County of Sonoma Agenda Item Summary Report

Transcription

1 Revision No County of Sonoma Agenda Item Summary Report Agenda Item Number: 1 (This Section for use by Clerk of the Board Only.) Clerk of the Board 575 Administration Drive Santa Rosa, CA To: Board of Supervisors, Board of Directors of Agricultural Preservation And Open Space District, Board of Directors of Sonoma County Water Agency Board Agenda Date: February 13, 2018 Vote Requirement: Majority Department or Agency Name(s): County Administrator s Office Staff Name and Phone Number: Nikolas Klein, Title: Fiscal Year Appropriations Limit Recommended Actions: Supervisorial District(s): A. Adopt a Concurrent Resolution establishing Fiscal Year appropriation limits for County and Board of Supervisors-Governed Special Districts, County Service Areas, Sonoma County Agricultural Preservation and Open Space District, and Sonoma County Water Agency. B. Authorize the Chair to execute a Memorandum of Agreement Regarding Transfer of Appropriations Limit with the North Sonoma Coast Fire Protection District, as result of establishment of the new independent district in FY Executive Summary: This item details the FY Appropriations Limit calculations for the County of Sonoma and Board of Supervisors-governed special districts and agencies. In addition, due to establishment of the North Sonoma Coast Fire Protection District in FY , this item discusses the need to execute an agreement to transfer appropriations limit of $2.3 million from the County Service Area #40 special district to the newly formed independent district. In accordance with the California Constitution, the County s appropriations limit specifies the maximum amount of tax revenue it is allowed to appropriate within a given fiscal year. The County s FY Proposition 4 Appropriation Limit capacity is $628.5 million, which is $335.6 million more than the County s adopted budget revenues of $292.9 million that are subject to the limit. Notice of establishing the FY Appropriation Limits was published January 26, 2017 in the Santa Rosa Press Democrat. The documentation and supporting materials to establish the limit have been available for public review since January 26, 2017 at the County Administrator's Office. Pursuant to Article XIII-B of the California Constitution, and Section 7910 of the Government Code, the attached resolution formally establishes the appropriation limits, and includes notice of the appropriate period of judicial review.

2 Revision No Discussion: Background On November 6, 1979, voters approved the Gann Spending Limitation (Proposition 4), which established Article XIII-B of the State Constitution. Article XIII-B sets limits on the amount of tax revenues the State and most local governments can appropriate within a given fiscal year. The Gann Limit does not apply to the entire County budget. The limit only applies to appropriations from proceeds of taxes from both the general fund and special funds of government entities, which includes: (1) property, sales, transient occupancy, and other tax revenues; (2) interest earnings on invested tax revenues; and (3) any revenues collected by a regulatory license fee or user charge in excess of the amount needed to cover the cost of providing that regulation, product, or service. Further refined by Propositions 98 and 99 in 1988, and Proposition 111 in 1990, Article XIII-B provides that appropriation limits are to be established annually by each governmental entity in accordance with the constitutional amendments and enabling state legislation. Current appropriation limits are generally based upon actual revenue appropriations during the initial base year of FY (per Prop 111), and adjusted annually thereafter to account for California per capita cost of living increases, and year-over-year population growth as published by the California State Department of Finance. The limits for Fiscal Year must be adopted for County government and those Board of Supervisors-governed special districts and County service areas that had a property tax rate of 12.5 cents or more per $100 of assessed valuation in Appropriations from non-tax revenues and proceeds are excluded from the limit, such as: Federal funds, charges for services, regulatory fees, grants, loans, and donations. Exemptions are also made for voter-approved debt, debt that existed as of January 1, 1979, and the cost of compliance with court or Federal government mandates. Of particular note, Proposition 111 (The Traffic Congestion Relief and Spending Limitation Act of 1990) amended Article XIII-B to allow for funding congestion relief, mass transit, health care, services for the elderly, and other priority programs, while still providing an overall limit on state and local spending. Proposition 111 changed the previous Constitutional cost-of-living and population factors for both the state and local appropriations limits, and added new exclusions from the appropriations limit. However, none of the exclusions allowed by Proposition 111 were employed in the County s calculation for FY , as total revenues appropriations are far below the new limit. In general, the County may not exceed the appropriation limit adopted today. However, in the event of a declared emergency, the appropriation limit may be increased. Voters of a jurisdiction may also authorize a temporary increase in the Appropriations Limit, not to exceed a period of four years, at which point the limit would revert to what it would otherwise have been. If revenues exceed the adopted appropriation limit for two consecutive fiscal years, the County would return the excess through a revision of the tax rates in the two subsequent fiscal years. Based on the FY appropriation limit capacity, which exceeds projected applicable revenues by $335.6 million, it is unlikely that this situation would occur for the County in the near future.

