Which combination describes the two statutory increases applied to levy limit under Prop 2 1/2?

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Prop 2 1/2 sets levy limits with two pieces: a fixed automatic increase and a growth component. The automatic part is a base of 2.5% added to the levy each year. The growth component is determined by net new growth from construction—specifically new construction including additions and alterations—and it does not come from property revaluations. In other words, only increases tied to physical growth (new buildings, expansions, renovations) count toward this second part, not changes in assessed values due to revaluation.

So the best answer combines both elements: the 2.5% automatic increase plus a growth increase based on new construction (including additions and alterations) not from property revaluation. This reflects how Prop 2 1/2 separates a fixed cap from a variable growth factor tied to actual new development.