City of Piedmont
COUNCIL AGENDA REPORT
DATE: November 17, 2025
TO: Mayor and Council
FROM: Rosanna Bayon Moore, City Administrator
SUBJECT: Correction to the FY2025-26 Appropriations Limit ______________________________________________________________________________
RECOMMENDATION
Adopt the attached resolution correcting the City’s FY 2025–26 Appropriations Limit from $34,809,985 to $34,976,504 to reflect the accurate calculation in accordance with Article XIII B of the California Constitution.
BACKGROUND
Each year, the City Council establishes an appropriations limit - commonly referred to as the “Gann Limit” - as required by Article XIII B of the California Constitution and Government Code Section 7910. This constitutional provision restricts the amount of tax-generated revenue that cities may appropriate each fiscal year. The limit is based on FY 1978–79 appropriations and adjusted annually for population growth and per capita personal income (or other approved indices) in accordance with State law and Department of Finance guidelines.
On June 16, 2025, the City Council adopted the FY 2025–26 Budget via Resolution No. 28- 2025, establishing the appropriations limit at $34,809,985, following public notice of the availability of the documentation used in its determination, in accordance with Section 7910 of the Government Code and Article XIII B of the California Constitution, as amended by Proposition 111 and Senate Bill 88.
Following review of FY2024-25 by the City’s independent auditors, a minor calculation error was identified in the application of the adjustment factors. The corrected limit is $34,976,504, an increase of $166,519 from the adopted figure. Detailed calculation is provided in Attachment B.
The City’s FY 2025–26 appropriations subject to the limit total is $33,319,800, which remains below both the originally adopted and corrected limits. Therefore, this correction does not affect compliance with Article XIII B or the adopted budget. The City remains fully compliant with all State requirements.
This action is administrative in nature and ensures the City’s official record accurately reflects the correct limit calculation. Adoption of the corrected amount will provide a proper base for the FY 2026–27 Gann Limit determination.
FISCAL IMPACT
There is no fiscal impact resulting from this correction. The change affects only the reported limit figure and not actual appropriations or expenditures.
By: Kiran Bawa, Finance Director
Attachments:
A. Draft Resolution Correcting the FY2025-26 Appropriations Limit B. FY 2025–26 Gann Limit Calculation Worksheet
Agenda Report Page 2
Attachment A
CITY OF PIEDMONT
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PIEDMONTT CORRECTING THE FY 2025–26 APPROPRIATIONS LIMIT (GANN LIMIT) WHEREAS, Article XIII B of the California Constitution and Government Code Section 7910 requires the City Council to annually establish, by resolution, an appropriations limit for the City; and
WHEREAS, on June 16, 2025, the City Council adopted Resolution No. 28-2025 establishing the Fiscal Year 2025–26 appropriations limit at $34,809,985 using the population growth for the County of Alameda and the California Per Capita Personal Income growth factor; and
WHEREAS, during the course of the FY 2024–25 financial audit, the City’s independent auditors identified a clerical error in the calculation worksheet resulting in a $166,519 understatement of the appropriations limit; and
WHEREAS, after correction, the City’s appropriations limit for FY 2025–26 is properly stated as $34,976,504; and
WHEREAS, the City’s appropriations subject to the limit total is $33,319,800, which is below both the previously adopted and corrected limits, and the City therefore remains in full compliance with Article XIII B requirements;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Piedmont hereby corrects the FY 2025–26 appropriations limit to $34,976,504, and directs that this corrected figure be reflected in the City’s financial records and used as the base for future appropriations limit calculations.
Agenda Report Page 3
Attachment A
I certify that the foregoing resolution was passed and adopted at a regular meeting of the Piedmont City Council on November 17, 2025, by the following vote:
Ayes:
Noes:
Absent/Abstain:
Attest: ______________________________
Anna M. Brown, City Clerk
Agenda Report Page 4
Attachment B
SCHEDULE 1
2025-26 Appropriation Limit 34,976,504
schedule 2
Total Appropriation 2025-26
Operation
ADMINISTRATION & COMMUNICATIONS 5,503,531
PUBLIC WORKS 4,953,391
PLANNING & BUILDING 2,521,416
RECREATION 4,278,028
POLICE 9,217,073
FIRE 9,016,538
NON-DEPARTMENTAL 6,043,380 41,533,357
Other & Capital Projects
Athletic Facility Preservation 42,000
COPS & Juvenile Officer Grant Fun 319,000
Community Development Projects 11,200
Equipment Replacement 1,692,697
CIP and Facility Maintenance Fund 10,439,611
Gas Tax 544,000
Measure D 21,500
Sewer Projects 6,889,355
Aquatics Project and Bond 7,195,724
Streets Projects 3,175,000 30,330,087 71,863,444
Less:
Non-Proceeds of Taxes 18,308,281
Appropriated Reserves 20,235,363 38,543,644
2025-26 Appropriations Subject to Limit 33,319,800
schedule 3
2025-26 Amount below Appropriation Ceiling 1,656,704
CITY OF PIEDMONT
Calculation of Appropriation Subject to Limit
Proposed Budget
Fiscal Year Ended June 30, 2026
Agenda Report Page 5
Attachment B
SCHEDULE 2
2025-26
2025-26
Per Capita - State 6.44+100 = 1.0644
100
Population - County 0.31 + 100 = 1.0031
100
Calculation of factor for 2025-26 1.06440 x 1.0031 1.0677 2024-25 Appropriation Limit
2024-25 Limit 32,425,416 $ 29,735,416
Muni Tax Voter Approved 2,690,000
32,425,416
2025-26 Appropriation Limit
2025-26 Limit 29,735,416 x 1.0677 = $ 31,748,504
Muni Tax Voter Proposed 3,228,000
Total 2024-25 Appropriation Limit 34,976,504
Cumulative Growth Rate For
Information Provided by State Department of Finance
CITY OF PIEDMONT
Computation of Appropriation Limitation
Agenda Report Page 6