x Establishment of a single, clearly defined Red Flag Alert Day standard encompassing fire weather, debris flow, and mudflow hazards.
x Updated and reorganized lists of designated streets, grouped by Upper Canyon, Lower Canyon, Upper and Lower Canyon, and non-Canyon specific areas, based on current Fire Department response and access planning.
The ordinance does not expand enforcement authority or introduce new penalties. Existing towing authority and misdemeanor provisions remain unchanged. Instead, Ordinance No. 1489 improves clarity, consistency, and operational effectiveness during declared Red Flag Alert Days, ensuring timely emergency vehicle access and supporting resident evacuation when necessary.
STRATEGIC PLAN RELATIONSHIP
Adoption of Ordinance No. 1489 supports the City’s Strategic Plan goal of Public Safety by improving emergency response access, enhancing evacuation readiness, and reducing confusion during high-risk fire weather and debris flow events.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute as a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be determined with certainty that it will have no impact on the environment.
FISCAL IMPACT
There is no impact to the General Fund as a result of adopting Ordinance No. 1489.
Approved by:
___________________________
Michael Bruckner
City Manager
Attachment(s):
1. Ordinance No. 1489
2. SMMC Chapter 10.52 Parking Prohibitions on Red Flag Alert Days 431894.1
ORDINANCE NO. 1489
AN ORDINANCE OF THE CITY OF SIERRA MADRE,
CALIFORNIA, AMENDING CHAPTER 10.52 (PARKING
PROHIBITIONS ON YELLOW AND RED FLAG ALERT
DAYS) OF TITLE 10 (VEHICLES AND TRAFFIC) OF THE
SIERRA MADRE MUNICIPAL CODE
RECITALS
WHEREAS, under Vehicle Code section 22507, the City is authorized to adopt an ordinance prohibiting or restricting parking vehicles on City streets; WHEREAS, Chapter 10.52 of the Sierra Madre Municipal Code was adopted to protect health, safety, and the general welfare by regulating on-street parking on designated City streets during Red Flag Alert Days; and WHEREAS, the City desires to update Chapter 10.52 to remove the reference to Yellow Flag Alert Days and update the list of designated City streets.
THEREFORE, THE CITY COUNCIL OF THE CITY OF SIERRA MADRE, CALIFORNIA, DOES ORDAIN AS FOLLOWS:
SECTION 1. Recitals. The Recitals above are true and correct and incorporated herein by this reference.
SECTION 2. Amendment. Chapter 10.52 (Parking Prohibitions on Yellow and Red Flag Alert Days) of the Sierra Madre Municipal Code is repealed in its entirety and replaced with the following:
Chapter 10.52 – PARKING PROHIBITIONS ON RED FLAG ALERT DAYS
10.52.010 Purpose of this chapter.
The purpose of this chapter is to protect the health, safety, and general welfare of the citizens of Sierra Madre by regulating on-street parking on designated city streets during days with weather conditions that pose a risk of debris, mudflows, or fire hazards.
10.52.020 Definitions.
A. On-street parking.
The stopping, standing, or parking of any vehicle on designated city streets as specified in Section 10.52.030.
431894.1
B. Red Flag Alert Day.
A condition declared by the Fire Department when weather conditions pose a heightened risk to life or property due to fire danger, debris flow, or mudflow potential. Such conditions may include, but are not limited to:
1. Extreme burning conditions are expected or ongoing; or
2. Moderate debris and mudflows may occur in multiple areas of the City; or
3. There is potential for significant debris and mudflows in specific high-risk areas.
A Los Angeles County Public Works Phase II or Phase III forecast may prompt debris and/or mudflow alerts. Authorization to declare a Red Flag Alert Day is by the Fire Chief or designee.
10.52.030 Parking prohibitions.
A. General Prohibitions.
Whenever the Fire Department determines that on-street parking on designated city streets would pose a hazard to life or property by interfering with emergency vehicle access or resident evacuation during a Red Flag Alert Day, on-street parking is prohibited.
