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TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Anna Garan, Director of Finance
Moises Mata, Finance Manager
SUBJECT: Consideration and possible action to adopt Resolution No. 26-23 – A Resolution adopting the annual appropriations limit for fiscal year 2026-2027.
DATE: June 8, 2026
EXECUTIVE SUMMARY
In accordance with Article XIIIB of the California Constitution, the appropriations limit (also referred to as the "Gann limit") for fiscal year 2026-2027 has been calculated by applying the inflation factor provided by the City’s property tax consultant, HdL Coren & Cone and population factor provided by the State Department of Finance.
RECOMMENDATION TO THE CITY COUNCIL
1) Adopt Resolution No. 26-23; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None.
BACKGROUND
On November 6, 1979, California voters approved the Gann Spending Limitation Initiative (Proposition 4) establishing Article XIIIB of the State Constitution. Subsequently, on June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIIIB of the State Constitution. Article XIIIB sets limits on the amount of tax revenues that the State and most local governments can appropriate within a given fiscal year. - 1 -
Staff Report – Appropriations Limit for Fiscal Year 2026-2027 June 8, 2026
BACKGROUND – Continued
INFLATION FACTOR (selected higher of the following):
Change in the California
per capita personal income
4.95%
State
Department of
Finance
Growth in the
nonresidential assessed
valuation due to new
construction within the City
8.02%
HdL Coren &
Cone
Selected for
calculation
POPULATION FACTOR (selected higher of the following):
City of Bellflower
-0.59%
(population as of
1/1/26 of 76,203 vs.
1/1/25 of 76,656)
State
Department of
Finance
Los Angeles County
-0.40%
(population as of
1/1/26 of 9,825,852
vs. 1/1/25 of
9,865,367)
State
Department of
Finance
Selected for
calculation
The appropriations limit for fiscal year 2026-2027 is $117,877,510, an increase of $8,313,620 from the preceding fiscal year (Exhibit A). This new limit has been calculated by adjusting the fiscal year 2025-2026 appropriations limit for the changes in the taxable values of nonresidential new construction and the Los Angeles County’s population.
Based on the Operating Budget, the appropriations that are subject to this limit total $36,296,574 (Exhibit B). Since the annual appropriations limit is greater than the appropriations that are subject to the limit, the City is in compliance with the provisions of Article XIIIB of the California Constitution. The City’s calculation of the annual appropriations limit must also be reviewed by the auditors as part of the standard annual financial audit.
ATTACHMENTS
Resolution No. 26-23....................................................................................................... 3 Exhibit A, Annual Appropriations Limit Calculation .......................................................... 6 Exhibit B, Appropriations Subject to the Annual Limit...................................................... 7 State Department of Finance Letter, Dated May 2026 .................................................... 8 HdL’s Nonresidential New Construction Factor ............................................................. 11
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CITY OF BELLFLOWER
RESOLUTION NO. 26-23
A RESOLUTION ADOPTING THE ANNUAL APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2026-2027
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds and declares as follows:
A. The City Council may choose the method of calculating adjustments to the City’s Appropriations Limit on an annual basis pursuant to Article XIIIB of the California Constitution. For inflation, pursuant to Article XIIIB, § 8(e)(2), adjustments to the Appropriations Limit may be calculated using either the percentage change in per capita personal income from the preceding year or the percentage change in the local assessment roll from the preceding year because of local nonresidential new construction. For population growth, pursuant to Government Code § 7901(b), the City may either use the percentage growth either in its jurisdiction or from the surrounding county;
B. Pursuant to Article XIIIB of the California Constitution, and those Government Code sections adopted pursuant to Article XIIIB, § 8(f), the City Council chooses to adjust the City’s Appropriations Limit by calculating inflation using the percentage change in the local assessment roll from the preceding year because of local nonresidential new construction and calculating population growth by using the percentage change in the County of Los Angeles population;
C. The information necessary for making these adjustments is illustrated in attached Exhibits A and B, which are incorporated by reference; and
D. The City of Bellflower has complied with all the provisions of the amended Article XlIIB in determining the appropriations limit for fiscal year 2026-2027.
SECTION 2. The appropriations limit for fiscal year 2026-2027 for the City of Bellflower is established at $117,877,510.
SECTION 3. The appropriations subject to the annual limit as contained in the Operating Budget for fiscal year 2026-2027 are $36,296,574.
