title
REVIEW FISCAL YEAR 2024-25 SECOND AND THIRD QUARTER MEASURES A AND B REVENUES AND EXPENDITURES
recommended action
RECOMMENDATION
Information item only.
body
Summary
City Ordinance 2013-07-09-1601, Section 19-Citizen Oversight stipulates the Measure A Citizens’ Advisory Committee: “Shall meet at least annually to review the expenditure of revenues generated by the tax imposed by this Ordinance and make recommendations to the City Council regarding those expenditures.”
Section 7 of the Committee’s bylaws (Informational Materials) also states: “At least quarterly, financial reports including proposed Budgets and Actuals with detailed supporting schedules will be sent to each Committee member. The reports will show revenue generated by Measure A, detailed line-item expenditures as presented in the annual budget relative to Measure B (public safety), and all other uses of remaining Measure A funds and State Board of Equalization reports.”
Attached for review by the Measure A Citizens’ Advisory Committee is the Second, and Third quarter financial reports for Fiscal Year (FY) 2024-25.
The FY 2024-25 Amended Budget, as shown on Attachment A and B, includes encumbrance rollovers from FY 2023-24 and Council approved budget amendments. Measure A funded Police Department and Office of Violence Prevention (OVP) expenditures in the Amended Budget totaled approximately $38.7 million.
Budgeted revenues are $47.1 million. Measure A transaction and use tax revenues received as of March 31, 2025 totaled $27,671,417, reflecting nine (9) monthly payments for sales transactions occurring between July 2024 and March 2025. Also attached is the California Department of Tax and Fee Administration Sales Tax Revenues Report that indicates gross receipts of $11,516,768, $12,720,639, and $10,870,324 for the quarters ended September 30, 2024, December 31, 2024, and March 31, 2025 respectively (Attachment C), for a total of $35,107,731. The variance is due to lag time in receiving the remittances from the State. Full gross amounts for the year will post at the close of the fiscal year.
Expenditures through the third quarter totaled $32.1 million, or 83% of the Amended Budget. The Police Department expended approximately $31 million, and the Office of Violence Prevention expended $1.01 million through the third quarter of the fiscal year. Quarterly expenditures include $142,380 in annual tax collection and audit recovery expenses payable to CDTFA related to Measure A revenues.
At the third quarter, 75% is the target budget utilization. Combined salary and benefit costs for Police sworn and non-sworn positions were at 87% of the budget, including the budgeted vacancy savings. Most Police Department expenditure categories were under 75% of the budget in the third quarter. Other supplies utilize 42% of the budget indicating possible expenses at the end of the year.
Office of Violence Prevention expenditures through the third quarter totaled $1.01 million, which represents 62% of its Measure A-funded budget. Salary and benefit expenditures are 65% of the budget.
Measure A expenditures exceed revenues in the first quarter of fiscal year 2024-25, resulting in a $4.5 million cash flow gap. Any shortfall will be addressed using General Fund reserves at the end of the year. Consistent with the Adopted Budget, revenues are projected to meet expenses by year-end.
Attachment A - Measure A and B FY 2024-25 2nd Quarter Report
Attachment B - Measure A and B FY 2024-25 3rd Quarter Report
Attachment C - Measure A CFDTA Quarterly Revenue Report