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PRESENTATION OF FISCAL YEAR 2024-25 FIRST AND SECOND QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
Informational item only.
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Background
On August 3, 2004, the Stockton City Council adopted Resolution 04-0595, which authorized a special transaction and use tax for public safety services to be put before voters. In November of that year, voters approved Measure W, Stockton Safe Neighborhood Gang and Drug Prevention Police/Fire Response Initiative and the City established an ordinance and guidelines. The guidelines for the initiative stipulated an independent citizen oversight committee be created, meet at least annually to review revenues and expenditures, and verify spending complies with the ordinance. City Council later adopted Council Policy 3.04.060, which directs the City staff to submit quarterly financial reports for the Committee to review.
Present Situation
In compliance with Council Policy 3.04.060, attached for review by the Measure W Independent Citizen’s Oversight Committee is a financial report for the three months ending September 30, 2024 (Attachment A) and six months ending December 31, 2024 (Attachment B).
The FY 2024-25 expenditure appropriation in the Adopted Budget of $15,961,287 was increased by $151,098 for encumbrances rolled from the prior year to cover equipment, supplies, and services ordered that had not been received prior to close of the previous fiscal year. Total approved expenditures for FY 2024-25 are $16,112,385 as of December 31, 2024.
During the year, tax revenue is recorded when it is physically received from the California Department of Tax and Fee Administration and typically follows the month earned by 60 to 90 days, whereas most expenses are incurred evenly throughout the year and are recorded when paid. The sales tax revenues generated in May and June, while received in July and August, are credited back to the previous fiscal year. Revenue received as of December 31, 2024, of $5.1 million is 32% of annual estimated revenue reflecting four months of tax receipts, whereas expenditures totaled $7.6 million, equivalent to 47% of the budget.
In relation to the salary and benefit category, which is the biggest expense, we are in line with the budget for second quarter at around 50% for both Fire and Police departments. As of fiscal year-end December 31, 2024, the Police Department expended 46% and the Fire Department expended 48% of the respective budgets.
Measure W expenditure appropriations are sufficient to cover the cost of 27 sworn staff in the Fire Department and 24 sworn staff in the Police Department.
Attachment A - FY24-25 1st Quarter Budget Update
Attachment B - FY24-25 2nd Quarter Budget Update