HomeMy WebLinkAboutItem 5.3 Adoption of an Appropriations Limit for Fiscal Year 2026-27 Agenda Item 5.3
STAFF REPORT
CITY COUNCIL
Page 1 of 2
DATE: June 16, 2026
TO: Honorable Mayor and City Councilmembers
FROM: Colleen Tribby, City Manager
SUBJECT:
Adoption of an Appropriations Limit for Fiscal Year 2026-27
Prepared by: Darlynn Haas, Management Analyst II
EXECUTIVE SUMMARY:
The City Council will consider adopting the annual Appropriations Limit in accordance with
state law. The City of Dublin’s Appropriations Limit for Fiscal Year 2026-27 is $553,102,803,
which exceeds the City’s related appropriations by $448,328,005.
STAFF RECOMMENDATION:
Adopt the Resolution Approving an Appropriations Limit for Fiscal Year 2026-27.
FINANCIAL IMPACT:
None.
DESCRIPTION:
Each year, the City Council is required by state law to adopt an Appropriations Limit, also
known as the Gann Limit or Proposition 4 Limit, in conjunction with the annual budget process.
The Appropriations Limit caps state and local government spending on tax-funded services at
a base level, which was set with the 1978-79 fiscal year and is adjusted each year for
population growth and inflation. The Appropriations Limit’s restriction applies to appropriating
monies categorized as “Proceeds of Taxes.” The Appropriations Limit is carried forward each
year and is subject to an adjustment in accordance with a specified formula (the City has the
discretion to choose one factor from each list) that includes the following factors:
1. Change in the City of Dublin population or change in Alameda County population.
2. Change in state per capita personal income or change in “Non-residential New
Construction.”
55
Page 2 of 2
Fiscal Year 2026-27 Proposed Appropriations Limit
Staff has prepared the calculations necessary to adopt the Appropriations Limit for Fiscal Year
2026-27 in accordance with state law and with the Uniform Guidelines of the League of
California Cities. The discretionary factors selected in calculating the 2026-27 Appropriations
Limit are: (1) Change in the County population; and (2) Change in state per capita personal
income.
The first discretionary factor relates to population change. Agencies may either select the
change in the city population or county population. For Fiscal Year 2026-27, the City of Dublin
experienced a population decrease of 0.19 percent compared to a smaller decrease of 0.10
percent in Alameda County (as reported by the California Department of Finance’s Price and
Population Information). Since the County’s population change is the smaller decline, it was
selected.
The second discretionary factor relates to state per capita personal income or local assessed
valuation of “Non-residential New Construction.” According to the California Department of
Finance, the per capita personal income increased by 4.95 percent. In contrast, data from the
Alameda County Assessor showed a 1.24 percent increase attributable to Non-residential New
Construction in Fiscal Year 2025-26. Since the per capita personal income growth rate was
higher, it was selected as the second adjustment factor.
Based on the selected adjustment factors, the Appropriations Limit for Fiscal Year 2026-27 has
been calculated at $553,102,803. This reflects an applied adjustment factor of 1.0485 to the
prior year’s Appropriations Limit. The Proposed Fiscal Year 2026-27 Budget includes
$104,774,798 in appropriations subject to the Appropriations Limit, categorized as “Proceeds of
Taxes.” As a result, the appropriations remain below the allowed Appropriations Limit, with a
margin of $448,328,005.
STRATEGIC PLAN INITIATIVE:
None.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
A Public Notice was posted on June 1, 2026, stating that the factors used in calculating the
Appropriations Limit were available for public review. The notice was also displayed on the
City’s website, and the information is contained in the Proposed Budget for Fiscal Year 2026 -
27. The City Council Agenda was also posted.
ATTACHMENTS:
1) Resolution Approving an Appropriations Limit for Fiscal Year 2026-27
2) Exhibit A to the Resolution – Calculation of Fiscal Year 2026-27 Appropriations Limit
56
Attachment 1
Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 1 of 2
RESOLUTION NO. XX – 26
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF DUBLIN
APPROVING AN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2026-27
WHEREAS, state law requires that an Appropriations Limit be adopted by the City Council in
conjunction with the Annual Budget process; and
WHEREAS, Article XII B of the State of California Constitution places certain restrictions on
appropriations made by cities; and
WHEREAS, the restrictions are applicable to appropriations, which meet the definition of a
“Proceeds of Taxes;” and
WHEREAS, state law allows the option to select the factors to be used in the calculation of the
Appropriations Limit; and
WHEREAS, one of the adjustment factors the City must select between is change in: (A) City
population, or (B) Countywide population. The City has selected the change in Countywide population;
and
WHEREAS, for the second discretionary factor, the City must select between: (1) the change in
the state per capita personal income, or, (2) the change in the assessed valuation of local non-
residential new construction. The City has selected the change in the state per capita personal income;
and
WHEREAS, the calculation of the Appropriations Limit for Fiscal Year 2026-27 is described in
Exhibit A, attached hereto and by reference made a part hereof.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby
adopt the Fiscal Year 2026-27 City of Dublin Appropriations Limit as $553,102,803.
BE IT FURTHER RESOLVED that the Appropriations Limit has been calculated in accordance
with state law as is shown in Exhibit A, attached hereto.
{Signatures on the following page}
57
Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 2 of 2
PASSED, APPROVED, AND ADOPTED BY the City Council of the City of Dublin, on this 16th
day of June, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Mayor
ATTEST:
_________________________________
City Clerk
58
Attachment 2
EXHIBIT A
CALCULATION OF FISCAL YEAR 2026-27 APPROPRIATIONS LIMIT
(Based on Fiscal Year 2025-26 Appropriations Limit)
A. Selection of Optional Factors
1. Change in population – City vs. County.
Factors 1/1/2026 1/1/2025 % Decrease
a. City of Dublin 74,335 74,480 -0.19%
b. County of Alameda 1,664,649 1,666,296 -0.10%
The City selected Factor 1b. County of Alameda population change -0.10%
2. Change in s tate per capita personal income vs. City non-residential ne w
construction.
Factors % Change
a. Change in state per capita personal income 4.95%
b. Change in non-residential new construction assessed
valuation
1.24%
The City selected Factor 2a. Change in State per capita personal income 4.95%.
B. Fiscal Year 2026-27 Growth Adjustment Factor
Calculation of factor for Fiscal Year 2026-27 = X*Y = 0.9990*1.0495 = 1.0485
X = Selected Factor #1 + 100 = -0.10+100 = 0.9990
100 100
Y = Selected Factor #2 + 100 = 4.95+100 = 1.0495
100 100
C. Calculation of Appropriations Limit
Fiscal Year 2025-26 Appropriations Limit $527,518,172
Fiscal Year 2026-27 Adjustment Factor x 1.0485
Fiscal Year 2026-27 Appropriations Limit $553,102,803
59