HomeMy WebLinkAboutReso 2022-139 DocuSign Envelope ID:26CEA832-416F-45AA-BD37-277D8814C694
RESOLUTION NO. 2022-139
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 2022/23
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 2022/23
calculation, the population decreased 0.05 %; and
WHEREAS, California per capita personal income increased by 7.55% and new non-
residential construction increased by 2.16% and; consequently per capita personal income
change was used in the formula to compute the limit since this increase is the greater of the two
amounts; and
WHEREAS, the Fiscal Year 2022/23 Appropriation Limit has been calculated to be
$1,225,401,274; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2022/23 Proposed
Budget that are subject to the appropriations limit are estimated to be $148,997,068; and
WHEREAS, the City has what is referred to as an appropriation "gap" of$1,076,404,206
($1,225,401,274 148,997,068); and
DocuSign Envelope ID:26CEA832-416F-45AA-BD37-277D8814C694
Resolution No. 2022-139
Page No. 2
WHEREAS, this means that the City could collect and spend up to $1,076,404,206 more
in taxes during Fiscal Year 2022/23 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 $1,225,401,274 for Fiscal Year 2022/23
pursuant to the requirements of Article XIIIB of the California Constitution and California
Government Code section 7910.
[SIGNATURES ON THE FOLLOWING PAGE]
DocuSign Envelope ID:26CEA832-416F-45AA-BD37-277D8814C694
Resolution No. 2022-139
Page No. 3
Presented by Approved as to form by
DocuSigned Sign
by: DocuSigned by:
E,CF406508504
Sign4CE6401... 44!F...
Sarah Schoen 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 14th day of June 2022 by the following vote:
AYES: Councilmembers: Cardenas, McCann, Padilla, and Casillas Salas
NAYS: Councilmembers: None
ABSENT: Councilmembers: Galvez
DocuSigned by: �/f
062BFD7C0386456...
Mary Casillas Salas, Mayor
ATTEST:
DocuSigned by:
c
E,,30746104EAF342E...
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
1, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2022-139 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 14th day of June 2022.
Executed this 14th day of June 2022.
DocuSigned by:
nman naFAF342F
Kerry K. Bigelow, MMC, City Clerk