BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Safe, Clean Water and Natural Flood Protection Special Tax Summary Report and Resolution Providing for Levy of the Special Tax Rates and Authorizing a Procedure for Correcting Special Tax Amounts for Fiscal Year 2018-2019.
End
RECOMMENDATION:
Recommendation
A. Accept the Fiscal Year 2018-19 Safe, Clean Water and Natural Flood Protection Special Tax Summary Report; and
B. Adopt the Resolution PROVIDING FOR LEVY OF THE SPECIAL TAX PURSUANT TO THE SAFE, CLEAN WATER AND NATURAL FLOOD PROTECTION MEASURE IN THE COMBINED FLOOD CONTROL ZONE OF THE SANTA CLARA VALLEY WATER DISTRICT AND AUTHORIZING A PROCEDURE FOR CORRECTING SPECIAL TAX AMOUNTS FOR FISCAL YEAR 2018-2019.
Body
SUMMARY:
Provisions of Resolution 12-62 (Providing for the continuation and levy of special tax to pay the cost of a Safe, Clean Water and Natural Flood Protection Program in the combined flood control zone of the Santa Clara Valley Water District subject, nevertheless, to specified limits and conditions) require the District's Chief Executive Officer to prepare a written report recommending rates for the Safe, Clean Water and Natural Flood Protection Special Tax, which was approved by voters on November 6, 2012. Rate limits as specified in the Safe, Clean Water ballot measure are indexed to the Fiscal Year (FY) 2017-18 rates plus the change in the Bay Area Consumer Price Index (CPI) or 3 percent, whichever is greater.
Based on projected costs of the Safe, Clean Water Program activities and reports released by the Bureau of Labor Statistics indicating that the change in CPI from February 2017 to February 2018 is 3.56 percent, staff recommends that the special tax rates for fiscal year 2018-19 be set at their maximum level which would reflect a 3.56 percent increase. Current projections show there will be a funding deficit at program-end that is primarily due to the increased capital costs of the program. Staff believes the recommendation is fiscally...
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