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Home My WebLink About04.c Establish Sewer Construction Fund appropriations limitCentral Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: September 2, 2010 Subject: ADOPT A RESOLUTION ESTABLISHING THE 2010 -2011 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION Submitted By: Debbie Ratcliff, Controller Initiating Dept. /Div,: Administrative /Finance & Accounting REVIEWED AND RECOMMENDED FOR BOARD ACTION: D. Ratcli sgraves Kent Alm roes M iiy, eneral 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: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $77,663,616 for the 2010 -2011 fiscal year, in accordance with Article XIII B of the California Constitution; select the change in the California per capita personal income percentage for use in computing the appropriations limit. FINANCIAL IMPACTS: None ALTERNATIVES /CONSIDERATIONS: The appropriations limit could be calculated using the change in the local assessment roll due to local non - residential construction of -10.0 percent as opposed to the change in the California per capita personal income percentage change of -2.54 percent. BACKGROUND: On August 5, 2010, the Board of Directors authorized posting a public notice of availability of documentation in support of the District's appropriations limit. As statutorily required, the public notice was published at least 15 days prior to the September 2, 2010 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 monies that can be spent from State tax proceeds received. The annual limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1986 -1987, changed annually by a factor comprised of the change in population combined with either the change in California per capita personal income or the percentage change in the local assessment roll from the preceding year due to local nonresidential construction. The Board must select between the per capita personal income, or the change in the local assessment roll due N:\ADMINSUP\ADMIN \POSPAPER\Adopt Appropriations Limits 09- 02- 10.doc Page 1 of 3 POSITION PAPER Board Meeting Date: September 2, 2010 Subject ADOPT A RESOLUTION ESTABLISHING THE 2010 -2011 APPROPRIATIONS LIMIT IN ACCORDANCE WITH ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION to local non - residential construction, by a recorded vote. Last year the Board selected the change in the California per capita personal income percentage, which was the larger of the two percentages, for the calculation of the 2009 -2010 appropriations limit. The County Assessor has determined the non - residential construction index for 2010 -2011 to be -10.0 percent. The California per capita personal income percentage change is -2.54. The percentage change in California per capita personal income of -2.54 is being used in the calculation of 2010 -2011 appropriations limit, to allow for a larger limit on the District's proceeds of taxes. The Sewer Construction Fund (Capital Fund) appropriations limit so computed is $77,663,616 for the 2010 -2011 fiscal year. The District has budgeted $6.8 million of Ad Valorem Taxes for fiscal year 2010 -2011, which is net of $5.6 million dedicated for payment of debt service. Interest on these tax proceeds is estimated to be $26,000. Therefore, total tax proceeds plus interest will be approximately $6,826,000, which is well within the appropriations limit of $77,663,616 set for the 2010 -2011 fiscal year. The appropriations limit for fiscal year 2010 -2011 was reviewed with the Budget and Finance Committee. RECOMMENDED BOARD ACTION: Adopt a resolution establishing the Sewer Construction Fund appropriations limit in the amount of $77,663,616 for the 2010 -2011 fiscal year, in accordance with Article XI I I B of the California Constitution; select the change in the California per capita personal income percentage for use in computing the appropriations limit. N :\ADMINSUP\ADMIN \POSPAPER\Adopt Appropriations Limits 09- 02- 10.doc RESOLUTION NO. 2010- A RESOLUTION ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2010 -2011 WHEREAS, the Central Contra Costa Sanitary District 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, the District has determined the Appropriations Limit of its Sewer Construction Fund (Capital Fund) for fiscal year 2010 -2011 to be $77,663,616; and WHEREAS, the selection of the 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; NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Central Contra Costa Sanitary District does hereby adopt the Appropriations Limit for said Fund in the amount of $77,663,616 for the fiscal year ending June 30, 2011, based upon the selection of the percentage change in the California per capita personal income. PASSED AND ADOPTED this 2nd day of September 2010, by the District Board of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme Secretary of the Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District N:\ADMINSUPWDMINIPOSPAPERWdopt Appropriations Limits 09- 02- 10.doc Page 3 of 3