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  Consent-General Government   #   12.    
Board of Supervisors Financial Services  
Meeting Date: 01/12/2021  
Brief Title:    Adopt Accumulated Capital Outlay (ACO) Policy
From: Chad Rinde, Chief Financial Officer, Department of Financial Services
Staff Contact: Chad Rinde, Chief Financial Officer, Department of Financial Services, x8050

Subject
Adopt Policy for the Accumulated Capital Outlay Fund. (No general fund impact) (Rinde)
Recommended Action
Adopt policy for the Accumulated Capital Outlay Fund.
Strategic Plan Goal(s)
In Support of All Goals (Internal Departments Only)
Reason for Recommended Action/Background
Prior to Proposition 13 (1978), Cities and Counties were allowed to establish an Accumulated Capital Outlay Fund (ACO) by Government Code 53731 et. seq. The ACO fund would then levy a property tax rate in order to garner resources necessary for capital improvement purposes. Subsequent to Proposition 13, the ACO continues to receive a share of the property taxes pursuant to AB8 which established the formula and process for the distribution of Property Taxes. 

As the County adopted a resolution to create an ACO fund in the 1960's, since that time, periodically there have been differing interpretations of both the legal and policy limitations to the use of the ACO fund. For example in fiscal year 2010-11, it was determined that vehicles should not be funded through the ACO funding as they are a recurring and ordinary expenditure that requires replacement every few years. 

As a result, in concert with the County Administrator's Office and the Capital Improvement Committee, it was determined appropriate to develop a policy for the expenditure of resources from the ACO fund in order to ensure legal requirements are met as well as to factor in applicable policy considerations. The Policy draft (Attachment A) is requested to be adopted by the Board of Supervisors and is formalizing past practices regarding the use of the ACO Fund.
Collaborations (including Board advisory groups and external partner agencies)
The Department of Financial Services has collaborated with the County Administrator's Office and has collaborated with the Capital Improvement Committee (CIC) on the policy.
Competitive Bid Process
Not applicable.

Fiscal Information
No Fiscal Impact
Fiscal Impact of this Expenditure
Total cost of recommended action
Amount budgeted for expenditure
Additional expenditure authority needed $0
On-going commitment (annual cost)
Source of Funds for this Expenditure
General Fund $0
Attachments
Att. A. ACO Policy

Form Review
Inbox Reviewed By Date
Chad Rinde Chad Rinde 01/04/2021 10:04 AM
Mindi Nunes Mindi Nunes 01/05/2021 10:40 AM
Financial Services (Originator) mqader 01/05/2021 01:18 PM
County Counsel Phil Pogledich 01/06/2021 09:04 AM
Chad Rinde Chad Rinde 01/06/2021 10:00 AM
Form Started By: Chad Rinde Started On: 12/28/2020 10:27 PM
Final Approval Date: 01/06/2021
Level double AA conformance,
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