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PRESENTATION OF FISCAL YEAR 2018-19 FIRST QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
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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. In November of that year, voters approved Measure W, Stockton Safe Neighborhood Gang and Drug Prevention Police/Fire Response Initiative and the City established an ordinance and guidelines. The guidelines for the initiative stipulated an independent citizen oversight committee be created, meet at least annually to review revenues and expenditures, and verify spending complies with the ordinance. City Council later adopted Council Policy 3.04.060, which directs the City staff to submit quarterly financial reports for the Committee to review.
Present Situation
In compliance with Council Policy 3.04.060, attached for review by the Measure W Independent Citizen’s Oversight Committee is a financial report for the three months ended September 30, 2018. The FY 2018-19 expenditure appropriation in the Adopted Budget of $10,576,775 was increased by $78,331 for encumbrances rolled from the prior year for items ordered that had not been received prior to June 30, 2018. Total approved expenditures for FY 2018-19 are $10,655,106 as of September 30, 2018.
During the year, tax revenue is recorded when it is physically received from the California Department of Tax and Fee Administration and typically follows the month earned by 60 to 90 days, whereas most expenses are incurred very evenly throughout the year and are recorded when paid. Revenue received as of September 30, 2018, of $0.9 million reflected one month of tax receipts, or 8% of annual estimated revenue, whereas expenditures totaled $2.6 million, the equivalent to 24% of budget.
Employee, equipment, and radio costs make up ninety-three percent of the annual budget and are spent relatively evenly throughout the year. In FY 2018-19, Measure W expenditure appropriations are sufficient to cover the cost of 25 sworn staff in the Fire Department and 24 sworn staff in the Police Department. In the first three months of the fiscal year, the Police Department expended 24% and the Fire Department expended 25% of the respective budgets. No tax administration costs had been paid to the State of California in the first quarter as they are collected after each quarter of revenue is remitted. At this time, staff knows of no significant events that have occurred that would affect the sufficiency of the Measure W appropriations for the current year.
Attachment A - FY 2018-19 Measure W Budget Update for the Three Months Ended September 30, 2018