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REVIEW AND DISCUSS MEASURE A PROPOSED EXPENDITURE PLAN FOR FISCAL YEAR 2025-26
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RECOMMENDATION
Review and discuss Measure A Proposed Expenditure Plan for Fiscal Year 2025-26
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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. On July 3, 2024, Stockton City Council approved Measure A Expenditure Guidelines.
Background
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.
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.
Purpose
The purpose of this expenditure plan is to address findings from the Moss Adams audit by establishing guidelines that help City staff and the public understand, direct, and track eligible expenditures. 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 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.
As part of the annual budget process, the City developed an expenditure plan for Measure A funds for the upcoming fiscal year based on the spending priorities identified in the approved guidelines. The plan is to be presented to the Measure A Citizens’ Advisory Committee, followed by a presentation to City Council for approval. Any revisions to the spending plan will be presented to the Measure A Citizens’ Advisory Committee at regularly scheduled meetings. City Council will be presented with spending plan updates and/or revisions as part of the quarterly budget updates that are currently provided to Council. Attachment B displays the Measure A Expenditure Plan for FY 2025-26.
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 2025-26 Proposed Budget