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THE CITY OF 07 � ' -' "" ' CITY COUNCIL AGENDA REPORT pLEASANTONa May 17, 2011 Finance TITLE: ADOPT A RESOLUTION FOR THE 2011112FY APPROPRIATIONS LIMIT SUMMARY Pursuant to Article XIIIB of the State Constitution, the City is required to annually adopt its appropriation (spending) limit for the coming fiscal year (2011/12FY). Affected appropriations are those funded primarily from tax revenues. The spending limit is adjusted each year based on both an inflation factor and population increases. Using the optimal growth factors provided by the State and County in calculating the current year appropriation limit, the spending limit for 2011/12FY is $391,068,060. The City will not exceed its appropriation limit for 2011/12FY. RECOMMENDATION Adopt a resolution for the 2011/12FY appropriation limit of $391,068,060 which is based on the percentage change in the County population and the percentage change of the California per capita personal income over prior year as the growth factors for determining the City's Proposition 4 spending limit in 2011/12FY, pursuant to Proposition 111. FINANCIAL STATEMENT The 2011/12FY appropriations subject to the limit are calculated as part of the budget process and are estimated to be approximately $70 million. Therefore, the $391,068,060 limit is not anticipated to be reached or exceeded in the 2011/12FY.