title
REVIEW FISCAL YEAR 2016-17 FOURTH QUARTER MEASURES A AND B REVENUES AND EXPENDITURES
recommended action
Information item only.
body
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 fourth quarter financial report for Fiscal Year (FY) 2016-17.
Revenues - Measure A transaction and use tax revenues were $30,048,605 as of the close of FY 2016-17, ending the year $112,395 (0.4%) under the budgeted amount of $30,161,000.
Police Department Expenses - The Police Department expended $17.5 million in FY 2016-17 with $5.8 million of the expenses occurring in the fourth quarter. Salary and benefits totaled $13.4 million or 82% of the budgeted salary and benefits including projected vacancy savings. The FY 2016-17 Budget assumed salaries and benefits would be $3.6 million less than budget due to vacancies. However, the Police Department experienced another $3.0 million in vacancy savings in addition to the budgeted $3.6 million. As the Police Department has continued to make progress hiring sworn officers throughout the year, the salary and benefit costs have increased in each quarter as shown in the chart below. As of June 30, 2017, the City had filled 84% of the Measure A-funded Police Department authorized positions.
Vehicle expenses (including the costs to equip vehicles) were the second largest expense in the fourth quarter with a total annual expense of $1.3 million. Vehicles purchased include 20 Ford Explorers, 10 Ford Taurus sedans, and 5 Ford trucks. Fuel usage was also higher in the fourth quarter with more Measure A-funded vehicles in use.
Office of Violence Prevention (OVP) - The Office of Violence Prevention expended $933,000 in FY 2016-17 using 98.6% of the OVP Measure A budget. With all Measure A-funded positions filled by June 30, 2017, approximately 98% of the salary and benefits budget was expended. Most expenditure categories are at or near budget with a small portion of the Other Expenses budget for training and travel remaining unspent. Other Supplies and Office Equipment include one-time expenses related to setting up office space, network access, supplies and printers for staff.
In total, the City expended $18.4 million of the $21.9 million budget on Measure B qualifying activities with 16% of the budget unspent primarily due to Police Department vacancies. This $18.4 million is 61% of the total FY 2016-17 Measure A revenues received.
This quarterly report includes $295,000 in annual audit and tax collection expenses related to Measure A revenues. The report also shows $407,000 expended on three Mission Critical projects active in FY 2016-17 including Economic Development Implementation activities, Street Resurfacing, and the Marketing/Communications Plan. The amount expended in FY 2016-17 does not include transfers to other funds for Mission Critical projects.
Also attached is the State Board of Equalization sales tax revenues report for the quarter ended June 30, 2017. Measure A is identified on the report as add-on tax code 361.
Attachment A - Measures A and B FY 2016-17 Fourth Quarter Report
Attachment B - Measure A Revenues BOE Quarterly Report April - June 2017