HomeMy WebLinkAboutReso 2013-109RESOLUTION NO. 2013-109
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 2013/2014
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" are 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/charges and federal grants aze
considered "Non-Proceeds of Taxes" and aze 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 necessary for local jurisdictions to establish their
appropriation limit; and
WHEREAS, according to these sources, for purposes of the Fiscal Year 2013/2014
calculation, the population increased 1.39% and new non-residential construction increased by-
1.37%; and
WHEREAS, California per capita personal income increased by 5.12%; 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 Yeaz 2013/2014 Appropriation Limit has been calculated to be
$710,187,628; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Yeaz 2013/2014 Proposed
Budget that are subject to the appropriations limit are estimated to be $80,465,230; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $629,722,398
($710,187,628 - $80,465,230); and
Resolution No. 2013-109
Page No. 2
WHEREAS, this means that the City could collect and spend up to $629,722,398 more in
taxes during Fiscal Year 2013/2014 without exceeding the Constitutional limit.
NOW, THEREFORE, BE IT RESOLVED that the City Counci] of the City of Chula
Vista does hereby establish an appropriations limit of $710,187,628 for Fiscal Year 2013/2014
pursuant to the requirements of Article XIIIB of the California Constitution.
Presented by
Mari Kachadoorian
Director of Finance/Treasurer
Approved as to form by
en R. ogins `
C Att ey
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 1 lth day of June 2013 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan, Ramirez, Salas and Cox
NAYS:
ABSENT:
ATTEST:
~--~
Donna R. Norris, C, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
1 i0~
Cheryl Coy Ma}. r
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2013-109 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 11th day of June 2013.
Executed this 11th day of June 2013.
Councilmembers: None
Councilmembers: None
Donna R. Norris, CMC, City Clerk