CITY OF SAN PABLO
FY 2026-27
Gann Appropriations Limit
& FY 2025-26 Correction
Budget, Fiscal, and Legislative Standing Committee
June 10, 2026
What is the GANN APPROPRIATIONS LIMIT?
Proposition 4 limits growth of state and local government spending to changes in personal income and population
Governments which bump up against this limit must return the “surplus” revenue to taxpayers
Gann Limit must be calculated annually and presented to the governing body for review
Annual revenue received by the City from Casino San Pablo under MSA is considered CONTRACT REVENUE and, therefore does not apply to GANN Appropriation Limit reporting
requirements
FY 2025/26 Correction
The City’s auditors (Maze & Associates) identified an arithmetic error in the adopted FY 2025/26 Gann limit during the April 2026 audit — the City’s population change factor had been entered as 2.00% instead of the correct 0.20%
Correcting the factor lowers the FY 2025/26 limit from $68,692,874 to $67,480,647 — a reduction of $1,212,227
This is a reporting-accuracy correction, not a compliance failure — proceeds of taxes of $18,203,122 used only 27.0% of the corrected limit, leaving the City well under
The correction will be adopted by a new City Council resolution (a legislative act under Gov. Code § 7910), superseding the prior resolution 2025-074
FY 2026/27 San Pablo Appropriation Limit
Population Factor: Higher of 2026/27 change in population for Contra Costa County or City of San Pablo (per the California Department of Finance)
City of San Pablo’s population change was -0.62%
Contra Costa County’s population change was -0.31%
The County figure (the higher of the two) is used
Price Factor: Higher of 2026/27 State Per Capita Income change (per the California Department of Finance) or the percentage change in assessed value for the City’s nonresidential new construction
California’s per capita personal income change factor was 4.95% Per HdL, the change in assessed value for the City’s nonresidential new construction was 0.55%
FORMULA: Multiply the corrected 2025/26 Appropriation Limit by the combined Appropriation factor; $67,480,647 × 0.9969 × 1.0495 = $70,601,394
FY 2026/27 Appropriation Limit: $70,601,394
Five-Year Trend: Limit vs. Proceeds of Taxes
Proceeds of taxes subject to the Gann limit have consistently remained well below the limit. For FY 2026/27, proceeds of $19,578,166 use about
27.7% of the $70,601,394 limit, leaving the City $51,023,228 under.
Description 2022-23 2023-24 2024-25 2025-26 2026-27
Appropriations Limit $53,959,210 $56,152,121 $62,173,149 $67,480,647 $70,601,394 Proceeds of Taxes $14,884,689 $16,881,322 $18,130,734 $18,203,122 $19,578,166 Amount Under Limit $39,074,521 $39,270,799 $44,042,415 $49,277,525 $51,023,228 % of Limit Used 27.6% 30.1% 29.2% 27.0% 27.7%
$0M
$20M
$40M
$60M
$80M
2022-23 2023-24 2024-25 2025-26 2026-27
Appropriations Limit Proceeds of Taxes
RECOMMENDATION:
1. Receive the presentation;
2. Recommend the City Council adopt the resolution approving the corrected FY 2025-26 Gann Appropriations Limit,
superseding the prior resolution; and
3. Recommend the City Council adopt the resolution approving the FY 2026-27 Gann Appropriations Limit (Article XIII B, California Constitution)
QUESTIONS?
N E X T S T E P
CITY COUNCIL
MONDAY,
JUNE 15, 2026