Title
Staff Report for a City of San Leandro City Council Resolution Establishing the City's Appropriations Limit for Fiscal Year 2020-2021
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends that the City of San Leandro City Council approve a resolution establishing the City's appropriations limit for Fiscal Year (FY) 2020-2021. Staff completed the calculations required for determining the City's appropriation limit for FY 2020-2021, which is $264,857,995. Budget appropriations that are subject to the FY 2020-2021 limitation total $103,547,446, which is $161,310,548 below the limit.
BACKGROUND
On November 6, 1979, California voters passed Proposition 4. 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 Initiative." The Initiative established constitutional spending limits allowable for California governmental agencies based on the Consumer Price Index and population growth. Concurrent with Proposition 4, Cal. Revenue and Taxation Code Section 7910 requires each local governmental unit to establish its appropriations limit by the beginning of each fiscal year.
Due to the Gann Initiative's constraint on State and 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 Initiative, by allowing public agencies flexibility to operate in a growing economy, while retaining its purpose in placing a limit on government spending.
Prior law required spending limits to be tied to the Consumer Price Index or California Per Capita Personal Income growth factor, whichever was lower. The new provisions allow an agency to select the California Per Capita Personal Income growth factor or the Non-residential Property Assessed Valuation growth facto...
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