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Page 1 of 3 <br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org <br />STAFF REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />DATE: June 9, 2025 <br />SUBJECT <br />Annual Appropriations Limit for Fiscal Year 2025-26 <br />RECOMMENDATION <br />Adopt a resolution establishing the Appropriations Limit for Fiscal Year 2025-26. <br />STRATEGIC PLAN GUIDING PRINCIPLE <br />Excellence in Government Operations <br />BACKGROUND <br />In 1979, State of California voters passed Proposition 4, the Gann spending limit initiative (most recently <br />amended in 1990 by Proposition 111). The initiative establishes and defines annual appropriation limits <br />for state and 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 (for the City or County, <br />whichever is greater) and either the statewide percentage change in per capita personal income or <br />percentage change in assessed valuation attributable to growth in non-residential new construction. <br />Additionally, State code states that fifteen days prior to the meeting in which the limit is adopted, <br />documentation used in the determination of the appropriations limit shall be made available to the public. <br />This documentation was posted on the City’s website on the financial information and reports section on <br />May 24, 2025. The calculation is also available in the FY 2025-26 Recommended Budget document. <br />ANALYSIS <br />The adopted appropriations limit for FY 2025-26 is $1,044,338,532 while the limit for FY 2024-25 was <br />$974,331,999. The proposed appropriations connected to the estimated proceeds of taxes for FY 2025- <br />6.A. - Page 1 of 12 <br />10