HomeMy WebLinkAbout02. Authorize public notice re Appropriations LImit for Fiscal Year 2018-19 Page 1 of 4
Item 2.
,A5XJ CENTRAL SAN CENTRAL SAN BOARD OF DIRECTORS
CENTRAL CONTRA COSTA SANITARY DISTRICT POSITION PAPER
MEETING DATE: AUGUST 2, 2018
SUBJECT: AUTHORIZE A PUBLIC NOTICE TO INDICATE AVAILABILITY OF
DOCUMENTATION IN SUPPORT OF CENTRAL SAN'S APPROPRIATIONS
LIMIT FOR FISCAL YEAR 2018-19
SUBMITTED BY: INITIATING DEPARTMENT:
THEA VASSALLO, CPA, CMA ADMINISTRATION-FINANCE
REVIEWED BY: PHIL LEI BER, DIRECTOR OF FINANCE AND ADMINISTRATION
ANN SASAKI, DEPUTY GENERAL MANAGER
Roger S. Bailey
General Manager
ISSUE
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 at
August 2, 2018 Regular Board Meeting Agenda Packet- Page 14 of 253
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a regularly scheduled meeting. The appropriations limit is open to challenge within 45 days of the effective
date of the resolution.
M ethodology:
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) 2018-19 is 3.67%.
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 $105,246,364. Using the 3.67% per capita personal income factor, and
after adjusting for the annual change in population by 0.88%, the appropriations limit for FY 2018-19 is
calculated to be $110,069,064. This limit is set on Central San's proceeds of taxes. Central San expects to
receive approximately$16.8 million in ad valorem tax revenue for FY 2018-19, which is well below the
appropriations limit.
ALT ERNAT IVES/CONSIDERATIONS
Since the County no longer generates the report necessary to utilize the second method of calculating the
appropriations limit (see above), Central San 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 6,
2018, at which the appropriations limit for FY 2018-19 will be adopted.
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Strategic Plan Tie-In
e
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning
ATTACHMENTS:
1. Pro Forma Public Notice
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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 6, 2018, consider the adoption of the Appropriations Limit for Fiscal Year
2018-19 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.
Katie Young
Secretary of the District
Central Contra Costa Sanitary District
Contra Costa County, California
Publish: August 22, 2018
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