Gann Appropriations Limit

The votes of California, during a special election in 1979, approved Article XIII-B of the California State Constitution (informally known as Proposition 4, or the “Gann Initiative”), which restricts the total amount of appropriations allowed in any given fiscal year from the “proceeds of taxes.”

In 1980, the State Legislature added section 9710 to Government Code which required the governing body of each local jurisdiction to establish, by resolution, an appropriations limit for the following year.  The appropriations limit for any fiscal year was equal to the previous year’s limit, adjusted for population changes and the change in the U.S. Consumer Price Index (or California per Capita Personal Income, if smaller).  The necessary statistical information is provided each year by the California Department of Finance

In June 1990, the votes modified the original Article XIII-B (Proposition 4) with the passage of Proposition 111 and its implementing legislation (California Senate Bill 88).  Beginning with the 1990-91 appropriations limit, a City may choose annual adjustment factors.  The adjustment factors include the growth in the California Per Capita Income or the growth in the non-residential assessed valuation due to construction within the City, and the population growth within the Count or the City.  Under Proposition 4, if a city ends the fiscal year having more proceeds of taxes than the Limit allows, it must return the excess to the taxpayers within two years (either by reducing taxes levied or fees charged).

Every June, along with budget adoption, the Agoura Hills City Council adopts a resolution establishing the Gann appropriations limit for the City of Agoura Hills.

The annual Gann Limit calculations can be found in the biennial budget documents and in the annual staff report to Council for budget adoption. Links to the current and past five years of Gann appropriations limits are below:

Gann appropriations limits are below:

FY 2024-25

FY 2023-24

FY 2022-23

FY 2021-22

FY 2020-21

FY 2019-20