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HomeMy WebLinkAboutAGENDA BACKUP 09-03-81 y BOARD OF DIRECTORS N~ IV. Consent Calendar VIA: ROGER J. DOLAN General Manager-Chief Engineer SUBJECT POSITION PAPER DATE August 31, 1981 TYPE OF ACTION AUTHORIZATION FOR P.A. 81-20 (ALAMO AREA), P.A. 81-21 (CONCORD AREA), P.A. 81-22 (ALAMO AREA) P.A. 81-23 (CONCORD AREA) TO BE INCLUDED IN A FUTURE FORMAL SUBMITTED BY Parcel No. Area 81-20 Alamo 81-21 Cone. 81-22 Alamo 81-23 Cone. ANNEXATION INITIATING DEPT./DIV. COLL. SYSTEM/ENGINEERING Lead Agency C. C. County City of Cone. C. C. County City of P.leasant Hi 11 wi th Concords Approval RECOMMENDATION: Authorize P.A. 81-20, 81-21, 81-22 and 81-23 to be included in a future formal annexation to the District. INITIATING DEPT./DIV. ~~ Lloyd Smith Owner Address Parcel No. & Acreage Remarks Roy A. Hallquist 161 Patricia Ln. Alamo, CA 198-050-05 (l.OAc.) Property to be split into two parcels by M.S. 54-80. One existing house, one additional can be built on new parcel. Tentative map and negative declaration approved by County. Central Contra Costa Transit Authority 1990 N. Cal ifornia Bl. Suite 520 Walnut Creek, CA 159-050-023 & - 027 and ptn 159-050-024 The CCCTA plans to use this site as a transit maintenance facil it with about 75 full time employee Negative Declaration and tentat- ive plans approved by the City 0 Concord. Brian Thiessen P.O. Box 218 Danville, CA 94526 197-050-010 (20 Ac) Property to be split into 4 lots by M.S. 41-80. (3 lots of 1 acre Negative Declaration by C.C. Co. Wilsey, Wilsey & Bennett Co. 2280 Powell St. San Francisco, CA 94133 127-180-051 (7.45 Ac.) Property owner plans to build 66 condominum units and a 2.8 acre office complex on this site. E. I.R. approved by the City of Pleasant Hill. REVIEWED AND RECOMMENDED FOR BOARD ACTION c((SD Central BOARD OF DIRECTORS N~VI. Engineering VIA: ROGER J. DOLAN DATE POSITION PAPER General Manager-Chief Engineer August 21, 1981 SUBJECT APPROVAL OF AMENDMENT NO. 6 TO THE TASK A AGREEMENT WITH TYPE OF ACTION METCALF & EDDY FOR THE FINAL DESIGN, BID ASSISTANCE AND CON- AUTHORIZATION FOR STRUCTION MANAGEMENT OF THE CATHODIC PROTECTION SYSTEM FOR THE FUNDS SUBMITTED BY Joye Kurasaki, Associate Engineer INITIATING DEPT./DIV. SPECIAL PROJECTS ENGINEERING DIVISION BACKGROUND Metcalf & Eddy (M&E) with their subcontractor, Villalobos & Associates, has completed an evaluation of the corrosion protection system for the protection of buried piping with an estimated value of $5,000,000 in the main treatment plant area, which excludes the filter plant area (see figure 1.) Their find i ng s are: 1. There is corrosion activity associated with the buried piping in the main treatment plant area. 2. The system originally planned for installation under the Stage 5A Phase I project is incomplete. 3. The cost to implement the corrections recommended by Brown & Caldwell would be very high (approximately $900,000 in August 1981 dollars). 4. A cost effective corrosion protection system can be installed at a cost of approximately $460,000 (in August 1981 dollars). The District staff has negotiated a Contract Amendment with M&E to provide design, bid assistance, and construction management services for a two phase program. Phase I would include the design and installation of corrosion test stations in the main treatment plant area. Phase II would include moni- toring of the test stations and design and construction of the corrosion protection system using both impressed current and sacraficial anode technology. The entire program would be completed in approximately 18 months. The cost for this work is $178,344 for the M&EjVillalobos & Associates work. This cost is eligible for reimbursement under the Clean Water Grant Program. Since the cost of this Contract Amendment is more than $100,000, the State Water Resources Control Board (SWRCB) must approve the Amendment before it can be executed by the District. The SWRCB is reviewing the Contract Amendment now. District staff do not anticipate any problems with obtaining approval. . . . over REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. .f~' ~~ RECOMMENDATION Authorize the General Manager-Chief Engineer to execute Amendment No.6 to the Task A Agreement for the final design, bid assistance, and construction manage- ment of the cathodic protection system for the main treatment plant, after approval from the SWRCB. Authorize the expenditure of sewer construction funds for thi s work. <c(sD Central BOARD OF DIRECTORS District NO. ngl neen ng 2 9/3/81 August 21, 1981 VIA: ROGER J. DOLAN POSITION PAPER General Manager-Chief Engineer SUBJECT APPROVAL OF AMENDMENT NO. 7 TO THE TASK A AGREEMENT WITH METCALF & EDDY FOR A PREDESIGN STUDY FOR CATHODIC PROTECTION AT FILTER PLANT AREA. DATE TYPE OF ACTION AUTHORIZATION FOR FUNDS SUBMITTED BY Joye Kurasaki, Associate Engineer INITIATING DEPT./DIV. Special Projects Division BACKGROUND: Metcalf & Eddy (M&E) with their subcontractor, Villalobos & Associates, took some field readings in the filter plant area during their cathodic protection study of the main treatment plant area. Their readings indicated that there is corrosion activity associated with the buried piping. If left uncorrected, the piping will deteriorate with time. Upon a request by the District staff, M&E has submitted a proposal for a predesign study that would assess require- ments for cathodic protection in the filter plant area. The District staff has negotiated a Contract Amendment with M&E for this study. The estimated cost of this Contract Amendment is $26,990 which is eligible for reimbursement under the Clean Water Grant Program. The study would be completed within 10 weeks. RECOMMENDATION: Authorize the General Manager-Chief Engineer to execute Amendment No.7 to the Task A Agreement for the predesign study for cathodic protection in the filter plant area. Authorize the expenditure of sewer construction funds for this work. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.!DIV. /'. .:;I0.1..(~L;Lf(' ~ Central Sanitary BOARD OF DIRECTORS NO. VI. Engi neeri ng POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE August 31, 1981 SUBJECT TYPE OF ACTION AUTHORIZE $35,000.00 FOR CORROSION PROTECTION SYSTEM DESIGN. MARTINEZ FORCE MAINS M1 & M2, JOB 3586 AUTHORIZE FUNDS AND CONSULTANTS AGREEMENT SUBMITTED BY J S M C ay . c oy INITIATING DEPT./DIV. COLLECTION SYSTEM/ENGINEERING BACKGROUND: The existing Corrosion Protection Systems have not been providing adequate protection for several years. Attempts to upgrade and restore existing systems have not been successful or cost effective. It is imperative that adequate Corrosion Protection be restored as soon as possible. We propose to hire a consulting Corrosion Engineer to design new systems for the Martinez M2 and M6 force mains. Staff has screened three firms and determined Harco Corp. to be the most responsive consultant for our nee~s. It is our intend to provide as much in-house design and spec. prep. as feasible. RECOMMENDATION: Authorize $35,000.00 for the deslqn of Corrosion Protection Systems for the Martinez H2 & M6 force m~ins. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./DIV. ~ ~ ~ lA.-:rsM e~ CUI ~'-' D Centra~ Conrira Costa Sanitary' District BOARD OF DIRECTORS NO. VI. Engi neeri ng 9 POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE August 28, 1981 SUBJECT TYPE OF ACTION ALLOCATION OF $25,000 FOR THE PURPOSE OF INSTALLING AN APPLIED WATER PUMP Capital Expenditure SUBMITTED BY Charles Batts INITIATING DEPT./DIV. Plant Operations Department Issue: The Filter Plant pumping system is oversized for current requirements. Installation of a smaller pumping system will save $75,000 per year in electrical costs. Background: The Water Pollution Control/Reclamation Plant was designed to filter 30 MGD of treated wastewater. A 250 hp applied water pump is used to pump water out of the outfall to the Filter Plant. Presently, only about 0.5 MGD of filtered water is being used for in-plant purposes. The appl ied water pumps are oversized for present requirements, use a disproportionate amount of energy, demand excessive maintenance, and require constant operational monitoring. This project would correct these problems by install ing a pumping system sized for current usage plus excess capacity for up to 1t MGD of water reclamation. This would result in a direct energy cost savings of $75,000 per year and reduce maintenance of the existing appl ied water system. The proposed system would use an existing waste back wash pump from the Filter Plant which would require installation and piping to the appl ied water System. The existing applied Water pumps would remain in place in case future filtered water usage increases beyond 2 MGD. Recommendation: Authorize $25,000 for the installation of an appl ied water pump. REVIEWED AND RECOMMENDED FOR BOARD ACTION .~"''-o INITIATING DEPT./DIV. C lAJj3 I#t8 c((SD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. VI. Engineering POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE August 24, 1981 SUBJECT AUTHORIZE $10,000 FOR RE~LACEMENT OF LEVEL INSTRUMENTATION IN THE BARSCREEN ROOM TYPE OF ACTION Capital Expenditure SUBMITTED BY Robert A. Baker INITIATING DEPT.!DIV. Plant Operations Department Issue: The Plant Operations Department requests authorization to expend $10,000 for the renovation of the barscreen room level instrumentation. Background: The level measurements in the barscreen room, including influent flow, are critical to the proper operation of the plant. Due to poor selection and installation of the existing level transmitters, the level measurements often have an unacceptably large error (10-20 percent). In addition, the level transmitters for measuring influent flow are exceedingly difficult and time consuming to cal ibrate. This makes accurate influent flow measurement very difficult to achieve. This proposal would upgrade the level instrumentation so accurate measurements would be ensured and instruments could be calibrated properly. Recommendation: Authorize $10,000 for the purpose and installation of new level measurement equipment. