title
REVIEW FISCAL YEAR 2025-26 FOURTH QUARTER STRONG COMMUNITIES REVENUES AND EXPENDITURES
recommended action
RECOMMENDATION
Informational item only.
body
Summary
City ordinance established a citizen advisory committee to review Measure M (Strong Communities) expenditures and confirm they are made in accordance with the Measure as approved by voters (2016-06-07-1212).
Background
On August 21, 2017, the City Council approved an expenditure plan with revenue and expenditure projections for the Measure's 16-year lifespan (Resolution 2017-08-21-0801). Restoring library and recreation services is a key element of the expenditure plan and includes increasing library and community center hours evenings and weekends.
As part of the City’s Fiscal Year (FY) 2025-26 budget development process, the City Council approved the Strong Communities budget on June 24, 2025. Total budgeted revenues are $16,365,000 from sales tax activity and investment income. The FY 2025-26 adopted expenditure budget of $13,260,630 increased by $657,567 for encumbrances, $683,919 for continuation of identified programs from the prior year, $653,572 for mid-year appropriation requests, and reduced by $10,363 for capital appropriations, for a total expenditure authority of $15,245,325 as of June 30, 2026.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the Fourth Quarter (Attachment A) financial report for FY2025-26.
As of June 30, 2026, total revenues from sales tax transactions received were $16,326,013. Also attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarter that ended June 30, 2026 (Attachment B). The CDTFA data shows Strong Communities’ gross revenues of $4,287,415 for the quarter covering April, May, and June 2026.
Expenditures through the Fourth quarter of the fiscal year totaled $12,452,773, or 82% of the operating budget. The delayed opening of the Ursula Meyer Library and Community Center and City pools during the first quarter resulted in lower than planned expenditures. Salary savings from vacancies also account for lower than projected expenses.
Total salaries and benefits expenditures were $6,837,107, with approximately 27% attributed to library programming and 73% for recreation programs. Other major expense categories and expenses through the Fourth quarter of FY 2025-26 were:
• Library Materials $ 719,690
• Utilities $ 791,971
• Facility Maintenance $ 977,183
Several capital projects in progress receive Strong Communities (Measure M) funding. The table below shows all project expenditures, which include Measure M funding, as of June 30, 2026.
Attachment A - Strong Communities FY 2025-26 Budget Update - Fourth Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report