TITLE:
title
ADOPTION OF FISCAL YEAR 2022-23 APPROPRIATIONS LIMIT
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DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CAROL MOLINA, FINANCE DIRECTOR
FOR FURTHER INFORMATION CONTACT: CAROL MOLINA, FINANCE DIRECTOR, (714) 754-5243
RECOMMENDATION:
recommendation
Staff recommends that City Council adopt Resolution 22-XX establishing the Fiscal Year 2022-2023 Appropriations Limit for the City of Costa Mesa at $286,881,520, by using Orange County's growth for population adjustment, and the California per capita income growth for inflationary adjustment.
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BACKGROUND:
Article XIII B of the Constitution of the State of California requires that the City establish annually an Appropriations Limit. This appropriations limit determines the maximum amount of specific tax revenues which an agency is allowed to spend. Pursuant to Article XIII B and its implementing legislation, the total annual appropriations limit must be calculated by adjusting the prior year's appropriations limit for changes in the cost of living and population growth.
The City may choose one of the following factors to use for inflationary adjustment:
(a) the growth in California per capita income from the preceding year, or
(b) the growth in the non-residential assessed property valuation due to new construction within the City.
For population growth, the City may choose to use either:
(a) the population growth of the City, or
(b) the population growth within the County. These two adjustment factors (one for inflation and one for population) are both annual elections for the City in determining its Appropriations Limit for the following Fiscal Year.
For the 2022-2023 calculation, the City is electing to use the population growth of Orange County (-0.23 percent) rather than the population growth of the City of Costa Mesa (-0.7 percent) since it yields a higher population growth factor, and the growth in California per capita income as its inflation factor as provided by the State Departm...
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