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6.1 B Page 16 At this time the City has completed several detailed technical studies to establish that, although complicated, the project is viable. A very thorough, multi-year process of public engagement and environmental review to shape the plan and its alternatives has been started in order to prepare for the decision making process which will likely be several years from now. Development of this property could have significant fiscal impacts upon the City. These impacts will also be studied as part of the review process. Stanford University has submitted a proposal to redevelop a 35 acre site in Redwood City that was formerly known as the Mid-Point Technology Park. The proposed project includes administrative offices, research and development uses, and a medical clinic. This project has the potential to bring many jobs into the community. The City has engaged a consultant to thoroughly analyze the fiscal impact of this project as the property involved in this project would not generate any property taxes because the university is a non-profit organization and is exempted under California law from paying property taxes. The fiscal studies as well as the environmental review are nearing completion at this time. Additional focused economic development efforts include projects that will support the downtown and seek to address enduring high vacancy rates. A zoning amendment was approved in early 2010 which allows for a broader range of land uses in the downtown area. Interest from real estate professionals and property owners is high. Several high tech start-up businesses have recently opened in downtown Redwood City in the past year citing the location as favorable for access to transit, downtown amenities and services, and the overall business-friendly environment. Also, through Redevelopment funding, the existing Storefront Improvement Program is being revised to further incentivize property and business owners to upgrade out-dated or deteriorating storefronts. These efforts as well as others that are forthcoming are anticipated to decrease vacancy rates and increase business patronage downtown. Relevant Financial Policies In April 1999 the City Council adopted a policy targeting the unreserved portion of the general fund's fund balance designated for subsequent year's expenditures to fall within a range from 15% to 20% of anticipated general fund revenues. At the March 2010 budget study session the City Council directed staff to prepare a recommended FY 2010/11 budget with revenues and expenditures in balance. This was a departure from guidance provided in previous years in which the City Council elected to use a portion of reserves to finance projected deficits. Accordingly, the FY 2010/11 adopted budget contained $6.4 million in expenditure reductions and $635,500 in revenue increases owing primarily to increased fees. Appropriation Limit Article XIIIB of the California State Constitution, which became effective in FY 1979/80, and which was modified (by Proposition 111) in November 1989, establishes, by formula, an appropriation limit for governmental agencies. Using the appropriations of FY 1978/79 as the base year, the limit is modified by the change in the composite consumer price index, population, and the value of commercial property development within the City limits during each fiscal year. Article XIIIB also sets the guidelines as to what is to be included in the appropriation limits. The appropriation limit for Redwood City for the FY 2009/10 is at $312,057,259 while the actual appropriations subject to the limit amounted to $57,558,996. The following graph indicates the trend in appropriations subject to limitation: � v