Report to Mayor and Councilmembers
Date: February 24, 2026
Page: 3 of 3
CONCLUSION:
Staff recommends that the City Council adopt a resolution pursuant to Propositions 4 and 111, establishing the Gann Spending Limit for fiscal year 2024-2025.
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Shannon Esenwein
City Manager Director of Finance
Attachments: Attachment 1 – FY 2024-2025 Appropriations Limit Resolution Schedule A – Appropriations Limit Calculation for FY 2024-2025
RESOLUTION NO. 2026-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA ADOPTING (1) THE APPROPRIATIONS LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2025, AND (2) THE ANNUAL ADJUSTMENT FACTORS USED TO CALCULATE THE
APPROPRIATIONS LIMIT
________________________________________________________________ WHEREAS, the Gann Initiative or Proposition 4, hereby referred to as Article XIIIB of the Constitution of the State of California, was passed by the people; WHEREAS, Article XIIIB, as amended, mandates an appropriations limit on various units of government, including the City of La Mesa and mandates a recorded vote of Council regarding which of the annual adjustment factors have been selected to calculate the limit; WHEREAS, that limit has been calculated by the Finance Department of the City of La Mesa using the appropriate annual adjustment factors and following current guidelines provided by the League of California Cities; and
WHEREAS, the City Council of the City of La Mesa desires to formally adopt the appropriations limit for the City, and the annual adjustment factors used in calculating that limit.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California that in accordance with Article XIIIB of the Constitution of the State of California the Appropriations Limit for the City of La Mesa for Fiscal Year 2024-2025 is $1,582,906,656 and the annual adjustment factors selected to calculate the limit are (1) 12.9 percent, which is the growth in new Non-Residential Construction, and (2) 0.07 percent, which is the percentage growth in the population of the County of San Diego.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California held the 24th day of February 2026, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
2024-2025
Growth in non-residential assessed values 0.129
due to new construction
Change in City or County Population 0.07%
Growth in non-residential assessed values 1.129
due to new construction - Converted to a ratio
Change in City or County Population 1.0007
Converted to a ratio
Calculation of factor for ratio change
(1.129 x 1.0007) 1.1298
2023-2024 Limit (corrected per audit) $ 1,401,062,353
2024-2025 Limit $ 1,582,906,656 *
($1,401,062,353 x 1.129 x 1.0007)
*allow for rounding
Since the City's 2024-2025 Appropriations Subject to Limit totals $56,274,280 La Mesa is not at risk of exceeding the appropriations limit for 2024-2025 City of La Mesa
Schedule A: APPROPRIATIONS LIMIT
WORKSHEET
1978-79 BASE YEAR 10,097,414
APPROPRIATIONS LIMIT 1979-80 11,237,789
APPROPRIATIONS LIMIT 1980-81 12,505,592
APPROPRIATIONS LIMIT 1981-82 13,617,445
APPROPRIATIONS LIMIT 1982-83 14,726,754
APPROPRIATIONS LIMIT 1983-84 15,362,231
APPROPRIATIONS LIMIT 1984-85 16,259,350
APPROPRIATIONS LIMIT 1985-86 16,859,016
APPROPRIATIONS LIMIT 1986-87 17,107,074
APPROPRIATIONS LIMIT 1987-88 17,546,044
APPROPRIATIONS LIMIT 1988-89 18,321,311
APPROPRIATIONS LIMIT 1989-90 19,493,367
REVISED LIMIT FOR 1990-91 (Prop 111) 45,521,262
APPROPRIATIONS LIMIT 1991-92 48,856,461
APPROPRIATIONS LIMIT 1992-93 59,329,647
APPROPRIATIONS LIMIT 1993-94 67,797,586
APPROPRIATIONS LIMIT 1994-95 69,268,994
