GUSTINE — The Gustine City Council on Aug. 4 will consider approving a resolution that sets the city’s appropriations limit for the 2026‑27 fiscal year and certifies its official population estimate, an annual requirement under state law.

Article XIII‑B of the California Constitution and Government Code Section 7910 mandate that cities establish their appropriations limit — commonly known as the Gann limit — each year at a regular or specially noticed meeting. The limit caps the amount of tax‑generated revenue a city may spend and is adjusted annually using statewide cost‑of‑living and local population factors.

For the coming fiscal year, Gustine’s appropriations limit is calculated at $5,536,425, based on a 4.95% increase in California’s per‑capita personal income and a slight population decrease reported by the state. The Department of Finance estimates Gustine’s Jan. 1, 2026 population at 5,955, down 0.14% from the prior year.

Finance Director Jenny Morrison said the city’s “proceeds of taxes” fall well below the limit, meaning Gustine remains in compliance and does not face spending constraints tied to the calculation. The appropriations limit applies only to tax‑based revenue, not enterprise funds or other non‑tax sources.

The Department of Finance annually provides cities with updated cost‑of‑living and population data used to compute the limit. The state also automatically certifies any population estimate that exceeds the previously recorded figure with the State Controller’s Office, though Gustine’s estimate declined this year.

There is no fiscal impact associated with adopting the resolution, according to the staff report. The item aligns with the city’s strategic goal of maintaining long‑term financial stability.

Councilmembers are expected to review the calculation, take public comment and vote on the resolution Tuesday. Exhibits attached to the agenda include the full calculation worksheet and the Department of Finance’s 2026 price and population factors.