California Constitution Article XIIIB limits the level of most appropriations from tax sources that most local government entities are permitted in any given year.  The limit for each year is equal to the limit for the prior year, adjusted for changes in the cost-of-living and population.  Article XIIIB also requires local governments to return to taxpayers any tax revenues in excess of the amount that can be appropriated in any given fiscal year.  While the portion of the Community Facilities Districts (CFD’s) that addresses bond indebtedness is exempt from the State appropriations limit, those Districts that have a service component are required  to have an appropriation limit placed on the Districts’ service appropriations.  Base appropriation limits for the CFD’s are established in the Districts’ original formation documents and recalculated annually on population and per capita income changes.  The law impacts CFD No. 1, CFD No. 5, and CFD No. 6.

Each year (by May 1), the State Department of Finance is required to transmit an estimate of the percentage change in population of local governments (Revenue and Taxation Code, Section 2227).  The annual appropriation limit is allowed to increase by the jurisdiction’s population growth percentage and the statewide growth in personal income.

• The State Department of Finance revised the January 1, 2018 City of Rocklin population to 66,711 from 66,830.  This revision decreased the percentage change in population for the 2018-19 appropriation limits to 3.45% from the original estimate of 3.63%.

• The 2018-19 appropriation limits for each of the Special Tax Districts are amended due to the population estimate revision as follows:

CFD #1             $  7,971,751

CFD #5             $48,324,068

CFD #6             $  5,975,196

• The estimated actual appropriation for fiscal year 2018-19 for all Special Tax Districts will not exceed the 2018-19 amended appropriation limit.
  • Estimated actual appropriation for CFD#1 is $1,650,000
  • Estimated actual appropriation for CFD#5 is $4,343,000
  • Estimated actual appropriate for CFD#6 is $300,000
• The State Department of Finance estimated a statewide increase in personal income for 2019-20 at 3.85%.
• The State Department of Finance estimated the City of Rocklin January 1, 2019 population at 69,249 resulting in a 3.80% increase.
• The 2019-20 appropriation limits for each of the Special Tax Districts are established as follows:

CFD #1             $  8,593,547

CFD #5             $52,093,345

CFD #6             $  6,441,261