Title
Staff Report for a City of San Leandro City Council Resolution Establishing the City's Appropriation Limit for Fiscal Year 2021-22
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the City of San Leandro City Council approve a resolution establishing the City's appropriation limit for Fiscal Year (FY) 2021-22. Staff has completed the calculations required for determining the City's appropriation limit for FY 2021-22, which is $279,001,412. Budget appropriations that are subject to the FY 2021-22 limitation total $106,128,525 which is $172,872,887 below the limit.
BACKGROUND
On November 6, 1979, California voters passed Proposition 4 to limit governmental spending and taxation. Statutes clarifying certain provisions of the proposition are now codified in article XIIIB of the California Constitution. This Article is commonly known as the "Gann Limit" after one of the measure's coauthors.
Due to the Gann Limit's constraint on local governments to respond effectively to the demands of rapid growth around California, a legislative-business-labor coalition drafted and supported Proposition 111, which was adopted June 5, 1990. Proposition 111 makes crucial adjustments to the Gann Limit, by allowing it the flexibility to operate in a growing economy, while retaining its purpose in placing a limit on government spending. While the law limits spending and taxation, it does allow for an increase to the Limit based on both population and personal income growth. The revised law allows agencies to select either the California Department of Finance's (CA DOF) Per Capita Personal Income growth factor or the non-residential property assessed valuation growth factor, whichever is higher. Both are published annually and distributed to local agencies for consideration. Additionally, cities may choose to use the percentage rate of change in population from their city or their county, whichever is higher.
For Fiscal Year 2021-22, the California Depa...
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