CITY OF HAWAIIAN GARDENS
CITY COUNCIL
STAFF REPORT
Agenda Item #B2
65320.00001\45118054.1
DATE: June 24, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Ernesto Marquez, City Manager
BY: Linda Hollinsworth, Finance Director
RECOMMENDATION:
RECOMMENDATION TO APPROVE RESOLUTION NO. 013-2026 FIXING THE
APPROPRIATIONS LIMITATION IN THE CITY OF HAWAIIAN GARDENS FOR THE FISCAL YEAR 2026-2027
SUMMARY
Article XIIIB (Proposition 4) of the California Constitution, as amended by Proposition 111, SB88 (1990), and the Gann Implementation Bill 1352, requires that local jurisdictions establish appropriation limits each fiscal year. This limits the amount of proceeds from taxes that cities and other government agencies within California can receive and spend each fiscal year. The intent of this law is to limit government spending by putting a cap on the total tax proceeds that can be appropriated each year. Tax proceeds include: all taxes levied by or for an agency; any revenues from license fees, general use charges and user fees to the extent that the proceeds exceed the cost of providing the service covered by the fee; and discretionary State subventions.
State legislation requires the City to annually adopt a spending limit for each fiscal year.
The City may consider both inflation and population factors for calculating the spending limitation amount. The available options are:
An increase over the prior year’s limitation is allowed in three instances:
1. Percentage change in California fourth quarter per capita personal income or the increase in the non- residential assessed valuation due to new construction.
2. Percentage change in the population of the jurisdiction or the county in which the jurisdiction is located, whichever is greater.
Agenda Item #B2
June 24, 2026
65320.00001\45118054.1
3. Corrections for previous computation errors.
The City has chosen the following factors for calculating the FY 2026-2027 appropriations limit:
• The population for Los Angeles County and the City of Hawaiian Gardens had population growth of -.44 and -.26 respectively. The City used the change for the City as reported by the State Department of Finance.
• The price factor provided by the State Department of Finance is the per capita income of 4.95%.
The attached calculation schedules show that using these factors results in an increase to the appropriations limit of $1,243,756 for FY 2026-2027. The appropriations limit for this fiscal year is increased to $27,836,040. The appropriations (revenues) subject to the limit total $5,688,748 per the approved budget, resulting in the appropriations limit exceeding the amount subject to the limit by $22,174,292.
FISCAL IMPACT
None
SUGGESTED ACTION
Approve Recommendation.
ATTACHMENTS
A. Resolution 013-2026
B. Calculation Worksheets