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.!DIV. tA-.t RAB RJD r Centrau Contra Costa Sanitali~Y District BOARD OF DIRECTORS N~ VII. Water Pol Contr 1 Plt POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Sept. 1, 1981 SUBJECT TYPE OF ACTION PLANT OPERATIONS DEPARTMENT INFLUENT FLOW STUDY Board Update SUBMITTED BY Robert A. Baker INITIATING DEPT./DIV. Plant Operations Department The Plant Operations Department has completed a study of the accuracy of the influent flow measurement devices, the Parshall flumes. A volumetric calibration procedure was employed which involved filling a tank with sewage which had passed through a Parshall flume and measuring the volume increase in the tank with time. The findings of the study are as follows: l~ Influent flow measurement has been in error at flows over 22 MGD using the standard mathematical equation for Parshall flumes. (The error increases as the flow increases.) Recent dry weather flows have been about seven percent higher than reported; recent wet weather flows have been up to ten percent higher than reported. 2. The as-designed flume installation is extremely awkward and difficult to cal ibrate. This design feature 1 imits the practically achievable accuracy of the Parshall flumes. The Parshall flumes were originally specified to be used for a 0-75 MGD influent flow range. The standard Parshall flume equation is only specified for 0-22 MGD in the literature and was shown to be inaccurate over 22 MGD by the influent flow study. A new Parshall flume equation was developed in the influent flow study which allows the Parshall flumes to be used at flows up to 50 MGD. Modifications to the Parshall flume installation have been designed to improve ease of calibration. A Position Paper has been enclosed to authorize the expenditure of funds for this project.. REVIEWED AND RECOMMENDED FOR BOARD ACTION RAB INITIATING DEPT./DIV. ~ RJD <C<SD Central Contra Costa Sanitary District BOARD OF DIRECTORS NO. V. Adm. POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE SUBJECT FINANCIAL MANAGEMENT INFORMATION SYSTEM STATUS REPORT AND REQUEST FOR AN ADDITIONAL $2,000 FOR DATA PROCESSING CONSULTANT SERVICES SUBMITTED BY Walter N. Funasaki Fina TYPE OF ACTION Receipt of Report and Authorize Additional Funds ISSUE: At the July 16, 1981 Board Meeting, Peat, Marwick, Mitchell & Co., data processing consultants, presented a report in which the systems requirements definition data processing alternatives, and a Request For Proposal for a new Financial Management Information System were reviewed. This Position Paper is a status report of activities since that date. BACKGROUND: Upon receipt of Board authorization to issue the Request For Proposals, proposal requests were sent to 25 hardward manufacturers and service bureaus on July 20, 1981. A pre-proposal conference was held on July 27, 198t at which representatives of 15 companies attended. By the August 7. 1981 due date, 5 hardware/ software vendors and 1 service bureau submitted proposals; 5 companies submitted letters of declination. The six proposals were opened at a meeting of the District's Systems Study Group on August 7, 1981. Peat, Marwick, Mitchell & Co. consultants reviewed the evaluation criteria established and worksheets to be used by group members in evaluating the proposals. Each group member received a copy of all 6 proposals and assigned numerical scores based on 10 evaluation criteria. The completed evaluations were provided to Peat, Marwick, Mitchell & Co. on August 31, 1981 for consolidation with evaluations prepared by the consultants. The results of the consol idated evaluations and a report of the significant technical comparative data in the proposals will be reviewed by the consultants with the Systems Study Group on September 2, 1981. It is intended that a ranking of the respondents be produced at this meeting, and oral interviews and site visits of operating facilities be conducted for the top 2 proposers during the period September 4, 1981 through September 11, 1981. The six respondents were: IBM Wang Laboratories, Inc. Basic Four Corporation Computer Resources Management Corporation International Data Applications The Service Bureau Company REVIEWED AND RECOMMENDED FOR BOARD ACTION The price ranges for hardware and applications software were approximately $140,000 to $190,000. The monthly processing fee quoted by the service bureau approximated $1,700 for the majority of the District's requirements. The Professional Services Agreement with the data processing consultants contains a cost ceiling of $22,000 and provides for services in 3 major areas of activity: definition of systems requirements; preparation of the Request For Proposal; and vendor evaluation, selection and negotiation. Site visits during the evaluation process were not included in the scope of work. The Systems Study Group believes it would be beneficial to have a consultant accompany group members at site visits; an additional $2,000 to be added to the ceiling price by amendment is, therefore, requested. The Systems Study Group will present its recommendation for the selection of the processing method which should be used by the District to implement the Financial Management Information System at the September 17, 1981 Board Meeting. RECOMMENDATION: Authorize an amendment to the Professional Services Agreement with Peat, Marwick, Mitchell & Co. to provide for an additional amount not toexceedc$2;000 for attebdaoce at site visits. c((SD BOARD OF DIRECTORS POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Sept. 2, 1981 SUBJECT AUTHORIZATION TO EXPEND $11 ,000 FROM THE SEWER CONSTRUCTION FUND TO PURCHASE PARTS FOR MULTIPLEXOR UNIT MODIFICATIONS REQUIRED FOR THE STAGE 5B PROJECT TYPE OF ACTION AUTHORIZE FUNDS SUBMITTED BY Curtis Swanson, Associate Engineer INITIATING DEPT./DIV. Special Projects Engineering BAC KGROUND The Stage 5B Project will increase the capacity of the District's treatment plant to 45 MGD and provide sludge handling and dewatering facilities. District staff proposes to modify existing multiplexor (MUX) units to control and monitor the Stage 5B treatment processes. The sole source for parts to modify the MUX units, Iniven Corporation, is going out of business. When Iniven Corporation ceases operations, the District will have to purchase custom-built parts for the MUX units. The cost of custom built parts is 3 to 10 times greater than the cost from Iniven Corporation. District staff frayedetermined the required parts for modifying the MUX units for the Stage 5B Project. The cost of these parts is approximately $11,000. Acquisition of these parts now rather than waiting until Stage 5B construction begins will result in significant savings to the District. The District has requested approval from the State Water Resources Control Board to prepurchase the MUX parts. This approval will allow reimbursement of the cost of the assembly if a grant is awarded for construction of the Stage 5B project. The Board should be aware that State Water Resources Control Board prepurchase approval does not guarantee funding. If the State Water Resources Control Board does not award a construction grant, the District must pay for the entire cost of the MUX parts. RECOMMENDATION Authorize the expenditure of $11,000 from the Sewer Construction Fund to purchase parts for the multiplexor unit modifications required for the Stage 5B Project. REVIEWED AND RECOMMENDED FOR BOARD ACTION INIT(!J;r;:gTO/DIVO CWS \J1IL ~ (Jj1fJ <C<SD BOARD OF DIRECTORS NO. POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE Sept. 1, 1980 SUBJECT ADOPTION OF A RESOLUTION AUTHORIZING THE DEPUTY CHIEF ENGINEER TO FILE APPLICATIONS FOR FEDERAL AND STATE CLEAN WATER GRANTS TYPE OF ACTION ADOPT RESOLUTION SUBMITTED BY Curtis Swanson, Associate Engineer INITIATING DEPT./DIV. Special Projects Engineering BACKGROUND State and federal Clean Water Grant regulations require that the Board of Directors formally authorize officials to sign and file grant applications and other related documents on behalf of the District. The Board has previously authorized the General Manager-Chief Engineer and in his absence, the Deputy General Manager-Chief Engineer to perform this function. Since the position and responsibilities of the Deputy General Manager- Chief Engineer have been divided into two separate positions (Deputy General Manager and Deputy Chief Engineer), there is no authorized representative to sign grant documents when the General Manager-Chief Engineer is unavailable. District staff will be preparing many grant applications and grant-related documents for the Stage 5A and 5B projects over the next several years. Another District official authorized to sign and file grant documents will permit their timely submittal. The Deputy Chief Engineer is being proposed as an authorized representative because the Engineering Department is responsible for managing the District's Clean Water Grants. RECOMMENDATION Adopt the attached resolution authorizing the Deputy Chief Engineer to file applications and provide other assurances for federal and state Clean Water Grants on behalf of the District. REVIEWED AND RECOMMENDED FOR BOARD ACTION INle~ ;gTo/DIVOCWS VN.I e~ Costa BOARD OF DIRECTORS N01 V. Consent Calendar POSITION PAPER VIA: ROGER J. DOLAN General Manager-Chief Engineer DATE August 31, 1981 SUBJECT TYPE OF ACTION EXECUTE AGREEMENT RELATING TO REAL PROPERTY WITH KURT BOETTGER ET UX, JOB 2942 PARCEL 1 RIGHT OF WAY SUBMITTED BY Ja INITIATING DEPT.!DIV. Collection System/Engineering ISSUE: The property owners, Mr. and Mrs. Kurt Boettger, have constructed a concrete crib wall to support their driveway. A portion of this wall crosses an existing District sewer easement and 8-inch main. BACKGROUND: The property owners and their contractor has cooperated with District staff during the construction of the crib wall. Staff has determined that the improvements do not interfere with the present use of our sewer, however, if it should become an interference, the agreement requires the property owner to remove the structure within 30 days of notice to do so. RECOMMENDATION: Approval, execute "Agreement" and authorize its recording. REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT.!DIV. ~t-A .7"'~ Pyl ~ JSM CL\-I Centll Contra Costa Sanl....dry District BOARD OF DIRECTORS POSITION PAPER I VIA: ROGER J. DOLAN General Manager-Chief Engineer NO. VII 1. ~udg~n~ ~Q;i nan e DATE August 31, 1981 SUBJECT TYPE OF ACT ION PROPOSITION 4 APPROPRIATIONS LIMIT Authorize Public Notice SUBMITTED BY Walter N. Funasaki INITIATING DEPT./DIV. Accountina Division ISSUE: The Central Contra Costa Sanitary District is required to establish its appropria- tions limit in accordance with Article XIIIB of the California Constitution. BACKGROUND: General Requirements: Proposition 4 was approved on November 6, 1979 and was incorporated in the California Constitution as Article XIII B. Article XIII B, as implemented by Senate Bill 1352, limits appropriations of state and local governments to the appropriations of the 1978-1979 base