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REVIEW AND DISCUSS MEASURE W PROPOSED BUDGET FOR FISCAL YEAR 2020-21
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RECOMMENDATION
Presented to the Measure W Oversight Committee for review and discussion is the Proposed Budget for Fiscal Year (FY) 2020-21 for the use of Measure W proceeds.
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Background
Per the Measure W Program Guidelines:
“Each May or June, as the City’s budget is adopted following public hearings, the City Manager will recertify the plan to the City Council, stating what monies have been received, what monies have been spent and what monies are available.”
Present Situation
The City Manager released the FY 2020-21 Proposed Annual Budget to City Council and the public on May 15, 2020, and study sessions to review the budget will be held on June 10 and 11, 2020. Attachment A includes all Measure W related pages from the FY 2020-21 Proposed Annual Budget, which presents projected FY 2019-20 revenues and expenditures and the proposed FY 2020-21 revenue and expenditure budget. The FY 2020-21 Measure W revenue estimate is $9.6 million, a decrease of approximately 6% (or $615,000) from current year projections due to the recessionary impact of the COVID-19 pandemic. Current year revenues are also projected to be down over $600,000 from the original FY 2019-20 Budget estimates.
The Measure W expenditure appropriation is $5.6 million for the Police Department and $5.7 million for the Fire Department. In FY 2020-21, Measure W will fund 25 firefighters and 24 police officers, which is the same as in FY 2019-20. The 24 police officers supported by Measure W are assigned to the Field Operations Division for street patrol.
The Fire Department uses the funds primarily to pay for a portion of Fire Suppression personnel salary and benefits assigned to Fire Company No. 3 in southeast Stockton, Fire Company No. 4 in central Stockton, and Fire Company No. 13 in northeast Stockton. The FY 2020-21 Proposed Budget also uses Measure W funds for annual new diver training and for the purchase of Hazardous Materials Command ID equipment to identify unknown chemicals and substances accurately and safely during emergency incidents.
The FY 2020-21 Proposed Budget does not include labor-related increases for the firefighter and police officer bargaining units as they were out of contract on May 15, 2020. The City Council subsequently approved a successor agreement with SPOA on May 19, 2020, which provides a 4% cost-of-living adjustment and a 1% market adjustment effective June 1, 2020, along with other compensation increases. The Measure W budget will be increased to fund salary and benefit costs authorized in the successor agreement. The Proposed Budget will be updated to reflect the additional expenses upon adoption. Results of firefighter negotiations will be added when determined and finalized.
The program guidelines recommend an Economic Uncertainty Fund equal to 25% of annual budgeted revenues, which would equal $2.4 million in FY 2020-21. The total projected ending fund balance of around $2.1 million will fall short of the recommended level by approximately $300,000.
Additional Measure W information is available in the attached FY 2020-21 Proposed Annual Budget pages.
Attachment A - Measure W FY 2020-21 Proposed Budget