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tawx uF MEETING DATE: JUNE 7, 2010 <br />` ~ ITEM NO: ~--I <br />.~,~, <br />tos•~Aios COUNCIL AGENDA REPORT <br />DATE: MAY 30, 2010 <br />TO: MAYOR AND TOWN COUNCIL O~ <br />FROM: GREG CARSON, TOWN MANAGER <br />SUBJECT: ADOPT RESOLUTION ESTABLISHING THE FY 2010/11 GANN <br />APPROPRIATIONS LIMIT FOR THE TOWN OF LOS GATOS <br />RECOMMENDATION: <br />Adopt the attached resolution establishing the Game Appropriations Limit for FY 2010/11 <br />(Attachment 1). <br />BACKGROUND: <br />On November 6, 1979, California voters approved Proposition 4, coxnlnolily known as the Galin <br />Spending Limitation Initiative, establishing Article XIIIB of the California State Constitution. <br />This proposition, which became effective in FY 1980/81, mandated an appropriations (spending) <br />limit on the amount of tax proceeds that the State and most local government jurisdictions may <br />appropriate within a fiscal year. Charges for services, fees, grants, loans, donations and other <br />non-tax proceeds are excluded. Exemptions are also made for voter-approved debt prior to <br />January 1, 1979 and the cost ofcourt-related or Federal government mandates. <br />The idritiative was later modified by two propositions -Proposition 98 in 1988 -and Proposition <br />111 in 1990. Proposition 98 established the rehun of tax revenues exceeding appropriation linut <br />levels to the State or citizens tluough a process of refunds, rebates, or other means. Proposition <br />111 allowed more flexibility in the appropriation calculation factors. <br />DISCUSSION: <br />Attached for Council consideration is a resolution establishing au appropriations limit for <br />FY 2010/11. The appropriations limit is based on population and per capita income data <br />provided by the State of Cal' ornia Financ~ ment. In alignment with State guidelines, the <br />PREPARED BY: .~~~ ,Finance and Administrative Sernices Director <br />N:\F'INANCE\COUNCIL\Council StaffRepo~ \FY 2011\FY 2010-I1 Gann Limit.doc <br />~\ <br />Reviewed by: 1~_Assistant Town Manager ~~ , ~1'own Attorney <br />Clerk Administrator Finance olnmunity Development <br />