3 Revision No Fiscal Year Calculations Pursuant to Article XIII-B and Government Code section 7900, et seq., the Fiscal Year Appropriations Limit will be established by adjusting the Fiscal Year Appropriations Limit for (a) population growth, (b) per capita income change, and (c) the transfers of financial responsibility described below. A. Proposition Factors for Limit Calculation The California State Department of Finance sends to local governments an annual letter providing an estimate of the percent change in population and change in the per capita personal income, which are both used to calculate each local government s appropriation limit. The Department s letter dated May 2017 provides key factors to adjust the FY spending limit (refer to Resolution Exhibit A). According to the letter, the following percentages can be utilized in computing the appropriations limits for the County and special districts governed by the Board of Supervisors: Year Table 1: Appropriation Limit Change Factors Sonoma County Plus Contiguous County Population Change Factor Total County Population Change Factor County Population Change Factor California Per Capita Personal Income Factor to % 0.61% 0.56% 3.69% B. County Appropriation Limit Calculation Per Government Code 7901, a county may choose to use the change in population from any one of the following: (1) the change in population within its jurisdiction; (2) the change in population within its jurisdiction, combined with the change in population within all counties having borders that are contiguous to that county; or (3) the change in population within the incorporated portion of the county. Sonoma County typically uses the highest of the three factors in order to provide maximum appropriation flexibility. The FY limit adjustment is thus the combination of the income factor change of 3.69%, and the most favorable population percentage change available. Of the three population change factors, the most favorable percentage was 0.61%, equal to the change in population within Sonoma County s jurisdiction, combined with the change in neighboring counties (Lake, Marin, Mendocino, Napa, and Solano). The income and population factors are combined to provide a single limit adjustment factor, as follows: (Income Factor) x (Population Factor) = (Appropriation Limit Adjustment Factor) Applying the adjustment factor above to the FY fiscal year limit results in the following FY Appropriations Limit calculated in Table 2:

4 Revision No Table 2: FY County Appropriation Limit Calculation Description Amount FY Appropriations Limit (exclusive of Refuse Disposal and $598,831,297 Transit Adjustments) Multiplied by the FY Adjustment Factor FY Base Limit (Prior to Adjustments) $624,760,692 Less: Reduction of Tax Support for Refuse Disposal $(647,046) Plus: Limit increase per the Agreement for Transit Services between the County and local municipalities for FY (Board Action 5/9/17 item #6). $4,357,564 FY Appropriations Limit $628,471,210 C. Appropriation Limit Adjustments As noted in Table 2, the first adjustment decreasing the FY limit is due to the reduction of tax support for refuse disposal operations. The Constitution and enabling state legislation requires that if tax support of a service is reduced, and fees are increased to offset the reduction of tax support, the limit must be decreased by an equivalent amount. Historically, the County provided $647,046 of tax support for refuse disposal, until FY , when tax support for refuse disposal was terminated. Because refuse disposal operations are now funded by fees and not tax proceeds, the appropriations limit must be manually adjusted each year to remove the fixed $647,046 amount. The second adjustment cited in Table 2 increases the appropriation limit pursuant to the FY agreement for transit services between the County and cities in Sonoma County, based on the summary of the coordinated claim approved by the Board of Supervisors on May 09, 2017 (Item #6). Refer to Resolution Exhibit B for details. The total appropriation adjustment of $4,357,564 is derived by summing the following amounts in Section III of the transit claim, titled Summary of TDA Fund Activity : Table 3: FY Transit Claim Adjustment Components Adjustments for City Allocations Claimed by the County Amount FY Cities Contributions to Sonoma County Transit $2,235,424 FY Contract Services $1,298,784 FY Cities Contributions to Sonoma County Paratransit $823,356 Total $4,357,564 The limit transfer from the cities allows the County to provide transit services to other jurisdictions without adversely impacting its available appropriation limit for provision of other tax-supported activities. This adjustment is made in accordance with Article XIII-B, Section 3, of the State Constitution. In addition, during the fiscal year a portion of unincorporated county in the Roseland area was annexed into the City of Santa Rosa. This included a transfer of certain services and tax revenue from the County

5 Revision No to the City, and as such will result in a transfer of appropriations limit. This adjustment is not included in this item and will be included in the FY appropriations limits. D. District Appropriations Limit Calculation The appropriation limit calculation for special districts and other governmental entities under the financial/budgetary control of the Board of Supervisors uses the overall county population factor of 0.50%, and the California per capita personal income factor of 3.69% cited in Table 1 of this report. These two factors are combined to provide a single limit adjustment factor in the following manner: (Income Factor) x (Population Factor) = (Appropriation Limit Adjustment Factor) The , or 4.21%, factor is then multiplied by the approved FY limits for each district in order to establish their respective FY appropriations limits. The full list of new district limits is included in the resolution for the Board s review. The total combined Proposition 4 appropriation limit capacity for all twelve Board Special Districts is $81.7 million, which is $38.7 million higher than the Special Districts aggregate FY adopted budget revenues of $43.0 million that are subject to the limit. For each of the twelve special districts, revenue appropriations subject to the Gann limit are between 15% and 93% below their respective limits. The annexation of Roseland discussed above will affect the appropriations limit for CSA #41 Roseland Lighting. This change will be reflected in the FY appropriations limits. North Sonoma Coast Fire Protection District Limit Transfer Agreement In FY , portions of County Service Area #40 including the Sea Ranch and Annapolis formed an Independent Special District, the North Sonoma Coast Fire Protection District (NSCFPD). While agreements to share property tax were put in place in advance of the formation of the NSCFPD and the Local Agency Formation Commission (LAFCO) provided a provisional limit which was subsequently adopted by the NSCFPD Board of Directors, a formal agreement to transfer a mutually agreed upon amount of appropriations limit from County Service Area #40 to the new NSCFPD was not executed at the time. LAFCO set the provisional limit for the District at $2,250,000. While the County do not concur with LAFCO s calculation, which did not factor adjustments to property tax including those associated with the Educational Revenue Augmentation Fund in allocating a total amount, County Service Area #40 has a sufficiently high appropriations limit to allow for the transfer of this amount without harming County Service Area #40 s ability to appropriate revenue. As such, this item authorizes the chair to sign a formal appropriations limit transfer agreement with NSCFPD and adjusts the appropriations limit for County Service Area #40 accordingly. Prior Board Actions: The Board adopts the appropriation limit annually. Strategic Plan Alignment Goal 2: Economic and Environmental Stewardship By adopting appropriation limits the County demonstrates fiscal responsibility and maintains appropriate reserves, in compliance with State law.

