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OF PLEASANTON <br />ST_ FF <br />REPORT <br /> <br />HONORABLE CITY COUNCIL <br />Pleasanton, California <br /> <br />May 8, 1980 <br /> <br />0 <br /> <br />Appropriations Subject to Limitation for 1980-81 <br /> <br />Members Of the Council: <br /> <br />Introduction <br /> <br />On November 6, 1979, the voters of the State of California <br />approved Proposition 4 adding Article XIII B to the State <br />Constitution. Article XIII B places a limitation on the amount <br />which may be appropriated for expenditure by local governments. <br />Generally, the amendment limits the rate of growth in the City's <br />appropriations by the percentage increase (or decrease) in the <br />City's population and in the cost of living. The appropriation <br />limit is effective in the 1980-81 fiscal year, which begins <br />July l, 1980, and ends on June 30, 1981. This limit only applies <br />to appropriations financed from "proceeds of taxes."' <br /> <br />The appropriation limit for the City in fiscal year 1980-81 is <br />equal to the sum of all appropriations initially available for <br />expenditures that Were financed from the proceeds of taxes during <br />the period July 1, 1978 through June 30, 1979, adjusted for <br />changes in the cost of living and population. The appropriation <br />limit for each succeeding year would be equal to the limit"for <br />the prior year, adjusted for changes in the cost of living and <br />population. Thus, even if the City's appropriations in a given <br />year were held below the.level permitted by this limit, the <br />appropriation limit for the following year would not be any lower <br />as a result. The limit would still be based on the limit for the <br />prior year, adjusted for the changes in the cost of living and <br />population. <br /> <br />Changes in the Limit <br /> <br />Under the amendment the appropriation limit can be changed <br />temporarily if a majority of voters in the City approve the <br />change. However, the change can not be effective for more than <br />four years. Also, in the event of an emergency the appropriation <br />limit can be exceeded for a single year by the City Council <br />without voter approval. However, if the City Council provides <br />for an emergency increase, the appropriation limit in the <br /> <br />SR 80:125 <br /> <br /> <br />