year adjusted in each subsequent year for changes in the consumer price index and population. SB 1352 requires government agencies to establish their appropriations limit by resolution each year at a regularly scheduled meeting or a noticed special meet- ing beginning with the 1980-1981 fiscal year. Notice to the public of the availability of documentation in support of the appropriation limit must be given fifteen days prior to adoption. For 1980-1981, the appropriation limit was open to challenge within 60 days of the effective date of the resolution; for 1981- 1982, and each fiscal year thereafter, the period in which a challenge can be commenced is 45 days of the effective date of the resolution. Key Assumptions: The following key assumptions have been used in interpreting the provisions of Article XIII B: o The District accounts for its activities in three separate funds: Runn- ing Expense Fund (General Fund); Sewer Construction Fund (Capital Fund); Debt Service Fund. The Running Expense Fund is considered to be an Enterprise Fund and is not subject to limitation under Proposi- tion 4. Enterprise Funds are generally used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent is that costs of providing goods or services to the public on a continuing basis be financed or recovered primarily through user charges. o Article XIII B defines "proceeds of taxes" as including, but not restricted to, all tax revenues, income from investment of tax proceeds, and the proceeds of regulatory licenses, user charges and fees to the extent that such proceeds exceed the reasonable cost of providing the regulation, product or service. "Proceeds of taxes" also include state subventions, other than those for mandated programs for which the state reimburses the local agency. SB 1352 further defined REVIEWED AND RECOMMENDED FOR BOARD ACTION INITIATING DEPT./,DIV. GEN. MGR./CHIEF ENG. state subventions to include only money received by a local agency from the state, the use of which is unrestricted by the statute providing the subvention. Grant funds received from the state for capital projects are restricted to specific uses and are, therefore, not "proceeds of taxes". o Fund balances carried over into fiscal year 1980-1981 are generally subject to limitation unless they were appropriated into a reserve account prior to July 1, 1980; however, as the Sewer Construction Fund is a single purpose fund, the fund balance at June 30, 1981 can be construed as having been appropriated into reserves and, therefore, not subject to limitation. Computation of Appropriations: Debt service is specifically excluded from the appropriations limit. The only District appropriations which are subject to the provisions of Proposition 4 are those related to the Sewer Construction, or Capital Fund. The District Appropriations Limits are computed on the following attachments: At~achment A - Computation of Proceeds of Taxes, 1978-1979 '. '.. > . Attachment B - Computation of Appropriations Subject to Limit, 1978- 1979 Attachment C - Appropriations Limit: 1979-1980, 1980-1981 and 1981- 1982 Attachment D - Appropriations Subject to Limitation, 1980-198l. Attachment E - Computation of Proceeds of Taxes, 1980-1981. A memorandum prepared by Rutan and Tucker entitled "Calculation of the Gann Appropriation Limit" is provided for reference as Attachment F. RECOMMENDATION: Authorize placement of a Public Notice advising that documenta- tion used in the determination of the appropriation limit shall be available fifteen days prior to the Board of Directors Meeting to be held on October 1, 1981 at which the appro- priations limit for the Sewer Construction Fund for the fiscal years 1980-1981 and 1981- 1982 will be adopted. .u~. WNF }j Attachment A Central Contra Costa Sanitary District Sewer Construction Fund (Capital Fund) Computation of Proceeds of Taxes 1978-1979 Proceeds Non-Proceeds Of Taxes Of Taxes Total Revenue: Connection Fees 1,878,281 1,878,281 Deferred Fixture Fees 56,756 56,756 Taxes 1,932,802 1,932,802 Annexation Charge 278, 163 278,163 Interest 423,232 1,852,210 2,275,442 Ai d From Other Gove rnmen t Agencies 2,537,108 2,537,108 2,356,034 6,602,518 8,958,552 Receipts For Reserve For Future Sewer Trunk Li ne Connections 1,005: 142. 1 ,005 r 142 .?,356,034 7,607.660 9,963:694 ,,'....~,.~. __'~__..r._,__.._......,_~,____~_':._ Central Contra Costa Sanitary District Sewer Construction Fund (Capital Fund) Computation of Appropriation Subject To limit 1978-1979 Appropriations: Annexation Expense Additions to Property, Plant and Equipment Depreciation Expense Capital Expenditure Authorizations Addition to Capital Expenditure Reserves Additions to Reserve For Future Sewer Trunk line Connections Debt Service less: Debt Service Non-Proceeds of Taxes -Appropriations Subject To limitation Attachment B 7, 725 2,393,747 2,166,821 2,341,610 4,390,259 1,005,142 470,098 12,775,402 (470,098) (] , 607 , 660) (8,077,758) 4,697,644 Central Contra Costa Sanitary District Sewer Construction Fund (Capital Fund) Appropriations Limit 1979-1980, 1980-1981 and 1981-1982 1978-1979 Appropriations Subject to Limitation 1979-1980 Appropriations Limit CPI Change State Per Capita Persona 1 Income Population Change Compound Effect: $4,697,644 x 1.1252 = 1980-1981 Appropriations Limit: CPI Change Per Capita Income Change Population Change Compound Effect: $5,285,789 x 1.1470 = 1981-1982 Appropriations Limit: Per Capita Income Change Population Change Compound Effect: $6,062,800 x 1.1127 = 1. 1017 1 . 1500 1. 0214 1.1017 x 1.0214 = 1.1252 $5,285,789 1 . 1 468 1.1211 1 .0231 1.1211 x 1.0231 = 1.1470 $&,062,800 1 .0912 1.0197 1.0912 x 1.0197 = 1.1127 $6,746,078 Attachment C $4,697,644 CENTRAL CONTRA COSTA SANITARY DISTRICT SEWER CONSTRUCTION FUND (CAPITAL FUND) APPROPRIATIONS SUBJECT TO LIMITATION 1980-1981 Appropriations: Annexation Expense Addition To Property, plant and Equipment Depreciation Expense - Estimated Capital Expenditure Authorizations Additions To Reserve For Future Sewer Trunk Line Connections Debt Service Additions To Capital Expenditure Reserves Less: Debt Service Non-Proceeds of Taxes Appropriations Subject To Limitation Attachment D $ 3,609 7,894,534 2,700,000 1,548,874 692,253 464,423 (2.304.67~) $10,999,01 $ (464,423) (5,751,356) $ 6,215,779 $ 4,783,239 Attachment E Central Contra Costa Sanitary District Sewer Construction Fund (Capital Fund) Computation of Proceeds of Taxes 1980-1981 Proceeds Non-Proceeds Of Taxes Of Taxes Total Revenue: Connection Fees 1,268,896 1,268,896 Deferred Fixture Fees 66,028 66,028 Taxes 2,450,794 2,450,794 Annexation Charges 274,234 274,234 Interest 779,962 3,413,380 4,193,342 Aid From Other Government Agencies 27,805 27,805 Miscellaneous 8,760 8,760 3,230,756 5,059,103 8,289,859 Receipts For Reserve For Future Sewer Trunk Line Connections 692,253 692,253 3,2Y),756 5,751,356 8,982,112 Attachment F / .f RUTAN cSt TUCKER ATTORNEYS AT LAW A. W. RUTAN (le.O-ISiII7Z) A PARTNERSHIP CONSISTING OF PROFF.SSIONAI. CORPORA.TIONS ..IAMf:S B. TUCKER, SR.lIeee-I0'501 MIL"ORO w. DAHL- RUDOLPH C. SHEPARO. WELLS FARGO BANK BUILDING H. RODGER HOWELL- E. S. WOLCOTT, m. ,JAMES B. TUC~E.R. ROBERT L. PIKE- 401 CIVIC CENTER DRIVE WEST GARVIN F. SHALL.ENBERGER- ALAN BURTON NEWMAN ,JAMES R. MOORE:- LAWRENCE E. BERTINO. POST OFFICE BOX 1976 ROBERT L.. RISLEY. ROBERT S. BOWER HOMER L. MCCORMICK, JR,- MARCIA A. FORSYTH SANTA ANA, CALIFORNIA 92102 WILLIAM R. BIEL- WILLIAM M. MARTlCORENA R1CMARO A. CURNUTT- LAWRENCE ..J. DREYFUSS TELE.COPIER (714) 558-1566 LEONARD A. HAMPE.\..- ANNE NELSON LANPHAR .JOHN B. HURLBUT, .JR,- PATRICIA L. STEARNS MICHAEL. W. IMME:l..V RE.NA C. STONE: TELEPHONE (714) 835-2200 Mll..FORO W. DAHl... JR.- Wll..l..lAM J. CAPLAN THEODORE I. WALl..ACE:. JR.- GARY M. LAPE RICHARD P. SIMS- RANDALl.. S. WAIER MARSHAl..1.. M. PEARLMAN" MICHAEL T. HORNAK ROBERT C. BRAUN- DIANE 1.. DOUGLAS ROGER A. GRABl..E- PHILIP O. KOHN EDWARD O. SYBE:.SMA. JR.- JOE:.L D. KUPER8ERG THOM....S S. SA1.INGER- ELIZABETH A. NEALE BARRY R. l..AUBSCHER- SCOTT R. HOYT OAVID C. l......RSEN. MARY B. MCILLECE CLIFFORD E. FRIEDEN- KATHRYN L. TOBIN ARTHUR G. KIDMAN. PHIl..IP C. MAYNARD MICHAEl.. O. RUBIN- NElLA R. BERNSTEIN MARC WINTHROP- DONNA SNOW WOLF' IRA G. RIVIN. OE:BRA J. OUNN-PETERSON JEF'FREY M. OOERMAN. EVRIDIKI (VICKI) DALL.AS TWX 910 596-1883 CABLE. ADDRESS RUTAN Tue NEWPORT BEACH OFF1CE 610 NEWPORT CENTER DRIVE. SUITE 900 POST OFFICE BOX 736~ NEWPORT BEACH. CALIFORNIA 92660 TELECOPIER (714) 759-8993 TELEPHONE (714) 7S~.0833 IN REPLY PLEJ..SE REFER TO ... ~"l!:SSION.A.L. COA.-oJtATIO'" .-AQMITTEO ...EW YOI'II'I. ....... ONL'f' "CALCULATION OF THE GANN APPROPRIATIONS LIMIT" A MEMORANDUM PREPARED BY STAN WOLCOTT FOR USE AT THE CALIFORNIA ASSOCIATION OF SANITATION AGENCIES' SPRING 1981 CONFERENCE I. INTRODUCTION The following memorandum is designed to provide the information necessary to implement the Gann spending limita- tion for the remainder of the 1980-81 fiscal year and thereafter. With this objective in mind, the first section of the memorandum gives an overview of the various pertinent sections of Gann (Article XIIIB, attached hereto as Exhibit A) and the implementing legislation which went into effect January 1 of this year. (SB 1352 and SB 1389 attached hereto as Exhibits Band C). The second section of the memorandum then distills the provisions of Gann and the implementing legislation into a checklist of steps which must be followed to calculate the appropriations limitation and to ascertain whether a budget will be within the limitation. RUTAN & TUCKEh ATTORNEYS AT LAW A PARTNERSHIP CONSISTING or PROF'ESSIONAl CORPORATIONS II. ARTICLE XIIIB AND ITS IMPLEMENTING LEGISLATION Article XIIIB provides in its primary operative section that total annual appropriations "subject to limi tation" must not exceed the appropriations limi t for that public entity for the prior year, as adjusted for changes in the cost of Ii ving and population. [Section 1] The 1980-81 fiscal year is the first year in which appropriations are subject to the appropriations limit. [Section 10] Article XIIIB defines "appropriations subject to limitation" to mean any authorization to expend during a fiscal year, the "proceeds of taxes" Ie vied by that entity and the proceeds of any state subventions (other than those for mandated programs) . [Section 8 (b)] In turn, Article XIIIB defines "proceeds of taxes" as including, but not restricted to, all tax revenues, income from investment of tax proceeds, and the proceeds of regula- tory licenses, user charges and fees to the extent that such proceeds exceed the reasonable cost of providing the