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HomeMy WebLinkAbout03.d. Authorize public notice for Appropriations LimitCentral Contra Costa Sanitary District 3•K• ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: August 6, 2015 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 Administration / Finance & Accounting Finance Manager REVIEWED AND RECOMMENDED FOR BOARD ACTION: Kent Alm 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 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 3, 2015, at which the appropriations limit for Fiscal Year (FY) 2015 -16 will be adopted. 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. 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 \IM9F5ZMU \8 -6 -15 Draft Authorize Public Notice re Appropriations Limit for SCF.doc POSITION PAPER Board Meeting Date: August 6, 2015 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 two methods. The percentage change in California per capita personal income for FY 2015 -16 is 3.82 %. With regard to the change in local assessment roll due to nonresidential construction, the County used to provide that information, but after converting to a new computer system several years ago, the report needed to calculate the percentage change is no longer generated. In previous years, even when the report was available, the District has consistently used the per capita method of calculation because historically it has been the larger of the two factors. Last year's appropriations limit calculated was $89,584,209. Using the 3.82% per capita personal income factor, and after adjusting for the annual change in population by 1.28 %, the appropriations limit for FY 2015 -16 is calculated to be $94,196,806. This limit is set on the District's proceeds of taxes. The District expects to receive approximately $13.8 million in ad valorem tax revenue for FY 2015 -16, 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 3, 2015, at which the appropriations limit for FY 2015 -16 will be adopted. N:\ADMINSUMADMIN \FINANCE MANAGER \Position Papers\2015 \8 -6 -15 Draft Authorize Public Notice re Appropriations Limit for SCF.doc CENTRAL CONTRA COSTA SANITARY DISTRICT PUBLIC NOTICE The Board of Directors of the Central Contra Costa Sanitary District will, at its meeting to be held at the District offices, 5019 Imhoff Place, Martinez, California, at 2 p.m. on September 3, 2015, consider the adoption of the Appropriations Limit for Fiscal Year 2015 -16 in accordance with Article XIII B (Proposition 4) of the State of California Constitution. Documentation in support of the Appropriations Limit is available at the District Offices, 5019 Imhoff Place, Martinez, for review by persons interested in this matter. Elaine R. Boehme, CIVIC Secretary of the District Central Contra Costa Sanitary District Contra Costa County, California Publish: August 20, 2015