To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Appropriations Limits for County Service Areas
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
APPROVE and AUTHORIZE tax revenue for all County service areas in Contra Costa County to be included in the County’s annual appropriations limit, in accordance with Government Code section 25214.1(b).
FISCAL IMPACT:
Annual savings in administrative costs.
BACKGROUND:
The California Constitution requires local government entities to establish an annual appropriations limit, which is the maximum amount a government entity may spend in a given fiscal year. The appropriations limit is also referred to as the “Gann limit.” A government entity’s appropriations limit is adjusted each year based on changes in the cost of living and population.
Government Code section 25214.1(a) requires the Board of Supervisors to adopt a resolution each year to establish the appropriations limit for each county service area. A county service area is considered an administrative unit of the County, and the Board of Supervisors is the governing authority of each county service area. Historically, the Board of Supervisors has established separate appropriations limits for each county service area in Contra Costa County. In fiscal year 2023-2024, the Board established appropriations limits for the following county service areas: L-100, M-1, M-29, M-16, M-17, M-20, RD-4, P-5, R-4, and R-7A.
Government Code section 25214.1(b) allows the Board of Supervisors to include tax revenue for all county service areas in the County’s own appropriations limit, instead of establishing separate appropriations limits for each county service area. Under this Board action, tax revenue for all county service areas in the County, including any county service area whose property tax rate exceeded 12.5 cents per $100 of assessed valuation in 1977-1978, will be included in Contra Costa County’s annual appropriations limit.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would result in no changes to the current methods used to establish an annual appropriations limit for County Services Areas. The proposed methodology results in an administrative cost savings, specifically cost avoidance of election costs for at least one County Service Area, which would not be realized should this action be disapproved by the Board.