HomeMy WebLinkAbout09. Consider adopting Resolution No. 2024-028 establishing the appropriations limit in the amount of $146,872,366 for fiscal year 2024-25Page 1 of 4
Item 9.
DCENTRALSAN
MEETING DATE: SEPTEMBER 5, 2024
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: CONSIDER ADOPTING RESOLUTION NO. 2024-028 ESTABLISHING THE
APPROPRIATIONS LIMIT IN THE AMOUNT OF $146,872,366 FOR FISCAL
YEAR 2024-25, 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
SUBMITTED BY:
INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION -FINANCE
REVIEWED BY: PHILIPLEIBER, DEPUTYGM -ADMINISTRATION
Roger S. Bailey
General Manager
ISSUE
Central San is required to establish its appropriations limit for tax proceeds that can be spent annually in
accordance with Article XI I I B, Government Spending Limitation, of the California Constitution.
BACKGROUND
As statutorily required, notice that the appropriations limit for Fiscal Year (FY) 2024-25 would be
considered at this meeting was provided at the August 15, 2024 Board meeting and, in accordance with
Califomia Govemment Code section 7910, documentation used in the determination of the
appropriations limit and other necessary determinations were made available to the public at least fifteen
days prior to this meeting.
California's State appropriations limit, also known as the "Gann Limit," was originally established by
Proposition 4 in 1979. The statute places an "upper limit" on the amount of tax proceeds that can be spent
on an annual basis. As Central San receives the vast majority of its revenues from service charges, not
taxes, this limitation has had no material practical effect.
September 5, 2024 Regular Board Meeting Agenda Packet - Page 32 of 66
Page 2 of 4
The annual limit is based on the amount of tax proceeds that were authorized to be spent in FY 1986-87,
adjusted annually by a factor comprised of the change in population combined with the change in California
per capita personal income. After 38 years of compounding under this formula, the annual limit far
exceeds the actual tax proceeds received by Central San. As a result, the Gann Limit has not had
practical implications for Central San's finances, but nonetheless requires this administrative calculation
and notification each year.
As published by the California Department of Finance, the annual change in population for FY 2024-25 in
Contra Costa County is 0.12% and the percentage change in California per capita personal income is
3.62%. Using these percentages, Central San's current appropriations limit is calculated to be
$146,872,366, which far exceeds the total ad valorem property tax revenue budgeted for FY 2024-25 of
$24,711,875 plus estimated interest earnings of approximately $392,000 on said tax proceeds.
ALTERNATIVES/CONSIDERATIONS
None.
FINANCIAL IMPACTS
None.
COMMITTEE RECOMMENDATION
No Committee review is necessary for this matter because establishment of the appropriations limit is
statutorily mandated under Article XI I I B of the California Constitution entitled Government Spending
Limitation.
RECOMMENDED BOARD ACTION
Adopt the proposed resolution establishing the appropriations limit in the amount of $146,872,366 for FY
2024-25, 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 Contra Costa County population to calculate the
appropriations limit.
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability
and sustainability
ATTACHMENTS:
1. Resolution
September 5, 2024 Regular Board Meeting Agenda Packet - Page 33 of 66
Page 3 of 4
RESOLUTION NO. 2024-028
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
ESTABLISHING THE APPROPRIATIONS LIMIT FOR FISCAL YEAR 2024-25
WHEREAS, Central Contra Costa Sanitary District (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 2024-25 to be $146,872,366; 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.
WHEREAS, the data for calculation of the local non-residential construction factor is no
longer readily available.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra
Costa Sanitary District (Central San) as follows:
THAT the Board of Directors of Central San hereby adopts the Appropriations Limit for
Central San in the amount of $146,872,366 for the fiscal year ending June 30, 2025,
based upon the percentage change in California per capital personal income and the
percentage change in Contra Costa County population as published by the California
Department of Finance.
PASSED AND ADOPTED this 5t" of September 2024, by the Board of Directors of
Central San by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
Mariah N. Lauritzen
President of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
September 5, 2024 Regular Board Meeting Agenda Packet - Page 34 of 66
Page 4 of 4
Resolution No. 2024-028
Central Contra Costa Sanitary District
Page 2 of 2
COUNTERSIGNED:
Katie Young, CPMC, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
J. Leah Castella, Esq.
Counsel for the District
September 5, 2024 Regular Board Meeting Agenda Packet - Page 35 of 66