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PRESENTATION OF FISCAL YEAR 2016-17 FIRST AND SECOND QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
The Measure W Fiscal Year (FY) 2016-17 First and Second Quarter Budget Update is attached for review.
Background
On August 3, 2004, the Stockton City Council approved Resolution 04-0595 that authorized a special transaction and use tax for public safety services be put before voters. The resolution documents included program guidelines for the initiative that stipulated an independent citizen oversight committee be established and “meet at least annually to review revenues and expenditures” in order to verify spending would comply with the ordinance.
In November 2004, voters approved Measure W, Stockton Safe Neighborhood Gang, and Drug Prevention Police/Fire Response Initiative, and the City implemented both the ordinance and the guidelines. Additionally, the City Council later adopted Council Policy 500-2, which directs the City staff to submit quarterly financial reports to the Committee for its review.
Attached for review by the Measure W Independent Citizen’s Oversight Committee are quarterly financial reports for the three months ended September 30, 2016, and the six months ended December 31, 2016.
Present Situation
The attached financial report is for the first two quarters of FY 2016-17 and complies with Council Policy 500-2.
The FY 2016-17 Adopted Budget was increased for the costs of labor agreement provisions approved after July 1, 2016, and for encumbrances rolled from FY 2015-16 to the current year for items ordered that had not been received prior to the end of that fiscal year. Total approved expenditures for FY 2016-17 are $10.7 million.
Tax revenue is recorded when received from the State Board of Equalization, and typically follows the month earned by 60 to 90 days. Revenue received was $0.6 million as of September 30, 2016, and $2.2 million as of December 30, 2016, which reflect one and three months’ tax revenue received, respectively.
The Police Department had spent 26% of its Measure W budget as of September 30, 2016, and 49% as of December 31, 2016. The Fire Department spent 29% of its budget as of September 30, 2016, including the final payment for a fire engine delivered during that period. As of December 31, 2016, the Fire Department spent 49% of its budget.
Over 90% of Measure W expenses are for employee compensation and equipment rent and are therefore incurred evenly throughout the year. In FY 2016-17, Measure W expenditure appropriations are sufficient to cover the cost of 25 sworn staff in each the Police and Fire Departments. At this time, no significant events are known that would affect the sufficiency of the Measure W appropriations for the current year.
Attachment A - FY 2016-17 Measure W Budget Update for the 3 and 6 Months Ended September 30, 2016, and December 31, 2016