Each year our district needs to calculate and adopt the new tax spending limit in accordance with the provisions of the spending limitation legislation implementing Proposition 4 (the 1979 Gann Spending Limit Initiative). Government Code Section 7910 requires that: “. . . the governing body of each local jurisdiction to establish appropriation limits by resolution for the following fiscal year at a regular or special meeting.”
The district’s new limit for the 2020-2021 year is calculated based on the prior year’s limit increased by a growth factor. The growth factor results from combining the change in Per Capita Personal Income and the change in population for the district (as certified by the State’s Department of Finance) or the change reported for “unincorporated areas” for our County.
The change in the “cost of living” factor (Per Capita Personal Income) has been reported to be 3.73% and reported increase in population in the County’s unincorporated areas to be 1.83%. Therefore, the ratio of change to be applied to last year’s limit is:
1.0373 (X) 1.0183 = 1.0563 (FY20 factor)
Applying this factor to our FY19/20 limit, as follows:
$65,369.06 (x) 1.0563 = $69,049.34
(2019/20 limit) (2020/21 limit)
This exercise in mandated by the state and county.
Click HERE to see the formal NOTICE of the public meeting to consider adopting the FY20 limit
Click HERE to see the proposed resolution language