City Council Agenda Report
August 4, 2026
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Jana Stuard, Director of Finance/City Treasurer
Jennifer Hernandez, Administrative Services Supervisor
SUBJECT: RESOLUTION NOS. 26-45 AND 26-46 TO REPEAL RESOLUTION NOS. 25-22 AND 26-34 - ADOPTION OF ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025/26 AND FISCAL YEAR 2026/27 RESPECTIVELY
Background:
The Gann Initiative, which was approved by California voters on November 6 ,1979 (Article XIIIB of the State Constitution), places limitations on the appropriations of state and local governments and further provides for appropriations limit increases for cost of living/per capita income and population changes. Under Government Code Section 7910, the City is annually required to establish and adopt by resolution its appropriations limit in conformance with the requirements of Article XIIIB of the California Constitution.
Historically, the City has calculated its annual appropriations limit using the annual inflation and population adjustment factors published by the California Department of Finance. During a review of the appropriations limit calculations for Fiscal Years 2026/27 and 2025/26, staff determined that the incorporated city population growth factor was inadvertently used instead of the Los Angeles County population growth factor. The discrepancy occurred due to a revision in the method in which the California Department of Finance presents population information, resulting in the incorrect population factor being applied.
To ensure the limits are accurate, staff recommends repealing Resolution Nos. 25-22 and 26- 34 and adopting revised appropriations limits for Fiscal Years 2025/26 and 2026/27 using the Los Angeles County population growth factor for Fiscal Year 2025/26 and the City of Norwalk population growth factor for Fiscal Year 2026/27. The proposed revisions do not affect the City's adopted budget or authorize additional expenditures, but rather ensure the appropriations limits are calculated using a consistent methodology in accordance with Article XIII B of the California.
City Council August 4, 2026
GANN Limit Updates FY 2025/26 and 2026/27 Page No. 2
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Constitution and Government Code Section 7910. A summary of the changes are included in Table 1 below.
Table 1: Summary of GANN Limit Changes
Fiscal Year Previous
Resolution
Previous
Appropriations
Limit
New Resolution
Revised
Appropriations
Limit
2025/26 25-22 $118,730,355 26-45 $118,719,235
2026/27 26-34 $124,061,348 26-46 $124,132,832
Fiscal Impact:
N/A
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
The recommended action adheres to the City’s values to be fiscally responsible, ethical and transparent in City’s stewardship; and it will further the City’s strategic plan goal (3) Create and sustain a resilient and economically prosperous City.
Recommended Action:
Staff recommend City Council:
a. adopt RESOLUTION NO. 26-45, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK REPEALING RESOLUTION 25-22 - APPROVING AND ADOPTING A REVISED ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2025/26; and b. adopt RESOLUTION NO. 26-46, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORWALK REPEALING RESOLUTION NO. 26-34 - APPROVING AND
ADOPTING A REVISED ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026/27
Attachments:
1. Resolution No. 26-45, with Exhibit A
2. Resolution No. 26-46, with Exhibit A