RESOLUTION NO. 2023-__________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT (GANN L IMIT) FOR THE CITY OF CHULA VISTA
FOR FISCAL YEAR 2023-2024
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 Taxe s" 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/c harges 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, ac cording to these sources, for purposes of the fiscal year 20 23-2024 calculation, the population increased 0.26%, and
WHEREAS, California per capita personal income increased by 4.44% and new non - residential construction increased by 2.30% and; consequen tly per capita personal income change was used in the formula to compute the limit since this increase is the greater of the two amounts; and
WHEREAS, the fiscal year 20 23-24 Appropriation Limit has been calculated to be $1,283,136,594; and
WHEREAS, the "Proceeds of Taxes" as included in the fiscal year 20 23-24 Proposed Budget that are subject to the appropriations limit are estimated to be $213,488,768; and
WHEREAS, the City has what is referred to as an appropriation "gap" of $ 1,069,647,826 ($1,283,136,594 – $213,488,768); and
Resolution No. 2019-__________
WHEREAS, this means that the City could collect and spend up to $ 1,069,647,826 more in taxes during Fiscal Year 2023-2024 without exceeding the Constitutional limit.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the Cit y of Chula Vista does he reby establish an appropriations limit of $ 1,283,136,594 for Fiscal Year 20 23-24 pursuant to the requirements of Article XIIIB of the California Constitution and California Government Code section 7910.
Presented by
Approved as to form by
_________________________________ _________________________________ Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak Acting City Attorney