APPROPRIATIONS LIMIT 1995-96 73,670,091
APPROPRIATIONS LIMIT 1996-97 114,041,641
APPROPRIATIONS LIMIT 1997-98 160,195,856
APPROPRIATIONS LIMIT 1998-99 204,631,752
APPROPRIATIONS LIMIT 1999-2000 244,865,432
APPROPRIATIONS LIMIT 2000-2001 262,411,424
APPROPRIATIONS LIMIT 2001-2002 292,169,719
APPROPRIATIONS LIMIT 2002-2003 310,634,612
APPROPRIATIONS LIMIT 2003-2004 323,435,514
APPROPRIATIONS LIMIT 2004-2005 347,489,584
APPROPRIATIONS LIMIT 2005-2006 370,412,784
APPROPRIATIONS LIMIT 2006-2007 388,700,893
APPROPRIATIONS LIMIT 2007-2008 410,833,226
APPROPRIATIONS LIMIT 2008-2009 434,199,308
APPROPRIATIONS LIMIT 2009-2010 468,424,652
APPROPRIATIONS LIMIT 2010-2011 464,972,409
APPROPRIATIONS LIMIT 2011-2012 483,792,864
APPROPRIATIONS LIMIT 2012-2013 737,419,120
APPROPRIATIONS LIMIT 2013-2014 781,376,379
APPROPRIATIONS LIMIT 2014/2015 809,812,806
APPROPRIATIONS LIMIT 2015-2016 850,668,478
APPROPRIATIONS LIMIT 2016-2017 905,761,043
APPROPRIATIONS LIMIT 2017-2018 1,003,309,624
APPROPRIATIONS LIMIT 2018-2019 1,050,012,332
APPROPRIATIONS LIMIT 2019-2020 1,119,328,476
APPROPRIATIONS LIMIT 2020-2021 1,206,526,963
APPROPRIATIONS LIMIT 2021-2022 1,290,441,866
APPROPRIATIONS LIMIT 2022-2023 1,335,441,432
APPROPRIATIONS LIMIT 2023-2024 1,401,062,353
APPROPRIATIONS LIMIT 2024-2025 1,582,906,656
HISTORICAL APPROPRIATIONS LIMIT CALCULATIONS
City of La Mesa
REPORT to the MAYOR and MEMBERS of the CITY COUNCIL
From the CITY MANAGER
DATE: February 24, 2026
SUBJECT: RESOLUTION ADOPTING THE APPROPRIATIONS
LIMIT (GANN SPENDING LIMIT) FOR FISCAL YEAR
2025-2026 AND THE ANNUAL ADJUSTMENT
FACTORS USED TO CALCULATE THE LIMIT
ISSUING DEPARTMENT: Finance
SUMMARY:
Issues:
Should the City council adopt the attached resolution to: 1) Establish the Appropriations Limit, also called the Gann Spending Limit for Fiscal Year Ending June 30, 2026, and 2) Adopt the annual adjustment factors used to calculate the limit.
Recommendation:
That the City Council adopt a resolution pursuant to Propositions 4 and 111, establishing the Gann Spending Limit for Fiscal Year 2025-2026, using the change in California’s per capita personal income and the change in population in San Diego County, as the annual adjustment factors used to compute the Appropriations Limit.
Fiscal Impact:
Adoption of the recommended action establishes the City’s annual appropriations limit as required by State law. This action does not increase actual expenditures or authorize new spending but sets the legal spending threshold for proceeds of taxes for the fiscal year.
Report to Mayor and Councilmembers
Date: February 24, 2026
Page: 2 of 3
City’s Strategic Goals:
Ensure a strong financial outlook through careful planning, sustainable service levels, and fiscal sustainability.
BACKGROUND:
The Gann Initiative (Proposition 4) was passed on November 6, 1979 by the voters of California and became a constitutional amendment that limited the annual growth of State and local government budgets. The amendment established fiscal year 1978-79 as the base year and allowed the base amount to increase in future years by two factors: (1) the percentage change in population (city or county), and (2) the greater of the percentage change in the California Per Capita Personal Income (CPCI) index or the percentage change in the local assessment roll from the preceding year for the City of La Mesa due to the addition of local nonresidential new construction. These annual adjustment factors were provided by the State Department of Finance and were used to calculate the Appropriations Limit for the City of La Mesa for each fiscal year through 1989-90.
