HomeMy WebLinkAbout04.d. Authorize public notice re appropriations limitCentral Contra Costa Sanitary District
BOARD OF DIRECTORS / • �•
POSITION PAPER
Board Meeting Date: August 4, 2011
Subject: AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF THE DISTRICT'S APPROPRIATIONS LIMIT
Submitted By
Debbie Ratcliff, Controller
Initiating Dept. /Div.:
Administrative / Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
D. Ratcli R. M�, gra s, Admin James M. elly,
Controller Services Director General nager
ISSUE: The Central Contra Costa Sanitary District is required to establish its
appropriations limit in accordance with Article XIII B of the California Constitution.
RECOMMENDATION: Authorize a public notice advertising that documentation used
in the determination of the appropriations limit shall be available fifteen days prior to the
Board Meeting to be held on September 1, 2011, at which the appropriations limit for
the Sewer Construction Fund for the fiscal year of 2011 -2012 will be established.
FINANCIAL IMPACTS: None
ALTERNATIVES /CONSIDERATIONS: The appropriations limit can be calculated
using the California per capita personal income percentage change of 2.51 % or the
local assessment roll due to local non - residential construction of - 48.9 %.
BACKGROUND: Proposition 4 was approved on November 6, 1979, and was
incorporated in the California Constitution as Article XIII B. As amended, Article XIII B
imposes a limit on the rate of growth in governmental spending. Specifically, this limits
the spending of tax revenue plus interest earned on tax revenue. It 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 California per capita personal
income from the preceding year or the percentage change in the local assessment roll
from the preceding year due to the addition of local nonresidential new construction.
Article XIII B requires government agencies to establish their appropriations limit by
resolution each year at a regularly scheduled meeting. Notice to the public of
availability of documentation in support of the appropriations limit must be given fifteen
days prior to adoption. The appropriations limit is open to challenge within 45 days of
the effective date of the resolution.
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POSITION PAPER
Board Meeting Date: August 4, 2011
subject. AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF THE DISTRICT'S APPROPRIATIONS LIMIT
Methodology:
The appropriations limit is increased annually by a factor comprised of the
change in population combined with either the change in California per capita
personal income or the change in the local assessment roll due to local
nonresidential construction. The Board is to select between the per capita
personal income or the change in the local assessment roll due to local
nonresidential construction by a recorded vote.
The change in the local assessment roll for the 2011 -2012 fiscal year has been
reported by the County Assessor to be - 48.9 %. The California per capita
personal income percentage change is 2.51 %. The change in the California per
capita personal income percentage is being used in the calculation of the 2011-
2012 appropriations limit since it is the larger of the two (2) factors. Last fiscal
year's appropriations limit was calculated to be $77,663,616. The appropriations
limit for 2011 -2012 is calculated to be $80,226,515. This limit is set on the
District's proceeds of taxes. The District receives approximately $12.5 million in
taxes which is well below the limit.
RECOMMENDED BOARD ACTION: Authorize a public notice advertising that
documentation used in the determination of the appropriations limit shall be available
fifteen days prior to the Board Meeting to be held on September 1, 2011, at which the
appropriations limit for the Sewer Construction Fund (tax revenue plus interest) for the
fiscal year of 2011 -2012 will be established.
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