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MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2013-14
recommended action
RECOMMENDATION
This item is informational only and does not require City Council action.
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Summary
Measure W (“Measure”), which was approved by Stockton voters on November 2, 2004, called for program guidelines which were developed and adopted by the City Council. The program guidelines prescribe two methods of assuring that tax monies collected will be used as specified in the ordinance. The first method is to have an audit performed by an independent public accountant. The second method is to establish a citizen’s oversight committee. The citizen’s committee is charged with the responsibility to review whether expenditures of the funds were made as promised to Stockton residents under the program guidelines. In addition, the Committee is required to provide an annual report to the City Council.
The attached Measure W Annual Report for Fiscal Year (FY) 2013-14 is presented to the City Council in compliance with the program guidelines (Attachment A).
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. The voters approved the Measure on November 2, 2004. The approved Measure has enabled the collection of a one-quarter percent sales tax specifically for purposes described in the Measure and in Ordinance 038-04CS. The ordinance’s guidelines called 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. Since the passage of the Measure, the Council has adopted guidelines to describe the functions and responsibilities of the oversight committee and appointment of members to the committee.
Present Situation
Measure W Citizens’ Oversight Committee, with several new members, has 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 FY 2013-14 Annual Report (“Annual Report”). The release of the audit for the year ended June 30, 2014 provides the financial information included in this Annual Report. The FY 2013-14 audited Schedule of Revenues, Expenditures, and Change in Fund Balance was reported to the City’s Audit Committee on January 12, 2015 and the Measure W Citizens’ Oversight Committee (Committee) on March 3, 2015. The FY 2013-14 Annual Report for Measure W was approved by the Committee on June 10, 2015 as meeting the requirements in the ordinance, policy and program guidelines.
Under the current program guidelines, revenues collected from Measure W sales tax are allocated between Police (50%) and Fire (50%). The City spent an average of 86% of the Measure W expenditures on police and fire salary and benefits during FY 2013-14. This covered the cost of 23 sworn positions in both Police and Fire Departments. In addition, 8% was spent on direct Police and Fire program expenditures such as fleet, fuel charges, and equipment. The expenditures for Police are higher than Fire due to the number of police vehicles used in this program. The remaining 6% was spent on tax collection fees, insurance, incidental materials and services of the Measure W program.
Slow economic improvements through FY 2012-13 have been experienced in the Measure W Fund after absorbing the economic impacts to sales tax from the Great Recession. In FY 2013-14 there was a slight decline (1.4%) experienced in Measure W sales tax revenue primarily from decrease in gasoline consumption due to more fuel efficient vehicles and declining fuel prices.
The Measure W Fund ended FY 2013-14 at $2.99 million in fund balance which meets the program guideline target of 25% of annual budgeted revenues. The fund balance reserve is to provide adequate funds on hand in order to weather future economic fluctuations and uncertainties that can impact staffing and costs funded through the Measure. At this time, there is also sufficient fund balance to provide for radios in need of replacement and a fire engine. These expenditures have been included in the FY 2014-15 adopted budget. Once these one-time investments are made, the fund will still maintain the 25% reserve target.
FINANCIAL SUMMARY
No financial action is required.
Attachment A - Measure W Annual Report for FY 2013-14