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Attachment 3 - Resolution Establishing the Gann Appropriation Limit for FY 2021-221 of 3 Resolution 2021 - June 15, 2021 RESOLUTION 2021- RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS ESTABLISHING THE FY 2021/22 APPROPRIATIONS LIMIT FOR THE TOWN OF LOS GATOS WHEREAS, Article XIIIB of the California Constitution (Limitation of Government Appropriations) was passed by the California electorate on November 6, 1979, and became effective on July 1, 1980; and WHEREAS, Chapter 1205, Statute of 1980, Section 7900 of the California Government Code formally implements methods for governmental entities to establish and define annual appropriations limits; and WHEREAS, the growth factors used to calculate the Annual Appropriations Limit are County or Town population change and the increase in the California per capita income; WHEREAS, in addition to the annual inflation and population adjustments, state law requires the Appropriations Limit to be adjusted in the event that the financial responsibility for providing services is transferred in whole or in part from one entity of government to another; and THEREFORE, BE IT RESOLVED: that the Annual Appropriations Limit for the Town of Los Gatos for FY 2021/22 is $48,186,101 as reflected in Exhibit B. ATTACHMENT 3 2 of 3 Resolution 2021 - June 15, 2021 PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 15th day of June 2021 by the following vote: COUNCIL MEMBERS: AYES: NAYS: ABSENT: ABSTAIN: SIGNED: MAYOR OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ ATTEST: TOWN CLERK OF THE TOWN OF LOS GATOS LOS GATOS, CALIFORNIA DATE: __________________ 3 of 3 Resolution 2021 - June 15, 2021 EXHIBIT B For Beginning County Town Per Capita Ending % YE Population Population Income Limit Limit Factor Factor Factor Limit Increase 2010 28,426,367 1.0156 1.0108 1.0062 29,048,811 2.19% 2011 29,048,811 1.0126 1.0101 0.9746 28,667,689 -1.31% 2012 28,667,689 1.0089 1.0096 1.0251 29,669,366 3.49% 2013 29,669,366 1.0124 1.0081 1.0377 31,169,671 5.06% 2014 31,169,671 1.0157 1.0147 1.0512 33,279,977 6.77% 2015 33,279,977 1.0150 1.0102 0.9977 33,701,485 1.27% 2016 33,701,485 1.0113 1.0020 1.0382 35,384,256 4.99% 2017 35,384,256 1.0126 1.0070 1.0537 37,754,174 6.70% 2018 37,754,174 1.0081 1.0040 1.0369 39,464,396 4.53% 2019 39,464,396 1.0099 1.0050 1.0367 41,317,775 4.70% 2020 41,317,775 1.0033 0.9998 1.0385 43,050,108 4.19% 2021 43,050,108 1.0037 1.0234 1.0373 45,831,327 *6.46% 2022 45,831,327 0.9944 0.9919 1.0573 48,186,101 5.14% County Per Capita 2020/21 2021/22 Population Income Appropriation Appropriation Appropriation Factor Factor Factor Limit Limit 0.9944 X 1.0573 =1.051379 X 45,831,327$ =48,186,101$ 2021/22 2021/22 Percentage Tax Appropriation of Revenues Limit Limit 30,797,977 /48,186,101$ =64% APPROPRIATION LIMIT FACTORS Appropriation Appropriation June 30 FY 2020/21 Calculation Percentage of Appropriation *FY 2020/21 ending and FY 2021/22 beginning Approtiation Limit includes an adjustment of $130,503 to adress the recently annexed parcels from Santa Clara County. The Town of Los Gatos increasing its base by $130,503 while the County of Santa Clara decreasing its base with the same amount.