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REVIEW FISCAL YEAR 2017-18 FIRST QUARTER MEASURES A AND B REVENUES AND EXPENDITURES
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City ordinance 2013-07-09-1601, Section 19-Citizen Oversight stipulates the Measure A Citizens Advisory Committee: “shall meet at least annually to review the expenditure of revenues generated by the tax imposed by this Ordinance and make recommendations to the City Council regarding those expenditures.”
Section 7 of the Committee’s bylaws (Informational Materials) also states: “At least quarterly, financial reports-including proposed Budgets and Actuals with detailed supporting schedules will be sent to each Committee member. The reports will show revenue generated by Measure A, detailed line-item expenditures as presented in the annual budget relative to Measure B (public safety), and all other uses of remaining Measure A funds and State Board of Equalization reports.”
Attached for review by the Measure A Citizens’ Advisory Committee is the first quarter financial report for Fiscal Year (FY) 2017-18.
The FY 2017-18 Amended Budget on Attachment A includes budget amendments approved by Council and encumbrance rollovers from FY 2016-17 for the total amended budget for Police and the Office of Violence Prevention (OVP) of $22.4 million, an increase of $390,000 from the adopted budget.
Revenues received as of September 30, 2017, were $2,951,651 reflecting only one month of tax revenues received for sales occurring during July 2017. Also attached is the State Board of Equalization (BOE) sales tax revenues report for the quarter ended September 30, 2017. The BOE report dated 12/02/2017 shows full third quarter Measure A revenues of $7,977,848 under add-on code 361. These third quarter revenues are not reflected on Attachment A, as they are not fully received by the City until December.
The Police Department expended $4.8 million, and OVP expended $178,210 during the first quarter of the fiscal year for total Measure B eligible expenses of just under $5.0 million. It is normal for salary, benefit and operating expenses to be less than one-quarter of the budget in the first three months of the fiscal year. At the end of the first quarter, the Police Department had spent 23% of its total Measure A funded budget and OVP had spent 17%. Combined salary and benefit costs for Police sworn and non-sworn positions were 23% of the budget including budgeted vacancy savings of $2.3 million. OVP salary and benefit expenses were at 20% of budget in the first quarter with one position vacant as of September 30, 2017. Based on first quarter activity, Police Department fuel usage may be higher than anticipated in the Measure A budget. Staff will be reviewing this and will make adjustments as appropriate. First quarter Police Department expenses included $151,772 for training primarily for academy expenses.
General Fund Services and Reserves show a negative $2.0 million because expenses exceeded revenues in the first quarter. Consistent with the Adopted Budget, revenues are projected to exceed expenses by year-end.
Attachment A - Measures A and B FY 2017-18 First Quarter Report
Attachment B - Measure A Revenues BOE Quarterly Report July - Sept 2017