regula- tion, product, or service. For local agencies, "proceeds of taxes" also includes state subventions, other than those for mandated programs for which the state reimburses the local agency. [Section 8 (c); see also Government Code Section 7903.] The "appropriations limit" of each public entity is the amount which total annual appropriations subject to limita- -2- r\ U i r\.'" ~ j \"",< '- ^ t:.. ,-, ATTORNEYS AT LAW A PARTNERSHIP CONSISTING OF PROFESSIONAl,. CORPORATIONS tion may not exceed under Section 1, provided, however, that the limit for 1978-79 fiscal year is the total of appropria- tions subject to limitation for that year. [Section 8(h)] Thus, the "base year" for calculating the appropriations limit is the 1978-79 fiscal year. "Appropriations subject to limitation" do not include: (a) Debt service. [Section 9(a)] "Debt service" is defined by Article Xllla to mean appropriations required to pay interest and redemption charges, including funding of any reserve or sinking fund required in connection with the indebtedness, on indebtedness existing or legally authorized on or before January 1,1979, or on bonded indebtedness thereafter approved according to law by vote of the electors. [Section 8(g)] Although "indebtedness" typically only refers to indebtedness which is a general obligation of the" public entity, one of the bills which implements Article Xllla (Sa 1389) provides that debt serv- ice on other types of bonds will also be excluded. (b) Appropriations required for purposes of complying with mandates of the courts or the federal government which, wi thout discretion, require an expendi ture for addi tional services or which unavoidably make the providing of existing services more costly. [Section 9(b)] (c) Appropriations of any special district which existed on January 1, 1978, and which did not as of the -3- RUTAN & TUCKER ATTORNEYS AT LAW A PARTNERSHIP CONSISTING OF' PROFESSIONAL CORPORATIONS 1977-78 fiscal year levy an ad valorem tax on property in excess of 12-1/2 cents per $100 of assessed value, or the appropriations of any special district then existing or thereafter created by vote of the people, which is totally funded by other than proceeds of taxes. [Section 9(c}] We have interpreted this exemption as excluding levies for bonded indebtedness. Thus, if a district levied 12 1/2 cents or less for its general rate in 1977-78, it would be totally exempt and would not need to calculate an appropri- ations limit. (d) AEpropriations to local agency loan funds, indebtedness funds, and investment funds. [Section 8(i}] Article XIIIB also provides that the appropriations limit for any fiscal year must be adjusted as follows: (a) In the event that the financial responsibility of providing . . serV1ces 1S transferred, in whole or in part, whether by annexation, incorporation or otherwise, from one public entity to another, then for the year in which the transfer become effective, the app't:'opriations limit of the transferee entity must be increased by such reasonable amount as the public entities mutually agree upon, and the appropriations limi t of the transferor public enti ty shall be decreased by the same amount. [Section 3(a)] (b) In the event that the financial responsibility of providing services is transferred, in whole or in part, -4- RUTAN & TUCKER ATTORNEYS AT LAW A PARTNERSHIP CONSISTING OF' PROFESSIONAL CORPORATIONS from an entity of government to a private entity, or the financial source for the provision of services is transferred, in whole or in part, from tax proceeds of an entity of government, to regulatory licenses, user charges or user fees, then for the year of the transfer, the appropriations limit of such entity must be decreased accordingly. [Section 3(b)] Basically, this means that if the tax support for any service is reduced and revenues from user charges or fees are substi tuted, the appropriations limit will be lowered by the amount that the tax support for that service is lowered. (c) In the event of an emergency, the appropriation limit may be exceeded, provided that the appropriations limits in the following three years are reduced accordingly to prevent an aggregate increase in appropriations resulting from the emergency. [Section 3(c)] (d) The appropriations limi t may be increased or decreased by the electors of the public entity for a period not exceeding four years from the date of the vote. [Section 4] (e) If any appropriation category is added or removed from the appropriations subject to limitation, pursuant to a final judgment of any court of competent jurisdiction, the appropriations limit must be adjusted accordingly. [Section 11] -5- RUTAN & TUCKER ATTORNEYS AT LAW A PARTNERSHIP CONSISTING OF PROFESSIONAl. CORPORATIONS Section 2 of Article XIIIB provides that revenues received by a public entity in excess of its appropriations for that year must be returned by a revision of tax rates or fee schedules within the next two subsequent fiscal years. This section has been interpreted in the implementing legislation as also permitting refunds or tax credits. (See discussion of SB 1352 below.) The only "revenues" which are required to be refunded are proceeds of taxes which are in excess of the appropriations of tax proceeds for that year. This interpretation is consonant with the overall spending limi tat ion . purpose of Article XIIIB, and is the position adopted by the Legislature in SB 1352. A technique for a void ing refunds, howe ver, appears in the form of Section 5 of Article XIIIB. Section 5 permits public entities to establish contingency, emergency, unem- ployment, reserve, retirement, sinking, trust, or similar funds as they deem reasonable and proper. Contributions to any such funds, to the extent that the contributions are derived from the proceeds of taxes, constitute "appropria- tions subject to limi tation" in the year of contribution. The withdrawals from such funds, the expendi tures of such withdrawals, or transfers between or among such funds, are not appropriations subject to limitation in the year of wi thdrawal. -6- RUTAN & TUCKER ATTORNEYS AT LAW A PARTNERSHIP CONSISTING or PRorESSIONAL CORPORATIONS Thus, an entity which had "excess" revenues, either tax proceeds or non-tax proceeds, could establish the funds permitted by Section 5 and make a "contribution" to the funds in that fiscal year. The contribution of tax proceeds will be subject to the appropriations limit, and unless the entity has some "head room" in its appropriation limitation, it might have to refund the excess tax proceeds. No similar impediment applies to the contribution of non-tax proceeds, which are not subject to the appropriation limit. SB 1352, introduced by Senator Marks, is the bill which implements the provisions of Article XIIIB. Among other things, it sets forth the formulas for establishing and subsequently adjusting the spending limi tation for public entities. These formulas are set forth in the next section of the memorandum. Additionally, SB 1352 provides the following: {I} that the adjustments required under Section 3 of Article XIIIB are to be made only for the 1979-80 fis- cal year, but not the 1978-79 fiscal year; (2) that each year, the governing body of each public entity must, by resolution, establish its appropriations limit for the fol- lowing fiscal year at a regularly scheduled meeting or a noticed special meeting. [Government Code Section 7910] The governing body must also make available to the public the documentation upon which the appropriations limit is based. [~. ] ( 3 ) For purposes of Section 2, a public -7- RUTAN & TUCKEF-< ATTORNEYS AT LAW It DAATNER$HIP CONSISTING OF PROFESSIONAL CORPORATIONS entity is also permi tted to return the excess revenues by granting a tax credit or refund, or by providing a temporary suspension of tax rates or fee schedules, or by any other means consistent with the intent of that section. [ Govern- ment Code Section 7911] "Revenue" is defined as including only tax proceeds. [Government Code Section 7901(i)] (4 ) If the amount allocated from tax proceeds to subsidize a particular service is decreased, a downward adjustment of the appropriations limit is required. [Government Code Section 7913.] With these provisions in mind, the next section of the memorandum sets forth a checklist for the calculation of the appropriations limi t for the 1980-81 fiscal year, and for determining whether the budget for the 1980-81 fiscal year is in compliance. III. CHECKLIST FOR CALCULATION OF APPROPRIATIONS LIMIT AND COMPLIANCE STEP 1. The first step in calculating the appropria- tions limit is to identify "appropriations subject to limi- tation", i.e., authorizations to expend "proceeds of taxes" in the 1978-79 fiscal year. As noted above, "proceeds of taxes" cons is t of: (a) all traditional taxes; (b) income from the investment of tax proceeds; (c) the excess of user charges over the reasonable cost of providing the service; (d) income from investment of such excess user charges; and -8- R U 7...:.. >: & T L.; C ;.