DISCUSSION:
By resolution, the City Council must adopt the Gann Spending Limit based on the growth factors provided as follows:
1. Price Factor: Growth rate of 6.44%
2. Population Factor: Growth rate of 0.44%
The compounded growth factor used in fiscal year 2025-2026 is 1.0691% It should be noted that only appropriations financed from "Proceeds of Taxes" are subject to the Appropriations Limit. "Proceeds of Taxes" includes such revenue as property taxes, sales and use taxes, transient occupancy taxes, and interest earned on taxes. Revenues from other sources such as fees, charges, and Federal grants are considered "Nonproceeds of Taxes" and are not subject to the Appropriations Limit.
As detailed in Schedule A, the City of La Mesa's fiscal year 2025-2026 Appropriations Limit of $1.69 billion, is well above the amount subject to the limit of $65 million. The disparity between the City's Gann Spending Limit is due the City’s ability to contain costs well under the growth in spending allowed by Prop 4 and 111.
As required by SB 813, passed by the State Legislature in 1987, the Appropriations Limit and the "Appropriations Subject to the Limit" are to be included in the annual budget adopted by the City Council.
Report to Mayor and Councilmembers
Date: February 24, 2026
Page: 3 of 3
CONCLUSION:
Staff recommends that the City Council adopt a resolution pursuant to Propositions 4 and 111, establishing the Gann Spending Limit for fiscal year 2025-2026.
Reviewed by: Respectfully submitted by:
____________________ ____________________________
Greg Humora Shannon Esenwein
City Manager Director of Finance
Attachments: Attachment 1 – FY 2025-2026 Appropriations Limit Resolution Schedule A – Appropriations Limit Calculation for FY 2025-2026
RESOLUTION NO. 2026-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA ADOPTING (1) THE APPROPRIATIONS LIMIT FOR FISCAL YEAR ENDING JUNE 30, 2026, AND (2) THE ANNUAL ADJUSTMENT FACTORS USED TO CALCULATE THE
APPROPRIATIONS LIMIT
________________________________________________________________ WHEREAS, the Gann Initiative or Proposition 4, hereby referred to as Article XIIIB of the Constitution of the State of California, was passed by the people; WHEREAS, Article XIIIB, as amended, mandates an appropriations limit on various units of government, including the City of La Mesa and mandates a recorded vote of Council regarding which of the annual adjustment factors have been selected to calculate the limit; WHEREAS, that limit has been calculated by the Finance Department of the City of La Mesa using the appropriate annual adjustment factors and following current guidelines provided by the League of California Cities; and
WHEREAS, the City Council of the City of La Mesa desires to formally adopt the appropriations limit for the City, and the annual adjustment factors used in calculating that limit.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California that in accordance with Article XIIIB of the Constitution of the State of California the Appropriations Limit for the City of La Mesa for Fiscal Year 2025-2026 is $1,692,259,166 and the annual adjustment factors selected to calculate the limit are (1) 6.44 percent, which is the growth in California Consumer Price Index, and (2) 0.44 percent, which is the percentage growth in the population of the County of San Diego.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California held the 24th day of February 2026, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)
2025-2026
Growth in Consumer Price Index (CPI) 6.44%
Change in City or County Population 0.44%
Growth in Consumer Price Index (CPI) 1.0644
Converted to a ratio
Change in City or County Population 1.0044
Converted to a ratio
Calculation of factor for ratio change
(1.0644 x 1.00440) 1.0691
2024-2025 Limit $ 1,582,906,656
2025-2026 Limit $ 1,692,259,166 *
($1,582,906,656 x 1.0644 x 1.0044)
*allow for rounding
Since the City's 2025-2026 Appropriations Subject to Limit totals $64,931,100 La Mesa is not at risk of exceeding the appropriations limit for 2025-2026.
