City of Diamond Bar Budget

Fiscal Year 22/23

APPROPRIATION LIMIT CALCULATION (GANN LIMIT)


Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend in one year.


The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. For cities which incorporated after 1978-79, such as the City of Diamond Bar, the initial appropriations limit was set by the voters at the time of incorporation. The City of Diamond Bar's base year is 1989-90.


Each year the City Council must adopt, by resolution an appropriations limit for the following year. The factor that the City uses to compute the appropriation limit is based on the growth factor of the County population change over the prior year and the change in the California per capita income. By using this factor the City will have an appropriation limit of $57,026,785 for FY 2022-2023.