HomeMy WebLinkAboutReso 2009-140RESOLUTION NO. 2009-140
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT
FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR 2009/
2010
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 ofthe 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 aze 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 Ciry 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 yeaz 2009/2010
calculation, the population increased 1.2 percent and California per capita personal income increased
by 0.62 percent; and
WHEREAS, new non-residential construction decreased by -3.5 percent consequently
California per capita personal income was used in the formula to compute the limit since this
increase was higher than the decrease in new non-residential construction; and
WHEREAS, the fiscal yeaz 2009/2010 Appropriation Limit has been calculated to be
$618,401,675; and
WHEREAS, the "Proceeds of Taxes" as included in the fiscal yeaz 2009/2010 Proposed
Budget that are subject to the appropriations limit are estimated to be $84,016,291; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $534,385,384
($618,401,675 - $84,016,291); and
Resolution No. 2009-140
Page 2
WHEREAS, this means that the City could collect and spend up to $534,385,384 more in
taxes during fiscal year 2009/2010 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 $618,401,675 for fiscal yeaz 2009/2010.
Presented by
Mazia Cachadoorian
Director of Finance
Approved as to form by
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C. Mie ld
City Attor~y
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 16th day of June 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, McCann, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, M or
ATTEST:
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(J)t_uA JC ~ //oiShc.~
Donna R. Norris, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2009-140 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 16th day of June 2009.
Executed this 16th day of June 2009.
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Donna R. Norris, CMC, City Clerk