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/It_ <br />THE CITY OF IIm~ <br /> <br />pL'EASA:NTON c ty Council <br /> Staff Report <br /> <br /> May 17, 2005 <br /> Finance Department <br /> <br />SUBJECT APPROPRIATIONS SUBJECT TO LIMITATION FOR FISCAL <br /> YEAR 2005-06 <br /> <br />STAFF RECOMMENDATION: <br /> <br /> 1. Select the percentage change in the City population and the percentage <br /> change in the local assessment roll due to nonresidential construction as <br /> the growth factors for determining the City's Proposition 4 spending limit <br /> in 2005-06, pursuant to Proposition 111. <br /> <br /> 2. Adopt the 2005-06 appropriation limit of $303,378,112. <br /> <br />SUMMARY Pursuant to Article XIIIB of the State Constitution, the City is required to <br /> adopt its appropriation (spending) limit for the coming fiscal year. <br /> Affected appropriations are those funded primarily from tax revenues. <br /> The spending limit is adjusted each year based on both an inflation factor <br /> and population increases. Using the optimal growth factors provided by <br /> the State and County in calculating the current year appropriation limit, <br /> the spending limit for 2005-06 is $303,378,112. The City will not exceed <br /> its appropriation limit for 2005-06. <br /> <br /> Honorable Mayor and Members of the City Council: <br /> <br /> BACKGROUND <br /> <br /> In 1979, the voters passed Proposition 4 ("Prop 4") with the intent of limiting government <br /> spending. Prop 4 accomplishes this by limiting an agency's ability to keep and spend its tax <br /> SR 05:130 <br /> <br /> <br />