title
PRESENTATION OF FISCAL YEAR 2020-21 SECOND QUARTER MEASURE W REVENUES AND EXPENDITURES
recommended action
RECOMMENDATION
Information item only.
body
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 six months ended December 31, 2020. The FY 2020-21 expenditure appropriation in the Adopted Budget of $11,854,792 was increased by $173,373 for encumbrances rolled from the prior year for items ordered that had not been received prior to close of that year. Total approved expenditures for FY 2020-21 are $12,028,165 as of December 31, 2020.
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 December 31, 2020, of $4.2 million is 43% of annual estimated revenue reflecting four months of tax receipts, whereas expenditures totaled $5.7 million, the equivalent to 47% of the budget.
In FY 2020-21, 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 six months of the fiscal year, the Police Department expended 46% and the Fire Department expended 49% of the respective budgets. State of California tax administration fees are paid at the end of each quarter of revenue remitted, with one quarter payment posted in the first six months of the fiscal year. 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. Measure W expenses are projected to be slightly below the budgeted amounts at year-end as presented in the FY 2021-22 Proposed Budget agenda item.
Attachment A - Measure W FY 2020-21 Budget Update for the Six Months Ended December 31, 2020.