RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ESTABLISHING THE APPROPRIATIONS
LIMIT (GANN LIMIT) FOR THE CITY OF CHULA VISTA
FOR FISCAL YEAR 2024-2025
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 l imited to a bas e 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 user taxes, transient occupancy taxes, and state subventions; and
WHEREAS, revenues from other sources like fees/charges an d 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, as 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 t hese sources, for purposes of the fiscal year 20 24-2025 calculation, the population increased 0.54%, and
WHEREAS, California per capita personal income increased by 3.62% and new non - residential construction increased by 5.6% and; consequently non-residential construction 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 24-25 Appropriation Limit has been calculated to be $1,362,259,057; and
WHEREAS, the "Proceeds of Taxes" as included in the fiscal year 20 24-25 proposed budget that are subject to the appropriations limit are estimated to be $224,168,128; and
WHEREAS, the City has what is referred to as an appropriation "gap ” of $1,138,090,929 ($1,362,259,057 - $224,168,128); and
Resolution No. 2019-__________
WHEREAS, this means that the City could collect and spend up to $ 1,138,090,929 more in taxes during fiscal year 2024-2025 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 $ 1,362,259,057 for fiscal year 20 24-25 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 Marco A. Verdugo
Director of Finance/Treasurer City Attorney