Andrew Schiltz, Principal Management Analyst/Interim City Treasurer

Adopt a Resolution of the City Council of the City of Rocklin Establishing the Appropriations Limit for the City of Rocklin and the Special Tax Districts for Fiscal Year 2021/22, and Amending the Appropriations Limit for Fiscal Year 2020/21.

California Constitution Article XIIIB limits the level of most appropriations from tax sources that most local government entities are permitted to make in any given year. The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost-of-living and population. Article XIIIB also requires local governments to return to taxpayers any tax revenues in excess of the amount that can be appropriated in any given fiscal year.

With respect to Special Districts, while the portion of Community Facilities Districts (CFD’s) that addresses bond indebtedness is exempt from the State appropriations limit, those Districts that have a service component are required  to have an appropriation limit placed on the Districts’ service appropriations. Base appropriation limits for the CFD’s are established in the Districts’ original formation documents and recalculated annually on population and per capita income changes. The law impacts CFD No. 1, CFD No. 5, and CFD No. 6.

Each year, the State Department of Finance is required to transmit an estimate of the percentage change in population of local governments (Revenue and Taxation Code, Section 2227). The annual appropriation limit is allowed to increase by the jurisdiction’s population growth percentage and the statewide growth in personal income.

For the City of Rocklin

• The State Department of Finance revised the January 1, 2020 City of Rocklin population to 69,702 from the original estimate of 70,350.  This revision decreased the percentage change in population for the 2020/21 appropriation limits to 1.30% from the original estimate of 2.24%.
• The City’s 2020/21 appropriation limit has been amended to $51,150,329 from $51,622,501.
• This 2020/21 amendment is a result of adjusting the population factor to reflect the revised information from the State Department of Finance.
• The estimated actual appropriation for Fiscal Year (FY) 2020/21 is $39,547,700 and will not exceed the 2020/21 amended appropriation limit.
• The State Department of Finance estimated a statewide increase in personal income for 2021/22 at 5.73%.
• The State Department of Finance estimated the Placer County January 1, 2021 population at 404,994 resulting in a 1.50% increase.
• The 2021/22 appropriation limit for the City of Rocklin is established at $54,894,533.

For the Special Districts

• The State Department of Finance revised the January 1, 2020 City of Rocklin population to 69,702 from the original estimate of 70,350.  This revision decreased the percentage change in population for the 2020/21 appropriation limits to 1.30% from the original estimate of 2.24%.
• The 2020/21 appropriation limits for each of the Special Tax Districts are amended due to the population estimate revision as follows:

CFD #1             $  8,972,300

CFD #5             $54,389,313

CFD #6             $  6,725,154

• The estimated actual appropriation for FY 2020/21 for all Special Tax Districts will not exceed the 2020/21 amended appropriation limit.
• The State Department of Finance estimated a statewide increase in personal income for 2021/22 at 5.73%.
• The State Department of Finance estimated the Placer County January 1, 2021 population at 404,994 resulting in a 1.50% increase.
• The 2021/22 appropriation limits for each of the Special Tax Districts are established as follows:

CFD #1             $  9,629,072

CFD #5             $58,370,610

CFD #6             $  7,217,435