Agenda Item Wording:
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Fiscal Year 2025/26 Appropriations Limit - City Council approval of Resolution 2025-33 adopting the 2025-26 appropriations limit for the City of Visalia's General Fund.
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Prepared by: Renee Nagel, Finance & Technology Director renee.nagel@visalia.city 713-4375, Amee Swearingen, Budget Analyst amee.swearingen@visalia.city 713-4170
Department Recommendation: That the City Council adopt Resolution 2025-33 establishing the appropriations limit for the 2025-26 fiscal year in the amount of $236,001,182 for the General Fund.
Summary:
Each year, the City of Visalia's Council must approve the city's appropriations limit, which is determined by Propositions 4 and 111. These laws limit the amount of tax revenue that can be appropriated in a fiscal year based on the 1978-79 fiscal year's appropriations, adjusted annually for changes in population and per capita income in California. The General Fund is the only fund affected by this limitation. For fiscal year 2025-2026, the appropriations limit for Visalia is set at $236,001,182, while the total General Fund appropriation subject to this limit is $94,779,800, which is well below the established limit. Challenges to this limit must be made within 45 days of the resolution's effective date.
Background Discussion:
Annually Council is required by the State to approve the appropriation limit for the City of Visalia. The Appropriation Limitation imposed by Propositions 4 and 111 creates a restriction on the amount of tax revenue which can be appropriated in any fiscal year. The limit is based on actual appropriations during the 1978-79 fiscal year and is increased each year by a factor comprised of the change in population combined with the change in California per capita personal income.
The General Fund is the only fund subject to the appropriation limit mandated by the State of California. Any challenge to the appropriations limit must be brought within 45 days from the effective date of...
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