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REVIEW FISCAL YEAR 2023-24 FIRST QUARTER MEASURE M REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
City ordinance (2016-06-07-1212) established a citizen advisory committee to review the expenditure of Measure M (Strong Communities) revenues to confirm they are made in accordance with the Measure as approved by the voters.
Background
On August 21, 2017, the City Council approved (Resolution 2017-08-21-0801) 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 Fiscal Year (FY) 2023-24 budget development process, the City Council approved the Strong Communities budget on June 20, 2023. Total budgeted revenues are $15,039,465 from sales tax activity and investment income. The FY 2023-24 adopted expenditure budget of $25,754,476 was increased by $1,211,915 for encumbrances rolled from the prior year, $12,123,911 capital appropriations and $162,857 for increase in labor contracts for total expenditure authority of $39,253,162 as of September 30, 2023
Present Situation
Attached for review by the Strong Communities Advisory Committee is the First Quarter (Attachment A) financial reports for FY 2023-24.
As of September 30, 2023, total revenues received for sales tax transactions were $1,257,992, reflecting only one (1) monthly payment for sales transactions occurring in July 2023. Also, attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarter ended September 30, 2023 (Attachment B). The CDTFA data shows Strong Communities gross revenues of $3,900,805 for the quarter covering July, August, and September 2023. The variance is because of the time it takes for the State to process remittances.
Expenditures through the first quarter of the fiscal year were $2,020,160 for operating expenses, 16% of the annual operating budget. Expenses for Library programs were 13% of budget and Recreation Programs were 18% of budget. One-time purchases which include funding for the Bookmobile, Self-Check Machines, and the Weston Ranch branch refresh have not occurred as of the first quarter. Ongoing purchases for Library materials and Aquatics equipment will occur later in the fiscal year.
Total salaries and benefits expenditures were $1,155,661 at the end of the first quarter with approximately 28% for Library programs and 72% 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. Other major expense categories and expenses through the first quarter of FY 2023-24 were:
• Library Materials $130,135
• Utilities $169,992
• Facility Maintenance $163,253
Capital Projects, which are budgeted at $26,664,911 report $0 expended through the first quarter of the fiscal year. Many of the capital projects have multiple funding sources. Project expenses occur throughout the year and are later allocated to the correct funding source. The table below shows all project expenditures as of September 30, 2023, of $20,738,022, as well as total funding from Strong Communities tax dollars ($39,414,500) and other funding sources ($36,925,000).
As of September 30, 2023 (FY 2023-24 First Quarter)
Attachment A - Strong Communities FY 2023-24 Budget Update - First Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report