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MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ADOPTED ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2022-23
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RECOMMENDATION
This item is an informational item submitting the Measure W Citizens’ Oversight Committee Report for Fiscal Year 2022-23 to the City Council.
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Summary
Stockton’s voters approved Measure W on November 2, 2004, and the City Council subsequently adopted program guidelines to implement the measure. The guidelines require an audit performed by an independent certified public accountant, and the establishment of a citizen’s oversight committee to ensure proper use of the revenues. The Measure W Citizens’ Oversight Committee has the responsibility to determine whether expenditures were made consistent with the program guidelines. Furthermore, the Committee is required to provide an annual report to the City Council.
The attached Measure W Annual Report for Fiscal Year (FY) 2022-23 (Attachment A) is presented to the City Council in compliance with the program guidelines.
DISCUSSION
Background
On August 3, 2004, the City Council adopted a resolution which called for an election to consider enactment of The Stockton Safe Neighborhood Gang and Drug Prevention, Police/Fire Measure, also known as Measure W. The voters approved the measure on November 2, 2004. Measure W enabled the collection of a one-quarter percent sales tax specifically for police and fire services. The ordinance guidelines call for the creation and operation of a citizens’ oversight committee to ensure funds collected would be deposited and expended according to the intent of the measure. After the passage of the measure, the Council adopted guidelines for the functioning of the oversight committee and appointed members to the committee.
Present Situation
The Measure W Citizens’ Oversight Committee met regularly during the past year to review and discuss the Measure W revenues and expenditures, to receive programmatic updates from the Police and Fire Departments, to approve the annual audits by the independent certified public accountant, and to review the Annual Report. The financial information included in the Annual Report is based on the annual audit. City staff presented the FY 2022-23 audited Schedule of Revenues, Expenditures, and Change in Fund Balance to the City’s Audit Committee on March 18, 2024, and the City Council on March 19, 2024, and the Measure W Citizens’ Oversight Committee on May 30, 2024.
A draft FY 2022-23 Annual Report was presented to the Oversight Committee on September 26, 2024. The Oversight Committee approved the Measure W FY 2022-23 Annual Report for presentation to the City Council and the public.
The FY 2022-23 Annual Report (Attachment A) describes the receipt and expenditure of Measure W funds as well as compliance with requirements in the ordinance, policy, and program guidelines. Under the current program guidelines, revenues collected from Measure W sales tax are split between Police (50%) and Fire (50%).
FY 2022-23 tax revenues totaled nearly $16.5 million, a 13% increase over than the prior year.
The Measure W expenditure budget for FY 2022-23 was approximately $12.8 million. Of this total allocation, almost $13.6 million was expended during the year, resulting in an increase to the ending available fund balance. Police and Fire salaries and benefits comprised 87% of the Measure W spending with Measure W covering the cost of 24 sworn positions in the Police Department and 25 firefighters in the Fire Department. Of the remaining expenditures, radio and automotive services accounted for 7%, purchase of fire apparatus and facility improvements were 1%, general liability insurance was 3% and tax collection/ audit expenses were 2%.
The Measure W fund balance as of June 30, 2023, was approximately $12.9 million, which is 84% of the FY 2022-23 budgeted revenue of $15.3 million. This fund balance was more than sufficient to meet the 25% program guideline reserve target. The fund balance is a reserve to ensure that the City can maintain the Measure W-funded police and fire positions during economic fluctuations.
FINANCIAL SUMMARY
There is no financial impact from the presentation of this report.
Attachment A - Measure W Annual Report for FY 2022-23