RESOLUTION R2025-__
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NAPA, STATE OF CALIFORNIA, ESTABLISHING THE GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025/26 WHEREAS, Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979; with modifications under Proposition 111, passed by the voters of California in June 1990; and implemented by California Government Code sections 7900, and following), limits increases of appropriations by governmental entities by an amount not to exceed the change in population and the change in either the California per capita income or the changed in non-residential assessed valuation due to new construction within the City (this limitation on appropriations by governmental agencies is known as the “Gann Appropriations Limit”); and WHEREAS, documentation used in the determination of the 2025/26 fiscal year appropriations limit has been available to the public prior to City Council’s determination in this matter, as required by Government Code Section 7910; and WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City staff, and any information provided during public meetings.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Napa, as follows:
The City Council hereby finds that the facts set forth in the recitals to this resolution are true and correct, and establish the factual basis for the City Council’s adoption of this resolution.
Pursuant to the appropriations limit formula set forth in California Government Code Sections 7900-7913, the City Council hereby establishes the appropriations limit for Fiscal Year 2024/25 for the City of Napa as documented in Exhibit “A,” attached hereto and incorporated here by reference.
This Resolution shall take effect immediately upon its adoption.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Napa at a public meeting of said City Council held on the 15th day of July, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST: ________________________
Tiffany Carranza
City Clerk
Approved as to form:
_________________________
Christopher Diaz
Interim City Attorney
EXHIBIT A
The calculations required by the Gann appropriation limits are set forth in Article XIIIB of the California Constitution (enacted with the passage of Proposition 4 in 1979, with modifications under Proposition 111 passed in June 1990 and implemented by California Government Code sections 7900, and following). The City’s appropriation growth rate is limited to changes in population and either the change in California per capita income or the change in the local assessment roll due to new, non-residential construction.
The formula to be used in calculating the growth rate is:
% change in population (City or County) + 100
100
times
either
% change in per capita income + 100
100
or
Change in non-residential assessments + 100
100
The resultant rate times the previous appropriation limit equals the new appropriation limit.
Both the California per capita personal income price factor and the population percentage change factors are provided by the State Department of Finance to local jurisdictions each year. Population percentage change factors estimate changes in the City’s and County’s population between January 2024 and January 2025. Reports that present changes in new, non-residential assessments are provided by the County of Napa. These numbers provide the basis for the factor to be used in the City’s calculation of the Gann Limit.
In May 2025 the State Department of Finance notified each city of the population changes and the percentage change in per capita personal income to be used in determining appropriation limits. The data provided to Napa includes the following:
Napa County population on January 1, 2025 as compared to the population of January 1, 2024 increased by 0.56%.
City of Napa population over that same period increased by 0.28%.
Per capita personal income for the State of California increased by 6.44%.
Of the factors above, the City is using the population growth factor for City of Napa and the per capital personal income increase. The factor for determining the year to year increase is computed as:
0.56 + 100
X
6.44 + 100
=
1.0704
100
100
Applying this year’s factor of 1.070361 to last year’s limit of $613,036,431, the Gann Limit for FY 2025/26 yields $656,170,067.
ATTACHMENT 1
R2025-__ Page PAGE 4 of NUMPAGES 4 July 15, 2025
ATTACHMENT 1
R2025-__ Page PAGE 1 of NUMPAGES 4 July 15, 2025