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REVIEW FISCAL YEAR 2024-25 FIRST QUARTER MEASURES A AND B REVENUES AND EXPENDITURES
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RECOMMENDATION
This item is for informational purposes only. No action is required.
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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 First quarter financial report for Fiscal Year (FY) 2024-25.
The FY 2024-25 Amended Budget, detailed in Attachment A, includes encumbrance rollovers from FY 2023-24 and Council approved budget amendments. Police Department and Office of Violence Prevention (OVP) expenditures total $38.7 million, an increase of $941,957 from the adopted budget.
Budgeted revenues are $47.1 million. Measure A transaction and use tax revenues of $3.6 million for the month of July 2024 were received prior to September 30, 2024. Per the attached report from the California Department of Tax and Fee Administration, $8 million more will be received for the quarter ended September 30, 2024, a total of $11.5 million for the quarter (Attachment B).
Expenditures through the first quarter totaled $9.3 million, or 24% of the Amended Budget. The Police Department expended approximately $8.8 million, and the Office of Violence Prevention expended $0.5 thousand through the first quarter of the fiscal year. Quarterly expenditures include $47,460 in annual tax collection and audit recovery expenses payable to CDTFA related to Measure A revenues.
At the first quarter, 25% is the target budget utilization. Combined salary and benefit costs for Police sworn and non-sworn positions were at 25% of the budget, including the budgeted vacancy savings. Most Police Department expenditure categories were nearly 25% of the budget in the first quarter. Other supplies utilize 33% of the budget.
Office of Violence Prevention expenditures through the first quarter totaled $425,051, which represents 25% of its Measure A-funded budget. Salary and benefit expenditures are 23% of the budget.
Measure A expenditures exceed revenues in the first quarter of fiscal year 2024-25, resulting in a $5.7 million cash flow gap. This shortfall will be addressed using General Fund reserves. Consistent with the Adopted Budget, revenues are projected to meet expenses by year-end.
Attachment A - Measure A and B FY 2024-25 1st Quarter Report
Attachment B - Measure A CFDTA Quarterly Revenue Report