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<br />R.EPORT <br /> <br />6.2C <br />age 1 <br /> <br />To the Honorable Mayor and City Council <br />From the Ci. Mana. er <br /> <br />June 16,2008 <br /> <br />SUBJECT <br />Annual Appropriations Limit for FY 2008/09 <br /> <br />RECOMMENDATION <br />Adopt a resolution establishing the appropriations limit for FY 2008109. <br /> <br />BACKGROUND <br />In 1979 the voters of the State of California passed Proposition 4, the Gann spending <br />limit initiative. The initiative establishes and defines annual appropriation limits for state <br />and local government entities and requires that the City adopt an appropriations limit <br />annually. Moreover, the initiative proVides for annual adjustments for changes in <br />population (for the City or County, whichever is greater) and either the statewide <br />percentage change in per capita personal income or percentage change in assessed <br />valuation attributable to growth in non-residential new construction. <br /> <br />The recommended appropriations limit for FY 2008/09 is $306,426,663 while the limit <br />for FY 2007/08 was $288,449,808. The estimated proceeds of taxes for FY 2008/09 are <br />only $60,486,432, well below the $306,426,663 legal limit. <br /> <br />The attachment displays the calculations utilized to arrive at this amount. <br /> <br />ALTERNATIVES <br />There are no practical alternatives as Article XIIIS of the State Constitution requires that <br />the state and all local entities adopt an appropriations limit annually. <br /> <br />FISCAL IMPACT <br />There is no fiscal impact associated with adopting the recommended appropriations <br />limit as the appropriation of the proceeds of taxes is well under the recommended limit. <br /> <br />fJ ff~ <br /> <br />Brian J. Ponty <br />Director of Finance and Financial Planning <br /> <br />ATTACHMENTS <br />1. Resolution <br />2. Proposition 4 Appropriation Limitations FY 2008109 <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br />