HomeMy WebLinkAbout05.c. Authorize public notice for Appropriations LimitCentral Contra Costa Sanitary District
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: August 4, 2016
Subject:
AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF THE DISTRICT'S
APPROPRIATIONS LIMIT
Submitted By:
Thea Vassallo, CPA, CMA
Finance Manager
Initiating Dept./Div.:
Administration / Finance & Accounting
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Counsel for the District
Roger S. Bailey
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.
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.
Methodoloayi
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.
5.c.
The percentage change in California per capita personal income for Fiscal Year (FY)
2016-17 is 5.37%. 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
N:\ADMINSUP\ADMIN\DIST-SEC\Position Papers\2016\PP Authorize Public Notice re Appropriations Limit 8-4-16 .doc
POSITION PAPER
Board Meeting Date: August 4, 2016
Subject:
AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF THE DISTRICT'S
APPROPRIATIONS LIMIT
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 was $94,196,806. Using the 5.37% per capita personal
income factor, and after adjusting for the annual change in population by 1.12%, the
appropriations limit for FY 2016-17 is calculated to be $100,366,833. This limit is set on
the District's proceeds of taxes. The District expects to receive approximately $14.8
million in ad valorem tax revenue for FY 2016-17, which is well below the appropriations
limit.
ALTERNATIVES/CONSIDERATIONS: Since the County no longer generates the
report necessary to utilize the second method of calculating the appropriations limit (see
above), the District must calculate the appropriations limit using the California per capita
personal income percentage change.
FINANCIAL IMPACTS: None.
COMMITTEE RECOMMENDATION: No Committee review is necessary for this
matter.
RECOMMENDED BOARD ACTION: Authorize a public notice (see Attachment 1)
advertising that documentation used in determining the appropriations limit shall be
available fifteen days prior to the Board meeting to be held on September 1, 2016, at
which the appropriations limit for FY 2016-17 will be adopted.
Attached Supoortino Document:
1. Pro forma Public Notice
N:\ADMINSUP\ADMIN\DIST-SEC\Position Papers\2016\PP Authorize Public Notice re Appropriations Limit 8-4-16 .doc
ATTACHMENT 1
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 1:30 p.m. on
September 1, 2016, consider the adoption of the Appropriations Limit for Fiscal Year
2016-17 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, CMC
Secretary of the District
Central Contra Costa Sanitary District
Contra Costa County, California
Publish: August 17, 2016