CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL
Staff Report
SR 2017-103
July 11, 2017
Consent Agenda

TO:
RECOMMENDATIONHonorable Mayor and City Council Members

SUBMITTED BY: Sharon Friedrichsen, Director of Budget and Contracts

APPROVED BY: Chip Rerig, City Administrator

SUBJECT: Consideration of a resolution establishing the Fiscal Year 2017-2018 Appropriations

Limit
Adopt a resolution establishing the Fiscal Year 2017-2-018 Appropriations Limit.

BACKGROUND / SUMMARY
Article XIIIB of the State Constitution places a limit on the amount of monies that a governmental entity is able
to spend from tax revenues each year. As part of the State law, the government entity must adopt an annual
appropriations limit based upon a prescribed formula. This limit shall not exceed the appropriation limit of the
prior fiscal year, although the limit is adjusted by the change in the cost of living and the change in population.
In calculating the appropriations limit, the City Council has the option to use either the change in per capita
income or the percentage change in local assessment roll. In addition, the Council may either use the change
in population within the City or within the County. For consistency purposes, staff recommends using the
California per capita personal income (3.69% as calculated by the Department of Finance) and the population
growth of the County (1.00%).

FISCAL IMPACT
The appropriation limit for fiscal year 2017-2018 is $31,098,990. Based on the budgeted tax revenue of
$18,540,000, the City is not at any risk of exceeding its limit.

PRIOR CITY COUNCIL ACTION

Council adopted the appropriations limit for fiscal year 2016-2017 on June 6, 2016.

ATTACHMENTS
1. Resolution establishing the fiscal year 2017-2018 appropriations limit.
 Attachment 1
CITY OF CARMEL-BY-THE-SEA
CITY COUNCIL

RESOLUTION NO. 2017-___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA ESTABLISHING THE

FISCAL YEAR 2017-2018 APPROOPRIATION LIMIT

WHEREAS, under Article XIIIB of the State Constitution, public agencies are required to annually
establish maximum appropriations limits referred to as the GANN limit (Limit); and

WHEREAS, since fiscal year 1991, the City is permitted to adjust its Limit in accordance with inflation
and population adjustment factors; and

WHEREAS, the City Council elects to use the change in California per capita personal income and the
percent change in the population for Monterey County as the adjustment factors to calculate the Limit; and

WHEREAS, a public hearing has been noticed; the documentation used in determining the Limit has
been made available to the general public for fifteen (15) days prior to the date of the adoption; and Council
conducted a public hearing on the Limit on July 11, 2017 and;

WHEREAS, the City may not appropriate any proceeds of taxes in excess of its Limit.

NOW THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF CARMEL-BY-
THE-SEA DOES HEREBY:

1. Adopts the final calculation of the Appropriation Limit for Fiscal Year 2017-2018 as $31,098,990,
which is attached hereto as Exhibit A.
2. Certifies the Fiscal Year 2017-2018 Adopted Appropriation Limit of $18,540,044 does not exceed the
GANN limit.

PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF CARMEL-BY-THE-SEA this
11th day of July 2017, by the following roll call vote:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

SIGNED: ATTEST:

_______________________ ___________________________
Steve G. Dallas, Mayor Ashlee Wright, City Clerk
 Exhibit A

Gann Appropriations Limit

For the fiscal year ending June 30, 2018

Amount Source
A. Appropriations limit for the year ended June 30, 2017 $ 29,694,443 Prior year schedule
B. Calculation Factors:
1. Population Increase % 1.0100 CA Department of Finance
2. Inflation Increase % 1.0369 CA Department of Finance
3. Total adjustment factor 1.0473 B1 * B2
C. Annual Adjustment Increase $ 1,404,547 (B3-1) * A
D. Other Adjustments $ 0
E. Total Adjustments $ 1,404,547 (C + D)
F. Appropriations limit for the year ended June 30, 2018 $ 31,098,990 (A + E)