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6.E. - Page 24 of 47 <br />City of Redwood City <br />Notes to Appropriations Limit Schedule <br />For the fiscal year ending June 30, 2019 <br />1. PURPOSE OF LIMITED PROCEDURES REVIEW <br />Under Article XIII -B of the California Constitution (the Gann Spending Limitation Initiative), California <br />governmental agencies are restricted as to the amount of annual appropriations from proceeds of taxes. <br />Effective for years beginning on or after July 1, 1990, under Section 1.5 of Article XIII -B, the annual <br />calculation of the appropriations limit is subject to a limited procedures review in connection with the <br />annual audit. <br />2. METHOD OF CALCULATION <br />Under Section 10.5 of Article XIII -B, for fiscal years beginning on or after July, 1990, the appropriations <br />limit is required to be calculated based on the limit for the fiscal year 1986-87, adjusted for the inflation <br />and population factors discussed in Notes 3 and 4 below. <br />3. POPULATION FACTORS <br />A California governmental agency may use as its population factor either the annual percentage change <br />of the jurisdictions own population or the annual percentage change in population of the County where <br />the jurisdiction is located. The factor adopted by the City for fiscal year 2019 represents the annual <br />percentage change in population for the County. <br />4. INFLATION FACTORS <br />A California governmental agency may use as its inflation factor either the annual percentage change in <br />the 4th quarter per capita personal income (which percentage is supplied by the State Department of <br />Finance) or the percentage change in the local assessment roll from the preceding year due to the change <br />of local nonresidential construction. The factor adopted by the City for the fiscal year 2018-2019 <br />represents the percentage change in the local assessment roll from the preceding year due to the change <br />of local nonresidential construction in the City. <br />5. OTHER ADJUSTMENTS <br />A California government agency may be required to adjust its appropriations limit when certain events <br />occur, such as the transfer of responsibility for municipal services to, or from, another government <br />agency or private entity. The City had no such adjustments for the fiscal year ending June 30, 2019. <br />277 <br />