HomeMy WebLinkAbout03.d. Authorize public notice re appropriations limit for Sewer Construction FundCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS 3 A.
POSITION PAPER
Board Meeting Date: August 2, 2012
subject: AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF THE DISTRICT'S APPROPRIATIONS LIMIT
Submitted By Initiating Dept. /Div.:
Thea Vassallo, CPA, CMA Administrative / Finance & Accounting
Finance Manager
REVIEWED A RECOMMENDED FOR BOARD ACTION:
r
T. Vassallo, K. Alm
Finance Manager
Ann Farrell,
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: 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 6, 2012, at which the appropriations limit for
the Sewer Construction Fund for Fiscal Year (FY) 2012 -13 will be established.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: The appropriations limit can be calculated
using the California per capita personal income percentage change or the local
assessment roll due to local non - residential construction percentage change.
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. (Tax revenue to the
District comes from ad valorem taxes.) It limits appropriations of state and local
governments to the appropriations of the 1978 -79 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.
C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \DVCG8C5G\Authorize Public
Notice 08- 02- 12.doc
POSITION PAPER
Board Meeting Date: August 2, 2012
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 (1) the change in California per capita personal
income, or (2) 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 percentage change in California per capita personal income for FY 2012 -13 is
3.77 %. The change in the local assessment roll for FY 2012 -13 is not available from
the County this year because it recently converted to a new system that does not create
the Prop 111 report needed to report the local non - residential construction percentage
change. Instead, the District has been advised by the County to use the California per
capita personal income method in its calculation. In previous years, the District has
consistently used this method of calculation since, historically, it has been the larger of
the two factors.
A factor of 2.51 % was used to calculate last year's appropriations limit of $80,226,515.
Using the 3.77% factor, the appropriations limit for FY 2012 -13 is calculated to be
$83,942,039. This limit is set on the District's proceeds of taxes. The District expects
to receive approximately $12.9 million in ad valorem tax revenue for FY 2012 -13, which
is well below the appropriations 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 6, 2012, at which the
appropriations limit for the Sewer Construction Fund (tax revenue plus interest) for
FY 2012 -13 will be established.
C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \DVCG8C5G\Authorize Public
Notice 08- 02- 12.doc