HomeMy WebLinkAboutAgenda Statement 1988/06/21 Item 28aCOUNCIL AGENDA STATEMENT
• Item Aga
Meeting Date 6/21/88
ITEM TITLE: Public Hearing: Consideration of the adoption of the budget
for Fiscal Year 1988-89 which includes establishing an •.
appropriations limit for Fiscal Year ended 6/30/89 and the
proposed use of General Revenue Sharing funds
Resolution Adopting an appropriations limit for
fiscal year ending June 30, 1989
SUBMITTED BY: Director of Finance ~°
REVIEWED BY: City Manager~ll
Government Code Section 7910 requires
Gann (Article XIIIB of the California
resolution each year at a regularly
meeting.
(4/5ths Vote: Yes No X )
each local government to establish its
Constitution) appropriations limit by
scheduled meeting or noticed special
RECOMMENDATION: That the City Council adopt a resolution establishing an
appropriations limit of $39,731,365 for the 1988-89 fiscal year.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Article XIIIB of the California Constitution specifies that appropriations
financed from "Proceeds of Taxes" may increase annually by the change in
population of the city and the change in the U.S. Consumer Price Index or
California per capita personal income, whichever is less. For 1988-89, the
lesser increase is CPI at 3.93%.
"Proceeds of Taxes" includes such revenues as property taxes, sales and use
taxes, utility users taxes, transient occupancy taxes, and state subventions.
Revenues from other sources like fees/charges and federal grants are
considered "Non-Proceeds of Taxes" and not subject to limit.
The State Department of Finance is charged with providing the data necessary
for local jurisdictions to establish their appropriation limit. Based on this
data, the 1988-89 appropriation limit has been calculated as follows:
Fiscal Year 1987-88 Appropriation Limit $36,932,632
Increase by the March to March U.S. All Urban
Consumer Price Index (CPI) x 1.0393 (3.93%)
Increase by the Population Change in Chula
Vista from January 1, 1987 to January 1, 1988 x 1.0351 (3.51%)
FISCAL YEAR 1988-89 APPROPRIATIONS LIMIT $39,731,365
•ISCAL IMPACT: The "Proceeds of Taxes" subject to the appropriations limit
are estimated to be $28,011,279 for FY 1988-89. Chula Vista has an
appropriation "gap" of $11,720,086.
WPC 0509G
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