-( ;::: ~ ATTORNEYS AT LAW 4 PARTNERSHIP CONSISTING OF PROFESSIONAL CORPORATIONS (e) state subventions, other than for mandated programs for which the state reimburses the public entity or expenditure of which is restricted. STEP 2. The second step in calculating the appropria- tions limit is the deduction of appropriations which are not subject to limi tation. These appropriations include: (a) debt service; (b) appropriations to comply with court mandates, (c) appropriations of certain exempt special districts; and (d) the appropriations for local agency loan funds, indebtedness funds and investment funds. If a district qualified under the 12 1/2 cents exemption dis- cussed above, it would be totally exempt from Gann and no appropriations limit need be calculated. STEP 3. The figure derived in Step 2 (net proceeds of taxes) is multiplied by the change in the Consumer Price Index for the year 1978. . This change, as calculated under SB 1352, is 1.102. STEP 4. The figure arrived at under Step 3 is multi- plied by the change in population for 1978. For th is purpose, SB 1352 utilizes the population change figure calculated by the Department of Finance for purposes of SB 90. A district will have to check with it to get the population figures for its area. The resulting product would have been the appropriations limit for fiscal year 1979-80, had Article XIIIS been in effect. -9- RUTAN & TUCKER ATTORNEYS AT LAW A PARTNERSHIP CONSISTING Of' PROFESSIONAL CORPORATIONS STEP 5. The 1979-80 spending limit is multiplied by the change in the Consumer Price Index for 1979. Under SB 1352, the figure for 1979 is 1.147. STEP 6. The figure derived in Step 5 is multiplied by the change in population for 1979. STEP 7. The final step in calculating the 1980-81 appropriations limi t is the making of the adjustments, if any, required by Sections 3 and 11 of Article XIIIB, as described above. STEP 8. Ha ving calculated the 1980-81 appropriations limit, the next step is to calculate the amount of proposed appropriations subject to limi tation for that year. The appropriations subject to limi tat ion in 1980-81 is calcu- lated in the same manner that the proceeds of taxes subject to limitation were calculated for 1978-79. That is, Steps 1 and 2 are repeated utilizing the figures for the anticipated "proceeds of taxes" in 1980-81. STEP 9. Having arrived at both the 1980-81 appropria- tions limit and the amount of appropriations subject to limi tation in that same year, the next step is to compare the two figures. Obviously, the appropriations of tax pro- ceeds must not exceed the limit for that year. STEP 10. The final step in the appropriations limi t procedure is to determine whether or not a district has any "excess revenues" for purposes of Section 2. As will be -10- RUTAN & TUCKER ATTORNEYS AT LAW Ii PARTNERSHIP CONSISTING OF' PROF"ESSIOHAL CORPORATIONS recalled, this is the section which requires the excess of revenues over appropriations to be refunded within two years of receipt. To make this determination, a district first looks to its total appropriations of tax proceeds for the year. A district then calculates the total tax proceeds to be received for the same period. If the tax proceeds to be received equal appropriations of tax proceeds, then no refund must be made. If this were not the case, however, and a district had tax proceeds in excess of its appropriations, it could avoid the refund required by Section 2 by appropriating, up its limi tation, the excess tax proceeds to the funds which the district is authorized to establish under Section 5. Where poss ible, the funds es tabl ished should comply with the provisions of the Government Code or other applicable Codes governing accounting and budgetary procedures. However, if these provisions conflict with Section 5, the constitutional provision prevails. With Section 2 in mind, a qistrict might wish to consider transferring its existing fund balances into reserve, contingency or other similar funds permi tted by Section 5, if it has not already done so. Thus, in subse- quent fiscal years, each of the enterprise funds of the district will show a zero balance at the beginning of the year, rather than a carryover balance from the preceding -11- RUTAN & TUCKER ATTORNEYS AT LAW A. PARTNCRSHiP CONSISTING OF' PROrES$IONAL CORPORATIONS year. The district may then budget as it has traditionally done, with the exception that, in reconciling expenditures and revenues, the budget will clearly show deficits financed by a draw-down of the reserve fund balances. ,,- -12- I I II , . LIMITATION OF GOVERNMENT APPROPRIATIONS. INITIATIVE CONSTITUTIONAL AMEND- . . MENl: Establishes and defines annual appropriation limits on state and local governmental entities based I on annual appropriatio':'s for prior fiscal year. Requires adjustments for changes in cost of Iivin~, populaf , ;' and other specified factors. Appropriation limits may be established or temporarily changed by electorh.~. Requires revenues received in excess of appropriations permitted by this measure to be returned by revision . of tax rates or fee schedules within two fiscal years next following year excess created. With exceptions, provides for reimbursement of local governments for new programs or higher level of services mandated by state. Financial Impact: Indeterminable. . .' I (' ,.\; ,- 1UA-R~-v\. .:....-t,,- (~ Spirit of 13 Initiative Ar1lCle XIII B .s Mldod 10 read ARTICLE XIII B. Sec. 1. The loIal .nn....' .P9IOOfillllOfl' subjoct 10 limillllion ollhe '181" .nd 01 ellCh Ioc8I go....rnmenl &hall not e."""'" the .pprOl>""lIon. hm.1 of such enllty 0' go....rrun<<lt lor the prior rNr edlu5led for Cl\anoes In lhe cost of living end population e.eept lIS Otherwise proWled in thil A~. . Sec. 2. Revenues received by Bny entity 01 government in excess ot thai amount which ia .pproprieled by such "nt,ly '" compl,ance with lhis Ar\JCIe during the fiscal year shall be "'Iurned bW. reviStOn 01 La. rales 01 tee schedules W1.htn the nert two subsequent fiscal years. Sec. 3. The .pptOpriIIllon' ~mot lor any h....a1 year pursuanllo See. 1 IhaD be edjusted .. IoIIow1: I.) In lhe e....nt Ihalthe lin.ncial ,esponsibility o. providing ~ice& is translerred. In whole Of in part. whel'- by .nneullOn. incorpor.llOn or othe<wile. lTom one entity 01 govem- ..-..1 to .nothe,. then 'Of lhe year in whICh such I,.nsf", I>ec:<>..- eIlective the epp<opnaIoons limit at the tranatef6e enllty shaD be Mlctused by such reasonable amount as the said ontihes &hall mutu.lly __ and U... .pproprjatJons Itmil 01 the l1.nsferor entily &hall be doaeesed by the ume .mounl Ibl'n lhe ev"nl.ha1 the ''''.ne..1 responsjbility 01 providing services is translttfT"ed. An whOle or tn part. from an entity of oovemmen1to a ptiv81e entity. Of the tinancielloOUr'C8 for the provialon 01 sorvces is trans'erred, in whole Of' in pert. from other revenues of an entity of OO~ "-"llo regu18lory Iteenses. u.... ~ or us<< fees. .hen 'or the year 01 such l1anal'" \he approp""bon.ltmit of such enlity 01 go....rnmenl &hall be decreased ec:eordingly. lelln the evenl 01 an """""9"f1l. the .ppropn.llOn Iimil ttiIIy be ".oeeded proWled that the appropt'iahon limits in the tollowu'''9 three years are reduced accordingly to prevent an agorevale Increase In appropnallOns rasuhlnQ trom the emeIoency. Sec. .c. The aOPfopnalJonS limit imposed on any new Of' existing entity 0' ooyommenl by this Article ttiIIy be "....bI..hed or changed by the eleclors 01 such entity. SUb""" 10 .nd in conlormity with conslitutionaf and lUlutory vot,no reQUIrements. The duralion of anv SUCh cnanoe shall be as determtned by sa,d ekK:1ors. but shallm no .""ent eaoeod tour yea,"S from the most recent Yale of said eteet0r5 creahno Of conhnu,no SUCh chenoe. Soc. 5. Each enllly 01 go""",""",t "",y .....bhsh such conlingency. ernervencv. """mpIOy- ..-..l ............ ret"_l ',"king Iund. IIUSI. or simila< Iunds as it shall deem reesonabIe end PfOPC"'. Conlnbulllons 10 any such tuneS. to the tUlontthal such conlribuhons ant derlyed trom tile proceocl. 011...... shAll tor purw.... of IhlS Ar10eJe conIIltut" epp<opriations subject 10 limitatIOn in the yea' 01 oonlnbubon. Neither ...thdrww",'rorn .ny such Iund. nor ".pencjitures o. (or .uthor- lzalion. 10 upend) suet! wrt_A1a. nor tran,len; be_ Of emong such funds. &haY tor our. po_ ollhl'- Ar1d" conslltute appropnallon' subtecllO ItmitallOfl. Sec. 6. Whenev", lhe legrsla"Jfe Of any SIa'" agency ""'nd.t... a new prooram or hig- levee of servtCe on any k>c.al oovemmonl. the stale shall protrido a subventtOn of fund5 to retrntM...cr5e auch Jocat OO""fJmment'OI the C05lJ, 01 IUd1 prooram Of .ncreased k!twet 01 service, e~ceQC that the Leo.....lur. may. bu1 need not. prOvide SUCh subvenhon of funds tor the loUowlng mandates ~.) L09'si.',yo mendalos roqvestod by the k:M;;a1 egoncy a"ected; (b) l6QlslaUon deflntnQ a new Clime Of chanQing an exabno dehnitlon of . CIlme. Of Ie) legl"o',ve "",no.l... enacted poor 10 J.nu." 1. 1975.0' e.ec:ull.... order$ or reguLallOn. inllially tmplemenhnvle<,j\SUhon enacted poor IOJ.n...." 1. 1975. Sec. 7. NolhlflQ in IhlS ArtlCkt shall be conlttuDd to impalf the abdily 01 the state or of any local gowem",ent to meet .1.5 obhoahof\S with rosped 10 eai5ling or tuture bonded indoblednes&. Sec. 8. As used tn ihl' Artade aod except 8'S OUlOt'WISe ea.pres5ly provtded heretn: (.)'Aoorop<..11On1 subpecllO 1im'18l1On' o. the stal""",,II mean .ny aulhortzahon 10 expend durtno. tiK:a.l year thO procoodS 01 la_os JevHJd by Of tor the ....,.. ..dus..e ot slate J.ub-. venllOfl.tor the use .nd oper.tionol Ioc8I govemmenl (011"" than subvenllonl mede pursu.nllo SectlOfl 6 01 thi. Article) _ lurthe, e.elu...... at relundl 01 llI.es. benefil pay..-..lllrom ,.t".. men... unemployment in....enco end diseblikly inSUfttf1Ce funds; Ib)" Appropnalions IUbted to limi18hon ol.n entity o. local go....mment shall',""." any .utho<Wohon '0 e&pend during. "seal year lhe proc:eed$ 01 ..... Ie,""" by Of 'or thai entity .nd the proceeds olllllle sub.....hons 10 thai enllty (aU- I",," subventIOnS made ~'Io Sec' tion 6 01 this Articl,,) e.elusi.... 01 relund, ollll'es; lelnproceedso' ...es" shall include. but not be reRricled 10. .11 Ill. re..-ues.nd .he proceed. lO.nenOtyolgovemmenl. I,om (l)regutatoryllc:enses. _charges. andu....l_slO the ealent Itl.l such proceeds e."""'" the cost, reason.bly borne by such enlity in providing lhe ,- talion. producl Of ~ice..nd rli) the investment 01 tal "'ven.... With respect 10 .ny Ioc8I 9O""~ menl -proceocls o. Ill...." shaft Include subventions receiwed ITom .he wle. other lhan pursuant 10 SectIOn 6 ollllil Article. and. with rnpect 10 the Ilele, proceeds 01 ...... &hall eaclude SUCh subven'ions: Id) -locat governmen." _ mean any city. counly. c:i1y and county. schOOl d,otric:t, special dislricl.uthorlly. 0( other poIilical IUbdivision o. or within the wte: Ie) -Cost olliv,"~f shall mean !he Consumef Price lode. lor ,he Unrted 5"1". as reported by the Un~ed Sta.... Oepertmen' 01 Labof. or successor agency 01 lhe United Sillies Go_t; provided. __.thaltor purposes 01 SectIon 1. .... change in coil 01 living trom the prec:odu>g y.... &hall in no e.....' e.ceed the chanQe in CaOlomla per capi" personal I""""'" lTom said procedlng year; 10 -Populalion" 01 .ny entity 01 9O-l other ""'" . school dilltlel shall be determined by . method prescribed by lhe Legislatu,e. provided that IUCll det""",,,.lIon shall be ",vised. as necessary, 10 reflect the periodic: census conducted by lhe United SIlII... Depan. men! 01 Commerce. Of successor agency of the Unlled Sillies Governmenl. The populatIOn ol.ny schOOl dlllric:t shall be such school dislric:ll.verege do.y .l1endanee .s de.erm.ned by . method presctlbed by lhe levislalur,,= (g)-Debt ......""'. &hall meen ___lOlions required 10 pay .he cost 01 int...... '-n<! .-mpllOfl chaf98S, including lhe Iund.ng o. any ,eserve or Sinkinglund required in con n ''-_ilh. on in<lebtednMs ".isling or Ieg.lly euthorized .. 0' J.n...." '. 