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HomeMy WebLinkAbout07. Set a public notice date for 09-02-21 to consider establishing FY 2021-22 Appropriations Limit Page 1 of 2 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETINGDATE: AUGUST5, 2021 SUBJECT: SETA PUBLIC NOTICE FOR SEPTEMBER 2, 2021 AT 1:30 P.M. TO CONSIDER ESTABLISHING THE FISCAL YEAR (FY) 2021-22 APPROPRIATIONS LIMIT SUBMITTED BY: INITIATING DEPARTMENT: CHRIS THOMAS, FINANCE ADMINISTRATOR ADMINISTRATION-FINANCE REVIEWED BY: KEVIN MIZUNO, FINANCE MANAGER PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION Roger S. Bailey General Manager ISSUE Central San is required to establish its annual appropriations limit in accordance with Article XI I I B of the California Constitution, which imposes a limit (known as the "GANN Limit") on the rate of growth in governmental spending of tax revenues. BACKGROUND Tax revenue to Central San comes from ad valorem property taxes. Such taxes are expected to comprise about 11.2% of Centrals San's total revenues for FY 2021-22 ($18.5 million of$163.5 million in budgeted revenues). Central San does not set the level of ad valorem property taxes the agency receives, but instead receives from Contra Costa County a calculated share of the property taxes assessed for properties within the service territory. The GANN Limit has, in past years, been about 10 times higher than the amount of ad valorem property tax received from the County. Each year, the GANN Limit is increased annually by a factor comprised of the change in population combined with either the change in California per capita personal income or the change in the local assessment roll due to local nonresidential construction. Article XIII B requires government agencies to establish their appropriations limit by resolution each year at a regularly scheduled meeting. In accordance with California Government Code August 5, 2021 Regular Board Meeting Agenda Packet- Page 62 of 262 Page 2 of 2 Section 7910, fifteen days prior to the meeting documentation used in the determination of the appropriations limit and other necessary determinations shall be made available to the public. This year, the FY 2021-22 appropriations limit will be considered by the Board at its meeting on September 2, 2021. Documentation is available by contacting Secretary of the District Katie Young at kyoungacentralsan.org. ALTERNATIVES/CONSIDERATIONS None. FINANCIAL IMPACTS None. COMMITTEE RECOMMENDATION No Committee review is necessary for this matter. RECOMMENDED BOARD ACTION Set a public notice for September 2, 2021 at 1:30 p.m. to consider establishing the Fiscal Year 2021-22 Appropriations Limit. Strategic Plan Tie-In GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations GOAL THREE: Fiscal Responsibility Strategy 2—Ensure integrity and transparency in financial management August 5, 2021 Regular Board Meeting Agenda Packet- Page 63 of 262