AGENDA TITLE:
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Adopt a Resolution Amending the Fiscal Year 2025/26 and 2026/27 Appropriations Spending Limit (IS-FIN)
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MEETING DATE:
August 19, 2026
PREPARED BY:
Jennelle Baker-Bechthold, Budget Manager
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RECOMMENDED ACTION:
Adopt a resolution amending the Fiscal Year (FY) 2025/26 and 2026/27 Appropriations Spending Limit.
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BACKGROUND INFORMATION:
Article XIII B of the California Constitution requires local governments to establish an annual appropriation spending limit, commonly referred to as the "Gann Limit." The spending limit is calculated using a formula prescribed by State law that incorporates population and inflation factors and serves as a constitutional limit on the amount of proceeds of taxes that may be appropriated each fiscal year.
On June 4, 2025 and June 17, 2026, the City Council adopted the FY 2025/26 and FY 2026/27 Budgets, including the appropriations spending limit. Since adoption, staff identified a small administrative error in the calculation used to determine the adopted spending limit affecting both years due to the compounding nature of the appropriations limit.
Staff has recalculated the appropriations spending limit using the appropriate State-provided adjustment factors and confirmed the revised calculation. The correction does not impact the City's compliance with Article XIII B of the California Constitution. Even with the revised calculation, the City of Lodi's appropriations remain well below the constitutional appropriations spending limit, providing a substantial margin between the City's appropriations subject to limitation and the maximum amount permitted by law.
This amendment is administrative in nature and does not affect the City's adopted budget, authorize additional expenditures, or affect any existing appropriations. The correction simply updates the appropriations spending limit to reflect the accurate calculation required under Article XIII B of the California Constit...
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