HomeMy WebLinkAbout02. Authorize a public notice to indicate availablity of documentation in support of Central San's Appropriations Limit for Fiscal Year 2017-18 Page 1 of 4
Item 2.
CENTRAL SAN BOARD OF DIRECTORS
' POSITION PAPER
MEETING DATE: AUGUST 3, 2017
SUBJECT: AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF CENTRAL SAN'S APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2017-18
SUBMITTED BY: INITIATING DEPARTMENT:
THEA VASSALLO, CPA, CMA ADMINISTRATION-FINANCE
REVIEWED BY: PHIL LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
Roger S. Bailey
General Manager
ISSUE
The Central Contra Costa Sanitary District(Central San) is required to establish its appropriations limit in
accordance with Article XI I I B of the California Constitution. This is a recurring matter which takes place
annually.
BACKGROUND
Proposition 4 was approved on November 6, 1979, and was incorporated in the California Constitution as
Article XIII B. As amended,Article XI I I 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 Central San 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 XI I I B requires government agencies to establish their appropriations limit by resolution each year
August 3, 2017 Regular Board Meeting Agenda Packet- Page 16 of 132
Page 2 of 4
at a regularly scheduled meeting. The appropriations limit is open to challenge within 45 days of the
effective date of the resolution.
M ethodoloay:
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 Fiscal Year(FY) 2017-18 is 3.69%.
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. I n previous years, even when the
report was available, Central San 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 $100,366,833. Using the 3.69% per capita personal income factor, and
after adjusting for the annual change in population by 1.13%, the appropriations limit for FY 2017-18 is
calculated to be $105,246,364. This limit is set on Central San's proceeds of taxes. Central San expects to
receive approximately$15.9 million in ad valorem tax revenue for FY 2017-18, 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 IM PACTS
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 7,
2017, at which the appropriations limit for FY 2017-18 will be adopted.
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct Long-Range Financial Planning
ATTACHMENTS:
August 3, 2017 Regular Board Meeting Agenda Packet- Page 17 of 132
Page 3 of 4
1. Pro Forma Public Notice
August 3, 2017 Regular Board Meeting Agenda Packet- Page 18 of 132
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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 7, 2017, consider the adoption of the Appropriations Limit for Fiscal Year
2017-18 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.
/s/ Elaine Boehme
Elaine R. Boehme, CMC
Secretary of the District
Central Contra Costa Sanitary District
Contra Costa County, California
Publish: August 16, 2017
August 3, 2017 Regular Board Meeting Agenda Packet- Page 19 of 132