACTOR ACCORDINGLY.
Background
On June 13, 2023 Council adopted a resolution establishing the appropriations Gann Limit for FY
2023-24. The schedule attached to the resolution was incorrect.
Discussion
Under Government Section 7910, the City Council is required, on an annual basis, to adopt by
resolution the "Gann" Appropriations Limit. The Appropriations Limit restricts the revenue that can
be appropriated in any fiscal year. The Limit is adjusted each year based on the change in the
population and either the change in non-residential assessed valuation or the change in California
per capita income. The Limit for the FY2023-24 is based on California's per capita income.
Using population and per capita personal income data provided by the State Department of
Finance, the City's Appropriations Limit for FY2023-24 has been computed to be $128,984,827.
Appropriations subject to the Limit in the proposed FY2023-24 budget total $46,864,189, which
is $82,120,638 less than the computed Limit. Additional appropriations to the budget are funded
by non-tax sources such as service charges, restricted revenues from other agencies, grants, or
beginning fund balances would be unaffected by the Appropriations Limit. However, any
supplemental appropriations funded through increased tax sources could not exceed the
$82,120,638 variance indicated above. Further, any overall actual receipts from tax sources
greater than $82,120,638 from the budget estimates will result in proceeds from taxes above the
City's Appropriations Limit, requiring refunds of the excess within the next two fiscal years or voter
approval to increase the City's Appropriations Limit.
FY 2023-24 Gann Limit
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Fiscal Impact
The Proposed FY2023-24 Gann Limit will set the maximum revenue appropriation at
$128,984,827.
Attachments
Attachment 1 - Resolution Gann Limit FY 23-24
Exhibit A - Appropriations Limit Calculation
RESOLUTION NO. 2023-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE,
CALIFORNIA, ESTABLISHING THE APPROPRIATIONS GANN LIMIT FOR FY
2023-24 AND SELECTING THE POPULATION AND INFLATION FACTOR
ACCORDINGLY
Whereas, Voters approved Proposition 4, the “Gann Limit” Initiative, on November 6, 1979, in a
statewide special election ballot as an initiated constitutional amendment, which would limit the
growth in appropriations, made by the state and individual local governments. The limit in the rate
of growth is the percentage increase in the cost of living and the percentage increase in the state
or local government's population. Require state and local governments to return any funds to
taxpayers in excess of the amount appropriated for a given fiscal year. Require the state to
reimburse local governments for the cost of complying with state mandates.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. The Appropriations Limit will be calculated based on the changes in City population
and California per capita personal income.
Section 2. The Appropriations Limit for the City of Lake Elsinore for FY 2023-24, attached hereto,
(Exhibit A) is hereby adopted.
Section 3. The City Clerk shall certify to the adoption of this Resolution and shall cause a certified
Resolution to be filed in the office of the City Clerk.
Passed and Adopted on the 11th day of July 2023.
________________________________
Natasha Johnson, Mayor
Attest:
_______________________
Candice Alvarez, City Clerk
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF LAKE ELSINORE )
I, CANDICE ALVAREZ, City Clerk of the City of Lake Elsinore, California, do hereby certify that
Resolution No. 2023-___ was adopted by the City Council of the City of Lake Elsinore, California,
at the regular meeting of July 11, 2023, and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Candice Alvarez, City Clerk
2022 - 2023 Appropriations Limit:123,526,080$
Price/Population Factor for FY 2020-2021: X =1.0441911
2023-2024 Appropriations Limit:128,984,827$
Amount subject to the limit 46,864,189$
Is the amount subject to the limit below the limit?Yes
B
Change in Per
Capita Personal
Income:B
City
Population
Factor:
4.44 -0.02
2022 - 2023 factors
converted to a ratio:1.0444 0.9998
Appropriations Limit
6/30/2023
CITY OF LAKE ELSINORE