Attachment B, Exhibit 1
FY 2027 Adopted Budget 311.83$ 107.85$ 30.43$ 11.91$ 462.02$ Less:
Interfund Transfers (41.26)$ (7.40)$ (22.47)$ -$ (71.13)$ Allocated Charges (31.93)$ (0.69)$ (0.69)$ -$ (33.31)$ Non-Proceeds (63.92)$ (102.20)$ (11.42)$ (11.84)$ (189.37)$ Net Appropriations Subject to Limit 174.71$ (2.43)$ (4.15)$ 0.07$ 168.21$ FY 2026 Per Capita Income Change (CA Department of Finance) 4.95% Factor A 1.0495
FY 2026 Population Change (County of Santa Clara) 0.23% Factor B 1.0023
234.62$
1.0519
$246.80
Net Appropriations Subject to Limit $168.21
Amount Under the Limit $78.59
2026 1.0644 1.0031 1.0677 234.62$ 178.01$ 56.61$ 2025 1.0362 1.0002 1.0364 219.74$ 173.10$ 46.64$ 2024* 1.0444 0.9975 1.0418 212.02$ 157.94$ 54.08$ 2023* 1.0755 1.0007 1.0763 203.52$ 138.39$ 65.13$ 2022* 1.0573 0.9944 1.0514 189.10$ 127.09$ 62.01$ 2021 1.0373 1.0037 1.0411 179.86$ 113.06$ 66.80$ 2020 1.0385 1.0033 1.0419 172.75$ 127.42$ 45.33$ 2019 1.0367 1.0099 1.0470 165.80$ 114.94$ 50.86$ 2018 1.0369 1.0082 1.0454 158.36$ 131.49$ 26.87$ 2017 1.0537 1.0130 1.0674 151.48$ 109.51$ 41.97$ 2016 1.0382 1.0113 1.0499 141.92$ 100.60$ 41.32$ * FY 2022-2024 Appropriation Limits restated to correct for Total Adjustment Factor calculation error in those fiscal years. ** Excludes the $0.2m in General Fund transfers.
APPROPRIATIONS LIMITATION COMPLIANCE CALCULATION
FOR FISCAL YEAR 2027 ADOPTED BUDGET
($ IN MILLIONS)
Total Budgeted Appropriations General Fund ** Capital
Projects Funds
Special
Revenue Funds
Debt Service
Fund
Combined
Funds
FY 2026 Adopted Appropriations Limit
On November 6, 1979, California voters approved Proposition 4, an initiative that added Article XIIIB to the state Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. The Appropriations Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors.
Factor A x Factor B
FY 2027 Adopted Appropriations Limit
The City of Palo Alto remains well within its appropriations limit in FY 2027. Future year limit trends can be made based on the average change in regional population and income growth. The appropriations subject to limitation includes proceeds of taxes from the General Fund, Capital Projects Fund, and Special Revenue Funds.
Fiscal Year Per Capita Income
Factor
Population
Change Factor
Total
Adjustment
Factor
Appropriations
Limit
Appropriations
Subject to Limit
Amount Under
the Limit