1979 or on L ..., indebtedness 'herealter .ppro_ &CCOrding'O .... by . vole of the llIeClon 01 the issuing enOly voting in an eHtcoon lor such purpose. (h) rne -appropriabons limff' 01 each entity of oovemmon1 tOf .ltCh IiscaJ YNr slwII be lhat .mounl which 101ll1.nnuaJ .ppropnalions subject 10 lim.tatlOn may nol e."""'" under Sec. toon 1 and SectIOn 3; provided. howe_..hat lhe "appropr1ltlionl bmit' 01 each "nli'y 01 9Ov",nn-.1 IOf liscal year 1978-79 shall be .he tollll o. .he epp<oonatlons subject 10 hrn.1lI11Ofl olluch enll'y lor thatllsc:.a' year. FCC' fiscal year 1978.79. stal. subventions 10 k>cal OO~mmenl&. ...duaive o' ledetal grBnts.. shall be deemed to hlIwe been denved from the proceedS 01 .....te ....es. (i) E.cepl.. Olhe1wile provided in SectIOn 5. n.pproprielion. sul>tec. 10 hmllllllOfl' &haft not Include local .gency loan IundI or indebtedness lunds. in......menllor .ulhonDllOf1' 10 Inv_) tunds 0111", .1lI1". or 01 an enlity 0I1oc81 90-1 '" llQCIOUnlS .1 ban~1 or u,"ngI.nd k>an as::soc:sahons or in "Quid securities.. See:.. 9. nApp<epriallonS subjecl'o Ilmit.lionntor each enUty 01 go"","menl .hall nol include: ..) Debt service Ib) Appropria'IOn' rttQWred lor _ 01 complying with mandates of ,he courts or Ihe.ecIenII govemrn<<ol which. w.,hoot dl$Cfttlion. require an e.pen'tll..e lor addlhonal......lC8I 0' _ Uf\8lIOICiably make \he providing o....tsling......lC8I more costfy. Ie) Appr__iII'lOn.of any specaaldistnct whche.isledonJ.n.-y 1. 1978. .ndwhic:h diO not... of the 1977-78 hseal year levy.n ad valorem Ill. on property in ,,"ceuol 12}i,cenlS per $100 01 assessed v..uo; Of the appropr~tlOf\s o. any special dlSSnd then exISting or lhere.aner crealed by . vole of the people. whoc:h IS totally Iunded by other lhan the proc:eedI 01 ....... Sec. 10. Thi. Ar1K:le shall be e"eclive oom""""""ll with .he Iir$l day 01 lhe IiSCIII y- l-.,g III acIopllOfl. Sec. 11. II .ny .ppropriallOfl cateoorY shall be added 10 or removed "om _Lat""" aubted to limubon. pursuanl 10 llnel tud9menl o. .nyo coot1. 01 competent junldectlOn and .ny ._I-.om.lhe .ppropnatlOnS loml' &hall be ~usled ac:c:ordlngly. lI.ny ...clion. part. Clause Of phrase tn rhrl ArtN:te IS &or any reason hekt U'lyahd or unconwtuhona.. tho remalOtnQ po/bons 0I1hoI ArtJcle &hall not be ."ected but &haft "'ttiII.n In lull torce and ,,"oct. . \, EXHIBIT A -~ /. -2- hie under the provisions of this section shall be d to the state department, and shall be deposited nent in the General Fund. It is the intention of t the costs of carrying out the purposes of this ~red by the revenues collected pursuant to this 606 is added to the Health and Safety Code, to ite department, in consultation with the Task ealth Nursing of the California Conference of rs, shall implement a pilot program which allows qualify for certification as public health nurses lination of educational, practical public health and successful passage of an examination. in the pilot project described in subdivision (a) -nia-licensed registered nurses graduated from !1e United States who (1) hold a baccalaureate ~r than nursing and have additional public health ( and public health nursing experience, or ureate degree in nursing from a school not :ational League of Nursing, or (3) have public erience and additional public health nursing 1accalaureate degree. epartment shall charge each applicant for ~ ~ program a fee, equal to the cost of rr -. pursuant to subdivision (a), but not to .). :> \$35). emain in effect until January 1, 1985, and on such ~ss a later enacted statute chaptered on or before extends such date. The department shall report jescribing the competency testing mechanism ,'aluating the program to date, making r legislative action. Such report shall include the s. certified under this pilot program, the number wed certification, the success of such certified Ig employment, and the value of using the est to test all applicants for public health nurse .'aluation of the project shall be ~'ased on the and its ability to screen applicants for their )etence to perform as public health nurses. Such ~ on or before July 1, 1983. o 91 70 Senate Bill No. 1352 CHAPTER 1205 An act to amend and renumber Section 7900 of, and to add Division 9 (commencing with Section 7900; to Title 1 of, the Government Code, relating to state and local government. [Approved by Governor September Zl, 1980. Filed with Secretary of State September 29, 1980.] LEGISLATIVE COUNSEL'S DIGEST SB 1352, Marks. State and local government. Proposition 4 on the ballot for the Special Election held on November 6, 1979, added Article XIII B to the Constitution to place various limitations on the fiscal powers of state and local government. This bill would provide for the implementation of Article XIII B by defining various terms used in this article and prescribing procedures to be used in implementing specific provisions of the article. . The people of the State of Califorma do enact as follows: SECTION 1. Section 7900 of the Government Code, as added by Chapter 220 of the Statutes of 1980, is amended and renumbered to read: 7902.5. The governing body of any city incorporated after July 1, 1978, but prior to January I, 1980, may, by resolution, adopt an appropriations limit for the purposes of Article XIII B of the California Constitution determined in the following manner: (a) If the city's first full fiscal year of operation was the 1979-80 ,fiscal year, the appropriations limit of the city for fiscal year 1980-81 shall be equal to the total amount of proceeds of taxes received for fiscal ear 1979-80 adjusted for changes in the cost of livin and po ation an suc 0 er canes as may ere uire or ermitted . y Artic e . . (b) If the city's first full fiscal year of operation is the 1980-81 fiscal year, the governing body of the city shall, prior to July I, 1980, estimate the amount of revenue anticipated to be received by the city from the proceeds of taxes for the 1980-81 fiscal year. This amount shall be the appropriations limit of the city for the 1980-81 fiscal year. For the 1981-82 fiscal year and each fiscal year thereafter, the appropriations limit of the city shall be equal to the total amount of proceeds of taxes received for fiscal year 1980-81 adjusted for changes in the cost of living and population and such other changes as may be required or permitted by Article XIII B. SEe. 2. Division 9 (commencing with Section 7900) is added to - . . , . ~. l._ _ _...._ . '-' .. ..... - ;,.:-f~ ~~~~~~~~ ~ -=- .:.-'. " , .< '-:_:-:::". :--:. ..-::-..:~ .. :~ :1 .,~ ':~ . -' .: ;,~';'C'f:"" .~~J;';',~ " ;0,",' Ch. 1205 -2- Title 1 of the Government Code, to read: DIVISION 9. EXPENDITIJRE UMITATIONS ;l ~~ ~ '~.' ~ :;:,. ~ ;d ~ ~ ,,.. ~ '{;. 7900. (a) The Legislature finds and declares that the purpose of this division is t,o provide for the effective and efficient implementation of Article XIII B of the California Constitution. (b) It is the intent of the Legislature that citizens be proVided with timely information so that effective oversight can be accomplished at the local level. 7901. For the purposes of Article XIIIB .of the California Constitution and this division: (a) "Change in California per capita personal income" for a calendar year means the number resulting when the quotient of the California personal income, as published by the U.S. Department of Commerce in the Survey of Current Business for the fourth q1;Ylrter of a calendar year divided by the civilian population of the state on January 1 of the next calendar year, as estimated by the Department of Finance, is divided by the similarly determined quotient for the next prior year. For example, the change in California per capita personal income for 1979 (to be used for computing the _appropriations limit for the 1980-81 fiscal year) would equal-the fourth quarter 1979 personal income divide a by the January 1, )0, population, the quotient divided by the fourth quarter 1978 personal income divided by the January 1, 1979, population. (b) "Change in cost of living" for a calendar year means the number resulting when the United States All Urban Consumer Price Index for the month of March of a calendar year is divided by such index for the month of March of the prior calendar year. (c) "Change in population" for a local agency for a calendar year means the number resulting when the percentage change in population between January 1 of the next calendar year and January 1 of the calendar year in question, as estimated by the Department of Finance pursuant to Section 2227 of the Revenue and Taxation Code for each city and county and Section 2228 of the Revenue and Taxation Code for each special district, plus 100, is divided by 100. For example, the change in population for 1979 would equal the percentage change in population, between January 1, 1980, and January 1, 1979, plus 100, the sum divided by 100. For purposes of the state's appropriations limit, "change in population" means the number resulting when the civilian population of the state on January 1 of the next calendar year, as estimated by the Department of Finance, is divided by the similarly estimated population for January 1 of the calendar year in question. For example, the change in population for 1979 (to be used for computing the appropriations limit for the 1980-81 fiscal year) would equal the January 1, 1980, population divided by the January 1, 1979, population. . (d) "Change in population" for a ,school district means the ,~.' ~- :::'. ::''\.- :.~ ... .:: f~ ,llt .-:~ ~ :...~. .\;" .i" f,i: .~,;.~ .....:<:: ~'3' ~~~~ 89 70 '-~-: . ..: '....'.:, . . .~t- ...... ..... - . .:;~ ....: ,- -.. " . '~.:.:. ....- '" ;.. :,-", ",: .' .,' :.~\ . ....~.. -2- mment Code, to read: \j 9. EXPENDITURE LIMITATIONS egislature finds and declares that the purpose of o provide for the, effective and efficient Article XIII B of the California Constitution. .nt of the Legislature that citizens be provided mation so that effective oversight can be ~ local level. purposes of Article XIII B . of the California is division: California per capita personal income" for a s the number resulting when the quotient of the income, as published by the U.S. Department of urvey of Current Business for the fourth quarter '.ivided by the civilian population of the state on t calendar year, as estimated by the Department ~d by the similarly determined quotient for the r example, the change in California per capita for 1979 (to be used for computing the t for the 1980-81 fiscal year) would equal the r-4It..1 income divided by the January 1, 1980, :, .