HomeMy WebLinkAboutReso 2017-107RESOLUTION NO. 2017-107
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 2017-2018
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 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 necessary for local jurisdictions to establish their
appropriation limit; and
WHEREAS, according to these sources, for purposes of the Fiscal Year 2017-2018
calculation, the population increased 1.14 %, and
WHEREAS, California per capita personal income increased by 3.69% and new non-
residential construction increased by 2.88% and; consequently per capital personal income was
used in the formula to compute the limit since this increase is the greater of the two amounts; and
WHEREAS, the Fiscal Year 2017-2018 Appropriation Limit has been calculated to be
$851,310,266; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2017-2018 Proposed
Budget that are subject to the appropriations limit are estimated to be $117,555,471; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $733,754,795
($851,310,266 - $117,555,471); and
Resolution No. 2017-107
Page No. 2
WHEREAS, this means that the City could collect and spend up to $733,754,795 more in
taxes during Fiscal Year 2017-2018 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 $851,310,266 for Fiscal Year 2017-2018
pursuant to the requirements of Article XIIIB of the California Constitution and California
Government Code section 7910.
Presented by
David Bilby, MSBA, CW -
0 -Director of Finance/Treasurer
Approved as to form by
GleR. Go ins
City
Resolution No. 2017-107
Page No. 3
PASSED. APPROVED. and ADOPTED by the City Council of the City of Chula Vista,
California, this 20th day of June 2017 by the following vote:
AYES
NAYS
ABSENT
Councilmembers: Aguilar, Diaz, McCann, Padilla, and Salas
Councilmembers: None
Councilmembers: None
Mary SAs, Mayor
ATTEST:
Donna R. rris, COC, 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. 2017-107 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 20th day of June 2017.
Executed this 20th day of June 2017.
Donna R. is; CM , City Clerk