This section provides information concerning the limit on appropriations (the "Gann Limit"). Adoption of the appropriation limit occurs annually, as required by the State Constitution, Article XIIIB (as amended) and Government Code Section 7910. Generally, with certain exceptions, exclusions and qualifications, the Gann Limit restricts the amount of 'proceeds of taxes' revenues that the Town may appropriate.
In November, 1979, the voters of the State of California approved Proposition 4, commonly known as the Gann Initiative. The Proposition created Article XIIIB of the State Constitution placing limits on the amount of revenue which can be spent by all entities of government. Prop 4 became effective for the 1980/81 fiscal year, but the formula for calculating the limits was based on the 1978/79 "base year" revenues. In June 1990 the voters approved Prop 111, which provided adjustment formulas for local agencies to utilize in adjusting their annual Appropriations Limit. Prop. 111 required an annual review of Limit calculations. The Appropriations Limitations imposed by Propositions 4 and 111 creates a restriction on the amount of revenue which may be appropriated in any fiscal year. The Limit is based on actual appropriations during the 1978/79 fiscal year, and is increased each year using the growth of population and inflation. Not all revenues are restricted by the Limit, only those which are referred to as "proceeds of taxes."
The voters may approve an override to the calculated limit if approved by a majority vote in a regular election. Yountville voters have approved an override to our limit 7 times, most recently in 2011, in the annual amount of $900,000.