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REVIEW FISCAL YEAR 2023-24 FOURTH QUARTER MEASURES A AND B REVENUES AND EXPENDITURES
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RECOMMENDATION
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Summary
City Ordinance 2013-07-09-1601, Section 19-Citizen Oversight stipulates the Measure A Citizens’ Advisory Committee: “Shall meet at least annually to review the expenditure of revenues generated by the tax imposed by this Ordinance and make recommendations to the City Council regarding those expenditures.”
Section 7 of the Committee’s bylaws (Informational Materials) also states: “At least quarterly, financial reports including proposed Budgets and Actuals with detailed supporting schedules will be sent to each Committee member. The reports will show revenue generated by Measure A, detailed line-item expenditures as presented in the annual budget relative to Measure B (public safety), and all other uses of remaining Measure A funds and State Board of Equalization reports.”
Attached for review by the Measure A Citizens’ Advisory Committee is the Fourth quarter financial report for Fiscal Year (FY) 2023-24.
The FY 2023-24 Amended Budget, as shown on Attachment A, includes encumbrance rollovers from FY 2022-23 and Council approved budget amendments. Measure A funded Police Department and Office of Violence Prevention (OVP) expenditures in the Amended Budget totaled approximately $39.0 million.
Total revenues included in the FY 2023-24 Amended Budget are approximately $46.3 million. Measure A transaction and use tax revenues received as of June 30, 2024, totaled $46.2 million, reflecting twelve (12) monthly payments for sales transactions occurring between July 2023 and June 2024. Also attached is the California Department of Tax and Fee Administration Sales Tax Revenues Report that indicates gross receipts of $11,704,493, $11,928,580, $10,937,323, and $11,644,160 for the quarters ended September 30, 2023, December 31, 2023, March 31, 2024, and June 30, 2024 respectively (Attachment B), for a total of $46,214,556.
Expenditures through the fourth quarter totaled approximately $38.2 million, or 94% of the Amended Budget. The Police Department expended approximately $36.8 million, and the OVP spent approximately $1.4 million through the fourth quarter of the fiscal year. Combined salary and benefit costs for Police sworn and non-sworn positions were at 99% of the budget, including the budgeted vacancy savings.
At the fourth quarter, 100% is the target budget utilization. Most Police Department expenditure categories were near 100% of the budget at fourth quarter. Budget utilization for fuel is 109%, due to variations in fuel prices. Other supplies are utilizing 63% of the budget. Inventory is kept and supplies are ordered as needed throughout the year. Measure A-funded training has utilized 64% of the amended budget. Training costs are cyclical and primarily consist of Police Academy costs based on the number of trainees and timing of classes.
OVP expended $1,375,062 through the end of the fourth quarter of FY 2023-24, which was 99% of the OVP Measure A-funded budget. OVP salary and benefit expenses are at 100% of the budget. In addition, utilization of fuel and other supplies are currently slightly under budget.
The Marshall Plan expenses through the end of the third quarter have utilized 83% of the FY 2023-2024 Measure A tax revenues, which is 18% over the Measure B advisement of 65%.
This quarterly report includes $220,097 in annual tax collection and audit recovery expenses related to Measure A revenues. General Fund Services and Reserves display a surplus of $7.8 million. The General Fund Services and Reserve dollars are required to fund vital City services and maintain service levels.
Attachment A - Measure A and B FY 2023-24 4th Quarter Report
Attachment B - Measure A CFDTA Quarterly Revenue Report