DATE:June 27, 2024
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Mike McCliman, Fire Chief
Noah Daniels, Finance Director
Michelle Cowles, Management Analyst II
Rick Flinchum, Finance Manager
SUBJECT: Consideration of Resolutions Adopting the Budget and Approving the Appropriation Limit for the Fiscal Year 2024/25 in Community Facilities District No. 88-1. (RESOLUTION NO. FD 2024-010 AND RESOLUTION NO. FD 2024-011) (FIRE)
RECOMMENDATION:
Staff recommends the Fire Board adopt Resolutions approving the Community Facilities District (CFD) No. 88-1 budget for $3,263,510 and the appropriations limit of $5,226,455 for the Fiscal Year 2024/25.
BACKGROUND:
On April 4, 1989, the qualified voters approved the formation of CFD No. 88-1 to authorize an annual levy of special tax that would provide for fire protection services within northeast Etiwanda.
The Board adopted an ordinance authorizing a special tax levy for CFD No. 88-1 on May 19, 1989. By resolution, the ordinance authorizes the District to annually levy the special tax for land acquisition, fire station construction, purchase of equipment and operations, and maintenance costs (which includes personnel) to provide fire protection services within CFD 88-1. At this time, the voters also authorized CFD No. 88-1 to annually raise the appropriations limit to meet increased costs for operations and maintenance. That adjustment follows a prescribed methodology used in calculating the appropriations limited under Article XIIIB of the State of California Constitution, which include increasing the prior year’s appropriation limited by the percent change in State per capita personal income (Price Factor) and the change in San Bernardino County’s population per the State of California Department of Finance (Population Factor).
Fiscal Year 2024-25 is the thirty-sixth (36) consecutive year the District has levied a special tax to provide required revenues for capital improvements (land, fire station facility, equipment) and fire protection services (personnel, operations, and maintenance) within this CFD. Because CFD 88-1 does not currently generate sufficient funds to support the total annual staffing costs, supplemental funding is necessary through the Fire District's General Fund budget.
ANALYSIS:
On June 20, 2024, the Fire Board held a workshop to review the appropriation requests for the Fiscal Year 2024/25. The attached Resolution adopts the one-year budget following the Board's deliberations at the publicly held budget study session.
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The Fire Board previously adopted an appropriations limit for Fiscal Year 2023/24 in the amount of $5,015,792. In terms of the adjustment to the appropriations limit, based on the factors for the appropriation limit (a Price Factor change of 3.62% and a Population Factor of 0.56%), the CFD No. 88-1 appropriation limit for the Fiscal Year 2024/25 is $5,226,455. For Fiscal Year 2024/25, CFD No. 88-1’s appropriations subject to this limit is $486,840, meaning that CFD No. 88-1’s appropriations are expected to be 9.31% of this appropriations limit. The attached resolution adopts the annual appropriations limit as required by Article XIIIB of the State Constitution.
FISCAL IMPACT:
The proposed Resolutions establish CFD 88-1's budget for Fiscal Year 2024/25 and ensures compliance with Article XIIIB of the State Constitution.
COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:
This item addresses the City Council’s core value of providing and nurturing a high quality of life for all by ensuring the Fire District, through CFD 88-1, can provide fire operation services and emergency response programs to the City.
ATTACHMENTS:
Attachment 1 – Fiscal Year 2024/25 Budget Resolution
Attachment 2 – Fiscal Year 2024/25 Appropriation Limit Resolution