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REVIEW FISCAL YEAR 2018-19 FIRST QUARTER MEASURE M REVENUES AND EXPENDITURES
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Summary
City ordinance (2016-06-07-1212) established a citizen advisory committee to annually review Measure M (Strong Communities) expenditures to confirm they are made in accordance with the Measure as approved by the voters and to make recommendations to the City Council regarding those expenditures.
Background
On August 21, 2018, the City Council approved (Resolution 2018-06-05-1501-01) an expenditure plan with revenue and expenditure projections for the 16-year lifespan of the measure. Restoration of library and recreation services is a key element of the expenditure plan that includes increasing library and community center hours evenings and weekends.
As part of the City’s 2018-19 budget development process, the City Council approved the Strong Communities budget on June 5, 2018. Total budgeted revenues are $10,538,544 from sales tax activity. The 2018-19 adopted expenditure budget of $12,210,198 was increased by $199,387 for encumbrances rolled from the prior year for total expenditure authority of $12,409,585 as of September 30, 2018.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the first quarter financial report for the 2018-19 fiscal year.
Revenues received as of September 30, 2018, were $880,057 reflecting only one month of tax revenues received for sales occurring during July 2018. Also attached is the California Department of Tax and Fee Administration’s sales tax revenue report for the quarter ended September 30, 2018 (Attachment B). The report dated 11/15/18 shows full third quarter Strong Communities gross revenues of $3,205,265.72 under add-on code 537. These third quarter revenues are not reflected on Attachment A, as the City does not fully receive them until December.
Expenditures during the first three months of the fiscal year were $1,291,057. With 25% of the year completed, expenditures are a 10% of the budget. None of the $5.3 million capital project funding has been spent in the first quarter of the fiscal year. Excluding the budget for capital projects, first quarter operating expenses are 18% of the operating budget.
Salaries and benefits were $862,867 of the total first quarter expenditures with approximately 28% for Library programs and 59% for Recreation programs. Staffing expenses reflect the filling of approved full-time positions and part-time positions required to implement the restoration of hours of service which began in July 2018.
Attachment A - Measure M FY 2018-19 First Quarter Report
Attachment B - Measure M Revenues CDTFA Reports