City of La Mesa
Schedule A: APPROPRIATIONS LIMIT WORKSHEET
1978-79 BASE YEAR 10,097,414
APPROPRIATIONS LIMIT 1979-80 11,237,789
APPROPRIATIONS LIMIT 1980-81 12,505,592
APPROPRIATIONS LIMIT 1981-82 13,617,445
APPROPRIATIONS LIMIT 1982-83 14,726,754
APPROPRIATIONS LIMIT 1983-84 15,362,231
APPROPRIATIONS LIMIT 1984-85 16,259,350
APPROPRIATIONS LIMIT 1985-86 16,859,016
APPROPRIATIONS LIMIT 1986-87 17,107,074
APPROPRIATIONS LIMIT 1987-88 17,546,044
APPROPRIATIONS LIMIT 1988-89 18,321,311
APPROPRIATIONS LIMIT 1989-90 19,493,367
REVISED LIMIT FOR 1990-91 (Prop 111) 45,521,262
APPROPRIATIONS LIMIT 1991-92 48,856,461
APPROPRIATIONS LIMIT 1992-93 59,329,647
APPROPRIATIONS LIMIT 1993-94 67,797,586
APPROPRIATIONS LIMIT 1994-95 69,268,994
APPROPRIATIONS LIMIT 1995-96 73,670,091
APPROPRIATIONS LIMIT 1996-97 114,041,641
APPROPRIATIONS LIMIT 1997-98 160,195,856
APPROPRIATIONS LIMIT 1998-99 204,631,752
APPROPRIATIONS LIMIT 1999-2000 244,865,432
APPROPRIATIONS LIMIT 2000-2001 262,411,424
APPROPRIATIONS LIMIT 2001-2002 292,169,719
APPROPRIATIONS LIMIT 2002-2003 310,634,612
APPROPRIATIONS LIMIT 2003-2004 323,435,514
APPROPRIATIONS LIMIT 2004-2005 347,489,584
APPROPRIATIONS LIMIT 2005-2006 370,412,784
APPROPRIATIONS LIMIT 2006-2007 388,700,893
APPROPRIATIONS LIMIT 2007-2008 410,833,226
APPROPRIATIONS LIMIT 2008-2009 434,199,308
APPROPRIATIONS LIMIT 2009-2010 468,424,652
APPROPRIATIONS LIMIT 2010-2011 464,972,409
APPROPRIATIONS LIMIT 2011-2012 483,792,864
APPROPRIATIONS LIMIT 2012-2013 737,419,120
APPROPRIATIONS LIMIT 2013-2014 781,376,379
APPROPRIATIONS LIMIT 2014/2015 809,812,806
APPROPRIATIONS LIMIT 2015-2016 850,668,478
APPROPRIATIONS LIMIT 2016-2017 905,761,043
APPROPRIATIONS LIMIT 2017-2018 1,003,309,624
APPROPRIATIONS LIMIT 2018-2019 1,050,012,332
APPROPRIATIONS LIMIT 2019-2020 1,119,328,476
APPROPRIATIONS LIMIT 2020-2021 1,206,526,963
APPROPRIATIONS LIMIT 2021-2022 1,290,441,866
APPROPRIATIONS LIMIT 2022-2023 1,335,441,432
APPROPRIATIONS LIMIT 2023-2024 1,401,062,353
APPROPRIATIONS LIMIT 2024-2025 1,582,906,656
APPROPRIATIONS LIMIT 2025-2026 1,692,259,166
HISTORICAL APPROPRIATIONS LIMIT CALCULATIONS
City of La Mesa
DATE: February 10, 2026
TO: Mayor and Members of the City Council
FROM: Vice Mayor Lauren Cazares and Councilmember Laura Lothian VIA: Greg Humora, City Manager
SUBJECT: CONSIDERATION OF DIRECTING STAFF TO DRAFT ADVOCACY
LETTERS TO STATE LEGISLATORS AND LEAGUE OF CALIFORNIA
CITIES (CAL CITIES) REQUESTING LEGISLATIVE ACTION TO
STRENGTHEN STATEWIDE REGULATION, OVERSIGHT, AND
ENFORCEMENT FOR LICENSED AND UNLICENSED SOBER LIVING
FACILITIES AND RESIDENTIAL DETOX FACILITIES (2025-2026
LEGISLATIVE SESSION)
Direct staff to prepare and transmit advocacy letters to the City’s state legislative representatives, including but not limited to Senator Weber, Assemblymember Blakespear, Assemblymember Sharp-Collins, and relevant Orange County legislative representatives, as well as to Cal Cities requesting that they take action during the 2025- 2026 California Legislative Session to strengthen statewide regulation, oversight, and enforcement related to licensed and unlicensed sober living homes, residential detox facilities, and similar residential recovery/treatment operations.
