HomeMy WebLinkAbout04.e. Establish appropriations limitCentral Contra Costa Sanitary District ' e
' BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: September 4, 2014
Subject. ADOPT A RESOLUTION ESTABLISHING THE FISCAL YEAR 2014 -15
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 ACTION:
Roger S. Bailey
Counsel for the District General Manager
ISSUE: The Central Contra Costa Sanitary District is required to establish its
appropriations limit in accordance with Article XIII B, Government Spending Limitation,
of the California Constitution.
RECOMMENDATION: Adopt a resolution establishing the appropriations limit in the
amount of $89,854,209 for Fiscal Year (FY) 2014 -15, in accordance with Article XIII B
of the California Constitution; and select the change in the California per capita
personal income percentage for use in computing the appropriations limit.
FINANCIAL IMPACTS: None.
ALTERNATIVES /CONSIDERATIONS: None.
BACKGROUND: On July 31, 2014, 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 4, 2014 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 FY 1986 -87, 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 County
Assessor determined that the non - residential construction index was not available and
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POSITION PAPER
Board Meeting Date: September 4, 2014
Subject. ADOPT A RESOLUTION ESTABLISHING THE FISCAL YEAR 2014 -15
APPROPRIATIONS LIMIT, IN ACCORDANCE WITH ARTICLE XIII B OF
THE CALIFORNIA CONSTITUTION
the report is again unavailable for FY 2014 -15. The Board approved the u-se of the
change in the California per capita personal income percentage for the calculation of
the previous fiscal year's appropriations limit.
The California per capita personal income percentage change is -0.23% and that figure
has been used to calculate an appropriations limit of $89,854,209 for FY 2014 -15.
The total District Ad Valorem Tax budgeted for FY 2014 -15 is $13.7 million, of which
$8.2 million has been allocated to the Sewer Construction Fund and $5.5 million is
dedicated for payment of the Debt Service Fund. Interest on total tax proceeds is
estimated to be $12,000. Therefore, tax proceeds allocated to the Sewer Construction
and Debt Service Funds, plus total interest earned, will be approximately $13,712,000,
which is significantly below the appropriations limit of $89,854,209.
COMMITTEE RECOMMENDATION: No Committee review is necessary for this matter
because establishment of the appropriations limit is statutorily mandated under Article
XIII B of the California Constitution entitled Government Spending Limitation.
RECOMMENDED BOARD ACTION: Adopt a resolution establishing the appropriations
limit in the amount of $89,854,209 for the FY 2014 -15, 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.
Attached Supporting Document.
1. Proposed Resolution
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RESOLUTION NO. 2014- o3/
A RESOLUTION ESTABLISHING THE APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2014 -15
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 2014 -15 to be $89,854,209; 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 $89,854,209 for the fiscal year ending June 30, 2015, based
upon the selection of the percentage change in the California per capita personal
income.
PASSED AND ADOPTED this 4th day of September 2014, by the Board of Directors of
the Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
David R. Williams
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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