executive decision document

6
EXECUTIVE DECISION DOCUMENT GENER{L }lAr!^AGER ACTION REQ'D: BOARD INITIATED ITENII No D.pt: AGM - P!rformitrc. & Budgct Sictrrturc/Drt.: -/- _ ta rfufz\ Crn.rsl Couns.l Codtroll.r/T At'oao s(Vel t t District Sccrctrrv FY22 Proposition 4 Appropriations Limit PURPOSE: To approve the District's Fiscal Year 2022 Appropiations Limit, as required by State law pursuant to the Gann Initiative (Proposition 4, passed by the voters n 1979). DISCUSSION: The Gann Initiative (Proposition 4) provides for limits on appropriations by State and local govemment entities. Califomia Government Code Section 7910 requires local jurisdictions to annually adopt an appropriations limit by resolution and establishes a 45-day statute of limitations for commencement of any judicial action to challenge the appropriations limit. Section 7910 requires the Board of Directors to establish by resolution BART's annual appropriations limit "at a regularly scheduled meeting or noticed special meeting." Further, it requires that fifteen days prior to such meeting, documentation used in the determination of the appropriations limit shall be made available to the public. On May 12, 2021, the documentation was made available to the public. Attachment I summarizes the F\{22 appropiations limit calculation in accordance with the uniform Guidelines for Implementation of the Gann Initiative prepared by the League of Califomia Cities and the information fumished by the State Departrnent of Finance. Attachment 2 is the calculation for the margin as it relates to the Proposition 4 limit. The margin is the difference between the appropriations limit and the expenditures subject to the limit. Based on the calculations, the District will be below the limit of $674,576,014.

Upload: others

Post on 02-Oct-2021

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: EXECUTIVE DECISION DOCUMENT

EXECUTIVE DECISION DOCUMENT

GENER{L }lAr!^AGER ACTION REQ'D:

BOARD INITIATED ITENII No

D.pt: AGM - P!rformitrc. & Budgct

Sictrrturc/Drt.: -/-_ ta rfufz\

Crn.rsl Couns.l Codtroll.r/T

At'oaos(Vel t t

District Sccrctrrv

FY22 Proposition 4 Appropriations Limit

PURPOSE:

To approve the District's Fiscal Year 2022 Appropiations Limit, as required by State lawpursuant to the Gann Initiative (Proposition 4, passed by the voters n 1979).

DISCUSSION:

The Gann Initiative (Proposition 4) provides for limits on appropriations by State and localgovemment entities. Califomia Government Code Section 7910 requires local jurisdictions toannually adopt an appropriations limit by resolution and establishes a 45-day statute oflimitations for commencement of any judicial action to challenge the appropriations limit.

Section 7910 requires the Board of Directors to establish by resolution BART's annualappropriations limit "at a regularly scheduled meeting or noticed special meeting." Further, itrequires that fifteen days prior to such meeting, documentation used in the determination ofthe appropriations limit shall be made available to the public. On May 12, 2021, thedocumentation was made available to the public.

Attachment I summarizes the F\{22 appropiations limit calculation in accordance with theuniform Guidelines for Implementation of the Gann Initiative prepared by the League ofCalifomia Cities and the information fumished by the State Departrnent of Finance.

Attachment 2 is the calculation for the margin as it relates to the Proposition 4 limit. Themargin is the difference between the appropriations limit and the expenditures subject to thelimit. Based on the calculations, the District will be below the limit of $674,576,014.

Page 2: EXECUTIVE DECISION DOCUMENT

FY22 Proposition 4 Appropriations Limit

FISCAL IMPACT:No fiscal impact. The FY22 appropriations limit is$674,576,014. Operating and Capitalexpenditures subject to the appropriations limit total $435,815,380. As such the District is$238,760,634 below the subject FY22 appropriations limit.

ALTERNATIVES:

None.

RECOMMENDATION:

Approval of the following motion.

MOTION:

That the Board adopt the attached resolution which sets the District's FY22 appropriationslimit at $674,576,014.

Page 3: EXECUTIVE DECISION DOCUMENT

Attachment 1

Fiscal Year 2022 Appropriations Limit: Calculation

Based on the provisions in Article XlllB of the California Constitution as approved by the votersin November 1979, the appropriations limit for each succeeding year through 1987 isdetermined by the District's 1979 appropriations base times a cumulative composite factor.The base year was later revised to 1987. The cumulative composite factor consists of theprod uct of:

1) The lesser of the relative year change in the all urban consumer price index(SF/Oakland/Hayward CPI-U)or the California per capita personal income, and

2) At the District's discretion, the relative year-to-year change in District wide population,or the population for the District's county that has the highest assessed valuation.Election of the higher of the two growth factors results in a higher appropriations limit.

