ACTION: Adopted City Council Resolution No. 2026-78, establishing the appropriations limit for Fiscal Year 2026/27. Vote: 5-0.
____________________________
Clerk/Secretary
Department: Finance Item No: C5
Prepared by: Mathew McDonald, Assistant Finance Director Meeting Date: May 26, 2026 Approved by:
Mike Sylvia, Director/Treasurer
John Conley, City Manager Agenda Location: Consent Calendar SUBJECT: ADOPTION OF THE FISCAL YEAR 2026/27 APPROPRIATION LIMIT RECOMMENDATION: Adopt City Council Resolution No. 2026- , establishing the appropriations limit for Fiscal Year 2026/27.
CORRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
PRIOR ACTION: On June 10, 2025, adopted City Council Resolution No. 2025-95, establishing the appropriations limit for Fiscal Year 2025/26 (Vote: 5-0).
See Exhibit 2 for a complete list of prior City Council actions.
STATEMENT ON THE SUBJECT: The City Council annually adopts an appropriation limit as required by Proposition 4, also known as the "Gann Limit" Initiative, approved statewide by voters in 1979. The proposition amended Article XIII-B of the California Constitution, which specifies that appropriations made by the State and local governments may increase annually based upon the combined changes in population and inflation.
The City’s current appropriations limit for Fiscal Year 2025/26 is $631,415,204. According to the California Department of Finance, as of January 1, 2026, the City’s population decreased by 0.56 percent over the prior year. During the same period, the County of San Diego population increased by 0.04 percent. In calculating the appropriation limit increase, either the change in city or county population may be used.
The inflation factor authorized for use when calculating the potential increase is either the percentage change in the California per capita personal income, or the change in the local assessment roll due to local non-residential construction. Whichever factor is greater may be used. The percentage change in the California per capita personal income increased by 4.95 percent when compared to the prior year. The amount of the change in the local assessment roll due to local non-residential construction is 1.64 percent over the prior year.
These two factors, the local non-residential construction (1.0495) and the County Population Growth (1.0004) when multiplied allow the appropriation limit to be adjusted upwards by 4.99 percent, or $31,520,121 Exhibit 3).
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
05/26/2026 C5 Page 1 of 7
MEETING DATE: MAY 26, 2026 PAGE 2
SUBJECT: ADOPTION OF THE FISCAL YEAR 2026/27 APPROPRIATION LIMIT FISCAL IMPACT: The Fiscal Year 2025/26 appropriation limit was $631,415,204. By applying the factors for population and inflation, the appropriation limit for Fiscal Year 2026/27 will be $662,935,324. This is the maximum amount of appropriations that can be funded by tax revenues. Fiscal Year 2026/27 operating revenues that are categorized as “Proceeds of Taxes” total $100,774,061 or 15.2 percent of the limit (Exhibit 4).
EXHIBITS:
1.City Council Resolution No. 2026- , establishing the appropriations limit for Fiscal Year 2026/27
2.Prior City Council Actions
3.Calculations for Allowable Growth Rate In Appropriations for Fiscal Year 2026/27 Per Article XIII-B of the California Constitution
4. 2026/27 Operating Budget Appropriations Based Upon Proceeds of Taxes 05/26/2026 C5 Page 2 of 7
00097806 1
RESOLUTION NO. 2026-
A RESOLUTION OF THE CITY COUNCIL OF THE CHARTERED CITY
OF VISTA, CALIFORNIA, ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2026/27
The City Council the City of Vista does resolve as follows:
1. Findings. The City Council hereby finds and declares the following:
A. Article XIII-B of the California Constitution was amended June 5, 1990, by Proposition 111 to change inflation and population factors that may be used by local jurisdictions in setting their appropriations limit.
B. The appropriations limit may increase annually by a factor comprised of either the change in California per capita personal income or the change in the local assessment roll due to local non-residential construction combined with the change in population within the local jurisdiction or within the county in which it is located.
C. The appropriations limit for FY 2025/26 was $631,415,204 D. The 1990-1991 appropriations limit has been recalculated from Fiscal Year 1986/87 using the new growth factors stated in Proposition 111.
E. The City has now received inflation and population data from the State Department of Finance to calculate the 2026/27 appropriations limit.
F. The growth factors used in calculating the Fiscal Year 2026/27 appropriations limit are based on the change in per capita personal income combined with the change in City population.
G. The City Council of the City of Vista intends to establish the appropriations limit for the 2026/27 Fiscal Year for the City of Vista based on the Fiscal Year 2025/26 appropriations limit adjusted by the following ratios of change:
Non-residential
Assessed Value
Growth
(Inflation Factor)
County Population
Change
(Population Factor)
Ratio of
Change Factor
(a) X (b)
1.0495 1.0004 1.0499
2. Action.
A. The appropriations limit for the City of Vista for Fiscal Year 2026/27 shall be $662,935,324 based upon the ratio of change for Fiscal Year 2025/26.
B. The Fiscal Year 2025/26 appropriations limit shall be amended when the Fiscal Year 2026/27 appropriations limit is established using the greater of the change in the local non- residential assessed value (1.64 percent) or the per capita income growth factor (4.95 percent) 05/26/2026 C5 Page 3 of 7
EXHIBIT 1
RESOLUTION NO. 2026-
CITY COUNCIL OF THE CHARTERED CITY OF VISTA
PAGE 2
00097806 1
as well as the greater of the County (increased 0.04 percent) or City (decreased 0.56 percent) population growth factor.
