title
REVIEW FISCAL YEAR 2019-20 FOURTH QUARTER MEASURE M REVENUES AND EXPENDITURES
recommended action
RECOMMENDATION
Information item only.
body
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) 2019-20 budget development process, the City Council approved the Strong Communities budget on June 18, 2019. Total budgeted revenues are $10,817,844 from sales tax activity. The FY 2019-20 adopted expenditure budget of $18,688,693 was increased for encumbrances rolled from the prior year, labor contract increases, and capital appropriations of $5,239,425 for total expenditure authority of $24,583,291 as of June 30, 2020.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the Fourth Quarter financial report for FY 2019-20 (Attachment A).
Total revenues received as of June 30, 2020, were $11,848,004 reflecting a total of $11,363,216 in sales tax for transactions and $484,788 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, 2020 (Attachment B). The CDTFA data shows Strong Communities gross revenues of $3,059,650.69 for the quarter covering April, May, and June 2020.
Expenditures during the fourth quarter of the fiscal year were $2,087,098, which is lower than expected due to facility closures during the COVID-19 pandemic. Shelter in place orders forced Community Services to close its doors to the public and pivot to providing innovative, safe, and essential services to the community.
Total annual operating expenses of $6,271,390 are 74% of the annual operating budget. Total salaries and benefits expenditures were $3,500,026 at the end of the fiscal year with approximately 34% for Library programs and 66% 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 approximate expenses in FY 2019-20 were:
• Library Materials $457,000
• Utilities $427,000
• Collection and Audit Fees $230,000
• Facility Maintenance $198,000
• Supplies $140,000
Capital Projects, which are budgeted at $16,162,026 expended $337,534 through the end of the fiscal year. Capital project appropriations include:
• $10.9 million for the Northeast Stockton Library and Recreation Center
• $2.9 million for Stockton Soccer Complex improvements
• $1.7 million for aquatic facilities
• $488,000 for McNair Soccer Complex upgrades
• $118,000 for Troke Library remodel
Attachment A - Strong Communities FY 2019-20 Budget Update - Fourth Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report