HomeMy WebLinkAboutReso 2012-116RESOLUTION NO. 2012-116
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE GANN INITIATIVE
APPROPRIATIONS LIMIT FOR THE CITY OF CHULA VISTA
FOR FISCAL YEAR 2012-2013
WHEREAS, Article XIIIB of the California Constitution, approved by the voters in 1979,
imposed the concept of spending limits on local governments; and
WHEREAS, this Constitutional provision and related implementing legislation specifies
that annual increases in appropriations financed from "Proceeds of Taxes" aze limited to a base
year (1978-79) amount increased annually by an inflation factor comprised of the change in
population of the City combined with the greater of the change in new non-residential
construction or the change in the California per capita personal income; and
WHEREAS, by definition, "Proceeds of Taxes" includes such revenues as property taxes,
sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions; and
WHEREAS, revenues from other sources like fees/chazges and federal grants .are
considered "Non-Proceeds of Taxes" and are not subject to the annual spending limit; and
WHEREAS, this calculation has always been perfunctory for the City of Chula Vista,
since the proceeds of taxes for the City are far less than the statutory appropriation limit; and
WHEREAS, the State Department of Finance and the San Diego County Assessor's
Office are charged with providing the data necessazy for local jurisdictions to establish their
appropriation limit; and
WHEREAS, according to these sources, for purposes of the Fiscal Year 2012/2013
calculation, the population increased 1.37% and new non-residential construction decreased by -
2.74%; and
WHEREAS, California per capita personal income increased by 3.77%; consequently
California per capita personal income was used in the formula to compute the limit since this
increase was greater than the increase in new non-residential construction; and
WHEREAS, the Fiscal Year 2012/2013 Appropriation Limit has been calculated to be
$666,335,002; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2012/2013 Proposed
Budget that are subject to the appropriations limit are estimated to be $76,495,944; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $589,839,058
($666,335,002 - $76,495,944); and
Resolution No. 2012-116
Page No. 2
WHEREAS, this means that the City could collect and spend up to $589,839,058 more in
taxes during Fiscal Year 2012/2013 without exceeding the Constitutional limit.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby establish an appropriations limit of $666,335,002 for Fiscal Year 2012/2013
pursuant to the requirements of Article XIIIB of the California Constitution.
Presented by
Approved as to form by
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MariarKachadoorian len R. G ogins
Director ofFinance/Treasurer Ci mey
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 19th day of June 2012 by the following vote
AYES: Councilmembers: Aguilar, Bensoussan, Castaneda, Ramirez and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, Ma r
ATTEST:
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Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2012-116 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 19th day of June 2012.
Executed this 19th day of June 2012.
Donna R. Norris, MC, City Clerk