June 24, 2025
Finance Department
DATE: June 24, 2025
TO: Mayor Martinez and Members of the City Council
FROM:
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
SUBJECT:
Fiscal Year 2025-26 Appropriations Limit
FINANCIAL IMPACT: Adoption of the resolution establishes the appropriations limit for Fiscal Year 2025-26 in the amount of
$554,644,186.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Fiscal Year 2025-26 appropriations limit for the City of Richmond is required to be established and adopted
pursuant to Article XIIIB of the Constitution of the State of California.
RECOMMENDED ACTION:
ADOPT a resolution approving the Fiscal Year 2025-26
appropriations limits for the City of Richmond pursuant to Article XIIIB of the Constitution of the State of California – Finance Department (Andrea Miller 510-620-6790/
Mubeen Qader 510-412-2077).
AGENDA
REPORT
June 24, 2025
DISCUSSION:
Article XIIIB of the California Constitution, passed by California voters in 1979, establishes an annual appropriations limit on the use of tax proceeds for all municipalities. Article XIIIB requires all local jurisdictions to calculate and adopt an annual appropriations limit each fiscal year. The limitation is calculated by using appropriations of 1979 as the base year and adjusting for changes in inflation and population growth.
California Revenue and Taxation Code Section 2227 requires the California Department of Finance to transmit the annual population percentage change to local governments every year. Each local jurisdiction must use the population change factor, in conjunction with a cost-of-living change factor or per capita personal income change, to calculate its appropriations limit.
Fiscal Year (FY) 2025-26 Appropriations Limit Calculation:
FY 2024-25 Appropriation Limit $521,086,232
Per Capita Personal Income change 6.44%
Contra Costa County population change 0%
Change Factor 1.0644 x 1.0 = 1.0644 x 1.0644
FY 2025-26 Appropriation Limit $554,644,186
For Fiscal Year 2025-26, the appropriations limit is $554,644,186.
California Government Code Section 7910 requires local governments to establish an appropriations limit by resolution. Adoption of the attached resolution will approve the Fiscal Year 2025-26 appropriations limit for the City of Richmond.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution – Appropriations Limit FY 2025-26 Attachment 2 – Price Factor and Population Information from California Department of Finance