Laserfiche WebLink
6.1.D. - Page 19 <br />Fund Balances". In recent fiscal years, the City has used balances in excess of the reserve policy to pay down <br />unfunded liabilities. <br />In addition, the City Council adopted a Debt Disclosure Policy and updated the investment policy. The City <br />reviews these policies regularly and uses them to maintain sound fiscal practices. The City has also established <br />cash management, accounting, budgetary and risk management policies and practices that are essential to the <br />City's long-term fiscal health. These financial policies and practices also promote public confidence and increase <br />the City's credibility in the eyes of bond rating agencies and potential investors. Such policies also provide the <br />resources to react to financial needs in a prudent manner. <br />The City also elected to change investment practices by hiring a third party to provide independent, professional <br />investment management services. The purpose is to create a more strategic investment policy, and to diversify <br />the City's investments. <br />Appropriation Limit <br />Article XIIIB of the California State Constitution, which became effective in FY 1979-80, and which was modified <br />(by Proposition 111) in November 1989, establishes, by formula, an appropriation limit for governmental <br />agencies. Using the appropriations of FY 1978-79 as the base year, the limit is modified by the change in the <br />composite consumer price index, population, and the value of commercial property development within the City <br />limits during each fiscal year. Article XIIIB also sets the guidelines as to what is to be included in the appropriation <br />limits. <br />The appropriation limit for Redwood City for FY 2015-16 was at $602,484,739 while the actual appropriations <br />subject to the limit amounted to $ 91,095,700. The 2015-16 appropriation limit has increased from FY 2014-15 <br />due primarily to the increase (3.82%) in per capital personal income, one of the factors used in calculating the <br />change in the appropriation limit. <br />The following graph indicates the trend in appropriations subject to limitation: <br />700 <br />600 <br />500 <br />y <br />c 400 <br />300 <br />200 <br />100 <br />Appropriation Limit <br />All Funds Subject to Appropriation <br />2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 <br />Excluding General Improvement and Proprietary Funds ■ Limit . Sub. to Limit <br />vi <br />