DATE: February 10, 2026
TO: Mayor and Members of the City Council
FROM: Vice Mayor Cazares and Councilmember Lothian
VIA: Greg Humora, City Manager
SUBJECT: CONSIDERATION OF ADOPTING A RESOLUTION REAFFIRMING THE CITY COUNCIL’S COMMITMENT TO THE CITY OF LA MESA
STRATEGIC PLAN GOALS, INCLUDING SAFE COMMUNITY,
FINANCIAL SUSTAINABILITY, LIVABILITY, INFRASTRUCTURE AND
AMENITIES, AND HIGH-PERFORMING ORGANIZATION, WHICH GUIDE
CITY POLICIES, PROGRAMS, AND LEGISLATIVE ADVOCACY
EFFORTS
Please find the proposed resolution attached.
RESOLUTION NO. 2026-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA MESA
REAFFIRMING THE CITY COUNCIL’S COMMITMENT TO THE CITY’S
STRATEGIC PLAN GOALS, INCLUDING SAFE COMMUNITY, FINANCIAL
SUSTAINABILITY, LIVABILITY, INFRASTRUCTURE AND AMENITIES, AND
HIGH-PERFORMING ORGANIZATION, WHICH GUIDE CITY POLICIES,
PROGRAMS, AND LEGISLATIVE ADVOCACY EFFORTS
WHEREAS, in September 2023, the City Council adopted the 2023-2028 Citywide Strategic Plan that established the City’s vision, priorities, and goals to guide City operations, resource allocation and decision-making;
WHEREAS, the Strategic Plan goals support a community where residents and visitors feel safe, services are delivered in a fiscally responsible manner, infrastructure and amenities meet community needs, and City operations are carried out with professionalism and accountability;
WHEREAS, the goal of livability reflects the City Council’s commitment to promoting a high quality-of-life for current and future generations who call La Mesa home; WHEREAS, some community challenges and quality-of-life concerns require coordination and action beyond the authority of local government and may be addressed through state-level policy, regulation, and oversight;
WHEREAS, the City Council has identified growing and persistent challenges affecting neighborhood well-being, including impacts associated with licensed and unlicensed sober living homes, residential detox facilities, and similar residential recovery or treatment operations; WHEREAS, existing state laws and regulatory frameworks substantially limit the ability of local governments to effectively regulate, monitor, and enforce standards related to the operation, concentration, and oversight of such uses;
WHEREAS, the City Council finds that the lack of adequate state-level regulation, oversight, constrains the City’s ability to respond to community impacts, creating a need for legislative reform to better balance individual recovery needs with neighbor well-being; WHEREAS, meaningful and durable solutions to these challenges require clear, consistent, and enforceable state policy, including strengthened oversight, accountability, and enforcement mechanisms that support local governments in protecting residents, neighborhoods, and community quality of life;
WHEREAS, in 2025, the City entered into an agreement with Townsend Public Affairs (TPA) to provide legislative advocacy and grant-writing services to support the City’s goals; WHEREAS, concurrent with this reaffirmation, the City Council has directed staff to direct and transmit advocacy letters to state legislative representatives and the League of California Cities during the 2025-2026 California Legislative Session on matters affecting neighborhood well-being; and
WHEREAS, the City Council desires to clearly communicate to the community that the Strategic Plan goals remain the foundation for City decision-making, including policy development, operational priorities, and legislative advocacy.
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED by the City Council of the City of La Mesa, California, that:
1. The City Council reaffirms its commitment to the City’s Strategic Plan and its five goals:
Safe Community, Financial Sustainability, Livability, Infrastructure and Amenities, and High-Performing Organization.
2. Legislative advocacy is an appropriate and necessary tool to advance the City’s Strategic Plan goals and to address issues that impact community livability and neighborhood wellbeing.
PASSED AND ADOPTED at a Regular meeting of the City Council of the City of La Mesa, California, held the 10th day of February 2026, by the following vote, to wit:
AYES:
NOES:
ABSENT:
CERTIFICATE OF CITY CLERK
I, MEGAN WIEGELMAN, City Clerk of the City of La Mesa, California, do hereby certify the foregoing to be a true and exact copy of Resolution No. 2026- , duly passed and adopted by the City Council of said City on the date and by the vote therein recited.
MEGAN WIEGELMAN, CMC, City Clerk
(SEAL OF CITY)