TO:Andrew P. Powers, City Manager
FROM:Jaime Boscarino, Finance Director
DATE:June 23, 2026
SUBJECT: Annual Gann Appropriations Limit
RECOMMENDATION:
1. Adopt resolution approving the Annual Gann Appropriations Limit calculation setting City of Thousand Oaks’ Gann Limit at $271,744,171 for FY 2026-27.
2. Find that this action is not a project as defined under the California Environmental Quality Act.
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
No Additional Funding Requested. Minimal staff time to complete the Annual Gann Appropriations Limit calculation is included in the Adopted FY 2025-26 General Fund Budget.
BACKGROUND:
In November 1979, California voters approved Proposition 4, commonly known as the Gann Spending Limitation Initiative. Proposition 4 added Article XIII B to the California Constitution and established appropriations limits for state and local governments. Each government entity is required to annually calculate and adopt an appropriations limit.
The City established its Appropriations Limit for FY 1978-79 and for each subsequent fiscal year, except FY 1979-80, when an appropriations limit was not required. The annual calculation begins with the prior year’s appropriations limit and is adjusted using factors set by State law.
Annual Gann Appropriations Limit
June 23, 2026
Proposition 111, approved by voters in 1990, modified the calculation methodology beginning with FY 1990-91. Under current law, a government entity may select the greater of either growth in California Per Capita Income or growth in assessed valuation attributable to non-residential new construction as the inflationary factor.
For the population factor, an entity may select the greater of its own population growth or the population growth of the county in which it is located.
Proposition 111 also excluded qualified capital outlay expenditures and qualified debt service from appropriations subject to limitation. In addition, appropriations limits may be adjusted to reflect transfers of financial responsibility between governmental entities.
In FY 2021-22, California Government Code section 7903 was amended to require entities to include certain state subventions (unrestricted money received by a local agency from the state) within its appropriation limits. Any amount exceeding the appropriations limit must be reported to the California Department of Finance. The City does not have reportable state subventions for FY 2026-27.
DISCUSSION/ANALYSIS:
The FY 2026-27 Gann Appropriations Limit, calculated pursuant to Article XIII B of the California State Constitution, is $271,744,171. Appropriations subject to limitation are estimated at $104,846,097, which is substantially below the allowable limit. Gann limitation calculations for all fiscal years since FY 1982-83 are included in Attachment #1.
The annual calculation adjusts the prior year’s appropriation limit by applying both a population factor and an inflationary factor. For FY 2026-27, the County’s population factor of -0.68 percent was selected because it exceeded the City’s population change of -1.14 percent. For FY 2026-27, the California per capita personal income factor of 4.95 percent was selected because it exceeded the non- residential new construction factor of 4.68 percent.
Based on these factors, the City's FY 2026-27 Gann Appropriations Limit is $271,744,171. Estimated appropriations subject to limitation total $104,846,097, approximately 38.6 percent of the allowable limit. As a result, the City remains well within its constitutional appropriations limit. Staff recommends adoption of the resolution (Attachment #2) to approve the City’s Annual Gann Appropriations Limit calculation.
Annual Gann Appropriations Limit
June 23, 2026
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Miguel Chavez, Sr. Financial Analyst
Attachments:
Attachment #1 – Gann Limitation by Fiscal Year
Attachment #2 – Gann Resolution
FIN: 380-70\mc\H:\COMMON\Council\2026\Administration\062326 GANN Staff Rept.docx