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REVIEW FISCAL YEAR 2020-21 FIRST QUARTER 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) 2020-21 budget development process, the City Council approved the Strong Communities budget on June 23, 2020. Total budgeted revenues are $9,600,000 from sales tax activity. The FY 2020-21 adopted expenditure budget of $8,429,780 was increased by $255,625 for encumbrances rolled from the prior year and $15,821,891 capital appropriations for total expenditure authority of $24,507,296 as of September 30, 2020.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the First Quarter financial report for FY 2020-21 (Attachment A).
Total revenues received as of September 30, 2020, were $1,110,031 reflecting a total of $1,079,831 in sales tax for transactions and $30,199 from investment proceeds. Actual receipts reflect taxes for sales transactions in the month of July. Also attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarters ended September 30, 2020 (Attachment B). The CDTFA data shows Strong Communities gross revenues of $3,167,758.65 for the quarter covering July, August, and September 2020.
Expenditures during the first quarter of the fiscal year were $1,171,617. Capital Projects, which are budgeted at $15,998,892 report only $52,013 expended through the first quarter of the fiscal year. Capital project appropriations include:
• $10.9 million for the Northeast Stockton Library and Recreation Center
• $2.9 million for Stockton Soccer Complex improvements
• $1.9 million for aquatic facilities
• $474,000 for McNair Soccer Complex upgrades
Total operating expenses of $1,119,604 are 13% of the annual operating budget. Expenses for Library programs are 14% of budget and Recreation Programs are 13% of budget. The COVID-19 pandemic and resulting shelter in place orders continue to impact Community Services operations causing year-to-date expenditures to be lower than anticipated.
Total salaries and benefits expenditures were $631,000 at the end of the first quarter with approximately 34% for Library programs and 66% 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 2020-21 were:
• Library Materials $124,000
• Utilities $144,000
• Facility Maintenance $55,000
• Supplies $140,000
Attachment A - Strong Communities FY 2020-21 Budget Update - First Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report