PREPARED BY: MATT RODRIGUEZ DATE MEETING: 06/05/2023
SUBJECT:
TITLE
CONSIDER RECEIVING AND ACCEPTING THE INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE REPORTS FOR PERIOD ENDING JUNE 30, 2022 FOR MEASURE Q AND MEASURE K TRANSACTION & USE SALES TAX.
CEQA: This 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 adopted policy goals under the FY 2023-25 Council Priority Workplan, effective May 1, 2023.
CEQA Compliance Statement
This 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 No. 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 No. 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 Squad 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 expenses each year respectively.
On November 3, 2020, following adoption by the City Council of Ordinance No. 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 25, 2023, to review the necessary reports for the period ending June 30, 2022. Summary of the reports are as follows:
Measure Q 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, 2022. During FY 2021-22, 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 2021-22 Measure Q & Measure K Expenses: Overall, all the total Measure Q and Measure K local sales tax revenues and expenditures were reported to the Committee, as follows:
|
|
Measure Q |
Measure K |
|
Budgeted Revenues and Expenditures |
$ 918,000 |
$ 918,000 |
|
Actual Revenues |
$ 1,026,277 |
$ 1,025,357 |
|
Actual Expenditures |
$ 1,049,459 |
$ 1,615,686 |
|
Over/(Under) |
($ 23,182) |
($ 590,329) |
Note: Both Measures Q and K include General Fund (GF) expenditures exceeding actual revenue receipts to fully fund their respective programs and activities due to an anticipated decline in overall sales tax revenue set at ¼ cent and exacerbated by fiscal impacts of the COVID-19 pandemic for the period ending June 30, 2022. As a result, all expenditure programs and activities funded by Measures Q and K for the FY 2021-22 period resulting in City GF Operating Subsidies.
• Program Evaluation Presentation: The Committee reviewed annual program evaluation presentations for each 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 Q and K. The reports also presented statistical data that represents the positive impact that each measure had on designated target areas for FY 2021-22 period (See Attachments C and D: Measure Q and Measure K for FY 2021-22 Annual Reports; and Attachments E and F: Citizens’ Oversight Committee PowerPoint Presentations).
Several testimonials were presented for Measure Q that made a powerful statement on the impact of the programs in the lives of individuals. The value of Measure K funding was equally impressive in the number of calls to which EMS Squad 70 responded during the 2021-22 period: 2,965 EMS calls (1,228 fire condition calls and 249 EMS rescue calls) out of the total 4,620 annual call responses by FS No.70 in San Pablo (64.1%).
Compliance and Review Statement
As required by local voters under both measures, once Committee members completed their extensive review of all program data and audited financial reports for period ending June 30, 2022, they took official action to certify that all Measure Q and Measure K Transaction and Use Tax-related program revenues and expenditures for the FY 2021-22 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. Ordinances 2012-005 and 2014-007).
Following their review, the Committee had no changes or recommendations to the City Council on the FY 2021-22 Measure Q and K budgetary expenditures by the City (See Attachments G and H: 2021-22 Compliance and Review Statements). Therefore, the City Manager is recommending the City Council acknowledge and certify the Committee Compliance Statements recognizing the Independent Citizens’ Review of all Measure Q and Measure K related expenses for the period ending June 30, 2022.
FISCAL IMPACT
This report is for informational purposes only and has no fiscal impact on the City.
ATTACHMENTS:
Att 1 - 2021-22 Independent Accountant’s Report on Measure Q by Maze and Associates
Att 2 - 2021-22 Independent Accountant’s Report on Measure K by Maze and Associates
Att 3 - 2021-22 Measure Q Program Evaluation Report by Public Profit
Att 4 - 2021-22 Measure K Program Evaluation Report by Public Profit
Att 5 - Citizens’ Oversight Committee PowerPoint Summary, Measure Q for FY 2021-22
Att 6 - Citizens’ Oversight Committee PowerPoint Summary, Measure K for FY 2021-22
Att 7 - Measure Q 2021-22 Compliance and Review Statement (May 25, 2023)
Att 8 - Measure K 2021-22 Compliance and Review Statement (May 25, 2023)