6 Revision No Fiscal Summary Expenditures Funding Sources Budgeted Expenses Additional Appropriation Requested FY Adopted FY Projected FY Projected Total Expenditures General Fund/WA GF State/Federal Fees/Other Use of Fund Balance Narrative Explanation of Fiscal Impacts: There are no direct fiscal impacts. Contingencies Total Sources Staffing Impacts Position Title (Payroll Classification) Monthly Salary Range (A I Step) Additions (Number) Deletions (Number) Narrative Explanation of Staffing Impacts (If Required): None Attachments: Concurrent Resolution and related exhibits. Agreement for Transfer of Limit Appropriations North Sonoma Coast Fire Protection District Related Items On File with the Clerk of the Board: None

7 County of Sonoma State of California Date: February 13, 2018 Item Number: Resolution Number: 4/5 Vote Required CONCURRENT RESOLUTION OF THE BOARD OF SUPERVISORS OF SONOMA COUNTY, AGRICULTURAL PRESERVATION AND OPEN SPACE DISTRICT, AND SONOMA COUNTY WATER AGENCY ESTABLISHING APPROPRIATIONS LIMITS FOR COUNTY GOVERNMENT AND BOARD OF SUPERVISORS GOVERNED SPECIAL DISTRICTS AND COUNTY SERVICE AREAS FOR FY AS REQUIRED BY ARTICLE XIII B OF THE CALIFORNIA CONSTITUTION, GIVING INSTRUCTION TO THE COUNTY ADMINISTRATOR AND COUNTY COUNSEL, AND GIVING NOTICE OF APPROPRIATE PERIOD OF LIMITATION FOR JUDICIAL REVIEW Whereas, Article XIII B of the California Constitution, added by Proposition 4 (November, 1979) and subsequently amended by Proposition 98 (November 1988) and Proposition 111 (June 1990), requires that appropriation limits be established for each entity of government having a secured property tax rate of 12.5 cents or more per $100 of assessed valuation in ; and Whereas, staff from the offices of the County Administrator and Auditor-Controller have prepared documentation necessary to establish the appropriations limits for the FY for county government and Board of Supervisors governed special districts and county service areas; and Whereas, on January 26, 2018, documentation used in the determination of the appropriation limits and other necessary determinations was made available to the public, and due notice was given of this Board s intent to establish appropriation limits at its regularly scheduled meeting of February 13, 2018; and Whereas, among the documentation made available to the public, the County Administrator has made available a copy of this resolution including the following documentation: 1. Summary of the FY coordinated claim for Sonoma County Transit Services approved by the Board of Supervisors on May 9, 2017 marked Exhibit A and attached hereto;

8 Resolution # Date: Page 2 2. Letter from the Department of Finance, dated May 2017 marked Exhibit B and attached hereto; 3. Notice of Revenue and Appropriation Limit Adoption, marked Exhibit C and attached hereto; Whereas, in accordance with State law, this Board considered the establishment of the appropriation limits at its regularly scheduled meeting on February 13, Now, Therefore, Be It Resolved by the Board of Supervisors that the following appropriations limits are hereby adopted for Sonoma County and special districts and county service areas governed by the Board of Supervisors: FY Appropriations Limits Sonoma County - See Notes (A) and (B) below 628,471,210 Sonoma County Water Agency Zone 2A 11,632,078 County Service Area #41 (Roseland) 495,276 County Service Area #41 (Sonoma Valley) 574,598 County Service Area #40 (Fire Services) See Note (C) below 2,974,311 County Service Area #41 (Lighting District) 1,835,631 CFD #4 Wilmar 461,901 CFD #5 Dry Creek 461,901 CFD #7 Mayacamas 115,468 Bittner Lane Permanent Road District 10,605 Monte Rosa Div. #1 Permanent Road District 9,469 Peaks Pike Permanent Road District 10,606 Sonoma County Open Space District 63,142,540 (A) Sonoma County s limit was decreased by ($647,046) due to the reduction of tax support for refuse disposal operations. The Constitution and enabling state legislation requires that if tax support of a service is reduced, and fees are increased to offset the reduction of tax support, the limit must be decreased by an equivalent amount. (B) Sonoma County s limit was increased for the city-county agreement for transit services. The appropriations limit increase includes $4,357,564 for FY to the County from the cities for transportation tax (Transportation Development Act) financed transit services performed by County for cities. (C) County Service Area #40 (Fire Services) limit decreased for FY in the amount of $2,250,000 pursuant to the Agreement for Transfer of Appropriations Limit by and between the North Sonoma Coast Fire Protection District and the County of Sonoma.

