Exhibit A
City of Patterson
Appropriations Limit Calculation
Fiscal Year 2025-26
I. Calculation of Appropriations Limit: Amount
Fiscal Year 2024-25 Appropriations Limit $75,466,859
a. CPI Factor (change in California per capita income) 1.0644 * b. Population Factor (Change in County population) 1.0039 * Change Factor (a. x b.) 1.0685
Fiscal Year 2025-26 Appropriations Limit $80,639,025
II. Calculation of appropriations subject to the Appropriations Limit:
Fiscal Year 2025-26 Budgeted General Fund Revenue $27,461,844 Less: Non-proceeds of taxes ($4,670,790)
Total FY 2025-26 appropriations subject to the Appropriations Limit: $22,791,054 Remaining Capacity $57,847,971
The City of Patterson, in compliance with Article XIII-B of the California Constitution (Proposition 4, which was passed in 1979) and Section 7910 of the California Government Code, hereby establishes the City of Patterson’s Appropriation Limit for the Fiscal Year of 2025-26 to be $80,639,025.
The Appropriations Limitation imposed by Propositions 4 and 11 creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The limit is based on the actual appropriations during the 1978-79 fiscal year (base year established by Proposition 13) and is increase each year using the growth of population and inflation. The restricted revenue are those defined as “proceeds of taxes”. This means that even though an agency may collect a large amount of tax, it can not appropriate more than the established limit. Problems can arise when there is a strong flow of tax revenue and the population and/or inflation figures remain constant (or even go down). In this situation, an agency will be required to return the excess tax proceeds.
The City of Patterson’s limit is $80,639,025 while the proceeds of taxes (appropriations subject to limit) amounted to $22,791,054.