title
PRESENTATION OF FISCAL YEAR 2022-23 THIRD AND FOURTH QUARTER MEASURE W REVENUES AND EXPENDITURES
recommended action
RECOMMENDATION
Information item only.
body
Background
On August 3, 2004, the Stockton City Council approved Resolution 04-0595, that authorized a special transaction and use tax for public safety services 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 nine months ended March 31, 2023 (Attachment A) and 12 months ended June 30, 2023 (Attachment B). The June 30, 2023 actual amounts are unaudited and are subject to change during the year-end audit process.
The FY 2022-23 expenditure appropriation in the Adopted Budget of $12,845,623 was increased by $1,041,613 for labor contract increases approved by the City Council after adoption of the budget and $138,574 for encumbrances rolled from the prior year to cover items ordered that had not been received prior to close of that year. Total approved expenditures for FY 2022-23 are $14,025,810 as of as of March 31, 2023.
The total expenditures for the twelve months ended June 30, 2023 in the approved budget of $14,025,810 was increased by $68,727 to meet the 10% local fund match requirement of the FEMA 2021 Assistance to Fire Fighters Grant and $121,581 appropriated for the purchase of self-contained breathing apparatus approved by the City Council. Total approved expenditures for FY 2022-23 are $14,216,119 as of June 30, 2023.
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. Revenue received as of March 31, 2023, of $10.2 million is 73% of annual estimated revenue reflecting seven months of tax receipts, whereas expenditures totaled $10.0 million, the equivalent to 71% of the budget. Tax revenue received as of June 30, 2023, of $16.6 million is 118% of annual estimated revenue reflecting twelve months of tax receipts, whereas expenditures totaled $13.6 million, the equivalent to 95% of the budget.
Growth in building and construction, business and industry, and general consumer goods resulted in actual tax revenues coming in higher than budget. Tax revenues, including corrections for misallocations, increased 11.8% compared to FY 2021-22.
Measure W expenditure appropriations are sufficient to cover the cost of 25 sworn staff in the Fire Department and 24 sworn staff in the Police Department. Within nine months of the fiscal year, the Police Department expended 72% and the Fire Department expended 71% of their respective budgets. At the end of the fiscal year, the Police Department expended 98% and the Fire Department expended 93% of their respective budgets. Approximately $190,000 of the unspent funds in the Fire Equipment and Maintenance category are earmarked for the purchase of 20 self-contained breathing apparatus systems and associated grant match.
Attachment A - Measure W FY 2022-23 Budget Update for the Nine Months Ended March 31, 2023
Attachment B - Measure W FY 2022-23 Budget Update for the Twelve Months Ended June 30, 2023