City Council Agenda
Memo to: Manteca City Council
From: Jared Hansen, Acting Finance Director
Prepared by: Laura Mayate-DeAndreis, Senior Budget Analyst
Date: September 7, 2021
Subject: FY 2021-22 Gann Limit Appropriations Limit
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Adopt a resolution determining the total annual appropriations subject to limitation (Gann Limit) for the City of Manteca for Fiscal Year 2021-22.
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Background:
November 1979 California voters approved Proposition 4, The Gann Initiative (Gann Limit). The Gann Initiative places limits on the amount of tax revenue spent by state and local government entities on an annual basis. This constitutional measure became effective in fiscal year 1980-81 and used fiscal year 1978-79 revenues as the base for its calculations.
Base year revenues increase annually by a factor that combines the governmental entity's population growth rate and the increase in the California per capita personal income. Cities may choose to use their population growth rate or their county population growth rate. For fiscal year 2021-22 the City has elected to use the city's growth rate.
Present Situation:
Exempted from the Gann Limit:
* Special Districts with property tax of less than $0.0125 in fiscal year 1978-79.
* Enterprise funds
* Benefit assessment districts (except those which levy voter approved special taxes).
For most cities, the general fund, special revenue funds and capital outlay funds are those affected by this calculation.
The following types of revenues received by the City of Manteca have been deemed to be from tax proceeds:
* Property Taxes
* Sales & Use Taxes
* Business Licenses (when for revenue generation)
* Motor Vehicle In-Lieu fees
* Transient Occupancy Tax
The following types of revenues received by the City of Manteca have been deemed not to be from tax proceeds:
* CDBG Funds
* Gasoline Taxes
* SB90 Mandate Reimbursements
* HUD Funds
* Business Licenses (when for regulatory purposes)
* Development Imp...
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