To: Honorable Mayor and Members of City Council
From: Donna Lee, Finance Director
Prepared By: Priscilla Wong-O’Rourke, Senior Budget Analyst
TITLE:
Title
Gann Appropriation Limits for Fiscal Year 2026/27
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution establishing the Gann appropriations limit for Fiscal Year 2026/27.
Body
DISCUSSION:
The City Council approves all City appropriations (authorizations to incur financial obligations) as a part of the process of approving and updating the budget. California Constitution Article XIIIB requires cities to establish an annual limit of maximum allowable appropriations (the “Gann Limit”) based on a formula that begins with the appropriation limit of the previous year, and considers adjustments to either City or County population and increases in either new non-residential construction or California per capita income. The details of the formula are summarized in this report and calculated as a part of the attached resolution.
Both the California per capita personal income price factor and the population percentage change factors are provided by the State Department of Finance to local jurisdictions each year. Reports that present changes in new, non-residential assessments are provided by the County of Napa. These numbers provide the basis for the factors to be used in the City’s calculation of the Gann Limit.
The table in Attachment 2 presents the ratios used to calculate the City’s 2026/27 Adjusted Appropriations limit of $687.7 million. The appropriations subject to limitation are $143.3 million, which is $544.4 million under the limit.
FINANCIAL IMPACTS:
Approval of the appropriation limits will have no financial impact on the Fiscal Year 2026/27 operations of the City.
CEQA:
Staff determined that the recommended action described in this report is not subject to CEQA, pursuant to CEQA guidelines section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution with EX A - Appropriations Limit Formula
ATCH 2 - Fiscal Year 2026/27 Tax Appropriations Limit
NOTIFICATION:
None.