The District's appropriations limit for Fiscal Year 2022 is calculated on the basis of the urbanconsumer price index (CPl-U SF/Oakland/Haywa rd ) and Alameda County's population gains as ithas the highest assessed valuation of the three counties. Steps in the calculations are as

follows:

Relevant data, percent change:o CPI-U SF/Oa kland/Hayward, 1.56730/o (applies this year per option 1 above). Population Change, Alameda County, -0.8524% (applies this year per option 2

above)

District Pooulation

Alameda

Contra Costa

A6 ot 1/1120 Asot7l7l2l % ChanPe

1,670,834 1,555,591 4.8524%

San Francisco 897,806

Total. 3,722,201

1,1s3,854 0.0254%

875,010 -2.5391%

1,153,561

3,685,455 4.9A72%

tY22 Cumulative Adiustment Factorl

CPIU sF/Oakland/Hayward x PopL]lation Factor = Current Adlustment Factor(1 +1.s673%) x (1 + (-0.8s2a%)) = 1.0070

Current Adjustment Factor x Prior YearAdjustment = Cumulative Adjustment Factor

1.0070x3.6894=3.7153

FY22 Aporooriations Limit:FY87 Appropriations Base x FY22 Cumulative Adj Factor FY22 Appropriations Limit

s181.558.000x3.71s3=5674.576.074

Note: s@ MoEo Cwnq @d thto don co6ty n not to be inctuk.l alrhoueh 9. Mot@ ond Sonto ootu @ iMd bt uRI, the oinn.r is cohpriad ohly 4 sF, cc ond No6..h counnes-

'ttot€: Poputdi@ q@'.th l@Iot to cM. lM .ounty wirh the hbhest @ed @tuotion lrlonedo Countl) or the dinti.t-wi.h totol - tl1ich.n, is hiqheL

Page 4: EXECUTIVE DECISION DOCUMENT

BEFORE THE BOARD OF DIRECTORS OF THE

SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT

ln the Matter of the Establishment

Of the Fiscal Yeat 2022Aporopriations Limit Resolutio n No.

WHEREAS, Article XlllB of the California Constitution limits the District's appropriations for Fiscal

Year 1981, and subsequent years; and

WHEREAS, Government Code Section 7910 requires the District to establish, by resolution, its

appropriations limit pursuant to Article XlllB; and

WHEREAS, documentation used in the determination of the Fiscal Yeat 2022 appropriations limithas been available to the public for at least fifteen days prior to the date ofthis resolution;

NOW, THEREFORE, BE lT RESOLVED by the Board of Directors of the San Francisco Bay Area

Rapid Transit District that the District's appropriations limit for Fiscal Year 2022 shall be 5674,576,014.

5484

Adopted: May 27, 2021

Page 5: EXECUTIVE DECISION DOCUMENT

SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT

300 Lakeside DriveOakland, CA 94612

Appropriations Limit for Fiscal Year 2022Notice of Documentation for Review

and Time of Meeting

Notice is Hereby Given That:

A. Documentation used in determining the District's appropriations limit for the fiscal year July1, 2021to June 30,2022 will be available for public review on and after May 12, 2021at 9:00a.m. at the Office of the District Secretary, Twenty-third Floor, 300 Lakeside Drive, Oakland,California.

B. At its scheduled meeting on Thursday, May 27,2O27 at 9:00 a.m., the Board of Directors willaddress the District's appropriations limit for Fiscal Year 2022.

Pursuant to Governor Newsom's Executive Order N-29-20 and the California Shelter-in-Placemandate, public participation for this public hearing will be via teleconference only. Log-in

instructions for a teleconferenced public hearing will be available on the BART website(www.bart.gov).

We strongly encourage public comments to be submitted via email. You may submitcomments via email to board.meeting@ ba rt.gov, using "public hearing" as the subjectline. Your comment will be read into the record and will become a permanent part of thefile. Please submit your comments as far in advance as possible. Emailed comments must be

received before 9:00 a.m. in order to be included in the record.