~ded by the fourth quarter 1978 personal the January 1, 1979, population. cost of living" for a calendar year means the ~en the United States All Urban Consumer Price 1 of March of a calendar year is divided by such 1 of March of the prior calendar year. ' opulation" for a local agency for a calendar year r resulting when the percentage change in January 1 of the next calendar year and January ar in question, as estimated by the Department t to Section 2227 of the Revenue and Taxation nd county and Section 2228 of the Revenue and lch special district, plus 100, is divided by 100. For ge in population for 1979 would equal the in population between January 1, 1980, and 100, the sum divided by 100. For purposes of the ns limit, "change in population" means the vhen the civilian population of the state on : calendar year, as estimated by the Department led by the similarly estimated population for .ndar year in question. For example, the change !g (to be used for computing the appropriations 1 fiscal year) would equal the January 1, 1980, ~y the January 1, 1979, population. population" for a school district means the --ct .. ,.,..~ .~~, .~: .. . .... . ":'.t .,.~. . .:.::'~~;'::(~ -,.'~~.:~" ~~~:~:-}:~~: I ~: _. . .__:... ' :,:~:::~,:~~~. ':-~, ...:, . 1. _~ " ~. . . .;;~~.. .1 , . -J:.( "of: :' ~' :-:,,_.."'....... -3- Ch. 1205 . 89 100 - ..... ' :'j. }! -'..r- ;...,. ::0<: ',;; ~ .'~:; . '-;;?.1: ;,ii.. ,;~ .1~ ".:;~ -'..~'" ]1 ~-~ ~?1 ;~ CD .~r ... -.; - .:.~'~"'~- .. -.., ~ J . .' ," _. :'.L~~~',,: .. " . - '~~f~~.;;;~;r~~ . - ...-.~'...,.p.~-"", . Ch. 1205 -4- l . i it r ~ ~ i .~. "y.- ~ .~ .......: .'> -" user fees except to the extent that such proceeds exceed the cos reasonably borne by such entity in providing the regulation, produc or service. " 7902. (a) For the 1980-81 fiscal year, the appropriations limit ( the state and of each local jurisdiction shall be determined as follow (1) Multiply the total amount of appropriations subject t limitation of each such entity for the 1978-79 fiscal year by the less€ of the change in cost of living for the 1979 calendar year or th change in California per capita personal income for the 1978 calenda year, and multiply this product by the change in population of eacJ such entity for the 1978 calendar year. (2) Multiply the product determined pursuant to paragraph (1 by the lesser of the change in cost of living for the 1980 calendar yea or the change in California per capita personal income for the 197! calendar year, and multiply this product by the change in populatior of each entity for the 1979 calendar year. The resulting product, a adjusted for other changes required or permitted by Article..{CIII f of the California Constitution, shall be the appropriations limit 01 each entity for fiscal year 1980-81. (b) For the 1981~2fiscal year and each year thereafter, the appropriations limit of the state and of each local jurisdiction shall equal the appropriations limit for the prior fiscal year multiplied by the lesser of the change in cost of living for the calendar y.~ar in which the fiscal year begins or the change in California per .Jita personal income for the calendar year preceding the beginnulg of the fiscal year for which the appropriations limit is to be determined, the product multiplied by the change in population of the local jurisdiction for the calendar year preceding the beginning of the fiscal year for which the appropriations limit is to be determined, and adjusted for other changes required or permitted by Article XIII B of the California Constitution. (c) For the purposes of this division, if a local agency's fiscal year begins on January 1, the agency shall base its appropriations limit on its appropriations subject to limitation for the'}979 calendar year. For such agency, the 1981 calendar year shall be the first year for which the appropriations limit shall apply. For purposes of the computations required by this section, such agency shall use the change in population, cost-of-living, and per capita personal income factors which it would have used had its fiscal year begun on the previous July 1. 1 7903. "State subventions" shall include only money received by << a local agency from the state, the use of which is unrestricted bx the ~tatute prOVIdIng the subvention. 7904. In no event shall the appropriation of the same proceeds of taxes be subject to the appropriations limit of more than one local jUrisdiction or the state. 7905. Revenues to a local jurisdiction from resruJatory liC'pn<:e<:, user char es, or user fees may be aggregated if they are reasonably ....I~ ...- .',', ~~':3~-';:!S~t~~;~:~~:;~:.:- : ~:~. ..- ;-...~::,...,';"~~., .."...-; \...,..- ;.....',c.(. . , .. . -4- ) the extent that such proceeds exceed the costs y such entity in providing the regulation, product, he 1980-81 fiscal year, the appropriations limit of h local jurisdiction shall be determined as follows: e total amount of appropriations subject to Jch entity for the 1978-79 fiscal year by the lesser :ost of living for the 1979 calendar year or the I per capita personal income for the 1978 calendar ~is product by the change in population of each 1978 calendar year. product determined pursuant to paragraph (1) ~~ang: in cost of. living for the 1980 calendar year Jiforrua per capita personal income for the 1979 nultiply this product by the change in population 1e 1979 cale~dar year. The resulting product, as hanges reqwred or permitted by Article XIII B )nstitution, shall be the appropriations limit of 1 year 1980-81. . -82 fiscal year and each year thereafter, the of the state and of each local jurisdiction shall ions ~t for the. ~rior fiscal year multiplied by ':!!8" cost of liVIng f~r the. cale?dar year in _ or the change ill Califorrua per capita . lue calendar year preceding the beginning of Ich the appropriations limit is to be determined ied by the change in population of the locai ~alendar year preceding the beginning of the he appropriations limit is to be determined and langes required or permitted by Article xiII B lstitution. . ies of this division, if a local agency's fiscal year :he agency shall base its appropriations limit on ject to limitation for the 1979 calendar year. For ~ calendar year shall be the first year for which limit shall apply. For purposes of the ~d by this section, such agency shall use the ,cost-of-living, and per capita personal income d have used had its fiscal year begun on the 'ntions" shall include .onl~ money received by e state, the use of which IS unrestricted by the subvention. hall the appropriation of the same proceeds of e appropriations limit of more than one local :e. a local jurisdiction from regulatory licenses ees ma: be aggregated if they are reasonabl~ -e B9 130 .. ... . - t.~. '~..j.:~;:. ';. .' :.!.~ . .. .... "';..-..-, '.. r -.... ~."1 j : -'.' "';';~.:,~:~:f.;~:; . .. '- . '.~:.:.>;:.<;"':" ... -5- Ch. 1205 related. 7906. For school districts: (a) "ADA" means a school. district's sec~nd principal apportionment units of average dall~ attendance ill .the regular school year, excluding' average daily attendance ill s~er programs, adult education programs, and regional occupational centers and programs. (b) "Foundation program level" means: (1) For the 1978-79 fiscal year, one thousand two hundred forty-one dollars ($1,241) for elementary districts, one thousand three hundred twenty-two dollars ($1,322) for unified districts, and one thousand four hundred twenty-seven dollars ($1,427) for high school districts. (2) For the 1979-80 fiscal year and each fiscal year thereafter, the levels specified in paragraph (1) increase~ by the les.ser of the change in cost of living or California per capIta personal illcome for the preceding calendar year. ?l' (c) "Proceeds of taxes" shall be deemed to include subventions received from the state only if those subventions are for one of the following two purposes: (1) Basic aid subventions of $120 per ADA. (2) Additional apportionments, if any, which, when added to the district's local revenues as defined in Section 42237 or 42238 of the Education Code do not exceed the foundation program level for that type of district. Any apportionments which are provided in ~xc~ss of the amount needed to increase a district's 1978-79 revenue hmlt per ADA by the lesser of the change in cost of living or California per capita personal income, shall not be considered to be proceeds of taxes for that school district. (d) The remainder of the state ap~orti~nments, ~cluding special purpose apportionments and categoncal ald .su~ventions shall not be considered proceeds of taxes for a school dIstrict. 7907. For county superintendents of schools: , . (a) "Proceeds of taxes" shall be deemed to. include sub~entions received from the state only if those subventIons are receIved for programs operated pursuant to: . (1) Subdivision (e) of Section 2500, Sec~on 2500.1, Se~tion 1982 for pupils specified in subdivision (c) of Section 1981, Section 14057 !'or programs operated pursuant to Sections 48633 and 48634, Sec~on 1904 and subdivision (a) of Section 1908, Section 52570, or Section 1806 of the Education Code; or (2) Section 1510,2504,2506,2506.5, or 2509 of the Educ~ti.o? Code. (b) For programs identified in paragraph (1) of subdivlSlon (a), an amount shall be calculated equal to the appropriations made for those programs from the proceeds of taxes for the 1978-79 fiscal year. adjusted for the 1979-80 and 1980-81 fiscal years by the l.esser of the change in cost-of.living or change in California per capIta person~l income applicable to each year and by the percentage change ill B9 l:iO - , , ~ll i~ ~t f' ;'llI ~ ~ ~I ii;j ,~ ....~ ~..4' -~. ~: ~ . ~":;.: .~- .:..... .~,.; .:;~,!, ~f. ~i~ -i$ .~ ~ .,ii:r ~~~. '.if?; ~. 7;.~~ ~j ~ {rs"f! '8 '~:.. '.' ~':"J....: ....~ . ....~ ,', ~.,;~~" ..(:"(~':* ~M~'~ Ch. 1205 -6- average daily attendance in those programs for the 1979-80 and 1980-81 fiscal years. (c) For all other programs operated by the county superintendent of schools, including, but not limited to, the programs identified in paragraph (2) of subdivision (a), an amount shall be calculated equal to the appropriations made for those programs from the proceeds of taxes for the 1978-79 fiscal year, adjusted for the 1979-80 and 1980-81 fiscal years by the lesser of the change in cost-of-living or change in California per capita personal income for each year and by the percentage change in population (as defined by subdivision (d) of Section 7901) for all the districts in the county for the 1979-80 and 1980-81 fiscal years. . (d) The sum of the amounts calculated in subdivisions (b) and (c) shall be the appropriations limit for the county superintendent for , the 1980-81 fiscal year. (e) For the 1981-82 fiscal year and each year thereafter, the appropriations limit for the prior year shall be adjusted by the appropriate average daily attendance and the lesser of the change in cost-of-living or California per capita personal income. . (f) State apportionments to county superintendents in excess of the amounts in (d) or (e) shall not be considered proceeds of taxes for a county superintendent of schools. 