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REVIEW FISCAL YEAR 2023-24 FOURTH QUARTER STRONG COMMUNITIES (MEASURE M) REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
City ordinance (2016-06-07-1212) established a citizen advisory committee to review the expenditure of Measure M (Strong Communities) revenues to confirm they are made in accordance with the Measure as approved by the voters.
Background
On August 21, 2017, the City Council approved (Resolution 2017-08-21-0801) an expenditure plan with revenue and expenditure projections for the 16-year lifespan of the measure. Restoration of library and recreation services is a key element of the expenditure plan that includes increasing library and community center hours evenings and weekends.
As part of the City’s Fiscal Year (FY) 2023-24 budget development process, the City Council approved the Strong Communities budget on June 20, 2023. Total budgeted revenues are $15,039,465 from sales tax activity and investment income. The FY 2023-24 adopted expenditure budget of $25,754,476 was increased by $1,211,915 for encumbrances rolled over from the prior year, $162,857 for increase in labor contracts, $87,000 for aquatics operations and $12,123,911 in capital appropriations for total expenditure authority of $39,253,162 as of June 30, 2024.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the Fourth Quarter (Attachment A) financial report for FY 2023-24.
As of June 30, 2024, total revenues received were $16,209,338 of which $15,406,039 is from sales tax transactions and $803,299 from investment proceeds. Also, attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarter ended June 30, 2024 (Attachment B). The CDTFA data shows Strong CommunitiesCommunities’ gross revenues of $3,888,300 for the quarter covering April, May, and June 2024.
Expenditures through the fourth quarter of the fiscal year were $9,356,658 for operating expenses, 74% of the annual operating budget. Expenses for Library programs were 67% of budget and Recreation Programs were at 71% of budget. A Oneone-time purchase, which includes funding for the bookmobile, did not occur by the end of the fourth quarter, however,but it was encumbered. Delayed opening of Ursula Meyer Library and Community Center and pools resulted in lower than planned expenditures in the fourth quarter. Salary savings result from vacancies filled late in the fiscal year and staff turnover.
Total salaries and benefits expenditures were $4,642,770 at the end of the fourth quarter with approximately 30% for Library programs and 70% for Recreation programs. Staffing expenses reflect the filling of approved full-time positions and part-time positions required to implement the restoration of hours of service which began in July 2018.
Other major expense categories and expenses through the fourth quarter of FY 2023-24 were:
• Library Materials $ 651,392
• Utilities $ 667,353
• Facility Maintenance $688,154
Capital Projects, which are budgeted at $26,664,911 report $587,986 expended through the fourth quarter of the fiscal year. Many of the capital projects have multiple funding sources. Project expenses occur throughout the year and are later allocated to the correct funding source. The table below shows all project expenditures as of June 30, 2024, of $25,744,975, as well as total funding from Strong Communities tax dollars ($39,414,500) and other funding sources ($40,875,000).
As of June 30, 2024 (FY 2023-24 Fourth Quarter)
Attachment A - Strong Communities FY 2023-24 Budget Update - Fourth Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report