DATE: June 22, 2020
TO: Board of Supervisors
SUBMITTED BY: Oscar J. Garcia, CPA, Auditor-Controller/Treasurer-Tax Collector
SUBJECT: Fiscal Year 2021-22 Appropriations Limits
RECOMMENDED ACTION(S):
TITLE
Sitting as the Fresno County Board of Supervisors:
* Approve resolution establishing the appropriations limit for the County of Fresno for Fiscal Year 2021-22
Sitting as the Board of Directors of Waterworks Districts Nos. 37, 38, 40, 41 and 42:
* Approve resolution establishing the appropriations limits for Fresno County Waterworks Districts Nos. 37, 38, 40, and 41 for Fiscal Year 2021-22.
REPORT
ALTERNATIVE ACTION(S):
No other viable options exist.
FISCAL IMPACT:
There is no direct fiscal impact associated with these actions. Spending by the County and the identified Fresno County Waterworks Districts may not exceed the limits established by the recommended resolutions.
DISCUSSION:
California voters passed Proposition 4 in November 1979. This legislation, which added Article XIII B to the State Constitution, restricts government spending by establishing limits on the annual appropriations of tax revenues of local governmental entities. The restriction is called an "appropriations limit." The appropriations limit must be established each year for the following fiscal year based on the previous year's limit, adjusted for the change in the cost of living and the change in population.
On June 5, 1990, California voters passed Proposition 111, which modified the manner in which the Proposition 4 appropriation limit is calculated. As a result of Proposition 111, the base year for the calculation has been changed from the Fiscal Year 1978-79 to the Fiscal Year 1986-87. This change has allowed the County to use more advantageous population and Consumer Price Index factors in establishing its annual appropriations limit.
For Fiscal Year 2020-21, the County's appropriations limit was established as $660,949,966. After your Board established that lim...
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