CC RES 2026-049 RESOLUTION NO. 2026-49
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF RANCHO PALOS VERDES
ESTABLISHING THE FISCAL YEAR (FY) 2026-27
APPROPRIATION LIMIT AT $42,876,353 FOR THE
CITY OF RANCHO PALOS VERDES
WHEREAS, by a letter dated May 2026, the California Department of Finance has
provided the following factors relevant to the calculation of the Appropriation Limit for FY
2026-27:
California Per Capita Personal Income change:
4.96% (Four Point Ninety-Six Percent)
City of Rancho Palos Verdes Population Adjustment:
-0.44% (Negative Point Forty-four Percent)
WHEREAS, the City's Finance Department Staff has calculated the Appropriation
Limit for FY 2026-27 based upon the foregoing factors and the provisions of Article XIII B
of the Constitution of the State of California. The working papers supporting the
calculation are maintained in the files of the Finance Department within the City.
WHEREAS, the Appropriation Limit for the City of Rancho Palos Verdes
establishes the ceiling for which proceeds from taxes can be appropriated during FY
2026-27.
NOW BE IT, THEREFORE, RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES:
Section 1: The Appropriation Limit of the City of Rancho Palos Verdes is
established at $42,876,353 (Forty-two Million Eight Hundred Seventy-six Thousand
Three Hundred Fifty-three Dollars) for FY 2026-27.
Section 2: The Appropriation Limit of the City of Rancho Palos Verdes in the
amount of $42,876,353 (Forty-two Million Eight Hundred Seventy-six Thousand Three
Hundred Fifty-three Dollars) for FY 2026-27 exceeds the proceeds from taxes, calculated
in the amount of $34,345,000 (Thirty-four Million Three Hundred Forty-five Thousand
Dollars) for FY 2026-27. Therefore, the City of Rancho Palos Verdes shall be in
compliance with the provisions of Article XIII B of the Constitution of the State of
California.
Section 3: The City Clerk shall certify to the passage of this resolution.
APPROVED AND ADOPTED THE 16th DAY OF JUNE 2026.
Paul See,
ATTEST:
qeresa iaoka, City Cierk
State of California )
County of Los Angeles ) ss
City of Rancho Palos Verdes )
I, TERESA TAKAOKA, City Clerk of The City of Rancho Palos Verdes, hereby certify that
the above Resolution No. 2026-49 was duly and regularly passed and adopted by the
said City Council at a regular meeting thereof held on June 16, 2026.
eresa aoka, City Clerk 111I
Resolution No. 2026-49
Page 2 of 2
May 1, 2026
Dear Fiscal Officer:
Price Factor and Population Information
Appropriations Limit
California Revenue and Taxation Code section 2227 requires the Department of Finance
to transmit an estimate of the percentage change in population to local governments.
Each local jurisdiction must use their percentage change in population factor for
January 1, 2026, in conjunction with a change in the cost of living, or price factor, to
calculate their appropriations limit for fiscal year 2026–27. Attachment A provides the
change in California’s per capita personal income and an example for utilizing the
factors to calculate the 2026–27 appropriations limit. Attachment B provides the city and
unincorporated county population percentage change. Attachment C provides the
population percentage change for counties and their summed incorporated areas. The
population percentage change data excludes federal and state institutionalized
populations and military populations.
Population Percent Change for Special Districts
Some special districts must establish an annual appropriations limit. California Revenue
and Taxation Code section 2228 provides additional information regarding the
appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts
certain special districts from the appropriations limit calculation mandate. Special districts
required by law to calculate their appropriations limit must present the calculation as
part of their annual audit. Any questions special districts have on this requirement should
be directed to their county, district legal counsel, or the law itself. No state agency
reviews the local appropriations limits.
Population Certification
The population certification program applies only to cities and counties. California
Revenue and Taxation Code section 11005.6 mandates Finance to automatically certify
any population estimate that exceeds the current certified population with the State
Controller’s Office. Finance will certify the higher estimate to the State Controller by
June 1, 2026. Please note: The prior year’s city population estimates may be revised.
The per capita personal income change is based on historical data.
If you have any questions regarding this data, please contact the Demographic
Research Unit at (916) 323-4086.