SECTION 4. Preservation. This Resolution does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before, this Resolution’s effective date. Any such amended part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Resolution.
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City of Bellflower
Resolution No. 26-23
SECTION 5. Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable.
SECTION 6. Reliance On Record. Each and every one of the findings and determinations in this Resolution are based on the competent and substantial evidence, both oral and written, contained in the entire record relating to the project. The findings and determinations constitute the independent findings and determinations of the City Council in all respects and are fully and completely supported by substantial evidence in the record as a whole.
SECTION 7. Limitations. The City Council’s analysis and evaluation of the project is based on the best information currently available. It is inevitable that in evaluating a project that absolute and perfect knowledge of all possible aspects of the project will not exist. One of the major limitations on analysis of the project is the City Council’s lack of knowledge of future events. In all instances, best efforts were made to form accurate assumptions. Somewhat related to this are the limitations on the City’s ability to solve what are in effect regional, state, and national problems and issues.
The City must work within the political framework within which it exists and with the limitations inherent in that framework.
SECTION 8. Summaries of Information. All summaries of information in the findings, which precede this section, are based on the substantial evidence in the record.
The absence of any particular fact from any such summary is not an indication that a particular finding is not based in part on that fact.
SECTION 9. Construction. This Resolution must be broadly construed in order to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 10. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code §16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 11. The Mayor, or presiding officer, is authorized to affix a signature to this Resolution signifying its adoption by the City Council of the City of Bellflower and the City Clerk, or her duly appointed deputy, is directed to attest.
SECTION 12. This Resolution will become effective immediately upon adoption. ///
///
///
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City of Bellflower
Resolution No. 26-23
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER ON THIS 8TH DAY OF JUNE 2026.
________________________________
Sonny R. Santa Ines, Mayor
ATTEST:
________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
________________________________
Karl H. Berger, City Attorney
ATTACHMENTS:
Exhibit A – Annual Appropriations Limit Calculation
Exhibit B – Appropriations Subject to the Annual Limit
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EXHIBIT A
(Resolution No. 26-23)
CITY OF BELLFLOWER
ANNUAL APPROPRIATIONS LIMIT CALCULATION
FOR FISCAL YEAR 2026-2027
Appropriations limit for fiscal year 2025-2026:109,563,890$ Adjustment factors for fiscal year 2026-2027:
Inflation Population
Factor Factor Combined
(Note 1)(Note 2)Factor
1.0802 0.9960 1.0758792 x 0.07587920
Adjustment for inflation and population 8,313,620
Appropriations limit for fiscal year 2026-2027:117,877,510$ Notes:
1.INFLATION FACTOR:
2.POPULATION FACTOR:
The City may adjust its appropriations limit by either the annual percentage change in per capita personal income provided by the State Department of Finance, or the percentage change in local assessment roll from the preceding year due to the addition of local nonresidential construction. The above factor represents the annual percentage change in the taxable values of nonresidential new constrction as provided by HdL Coren & Cone.
The City may adjust its appropriations limit by either the percentage change in the City's own population growth, or the percentage change in the population growth for Los Angeles County. The above factor represents the annual percentage change in population for the County of Los Angeles.
Exhibits A and B
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EXHIBIT B
(Resolution No. 26-23)
CITY OF BELLFLOWER
APPROPRIATIONS SUBJECT TO THE ANNUAL LIMIT
FOR FISCAL YEAR 2026-2027
A.PROCEEDS OF TAXES
Property tax 5,188,000$
Property tax in lieu of vehicle license fees 11,855,000 Utility users tax 4,134,000
Cannabis business tax 3,786,000
Sales tax 9,790,000
Transactions and use tax 7,210,000
Real property transfer tax 171,000
Transient occupancy tax 1,256,000
Business license tax 893,000
Motor vehicle license fees 130,000
TOTAL PROCEEDS OF TAXES 44,413,000$
B.EXCLUSIONS:
Qualified Capital Outlay (9,400,000)
Annual Debt Service (230,501)
TOTAL EXCLUSIONS (9,630,501)
C.NET INVESTED PROCEEDS OF TAXES 34,782,499
D.INTEREST ALLOCATION 1,514,075
E.APPROPRIATIONS SUBJECT TO THE LIMIT 36,296,574$
F.APPROPRIATIONS LIMIT FOR 2026-2027 (Exhibit A)117,877,510$ G.DIFFERENCE (ITEM F MINUS ITEM E)81,580,936$
CONCLUSION:
The City is in compliance with the provisions of Article XIIIB of the California Constitution as the Annual Appropriations Limit (Item F) is greater than the Appropriations Subject to the Limit (Item E).
