ATTACHMENT B
1 RESOLUTION NO. XXXX
Resolution of the Council of the City of Palo Alto Establishing the City’s Appropriations Limit for Fiscal Year 2026
WHEREAS, under Article XIIIB of the Constitution of the State of California, the City of Palo Alto (City) may not appropriate any proceeds of taxes in excess of its appropriations limit; and WHEREAS, since fiscal year 1991, the City is permitted to adjust its appropriations limit annually based on inflation and population adjustment factors; and WHEREAS, pursuant to Government Code Section 37200, the calculation of the appropriations limit and the total appropriations subject to the limit were set forth in the annual budget of the City for Fiscal Year 2026, which was adopted by ordinance of the Council on June 16, 2025; and
WHEREAS, pursuant to Government Code sections 7901 and 7910, the final calculation of the appropriations limit has been determined, and the adjustment factors on which the calculation is based are a 6.44% percent change in California per capita income and a 0.31% percent change in the population growth for the City of Palo Alto; and WHEREAS, the documentation used in the determination of the appropriations limit has been made available to the general public for fifteen (15) days prior to the date of adoption of this resolution; and
WHEREAS, according to the final calculation, the City’s net appropriations subject to limitation are approximately $178.01 million.
NOW, THEREFORE, the Council of the City of Palo Alto does RESOLVE as follows:
SECTION 1. The Council of the City of Palo Alto hereby finds that, for Fiscal Year 2026, the final calculation of the appropriations limit of the City of Palo Alto has been determined in accordance with the adjustment factors referred to above, the documentation used in the determination of the calculation has been made available to the general public for the period of fifteen days as required by law, and the City’s appropriations are under the appropriations limit by approximately $56.61 million.
SECTION 2. The Council hereby adopts the final calculation of the appropriations limit of the City for Fiscal Year 2026, a copy of which is attached hereto as Exhibit 1.
ATTACHMENT B
2 SECTION 3. The Council finds that the adoption of this resolution does not constitute a project under the Section 15378(b)(4) of California Environmental Quality Act Guidelines because establishing the annual appropriations limit is a fiscal activity, and, therefore, no environmental assessment is necessary.
INTRODUCED AND PASSED: Enter Date Here
AYES:
NOES:
ABSENT:
ABSTENTIONS:
NOT PARTICIPATING:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
City Attorney
Director of Administrative Services