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HomeMy WebLinkAbout _ 4.10(a)--Appropriation Limit for Fiscal Year 2024-25C IT Y OF REMDINO�" AN CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: June 4, 2024 FROM: Greg Robinett, Director of ITEM NO. 4.10(a) Finance/City Treasurer ***APPROVED BY*** .rAmm���hc�srr 5211202: t, iouc/3 etre , S " er 5128 2i�}2 grobineW&Ryofredding.org btippin@cityofredding.org SUBJECT: 4.10(a) --Adopt Resolution establishing the Appropriation Limit for Fiscal Year 2024-25 Recommendation Adopt Resolution establishing the appropriation limit for Fiscal Year 2024-25 for the City of Redding at $298,219,153. Fiscal Impact There is no fiscal impact from adopting an appropriation limit. Background/Analysis The Gann Spending Limitation Initiative (Proposition 4) was approved by the voters of California on the November 1979 special ballot election. This Proposition created Article XIII B of the State Constitution, which sets forth the calculation of State and local jurisdictions' annual appropriations limit on monies that can be spent from tax revenues. California Government Code Section 7910 requires that each fiscal year, the governing body of the local agency must establish the appropriations limit, by resolution, before the beginning of the following fiscal year. The goal of Proposition 4 was to keep state and local government spending capped at 1978-79 levels, adjusted for changes in population combined with either the change in California per capita personal income or the change in the local assessment roll associated with new non-residential construction. Under Proposition 4, if a city ends the fiscal year having exceeded its GANN limit, it must return the excess to taxpayers within two years. Report to Redding City Council Re: 4.10(a) --Appropriation Limit for Fiscal Year 2024-25 May 29, 2024 Page 2 Staff has completed a calculation of the Fiscal Year 2024-25 appropriations limit for the City of Redding (City) as follows: Appropriation Limit 2023-24 $ 286,91.1,340 Percentage increases: Per Capita Change 3.62% Population Change .31% Change Factor Formula Percentage converted to ratio of change 1.0394 Appropriation Limit 2024-25 298,219 153 As noted above, the appropriation limit for the City for Fiscal Year 2024-25 is $298,219,153. The City's appropriations that are subject to the limit total $80,402,520. Thus, the City is well within the amount allowed by law. Environmental Review This is not a project defined by under the California Environmental Quality Act, and no further action is required. Council Priority/City Manager Goals This agenda item is a routine operational item. Attachments "Resolution RESOLUTION NO. 2024- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2024- 25 FOR THE CITY OF REDDING WHEREAS, State of California Government Code Section 7910 requires that each fiscal year the governing body of a local jurisdiction shall by resolution establish an appropriation limit; and WHEREAS, the Director of Finance for the City of Redding has calculated the appropriation limit. NOW, THEREFORE, be it resolved that the appropriation limit for the City of Redding for fiscal year 2024-25 shall be $298,219,153. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 4th day of June, 2024, and was duly adopted at said meeting by the following vote: AYE: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAIN: COUNCIL MEMBERS: ATTEST: TENESSA AUDETTE, Mayor FORM APPROVAL: SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney