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 Appropriations Limit for the Fiscal Year 2024/25 in Community Facilities District No. 85-1. (RESOLUTION NO. FD 2024-012 AND RESOLUTION NO. FD 2024-013) (FIRE)
RECOMMENDATION:
Staff recommends the Fire Board adopt Resolutions approving the Community Facilities District (CFD) No. 85-1 annual budget for $11,320,380 and the appropriations limit of $20,070,132 for the Fiscal Year 2024/25.
BACKGROUND:
Annually, since the Fiscal Year 1986/87, the Board has adopted a budget for CFD No. 85-1 to provide for fire protection service operations within CFD No. 85-1. The proposed budget for the Fiscal Year 2024/25 includes funding for the personnel and operational costs necessary to maintain existing fire and life safety services within CFD boundaries. CFD 85-1 does not generate sufficient funds through the special taxes that it levies and collects to support the total annual staffing costs anticipated with the opening of Fire Station 178; therefore, CFD no. 85-1 receives supplemental funding from the Fire District's General Fund budget.
When the voters approved CFD No. 85-1 in 1985, an initial appropriations limit was established at $1,775,000, which was the amount of special taxes levied to provide for the costs of CFD No. 85-1. At that time, the voters also authorized CFD No. 85-1 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 Bernardno County's population per the State of California Department of Finance (Population Factor).
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 $19,287,077. In terms of the adjustment to the appropriations limit, based on the factors for the appropriation limit (a Price Factor of 3.62% and a Population Factor of 0.42%), the CFD No. 85- 1’s appropriation limit for the Fiscal Year 2024/25 is $20,0704,132. For Fiscal Year 2024/25, CFD No. 85-1’s appropriations subject to this limit is $6,961,040, meaning that CFD No. 85-1 appropriations are expected to be 35% of the appropriation limit for the Fiscal Year 2024/25. The attached Resolution adopts the annual appropriations limit as required by Article XIIIB of the State Constitution.
FISCAL IMPACT:
The proposed Resolutions establish CFD 85-1'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 85-1, 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