HomeMy WebLinkAboutReso 2009-001RESOLUTION NO. 2009-001
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING A FISCAL EMERGENCY
WHEREAS, at the time the 2008/2009 Budget was enacted, it reflected budget reserves
for fiscal yeaz 2008/2009 totaling $9.3 million; and
WHEREAS, at that same time, as a result of spending requirements embedded in law and
increased program costs as a result of inflation, workload and population-driven program growth,
the Finance Department projected shortfall between revenues and expenditures in fiscal year
2008/2009 would be $3.9 million and for fiscal year 2009/2010 would be approximately $20.0
million; and
WHEREAS, since the enactment of the 2008/2009 Budget, the City has faced the same
economic challenges that are affecting the rest of the state and nation, in lazge part as a result of a
slowing housing mazket, down-turn in the economy and financial instability; and
WHEREAS, these economic challenges have resulted in a $5.5 million reduction in the
General Fund revenue forecast for fiscal year 2008/2009 below the revenue forecast used when
the 2009 Budget was enacted; and
WHEREAS, expenditures from the General Fund during fiscal year 2008/2009 are
projected to be lower than the original adopted budget by approximately $1.6 million resulting in
a projected budget deficit of $3.9 million; and
WHEREAS, the Finance Director now reports that this combination of lowered revenue
receipts and projections and anticipated expenditure savings has resulted in a projected budget
shortfall for fiscal yeaz 2008/2009 of $3.9 million, as well as a cumulative budget shortfall in
fiscal year 2009/2010 of $20.0 million; and
WHEREAS, due to the significant projected budget shortfall, the City Council has
reviewed and discussed this matter, and has taken public input, at noticed public meetings on
November 17, 2008 (Council Budget Workshop), December 4, 2008 (Council Budget
Workshop), December 9, 2008 (Council Meeting), December 16, 2008 (Council Meeting) and
January 6, 2009 (Council Meeting); and
WHEREAS, the City is negotiating with all of the City's bargaining groups in an effort to
reduce expenditures and declazing a fiscal emergency will assist in said negotiations; and
WHEREAS, this declazation of a fiscal emergency is being made to give the City Council
greater flexibility in establishing remedial measures including identifying potential state and
federal grants or other funding sources; and
Resolution No. 2009-001
Page 2
WHEREAS, the Finance Director further reports that the available General Fund reserves
for fiscal yeaz 2008/2009 would be reduced to $5.4 million and that for fiscal yeaz 2009/2010
there would be insufficient reserves to offset the projected deficit in fiscal year 2009/2010.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby find and declaze that a fiscal emergency exists and identifies the nature of this
fiscal emergency to be the projected budget imbalance and reduced available General Fund
reserves for fiscal year 2008/2009 and insufficient available General Fund reserves to offset the
projected budgetary deficit in fiscal yeaz 2009/2010, which aze anticipated to result from the
lower than estimated General Fund revenues in fiscal year 2008/2009 and increased fiscal yeaz
2009/2010 expenditures.
Presented by ~. Approved as to form by
s D. Sandoval
Manager
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 8th day of January 2009 by the following vote:
AYES: Councilmembers:
NAYS: Councilmembers:
ABSENT: Councilmembers:
ATTEST:
~~ ~~~
Donna R. Norris, CMC, City Clerk
Bensoussan, Castaneda, McCann, Ramirez, and
Cox
None
None
Cheryl Cor Ma or
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-001 was duly passed, approved, and adopted by the City Council at a
special meeting of the Chula Vista City Council held on the 8th day of January 2009.
Executed this 8th day of January 2009.
Donna R. No s, CMC, City Clerk