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23-1342RESOLUTION NO.23-1342 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MENIFEE, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2023/2024 IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE I OF THE CALIFORNIA GOVERNMENT CODE. WHEREAS, Article XIII B of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held on November 6, 1979, provides that the total annual appropriations limit of such entity for the prior year adjusted for changes in the cost of living and population except as otherwise specifically provided for in said Articles; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title I of the Government Code of the State of California to implement Article XIII B of the California Constitution; and WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly scheduled meeting or a noticed special meeting and that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Section 7902(a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction; and WHEREAS, the City Council of the City of Menifee wishes to establish the Appropriation's limit for Fiscal Year 2023/2024 for the City of Menifee, California; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Menifee, California, as follows: Section 1: That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the City of Menifee for Fiscal Year 2023/2024 was available to the public in the Finance Department of said City at least fifteen days prior to this date, as listed on Exhibit A. Section 2: That the appropriations limit for the City of Menifee was established in accordance with Section 7902(a) of the California Government Code and is $61,365,981. PASSED AND ADOPTED ON THIS 21s' DAY OF JUNE, 2023. I :Z��) Aa�� — Bill Zim er a Mayor Attest: to anie Roseen, LActi-nag�City Clerk Approved as to form: J ey . Melching, City to ey T. Exhibit "A" City of Menifee 2023/2024 Appropriations Computation The appropriations limitation imposed by the state, otherwise known as the Gann Limit, creates a restriction on the amount of revenue that can be appropriated (revenue that can be legally spent) in any fiscal year. The basis for calculating the limit began in fiscal year 1978/79 and is increased based on population growth and inflation. Menifee's Gann Limit Calculation began the first full year of operation (FY2009/10). The appropriation limit applies only to those revenues defined as proceeds of taxes. POPULATION GROWTH FACTORS: I. Population growth of Menifee, OR 2. Population growth within Riverside County, AND INFLATION GROWTH FACTORS: 3. Growth in California per capita income, OR 4. Growth in non-residential assessed valuation due to new construction in the city. The factors used to calculate the fiscal year 2023/24 Limit were: 1. Population growth of Menifee. AND 3. Growth in California per capita income. Using the prior year's Appropriation Limit, the formula used to calculate the Gann Limit is outlined below: Fiscal Year 2022/23 Expenditure Limit: $56,937,856 (Set at June 1, 2022 City Council Meeting) 1. % Population growth within Menifee = 3.20% (Based on 2022 Population of 106,627 per State of California Department of Finance Fiscal Year 2022-23 Annual Percent Change in Population Minus Exclusions* and 2023 Population of 110,034 per State of California Department of Finance Fiscal Year 2023-24 Annual Percent Change in Population Minus Exclusions*, See Attachment 1) 3. Growth in California per capita income = 1.0444 Net Increase Factor (See Attachment 1) Combined Adjustment Factor of 1.078 = (1.0444 x 1.0320) Fiscal Year 2023/24 Appropriation Limit = Combined Adjustment Factor, 1.078 * 2022/23 Limit, $56,937,856 = $61,365,981 Page 1 Gann Limit History (City of Menifee) Fiscal Year FY 09/10 Appropriation $26,049,674 FY 10/11 $25,794,220 FY 11/12 $27,187,310 FY 12/13 $28,728,556 FY 13/14 $30,745,565 FY 14/15 $31,197,525 FY 15/16 $33,047,538 FY 16/17 $35,509,580 FY 17/18 $37,707,623 FY 18/19 $40,117,140 FY 19/20 $42,889,234 FY 20/21 $45,595,545 FY 21/22 $49,493,964 FY 22/23 $56,937,856 FY 23/24 $61,365,981 Page 2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF MENIFEE ) I, Stephanie Roseen, Acting City Clerk of the City of Menifee, do hereby certify that the foregoing City Council Resolution No. 23-1342 was duly adopted by the City Council of the City of Menifee at a meeting thereof held on the 215t Day of June 2023 by the following vote: Ayes: Deines, Estrada, Sobek, Zimmerman Noes: None Absent: Karwin Abstain: None 4S,eni�Ros�enE,Acting City Clerk