HomeMy WebLinkAbout06. Adopt resolution establishing appropriations limit for FY 2017-18 Page 1 of 3
Item 6.
CENTRAL SAN BOARD OF DIRECTORS
' POSITION PAPER
MEETING DATE: SEPTEMBER 7, 2017
SUBJECT: ADOPT RESOLUTION NO. 2017-038 ESTABLISHING THE
APPROPRIATIONS LIMIT IN THE AMOUNT OF $105,246,364 FOR FISCAL
YEAR (FY) 2017-18, IN ACCORDANCE WITH ARTICLE XIII B OF THE
CALIFORNIA CONSTITUTION, USING THE CHANGE IN THE CALIFORNIA
PER CAPITA PERSONAL INCOME PERCENTAGE AND CHANGE IN
POPULATION TO CALCULATE THE APPROPRIATIONS LIMIT
SUBMITTED BY: INITIATING DEPARTMENT:
THEAVASSALLO, CPA- FINANCE MANAGER ADMINISTRATION-FINANCE
REVIEWED BY: PHILLEIBER - DIRECTOROFFINANCEANDADMINISTRATION
Roger S. Bailey
General Manager
ISSUE
Central San is required to establish its appropriations limit for tax proceeds that can be spend annually in
accordance with Article XI I I B, Government Spending Limitation, of the California Constitution.
BACKGROUND
On August 3, 2017, the Board authorized posting a public notice of availability of documentation in support
of Central San's appropriations limit. As statutorily required, the public notice was published at least 15
days prior to the September 7, 2017 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 tax proceeds that can be spent on an annual basis. Since Central San
receives the vast majority of revenues from service fees, not taxes, this limitation has minimal practical
September 7, 2017 Regular Board Meeting Agenda Packet- Page 88 of 294
Page 2 of 3
effect on Central San.
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 the change in
California per capita personal income. After 30 years of compounding under this formula, the annual limit
is many times the tax proceeds that Central San actually receives, as illustrated below.
For FY 2017-18, the annual change in population in California is 1.13% and the percentage change in
California per capita personal income is 3.69%. Using these percentages, the appropriations limit for FY
2017-18 is calculated to be $105,246,364, far above the total Central San ad valorem tax budgeted for FY
2017-18 of$15.9 million, plus an estimated $45,000 of interest.
ALT ERNAT IVES/CONSIDERAT IONS
None.
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
No Committee review is necessary for this matter because establishment of the appropriations limit is
statutorily mandated underArticle XI I I B of the California Constitution entitled Government Spending
Limitation.
RECOMMENDED BOARD ACTION
Adopt a resolution establishing the appropriations limit in the amount of$105,246,364 for the FY 2017-18,
in accordance with Article XI I I B of the California Constitution, using the change in the California per capita
personal income percentage and change in population to calculate the appropriations limit.
Strategic Plan Tie-In
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct Long-Range Financial Planning
ATTACHMENTS:
1. Proposed Resolution
September 7, 2017 Regular Board Meeting Agenda Packet- Page 89 of 294
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RESOLUTION NO. 2017-
A RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT
FOR FISCAL YEAR 2017-18
WHEREAS, Central San is required under Article XIII B of the State of California
Constitution to establish and adopt an Appropriations Limit for each fiscal year; and
WHEREAS, Central San has determined the Appropriations Limit for taxes and
proceeds of taxes for Fiscal Year 2017-18 to be $105,246,364; and
WHEREAS, the selection of an 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; and
WHEREAS, the data for calculation of the local non-residential construction factor is no
longer readily available.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of Central San
hereby adopts the Appropriations Limit for the District in the amount of $105,246,364 for
the fiscal year ending June 30, 2017, based upon the percentage change in the
California per capital personal income.
PASSED AND ADOPTED this 7th day of September, 2017, by the Board of Directors of
Central San by the following vote:
AYES: Members:
NOES: Members:
ABSENT: Members:
Paul H. Causey
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
September 7, 2017 Regular Board Meeting Agenda Packet- Page 90 of 294