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REVIEW AND DISCUSS MEASURE W PROPOSED BUDGET FOR FISCAL YEAR 2024-25
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RECOMMENDATION
Presented to the Measure W Oversight Committee for review and discussion is the Proposed Budget for Fiscal Year (FY) 2024-25 for the use of Measure W proceeds.
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Background
Per the Measure W Program Guidelines:
“Each May or June, as the City’s budget is adopted following public hearings, the City Manager will recertify the plan to the City Council, stating what monies have been received, what monies have been spent and what monies are available.”
Present Situation
The City Manager released the FY 2024-25 Proposed Annual Budget to City Council and the public on May 15, 2024, and study sessions to review the budget will be held on June 5 and 6, 2024. Attachment A includes all Measure W related pages from the FY 2024-25 Proposed Annual Budget, which presents projected FY 2023-24 revenues and expenditures and the proposed FY 2024-25 revenue and expenditure budget. The FY 2024-25 Measure W revenue estimate is $16.0 million, an increase of 4.7% (or $725,000) from current year projections. Current year revenues are also projected to be up compared to the original FY 2023-24 Budget estimates by approximately $8,000. Sales tax revenues are projected to continue to flatten as consumer behavior shifts to opting for essential household items over more expensive purchases. Attachment B includes some statewide sales tax trend information from the City’s sales tax consultants.
The Measure W expenditure appropriation is $7.9 million for the Police Department and $8.0 million for the Fire Department. In FY 2024-25, Measure W will fund 27 firefighters and 24 police officers,. The 24 police officers supported by Measure W are assigned to the Field Operations Division for street patrol.
The Police Department uses the funds primarily to pay for 24 Police officers’ salaries, benefits, and equipment. The Police Officer positions are assigned to the Field Operations Division for street patrol.
The Fire Department uses the funds primarily to pay for a portion of Fire Suppression personnel salary and benefits assigned to Fire Company No. 3 in southeast Stockton, Fire Company No. 4 in central Stockton, and Fire Company No. 13 in northeast Stockton.
In FY 2024-25, the Measure W budget includes one-time allocations for equipment that has reached end-of-life: (1) replacement of data routers on all fire apparatus, and (2) replacement of 120 wildland fire shelters.
The program guidelines recommend an Economic Uncertainty Fund equal to 25% of annual budgeted revenues, which would equal $4.0 million in FY 2024-25. The total projected ending fund balance of $13.1 million is sufficient to fund the recommended reserve. The Police and Fire Departments continue to seek ways to leverage Measure W funds with grant funding to enhance public safety services. The reserve is also intended to provide stability and support for the Measure W funded staff positions when salary and benefit costs outpace revenue growth.
Additional Measure W information is available in the attached FY 2024-25 Proposed Annual Budget pages.
Attachment A - Measure W FY 2024-25 Proposed Budget
Attachment B - HdL Companies California Sales Tax Forecast