9 Resolution # Date: Page 3 Be It Further Resolved that this Board finds that the public meeting of February 13, 2018 to establish the FY Appropriations Limits was noticed on January 26, 2018 by publication in the Santa Rosa Press Democrat; the documentation and materials supporting necessary determinations to establish the FY Appropriations Limits have been available for public review since January 25, 2018 at the County Administrator's Office; and that pursuant to the provisions of Section 7910 of the Government Code, any action or proceeding to review, attack, set aside, void, annul or amend the action taken by the Board of Supervisors, acting as the governing body of the County of Sonoma and the governmental entities described herein, by this Resolution or the appropriations described herein must be commenced within 45 days of the date of adoption of this Resolution; and Be It Further Resolved that this Board anticipates additional clarification of the provisions of Article XIII B of the California Constitution through anticipated opinions of the County Counsel of this County and counsel for other counties and other public agencies, opinions of the Attorney General, case law and additional implementing legislation. Because these clarifications may result in the necessity of reviewing the limit calculations, the County Administrator and the County Counsel are directed to advise this Board, from time-to-time, on changes in the law that may necessitate such limit modifications; and Be It Further Resolved that this Board will authorize via a resolution any additional adjustments to the limit as permitted by Article XIII B for transfers of responsibility for services; and Be It Further Resolved that this Board reserves the authority to make changes to the appropriations limits based on revised Appropriations Limit Procedure Guidelines when issued by the State Controller s County Accounting Standards and Procedures Committee, and when other necessary population and nonresidential property value change information becomes available. Supervisors: Gorin: Rabbitt: Zane: Hopkins: Gore: Ayes: Noes: Absent: Abstain: So Ordered.

10 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim FY 2018 TDA, STA & Measure M Summary FY TDA / STA / Measure M - Fund Summary 1.5 TDA STA MEASURE M Total TDA / STA / MEASURE M Forecasted Revenue: $23,700, % $2,231,069 $2,370, % $28,301, % MTC Contributions: 829, % , % County Administration (Auditor) 45, % , % Article 3 - Bicycle & Pedestrian Projects 456, % , % FY Funds to Transit Operators $22,368, % $2,231, % $2,370, % $26,970, % Petaluma Transit 1,667, % 208, % 285, % 2,161, % Santa Rosa CityBus 5,965, % 788, % 829, % 7,583, % Sonoma County Transit* 9,144, % 1,196, % 1,255, % 11,596, % Golden Gate Transit 5,592, % 37, % ,629, % Totals by Funding Source $22,368, % $2,231, % $2,370, % $26,970, % % by Funding Source 82.94% 8.27% 8.79% % Sonoma County Coordinated Claim FY Summary

11 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim FY 2018 TDA I. TDA Funds Available 1.5 SCTA Adopted Coordinated Adopted FY 2017 TDA Estimate: $22,800,000 Claim Distribution Revised FY 2017 TDA Estimate (1-2017): $23,050,000 FY FY Auditor's FY 2018 Estimate: $23,700,000 TDA Forecast $23,700,000 $22,800,000 Less: MTC Administration 118, ,000 % Change- FY 2017 Adopted Estimate MTC Planning 711, ,000 vs. FY 2018 Auditor's Estimate: 3.95% County Administration 45,000 40,000 Subtotal: 22,825,500 21,962,000 Less: Article 3 Pedestrian/Bicycle Funding (2.0%) 456, ,240 Total: Article 4 and 8 available $22,368,990 $21,522,760 II. Distribution of TDA Funds A. Distribution by Apportionment Area FY FY Area Population* Percent Apportionment Apportionment Difference Cloverdale 8, % $393,272 $377,671 $15,601 Cotati 7, % 318, , Healdsburg 11, % 521, ,871 14,476 Petaluma 60, % 2,690,514 2,582, ,232 Rohnert Park 42, % 1,871,796 1,781,532 90,264 Santa Rosa 175, % 7,828,315 7,506, ,132 Sebastopol 7, % 335, ,583 9,846 Sonoma 10, % 484, ,170 10,011 Windsor 27, % 1,204,593 1,185,534 19,059 County 150, % 6,720,782 6,464, ,447 Total 501, % $22,368,990 $21,522,761 $846,229 * California Department of Finance - January 1, Based on published population by entity - Table E-1. B. Funds allocated to Golden Gate Transit for regional transit services: FY FY Area Distribution Allocation Allocation Cloverdale % $39,631 $38,140 Cotati % 91,740 92,684 Healdsburg % 52,538 50,941 Petaluma % 774, ,321 Rohnert Park % 538, ,874 Santa Rosa % 1,957,079 1,875,715 Sebastopol % 33,802 32,839 Sonoma % 48,793 47,674 Windsor % 121, ,634 County % 1,934,241 1,878,511 Total $5,592,248 $5,404, % 25.00% of County TDA Sonoma County TDA Coordinated Claim Page 1 of 4

