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PRESENTATION OF FISCAL YEAR 2023-24 FIRST QUARTER MEASURE W REVENUES AND EXPENDITURES
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RECOMMENDATION
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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 three months ended September 30, 2023 (Attachment A).
The FY 2023-24 expenditure appropriation in the Adopted Budget of $15,507,904 was increased by $226,463 for encumbrances rolled from the prior year to cover equipment, supplies, and services ordered that had not been received prior to close of that year. Total approved expenditures for FY 2023-24 is $15,734,367 as of as of September 30, 2023.
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 evenly throughout the year and are recorded when paid. Revenue received as of September 30, 2023, of $1.2 million is 8% of annual estimated revenue reflecting one month of tax receipts, whereas expenditures totaled $4.0 million, the equivalent to 25% of the budget.
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. Within three months of the fiscal year, the Police Department expended 26% and the Fire Department expended 25% of their respective budgets.
Attachment A - Measure W FY 2023-24 Budget Update for the 3 Months Ended September 30, 2023