PREPARED BY: MATT RODRIGUEZ DATE MEETING: 06/2/2025
SUBJECT:
TITLE
CONSIDER RECEIVING AND ACCEPTING THE INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE REPORTS FOR PERIOD ENDING JUNE 30, 2024 FOR MEASURE S (FORMERLY MEASURE Q) AND MEASURE K TRANSACTION & USE SALES TAX
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Receive and File Report by Minute Action
Body
Compliance statements
Diversify Revenue Stream (CM, CED & EDC) and Create a Sustainable Economic Ecosystem (CM, CED & EDC) are major policy goals in the recently adopted City Council Priority Work Plan FY 2025-27, adopted April 7, 2025.
CEQA Compliance Statement
This proposed action is not a project as defined by CEQA as a budget or financing mechanism pursuant to 14 Cal. Code of Regulations section 15378(b).
BACKGROUND
Following adoption by the City Council of Ordinance 2012-005, local San Pablo voters passed the Measure Q Sales Tax on June 5, 2012 (73.56%), to provide additional funding for general municipal services, including the following: Public Safety (especially gang prevention); job training for local residents (especially youth and the disenfranchised); and youth services. In addition, following adoption by the City Council of Ordinance 2014-007, local San Pablo voters passed the Measure K Sales Tax on June 3, 2014 (70.80%), to provide specific funding for an Emergency Medical Services (EMS) and Truck at ConFire Station No. 70 in San Pablo. Pursuant to Measures Q and K voter requirements, the City Council appointed representatives of San Pablo businesses and residents to serve on an Independent Citizens’ Oversight Committee (Committee) to monitor and review each local sales tax measure’s annual expenses, respectively.
On November 3, 2020, following adoption by the City Council of Ordinance 2020-009, local San Pablo voters approved the Measure S Sales Tax (79.19%) to extend the same local sales tax funding previously passed under Measure Q in 2012 following its sunset on September 30, 2022, for the next ten (10) year funding cycle beginning October 1, 2022, through September 30, 2032.
Annual Independent Citizens Committee Review
As required by each adopted Ordinance, the Committee held an annual public meeting on May 15, 2025, to review the necessary reports for the period ending June 30, 2024. The summary of the reports was as follows:
1) Measure S and Measure K Local Sales Tax Measure Reports:
• Independent Accountant’s Report: The City engaged its independent auditor, Maze & Associates, to review and report on the collection, management, and expenditure of revenues collected by each measure for the fiscal year ended June 30, 2024. During FY 2023-24, the City’s independent auditor finalized each measure’s separate report, which describes the auditor’s findings as it relates to the agreed upon procedures for each respective sales tax measure (See Attachments A and B: Audit Reports from Maze and Associates).
• FY 2023-24 Measure S & Measure K Expenses: Overall, all the total Measure S and Measure K local sales tax revenues and expenditures were reported to the Committee, as follows:
|
Report Period Ending June 30, 2024 |
Measure S |
Measure K |
|
Budgeted Revenues |
$2,068,144 |
$1,026,000 |
|
Actual Revenues |
$2,041,148 |
$1,020,577 |
|
Actual Expenditures |
$1,637,045 |
$1,783,793 |
|
Over/(Under) |
= $404,103 |
= (763,216) |
The Measure S General Fund (GF) revenue receipts fell short of the budgeted revenues overall. Additionally, the Community Services Department has a frozen full-time staff member and recently combined some programs, which were not reflected in the annual audit reports completed by Maze & Associates. However, all eligible expense programs were implemented successfully, with all expenses covered by the City’s GF Operating Budget rather than MS funding allocation for the reporting period ending June 30, 2024. As a result, all MS GF program expenditures in the Community Services Department will be reflected more accurately in the FY 2024-25 reporting period.
For Measure K GF revenue receipts, there were insufficient revenue receipts to cover all GF anticipated program expenditures associated with the FY 2023-24 Contra Costa County Fire Protection District (ConFire) EMS Services Agreement which totaled $1.78M resulting in a GF shortfall (or subsidy) for the period ending June 30, 2024.
As a result, all expenditure programs and activities funded by Measures S and K sales tax revenues were expended in accordance with local requirements for the FY 2023-24 period.
• Program Evaluation Presentation: The Committee reviewed annual program evaluation presentations for each sales tax measure based on reports produced by Public Profit, the City’s program evaluator. Using Maze & Associate’s audited figures, the reports reflect revenues collected and funds spent in support of programs and services made possible by Measures S and K. The reports also presented statistical data that represents the positive impact that each measure had on designated target areas for FY 2023-24 period (See Attachments C and D: Measure K and Measure S for FY 2023-24 Annual Reports; and Attachments E and F: Citizens’ Oversight Committee PowerPoint Presentations).
Several testimonials were presented for Measure S that made a powerful statement on the impact of City and SPEDC programs in the lives of local businesses and residents. The value of Measure K funding was equally impressive in the total number of service calls to which EMS Rescue Truck 70 responded during the 2023-24 period: 2,857 EMS Rescue Truck 70 service calls, 1,187 fire condition calls, 283 EMS rescue calls, a combined 94 calls in the mutual aid and service assist categories, and 122 fire hazard calls for an overall total of 4,543 annual service call responses from Fire Station No.70, located in San Pablo.
2) Compliance and Review Statement for Period Ending June 30, 2023
As required by local voters under both sales tax measures, once Committee members completed their annual review of all program data and audited financial reports for period ending June 30, 2024, they must take official action to certify that all Measure S and Measure K Transaction and Use Tax-related program revenues and expenditures for the FY 2023-24 period were utilized in accordance with the official ballot language as adopted by the local electorate and in compliance with adopted Sales Tax Ordinances of the San Pablo City Council (i.e. Ordinance 2014-007 for Measure K; Ordinance 2020-009 for Measure S).
Following Committee Review, the Committee may make recommendations to the City Council on future programming of Measure S and K budgetary expenditures for future Council consideration (See Attachments G and H: 2023-24 Compliance and Review Statements).
No further recommendations were made by the Committee following their annual review on May 15, 2025.
Therefore, the City Manager is recommending the City Council acknowledge and certify the Committee Compliance Statements, recognizing the Independent Citizens’ Review of all Measure S and Measure K-related expenses for the period ending June 30, 2024.
FISCAL IMPACT
This report is for informational purposes only and has no fiscal impact on the City.
ATTACHMENTS:
Att A - 2023-24 Independent Accountant’s Report on Measure K by Maze and Associates
Att B - 2023-24 Independent Accountant’s Report on Measure S by Maze and Associates
Att C - 2023-24 Measure K Program Evaluation Report by Public Profit
Att D - 2023-24 Measure S Program Evaluation Report by Public Profit
Att E - Citizens’ Oversight Committee PowerPoint Summary, Measure K for FY 2023-24
Att F - Citizens’ Oversight Committee PowerPoint Summary, Measure S for FY 2023-24
Att G - Measure K 2023-24 Compliance and Review Statement (May 15, 2025)
Att H - Measure S 2023-24 Compliance and Review Statement (May 15, 2025)