HomeMy WebLinkAboutReso 2008-136
RESOLUTION NO. 2008-136
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT
FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2008/
2009
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
(1978-1979) 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 2008/2009
calculation, the population increased 1.51 percent and California per capita personal income
increased by 4.29 percent; and
WHEREAS, new non-residential construction increased 16.86 percent and was used in the
formula to compute the limit since this increase was higher than the increase in California per capita
personal income; and
WHEREAS, the Fiscal Year 2008/2009 Appropriation Limit has been calculated to be
$607,303,566; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2008/2009 Proposed
Budget that are subject to the appropriations limit are estimated to be $92,391,854; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $514,911,712
($607,303,566 - $92,391,854); and
Resolution No. 2008-136
Page 2
WHEREAS, this means that the City could collect and spend up to $514,911,712 more in
taxes during Fiscal Year 2008/2009 without exceeding the Constitutional limit.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City ofChula Vista
does hereby establish an appropriations limit of$607,303,566 for Fiscal Year 2008/2009.
Presented by
Approved as to form by
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Ann Moore
City Attorney
Mari Kachadoorian
Finance Director
PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista,
California, this 3rd day of June 2008 by the following vote:
AYES:
Councilmembers:
Castaneda, McCann, Ramirez, Rindone, and Cox
NAYS:
Councilmembers:
None
ABSENT:
Councilmembers:
None
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Donna R. N rris,~MC, Interim City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Donna R. Norris, Interim City Clerk of Chula Vista, California, do hereby certifY that the foregoing
Resolution No. 2008-136 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 3rd day of June 2008.
Executed this 3rd day of June 2008.
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Donna R. Norri~, CMC, Interim City Clerk