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2023-048 Appropriations Limits for FY 2023-24RESOLUTION NO. 2023-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS DETERMINING AND ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023-24 IN ACCORDANCE WITH ARTICLE XIII-B OF THE CONSTITUTION OF THE STATE OF CALIFORNIA WHEREAS, each year the City Council of the City of Encinitas is required under Section 7910 of Chapter 1205 of the California State Statutes of 1980 to establish an appropriations limit by resolution; and WHEREAS, the City Council desires to make provision for a level of service commensurate with the needs of the City. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Encinitas does hereby adopt the appropriations limit for Fiscal Year 2023-24 at $147,420,890 as contained in Exhibit A to this resolution. PASSED, APPROVED AND ADOPTED this 21st day of June 2023 by the City Council of the City of Encinitas, State of California. Tony Kranz, Mayor ATTEST: Kathy Hollywood, City Clerk APPROVED AS TO FORM: Tarquin Preziosi, City Attorney DocuSign Envelope ID: 7D6ADB8B-27CC-46C7-8889-2316C21C51A5 CERTIFICATION: I, Kathy Hollywood, City Clerk of the City of Encinitas, California, do hereby certify under penalty of perjury that the foregoing Resolution was duly adopted at a regular meeting of the City Council on the 21st day of June 2023 by the following vote: AYES: Blackwell, Ehlers, Hinze, Kranz, Lyndes NOES: None ABSENT: None ABSTAIN: None Kathy Hollywood, City Clerk DocuSign Envelope ID: 7D6ADB8B-27CC-46C7-8889-2316C21C51A5 City of Encinitas Schedule of Annual Appropriations Limit For Fiscal Year 2023-24 Prior Year Appropriations Limit See Exhibit B for additional detail on Revised Limits FY 2021-22 Resolution 2021-71 Adopted 129,123,149 138,760,849 FY 2022-23 Resolution 2022-62 A.Per Capita Cost of Living adjustment B.Population adjustment Change Factor (A x B) Appropriations Limit for FY 2023-24 Increase over prior year Appropriations Subject to Limitation Proceeds of Taxes Exclusions Under (Over) Limit Percent Under Limit 1.0444 0.9987 1.0430 $ 6,083,484 $ 89,237,200 (13,113,491) 48.4% Exhibit A Resolution 2023-48 Updated 6/20/2023 Revised 131,520,750 141,337,406 $ 147,420,890 $ 76,123,709 $ 71,297,181 Article XIIIB of the California Constitution, more commonly known as the Annual Appropriations Limitation or "Gann Limit", specifies the amount of allowable revenue the City of Encinitas can appropriate from the proceeds of taxes. In accordance with Proposition 111 and SB 88 (Chapter 60-90) the Appropriations Limitation is calculated utilizing a format based on the percentage of growth in California Per Capita Income and County population. The City's Appropriations Subject to the Limit are well below the approved Appropriations Limit. As part of the City's annual audit, an independent accounting firm reviews the calculations for compliance. DocuSign Envelope ID: 7D6ADB8B-27CC-46C7-8889-2316C21C51A5 Exhibit B Resolution 2023-48 City of Encinitas Schedule of Annual Appropriations Limit For Fiscal Year 2023-24 Correcting a computational error. FY 2021-22 Change Factor should be 1.0580, resulting in a increase $2.4M in FY22 and $2.6M in FY23. Adopted Reso 2021-71 Correction Revised For Fiscal Year 2021-22 6/23/2021 + Needed =6/21/2023 Prior Year Appropriations Limit FY 2020-21 adopted with Resolution 2020-55 $ 124,306,015 A. Per Capita Cost of Living adjustment 1.0573 B. Population adjustment 1.0007 Change Factor (A x B)1.0580 1.0388 1.0580 Appropriations Limit for FY 2021-22 129,129,088$ 2,391,661$ 131,520,750$ Adopted Reso 2022-07 Correction Revised For Fiscal Year 2022-23 6/15/2022 + Needed =6/21/2023 Prior Year Appropriations Limit FY 2020-21 adopted with Resolution 2020-55 $ 129,123,149 131,520,750$ A. Per Capita Cost of Living adjustment 1.0755 B. Population adjustment 0.9992 Change Factor (A x B)1.0746 1.0746 Appropriations Limit for FY 2022-23 138,760,849$ 2,576,557$ 141,337,406$ DocuSign Envelope ID: 7D6ADB8B-27CC-46C7-8889-2316C21C51A5