TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2020-21 Appropriations Limit Correction Adoption
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider the adoption of Resolution No. 20-055 establishing the corrected Appropriations Limit for Fiscal Year 2020-21 at $550,464,750 and repealing Resolution No. 20-037.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Establishing the District's Appropriations Limit is necessary for compliance with state law.
BUDGETARY/FISCAL IMPACT:
There are no budgetary fiscal impacts associated with this report. The corrected amount in this resolution is reduced by less than 0.1% from the prior and incorrect amount.
BACKGROUND/RATIONALE:
On October 14th, the Board of Directors adopted Resolution No. 20-052 giving notice of the scheduled adoption of a corrected Appropriations Limit for FY 2020-21. The notice and supporting documentation must be available to the public at least 15 days prior to the adoption of an Appropriations Limit and were posted on the District's website and in the General Office lobby on October 16th. The documents are on file with the District Secretary's Office.
Article XIIIB of the California Constitution places limitations on the annual appropriations of the State and each local government. In 1979, California voters approved Proposition 4 (Article XIIIB of the California State Constitution). Informally known as the "Gann Initiative", Article XIIIB provides limits to the amount of tax proceeds state and local governments can spend each year. The base year was set at FY 1978-79. In 1980, the State Legislature added Section 9710 of the Government Code stating that the governing body of each local jurisdiction must establish, by resolution, an appropriations limit for the following year.
The limit for any fiscal year is equal to the previous year's limit, adjusted for population ch...
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