Signs shall be installed and maintained to give notice of these prohibitions.
Such signs shall include a warning that vehicles parked in violation may be removed at the owner’s expense.
B. Designated Streets.
The following streets, or portions thereof, are subject to the parking prohibitions of this chapter:
Lower Canyon*
x Audubon Way
x Brookside Lane
x Holly Trail
x Oakdale Drive
x Sierra Court
x Sturtevant Drive
x Sunnyside Lane
x Vista Circle Drive
x Woodland Drive
x Yucca Trail
431894.1
Upper Canyon*
x Canyon Crest Drive
x Casey Road
x Churchill Glen Street
x Churchill Road
x Fern Drive
x Fern Glen
x Idlehour Lane
x Madre Lane
x Old Ranch Road
x Orange Drive
x Skyland Drive
Upper and Lower Canyon*
x Forest Lane
x Pleasant Hill Lane
Non-Canyon Specific*
x Elm Avenue
x Mount Wilson Trail
*The canyon area headings are provided for organizational purposes and do not limit the applicability of this section to the full length of any listed street.
10.52.040 Violations/penalties.
A. Removal of Vehicles.
Vehicles parked in violation of this chapter may be removed by the City. The owner is liable for the expense of removal, which constitutes a collectible debt to the City.
B. Misdemeanor Violation.
Violating this chapter is a misdemeanor punishable as set forth in Chapter 1.12 of the Sierra Madre Municipal Code.
SECTION 3. CEQA. This Ordinance does not meet the definition of a “Project” for purposes of the California Environmental Quality Act because, under 15 CCR 15378(a), a project does not include an action that does not have a direct or indirect physical change of the environment.
431894.1
SECTION 4. Severability. If any sections, subsections, subdivisions, paragraph, sentence, clause or phrase of this Ordinance or any part hereof or exhibit hereto is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this Ordinance or any part thereof or exhibit thereto. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that anyone or more sections, subsections, subdivisions, paragraph, sentences, clauses or phrases be declared invalid.
SECTION 5. Certification. Pursuant to Government Code Section 36932, the City Clerk shall certify the passage, approval, and adoption of this Ordinance by the City Council.
SECTION 6. Publication. Pursuant to Government Code Section 36933, the City Clerk shall cause this Ordinance to be published or posted.
SECTION 7. Records. Pursuant to Government Code Section 40801, proof of certification and publication shall be entered in the book of Ordinances of the City Council.
SECTION 8. Effective Date. Pursuant to Government Code Section 36937, this Ordinance shall take effect thirty days after its adoption.
PASSED, APPROVED, AND ADOPTED this __________ day of __________, 2026. __________________________
Kristine Lowe, Mayor
I HEREBY CERTIFY that the foregoing Ordinance was introduced by first reading on the 27th day of January, 2026, and duly adopted at a regular meeting held on the ___ day of ______ 2026, by the City Council of the City of Sierra Madre, California, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
___________________________
Laura Aguilar, City Clerk
Title 10 - VEHICLES AND TRAFFIC
Chapter 10.52 PARKING PROHIBITIONS ON YELLOW AND RED FLAG ALERT DAYS Sierra Madre, California, Code of Ordinances Created: 2025Ş01Ş16 11:35:35 [EST] (Supp. No. 38)
Chapter 10.52 PARKING PROHIBITIONS ON YELLOW AND RED FLAG ALERT DAYS Sections:
10.52.010 Purpose of this chapter.
The purpose of this chapter is to protect the health, safety, and general welfare of the citizens of Sierra Madre by regulating on-street parking on designated city streets during days with weather conditions that pose a risk of debris, mudflows, or fire hazards.
(Ord. No. 1284, § 1, 10-28-08)
10.52.020 Definitions.
A. On-street parking: The stopping, standing, or parking of any vehicle on designated city streets as specified in Section 10.52.030.
