Laserfiche WebLink
BACKGROUND <br /> In 1979, the voters passed Proposition 4 ("Prop 4") with the intent of limiting <br /> government spending. Prop 4 accomplishes this by limiting an agency's ability to keep <br /> and spend its tax revenue based on its base year FY 1978/79 spending, adjusted <br /> annually by an inflation factor and the agency's increase in population. <br /> DISCUSSION <br /> The factors used to compute the Prop 4 limits are: (1) either the percentage change in <br /> California per capita personal income or the percentage change in the local assessment <br /> roll from the preceding year due to the addition of local nonresidential construction in <br /> the City, and (2) either the City's own population growth or the population growth of the <br /> entire County. <br /> The State of California Department of Finance annually provides the California per <br /> capita personal income change percentage for purposes of calculating the Prop 4 <br /> Spending Limit. For the FY 2018/19, California per capita personal income increased <br /> by 3.67% that exceeds the 2.07% percentage change in Pleasanton's local assessment <br /> roll provided by the County Assessor's office. The City's population growth of 3.20% <br /> exceeds Alameda County's population growth of .84%. Therefore, the calculation for <br /> the FY 2018/19 appropriations limit is based on the percentage change in California per <br /> capita personal income and the City's population growth. Attachment 2 details the <br /> calculation of the Prop 4 appropriations limit for the FY 2018/19 of $637,838,044. <br /> Submitted by: Approved by: <br /> it4 //U6 <br /> Tina Olson Nelson Fialho <br /> Director of Finance City Manager <br /> Attachments: <br /> 1. Resolution <br /> 2. FY 2018/19 Appropriations Limit Calculation <br /> Page 2 of 2 <br />