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SOS caios COUNCIL AGENDA REPORT
DATE: JUNE 6, 2016
TO: MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
MEETING DATE: 06/07/16
ITEM NO: 4
ADDENDUM
SUBJECT: ADOPT RESOLUTION ESTABLISHING THE FY 2016/17 GANN
APPROPRIATIONS LIMIT FOR THE TOWN OF LOS GATOS
REMARKS:
After the distribution of the staff report, a Council Member asked:
How does $37,000,000 affect FY 16117 budget which anticipated $25,000,000?
Resuonse: The Gann Limit of $37.7M for FY 2016/17 is the calculated "appropriation from
taxes" limit for that year. This means that the Town has a limit of appropriations from tax
revenues of $37.7M for FY 2016 /17. The total appropriations from tax sources in the FY
2016/17 proposed budget is $25.3M. In other words, the Town is substantially below (i.e.
$12.2M below) the legal appropriations limit for the fiscal year. It is highly unlikely that the
Town will receive and budget additional unanticipated tax revenues in the next fiscal year above
the FY 2016/17 estimated taxes of $25.3 M that were incorporated into the proposed budget.
Therefore, staff believes there is virtually no scenario where the Town would come close to the
$37.7M limit.
PREPARED BY: STEPHEN D. CONWAY
Director of Finance
Reviewed by: Assistant Town Manager Town Attorney Finance
&TOUNCIL REPORTS \2016 \06 -07 -16\04 Gon\Addmd= - FY 2016 -17 Gaon Limit FINAL v2.doc