B. Yellow Flag Alert Day: A day determined by the fire department when weather conditions indicate that small, isolated debris and mudflows are possible in specific locations within the city. This alert is triggered by a Los Angeles County Phase I forecast.
CB. Red Flag Alert Day: A condition declared by the Fire Department when weather conditions pose a heightened risk to life or property due to fire danger, debris flow, or mudflow potential. Such conditions may include, but are not limited to:
1. When extreme burning conditions are expected or ongoing; or
2. Moderate debris and mudflows may occur in multiple areas of the city; or A day determined by the fire department when weather conditions indicate:
Moderate debris and mudflows may occur at more widespread locations within the city; or
3. There is potential exists for significant debris and mudflows across in specific high-risk areas.
1. (Los Angeles County Public Works Phase II or III forecast could prompt within the city. Thisdebris and/or mudflow alerts is triggered by a Los Angeles County Phase II or III forecast.) Authorization to declare a Red Flag Alert is by the Fire Chief or designee.D. Red Flag Fire Weather Event: A specific fire-weather alert determined by the fire department issued when extreme burning conditions are expected or ongoing. Criteria include:
1. Sustained wind averages of 15 mph or greater;
2. Relative humidity of 25% or lower;
3. Temperatures exceeding 75°F; and
Formatted: Indent: Left: 0.25"
Commented [AG1]: Why doesn’t this paragraph have
sub-paragraphs like the ones below?
Formatted: Numbered + Level: 1 + Numbering Style: 1,
2, 3, … + Start at: 1 + Alignment: Left + Aligned at:
0.25" + Indent at: 0.5"
Formatted: Indent: Left: 0.5", No bullets or numbering
Formatted: Font: Italic
Formatted: Font: Italic
Formatted: Font: Italic
Commented [AG2]: Should this sentence be part of the
second sub-paragraph?
Formatted: Font: Italic
Formatted: Font: Italic
Created: 2025Ş01Ş16 11:35:35 [EST]
(Supp. No. 38)
4. Additional factors such as dry lightning or unstable air.
The fire chief or their designee is authorized to declare any of these alerts or events. (Ord. No. 1284, § 1, 10-28-08)
10.52.030 Parking prohibitions.
A. General Prohibitions:
1. Whenever the fire department determines that on-street parking on designated city streets would pose a hazard to life or property by interfering with emergency vehicle access or resident evacuation during a Yellow Flag Alert Day, Red Flag Alert Day, or Red Flag Fire Weather Event, on-street parking is prohibited.
2. Signs shall be installed and maintained to give notice of these prohibitions. Such signs must shall include a warning that vehicles parked in violation may be removed at the owner’s expense.
B. Designated Streets: The following streets, or portions thereof, are subject to these prohibitions:
Lower Canyon*
1. Audubon Way
2. Brookside Lane
3. Holly Trail
4. Oakdale Drive
5. Sierra Court
6. Sturtevant Drive
7. Sunnyside Lane
8. Vista Circle Drive
9. Woodland Drive
10. Yucca Trail
Upper Canyon*
11. Canyon Crest Drive
12. Casey Road
13. Churchill Glen Street
14. Churchill Road
15. Fern Drive
16. Fern Glen
17. Idlehour Lane
18. Madre Lane
19. Old Ranch Road
Commented [AG3]: This is not a definition
Created: 2025Ş01Ş16 11:35:35 [EST]
(Supp. No. 38)
20. Orange Drive
21. Skyland Drive
Upper and Lower Canyon*
22. Forest Lane
23. Pleasant Hill Lane
Non-Canyon Specific*
24. Elm Avenue
25. Mount Wilson Trail
*The canyon area headings are provided for organizational purposes and do not limit the applicability of this section to the full length of any listed street.