12 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim FY 2018 TDA 1.5 C. Contribution to Sonoma County Transit for intercity services between Petaluma and Santa Rosa: (Sonoma County Transit Routes 44 & 48) FY Percent of Fixed-Route Paratransit Area Route Budget* Allocation Allocation** Petaluma 14.64% $207,476 (1) $41,495 * Cotati and Rohnert Park contributions to Sonoma County Transit Routes 44 & 48 are included in Section D. (1) - includes contribution for maintenance of the ** Assumes 20% of fixed-route contribution for ADA complementary paratransit services. Petaluma Transit Mall. D. Funds allocated to support intercity Sonoma County Transit/Paratransit services: FY FY Total 80% 20% Percent Total 80% 20% Area Contribution Fixed Route Paratransit of TDA Contribution Fixed Route Paratransit Cotati $181,421 $145,137 $36,284 Remainder $178,062 $142,450 $35,612 Sebastopol 143, ,422 28,606 Remainder 143, ,870 28,717 Healdsburg 285, ,495 57,124 Remainder* 289, ,941 57,985 Cloverdale 232, ,972 46,493 Remainder* 239, ,246 47,811 Windsor 767, , ,477 Remainder 763, , ,704 Rohnert Park 470, ,148 94,037 Remainder 494, ,645 98,911 Sonoma 204, ,550 40,887 Remainder 202, ,100 40,525 Total $2,284,540 $1,827,632 $456,908 $2,311,332 $1,849,066 $462,266 E. Other contract services between apportionment areas: FY Claiming FY Area Contribution Agency Purpose Contribution Cloverdale $114,583 County Local Route 68 $110,232 County County 94,188 Santa Rosa Support for Santa Rosa Transit Mall Operations 90,611 Cotati Total FR * PT 48,960 County 47,101 Cotati* 39,168 County Local Routes 10 & 11 37,681 Cotati** 9,792 County Local Paratransit Contribution** 9,420 Healdsburg 178,883 County Local Route ,090 Rohnert Park FR & PT Total 838,537 County 806,694 Rohnert Park* 670,830 County Local Routes 10,11,12,14 645,355 Rohnert Park** 167,708 County Local Paratransit Contribution** 161,339 Sebastopol FR & PT Total 158,040 County 152,038 Sebastopol* 126,432 County Local Route ,631 Sebastopol** 31,607 County Local Paratransit Contribution** 30,407 Sonoma FR & PT Total 232,763 County 223,924 Sonoma* 186,211 County Local Routes 32 & ,140 Sonoma** 46,552 County Local Paratransit Contribution** 44,784 Windsor FR & PT Total 319,683 County 307,543 Windsor* 255,747 County Local Route 66 *** 246,035 Windsor** 63,936 County Local Paratransit Contribution** 61,508 * Contributions assume a 3.95% change over FY (from page 1). ** Assumes 20% of fixed-route contribution for ADA complementary paratransit services. *** Includes contribution for maintenance of the Windsor Intermodal Facility. Sonoma County TDA Coordinated Claim Page 2 of 4

13 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim FY 2018 TDA 1.5 F. Paratransit Contributions See paratransit contributions detailed in Section II, C,D,E and summarized in Section III column F. Prior-Year Revenue Adjustment* *Prior year revenue adjustments are reflected in "Prior Year TDA Funds Available" on page 4. Balances are in accordance with MTC's Regional Fund Estimate dated February 22, IV. Distribution of TDA Article 3 Pedestrian/Bicycle Funds FY Current-Year Area Population Apportionment Funds Available Cloverdale % $8,026 Cotati % 6,505 Healdsburg % 10,640 Petaluma % 54,908 Rohnert Park % 38,200 Santa Rosa % 159,762 Sebastopol % 6,845 Sonoma % 9,881 Windsor % 24,584 County % 137,159 Total % $456,510 $0 Article 3 Summary Projected FY Apportionment $456,510 - Other FY Article 3 Funds Available for Distribution 456,510 Projected Prior-Year Fund Balance* 745,716 Total Article 3 Funds Available $1,202,226 * Per MTC Regional Fund Estimate Article 3 claimants should confirm their prior-year balance with SCTA prior to submitting a claim to MTC. Sonoma County TDA Coordinated Claim Page 3 of 4

