City Council

4. FISCAL YEAR 2026-27 APPROPRIATION LIMIT – F2M26-17, N2M26-65, R2M26-16,\nM2M26-82\nThis is the time and place set by Notice No. N2M26-65 for the City Council to hold a public\nhearing on the Fiscal Year 2026-27 Appropriation Limit. Proposition XIII B (Gann Initiative)\nprohibits local agencies from exceeding their 1978-79 fiscal year appropriations after\nallowing for cost-of-living (CPI) and population changes which are certified by the State\nDepartment of Finance. Proposition 111 allows the City to adjust its annual limits for the\nfollowing factors, subject to approval by the City Council:\na) Either the California Per Capita Income or the percentage change in local\nassessment roll from the preceding year due to the addition of local nonresidential\nconstruction in the City.\nb) Either the City’s own population growth or the population growth of the entire\ncounty.\nGovernment Code Section 7910 requires agencies to adopt a resolution each year\ndisclosing their appropriation limit. In accordance with Proposition 111, the City is required\nto conduct a review of their appropriations limit during the annual financial audit. For Fiscal\nYear 2024-2025, the City’s appropriation limit was reviewed by our auditors, Moss, Levy\n& Hartzheim, LLP, and determined to be properly calculated. The calculations in\nfile in the Finance Department. The appropriation limit for the 2026-27 fiscal year is\n$211,535,544 and the applicable appropriation subject to this limitation is $91,357,095.\nTherefore, the City is favorably under the appropriations limit by $120,178,449.\nRecommended Action: After receiving public testimony, the Mayor should close the\npublic hearing and the City Council should adopt Resolution No. R2M26-16 entitled: A\nResolution of the Alhambra City Council establishing the Appropriation Limit for FY 2026-\n27 and approving the annual adjustment factors used in the calculation thereof; and,\napprove the annual adjustment factors (per capita income change +4.95% and City\npopulation change -0.20%) used in the calculation of the appropriation limit. (M2M26-82)