1. Mount Wilson Trail
2. Churchill Road
3. Skyland Drive
4. Fern Glen
5. Fern Drive
6. Idle Hour Lane
7. Canyon Crest Drive
8. Orange Drive
9. Woodland Drive
10. Brookside Lane
11. Sunnyside Lane
12. Yucca Trail
13. Holly Trail
14. Sturtevant Drive
15. Elm Avenue
(Ord. No. 1284, § 1, 10-28-08; Ord. No. 1286, § 1, 1-10-09; Ord. No. 1397-U, § 3, 1-9-18) Formatted: No bullets or numbering
Formatted: Font: Italic
Formatted: Indent: Left: 0.25", No bullets or
numbering
Created: 2025Ş01Ş16 11:35:35 [EST]
(Supp. No. 38)
10.52.040 Violations/penalties.
A. Removal of Vehicles: Vehicles parked in violation of this chapter may be removed by the Ccity. The owner is liable for the expense of removal, which constitutes a collectible debt to the cCity.
B. Misdemeanor Violation: Violating this chapter is a misdemeanor punishable as set forth in Chapter 1.12 of the Sierra Madre Municipal Code.
(Ord. No. 1284, § 1, 10-28-08)
Title 10 - VEHICLES AND TRAFFIC
Chapter 10.52 PARKING PROHIBITIONS ON RED FLAG ALERT DAYS Sierra Madre, California, Code of Ordinances Created: 2025-01-16 11:35:35 [EST] (Supp. No. 38)
Chapter 10.52 PARKING PROHIBITIONS ON RED FLAG ALERT DAYS Sections:
10.52.010 Purpose of this chapter.
The purpose of this chapter is to protect the health, safety, and general welfare of the citizens of Sierra Madre by regulating on-street parking on designated city streets during days with weather conditions that pose a risk of debris, mudflows, or fire hazards.
(Ord. No. 1284, § 1, 10-28-08)
10.52.020 Definitions.
A. On-street parking: The stopping, standing, or parking of any vehicle on designated city streets as specified in Section 10.52.030.
B. Red Flag Alert Day: A condition declared by the Fire Department when weather conditions pose a heightened risk to life or property due to fire danger, debris flow, or mudflow potential. Such conditions may include, but are not limited to:
1. When extreme burning conditions are expected or ongoing; or
2. Moderate debris and mudflows may occur in multiple areas of the city; or
3. There is potential for significant debris and mudflows in specific high-risk areas. (Los Angeles County Public Works Phase II or III forecast could prompt debris and/or mudflow alerts.) Authorization to declare a Red Flag Alert is by the Fire Chief or designee. (Ord. No. 1284, § 1, 10-28-08)
10.52.030 Parking prohibitions.
A. General Prohibitions:
1. Whenever the fire department determines that on-street parking on designated city streets would pose a hazard to life or property by interfering with emergency vehicle access or resident evacuation during a Red Flag Alert Day on-street parking is prohibited.
2. Signs shall be installed and maintained to give notice of these prohibitions. Such signs shall include a warning that vehicles parked in violation may be removed at the owner’s expense.
B. Designated Streets: The following streets, or portions thereof, are subject to these prohibitions:
Created: 2025-01-16 11:35:35 [EST]
(Supp. No. 38)
Lower Canyon*
1. Audubon Way
2. Brookside Lane
3. Holly Trail
4. Oakdale Drive
5. Sierra Court
6. Sturtevant Drive
7. Sunnyside Lane
8. Vista Circle Drive
9. Woodland Drive
10. Yucca Trail
Upper Canyon*
11. Canyon Crest Drive
12. Casey Road
13. Churchill Glen Street
14. Churchill Road
15. Fern Drive
16. Fern Glen
17. Idlehour Lane
18. Madre Lane
19. Old Ranch Road
20. Orange Drive
21. Skyland Drive
Upper and Lower Canyon*
22. Forest Lane
23. Pleasant Hill Lane
Non-Canyon Specific*
24. Elm Avenue
25. Mount Wilson Trail
*The canyon area headings are provided for organizational purposes and do not limit the applicability of this section to the full length of any listed street. (Ord. No. 1284, § 1, 10-28-08; Ord. No. 1286, § 1, 1-10-09; Ord. No. 1397-U, § 3, 1-9-18) Created: 2025-01-16 11:35:35 [EST]
(Supp. No. 38)
10.52.040 Violations/penalties.
A. Removal of Vehicles: Vehicles parked in violation of this chapter may be removed by the City. The owner is liable for the expense of removal, which constitutes a collectible debt to the City.
