HomeMy WebLinkAboutReso 2011-097RESOLUTION NO. 2011-097
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT FOR THE CITY OF CHULA VISTA FOR FISCAL
YEAR 2011/2012
WHEREAS, Article XIIIB of the Califomia 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 Califomia 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 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 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 Year 2011/2012
calculation, the population increased 0.90% and new non-residential construction decreased by -
5.62%; and
WHEREAS, California per capita personal income increased by 2.51%, consequently
California per capita personal income was used in the formula to compute the limit since this
increase was greater than the increase in new non-residential construction; and
WHEREAS, the Fiscal Year 2011/2012 Appropriation Limit has been calculated to be
$602,428,072; and
WHEREAS, the "Proceeds of Taxes" as included in the Fiscal Year 2011/2012 Proposed
Budget that are subject to the appropriations limit are estimated to be $76,394,997; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $526,033,075
($602,428,072 - $76,394,997); and
Resolution No. 2011-097
Page 2
WHEREAS, this means that the City could collect and spend up to $526,033,075 more in
taxes during Fiscal Year 2011/2012 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 $602,428,072 for Fiscal Year 2011/2012.
Presented by
Maria achadoonan
Director of Finance/Treasurer
Approved as to form by
len R. ogins'
C rney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 7th day of June 2011 by the following vote:
AYES: Councilmembers: Aguilar, Bensoussan, Castaneda, Ramirez and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
ATTEST:
~ "l,
Donna R. Norris, CMC, C Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
~~z~~.
Cheryl Cox, ayo
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2011-097 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 7th day of June 2011.
Executed this 7th day of June 2011.
b
Donna R. Norris, C, City Clerk