HomeMy WebLinkAboutReso 2010-147RESOLUTION NO. 2010-147
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING A FISCAL EMERGENCY
WHEREAS, the City has gone through several iterative rounds of budget cuts in an effort
to keep expenditures in line with rapidly declining revenues, cutting $10.1 million in April 2007,
$15.5 million in December 2007, $10.8 million in April 2008, $1.5 million in September 2008,
and $20 million in January 2009; and
WHEREAS, the City has eliminated 259.0 full time equivalent staffing positions in order
to reduce expenditures, resulting in service impacts to the community including reduced library
and recreation hours, reduced park and street maintenance, and reduced police investigative
staffing; and
WHEREAS, since the adoption of the General Fund budget for fiscal yeaz 2009/2010
additional revenue shortfalls totaling $4.6 million in the current yeaz have been identified; and
WHEREAS, in developing the preliminary baseline General Fund budget for fiscal year
2010/2011 additional revenue shortfalls of $6.3 million were identified, resulting in a projected
budget deficit of $10.9 million; and
WHEREAS, a balanced General Fund budget for fiscal year 2010/2011 has been
developed through a combination of $1.3 million in expenditure reductions and $9.6 million in
one-time revenues; and
WHEREAS, the use of one-time revenues is not sustainable in the future; and
WHEREAS, the Five-Year Financial Forecast for fiscal yeazs 2010/2011 through
2014/2015 project a structural deficit beginning in fiscal yeaz 2011/2012 ($12.5 million) and
continuing through fiscal year 2014/2015 ($8.7 million); and
WHEREAS, this declazation of a fiscal emergency is being made to give the City Council
greater flexibility in establishing remedial measures; and
WHEREAS, this resolution is further made pursuant to Article XIIIC, Section 2(b), of the
California Constitution to permit the submission of a measure regazding the City's
Telecommunications Users' Tax to the electorate at the November 2, 2010, Special Municipal
Election; and
WHEREAS, the Director of Finance further reports that the available General Fund
reserves for fiscal year 2010/2011 are projected to total $9.3 million and that there are
insufficient reserves to offset the projected deficit in fiscal year 201 I /2012.
Resolution No. 2010-147
Page 2
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 structural budget imbalances beginning in fiscal yeaz
2011/2012 and continuing through fiscal year 2014/2015, which aze anticipated to result from the
continued reduction in revenues.
Presented by
J es D. Sandoval
Manager
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 8th day of June 2010 by the following vote:
AYES
NAYS
ABSENT:
Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
Councilmembers: None
Councilmembers: None
Cheryl Cox, M or
ATTEST:
~~ ~~~
Donna R. Noms, CMC, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Noms, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2010-147 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the th day of June 2010.
Executed this 8th da of June 2010.
Y a ~ ~ ./'
Donna R. Norris, CMC, City Clerk
Approved as to form by