TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: RN Mendoza, Financial Analyst
SUBJECT:
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Approval of Gann Appropriations Limit for Fiscal Year 2025/26
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RECOMMENDATION
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Adopt Resolution No. 25-4845 entitled: A Resolution of the City Council of the City of Murrieta, California, Approving the Gann Appropriations Limit for Fiscal Year 2025/26.
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PRIOR ACTION/VOTE
On June 4, 2024, the City Council adopted Resolution No. 24-4742, approving the Appropriations Limit for Fiscal Year 2024/25 (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
BACKGROUND
Article XIII-B of the California State Constitution, commonly referred to as the Gann Initiative or Gann Appropriations Limit, was adopted by California voters on November 6, 1979, to place limits on the amount of tax proceeds that can be spent by governmental entities. Subsequently, on June 5, 1990, California voters approved the Traffic Congestion Relief and Spending Limitation Act (Proposition 111), which made various amendments to Article XIII-B. As a result of Proposition 111, the City may choose between two annual inflation factors and two population growth factors for the calculation of the appropriations limit. The base year of appropriated tax proceeds is 1978/79, which is adjusted annually using a ratio of the changes in population, inflation, and/or the changes in non-residential construction. For cities like Murrieta, which incorporated after 1978/79, the initial appropriations limit is set by voters at the time of incorporation. Murrieta voters approved an appropriations limit of $15,000,000, at the time of the incorporation election on November 6, 1990. This amount increases annually to keep up with inflation.
The California Department of Finance (DOF) provides the change in the California Per...
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