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Finance director corrects population factor; council adopts Gann appropriation limit for FY 2025–26
Summary
The City Council adopted Resolution 25-4078 setting the Gann (appropriations) limit for fiscal year 2025–26 after staff corrected the population factor used in calculations; the adopted budget remains below the calculated limit.
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Finance Director Deborah Caballero presented Resolution 25-4078 to set the Gann appropriation limit for fiscal year 2025–26. During the presentation she said a published staff report used a county population growth factor (0.07%) while the resolution initially used the city’s population factor (a -0.35% decline), and the difference required correction to the stated appropriation-limit dollar figures.
Caballero explained that the Gann limit is calculated under Proposition 4 and subsequent revisions and relies on chosen population and inflation/price factors. Using the county population factor increased the calculated appropriation limit; with the corrected figures the adopted budget remains approximately $10.8 million below the appropriation limit, meaning the city is not over the legal cap. The council adopted the resolution as amended to reflect the corrected figures.
No public comment on the item was recorded. Caballero said staff will reflect the corrected population factor and dollar figures in the final resolution and supporting documents.

