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HomeMy WebLinkAboutMINUTES - 09132011 - C.156RECOMMENDATION(S): ACCEPT this report and AUTHORIZE the County Administrator, or designee, to execute the Maintenance of Effort Certification Form for FY 2010/11 as required by Chapter 886, Statutes of 1994 to receive Proposition 172 (public safety sales tax increment) funds, and to submit the Certificate to the County Auditor-Controller. FISCAL IMPACT: This Certificate of Maintenance of Effort is required by State statute as implemented by guidelines issued by the Office of the State Controller. Failure to submit the required certification form would result in the loss of more than $59 million in State Proposition 172 funds for the current fiscal year. BACKGROUND: This ½ cent sales tax was authorized in 1994 as a result of the 1993/94 state budget process. Proposition 172 (Senate Bill 509) designated that the ½ cent sales tax be deposited to newly-created state and local public safety trust funds and allocated to local agencies to APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 09/13/2011 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: JULIE ENEA (925) 335-1077 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: September 13, 2011 David Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: C.156 To:Board of Supervisors From:David Twa, County Administrator Date:September 13, 2011 Contra Costa County Subject:2010/11 CERTIFICATION OF PROPOSITION 172 PUBLIC SAFETY SALES TAX MAINTENANCE OF EFFORT fund public safety activities such as police, sheriff, fire, district attorney, county corrections, and ocean lifeguards. Court operations were explicitly excluded. To prevent supplantation of local revenues that would have otherwise been allocated to public safety functions with Proposition 172 sales tax, the Legislature enacted Assembly Bill 2788 as Chapter 886, Statutes of 1994. AB 2733 requires a local agency to commit at least the same resources as were committed in FY 1992/93 (minus certain exclusions), adjusted each year by any growth in its Proposition 172 revenue, as maintenance of effort (MOE) in order to qualify to receive Proposition 172 (Public Safety Sales Tax). AB 2733 does not specifically define what is meant by “public safety services” and allows each county to make its own computation. In implementing the MOE section of Assembly Bill 2788 on May 16, 1995, as indicated in the Certification Form, it was most advantageous for this County to define public safety as follows: District Attorney (Department 0242), Probation (Departments (0308, 0309, 0310, 0311), Public Defender (Department 0243), Sheriff-Coroner (Departments 0255, 0300, and 0359), and Inmate Medical Care (Department 0301). It should be noted that the definition of “public safety services” for computation of the MOE obligation does not in any way detract from the Board’s authority to designate those funds to whatever public safety department or service it chooses. The Board of Supervisors, in 1993, directed that all public safety sales tax proceeds will be allocated to the District Attorney and Sheriff departments. Due to the downturn in the California economy, public safety sales taxes received by Contra Costa County has gradually declined since FY 2005/06, by more than 10% over that five-year period. For the 2011/12 fiscal year, it is estimated that Proposition 172 funds will pay for 35% of the District Attorney’s annual net cost of operations and 26% of the Sheriff’s annual net cost of operations. BACKGROUND: (CONT'D) 2005/06 Actual $69,281,424 2006/07 Actual $67,318,904 2007/08 Actual $65,314,410 2008/09 Actual $57,641,994 2009/10 Actual $55,379,148 2010/11 Actual $60,388,430 2011/12 Budgeted $59,385,886 We have determined that for FY 2010/11, the adopted budget for the County-defined public safety services exceeded the County’s MOE obligation by more than $133 million. In computing the MOE, we followed the Public Safety MOE Requirement Uniform Guidelines for California Counties and Cities approved by the State Association of County Auditors. By authorizing the County Administrator to execute and submit the MOE Certification Form to the County Auditor-Controller, the Board will assure that the County will receive its its full allotment of Proposition 172 funds for the current year. CONSEQUENCE OF NEGATIVE ACTION: Failure to file the required certification will jeopardize the County's eligibility to received public safety sales tax revenue. CHILDREN'S IMPACT STATEMENT: None. ATTACHMENTS 2010/11 Proposition 172 MOE