DATE:
June 23, 2026
CATEGORY:
Consent
DEPT.:
Finance and Administrative Services
TITLE: Annual Appropriations Limit for Fiscal
Year 2026-27
RECOMMENDATION
Adopt a Resolution of the City Council of the City of Mountain View Establishing the Fiscal Year 2026-27 Appropriations Limit, to be read in title only, further reading waived (Attachment 1 to the Council report).
BACKGROUND
In 1979, the voters of the State of California passed Proposition 4, the Gann Spending Limit Initiative. The initiative establishes and defines annual appropriation limits for state and local government entities and requires that the City of Mountain View (City) adopt an appropriations limit annually. This calculation is intended to limit the annual growth in tax revenues used to fund governmental expenditures in California. Article XIIIB was changed with the passage of Proposition 111 on the June 1990 ballot. These changes permit greater flexibility with regard to annually calculating increases in the appropriations limit (Gann Limit or Limit) by allowing additional growth factors to be used. The initiative provides for annual adjustments for changes in population (for the City or County, whichever is greater), and either the statewide percentage change in per-capita personal income or percentage change in assessed valuation attributable to growth in nonresidential new construction. The factors permitting the maximum allowable increase in the appropriations limit are chosen for the calculation each fiscal year.
Pursuant to California Government Code Section 7910(a), the governing body of each local jurisdiction must establish the appropriations limit by resolution at a regularly scheduled or noticed special meeting and the documentation used to determine the appropriations limit must be made available to the public at least 15 days prior to the meeting. The documentation used to determine Mountain View’s Fiscal Year 2026-27 appropriations limit was posted on the City’s website on May 29, 2026. The calculation is also available in the Fiscal Year 2026 -27 Recommended Budget document. Both are available at www.mountainview.gov/our- city/departments/finance-and-administrative-services/budget-and-analysis/fiscal-year-2026- 27-recommended-budget.
Annual Appropriations Limit for Fiscal Year 2026-27
June 23, 2026
ANALYSIS
The Fiscal Year 2025 -26 Adopted Limit is $403,246,330. The recommended Limit for Fiscal Year 2026-27 is $430,951,712. The increase from Fiscal Year 2025 -26 is primarily due to the percentage change of 4.95% in statewide per -capita income over prior year. The resolution displays the calculation utilized to arrive at this amount.
The recommended appropriations subject to the limitation for Fiscal Year 2026 -27 are $155,321,387, which is well below the calculated recommended legal Limit above.
FISCAL IMPACT
There is no direct fiscal impact associated with adopting the recommended appropriations limit.
The City’s Fiscal Year 2026 -27 appropriations subject to limitation are well below the proposed limit.
LEVINE ACT
California Government Code Section 84308 (also known as the Levine Act) prohibits city officials from participating in any proceeding involving a “license, permit, or other entitlement for use” if the official has received a campaign contribution exceeding $500 from a party, participant, or agent of a party or participant within the last 12 months. The Levine Act is intended to prevent financial influence on decisions that affect specific, identifiable persons or participants. For more information see the Fair Political Practices Commission website: www.fppc.ca.gov/learn/pay-to- play-limits-and-prohibitions.html
Please see below for information about whether the recommended action for this agenda item is subject to or exempt from the Levine Act.
EXEMPT FROM THE LEVINE ACT
☒ General policy and legislative actions
ALTERNATIVES
1. Establish the Fiscal Year 2026 -27 appropriations limit using other allowable adjustment factors.
2. Establish the Fiscal Year 2026 -27 appropriations limit with no increase from Fiscal Year 2025-26.
Annual Appropriations Limit for Fiscal Year 2026-27
June 23, 2026
PUBLIC NOTICING—Agenda posting and copy on website.
Prepared by:
Ann Trinh
Senior Financial Analyst
Grace Zheng
Assistant Finance and Administrative
Services Director
Approved by:
Derek Rampone
Finance and Administrative
Services Director
Arn Andrews
Assistant City Manager
Attachments: 1. Resolution Establishing the Fiscal Year 2026-27 Appropriations Limit
2. Appropriations Limit Calculation