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PRESENTATION OF FISCAL YEAR 2025-26 FIRST AND SECOND QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
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Background
On August 3, 2004, the Stockton City Council adopted Resolution 04-0595, that 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 three months ending September 30, 2025 (Attachment A) and six months ending December 31, 2025 (Attachment B).
The FY 2025-26 expenditure appropriation in the Adopted Budget of $17,793,931 was increased by $365,069 for increases in salary and benefits per Fire and SPMA MOU. Total approved expenditures for FY 2025-26 are $18,159,000 as of December 31, 2025.
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 December 31, 2025 of $5.2 million is 31% of annual estimated revenue reflecting four months of tax receipts, whereas expenditures totaled $7.5 million, equivalent to 41% of the budget.
In relation to the salary and benefit category, which is the biggest expense, both Police and Fire are at about 43%. As of fiscal year-end December 31, 2025, the Police Department expended 40% and the Fire Department expended 42% of the respective budgets.
Measure W expenditure appropriations are sufficient to cover the cost of 31 sworn staff in the Fire Department and 24 sworn staff in the Police Department.
Attachment A - Measure W FY 2025-26 Budget Update for the Three Months Ended 9/30/2025
Attachment B - Measure W FY 2025-26 Budget Update for the Six Months Ended 12/31/2025