HomeMy WebLinkAboutReso 2010-132RESOLUTION NO.2010-132
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT
FOR THE CITY OF CHULA VISTA FOR FISCAL YEAR
2010/2011
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 (1978-79) 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 users taxes, transient occupancy taxes, and state subventions; and
WHEREAS, revenues from other sources like fees/chazges 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 Assessoi 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 2010/2011
calculation, the population increased 1.56% and California per capita personal income decreased
by -2.54%; and
WHEREAS, new non-residential construction decreased by -2.49% consequently new
non-residential construction was used in the formula to compute the limit since this decrease was
less than the decrease in California per capita personal income; and
WHEREAS, the Fiscal Year 2010/2011 Appropriation Limit has been calculated to be
$612,426,486; and
WHEREAS, the "Proceeds of Taxes" as included in the fiscal yeaz 2010/2011 Proposed
Budget that are subject to the appropriations limit are estimated to be $77,583,665; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $534,842,821
($612,426,486 - $77,583,665); and
Resolution No. 2010-132
Page 2
WHEREAS, this means that the City could collect and spend up to $534,842,821 more in
taxes during Fiscal Year 2010/2011 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 $612,426,486 for Fiscal Yeaz 2010/2011.
Presented by
Mazia kachadoorian
Director of Finance
Approved as to form by
~-~G~' G
B C. Miesfe
ity Attorn
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: Councilmembers: Bensoussan, Castaneda, Ramirez, Thompson and
Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
~~
Cheryl Cox, May
ATTEST:
~~ ~~~
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. 2010-132 was duly passed, approved, and adopted by the City Council at a
regulaz meeting of the Chula Vista City Council held on the 8th day of June 2010.
Executed this 8th day of June 2010.
Donna R. Noms, CMC, City Clerk