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.� _ <br /> f�EPOr�T <br /> A� <br /> To the Honorable May�or and Ciity Council <br /> From the City Manage <br /> September 13, 2004 <br /> Subject <br /> Annual Appropriations Limit for FY 2004/05 <br /> Recommendation <br /> That the City Council adopt a resolution establishing the Appropriations Limit for the FY <br /> 2004/05. <br /> Background <br /> In 1979 the voters of the State of California passed Proposition 4, the Gann spending limit <br /> initiative. The initiative establishes and defines annual appropriation limits for state and <br /> local government entities and requires that the City adopt an appropriations limit annually. <br /> Moreover, the initiative provides for annual adjustments for changes in population, and <br /> either the statewide percentage change in per capita personal income or percentage <br /> change in assessed valuation attributable to growth in non-residential new construcfion. <br /> The recommended appropriations limit for FY 2004/05 is $246,942,560 while the limitfor <br /> 2003/04 was $198,916,483. This year's sizable increase is due to the unusually large <br /> (23.6%) increase in assessed valuation attributable to non-residentiat new construction <br /> (one of the factors used in computing the appropriations limit). The actual appropriation <br /> for FY 2004/05 is only $51,518,825, well below the $246,942,560 legal limit. <br /> The attachment displays the calculations utilized to arrive at this amount. <br /> � r..�� , <br /> Brian Ponty �€dwa Everett <br /> Director of Finance and Financial Planning City Manager <br /> Attachment <br /> Proposition 4 Appropriation Limitations FY 2004/05 <br />