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2024-066 Appropriations Limit FY2024-25 RESOLUTION NO. 2024-66 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS, CALIFORNIA, DETERMINING AND ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-25 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 2024-25 at $152,864,456 as contained in Exhibit A to this resolution. NOW, THEREFORE, BE IT FURTHER RESOLVED that this action is exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15378(b)(5) of the CEQA Guidelines, as an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environment. PASSED, APPROVED AND ADOPTED this 12th day of June 2024 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: CCB73427-08E0-451B-B0B6-D7692D381C4F 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 12th day of June 2024 by the following vote: AYES: Blackwell, Ehlers, Kranz, Lyndes NOES: None ABSENT: Hinze ABSTAIN: None Kathy Hollywood, City Clerk DocuSign Envelope ID: CCB73427-08E0-451B-B0B6-D7692D381C4F Exhibit A Resolution 2024-66 City of Encinitas Schedule of Annual Appropriations Limit For Fiscal Year 2024-25 Prior Year Appropriations Limit FY 2023-24 Resolution 2023-48, adopted June 21, 2023 $ 147,420,890 A. Per Capita Cost of Living adjustment CPI 1.0362 B. Population adjustment County 1.0007 Change Factor (A x B) 1.0369 Prior Year x Change Factor = Increase over prior year 5,443,566 Appropriations Limit for FY 2024-25 $ 152,864,456 Appropriations Subject to Limitation Proceeds of Taxes $ 95,285,700 $ 81,354,080 Exclusions (13,931,620) Under (Over) Limit Percent Under Limit 46.8% $ 71,510,376 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: CCB73427-08E0-451B-B0B6-D7692D381C4F