Certification Form 2010/11 Proposition 172 MOE Form A 2010/11 Proposition 172 MOE Form C Auditor-Controller CONTRA COSTA COUNTY AB2788 (Chapter 866/94) Maintenance of Effort Certification Form Name of County: Contra Costa Fiscal Year of Certification: 2010/11 AB2788 Maintenance of Effort (MOE) Calculation: Line 1: Total Public Safety Adopted Budget 242,491,274.00 (Amount of Line 4.1 from Form A) Line 2: Public Safety MOE 109,355,711.73 (Amount of Line 3.2 from Form A) Line 3: Difference (Amount of Line 1 minus Line 2) Over/(Under) AB2788 MOE Requirements 133,135,562.27 (*Enter this amount below.) Certification Statement: I hereby certify that the County of Contra Costa is /under (please circle one) the AB2788 Maintenance of Effort requirements concerning the use of Proposition 172 revenues in the amount of * 133,135,562.27 . Forms A and C are submitted in support of this calculation. Detailed records concerning this calculation are available upon request and will be retained. Signature of County Official: ________________________ Date Signed: ___________________________________ over Form A: AB2788 MOE Calculation Worksheet Contra Costa Step #1: Public Safety Services as Previously Defined In 1994/95, the County established their definition of public safety services consistent with Government Code Section 30052. Listed below are all departments included in this definition. District Attorney Health Detention-Inmates Probation Public Defender Sheriff (including Coroner) Step #2: Growth Adjusted Base Year The County determined the AB2788 base year amount in 1994/95 on Form B by using the 1992/93 adopted budget for all defined public safety departments. Line 2.1: Total Base Year Forward 117,028,128.41 (Adjusted AB2788 Base Amount from Prior Year Form A, Line 3.2) Step #3: New Base Amount for Local Agency AB2788 includes a growth factor provision equal to the previous years' growth in Proposition 172 revenues. The Auditor-Controller's Office will provide cities and counties with this amount. If appropriate, this amount should be added to the AB2788 Base Year. Line 3.1: Growth Amount -7,672,416.68 Line 3.2: Total Base Amount for Local Agency 109,355,711.73 (Total of lines 2.1 and 3.1) Step #4: Determine AB2788 Public Safety Budget for Certification Year The County should determine the AB2788 Public Safety Budget for the Certification year. The same departments and adjustments that were included in the AB2788 base year calculation have been entered on Form C. Please complete Form C to provide the following: Line 4.1: Total AB2788 Public Safety Budget 242,491,274.00 Step #5: AB2788 Maintenance of Effort (MOE) Calculation Please complete the AB2788 Certification Form using the above information. The calculation would be as follows: Line 1 of the Certification Form Take the amount of Line 4.1, Form A Line 2 of the Certification Form Less the amount of LIne 3.2, Form A Line 3 of the Certification Form Equals the amount over/(under) AB2788 MOE requirement. Form A Form C: AB2788 Maintenance-of-Effort (MOE) Base Year CalculationCertification Year: 2010/11CONTRA COSTA COUNTYPlease complete the following Form to calculate the AB2788 MOE base year. Describe all AB2788 adjustments in the space provided below.Public Safety Certification Year AB2788 AdjustmentsAdjusted AB2788Department Adopted Budget (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Base YearDistrict Attorney (0242) 27,549,800 0 2,542,461 395,000 225,000 850,000 23,537,339Probation (0308) 26,374,673 1,401,556 172,120 24,800,997Probation (0309) 24,122,941 4,317,500 19,805,441Probation (0310) 6,966,841 2,500,000 4,466,841Public Defender (0243) 16,766,823 85,00016,681,823Sheriff (0255) 77,963,912 485,360 150,000 258,778 0 77,069,774Sheriff Contract Services (0277) 33,075,966 8,20033,067,766Sheriff Detention (0300) 56,849,932 187,100 33,067,766 210,115 23,384,951Sheriff-Coroner (0359) 2,321,2092,321,209Hlth Detention Inmates (0301) 17,355,133 17,355,133 Total 289,347,230 680,660 150,000 8,605,295 395,000 33,067,766 225,000 2,500,000 850,000 382,235 0 242,491,274 Enter amount onAB2788 MOE Form A, Line 4.1Adjustments Comments: (1) Fixed Assets, Lease Purchases & Debt Service(2) POST (3) Grants(4) Transfers/Recording Fees for Real Estate Fraud(5) Court Security, Hospital Security, EHS Security(6) Contracts with Other Jurisdictions(7) State Aid & Fed Aid Placement[8] Narcotics, Environmental, Fraud Forfeitures/Damages[9] STC ReimbursementCompleted By: Julie Enea, Senior Deputy County Administrator Phone: (925) 335-1077 Date: September 15, 2011 MOE-CALC.XLS