City Council Agenda
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Memo to: |
Manteca City Council |
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From: |
Matthew Boring, Interim Finance Director |
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Prepared by: |
Lana McBroom, Budget Manager |
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Date: |
June 17, 2025 |
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Subject: |
Approval of Fiscal Year 2025-26 Gann Appropriations Limit |
Recommendation:
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Adopt a resolution approving the Fiscal Year 2025-26 Gann Appropriations Limit.
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Background:
Proposition 4, approved in 1979 and codified in Article XIII-B of the California Constitution, limits the amount of tax revenue that state and local governments can appropriate annually. The limit is based on FY 1979 levels and adjusted for population and cost-of-living changes. In Manteca, revenues subject to this limit include property taxes, sales and use taxes, business licenses, motor vehicle in-lieu fees, and transient occupancy tax.
Other revenues, such as charges for services, received by the City of Manteca are not subject to this limitation.
Each year, the California Department of Finance provides data needed to calculate a jurisdiction's Gann Appropriations Limit. When given the option, the City selects the higher of the two available growth factors, city or county population growth, to maximize its appropriations limit. For FY 2025-26, the City’s appropriations limit is $118,178,031, while revenues subject to the limit total $64,160,000, leaving an available capacity of $54,018,031. The full calculation is included in Attachment 2.
Fiscal Impact:
The amount of the budgeted available revenue is less than the calculated appropriation limit in Fiscal Year 2025-26.
There is no fiscal impact associated with this item.
Documents Attached:
1. Attachment 1 - Resolution
2. Attachment 2 - Gann Limit Calculation for Fiscal Year 2025-26