PREPARED BY: ARTURO CASTILLO DATE OF MEETING: 06/01/2026
SUBJECT:
TITLE
CONSIDER RECEIVING AND ACCEPTING THE INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE REPORTS FOR PERIOD ENDING JUNE 30, 2025 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
Continue Best Management Practices, Fiscal Excellence, and Fiscal Transparency is a major policy goal contained in the FY 2024-26 City Council Priority Workplan, effective 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 (74%), 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 (71%), to provide specific funding for a dedicated paramedic-staffed Emergency Medical Services (EMS) unit at ConFire Station No. 70 in San Pablo-originally Squad 70, which transitioned to Truck 70 in 2021 with the addition of aerial-ladder capability. 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%) 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 28, 2026, to review the necessary reports for the period ending June 30, 2025. 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, 2025. Maze & Associates issued its Independent Accountant’s Reports on December 17, 2025, finalizing 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 2024-25 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, 2025 |
Measure S |
Measure K |
|
Budgeted Revenues |
$2,100,000 |
$1,050,000 |
|
Actual Revenues |
$2,073,681 |
$1,036,165 |
|
Actual Expenditures |
$1,978,980 |
$1,872,711 |
|
Over/(Under) |
= $94,701 |
= ($836,546) |
For FY 2024-25, Measure S Actual Revenues of $2,073,681 came in slightly below the budgeted $2,100,000 (approximately 99%), and Actual Expenditures totaled $1,978,980, leaving a net positive variance of $94,701. As anticipated in last year’s report, the Community Services Department’s programs were fully reflected in the FY 2024-25 reporting period, with all three Measure S-funded Community Services positions (Manager + two Coordinators) charged at 100% of actual salaries and benefits, and the San Pablo Beacon Community School Initiative (SPBCSI) grantees (Bay Area Community Resources and Desarrollo Familiar, Inc.) fully funded. All eligible expense programs were implemented successfully during the reporting period.
FY 2024-25 marks the tenth fiscal year of Measure K-funded operations at Station 70. For Measure K, FY 2024-25 Actual Revenues of $1,036,165 were insufficient to cover the four quarterly payments of $466,755 each (totaling $1,867,020) under the Contra Costa County Fire Protection District (ConFire) Enhanced EMS Services Agreement, plus $2,753 in professional services and $2,938 in other costs (total expenditures of $1,872,711). This results in a General Fund operating subsidy of approximately $836,546 for the period ending June 30, 2025, consistent with the built-in feature of the 2014 contractual arrangement. The prior 5-year ConFire EMS Services Agreement expired on June 30, 2025. The City and ConFire have developed terms for a successor agreement covering July 1, 2025 through June 30, 2030 to continue Enhanced EMS services at Fire Station 70.
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 2024-25 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 2024-25 period (See Attachments C and D: Measure K and Measure S for FY 2024-25 Annual Reports; and Attachments E and F: Citizens’ Oversight Committee PowerPoint Presentations).
The Measure S Program Evaluation highlighted the impact of City and San Pablo EDC programs serving local residents and businesses, including job training, business technical assistance, and first-time homebuyer support. The value of Measure K funding was equally impressive in the total number of service calls to which Truck 70 responded during the FY 2024-25 period: 3,193 Emergency Medical Service responses, 1,308 fire condition responses, 294 rescue responses (primarily motor vehicle accidents), 101 hazardous condition responses, and 80 service assist responses, for an overall total of 4,976 annual service call responses from Fire Station No. 70, located in San Pablo - a 9% increase over the prior fiscal year and a 42% increase over the past ten years. Emergency Medical Service responses represent approximately 70% of Station 70’s total workload. The second paramedic-staffed company funded by Measure K provides essential operational resilience during system-wide constraints, including periods when countywide ambulance availability reaches Level-0 status (no ambulance immediately available for dispatch), ensuring the City is not left without immediate emergency response coverage.
2) Compliance and Review Statement for Period Ending June 30, 2025
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, 2025, 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 2024-25 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: 2024-25 Compliance and Review Statements).
No further recommendations were made by the Committee following their annual review on May 28, 2026.
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, 2025.
FISCAL IMPACT
This report is for informational purposes only and has no fiscal impact on the City.
ATTACHMENTS:
Att A. 2024-25 Independent Accountant’s Report on Measure K by Maze and Associates
Att B. 2024-25 Independent Accountant’s Report on Measure S by Maze and Associates
Att C. 2024-25 Measure K Program Evaluation Report by Public Profit
Att D. 2024-25 Measure S Program Evaluation Report by Public Profit
Att E. Citizens’ Oversight Committee PowerPoint Summary, Measure K for FY 2024-25
Att F. Citizens’ Oversight Committee PowerPoint Summary, Measure S for FY 2024-25
Att G. Measure K 2024-25 Compliance and Review Statement (May 28, 2026)
Att H. Measure S 2024-25 Compliance and Review Statement (May 28, 2026)