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REVIEW FISCAL YEAR 2024-25 FIRST QUARTER STRONG COMMUNITIES (MEASURE M) REVENUES AND EXPENDITURES
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RECOMMENDATION
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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) 2024-25 budget development process, the City Council approved the Strong Communities budget on June 18, 2024. Total budgeted revenues are $14,307,603 from sales tax activity and investment income. The FY 2024-25 adopted expenditure budget of $15,782,356 was increased by $956,179 for encumbrances rolled over from the prior year for total expenditure authority of $ 16,738,535 as of September 30, 2025.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the First Quarter (Attachment A) financial report for FY 2025-26.
As of September 30, 2024, total revenues received from sales tax transactions were $1,203,194, reflecting only one (1) monthly payment for sales transactions occurring in July 2024. Also attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarter that ended September 30, 2024 (Attachment B). The CDTFA data shows Strong Communities’ gross revenues of $3,864,084 for the quarter covering July, August, and September 2024.
Expenditures through the first quarter of the fiscal year were $2,427,682 for operating expenses, 17% of the annual operating budget. Expenses for Library programs were 15% of budget and Recreation Programs were at 19% of budget. Delayed opening of Ursula Meyer Library and Community Center and pools resulted in lower than planned expenditures in the first quarter. Salary savings result from vacancies which are being actively recruited.
Total salaries and benefits expenditures were $1,339,817 at the end of the first quarter with approximately 25% for Library programs and 75% 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 expenses through the first quarter of FY 2024-25 were:
• Library Materials $ 105,700
• Utilities $ 281,040
• Facility Maintenance $179,266
Capital Projects, which are budgeted at $2,500,000 report no expenditures through the first quarter of the fiscal year. Many of the capital projects have multiple funding sources. Project expenses occur throughout the year and are later allocated to the correct funding source. The table below shows all project expenditures as of September 30, 2024, of $ 27,822,929, as well as total funding from Strong Communities tax dollars ($41,914,500) and other funding sources ($38,878,427).
As of September 30, 2024 (FY 2024-25 First Quarter)
Attachment A - Strong Communities FY 2024-25 Budget Update - First Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report