REPORT TO COUNCIL
SUBJECT
Title
City Council Public Hearing on FY 2026/27 Budget and Resource Allocation Plan and Establishment of Appropriations Limit, Sunnyvale Financing Authority Public Hearing on FY 2026/27 Budget, and City Council Review of FY 2026/27 Proposed Fees and Charges
Report
BACKGROUND
Recommended Budget and Resource Allocation Plan
The City Charter requires a public hearing to be held prior to the adoption of the City's budget and resource allocation plan.
Additionally, Article XIIIB of the California Constitution established appropriations limits on government agencies within California. Originally enacted by Proposition 4 in 1979, the appropriations limit sets a ceiling on the use of tax proceeds for appropriation by the state, school districts, and local governments in California. The limit uses 1978-1979 as the "base" year and is adjusted annually for population growth and cost-of-living factors. The purpose of the appropriations limit is to preclude state and local governments from retaining excess revenues, which must be redistributed to taxpayers and schools. To date, the City has never exceeded its appropriations limit. Section 7910 of the Government Code requires that the City annually adopt an appropriations limit for the coming year. The supporting documentation for establishing the limit must be available for public review at least 15 days prior to the adoption of the appropriations limit resolution. The required material that provides detailed information on the City's appropriations limit has been available for public review since May 7, 2026, and is included in Volume I of the FY 2026/27 Recommended Budget. It is also provided as Attachment 1 to this report.
The FY 2026/27 Recommended Budget also includes the annual budget for the Sunnyvale Financing Authority. The only appropriation for the Financing Authority is the annual debt service payment for the new Civic Center. The governing board of the Joint Powers Agency, the Sun...
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