June 17, 2025
TO: City Council
REQUESTED BY: Erika Gomez, Finance Director
APPROVED BY: Robert A. Johnson, City Manager
SUBJECT: Appropriations Limit Fiscal Year 2025-26
RECOMMENDATION:
Staff recommends that the City Council approve and adopt Resolution No. 4080, establishing the appropriations limit from proceeds of taxes for fiscal year 2025-2026.
BACKGROUND:
The Gann Limit is a constitutional provision established under Article XIII, Section 1 of the California Constitution. It was introduced in 1979 through the passage of Proposition 4, also known as the Gann Limit Initiative. The primary objective of the Gann Limit is to control the growth of government spending by restricting appropriations made by state and local agencies.
The Gann Limit imposes a cap on appropriations from certain revenue sources, including taxes, fees, and other sources of funds collected by the City. The limit is calculated based on the previous year's appropriations limit adjusted for changes in population and inflation.
Article XIII-B of the California Constitution requires the City to adjust and adopt its appropriations limit annually. The fiscal year 2025-2026 appropriations limit has been adjusted using data furnished by the State Department of Finance. Documents showing the calculation are attached to Resolution No. 4080.
FISCAL IMPACT:
There is no fiscal impact for this item. This item is to adopt the resolution establishing the appropriations limit for fiscal year 2025-2026. The appropriations limit for the fiscal year 2025- 2026 is $81,934,129.
ATTACHMENTS:
Resolution No. 4080 - Appropriations Limit
Exhibit A