title
REVIEW AND DISCUSS MEASURE A EXPENDITURE GUIDELINES
recommended action
RECOMMENDATION
Review and discuss expenditure guidelines and performance measures for Measure A.
body
Summary
Introduction
On December 5, 2023, the Stockton City Council adopted an ordinance to extend Measure A, a three-quarter percent transactions and use (sales) tax through March 31, 2034. The measure was originally approved by voters on November 5, 2013, and became effective April 1, 2014.
Background
A performance audit performed by the City’s internal auditor, Moss Adams, noted the following:
While expenditure processes appear to comply with Measure A provisions, the City does not have updated expenditure guidelines to define allowable expenditures, proactively plan for future use of the funds, or support tracking of expenditures. This contributes to limited visibility into the impact of the Measure among the public and creates a lack of clarity among City staff for what constitutes allowable use of the funds.
The Measure A citizens advisory committee receives regular reports from City staff on Measure B eligible expenditures, including annual economic recovery reports, quarterly financial reports, annual reports on the 65/35% usage, and quarterly statistics concerning progress on crime reduction and staff retention.
Purpose
The purpose of this document is to address the above finding from Moss Adams, and construct expenditure guidelines that can be used to understand, direct, and track eligible costs.
According to Section 21 of the Ordinance (2013-07-09-1601), 100% of the proceeds of Measure A may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. The guidelines set forth below do not have the legal authority or the intent to restrict or legislate the use of these general purpose tax revenues. Instead, this document is designed to increase visibility and transparency, and demonstrate the intent regarding the use of Measure A funds.
Benefits of Establishing Expenditure Guidelines
Several benefits will be achieved by establishing clear Measure B guidelines:
• Specific guidance to prescribe and encourage eligible costs to incur against Measure B.
• Specific contingencies for use of Measure B when savings occur in high priority areas.
• Outlining the Marshall plan into specific items that can be adjusted to respond to changes in the City’s demand for services.
These guidelines are meant to replace the aging Marshall Plan with a list of items categorized into goals that can be adjusted annually to respond to a changing fiscal environment.
Attached are the Measure A/B Expenditure Guidelines and this year’s proposed expenditure plan.
Attachment A: Measure A/B Expenditure Guidelines
Attachment B: Attachment to Measure A/B Guidelines, Expenditure Plan - FY 2024-25 Proposed Budget