HomeMy WebLinkAbout03.c. Authorize public notice re appropriations limitCentral Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: August 1, 2013
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 AND RECOMMENDED FOR BOARD ACTION: / �P- 0�1t6
K. Alm C. 9wanson
Counsel for the District Provisional 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 5, 2013, at which the appropriations limit for
the Sewer Construction and Debt Service Funds for Fiscal Year (FY) 2013 -14 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 \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \DVCG8C5G\Authorize
appropriation limits 8- 01- 13.doc
POSITION PAPER
Board Meeting Date: August 1, 2013
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 2013 -14 is
5.12 %. Staff is trying to obtain the change in local assessment roll information for FY
2013 -14 from the County. The change in the local assessment roll for FY 2012 -13 was
not available from the County last year because it had recently converted to a new
computer system that does not create the Prop 111 report needed to report the local
non - residential construction percentage change. Instead, the District was advised by
the County to use the California per capita personal income method in its calculation. If
the report is again not available, the per capita factor will be used. In previous years,
the District has consistently used the per capita method of calculation because
historically it has been the larger of the two factors.
A factor of 3.77% was used to calculate last year's appropriations limit of $83,942,039.
Using the 5.12% factor, and after adjusting for the annual change in population, the
appropriations limit for FY 2013 -14 is calculated to be $88,919,318. This limit is set on
the District's proceeds of taxes. The District expects to receive approximately $13.7
million in ad valorem tax revenue for FY 2013 -14, which is well below the appropriations
limit.
COMMITTEE RECOMMENDATION: No Committee review is necessary for this
matter.
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 5, 2013, at which the
appropriations limit for the use in Sewer Construction and Debt Service Funds (tax
revenue plus interest) for FY 2013 -14 will be established.
C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Rev Authorize
appropriation limits 8- 01- 13.doc