B. Misdemeanor Violation: Violating this chapter is a misdemeanor punishable as set forth in Chapter 1.12 of the Sierra Madre Municipal Code.
(Ord. No. 1284, § 1, 10-28-08)
CITY OF
SIERRA MADRE STAFF REPORT
CITY MANAGER’S OFFICE
DATE: January 27, 2026
TO: Honorable Mayor and City Council
FROM: Michael Bruckner, City Manager
SUBJECT: Report, Discussion, and Direction on a Proposed Gann Appropriations Limit Increase Ballot Measure at the June 2, 2026, Statewide Primary Election
RECOMMENDATION
It is recommended that the City Council provide direction regarding the placement of a Gann Appropriations Limit Increase Ballot Measure at the June 2, 2026, Statewide Primary Election.
SUMMARY
As part of the FY 2025–26 budget development process, the City identified that it is approaching its calculated Gann Appropriations Limit (“Gann Limit”) under Article XIII B of the California Constitution. While the City has remained in compliance over the past five fiscal years, the available margin has narrowed significantly and is projected to remain constrained in the foreseeable future.
To maintain fiscal flexibility and avoid the risk of exceeding the constitutional appropriations cap, the City Council may seek voter authorization to temporarily increase the City’s Gann Limit. Such authorization does not impose new taxes or increase existing tax rates; rather, it allows the City to appropriate and spend revenues it already lawfully receives.
If a city exceeds its Gann Limit, the California Constitution requires corrective action, which may include mandatory refunds of excess revenues or reductions in appropriations. These outcomes can constrain service delivery, disrupt capital planning, and limit the City’s ability to respond to emerging community needs. As a result, cities approaching the Gann Limit often pursue proactive voter authorization to temporarily increase the appropriations ceiling.
This report provides background on the Gann Limit, outlines the City’s current and projected compliance status, and presents options for City Council consideration.
Report, Discussion, and Direction on a Gann Limit Increase Ballot Measure January 27, 2026
DISCUSSION & ANALYSIS
Background
The Gann Appropriations Limit is a provision of the California Constitution (Article XIII B), adopted by voters in 1979, that restricts the amount of proceeds of taxes a city may appropriate each fiscal year. The intent of the limit is to ensure that government spending grows in proportion to changes in population and the cost of living, rather than expanding more rapidly than the community’s ability to support it.
Each year, the City calculates its appropriations limit by applying a statutory growth factor based on population change and either inflation or per capita personal income to a base-year amount.
The limit applies only to appropriations of certain tax proceeds and does not restrict total revenues, reserves, or many non-tax funding sources such as grants, service charges, and enterprise revenues. The City Council adopts the calculated limit annually as part of the budget process.
FY 2026 Gann Limit
As part of the FY 2025–26 budget process, the City identified that it was approaching its calculated Gann Limit. Over the past five fiscal years, the City has remained in compliance with the Gann Limit; however, the margin between appropriations subject to the limit and the maximum allowable amount has narrowed considerably.
The apparent increase in the FY 205-26 appropriations limit is largely attributable to the inclusion of approximately $900,000 in one-time General Fund capital expenditures for improvements at $0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
FY 2022 FY 2023 FY 2024 FY 2025 FY 2026
Gann Limit Calculation
Adopted Limit Adjusted Limit
Report, Discussion, and Direction on a Gann Limit Increase Ballot Measure January 27, 2026
the Sierra Madre Community Center (YMCA), which can be used as an exclusion against the allowable limit. Had these one-time costs not been included in the adopted calculation, for analytical purposes, the adjusted calculation shows that the City would be approximately $420,702 under the Gann Limit in FY 2025-26.
