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PRESENTATION OF FISCAL YEAR 2023-24 FOURTH 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 twelve months ending June 30, 2024 (Attachment A).
The FY 2023-24 expenditure appropriation in the Adopted Budget of $15,507,904 was increased by $236,221 for encumbrances rolled from the prior year to cover equipment, supplies, and services ordered that had not been received prior to close of that year. Total approved expenditures for FY 2023-24 are $15,744,125 as of June 30, 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 June 30, 2024, of $15.6 million is 102% of annual estimated revenue reflecting twelve months of tax receipts, whereas expenditures totaled $15.5 million, the equivalent to 98% of the budget.
As of fiscal year-end June 30, 2024, the Police Department expended 104% and the Fire Department expended 93% of the respective budgets. The Police department overspent the salary and benefits budget. This is driven by increased overtime and unexpected costs related to workers’ compensation. Although departments do their best to stay within budget, sometimes unexpected needs arise. In this case the Measure W fund balance is sufficient to cover these budget overages.
All other categories for the Police and Fire Department were within the budget.
Measure W expenditure appropriations are sufficient to cover the cost of 27 sworn staff in the Fire Department and 25 sworn staff in the Police Department
Attachment A – FY23-24 4th Quarter Budget Update