Comments may be made at the hearing or should be sent to:Jacqueline Edwards, District SecretarySan Francisco Bay Area Rapid Transit District300 La keside Drive,23'd FloorOakland, California 94612

[email protected]

Jacqueline EdwardsDistrict SecretarySan Francisco Bay Area Rapid Transit District

Page 6: EXECUTIVE DECISION DOCUMENT

ATTACHMENT 2FY22 PROPOSITION 4 APPROPRIATIONS LIM!T

Whole Dollars, as ol 05/07 /21LIMIT

CPI.U

Per Capita Personal lncome delta FYz1>FY22

District Population GrowthAnnual Adjustment Factor

Cumulative Ad.iustment Factor

t.56730t5.7300%

-0.8524r

1.0070

3.7153

NOTES & COMMENTSCPI-U for 5F/OAK/Hayward 2/2L vs 2/20State DOF Price & Population lnformation; 1/1/21 (report releasedS/7/zLlDistrictwide trowth is based on Alameda Population Growth (highest valuation)

[1+(CA Per Capita CPI)]*[1+(District population growth)](Current year factor)*(prior year cumulative factor)

Appropriations l-imit 5674,s76,0L4 (FY87 base appropriations) x (cumulative factor)APPROPRIATIONS

operatinB BudBet

Operating Expenses

OperatinB Subtotal

Operatint AllocationsMisc. Capital AllocationsOther Capital Allocations

Operating Allocations SubtotalCapital Budget

Funded

Less Funded Pass Through

Net Capital Expense

Debt 5eruice:Debt SeruiceGO Seismic & RR Bonds

Debt Seruice Subtotal

859,566,959

859,566,959

10,000,0009t,926,844

r07,926,844

1,4t9,276,622(474,135,9001

945,t40,722

57,167,323709,2a2,094766,449,4L6

FY22 Prelim Operatint Budget

FY22 Prelim Operating BudgetFYz2 Prelim Operating Budget

FYz2 Prelim Operating Budget

FYz2 Prelim Operatint Budget

FY22 Prelim Operating Budget

Per GO & RR Bond Series Debt schedule

Total Operating & Capital Appropriations s 2,073,083,941

EXCtUStONSqllocation from Reserves

{DA Mandated Seruice Expense\,let Operating Revenue:

Net Passenter Revenue

Other Operating Revenue

Subtotal:ederal Operating Funds (ARP):ederal Capital Funds:

Funded

)ebt seruice (GO Seismic & RR Bonds)

:apital Budget Funded from Measure M GO Bond Proceeds

:apital Budget Funded from Measure RR GO Bond Proceeds

:apital Budget Funded from Sales Tax Revenue Bond ProceedsSART Capital Funds

327,812,23013,979,000

fi5,A32,52830,088,325

195,920,853

57,090,231

327,O25,40r109,282,094

27,074,037

5tL,977,3439,665,992

63,551,380

FYz2 Prelim Operating Eudget

FY22 Prelim Operating Budget

FYz2 Prelim Operating BudBetFY22 Prelim Operating Budget

ryz2 Prelim Operating BudgetFYz2 Prelim OperatinB Budget

FYz2 Prelim Operating BudgetPer above, GO Bond Series Debt scheduleFY22 Prelim OperatinB BudgetFY22 Prelim Operating BudgetFY22 Prelim Operating Budget:Y22 Prelim ODeratins Budset

total Exclusions s 1,637,268,561

MARGIN

\ppropriations Limit\gDroDriations Subiect to Limit

$674,576,0t4435,815,380

)er above

\oproDriations less exclusions, per above

Vtargi n 5 23E,76O,634 qppropriations less expenditures subject to limitRESIDENT POPUIAIION"\lameda (highest ossessed voluotion in 2027)

PopulationPercent Change

:ontra Costa

Population

Percent Change

;an FranciscoPopulation

Percent Change)istrict Total

Population

Percent Change

1,656,591

4.t524%

1,153,854

0.0254%

875,010-2.5397%

3,685,455-0.9a72%

DOF Price & Population lnformation, 1/1/21 (report released 5/7 /21]l

DO F Price & Population I nformation, L / 1 /2L (rc?oft rcleased 5/7 12Ll

;tate DOF Price & Population lnformation, 1/1/21 (report released 5/7/?Ll

ium of population for BART counties>ercent increase

population" and ancludes frilitary and other temporary residents. Per State Depadment of Financ., priqr ye.r City and County population estimatls may