/s Erika Li
Attachment
C-1
May 2026
Attachment A
A.Price Factor: Article XIII B specifies that local jurisdictions select their cost of
living factor to compute their appropriation limit by a vote of their governing
body. The cost of living factor provided here is per capita personal income. If
the percentage change in per capita personal income is selected, the
percentage change to be used in setting the fiscal year 2026–27
appropriation limit is:
Per Capita Personal Income
Fiscal Year Percentage change
(FY) over prior year
2026-27 4.95
B.Following is an example using sample population change and the change in
California per capita personal income as growth factors in computing a
2026–27 appropriation limit.
2026–27:
Per Capita Cost of Living Change = 4.95 percent
Population Change = -0.14 percent
Per Capita Cost of Living converted to a ratio: 4.95 + 100 = 1.0495
100
Population converted to a ratio: -0.14 + 100 = 0.9986
100
Calculation of factor for FY 2026–27: 1.0495 x 0.9986 = 1.0480
C-2
City of Rancho Palos Verdes
Ten- Year Gann Limit Calculation
FY 2026-27
Year
No.
Fiscal
Year
Califronia
per Capita
Population
Change
RPV
Factor Factor
Appropriation
Limit
Proposed Budget
Proceeds of Taxes
% of Budget
to Limit
10 2026-27 4.96 -0.44 -0.53 1.04404 $42,876,353 $34,345,000 80%
9 2025-26 6.44 0.3 -0.25 1.06174 $41,067,843 $33,113,200 81%
8 2024-25 3.62 0.05 -0.5 1.03102 $38,679,792 $33,113,200 86%
7 2023-24 4.44 -0.75 -1.02 1.06786 $37,516,080 $30,989,920 83%
6 2022-23 7.55 -0.71 -0.98 1.06786 $36,291,352 $28,333,280 78%
5 2021-22*5.73 -0.89 -0.7 1.04789 $33,984,996 $24,285,400 71%
4 2020-21*3.73 -0.11 -0.26 1.03616 $32,431,834 $23,621,500 73%
3 2019-20 3.85 -0.01 -0.24 1.0384 $31,300,056 $25,513,980 82%
2 2018-19 3.67 0.51 0.22 1.04199 $30,142,693 $25,078,500 83%
1 2017-18 3.69 0.57 0.31 1.04281 $28,928,085 $24,109,140 83%
*FY 2020-21 Appropriation Limit corrected from $31,301,409
*FY 2021-22 Appropriation Limit corrected from $32,800,435
Resolution 2026-49
Attachment 1
Page 1 of 3
CALCULATION OF PROCEEDS OF TAXES
DRAFT BUDGET FY 2026-27
NON
PROCEEDS PROCEEDS
GENERAL FUND OF TAXES OF TAXES TOTAL
TAXES
TOTAL TAXES 33,505,000 2,654,500 36,159,500
LICENSES AND PERMITS
TOTAL LICENSES AND PERMITS 0 3,555,300 3,555,300
FINES AND FORFEITURES
TOTAL FINES AND FORFEITURES 0 59,250 59,250
RENTS
TOTAL RENTS 0 818,500 818,500
INTEREST
TOTAL INTEREST 840,000 210,000 1,050,000
CHARGES FOR SERVICES
TOTAL CHARGES FOR SERVICES 0 357,900 357,900
REVENUES FROM OTHER AGENCIES
TOTAL REVENUES FROM OTHER AGENCIES 0 0 0
OTHER REVENUES
TOTAL OTHER REVENUES 0 502,000 502,000
Resolution 2026-49
Attachment 1
Page 2 of 3
CALCULATION OF PROCEEDS OF TAXES
DRAFT BUDGET FY 2026-27
NON
PROCEEDS PROCEEDS
Inter-Fund Transfers
TOTAL INTER-FUND TRANSFERS 0 320,000 320,000
TOTAL GENERAL FUND 34,345,000 8,477,450 42,822,450
NON
PROCEEDS PROCEEDS
ALL FUNDS OF TAXES OF TAXES TOTAL
TOTAL ALL FUNDS 34,345,000 29,960,710 64,305,710
PROCEEDS OF TAXES 34,345,000
GANN LIMIT 42,876,353
% OF GANN LIMIT 80%
Resolution 2026-49
Attachment 1
Page 3 of 3