Agenda Item Wording:
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City Council approval of Resolution 2023-22 adopting the 2023-24 appropriations limit for the City of Visalia’s General Fund.
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Deadline for Action: 6/30/2023
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel, Finance & Technology Director 713-4375, Amee Swearingen Financial Analyst 713-4170
Department Recommendation:
It is recommended that the City Council adopt Resolution 2023-22 establishing the appropriations limit for the 2023-24 fiscal year in the amount of $210,206,169 for the General Fund.
Background Discussion:
Annually, Council is required by the State to approve the appropriation limit for the City of Visalia. The appropriation limitation imposed by Propositions 4 and 111 creates a restriction on the amount of tax revenue which can be appropriated in any fiscal year. The limit is based on actual appropriations during the 1978-79 fiscal year and is increased each year by a factor comprised of the change in population combined with the change in California per capita personal income.
The General Fund is the only fund subject to the appropriation limit mandated by the State of California. Any challenge to the appropriations limit must be brought within 45 days from the effective date of the resolution.
The State of California provides the population and California per capita personal income change data for local jurisdictions to calculate their appropriations limit. Based on the following data received from the Department of Finance, a population change of 0.68% and per capita income change of 4.44%, the appropriations limit for Visalia is $210,206,169. The total General Fund appropriation subject to limitation for the fiscal year 23-24 is $85,374,800 which is well under the appropriations limit as shown in Table 1, Gann Appropriations Limit.
Table 2, Calculation of Proceeds of Taxes, categorizes General Fund revenues. As shown in the table, the amount of taxes is equivalent to the budgeted expenditures subject to the 2023-24 limit.
Fiscal Impact:
None
Prior Council Action: N/A
Other: N/A
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
I recommend that the City Council adopt Resolution No. 2023-22 establishing the appropriations limit for the 2023-24 fiscal year in the amount of $210,206,169 for the General Fund.
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Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Attachment 1 - Resolution No. 2023-22 Attachment 2 - CA Department of Finance Letter on Price and Population