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REVIEW FISCAL YEAR 2025-26 FIRST AND SECOND QUARTER STRONG COMMUNITIES REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
City ordinance 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 (2016-06-07-1212).
Background
On August 21, 2017, the City Council approved an expenditure plan with revenue and expenditure projections for the 16-year lifespan of the Measure (Resolution 2017-08-21-0801). 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) 2025-26 budget development process, the City Council approved the Strong Communities budget on June 24, 2025. Total budgeted revenues are $16,365,000 from sales tax activity and investment income. The FY 2025-26 adopted expenditure budget of $13,260,630 was increased by $657,567 for encumbrances and $683,919 for continuation of identified programs from the prior year for a total expenditure authority of $14,602,116 as of December 31, 2025.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the First Quarter (Attachment A) and Second Quarter (Attachment B) financial report for FY2025-26.
Total revenues received from sales tax transactions as of September 30, 2025, were $1,290,125. As of December 31, 2025, total revenues from sales tax transaction received were $5,217,092. Also attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarters that ended September 30, 2025 and December 31, 2025 (Attachment C). The CDTFA data shows Strong Communities’ gross revenues of $3,881,984 for the quarter covering July, August, and September 2025 and $4,244,431 for the quarter covering October, November, and December 2025.
Expenditures through the First quarter of the fiscal year were $2,919,989. As of December 31, 2025 total expenditures were $5,410,779. Total operating expenditures at the end of the Second quarter, 37% of the annual operating budget. Expenses for Library programs were 37% of budget and Recreation Programs were at 38% 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 $1,664,911 at the end of the First quarter. As of December 31, 2025, toal salaries and benenfits expenditures were $3,076,865 with approximately 27% for Library programs and 73% 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 Second quarter of FY 2025-26 were:
• Library Materials $ 339,874
• Utilities $ 431,091
• Facility Maintenance $ 357,266
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 December 31, 2025, of $61,361,590, as well as total funding from Strong Communities tax dollars ($55,184,023) and other funding sources ($39,497,427).
As of December 31, 2025 (FY 2025-26 Second Quarter)
Attachment A - Strong Communities FY 2025-26 Budget Update - First Quarter
Attachment B - Strong Communities FY 2025-26 Budget Update - Second Quarter
Attachment C - Measure M Revenues CDTFA Quarterly Distribution Report