HomeMy WebLinkAbout04.c. Sewer Construction Fund appropriations limitCentral Contra Costa Sanitary District
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BOARD OF DIRECTORS 7"• C.
POSITION PAPER
Board Meeting Date: September 1, 2011
Subject: ADOPT A RESOLUTION ESTABLISHING THE 2011 -2012
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
Submitted By Initiating Dept. /Div.:
Debbie Ratcliff, Controller Administrative /Finance & Accounting
REVIEWED AN ` ECOMMENDED FOR BOARD ACTION: o
D. Ratcliff ` F/. Mud raves Kent Alm James A. Kelly,
General Manager
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: Adopt a resolution establishing the Sewer Construction Fund
appropriations limit in the amount of $80,226,515 for the 2011 -2012 fiscal year, in
accordance with Article XIII B of the California Constitution; select the change in the
California per capita personal income percentage for use in computing the
appropriations limit.
FINANCIAL IMPACTS: None
ALTERNATIVES /CONSIDERATIONS: The appropriations limit could be calculated
using the change in the local assessment roll due to local non - residential construction
of -48.9 percent as opposed to the change in the California per capita personal income
percentage change of 2.51 percent.
BACKGROUND: On August 4, 2011, the Board of Directors authorized posting a
public notice of availability of documentation in support of the District's appropriations
limit. As statutorily required, the public notice was published at least 15 days prior to
the September 1, 2011 Board Meeting at which the adoption of the appropriations limit
is to be considered.
California's State appropriations limit, originally established by Proposition 4 in 1979,
places an "upper limit" each year on the amount of monies that can be spent from State
tax proceeds received. The annual limit is based on the amount of tax proceeds that
were authorized to be spent in fiscal year 1986 -1987, changed annually by a factor
comprised of the change in population combined with either the change in California
per capita personal income or the percentage change in the local assessment roll from
the preceding year due to local nonresidential construction. The Board must select
between the per capita personal income, or the change in the local assessment roll due
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POSITION PAPER
Board Meeting Date: September 1, 2011
subject ADOPT A RESOLUTION ESTABLISHING THE 2011 -2012
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
to local non - residential construction, by a recorded vote. Last year the Board selected
the change in the California per capita personal income percentage, which was the
larger of the two percentages, for the calculation of the 2010 -2011 appropriations limit.
The County Assessor has determined the non - residential construction index for
2011 -2012 to be -48.9 percent. The California per capita personal income percentage
change is 2.51. The percentage change in California per capita personal income of
2.51 is being used in the calculation of 2011 -2012 appropriations limit, to allow for a
larger limit on the District's proceeds of taxes. The Sewer Construction Fund (Capital
Fund) appropriations limit so computed is $80,226,515 for the 2011 -2012 fiscal year.
The District has budgeted $6.9 million of Ad Valorem Taxes for the Sewer Construction
Fund for fiscal year 2011 -2012, which is net of $5.3 million dedicated for payment of
debt service. Interest on total tax proceeds is estimated to be $20,300. Therefore, tax
proceeds in the Sewer Construction Fund plus total interest will be approximately
$6,920,300, which is well within the appropriations limit of $80,226,515 set for the 2011-
2012 fiscal year. The appropriations limit for fiscal year 2011 -2012 was reviewed with
the Budget and Finance Committee.
RECOMMENDED BOARD ACTION: Adopt a resolution establishing the Sewer
Construction Fund appropriations limit in the amount of $80,226,515 for the 2011 -2012
fiscal year, in accordance with Article XIII B of the California Constitution; select the
change in the'California per capita personal income percentage for use in computing
the appropriations limit.
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RESOLUTION NO. 2011 -050
A RESOLUTION ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2011 -2012
WHEREAS, the Central Contra Costa Sanitary District is required under Article XIII B of
the State of California Constitution to establish and adopt an Appropriations Limit for
each fiscal year;
WHEREAS, the District has determined the Appropriations Limit of its Sewer
Construction Fund (Capital Fund) for fiscal year 2011 -2012 to be $80,226,515; and
WHEREAS, the selection of the alternative growth factor between the per capita
personal income or the change in the local assessment roll due to local non - residential
construction must be made by recorded vote.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Central
Contra Costa Sanitary District does hereby adopt the Appropriations Limit for said Fund
in the amount of $80,226,515 for the fiscal year ending June 30, 2012, based upon the
selection of the percentage change in the California per capita personal income.
PASSED AND ADOPTED this 1St day of September 2011, by the District Board of the
Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
Barbara D. Hockett
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
COUNTERSIGNED:
Elaine R. Boehme, CMC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District
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