RESOLUTION NO. 8536
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAWTHORNE, CALIFORNIA, ADOPTING AN APPROPRIATION SPENDING LIMIT FOR FISCAL YEAR 2025-2026 IN COMPLIANCE WITH ARTICLE XIIIB OF THE STATE CONSTITUTION.
 

Staff recommends that the City Council adopt Resolution No. 8536 establishing the City’s appropriations limit computed for the coming fiscal year, as required by the California Constitution.  The City’s appropriations limit for Fiscal Year 2025-2026 has been computed at $103,863,108.
 

Article XIIIB of the California Constitution (Gann Limit) requires that the City compute an annual appropriations limit.  This limit sets the maximum amount of appropriations that can be made from tax receipts.  Taxes exceeding this limit must be returned to the residents or may be spent with the approval of a majority vote. The estimated annual tax receipts for Fiscal Year 2025-2026 were approximately $79.6 million and well below the limit of $103.9 million.

The annual adjustment for the limit is also provided by Article XIIIB and is to be based on the change in the California per capita personal income combined with the greater of the change in population in the jurisdiction or the jurisdiction’s county.  For the purposes of calculating the City’s appropriations limit for the Fiscal Year 2025-2026 staff has used the County’s population factor as it exceeds the City’s population growth factor for the past year.  Using these two factors, the coming year’s limit is $103,863,108.

The attached Exhibit A provides the calculation information for Fiscal Year 2025-2026.
 
 

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Failure to adopt an appropriations limit will result in the State withholding gas taxes.  Estimated gas tax revenues for Fiscal Year 2025-2026 are approximately $4.8 million.

72 hours posted notice pursuant to the Ralph M. Brown Act