HomeMy WebLinkAboutReso 2023-076 DocuSign Envelope ID:6ECF965F-D5BA-457A-9E23-7C941BE02385
RESOLUTION NO. 2023-076
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT (GANN LIMIT) FOR THE CITY OF CHULA VISTA
FOR FISCAL YEAR 2023/24
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 2023/24
calculation, the population increased 0.26%, and
WHEREAS, California per capita personal income increased by 4.44% and new non-
residential construction increased by 2.30% 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 2023/24 Appropriation Limit has been calculated to be
$1,283,136,594; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2023/24 Proposed
Budget that are subject to the appropriations limit are estimated to be $213,488,768; and
WHEREAS, the City has what is referred to as an appropriation "gap" of$1,069,647,826
($1,283,136,594 $213,488,768); and
DocuSign Envelope ID:6ECF965F-D5BA-457A-9E23-7C941BE02385
Resolution No. 2023-076
Page No. 2
WHEREAS, this means that the City could collect and spend up to $1,069,647,826 more
in taxes during Fiscal Year 2023/24 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 $1,283,136,594 for Fiscal Year 2023/24
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:6ECF965F-D5BA-457A-9E23-7C941BE02385
Resolution No.2023-076
Page No. 3
Presented by Approved as to form
DocuSigned by: DocuSigned by:
E
aVa�, S66LA , W 9.S
A2701C384CE6401.. By• EFB949DC9B5747E...
Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona&Peak
Acting City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 13th day of June 2023 by the following vote:
AYES: Councilmembers: Cardenas,Chavez,Gonzalez,Preciado,and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
DocuSigned by:
7804EC23B90B473_.
John McCann, Mayor
ATTEST:
DocuSigned by:
�1A
30746104EAF342E...
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
1, Kerty K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2023-076 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the l 3th day of June 2023.
Executed this 13th day of June 2023.
DocuSigned by:
Kerty K. Bigelow, MMC, City Clerk