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MEASURE W CITIZENS’ OVERSIGHT COMMITTEE ADOPTED ANNUAL REPORT OF REVENUES AND EXPENDITURES FOR FISCAL YEAR 2018-19
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RECOMMENDATION
This item is an informational item submitting the Measure W Citizens’ Oversight Committee Report for Fiscal Year 2018-19 to the City Council.
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Summary
Stockton’s voters approved Measure W on November 2, 2004, and the City Council subsequently 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 ensure 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) 2018-19 (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. City staff presented the FY 2018-19 audited Schedule of Revenues, Expenditures, and Change in Fund Balance to the City’s Audit Committee and the City Council in December 2019, and the Measure W Citizens’ Oversight Committee on March 11, 2020. The Oversight Committee discussed the report at its June 2, 2020, meeting but could not approve it due to the lack of a quorum. The Committee subsequently approved the Measure W FY 2018-19 Annual Report at its October 7, 2020, meeting for presentation to the City Council and the public.
The FY 2018-19 Annual Report 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%).
FY 2018-19 revenue totaled nearly $11.7 million, an increase of 7.3% over what was estimated in the adopted budget and 9.8% higher than the prior year.
The Measure W expenditure budget for FY 2018-19 was approximately $10.7 million. Of this total allocation, almost $10.4 million was expended during the year, resulting in an increase to the ending available fund balance. Police and Fire salaries and benefits comprised just above 88% of the Measure W spending with Measure W covering the cost of 24 sworn positions in the Police Department and 25 firefighters in the Fire Department. Of the remaining expenditures, radio and automotive services accounted for 7%, purchase of capital equipment accounted for less than 1%, general liability insurance required just over 2%, and the remaining 2% paid for tax collection and review fees.
The Measure W fund balance as of June 30, 2019, was approximately $4.7 million, which is 43% of the FY 2019-20 budgeted revenue of $10.9 million. This fund balance is more than sufficient to meet the 25% program guideline reserve target. The fund balance is a reserve to ensure that the City can maintain the Measure W-funded police and fire positions during economic fluctuations.
FINANCIAL SUMMARY
There is no financial impact from the presentation of this report.
Attachment A - Measure W Annual Report for FY 2018-19