HomeMy WebLinkAboutReso 2019-106RESOLUTION NO. 2019-106
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 2019/20
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 2019/20
calculation, the population increased 1.25 %, and
WHEREAS, California per capita personal income increased by 3.85% and new non-
residential construction increased by 5.36% and; consequently new non-residential construction
was used in the formula to compute the limit since this increase is the greater of the two
amounts; and
WHEREAS, the Fiscal Year 2019/20 Appropriation Limit has been calculated to be
$984,553,094; and
WHEREAS, the “Proceeds of Taxes” as included in the Fiscal Year 2019/20 Proposed
Budget that are subject to the appropriations limit are estimated to be $143,377,972; and
WHEREAS, the City has what is referred to as an appropriation “gap” of $841,175,122
($984,553,094 - $143,377,972); and
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Resolution No. 2019-106
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WHEREAS, this means that the City could collect and spend up to $841,175,122 more in
taxes during Fiscal Year 2019/20 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 $984,553,094 for Fiscal Year 2019/20
pursuant to the requirements of Article XIIIB of the California Constitution and California
Government Code section 7910.
[SIGNATURES ON THE FOLLOWING PAGE]
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Resolution No. 2019-106
Page No. 3
Presented by Approved as to form by
David Bilby, MSBA, CPFO Glen R. Googins
Director of Finance / Treasurer City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 11th day of June 2019 by the following vote:
AYES: Councilmembers: Diaz, Galvez, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Mary Casillas Salas, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2019-106 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 2019.
Executed this 11th day of June 2019.
Kerry K. Bigelow, MMC, City Clerk
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