HomeMy WebLinkAboutReso 2024-120RESOLUTION NO. 2024-120
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 2024-2025
WHEREAS, Article XIIIB of the California Constitution, approved b y 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 user 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, as
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 2024-2025
calculation, the population increased 0.54%, and
WHEREAS, California per capita personal income increased by 3.62% and new non-
residential construction increased by 5.6% and; consequently non-residential construction 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 2024-25 Appropriation Limit has been calculated to be
$1,362,259,057; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2024-25 proposed
budget that are subject to the appropriations limit are estimated to be $224,168,128; and
WHEREAS, the City has what is referred to as an appropriation “gap” of $1,138,090,929
($1,362,259,057 - $224,168,128); and
DocuSign Envelope ID: F3C90C29-5D9B-498B-B23E-D68E881E4A95
Resolution No. 2024-120
Page No. 2
WHEREAS, this means that the City could collect and spend up to $1,138,090,929 more
in taxes during Fiscal Year 2024-2025 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 $1,362,259,057 for fiscal year 2024-25
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: F3C90C29-5D9B-498B-B23E-D68E881E4A95
Resolution No. 2024-120
Page No. 3
Presented by Approved as to form by
Sarah Schoen Marco A. Verdugo
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 2024 by the following vote:
AYES: Councilmembers: Chavez, Gonzalez, Morineau, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, 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. 2024-120 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 2024.
Executed this 11th day of June 2024.
Kerry K. Bigelow, MMC, City Clerk
DocuSign Envelope ID: F3C90C29-5D9B-498B-B23E-D68E881E4A95