TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: FY 2019-20 Corrected Appropriations Limit Notice
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 20-049 providing notice of the scheduled adoption of the corrected Appropriations Limit for Fiscal Year 2019-20.
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Noticing of the District’s appropriation limits is necessary for compliance with state law.
BUDGETARY/FISCAL IMPACT:
There are no budgetary or fiscal impacts associated with this report. The corrected amount in this resolution is reduced by less than 0.1%.
BACKGROUND/RATIONALE:
The District must make available to the public the Appropriations Limit for FY 2019-20 and supporting documentation. Article XIIIB of the California Constitution places limitations on the annual appropriations of the State and each local government.
For the District, the FY 2019-20 Appropriations Limit allowable growth factor was positively influenced by the 3.85% annual growth rate in the California Per Capita Personal Income Index and combined 0.75% annual growth rate in the Population Factor. The calculation of the appropriations limit is included as Exhibit B to Resolution 20-049 (Attachment 1).
The District is noticing this adoption of the corrected appropriations limit due to a small error in the original limit calculation. The corrected appropriation limit is reduced by $682,212, which is a 0.1% change. It does not have any practical effect on the District.
ADVANTAGES/DISADVANTAGES:
There is no disadvantage to the establishment of an appropriations limit. State law requires it.
ALTERNATIVES ANALYSIS:
There is no alternative to the establishment of an appropriations limit. State law requires it.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 19-194 - FY 2019-20 Appropriations Limit Notice
ATTACHMENTS:
1. Resolution 20-049 (with Exhibits)
Prepared by:
Mary Archer, Finance Project Manager
Approved/Reviewed by:
Claudia L. Allen, Chief Financial Officer
Jill A. Sprague, General Counsel
Linda A. Nemeroff, District Secretary