FY 2023-24 Gann Limit

Article XIIIB of the State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, and subsequent implementation legislation requires that the City of Concord limit each fiscal year's appropriations of the proceeds of taxes to the amount of such appropriations in Fiscal Year 1978-79 as adjusted by growth in California per capita income and the greater of the growth in City or County population. Government Code Section 37200 requires that the appropriations limit and the total appropriations subject to the limitation be published in the annual budget. The City's limitation is calculated every year and it is established by City Council resolution as part of the Annual Operating Budget Process. Resolution No. 23-54 was approved on June 13, 2023 establishing the City of Concord's appropriations limit. Below is the calculation.

Appropriations subject to the limit in the FY 2023-24 budget total $100,968,318. This is $131,789,586 less than the computed limit. Additional appropriations to the budget funded by non-tax sources such as beginning fund balances, grants or service charges are unaffected by the appropriations limit. However, any supplemental appropriations funded through increased tax sources are subject to the appropriations limit and could not exceed the $131,789,586 variance. Any overall actual receipts from tax sources greater than the variance would result in taxes in excess of the appropriations limit and would require refunds of the excess in the next two years or voter approval of an increase in the appropriations limit. A request of voters to authorize an increase in the appropriations limit is not anticipated in the future due to the significant margin between the limit and tax revenue.