Table 1: Historical Gann Limit
Gann Limit Projections
To evaluate the City’s longer-term exposure to the Gann Limit, a five-year projection was created using the City’s adjusted FY 2025–26 limit as the baseline. Because future population and inflation factors are not yet published by the State Department of Finance, the projection relies on conservative, industry-standard assumptions, including flat population growth (a historical pattern for Sierra Madre) and a 2.5 percent annual growth factor consistent with long-term inflation trends.
Under these assumptions, the City’s Gann Limit is projected to increase from approximately $14.6 million in FY 2025–26 to approximately $16.1 million by FY 2029–30, representing cumulative growth of roughly $1.5 million.
Table 2: Scenario A - Baseline Forecast
Projected appropriations subject to the limit were modeled using conservative assumptions for ongoing cost drivers. Under a baseline scenario assuming 4.0 percent annual growth in taxfunded appropriations, the City is projected to reach the Gann Limit by FY 2028–29 (Table 2).
Under a stress-test scenario assuming higher cost growth of approximately 5.5 percent, the City could exceed the limit as early as FY 2027–28. It is important to note that the City’s new General Fund forecast identified a historical annual average growth rate (AAGR) of 7.0 percent in expenses.
Fiscal Year Gann Limit Appropriations Subject to Limit Available Margin Margin % 2021-22 $ 11,984,457 $ 9,905,422 $ 2,079,035 17.3%
2022-23 $ 12,778,436 $ 11,516,873 $ 1,261,563 9.9%
2023-24 $ 13,237,698 $ 11,932,356 $ 1,305,342 9.9%
2024-25 $ 13,696,327 $ 13,586,283 $ 110,044 0.8%
2025-26 Adopted $ 14,622,105 $ 13,301,403 $ 1,320,702 9.0% 2025-26 Adjusted $ 14,622,105 $ 14,201,403 $ 420,702 2.9% Fiscal Year Gann Limit Growth @ 2.5% Scenario A: Appropriations Growth @ 4.0% Margin (A) 2025-26 Base Year $ 14,622,105 $ 14,201,403 $ 420,702
2026-27 $ 14,987,658 $ 14,769,299 $ 218,359
2027-28 $ 15,362,349 $ 15,360,471 $ 1,878
2028-29 $ 15,746,258 $ 15,974,890 $ (228,632)
2029-30 $ 16,139,464 $ 16,613,485 $ (474,021)
Report, Discussion, and Direction on a Gann Limit Increase Ballot Measure January 27, 2026
Table 3: Scenario B – Stress Test @ 5.0 % Growth
Table 3: Scenario C – Stress Test @ 5.5 % Growth
These projections demonstrate that, absent voter authorization, the City faces a material risk of exceeding its constitutional appropriations limit within the next two to three fiscal years, even without significant service expansion or new programs. Under the stress test Scenario C (Table 3), in FY 2029-30, the City will exceed the limit by a rate of at least 9% in the final year of the fouryear period [(16,139,464 – 17,591,816 = -1,452,352) / 16,139,464 = -0.8998 (-9%)].
In determining the appropriate amount of a proposed Gann Limit increase, a structured, nonarbitrary methodology grounded in conservative financial forecasting and risk management principles was applied. The objective was to identify sufficient appropriations capacity to accommodate normal economic variability and unavoidable cost pressures, without enabling service expansion or committing the City to permanent structural growth.
To align the proposed Gann Limit increase with the City’s conservative General Fund financial forecast, a structural mismatch of approximately 4.0 percent per year between the growth of appropriations subject to the limit and the constitutional growth factor was assumed. This assumption reflects ongoing cost pressures associated with maintaining existing service levels, including labor, pension, healthcare, and routine capital expenditures funded with tax proceeds.