3. Adoption. PASSED AND ADOPTED at a meeting of the City Council of the City of Vista held on May 26, 2026, by the following vote:
AYES:
NOES:
ABSTAIN:
APPROVED AS TO FORM:
WALTER CHUNG, CITY ATTORNEY
By:
JOHN FRANKLIN, MAYOR
ATTEST:
KATHY VALDEZ, CITY CLERK
By:
APPROVED
Walter C. Chung
20260517125445
05/26/2026 C5 Page 4 of 7
EXHIBIT 2
ANNUAL ADOPTION OF THE APPROPRIATION LIMIT
PRIOR ACTIONS
On June 10, 2025, adopted City Council Resolution No. 2025-95, establishing the appropriations limit for Fiscal Year 2025/26 (Vote: 5-0).
On May 28, 2024, adopted City Council Resolution No. 2024-64, establishing the appropriations limit for Fiscal Year 2024/25 (Vote: 5-0).
On May 23, 2023, adopted City Council Resolution No. 2023-76, establishing the appropriations limit for Fiscal Year 2023/24 (Vote: 5-0).
On May 24, 2022, adopted City Council Resolution No. 2022-73, establishing the appropriations limit for Fiscal Year 2022/23 (Vote: 5-0).
On May 25, 2021, adopted City Council Resolution No. 2021-72, establishing the appropriations limit for Fiscal Year 2021/22 (Vote: 5-0).
On May 26, 2020, adopted City Council Resolution No. 2020-80, establishing the appropriations limit for Fiscal Year 2020/21 (Vote: 5-0).
On May 28, 2019, adopted City Council Resolution No. 2019-64, establishing the appropriations limit for Fiscal Year 2019/20 (Vote: 5-0).
On June 12, 2018, adopted City Council Resolution No. 2018-85, establishing the appropriations limit for Fiscal Year 2018/19 (Vote: 4-0, Rigby absent).
On June 13, 2017, adopted City Council Resolution No. 2017-75, establishing the appropriations limit for Fiscal Year 2017/18 (Vote: 5-0).
On June 14, 2016, adopted City Council Resolution No. 2016-91, establishing the appropriations limit for Fiscal Year 2016/17 (Vote: 5-0).
On June 9, 2015, adopted City Council Resolution No. 2015-95, establishing the appropriations limit for Fiscal Year 2015/16 (Vote: 5-0).
On June 10, 2014, adopted City Council Resolution No. 2014-89, establishing the appropriations limit for Fiscal Year 2014/15 (Vote: 5-0).
On June 11, 2013, adopted City Council Resolution No. 2013-84, establishing the appropriations limit for Fiscal Year 2013/14 (Vote: 5-0).
On June 12, 2012, adopted City Council Resolution No. 2012-83, establishing the appropriations limit for Fiscal Year 2012/13 (Vote: 5-0).
On June 14, 2011, adopted City Council Resolution No. 2011-99, establishing the appropriations limit for Fiscal Year 2011/12 (Vote: 5-0).
On June 22, 2010, adopted City Council Resolution No. 2010-91, establishing the appropriations limit for Fiscal Year 2010/11 (Vote: 5-0). 05/26/2026 C5 Page 5 of 7
EXHIBIT 2
CALCULATIONS FOR ALLOWABLE GROWTH RATE IN APPROPRIATIONS FOR FISCAL YEAR 2026/27 PER ARTICLE XIII-B
OF THE CALIFORNIA CONSTITUTION
Population Factor — Under the revisions implemented by Proposition 111, the City now has the choice for each year of selecting the greater of:
•Increase in City Population
or
•Increase in County Population
The factors to choose from for the 2025/26 appropriation limit calculation are as follows:
City Population
Decrease
County Population
Increase
0.56% 0.04%
Inflation Factor — Under the revisions implemented by Proposition 111, the City now has a choice for each year selecting the greater of:
•Increase in California Per Capita Income
or
•Increase in Non-residential Assessed Valuation
The factors to choose from for the 2025/26 appropriation limit calculations are as follows:
Per Capita
Personal Income
Non-residential
AV growth
4.95% 1.64%
2025/26 - Per Capita Income Growth 1.0644
-County Population Growth 1.0044 1.0691
631,415,204 6.91% 40,801,574
2026/27 - Per Capita Income Growth 1.0495
-County Population Growth 1.0004 1.0499
662,935,324 4.99% 31,520,121
05/26/2026 C5 Page 6 of 7
EXHIBIT 3
Taxes
Property Tax 39,459,816$
Sales & Use Tax 37,375,042
Cannabis Tax 5,550,000
Transient Lodging Tax 2,310,000
Business License Tax 4,385,591
Other Taxes 782,562
Sub-total: Taxes 89,863,011
Revenue from Other Agencies
Motor Vehicle In Lieu 100,326
Homeowners Relief 79,135
Investment Earnings 10,731,589
Total: 2026/27 Proceeds of Taxes 100,774,061$
2026/27 Appropriations Limit 662,935,324$
2026/27 OPERATING BUDGET APPROPRIATIONS
BASED UPON PROCEEDS OF TAXES
05/26/2026 C5 Page 7 of 7
EXHIBIT 4