HomeMy WebLinkAbout04.c. Establish appropriations limit for FY 2012-13Central Contra Costa Sanitary District. C
' BOARD OF DIRECTORS •
POSITION PAPER
Board Meeting Date: September 6, 2012
subject: ADOPT A RESOLUTION ESTABLISHING THE FY 2012 -13
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
Submitted By Initiating Dept /Div,;
Thea Vassallo, CPA, CMA Administrative /Finance & Accounting
Finance Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTIO '
T. Vassallo Kr Alm Ann Far ell,
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 appropriations limit in the
amount of $83,942,039 for the Fiscal Year (FY) 2012 -13, 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: None this year.
BACKGROUND: On August 2, 2012, 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 6, 2012 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
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 FY 2011 -12 appropriations limit.
The County Assessor has determined the non - residential construction index for
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POSITION PAPER
Board Meeting Date: September 6, 2012
subject ADOPT A RESOLUTION ESTABLISHING THE FY 2012 -13
APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION
FY 2012 -13 is not available. The California per capita personal income percentage
change is 3.77% and is being used in the calculation of FY 2012 -13 appropriations limit.
The appropriations limit computed is $83,942,039 for FY 2012 -13.
The total District Ad Valorem Tax budgeted for FY 2012 -13 is $12.9 million of which
$7.5 million has been allocated to the Sewer Construction Fund and $5.4 million is
dedicated for payment of the Debt Service Fund. Interest on total tax proceeds is
estimated to be $19,000. Therefore, tax proceeds allocated to the Sewer Construction
and Debt Service Funds, plus total interest earned, will be approximately $12,919,000,
which is significantly below the appropriations limit of $83,942,039.
RECOMMENDED BOARD ACTION: Adopt a resolution establishing the appropriations
limit in the amount of $83,942,039 for the FY 2012 -13 in accordance with Article XIII B
of the California Constitution using the change in the California per capita personal
income percentage for use in computing the appropriations limit.
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RESOLUTION NO. 2012 -073
A RESOLUTION ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2012 -13
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 and Debt Service Funds for Fiscal Year 2012 -13 to be $83,942,039; 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
Funds in the amount of $83,942,039 for the fiscal year ending June 30, 2013, based
upon the selection of the percentage change in the California per capita personal
income.
PASSED AND ADOPTED this 6th day of September 2012, by the Board of Directors of
the Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
James A. Nejedly
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