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PRESENTATION OF FISCAL YEAR 2024-25 THIRD QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
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Background
On August 3, 2004, the Stockton City Council adopted Resolution 04-0595, that 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 nine months ending March 31, 2025 (Attachment A).
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 March 31, 2025.
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 March 31, 2025, of $9.4 million is 59% of annual estimated revenue reflecting seven months of tax receipts, whereas expenditures totaled $11.7 million, equivalent to 73% of the budget.
In relation to the salary and benefit category, which is the biggest expense, we are in line with the budget for third quarter at 77% for Fire and 73% for the Police department. As of fiscal year-end March 31, 2025, the Police Department expended 72% and the Fire Department expended 74% 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 - Measure W FY 2024-25 Budget Update for the Nine Months Ended March 31, 2025