7908. For community college districts: (a) As used in this section, "ADA" means the annual average r'-'ly attendance reported for students attending the community co.. oe district during the fiscal year. (b) "Proceeds of taxes" shall be deemed to include subventions from the state only if those subventions, when added to the district's local resources, as defined in items (2) and (3) of subdivision (a) of Section 84904 of the Education Code, do not exceed: (I) For the 1978-79 fiscal year, the lesser of the statewide average revenues or the 'actual revenues received per ADA, as defined in paragraph (I) of subdivision (c) of Section 84700 of the Education Code, multiplied by the ADA in the district for the 1978-79 fiscal year. (2) For the 1979-80 fiscal year and each fiscal year thereafter, the amount specified in paragraph (1) adjusted by the lesser of the change in cost-of-living or California per capita personal income for the preceding calendar year and the percentage change in the district's ADA for that fiscal year. . (c) The remainder of state apportionments, including special purpose apportionments and categorical aid subventions, shall not be considered proceeds of taxes for a community college district. 7909. No later than May 1 of each year, the Deparhnent of Finance shall notify each local jurisdiction of the change in the cost-of-living or change in California per capita income, whichever is less, and population for each local jurisdiction for the prior calendar year. 89 1m .~ ...~. <....... ~~ -6- jance in those programs for the 1979-80 and rograms operated by the county superintendent , but not limited to, the programs identified in :livision (a), an amount shall be calculated equal ; made for those programs from the proceeds of fiscal year, adjusted for the 197~ and 1980-81 iser of the change in cost-of-living or change in :1 personal income for each year and by the n population (as defined by subdivision (d) of the districts in the county for the 197~ and ~ amounts calculated in subdivisions (b) and (c) iations limit for the county superintendent for IT. -82 fiscal year and each year thereafter, the for the prior year shall be adjusted by the iaily attendance and the lesser of the change in ornia per capita personal income. . unents to county superintendents in excess of r (e) shall not be considered proceeds of taxes endent of schools. nity college districts: ;~"ADA" means the annual average daily pents attending the community college cal year. lXes" shall be deemed to include subventions :hose subventions, when added to the district's ined in items (2) and (3) of subdivision (a) of ~ducation Code, do not exceed: . ) fiscal year, the lesser of the statewide average u revenues received per ADA, as defined in livision (c) of Section 84700 of the Education he ADA in the district for the 1978-79 fiscal fiscal year and each fiscal year thereafter, the ;>aragraph (1) adjusted by the lesser of the g or California per capita personal income for ar year and the percentage change in the : fiscal year. of state apportionments, including special ts and categorical aid subventions, shall not be f taxes for a community college district. n May 1 of each year, the Department of 'ach local jUrisdiction of the change in the ~ in California per capita income, whichever Jr each local jurisdiction for the prior calendar --.0 B9 180 -7- Ch. 1205 ';/I B9 l100 - ~ E Ii j- ~; ~l~ ~n i ~~ :!1 ~~. 3~~ ~~ -f-;; ~~ !!~ ......... ~~~ ~~;.. e 'i ~ ~; <;~~ ~ ~ .~ .~! .--/'~ '1 ,; "':'" . ....: )'.~, . .. . ~ !I ~ ':'" -. .':"..'.~'>...~ '):'~'.. . ". '..' :-..,~~:;s.i:;,'S~-F;.:~, ~.~.. ..~ .....:..o-....::",(,.:.-',~..,..;. .~..IiJ.~~U' - Ch. 1205 -8- ,{ licenses, user charp;es, or user fees only when the dollar amount allocated from other revenues of a local 'urisdiction or the state to the rovision 0 sue services is ecrease. SEC. 3. The Legislature finds an eclares that Article XIII B of the California Constitution is intended to provide certain limitations and controls on government spending at all levels of government in the state, but these restrictions are intended to be applied in a reasonable and practical way so as to permit flexibility in meeting the constantly changing conditions and needs of the people for governmental services. By way of example, the California Constitution ~equires that the Legislature provide for a system of public schools and the courts of this state have held that a metht>d of financing this public school system which depends substantially on local property taxes with resultant wide disparities in school revenue violates constitutional provisions guaranteeing equal protection of the laws. If Article XIII B were construed to require that all money expended by a local school district was required to be included within its appropriations subject to limitation, attempts to accommodate each of these separate demands of the California Constitution could be substantially frustrated. The Legislature further finds and declares, accordingly, that equalization of the financial capabilities of school districts is a matter of statewide interest and concern and that,state money provi~ to school districts to achieve this end is properly excluded from .ite subventions" to local school districts as that term is used in Article XIII B of the California Constitution. Similarly, the various categorical aid programs provided by the state are provided as a matter of statewide public policy. The changing character of children and neighborhoods and the resultant changing needs of local school districts require flexibility in providing these programs which can only be achieved by characterizing these programs as state programs, thereby excluding state support for these programs from state subventions to local school districts. The Legislature finds and declares that the provisions of this act provide for the implementation of Article XIII B of the California Constitution in a manner which is entirely consistent with the intent of that article and the voters who adopted it, which accommodates competing constitutional demands, and which permits reasonable and practical methods of satisfying the future changing needs of this (state. ~ SEC. 4. A local jurisdiction which has esta~lished an a propriations limit prior to the effective date of this act sh I nevert e ess e p;overne y t e provisions 0 t is act. SEe. 5. If any provision of this act or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given 8P~ I- I h' (~ -8- ses, or user fees only when the dollar amount ~r revenues of a local jurisdiction or the state to ~h services is decreased. ;islature finds and declares that Article XIII B of jtution is intended to provide certain limitations ernment spending at all levels of government in ~ restrictions are intended to be applied in a tical way so as to permit flexibility in meeting the g conditions and needs of the people for ::es. re, the California Constitution requires that the . for a system of public schools and the courts of : that a method of financing this public school nds substantially on local property taxes with trities in school revenue violates constitutional eing equal protection of the laws. If Article ~d to require that all money expended by a local ~quired to be included within its appropriations n, attempts to accommodate each of these ,of the California Constftution could be ed. ~urther finds and declares, accordingly, that :1':WlcapabilitieS of school districts is a matter cern and that state money provided to Ut::V 's end is properly excluded from "state , school districts as that term is used in Article :tia Constitution. JUS categorical aid programs provided by the '15 a matter of statewide public policy. The f children and neighborhoods and the resultant local school districts require flexibility in ograms which can only be achieved by Jrograms as state programs, thereby excluding 'se programs from state subventions to local ds and declares that the provisions of this act imentation of Article XIII B of the California :ler which is entirely consistent with the intent , voters who adopted it, which accommodates .nal demands, and which permits reasonable of satisfying the future changing needs of this jurisdiction which has established an )rior to the effective date of this act shall ned by the provisions of this act. ision of this act or the application thereof to :ances is held invalid, such invalidity shall not or applications of the act which can be given -8 '. -9- Ch. 1205 _tt .thout the invalid provision or application, and to this end the ~~~ hI ' . 'ons of this act are severa e. proVlSl .... o " 89 230 ,~~.!a\:1':;i;' .,;~:~~~li~-&~~f.;:1.~-" :i.~', ';::;;:: " ',:;ft, '.' ~~..',:,;-_,~~..~.~ ..-~,:;.t:.n,'~,'..'~.~:.~,~..~_.~.iF.~~.r~~.~;ii~.~.r:.~.:~.t~.-~,~,'~'~.~~:'..\..~,~.t.~i{;".;~ii'~:d;~1~nir~:- ,.;.}':t:,,; ;i~..,:':~.:!,"'~" .,:;~."_'.,.-',,:~.~',."";;'\~ ..........-~~'1l~,:...~_~~,~~~-:~~~-'~:~,....~._":..l_..:r:!'~>_-:-/'.;._.:;.~," ,-r;.... ~ ",~..,......... ."-~,"T~" " , '_ ,_,' _,',_ Senate Bill No, 1389 CHAPTER 516 An act to add Article 3.5 (commencing with Section 53715) to Chapter 4 of Division 2 of Title 5 of the Government Code, reJating !o expenditure limitations, and declaring the urgency thereof, to !:aXe effect immediately. [Approved by Governor July 16, 1980. Filed with Secretarv of State Julv 17, 1980.] . LEGISLATIVE COUNSEL'S DIGEST SB 1389, Craven. Expenditure limitations: proceeds of taxes. Proposition 4 on the ballot for the Special Election held on \ovember 6, 1979, added Article XIII B to the Constitution to place \wous limitations on the fiscal powers of state and local rovernment. . This bill would make clear that certain revenues are not "proceeds of taxes" as that term is used in Article XIII B. The bill would take effect immediately as an urgency statute. The people of the State of Califorma do enact as follows: SECTION 1. Article 3.5 (commencing with Section 53715) is ldded to Chapter 4 of Division 2 of Title 5 of the Government Code. to read: " Article 3.5. Proceeds of Taxes -- ~ 9 .-- . --;,:..".- , :~~:~"'<;. :~:-~ ~;: -i~_ -, ..:.~- . u~--~. ~~ . .~_.;. "._., -of ~ -2- . mav be effec . . Ch. 516 of this .,tiele ffeet immed, . . nal re uirement:hat this act take e constitutio . is necessary Ossible, it as o l 1 t i I t t I I ,,-