C.4 - Appropriations Limit for FY2023-24Appropriations Limit for
FY 2023-24
Appropriations Limit FY 2023-24
On November 6, 1979, California voters approved the Gann Spending
Limitation Initiative (Proposition 4) establishing Article XIIIB of the State
Constitution.
Article XIIIB sets limits on the amount of tax revenues that the State and most
local governments can appropriate within a given fiscal year.
Each year, the State and local governments must adopt a resolution
establishing an Appropriations Limit, also known as the “Gann Limit”. Fiscal
Year 1984-85 appropriations serve as the base for this limit, with adjustments
being made annually to reflect increases in population, the cost of living, and
financial responsibility transfers.
Only tax proceeds are subject to the limit. Charges for services, regulatory
fees, grants, loans, donations and other non-tax proceeds are not subject to the
limit.
All tax revenues received in excess of the Appropriations Limit must be
refunded to taxpayers within a two-year period.
Appropriations Limit FY 2023-24
The calculation is based on two factors:
•The change in the cost of living is defined to be either the change in California
per capita personal income or the change in assessed valuation due to the
addition of non-residential new construction.
•The change in population is defined as either a change in the City’s population
or a change in the County’s population,whichever is greater.
Change in California per capita personal income (provided by California
Department of Finance):4.44%
The following are the changes in population from 2022 to 2023 (provided by DOF):
City of Grand Terrace (-0.73%)
County of San Bernardino 0.12%
Since Option 2 (change in San Bernardino County population)is greater than the
City of Grand Terrace population change,it is recommended to be used as the
population factor for the FY 2023-24 Appropriations Limit calculation.
Appropriations Limit FY 2023-24
APPROPRIATIONS SUBJECT TO THE LIMIT
FY 2023-24 Total Revenue $ 12,175,655
Less Non-Proceeds of Tax 6,134,404
A) Total Appropriations Subject to the Limit $ 6,041,251
APPROPRIATIONS LIMIT
B) FY 2023-24 Appropriations Limit 17,438,676
C) Change Factor**% Increase Factor
Cost of Living Adjustment 4.44 1.0444
Population Adjustment 0.12 1.0012
Change Factor (1.0444 x 1.0012)1.0457
D) Increase (decrease) in Appropriations Limit $ 1,342,778
E) FY 2023-24 Appropriations Limit (B x C)$ 18,781,454
REMAINING APPROPRIATIONS CAPACITY (E-A)$ 12,740,204
Remaining Capacity as Percent of the FY 2023-24
Appropriations Limit 67.83%
Appropriations Limit FY 2023-24
Adopt a Resolution of the City Council of the City of Grand Terrace,
California, Establishing the Appropriations Limit For Fiscal Year 2023-24,
Including Adoption of the Price Factor and Population Factor Change Factor
for the Appropriations Limit Calculation
Questions