6,586 / 70.8% Yes votes ...... 2,721 / 29.2% No votes

See Also: Index of all Measures

Existing law, enacted by the voters in 1979 as part of Proposition 4 (now California Constitution Article XIIIB), restricts governmental appropriations by setting an annual appropriations limit for governmental agencies. This appropriations limit is sometimes called the "Gann limit."

The California Constitution allows voters to change this appropriations limit for a maximum period of four years at a time. Unless the voters do so, the appropriations limit will be calculated as required by California Constitution Article XIIIB.

Under State law, new cities receive extra state money for several years. This extra money comes from state motor vehicle license fees. Those fees are tied to a population estimate based upon the number of registered voters within the City. Because the number of registered voters in Laguna Woods is unusually high, the City is currently receiving significant extra state money.

Laguna Woods will receive this extra money each year until fiscal year 2005-2006. During this time, Laguna Woods is likely to receive more money than it will be permitted to appropriate under its current appropriations limit. This measure will increase the appropriations limit so that the City can retain and appropriate the extra money received from the State for current and future uses. The measure does not authorize the City to impose any new or increased taxes.

If this measure is not approved, the appropriations limit will not be increased and the City will not be able to retain and appropriate all funds received.

A "yes" vote will approve the increase in the City's appropriations limit. A "no" vote will not allow the increase in the City's appropriations limit.

Measure P is not a tax or an increase in the City's current revenues. Every local government must establish an appropriations limit. This limit controls the amount of existing taxes # sales, property, motor vehicle, and transient occupancy tax # that a City may keep. During the next four years, Laguna Woods expects to receive funding that may exceed its permanent appropriations limit. Without approval of the voters, the City may not be able to spend this money.

New cities receive motor vehicle fees for seven years based on the number of registered voters at incorporation. In the eighth year, motor vehicle fees are adjusted to reflect distribution based on population. This is expected to reduce City revenues by approximately $1.6 million. The City will continue to receive increased motor vehicle fees through June 30,
2006. State law allows cities to keep revenues that exceed their appropriations limit with the approval of the voters.

The City spends current revenues to fund a variety of programs including street lighting in Leisure World, enhanced police patrol, discounted taxicab vouchers, household hazardous waste pick-up and recreational activities. If the City is unable to keep money it currently receives, some of these programs may be dropped. Measure P will allow the City to keep all the money it is currently authorized to receive for the next four years. It does not permit tax increases or new taxes. If the measure is not approved taxes will not be lowered, the City will simply not be able to spend the money it currently receives.

We urge you to approve this Measure so that the City can continue to provide programs that benefit our unique community.