Exhibits A and B
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May 1, 2026
Dear Fiscal Officer:
Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance to transmit an estimate of the percentage change in population to local governments.
Each local jurisdiction must use their percentage change in population factor for January 1, 2026, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year 2026–27. Attachment A provides the change in California’s per capita personal income and an example for utilizing the factors to calculate the 2026–27 appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue and Taxation Code section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits.
Population Certification
The population certification program applies only to cities and counties. California Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller’s Office. Finance will certify the higher estimate to the State Controller by June 1, 2026. Please note: The prior year’s city population estimates may be revised.
The per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic Research Unit at (916) 323-4086.
/s Erika Li
Attachment
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May 2026
Attachment A
A.Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year 2026–27 appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2026-27 4.95
B.Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a 2026–27 appropriation limit.
2026–27:
Per Capita Cost of Living Change = 4.95 percent
Population Change = -0.14 percent
Per Capita Cost of Living converted to a ratio: 4.95 + 100 = 1.0495 100
Population converted to a ratio: -0.14 + 100 = 0.9986 100
Calculation of factor for FY 2026–27: 1.0495 x 0.9986 = 1.0480 - 9 -
FISCAL YEAR 2026-27
Attachment B
Annual Percent Change in Population Minus Exclusions*
January 1, 2025 to January 1, 2026, and Total Population January 1, 2026 City County
Percent Change
25-26
Population Minus
Exclusions 1-1-25
Population Minus
Exclusions 1-1-26
Total Population
1-1-26
Bellflower Los Angeles -0.32 76,449 76,203 76,203 County Total Los Angeles -0.64 9,889,470 9,825,852 9,837,286 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes. - 10 -
NONRESIDENTIAL NEW CONSTRUCTION
THE CITY OF BELLFLOWER
FOR USE IN CALCULATING 2026/27 GANN LIMIT
2024/25 TO 2025/26 TAX YEARS - IN PARCEL NUMBER ORDER
Current Year
Improvements
Prior Year
ImprovementsUse CategoryParcel Owner
Percent
Change
6271-031-032 Commercial 84,503 163,200Ravens Properties Llc + 93.1% 6275-022-001 Commercial 428,392 714,000Rizo Angel Trust Alondra Trust + 66.7% 6277-002-013 Commercial 72,083,383 96,798,376Kaiser Foundation Hospitals + 34.3% 7110-029-016 Commercial 1,196 5,100Olive Crest + 326.4% 7110-029-022 Commercial 288,432 341,700Olive Crest + 18.5% 7161-008-022 Commercial 419,230 784,179All That You Cant Leave Behind Lp + 87.1% 7161-014-026 Commercial 1,239,300 1,366,000Bellflower Auto Llc Lessor + 10.2% 7 Parcels Listed 74,544,436 100,172,555 + 34.4%
This calculation reflects the 2025/26 increase in taxable values for this city due to non-residential new construction as a percentage of the total taxable value Increase (as of the 2025/26 lien year roll date). This percentage may be used as an alternative to the change in California per-capita personal income for calculating a taxing agency's annual adjustment of its Appropriation Limit pursuant to Article XIIIB of the State Constitution as Amended by Proposition 111 in June, 1990.
25,628,119
-1,490,889
24,137,230
300,805,333
8.02%
Total Change in Non-Residential Valuation Due to New Development Less Automatic 2.000% Assessors's Inflation Adjustment
Actual Change in Non-Residential Valuation
Change in Total Assessed Value
= Alternate 2026/27 Appropriations Limit Factor
Includes taxable primary parcels with known nonresidential use codes, no prior lien year transfers, and improvement value increases greater than 2.0% Change in Total Assessed Value is the assessed value change of the locally assessed secured and unsecured tax rolls.
This report is not to be used in support of debt issuance or continuing disclosure statements without the written consent of HdL, Coren & Cone Prepared On 3/10/2026 By MW Data Source: Los Angeles County Assessor 2025/26 Secured Tax Rolls
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