REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF THE COUNTY OF SAN BERNARDINO
AND RECORD OF ACTION
February 9, 2021
FROM
LEONARD X. HERNANDEZ, Chief Executive Officer, County Administrative Office
SUBJECT
Title
Agreement to Transfer a Portion of Appropriation Limit
End
RECOMMENDATION(S)
Recommendation
Approve Agreement with the San Bernardino Mountains Community Hospital District with a perpetual term to decrease the County's State Constitutional Limit on Local Appropriations by $2,000,000 and increase the District's limit by $2,000,000 in recognition of services provided by the District to the residents of the community of Crestline.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Pursue County Goals and Objectives by Working with Other Agencies.
FINANCIAL IMPACT
This item will not result in any cost to the County. The County's Constitutional Limit on Local Appropriations (Gann Limit) is a state imposed limitation on the maximum amount a local government can spend in a given year, which is calculated based on the government's total appropriation in 1978 and adjusted each year for population growth and cost-of living factors. As demonstrated in the table below, the County has an estimated $23,853,966,718 for the 2020-21 Gann limit appropriation and estimated proceeds of taxes of $898,361,502, giving the County a current margin of $22,955,605,216 in available Gann limit should the County need it. As a result, a transfer of $2.0 million will not have any impact on the County's spending ability.
Estimated County Gann Limit
$23,853,966,718
(-) Estimated Proceeds of Taxes
($898,361,502)
(-) Transfer to District
($2,000,000)
Remaining Estimated County Gann Limit
$22,953,605,216
BACKGROUND INFORMATION
The California State Constitutional Limit on Local Appropriations, commonly known as the Gann Limit, was added in 1979 to the State Constitution and es...
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