Exhibit 6
RESOLUTION NO. 2026-121 .
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, ESTABLISHING THE FISCAL YEAR 2026-27 APPROPRIATION
LIMIT AS REQUIRED BY ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION
AND STATE LAW
WHEREAS, Article XIIIB of the California Constitution requires that governments annually establish a limit on the appropriation of proceeds of taxes commonly known as the “Gann Limit”; and WHEREAS, state law requires that this limit be presented to the governing body of each entity each fiscal year; and
WHEREAS, the Gann Limit is based on a combination of a population factor and an inflation factor as outlined in Attachment A; and
WHEREAS, the City Council desires at this time and deems it to be in the best public interest to adopt the annual Gann Limit for fiscal year (FY) 2026-27 as listed in Attachment A to this Exhibit 6.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows:
1.That the above recitations are true and correct.
2. That the proposed action is not a “project” as defined by California Environmental Quality Act, or CEQA, Section 21065 and CEQA Guidelines Section 15378(b)(4) and does not require environmental review under CEQA Guidelines Section 15060(c)(3) as it is a government fiscal activity and does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. The activity or projects for which this budget is intended to fund may require preparation of an environmental document in accordance with CEQA and the CEQA Guidelines.
3.That the City Council of the City of Carlsbad establishes and adopts the FY 2026-27 appropriation limit of $707,147,053 as computed in Attachment A to this Exhibit 6.
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PASSED, APPROVED AND ADOPTED at a Joint Special Meeting of the City Council of the City of Carlsbad, the Board of Directors of the Carlsbad Municipal Water District, the Board of Directors of the Carlsbad Public Financing Authority, the Community Development Commission, and the City Council as Successor Agency to the Carlsbad Redevelopment Agency held on the 16th day of June, 2026, by the following vote, to wit:
AYES: Blackburn, Bhat-Patel, Acosta, Burkholder, Shin.
NAYS: None.
ABSTAIN: None.
ABSENT: None.
_____________________________________
KEITH BLACKBURN, Mayor
______________________________________
SHERRY FREISINGER, City Clerk
(SEAL)
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Attachment A
APPROPRIATION LIMIT
The appropriations limitation imposed by the state, otherwise known as the Gann limit, creates a restriction on the amount of revenue that can be appropriated in any fiscal year. The basis for calculating the limit began in fiscal year 1978-79 and is increased based on population growth and inflation. The appropriation limit applies only to those revenues defined as proceeds of taxes.
•Population growth of Carlsbad, OR
•Population growth within San Diego County,
AND
•Growth in California per capita income, OR
•Growth in non-residential assessed valuation due to new construction in the city.
The factors used to calculate the fiscal year 2025-26 limit were:
•Population growth within San Diego County AND
•Growth in California per capita income.
The formula is outlined below:
Fiscal year 2025-26 expenditure limit $673,537,530
% Population growth within San Diego County 1.0004
Growth in California per capita income X 1.0495 Net increase factor 1.0499
Fiscal year 2026-27 limit (2025-26 limit x factor) $707,147,053 Current appropriation of proceeds of taxes
(Subject to the limit) $208,416,612
The City of Carlsbad’s appropriation limit is currently nearly three times its annual appropriations. With such a large margin, it is unlikely that the city will reach the appropriation limit in the foreseeable future. $-
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Appropriations Limit by Fiscal Year
Gann Appropriation Limit
Appropriations Subject to Limit
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