14 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim FY 2018 TDA & Measure M Summary III. Summary of TDA Fund Activity 1.5 A. B. C/D. E. +/- F. Projected Projected Projected FY FY FY FY FY FY Prior-Year TDA Total TDA TDA Contributions Contributions Contract Contributions to TDA Funds Funds Agency Apportionment to GGT to SCT Services SC Paratransit Entitlement Available* Available Cloverdale $393,272 ($39,631) ($191,246) ($114,583) ($47,811) $0 $0 $0 Cotati 318,762 (91,740) (142,450) (39,168) (45,404) Healdsburg 521,347 (52,538) (410,824) ---- (57,985) Petaluma 2,690,514 (774,330) (207,476) ---- (41,495) 1,667, ,828 2,397,041 Rohnert Park 1,871,796 (538,703) (395,645) (670,830) (266,619) Santa Rosa 7,828,315 (1,957,079) , ,965,424 1,959,197 7,924,621 Sebastopol 335,429 (33,802) (114,870) (126,432) (60,325) Sonoma 484,181 (48,793) (162,100) (186,211) (87,077) Windsor 1,204,593 (121,391) (610,815) (255,747) (216,640) County 6,720,782 (1,934,241) 2,235,424 1,298, ,356 9,144,106 4,988,483 14,132,589 GGT ,592, ,592,248 78,639 5,670,887 Total $22,368,990 $22,368,990 $7,756,147 $30,125,138 * From MTC's Regional Fund Estimate dated Claimants should confirm prior-year balances with MTC prior to submitting a claim for prior-year funds. Measure M Transit Distribution FY TDA Forecast $23,700,000 FY Measure M Forecast $23,700,000 Measure M Distribution to Transit (19%) $4,503,000 - Distribution for Bicycle & Pedestrian Projects (4%) 948,000 - Distribution to SMART (5%) 1,185,000 - Distribution to Transit Operators (10%) 2,370,000 Distribution to Transit Operators based on TDA Population Percentages Distribution Petaluma Transit % 285,061 Santa Rosa CityBus % 829,412 Sonoma County Transit % 1,255,527 Total % $2,370,000 Sonoma County TDA Coordinated Claim Page 4 of 4

15 Sonoma County TDA Coordinated Claim Fiscal Year Updated SCTA Approved Claim Attachment "A" Consolitated Summary of Claims by Eligible Operator 1.5 G. H. I. A. B. Distribution C/D. E. +/- F. Projected Coordinated Projected Projected FY Initial FY Percent FY FY FY FY Claim Prior-Year TDA Total TDA TDA Distribution Contributions after GGT Contributions Contract Contributions to TDA Distribution Funds Funds Apportionmen Area / Claimant Apportionment Percent to GGT Subtotal Contribution to SCT Services SC Paratransit Entitlement Percent Available* Available Petaluma - Petaluma Transit 2,690, % (774,330) 1,916, % (207,476) ---- (41,495) 1,667, % 729,828 2,397,041 Santa Rosa - Santa Rosa CityBus 7,828, % (1,957,079) 5,871, % , ,965, % 1,959,197 7,924,621 County - Sonoma County Transit 11,850, % (2,860,839) 8,989, % 207,476 (94,188) 41,495 9,144, % 4,988,483 14,132,588 GGT - Golden Gate Transit ,592,248 5,592, % ,592, % 78,639 5,670,887 Total $22,368, % $22,368, % $22,368, % $7,756,147 $30,125,137 * From MTC's Regional Fund Estimate dated Claimants should confirm prior-year balances with MTC prior to submitting a claim for prior-year funds. Claim Summary by Apportionment Area - FY TDA Funds Sonoma Petaluma Santa Rosa County FY Apportionment Apportionment Apportionment TDA Claimant Area Area Area*** Entitlement Petaluma - Petaluma Transit 1,667,213 1,667,213 Santa Rosa - Santa Rosa CityBus 5,871,237 94,188 5,965,424 County - Sonoma County Transit 248,971 8,895,134 9,144,105 GGT - Golden Gate Transit 774,330 1,957,079 2,860,839 5,592,248 Total by Apportionment Area $2,690,514 $7,828,315 $11,850,160 $22,368,990 Sonoma County TDA Coordinated Claim Attachment "A"

16 Sonoma County STA Coordinated Claim per MTC Regional Fund Estimate dated Updated SCTA Approved Claim STA Projected FY 2018 STA Funds Available for Allocation - By Operator 1.4 Distribution Total FY 2018 Funds Available for Entity Population-Based Regional Paratransit Revenue-Based Allocation Petaluma Transit $157,186 $40,634 $11,051 $208,871 Santa Rosa CityBus 571, ,227 $98, ,211 Sonoma County Transit* 904, ,967 $112,793 1,196,450 Golden Gate Transit , ,537 Total $1,633,561 $375,365 $222,142 $2,231,068 * includes City of Healdsburg Revenue-Based funds

17 Sonoma County STA Coordinated Claim SCTA Approved Claim per MTC Regional Fund Estimate dated Updated STA Projected FY 2018 STA Revenue Estimate 1.4 Operator Population* % Population Population-Based Regional Paratransit Revenue-Based Total Petaluma Transit 60, % $196,483 $45,148 $11,051 $252,682 Santa Rosa CityBus 175, % 571, ,364 $98, ,347 Sonoma County Transit 265, % 865, ,853 $112,793 1,177,038 Golden Gate Transit Total 501, % $1,633,561 $375,365 $222,142 $2,231,068 * California Department of Finance - January 1, Based on published population by entity - Table E-1. Distribution STA Population-Based Fund Summary Distribution by Operator Petaluma Santa Rosa Sonoma County Total Transit CityBus Transit FY 18 Funds Available $1,633,561 $196,483 $571,686 $865,393 FY 18 Allocation to Sonoma County Transit (39,297) ,297 FY 18 Total Funds Available $1,633,561 $157,186 $571,686 $904,689 FY 2018 Multi-Jurisdictional STA Project List (Population-Based Funds) Distribution by Operator Petaluma Santa Rosa Sonoma County Claimant Total Transit CityBus Transit ADA Implementation SCT $39,297 $39, $39,297 Total $39,297 $39, $39,297 STA Regional Paratransit Fund Summary Distribution by Operator Petaluma Santa Rosa Sonoma County Claimant Total Transit CityBus Transit FY 18 Funds Available $375,365 $45,148 $131,364 $198,853 FY 18 Regional ADA Support GGT (37,537) (4,515) (13,136) (19,885) FY 18 Total Funds Available $337,829 $40,634 $118,227 $178,967 Sonoma County STA Coordinated Claim Page 2 of 2

