Item 18 - Resolution Establishing the Appropriations Limit for FY2026-27

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Finance and Management Services www.santa-ana.org/finance Item # 18 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report June 16, 2026 TOPIC: Resolution Establishing the Appropriations Limit for FY2026-27 AGENDA TITLE Resolution Establishing the Appropriations Limit for FY2026-27 RECOMMENDED ACTION Adopt a resolution establishing the City of Santa Ana's appropriations limit for FY2026- 27, as required by state law. RESOLUTION NO. 2026-XXX entitled A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING THE APPROPRIATION LIMIT OF THE CITY OF SANTA ANA FOR FISCAL YEAR 2026-2027 GOVERNMENT CODE 484308 APPLIES: No DISCUSSION Article XIII B of the California Constitution, commonly referred to as the "Gann Limit," was approved by California voters in 1979 through Proposition 4. The Gann Limit establishes a constitutional restriction on the amount of tax proceeds that state and local governments may appropriate each fiscal year. The limit is adjusted annually based on changes in population and the cost of living to allow government spending capacity to grow in line with economic and demographic conditions. Pursuant to California Government Code Section 7910, the City is required to establish its annual appropriations limit by resolution. Adoption of the proposed resolution will establish the City's appropriations limit for Fiscal Year 2026-27 (FY26-27), and ensure compliance with State constitutional requirements. The appropriations limit calculation for FY26-27 was prepared using the growth factors provided by the California Department of Finance. Consistent with prior years, staff used the change in California per capita personal income as the cost-of-living factor and Orange County population growth as the population factor.