Over a four-year authorization period, a 4.0 percent annual structural mismatch equates to a cumulative capacity need of approximately 16.0 percent. Based on the City’s current appropriations limit of approximately $15.0 million, staff recommends increasing the Gann Appropriations Limit by 16.0 percent, or approximately $2.4 million. This amount represents the projected peak exceedance during the authorization period, plus a modest contingency buffer, and is intended to provide fiscal stability without limiting modest service expansion or creating a permanent increase to the City’s spending authority.
Fiscal Year Gann Limit Growth @ 2.5% Scenario B: Appropriations Growth @ 5.0% Margin (B) 2025-26 Base Year $ 14,622,105 $ 14,201,403 $ 420,702
2026-27 $ 14,987,658 $ 14,911,473 $ 76,185
2027-28 $ 15,362,349 $ 15,656,847 $ (294,498)
2028-29 $ 15,746,258 $ 16,439,690 $ (693,432)
2029-30 $ 16,139,464 $ 17,261,675 $(1,122,211)
Fiscal Year Gann Limit Growth @ 2.5% Scenario C: Appropriations Growth @ 5.5% Margin (C) 2025-26 Base Year $ 14,622,105 $ 14,201,403 $ 420,702
2026-27 $ 14,987,658 $ 14,982,380 $ 5,278
2027-28 $ 15,362,349 $ 15,806,411 $ (444,062)
2028-29 $ 15,746,258 $ 16,674,764 $ (928,506)
2029-30 $ 16,139,464 $ 17,591,816 $(1,452,352)
Report, Discussion, and Direction on a Gann Limit Increase Ballot Measure January 27, 2026
Gann Limit Ballot Measure
When a city approaches or risks exceeding its Gann Limit, Article XIII B allows the city to seek voter approval to increase the appropriations limit. It is important to note that a Gann Limit increase:
• Does not authorize new taxes;
• Does not change existing tax rates; and
• Allows the City to appropriate and spend revenues that are otherwise lawfully received but would be constrained by the constitutional spending cap.
If approved, the measure establishes a higher appropriations ceiling for the city during the authorized period, allowing continued use of existing revenues for public services, capital investments, and operational needs, while maintaining full compliance with constitutional requirements.
Under state law and prevailing practice, Gann Limit increases are typically structured as temporary authorizations, most commonly for a four-year period. At the conclusion of the authorized term, the appropriations limit automatically reverts to the level that would have applied absent voter approval, adjusted only by the standard annual growth factors. Continued authority beyond that period requires subsequent voter approval every four years.
The City Clerk’s Office contacted Los Angeles County for a cost estimate for placing a ballot measure at the June 2, 2026, statewide primary. The County estimates that the cost of the election for Sierra Madre would be approximately $60,000. If the City Council chooses to proceed with placement, a supplemental budget request will be included with the FY 2025-26 midyear budget request in February. The deadline to place a measure on the ballot for the June 2026 statewide primary is March 6, 2026.
Therefore, it is recommended that the City Council consider placing a Gann Limit increase measure on the June 2026 statewide primary election ballot. A statewide election provides higher voter turnout and lower incremental election costs compared to a standalone municipal election. Placement on the June 2026 statewide primary ballot would also allow sufficient time for public outreach, voter education, and financial planning.
STRATEGIC PLAN RELATIONSHIP
The proposed Gann Appropriations Limit Increase Ballot Measure is consistent with Goal #2- Build on Fiscal Stability, Strategy OS 2.2 Develop and Maintain Long-Term Financial Planning.
Report, Discussion, and Direction on a Gann Limit Increase Ballot Measure January 27, 2026
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), based on Section 15061(b)(3) of the CEQA Guidelines, as it can be determined with certainty that it will have no impact on the environment.
FISCAL IMPACT
The cost to conduct the June statewide primary election is estimated at $60,000. Additional funding may be necessary to conduct voter education on the Gann limit and will be requested with the FY 2025-26 midyear budget request.
Approved by:
___________________________
Michael Bruckner
City Manager