HomeMy Public PortalAbout2020-06-09 Item 5CITY COUNCILAGENDA REPORTIT.0^ۥCf.5^y-f^IfCITY OF MILLBRAE621 Magnolia AvenueMillbrae, CA 94030SUBJECT: Resolution of the Millbrae City CouncilEstablishing the Appropriations Limit forFiscal Year 2020-2021ATTACHMENTS:ResolutionAttachment A - Notice of Determination ofAppropriations Limit for the Fiscal Year 2020-2021Report No.Agenda Item No.:^wFor Agenda of: June 9, 2020Department: FinanceOriginator: Emily A. Boyd, InterimFinance Director SS.^7Approved/ y^IWBudget ActionYes:No: XTFinance Review: S^REPORT TYPE: ACTIONxmFORMATIONALITEM TYPE: CONSENT X PUBLIC HEARINGEXISTING BUSINESS NEW BUSINESSRECOMMENDATION:Staff recommends that the City Council adopt a resolution establishing the Fiscal Year 2020-2021appropriations limit at $36,958,617.BACKGROUND:The "Gann Tax Spending" initiative became effective November 6, 1979 adding Article XIII (B) tothe California State Constitution. The purpose of the law was to limit the growth of expendituresfinanced with tax dollars. The California Government Code, Section 7910, requires the governingbody of each local jurisdiction to establish by resolution their appropriations limit for each fiscalyear. The base year calculation of the appropriations limit is based on fiscal year 1 986-87. Theappropriations limit applies only to tax revenues and not to revenues received for services. Thislimit is adjusted annually for the change in population and the change in cost of living using factorsprovided by the State of California Department of Finance. The change in the California per capitapersonal income for the prior year was 3.73%, and the applicable change in population fromJanuary 1, 2019 to January 1, 2020 for the City ofMillbrae was -0.66%.A Notice of Determination of Appropriations Limit for the Fiscal Year 2020-21 has been preparedand is attached. The Notice was publicly posted at Millbrae City Hall and on the City's websiteprior to the public hearing to be held on June 9, 2020 in accordance with noticing requirements inconnection with the Gann Appropriations limit.FISCAL IMPACT:There is no budgetary impact of adoption of the attached resolution. The calculated appropriationslimit for Fiscal Year 2020-2021 amounts to $36,958,617 and estimated proceeds of taxes subject tolimit amount are $21,199,185 for the Fiscal Year 2020-2021. Accordingly, proceeds of taxessubject to limitation are below the appropriations limit in the amount of $15,759,432.15560385.1
COUNCIL ACTION:Adopt the resolution approving the Fiscal Year 2020-2021 appropriation limit of $36,958,617.15560385.1
Attachment 1CITY OF MILLBRAE, COUNTY OF SAN MATEOSTATE OF CALIFORNIA***RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MILLBRAEESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2020-2021.WHEREAS, the City of Millbrae established the appropriations limit applicableto the City during Fiscal Year 2019-20 as $35,864,742; andWHEREAS, Article XIIIB of the California Constitution and Sections 7902(b)and 7910 of the Government Code require that each local agency subject thereto establishby resolution the applicable appropriations limit on an annual basis by applying theprevious year's appropriations limit to factors issued by the California Department ofFinance reflecting changes in California's per capita personal income and population; andWHEREAS, the calculations showing the applications of those factors have beenforwarded to the City Council for review and have been made available for publicinspection prior to the date hereof; andWHEREAS, the applicable factors for Fiscal Year 2020-2021 are as follows: (1)the change in the California per capita personal income was 3.73%; and (2) the applicablechange in population from January 2019 to January 2020 was -0.66%.NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OFTHE CITY OF MILLBRAE that the Appropriation Limit for Fiscal Year 2020-2021 isestablished as $36,958,617.REGULARLY PASSED AND ADOPTED this 9th day of June 2020.IVIayorATTEST:City Clerk16366435.1
CIT'^%?^<t^msm•ft!!.^sm1='<f^s.SFB.CITY OF MILLBRAENOTICE OF DETERMINATION OF APPROPRIATIONS LIMITFOR THE FISCAL YEAR 2020-2021Section 7910 of the California Government Code requires each local government agency to determineduring each fiscal year the appropriations limit pursuant to Article XIIIB of the California Constitutionapplicable during the following fiscal year. The limit must be adopted at a regularly scheduled meetingor a noticed special meeting, and the documentation used in determining the limit must be madeavailable for public review fifteen days prior to such meeting.Set below is the methodology to be used to calculate the Fiscal Year 2020-2021 appropriations limit forthe City. The limit as set forth below will be considered and adopted at the regularly scheduledmeeting of the Millbrae City Council on June 9, 2020.1. Appropriations limit for the Fiscal Year 201 9-20202. Population change**(January 1, 2019 to January 1, 2020)3. Change in California per Capita Personal Income* *(January 1, 2019 to January 1, 2020)4. Fiscal Year 2020-2021 adjustment factor(0.9934x1.0373)5. Fiscal Year 2020-2021 appropriations limit(35,864,742x1.0305)$35,864,742-0.66%3.73%1.0305$36,958,617**Population and price factors per California Department of Finance information. May 2020PUBLISHED: May 28, 2020MILLBRAE CITY COUNCILBY: Angela Louis, City ClerkATTACHMENT 2