HomeMy WebLinkAboutAgenda Statement 1985/06/18 Item 6 COUNCIL AGENDA STATEMENT
Item 6
Meeting Date 6/18/85
ITEM TITLE: Public Hearing - Establishing an appropriations limit for
fiscal year ending June 30, 1986
Resolution 11-4:5-C) Adopting an appropriations limit for fiscal
year ending June 30, 1986
SUBMITTED BY: Director of Financed (4/5ths Vote: Yes No X )
REVIEWED BY: City Manager
Government Code Section 7910 requires each local government to establish its
Gann (Article XIIIB of the California Constitution) appropriations limit by
resolution each year at a regularly scheduled meeting or noticed special
meeti ng.
RECOMMENDATION: That the City Council adopt a resolution establishing an
appropriations limit of $26,351 ,793 for the 1985/86 fiscal year.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Article XIIIB of the California Constitution specifies that appropriations
financed from "Proceeds of Taxes" may increase annually by the change in
population of the city and the change in the U. S. Consumer Price Index or
California per capita personal income, whichever is less. The CPI increased
by 3.74% while personal income rose 7.92%. Therefore, the CPI factor is used.
"Proceeds of Taxes" includes such revenues as property taxes, sales and use
taxes, utility users taxes, transient occupancy taxes, and state subventions.
Revenues from other sources like fee s/charges and federal grants are
considered "Non-Proceeds of Taxes" and not subject to limit.
The State Department of Finance is charged with providing the data necessary
for local jurisdictions to establish their appropriation limit. Based on this
data, the 1985-86 appropriation limit has been calculated as follows:
Fiscal Year 1984-85 Appropriation Limit $25,036,238
Increase by the March to March U. S. All
Urban Consumer Price Index (CPI ) x 1 .0374 (3.74%)
Increase by the Population Change in Chula w.,.. . . ,
Vista from January 1 , 1984, to January 1 , 1985 x 1 .0146 (1 .46%)
FISCAL YEAR 1985-86 APPROPRIATIONS LIMIT $26,351 .793
FISCAL IMPACT: The "Proceeds of Taxes" subject to the appropriations limit
are estimated to be $17,444,237 for fiscal year 1985-86. Therefore, Chula
Vista has a comfortable appropriation "gap" of $8,907,556.
RPF:nr
WPC 0080G
/ .../-
.,/
by the City Council of
Chula Vista, California
Dated ,
/ ' z/ - J----'