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<br />6.28 <br />Page 1 <br /> <br />REPORT <br /> <br />To the Honorable Mayor and City Council <br />From the Cit Mana er <br /> <br />June 21, 2010 <br /> <br />SUBJECT <br />Annual Appropriations Limit for Fiscal Year 2010-11 <br /> <br />RECOMMENDATION <br />By resolution, establish the appropriations limit for Fiscal Year 2010-11. <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 2010-11 is $361,486,037 while the limit <br />for FY 2009-10 was $312,057,259. The estimated proceeds of taxes for FY 2010-11 are <br />only $63,437,140, well below the $361,486,037 legal limit. <br /> <br />The attachment displays the calculations utilized to arrive at this amount. <br /> <br />AL TERNA TJVES <br />There are no practical alternatives as Article XIII 8 of the State Constitution requires that <br />the state and all local entities adopt an appropriations limit annually. <br /> <br />FISCAL IMPACT <br /> <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 />~f!?~ <br /> <br />Brian J. ponty <br />Director of Finance <br /> <br />~ <br />C;f/f <br /> <br />Peter In ram ' <br />City Manager <br /> <br />ATTACHMENTS <br />1. Resolution Establishing Appropriation Limits for FY 2010-11 <br />2. Proposition 4 Appropriation Limitations FY 2010-11 <br /> <br />RELATED DOCUMENTS IN CITY CLERK'S OFFICE <br />None <br />