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REVIEW FISCAL YEAR 2022-23 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) 2022-23 budget development process, the City Council approved the Strong Communities budget on June 21, 2022. Total budgeted revenues are $14,027,000 from sales tax activity. The FY 2022-23 adopted expenditure budget of $16,059,648 was increased by $400,075 for encumbrances rolled from the prior year and $13,409,615 capital appropriations for total expenditure authority of $29,869,339 as of September 30, 2022.
Present Situation
Attached for review by the Strong Communities Advisory Committee is the First Quarter (Attachment A) financial reports for FY 2022-23.
As of September 30, 2022, total revenues received for sales tax transactions were $1,303,582 from sales tax transactions occurring in the month of July. Also, attached is the California Department of Tax and Fee Administration (CDTFA) sales tax revenue report for the quarters ended September 30, 2022 (Attachment B). The CDTFA data shows Strong Communities gross revenues of $4,127,678 for the quarter covering July, August, and September 2022. The difference between reported revenues and the CDTFA amount was received by the City after September 30, 2022.
Expenditures during the first quarter of the fiscal year were $1,845,741. Capital Projects, which are budgeted at $18,759,615 report $0 expended through the first quarter of the fiscal year. Actual capital project expenses of $1,978,108 did occur in the first quarter, however, due to staffing shortages, these expenses did not get allocated to the Strong Communities accounts. An allocation entry will be processed later in FY 2022-23. Capital project appropriations include:
Total operating expenses of $1,845,741 are 17% of the annual operating budget. Expenses for Library programs are 14% of the budget and Recreation Programs are 19% of budget. The FY 2022-23 adopted budget included $1.3 million in start up expenses for the Northeast Library and Community Center that won’t be utilized until later in the fiscal year.
Total salaries and benefits expenditures were $1,044,402 at the end of the first quarter with approximately 32% for Library programs and 68% 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 2022-23 were:
• Library Materials $101,668
• Utilities $195,552
• Facility Maintenance $156,485
Attachment A - Strong Communities FY 2022-23 Budget Update - First Quarter
Attachment B - Measure M Revenues CDTFA Quarterly Distribution Report