HomeMy WebLinkAbout2025-38 CC Resolution RESOLUTION NO. 2025-38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TEMECULA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2025-26
THE CITY COUNCIL OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS
FOLLOWS:
Section 1. The Appropriations Limit will be calculated based on the changes in City
population and California per capita personal income.
Section 2. The Appropriations Limit for the City of Temecula for Fiscal Year 2025-
26, attached hereto, is hereby adopted.
Section 3. The City Clerk shall certify to the adoption of this resolution and shall cause
a certified resolution to be filed in the office of the City Clerk.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula
this 27th day of May 2025.
Brenden Kalfus, Mayor
ATTEST:
Randi Johi, City Clerk
[SEAL]
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johi, City Clerk of the City of Temecula, do hereby certify that the foregoing
Resolution No. 2025-38 was duly and regularly adopted by the City Council of the City of
Temecula at a meeting thereof held on the 27th day of May, 2025, by the following vote:
AYES: 5 COUNCIL MEMBERS: Alexander, Kalfus, Rahn, Schwank,
Stewart
NOES: 0 COUNCIL MEMBERS: None
ABSTAIN: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Randi Johl, City Clerk
2
City of Temecula
Fiscal Year 2025-26
Annual Operating Budget
GANN APPROPRIATIONS LIMIT
Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit,
was approved by California voters in November 1979,and placed limits on the amount of proceeds of taxes that
state and local government agencies can receive and spend each year. For cities that incorporated after 1978-
79 (such as the City of Temecula), the voters set the initial appropriations limit at the time of incorporation.
Proposition 111 was approved by California voters in June 1990,which provided new adjustment formulas which
make the appropriations limit more responsive to local growth issues. Each year the City Council must adopt by
resolution the appropriations limit for the following year. Following is the calculation of the City's Gann
Appropriations Limit for Fiscal Year 2025-26:
Fiscal Year 2024-25 Appropriations Limits $362,489,557
City Population Growth 1.19%
Per Capita Personal Income Change 6.44%
Fiscal Year 2025-26 Appropriations Limit $390,425,308
Appropriations subject to the limit in the Fiscal Year 2025-26 Budget total $107,737,717 which is$282,687,591
less than the computed limit. Additional appropriations to the budget funded by non-tax sources such as service
charges, restricted revenues from other agencies,grants or beginning fund balances would be unaffected by the
appropriations limit. However, any supplemental appropriations funded through increased tax sources would
be subject to the appropriations limit and could not exceed the $282,687,591 variance indicated. Further, any
overall actual receipts from tax sources greater than$282,687,591 from budget estimates will result in proceeds
from taxes in excess of the City's appropriations limit, requiring refunds of the excess within the next two fiscal
years or voter approval of an increase in the City's appropriations limit. Voter approval for an increase in the
City's appropriations limit is not anticipated in the future due to the margin between the limit and tax revenue.
GANN Appropriations Limit ��� �
500,000,000
400,000,000
300,000,000
200,000,000 — — — --- — —— —
100,000,000 III 111 --
0
2021-22 2022-23 2023-24 2024 25 2025 26
■Appropriations Subject to Limit Legal Limit
Annual Operating Budget