HomeMy WebLinkAbout _ 4.10(a)--Appropriation Limit for Fiscal Year 2025-26 � � �' � � �
� � � ' � �' � � ' � ` CITY OF REDDING
REPORT TO THE CITY COUNCIL
MEETING DATE: June 17,2025 FROM: Greg Robinett, Director of
ITElVI NO. 4.10(a) Finance/City Treasurer
***APPROVED BY***
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grobinett@cityofredding.org btippin@cityofredding.org
SUBJECT: 4.10(a)--Adopt Resolution establishing the Appropriation Limit for Fiscal Year
2025-26
Recommendation
Adopt Resolution establishing the appropriation limit for Fiscal Year 2025-26 for the City of
Redding at $317,710,148.
Fiscal Impact
There is no fiscal impact from adopting an appropriatian limit.
Background/AnaZysis
The Gann Spending Limitation Initiative (Proposition 4) was appraved by the vaters of
California on the November 1979 special ballot election. This Proposition created Article XIII B
of the State Constitution, which sets forth the calculation of state and local jurisdictions' annual
appropriations limit on monies that can be spent from tax revenues. California Government Code
Section 7910 requires that each fiscal year, the governing body of the local agency must establish
the appropriations limit, by resolution, before the beginning of the following fiscal year. The
goal of Proposition 4 was to keep state and local government spending capped at 1978-791evels,
adjusted for changes in population combined with either the change in California per capita
personal income or the change in the local assessment roll associated with new non-residential
construction. Under Proposition 4, if a city ends the fiscal year having exceeded its GANN limit,
it must ret�urn the excess to taxpayers within two years.
Report to Redding City Council June 9,Z025
Re: 4.10(a)--Appropriation Limit for Fiscal Year 2025-26 Page 2
Staff has completed a calculation of the Fiscal Year 2025-26 appropriations limit for the City of
Redding(City) as follows:
Appropriation Limit 2024-25 $ 298,219,153
Percentage increases:
Per Capita Change 6.44%
Population Change .09%
Change Factor Formula
Percentage converted to ratio of change 1.0654
Appropriation Limit 2025-26 317,710.148
As noted above, the appropriation ]imit for the City for Fiscal Year 2025-26 is $317,710,148.
The City's appropriations that are subject to the limit total $80,618,747. Thus, the City is well
within the amount allowed by law.
Envi�^onmental Review
This is not a project de�ned by under the California Environmental Quality Act, and no further
action is required.
Council PrioNity/City ManageN Goals
This agenda item is a routine operational item.
Attachments
^Resolution
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
ESTABLISHING THE APPROPRIATION LIMIT FOR FISCAL YEAR 2025-
26 FOR THE CITY OF REDDING
WHEREAS, State of California Government Code Section 7910 requires that each fiscal
year the governing body of a local jurisdiction shall by resolution establish an appropriation limit;
and
WHEREAS,the Director of Finance for the City of Redding has calculated the appropriation
limit;
NOW,THEREFORE,be it resolved that the appropriation limit for the City of Redding for
fiscal year 2025-26 shall be $317,710,148.
I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of
the City Council of the City of Redding on the 17th day of June,2025,and was duly adopted at said
meeting by the following vote:
AYE: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
JACK MUNNS, Mayor
ATTEST: FORM APPROVAL:
SHARLENE TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney