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MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2014-15
recommended action
RECOMMENDATION
This item is informational only and does not require City Council action.
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Summary
Measure W (“Measure”), was approved by Stockton voters on November 2, 2004 as a special tax, and 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 are used as specified in the ordinance. The first method is to have an audit of Measure W special tax proceeds performed by an independent public accountant. The second method was to establish a Citizens’ Oversight Committee. The Citizens’ Oversight Committee is charged with the responsibility of reviewing fund expenditures for the purposes of determining whether the funds were spent in accordance with the requirements of Measure W. In addition, the Citizen’s Oversight Committee is required to provide an annual report to the City Council.
The attached Measure W Annual Report for Fiscal Year (FY) 2014-15 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 (“Measure W”). The voters approved Measure W on November 2, 2004. The approved Measure 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. With the passage of Measure W the Council adopted Program Guidelines to describe the functions and responsibilities of the Citizen’s Oversight Committee and appointment of members to the Committee.
Present Situation
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 provide input for the FY 2014-15 Annual Report (“Annual Report”). The release of the audit for the year ended June 30, 2015 provides the financial information included in this Annual Report. The FY 2014-15 audited Schedule of Revenues, Expenditures, and Change in Fund Balance was reported to the City’s Audit Committee on March 14, 2016 and the Measure W Citizens’ Oversight Committee (Committee) on June 2, 2015. The FY 2014-15 Annual Report for Measure W approved by the Committee fulfills the requirements of the ordinance and associated policy and program guidelines.
Under the current program guidelines, revenues collected from the Measure W sales tax are allocated between Police (50%) and Fire (50%). Currently, that funding is sufficient to cover 50 safety positions divided evenly between the Police and Fire Departments. The revenue provided by this special sales tax is not yet sufficient to cover additional public safety positions although it is continually monitored for such opportunities.
Measure W provides funding for additional public safety positions and related operational costs. Salary and benefits for Police and Fire account for approximately 85% of all Measure W expenditures in FY 2014-15. In addition, 7% 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 8% was spent on tax collection fees, insurance, incidental materials and services of the Measure W program.
The available fund balance provides for economic uncertainty and ended the year at 32% of annual revenues. The reserve provides funds 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 the purchase of a fire engine. These expenditures have been included in the FY 2015-16 adopted budget. Once these one-time investments are made, the fund will continue to maintain the 25% reserve target as recommended in the program guidelines.
FINANCIAL SUMMARY
No financial action is required.
Attachment A - Measure W Annual Report for FY 2014-15