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ADVISORY MEASURE B 65%/35% PROCEEDS ALLOCATION
recommended action
This item is for informational purposes only.
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Summary
On November 5, 2013, voters approved Measure B to advise the City on how it should use Measure A monies. The projection of Measure A proceeds allocation is now updated based on financial data through June 30, 2017, and is available for review. By Fiscal Year 2022-23, staff projects the City will cumulatively exceed the Measure B recommended spending on law enforcement and crime prevention services based on revenues and expenditures to date and projected revenues and spending.
DISCUSSION
Background
A non-binding advisory (Measure B) was presented to and approved by voters that provided an opportunity to express an opinion about how the City should use Measure A monies.
Measure B - Ballot Question (As it appeared on the November 5, 2013, Ballot)
"If Measure A is approved by the voters, shall (i) 65% of its proceeds be used only to pay for law enforcement and crime prevention services in the City such as those described in the City's Marshall Plan on Crime and (ii) 35% of its proceeds be used only to pay for the City's efforts to end the bankruptcy and for services to residents, businesses, and property owners?"
This question requires the approval of a majority of those casting votes. It is an advisory measure only.
- A "Yes" vote expresses an opinion that 65% of the tax proceeds should be used to pay for law enforcement and crime prevention services, such as those described in the City's Marshall Plan on Crime, and 35% should be used only to pay for the City's efforts to end bankruptcy and for services to residents, businesses and property owners.
- A "No" vote may be viewed as an opinion against the uses or as neutral, as to the uses proposed.
The City Council supported this advisory measure through approval of the Measures A and B Implementation Plan - Phase 1 on February 25, 2014.
Present Situation
Original 35%/65% split from 6/25/13 Marshall Plan Report
The table below shows the original projected use of the Measure A proceeds between improving public safety services (Marshall Plan) and balancing the General Fund budget (Bankruptcy Recovery Plan). Initially, more proceeds were devoted to bankruptcy recovery, and then as Marshall Plan costs were fully phased in, more proceeds would be used to fund this improvement in public safety services. Over a ten-year period, it was estimated that safety services would consume approximately 66% of the total tax proceeds, and balancing the General Fund budget and emerging from bankruptcy would use approximately 34% of the total tax proceeds.
Updated 35%/65% split at 6/30/17 Financial Report
The same table is updated below to include actual revenue and expenditures for four fiscal years, FY 2017-18 budget, and revised projections
The updated table projects that the City will exceed the Measure B recommended spending on law enforcement and crime prevention services with 69% spent on Marshall Plan activities based on current spending and projected future spending.