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 2026/27
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ABSTRACT
The approval of the Gann Appropriations Limit for Fiscal Year 2026/27 is required by the California State Constitution to ensure that municipalities comply with state law and do not exceed constitutionally mandated limits tied to population growth, new non-residential construction, and inflation.
RECOMMENDATION
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Adopt Resolution No. 26-4950, entitled: A Resolution of the City Council of the City of Murrieta, California, Approving the Gann Appropriations Limit for Fiscal Year 2026/27.
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PRIOR ACTION/VOTE
On June 17, 2025, the City Council adopted Resolution No. 25-4845, approving the Appropriations Limit for Fiscal Year 2025/26 (Vote: 5-0).
STRATEGIC ALIGNMENT
The City Council's goal of maintaining a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency is associated with this administrative priority.
DISCUSSION
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 (2) annual inflation factors and two (2) population growth factors for the calculation of the appropriations limit. The base year of appropriated tax proceeds is Fiscal Year (FY) 1978/79 and is adjusted annually using a ratio of the changes in population, inflation, and/or the changes in non-residential construction. ...
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