TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Annamaria Martinez, Assistant Engineer
SUBJECT: Adoption of a Resolution Calling a Special Election to Establish LBRID's Proposition 4 Appropriations Limit for Fiscal Years 2024-2025 through 2027-2028
RECOMMENDATION
title
District Engineer requests adoption of a Resolution calling a special election to be held on Tuesday March 5, 2024 for the purpose of establishing the Lake Berryessa Resort Improvement District’s (LBRID) appropriations limit for Fiscal Years 2024-2025 through 2027-2028.
body
EXECUTIVE SUMMARY
California Constitution Article XIIIB, section 4 (Proposition 4) places a limit on the appropriations of both state and local government agencies. The appropriations limit is tied to the amount of taxes collected. Thus, at the present time an entity may not expend more than the proceeds of taxes in the base year of Proposition 4 (1979) as adjusted for cost of living and population factors. This amount is commonly referred to as the Base Appropriations Limit. The Napa County Auditor estimates the Base Appropriations Limit for LBRID for FY 2024-2025 would be $55,870. If that were the appropriations limit, LBRID would be unable to use the great majority of its tax revenues, and experience difficulty providing services. A local agency's appropriations limit may be adjusted to a level that exceeds the Base Appropriations Limit by a vote of the electors of the local governmental agency. Such a vote is valid for only four years.
It has been four years since the last appropriations limit was established that exceeded the Base Appropriations Limit. Therefore, a new authorization by the voters of LBRID is required. The adoption of the proposed resolution will provide for a special election of registered voters residing within LBRID’s Sphere of Influence to be held on March 5, 2024, in consolidation with the Presidential Primary Election. If approved by the voters, this measure (LBRID Measure U) will establish the recommended appropriations limit at $510,000 for FY 2024-2025, with the new limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for fiscal years 2025-2026 through 2027-2028. A majority of registered voters voting in favor of the measure is needed to establish the new appropriations limit.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
Yes |
|
Where is it budgeted? |
LBRID’s operations budget (Sub-division 5220000) will reimburse the Elections Department for costs to conduct the election estimated at between $2,000 and $3,000. Final cost for the proposed election still to be determined. |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Is the general fund affected? |
No |
|
Future fiscal impact: |
The fiscal impact will occur in Fiscal Year 2024-2025. |
|
Consequences if not approved: |
The Appropriations Limit will revert to approximately $55,870 for FY 2024-2025, and LBRID will have very limited expenditure authority. |
|
County Strategic Plan pillar addressed: |
Effective and Open Government |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.
BACKGROUND AND DISCUSSION
California Constitution Article XIIIB, section 4 (Proposition 4) places a limit on the appropriations of both State and local government agencies. The default appropriations limit is tied to the amount of taxes collected in the base year of Proposition 4 (1979). That limit may be adjusted to account for emergencies (on a temporary basis) as well as for changes in the cost of living and population. It may also be adjusted by a vote of the electors of the local governmental agency. Changes in the Base Appropriations Limit due to changes in the cost of living and population are permanent changes. Changes by a vote of the electors to a level that exceeds the Base Appropriations Limit, as adjusted for changes in the cost of living and population, are temporary because they cannot be approved for more than a four-year period. Once the four-year period has expired, a new authorization by the electorate is required or the Base Appropriations Limit becomes the applicable appropriations limit which is typically significantly lower than the approved temporary four-year increase in the appropriations limit. That is the case here. The Napa County Auditor estimates the Base Appropriations Limit for FY 2024-2025 would be $55,870. If that were the appropriations limit, LBRID would be unable to use the great majority of its tax revenues to operate.
• On July 18, 2000, the voters of LBRID approved a special tax (T-2000) and simultaneously reestablished LBIRD appropriations limit in an amount sufficient to accommodate the proceeds of all LBRID taxes including the proceeds of the ongoing T-1 special tax and the proceeds of the newly approved T-2000 special tax for the period beginning with fiscal year 2000-2001 and ending with fiscal year 2003-2004.
• On June 29, 2004, the voters of LBRID reestablished the appropriations limit at $409,540 for the period beginning with fiscal year 2004-2005 with the limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for the three following fiscal years, in an amount sufficient to accommodate the proceeds of all LBRID taxes then in effect.
• On September 16, 2008, the voters of LBRID reestablished the appropriations limit at $481,220 for the period beginning with fiscal year 2008-2009 with the limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for the three following fiscal years, in an amount sufficient to accommodate the proceeds of all LBRID taxes then in effect.
• On June 30, 2010, the T-2000 tax expired.
• On May 8, 2012, the voters of LBRID reestablished the appropriations limit at $380,000 for the period beginning with fiscal year 2012-2013 with the limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for the three following fiscal years, in an amount sufficient to accommodate the proceeds of all LBRID taxes then in effect.
• On October 11, 2016, the voters of LBRID reestablished the appropriations limit at $350,000 for the period beginning with fiscal year 2016-2017 with the limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for the three following fiscal years, in an amount sufficient to accommodate the proceeds of all LBRID taxes then in effect.
• On June 30, 2020, the voters of LBRID reestablished the appropriations limit at $430,000 for the period beginning with fiscal year 2020-2021 with the limit to be adjusted annually to the extent authorized by Article XIIIB, section 1, for the three following fiscal years, in an amount sufficient to accommodate the proceeds of all LBRID taxes then in effect.
• On June 30, 2024, the current authorization for an appropriations limit that exceeds the Base Appropriations Limit will expire. The appropriations limit for FY 2023-2024 is $507,899.
It is necessary for the voters to again establish an appropriations limit in an amount sufficient to accommodate the proceeds of all LBRID taxes, including property taxes and the ongoing T-1 special tax, for the 2024-2025 through 2027-2028 fiscal years.
Adoption of the proposed resolution will provide for a special election of the registered voters residing within LBRID to be held on March 5, 2024, to be consolidated with the Presidential Primary Election. The purpose of the election is to re-establish the appropriations limit at $510,000 for FY 2024-2025 and the three subsequent fiscal years. However, the new limit during the final three years of this four-year period is subject to increases annually to the extent authorized by Article XIIIB, section 1.
The Registrar of Voters has designated the measure that will appear on the all-mail ballot as LBRID Measure U.
A majority of registered voters voting in favor of the measure is needed to establish the new appropriations limit.