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MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ADOPTED ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2016-17
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RECOMMENDATION
This item is an informational item submitting the Measure W Citizens’ Oversight Committee Report for Fiscal Year 2016-17.
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Summary
Measure W was approved by Stockton voters approved on November 2, 2004. City Council adopted program guidelines to implement the measure. The guidelines require an audit performed by an independent certified public accountant, and the establishment of a citizen’s oversight committee to insure proper use of the revenues. The Measure W Citizens’ Oversight Committee has the responsibility to determine whether expenditures were made consistent with the program guidelines. Furthermore, the Committee is required to provide an annual report to the City Council.
The attached Measure W Annual Report for Fiscal Year (FY) 2016-17 (Attachment A) is presented to the City Council in compliance with the program guidelines.
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, also known as Measure W. The voters approved the measure on November 2, 2004. Measure W enabled the collection of a one-quarter percent sales tax specifically for police and fire services. The ordinance guidelines call 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. After the passage of the measure, the Council adopted guidelines for the functioning of the oversight committee and appointed members to the committee.
Present Situation
The 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 review this Annual Report. The financial information included in this Annual Report is based on the annual audit. The FY 2016-17 audited Schedule of Revenues, Expenditures, and Change in Fund Balance was reported to the City’s Audit Committee and Council in February 2018, and the Measure W Citizens’ Oversight Committee on May 30, 2018. The Oversight Committee discussed and approved the Measure W FY 2016-17 Annual Report for presentation to the Council and the public.
The Measure W Citizens’ Oversight Committee Annual Report for FY 2016-17 describes the receipt and expenditure of Measure W funds as well as compliance with requirements in the ordinance, policy and program guidelines. Under the current program guidelines, revenues collected from Measure W sales tax are split between Police (50%) and Fire (50%). The City spent an average of 88% of the Measure W expenditures on police and fire salary and benefit costs during FY 2016-17. This covered the cost of 24 sworn positions Police and 25 firefighters in the Fire Departments. In addition, 5% was spent on direct Police and Fire program expenditures such as fleet, fuel charges, equipment, and materials and supplies. The Fire also spent 3% for the purchase of a new fire pumper. The remaining 4% was spent on tax collection fees, insurance and incidental services related to the Measure W program.
Expenditures exceeded annual revenue from sales tax ($508,194) primarily due to the equipment purchase, leaving an ending fund balance at June 30, 2017 of $2,896,657 which is 33% of annual revenues. This fund balance is sufficient to meet the program guideline reserve target of 25%. The fund balance is a reserve to assure that services are maintained during economic fluctuations.
FINANCIAL SUMMARY
There is no financial impact from the presentation of this report.
Attachment A - Measure W Annual Report for FY 2016-17