18 May 2017 Dear Fiscal Officer: Subject: Price Factor and Population Information Appropriations Limit The California Revenue and Taxation Code, section 2227, requires the Department of Finance (Finance) to transmit an estimate of the percentage change in population to local governments. Each local jurisdiction must use their percentage change in population factor for January 1, 2017, in conjunction with a change in the cost of living, or price factor, to calculate their appropriations limit for fiscal year Attachment A provides the change in California s per capita personal income and an example for utilizing the price factor and population percentage change factor to calculate the appropriations limit. Attachment B provides the city and unincorporated county population percentage change. Attachment C provides the population percentage change for counties and their summed incorporated areas. The population percentage change data excludes federal and state institutionalized populations and military populations. Population Percent Change for Special Districts Some special districts must establish an annual appropriations limit. The Revenue and Taxation Code, section 2228 provides additional information regarding the appropriations limit. Article XIII B, section 9(C) of the California Constitution exempts certain special districts from the appropriations limit calculation mandate. The Code and the California Constitution can be accessed at the following website: Special districts required by law to calculate their appropriations limit must present the calculation as part of their annual audit. Any questions special districts have on this requirement should be directed to their county, district legal counsel, or the law itself. No state agency reviews the local appropriations limits. Population Certification The population certification program applies only to cities and counties. Revenue and Taxation Code section mandates Finance to automatically certify any population estimate that exceeds the current certified population with the State Controller s Office. Finance will certify the higher estimate to the State Controller by June 1, Please Note: Prior year s city population estimates may be revised. If you have any questions regarding this data, please contact the Demographic Research Unit at (916) MICHAEL COHEN Director By: AMY M. COSTA Chief Deputy Director Attachment

19 May 2017 Attachment A A. Price Factor: Article XIII B specifies that local jurisdictions select their cost of living factor to compute their appropriation limit by a vote of their governing body. The cost of living factor provided here is per capita personal income. If the percentage change in per capita personal income is selected, the percentage change to be used in setting the fiscal year appropriation limit is: Per Capita Personal Income Fiscal Year (FY) Percentage change over prior year B. Following is an example using sample population change and the change in California per capita personal income as growth factors in computing a appropriation limit : Per Capita Cost of Living Change = 3.69 percent Population Change = 0.85 percent Per Capita Cost of Living converted to a ratio: = Population converted to a ratio: = Calculation of factor for FY : x =

20 Fiscal Year Attachment B Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 and Total Population, January 1, 2017 County City Percent Change Population Minus Exclusions Total Population Sonoma Cloverdale ,833 8,931 8,931 Cotati ,250 7,272 7,272 Healdsburg ,757 11,800 11,800 Petaluma ,479 60,941 60,941 Rohnert Park ,936 42,067 42,067 Santa Rosa , , ,799 Sebastopol ,559 7,579 7,579 Sonoma ,944 10,989 10,989 Windsor ,269 27,371 27,371 Unincorporated , , , , , ,120 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

21 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Alameda ,476,184 1,491, ,626,047 1,642,173 Alpine ,160 1,151 Amador ,110 12, ,056 34,771 Butte , , , ,404 Calaveras ,049 4, ,160 45,082 Colusa ,735 11, ,965 22,043 Contra Costa , , ,126,740 1,139,429 Del Norte ,480 4, ,783 24,901 El Dorado ,757 31, , ,965 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

22 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Fresno , , , ,243 Glenn ,903 13, ,543 28,635 Humboldt ,465 64, , ,771 Imperial , , , ,463 Inyo ,968 3, ,532 18,519 Kern , , , ,478 Kings , , , ,833 Lake ,385 20, ,702 64,857 Lassen ,201 8, ,196 23,273 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

23 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Los Angeles ,118,928 9,179, ,173,616 10,231,933 Madera ,377 78, , ,063 Marin , , , ,541 Mariposa ,085 18,066 Mendocino ,313 29, ,610 88,973 Merced , , , ,512 Modoc ,679 2, ,542 9,502 Mono ,984 8, ,522 13,581 Monterey , , , ,950 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

24 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Napa , , , ,220 Nevada ,886 31, ,535 98,754 Orange ,046,199 3,067, ,171,408 3,193,280 Placer , , , ,837 Plumas ,133 2, ,837 19,819 Riverside ,972,073 2,002, ,339,281 2,375,851 Sacramento , , ,491,185 1,509,336 San Benito ,314 38, ,621 56,854 San Bernardino ,807,829 1,830, ,106,654 2,131,186 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

25 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions San Diego ,745,487 2,771, ,213,903 3,243,378 San Francisco , , , ,976 San Joaquin , , , ,730 San Luis Obispo , , , ,871 San Mateo , , , ,063 Santa Barbara , , , ,682 Santa Clara ,835,121 1,850, ,921,399 1,936,960 Santa Cruz , , , ,518 Shasta , , , ,361 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

