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2021-071 Adoption of the FY 2021-22 Gann LimitsRESOLUTION 2021-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ENCINITAS DETERMINING AND ADOPTING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2021-22 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 2021-22 at $129,123,149 as contained in Exhibit A to this resolution. PASSED, APPROVED AND ADOPTED this 23'd day of June 2021 by the City Council of the City of Encinitas, State of California. Catherine S. Blakespear, Mayor ATTEST: Kathy Hollywood, City Clerk APPROVED AS TO FORM: ll.0 Les ie E. Devaney, City rney 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 23'd day of June, 2021 by the following vote: AYES: Blakespear, Hinze, Kranz, Lyndes, Mosca NOES: None ABSENT: None ABSTAIN: None Kathy Hollywood, City Clerk RESOLUTION2021-71 EXHIBIT City of Encinitas Schedule of Annual Appropriations Limitation For Fiscal Year 2021-22 Fiscal Year 2020-2021 Appropriations Limit, adopted (Resolution No. 2020-55) A. Per Capita Cost of Living adjustment B. Population adjustment Change Factor (A x B) Increase in appropriations limit Fiscal Year 2021-2022 appropriations limit Projected Revenues from Proceeds of Taxes Remaining appropriations capacity Percentage under Appropriations Limitation 1.0573 1.0007 1.0388 $ 4,817,134 $ 124,306,015 $ 129,123,149 $ 80,279,558 $ 48,843,591 37,83% Article XI1113 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.