03 Attachment 1 - Agreement Transfer of the Appropriation LimitAGREEMENT REGARDING TRANSFER OF APPROPRIATION LIMIT
This Agreement, effective as of the date last signed below, is by and between the County
Gatos, a .
WHEREAS, on June 18, 2019, by resolution of the Town Council, the Town annexed
twenty-four unincorporated County islands identified as LG 01, LG 02-02, LG 03, LG 04, LG
05, LG 06, LG 07, LG 09, LG 10, LG 11, LG 12, LG 14, LG 15-01, LG 15-02, LG 16, LG 17-
01-01-01, LG 17-01-01-02, LG 17-01-02, LG 17-02, LG 17-03, LG 17-04, LG 17-05, LG 18-01,
and LG 18-02 ;
WHEREAS, Article XIIIB of the California Constitution establishes limits on the
appropriations of local governments;
WHEREAS, section 3 of Article XIIIB provides that, when the financial responsibility
of providing services is transferred by annexation from one government entity to another, then
the appropriations limit of the transferee entity shall increase, and the appropriations limit of the
transferor entity shall decrease, by such reasonable amount as said entities shall mutually agree;
WHEREAS, on August 30, 2019, the Santa Clara County Local Agency Formation
Commission issued a Certification of Completion for the Annexation;
WHEREAS, as part of the Annexation, the effective tax rates of certain taxing
jurisdictions within the Annexation area were adjusted to reflect the transfer of responsibility to
the Town for providing certain services,
; and
WHEREAS, the Parties agree that the appropriations limit of the Town shall increase in
the amount of the County Revenue Transfer, and
decrease the same amount in accordance with Article XIIIB.
NOW, THEREFORE, the Parties agree as follows:
1. As of fiscal year 2020-21, the appropriations limit for the Town of Los Gatos shall be
increased by $130,503, and the resulting appropriations limit shall serve as the base
amount for any subsequent increases or adjustments implemented pursuant to law.
2. As of fiscal year 2020-21, the appropriations limit for the County of Santa Clara shall be
decreased by $130,503, and the resulting appropriations limit shall serve as the base
amount for any subsequent increases or adjustments implemented pursuant to law.
3. The Parties agree to take such administrative steps as may be necessary to implement this
Agreement.
ATTACHMENT 1
4. Unless otherwise prohibited by law or County policy, the parties agree that an electronic
copy of a signed contract, or an electronically signed contract, has the same force and
legal e
electronic means of a copy of an original signed contract in a portable document format.
an electronic signature using technology approved by the County.
ACCEPTED AND AGREED TO:
COUNTY OF SANTA CLARA: TOWN OF LOS GATOS:
By: ___________________________ By:___________________________
Miguel Márquez, Chief Operating Laurel Prevetti, Town Manager
Officer
Date: _________________________ Date: _________________________
APPROVED AS TO FORM AND LEGALITY:
__________________________________
Lesley Pak
Deputy County Counsel