26 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Sierra ,194 3,207 Siskiyou ,418 20, ,658 44,624 Solano , , , ,440 Sonoma , , , ,106 Stanislaus , , , ,057 Sutter ,752 76, ,614 96,956 Tehama ,057 22, ,765 63,818 Trinity ,548 13,529 Tulare , , , ,428 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

27 Fiscal Year Attachment C Annual Percent Change in Population Minus Exclusions* January 1, 2016 to January 1, 2017 County Percent Change Population Minus Exclusions Tuolumne ,898 4, ,286 52,044 Ventura , , , ,143 Yolo , , , ,896 Yuba ,587 15, ,103 72,352 *Exclusions include residents on federal military installations and group quarters residents in state mental institutions, state and federal correctional institutions and veteran homes.

28 Resolution Exhibit C Notice of Fiscal Year Appropriation Limit Adoption for County Government and Board of Supervisors Governed Special Districts and Service Areas in Compliance with Article XIII B of the State Constitution Notice is hereby given that the Board of Supervisors of the County of Sonoma, as the governing body of said county and various Special Districts and County Service Areas, will complete the establishment of appropriations limits in compliance with Article XIII B of the State Constitution for said county, including said Special Districts and County Service Areas, for the fiscal year, commencing July 1, 2017 and ending June 30, 2018, and that supporting documentation will be available to citizens requesting them at the Office of the County Administrator, 575 Administration Drive, Room 104A, Santa Rosa, California on and after January 26, 2018, or through an request to: bos@sonomacounty.org. The governmental entities having appropriation and revenue limits established may include, but are not limited to: the Sonoma County Government; Sonoma County Water Agency; County Service Area #40 (Fire Services), County Service Area #41 (Multi-Services), Community Facilities Districts #4 (Wilmar), #5 (Dry Creek), and #7 (Mayacamas); Bittner Lane Permanent Road District; Monte Rosa Division #1 Permanent Road District; Peaks Pike Permanent Road District and Sonoma County Agricultural and Open Space District. Notice is further given that appropriation limits will be adopted on February 13, 2018, in the Board of Supervisors Chambers, 575 Administration Drive, Room 102A, Santa Rosa, California. In accordance with law, appropriation limits supporting documentation is available for review at the County Administrator s Office, 575 Administration Drive, Room 104, Santa Rosa, California. SHERYL BRATTON Clerk of the Board of Supervisors By:

29 MEMORANDUM OF AGREEMENT REGARDING TRANSFER OF APPROPRIATIONS LIMIT This Memorandwn of Agreement, dated ~1o ~ '-~J~--' 2017, is by and between the North Sonoma Coast Fire Protection District ("District") and the County of Sonoma, a political subdivision of the State of California ("County"). 1. The purpose of the Memorandum of Agreern,ent is to memorialize the transfer of tfiefiscai-year 20 r6=2i-07 appropriations limieintl1_.e amountof $2~250,0oo-frnm-. - the County to the District. 2. Article XIIIB of the Constitution of the State of California establishes limits on the appropriations of tax proceeds by government entities, and California Government Code section establishes the process and sequence for appropriation limit determination for new special districts in California. 3. On December , the County Board of Supervisors approved aproperty Tax Allocation Agreement with the Sea Ranch Volunteer Fire Department, the District's predecessor agency, which was fully executed on January 11, 2016, and expressly included transfer of property tax revenues from the County to the District. 4. On December 9, 2015, in reliance on the approved Property Tax Allocation Agreement, Sonoma County Local Agency Formation Commission ("LAFCO") Resolution 2650 approved the initial formation of the District. 5. On March 2, 2016, pursuant to Government Code section 5681 l(a), LAFCO Resolution 2654 determined that the provisional appropriations limit for the District was $2,250,000 for Fiscal Year The District was establish~d effective April 1, 2016, and has been operating continuously since then, as a duly recognized independent fire protection district in the state of California formed pursuant to the Fire Protection District Law of 1987, California Health and Safety Code section et seq. 7. The Memorandum of Agreement confirms that for Fiscal Yeat , the County Service Area #40 appropriations limit was reduced by $2,250,000 and that $2,250,000 of appropriations limit was transferred to the District as the District's initial provisional appropriations limit.

30 IN WITNESS WHEREOF, the parties hereto have caused this Memorandum Agreement to be executed as of the Effective Date.. NORTH SONOMA COAST FIR ~ PR(rr~ : CTION DISTRICT:? ; ~~~k Mu11er;;/ ri;) l~ -CJI~~ t1 fttt1::;7!~t (J/ (~/ ATTEST: u-a- -1-, '.)... Ry: _LL.::.. x.~.~[_/ 0..<-L!J;l~ '2_. / J / -,- ~ J ;t;c~t,;-v~ v/,..,_,--~ ~-'- CL. ~12. < o f' & 79 AJ> APPROVED AS TO FORM: By: ~ District Counsel COUNTY OF SONOMA:. By: Chair, Board of Supervisors ATTEST: By: _ Clerk of the Board APPROVED AS TO FORM: By: County Counsel I.