June 23, 2026
Finance Department
DATE: June 23, 2026
TO: Mayor Martinez and Members of the City Council
FROM:
Emily Combs, Director of Finance
Mubeen Qader, Deputy Director of Finance
Jerry Chak, Accounting Manager
Subject:
Fiscal Year 2026-27 Appropriations Limit
FINANCIAL IMPACT: Adoption of the resolution establishes the appropriations limit for Fiscal Year 2026-27 in the amount of
$580,294,566.
PREVIOUS COUNCIL
ACTION:
None.
STATEMENT OF THE
ISSUE:
The Fiscal Year 2026-27 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 adopting the Fiscal Year 2026-27
appropriations limit for the City of Richmond pursuant to Article XIIIB of the Constitution of the State of California – Finance Department (Emily Combs 510-620-6740/
Mubeen Qader 510-412-2077).
DISCUSSION:
Article XIIIB of the California Constitution, adopted in 1979, establishes an annual appropriations limit on the amount of proceeds of taxes that local governments may appropriate. Each local jurisdiction is required to calculate and adopt this limit annually, using 1979 as the base year and adjusting the limit for changes in population and cost of living.
AGENDA
REPORT
June 23, 2026
California Revenue and Taxation Code Section 2227 requires the Department of Finance to provide local governments with the annual population percentage change.
Local jurisdictions use this factor, together with the applicable cost-of-living or per capita personal income change, to calculate the appropriations limit for the upcoming fiscal year.
Fiscal Year 2026-27 Appropriations Limit Calculation
The City’s Fiscal Year 2026-27 Appropriations Limit is calculated by applying the annual adjustment factor to the prior year’s appropriations limit, as shown below:
Calculation Step Amount/Factor
Fiscal Year 2025-26 Appropriations Limit $558,130329
Annual Adjustment Factor 1.03971 (%)
Fiscal Year 2026-27 Appropriations Limit $580,294,566
For Fiscal Year 2026-27, the appropriations limit is $580,294,566. California Government Code Section 7910 requires local governments to establish appropriations limit by resolution. Adoption of the attached resolution will approve the Fiscal Year 2026-27 appropriations limit for the City of Richmond.
DOCUMENTS ATTACHED:
Attachment 1 – Price Factor and Population Information from California Department of Finance
Attachment 2 – Resolution for Appropriations Limit for Fiscal Year 2026-27