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Home My WebLink AboutFIN Measure E Oversight Committee Report____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 9-2-68 Council Meeting: 3/05/2018 Disposition: Resolution 14473 Agenda Item No: 4.f Meeting Date: March 5, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Mark Moses Finance Director City Manager Approval: ______________ TOPIC: ANNUAL MEASURE E TUT OVERSIGHT COMMITTEE REPORT SUBJECT: RESOLUTION ACCEPTING THE MEASURE E TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2016-2017 RECOMMENDATION: ADOPT RESOLUTION BACKGROUND: On August 5, 2013, the San Rafael City Council passed Ordinance No. 1913, establishing a new Transactions and Use Tax (TUT) subject to voter approval. On November 5, 2013, San Rafael voters approved Measure E. This new, twenty-year San Rafael three-quarter percent TUT became effective April 1, 2014, and supplanted the former Measure S one-half percent TUT, which had been in effect since April 1, 2006, and was originally scheduled to terminate on March 31, 2016. Similar to the previous (Measure S) TUT, the enabling TUT ordinance for Measure E called for the creation of an independent oversight committee to review the collection and expenditure of this tax revenue. This committee was established on April 7, 2014 by City Council Resolution No. 13704 which also set forth the roles, responsibilities and duties of the committee. On October 6, 2014, the City Council appointed five members of the public to the committee. At the meeting of January 17, 2017, three of the members were reappointed. The current members are: • Jacqueline Schmidt - December 1, 2014 to November 30, 2018 • Larry Luckham - December 1, 2014 to November 30, 2018 • Gladys Gilliland - December 1, 2016 to November 30, 2020 • Cyr Miller - December 1, 2016 to November 30, 2020 • John Erdmann - December 1, 2016 to November 30, 2020 The purpose of this report is to present and recommend acceptance of the Measure E TUT Oversight Committee report of January 11, 2018. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: The Measure E Oversight Committee met on January 8, 2018, to review the actual Measure E TUT revenues and expenditures for fiscal year 2016-2017. Staff reported that during fiscal year 2016-2017, $11,534,888 of Measure E TUT revenues were collected and recorded in the City’s General Fund. Consistent with the direction provided by the City Council, $3,844,963 representing the additional one-quarter percent provided by Measure E was assigned to a Public Safety Facilities Emergency Reserve. These funds were added to the $6,336,377 balance that had been accumulated as of July 1, 2016. From these funds, $5,417,454 was transferred to the dedicated capital project account for major construction and improvements to public safety facilities. This resulted in a net decrease of $1,572,491 to the reserve during the fiscal year, thus lowering the reserve balance from $6,336,377 as of June 30, 2016 to $4,763,886 as of June 30, 2017. Reimbursements from the County of Marin of $635,387 for Fire Station 57 supplemented the City’s funds dedicated to the active public safety facilities projects. The Measure E TUT Oversight Committee’s report, which is attached to the Resolution, provid es the Committee’s conclusions that Measure E TUT revenues received during fiscal year 2017-2018, the fourth year in which that TUT was in effect, were “properly allocated in accordance with Measure E and approved guidelines.” FISCAL IMPACT: There is no fiscal impact associated with the acceptance of the Measure E TUT Oversight Committee report. There is incidental impact on staff time related to the support of Measure E Transactions and Use Tax Oversight Committee. This primarily consists of preparing financial reports, performing research and providing support to the annual meeting. RECOMMENDED ACTION: Adopt Resolution accepting report. ATTACHMENT: Resolution with Committee’s annual report RESOLUTION NO. 14473 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ACCEPTING THE MEASURE ‘E’ TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2016-2017 WHEREAS, on November 5, 2013, the voters of San Rafael approved a Transactions and Use Tax (“Measure E”). This measure, approved pursuant to enabling Ordinance No. 1913, became effective on April 1, 2014, and established a 0.75% retail transaction and use tax for a term of 20 years; and WHEREAS, the enabling ordinance required the appointment of an independent citizen’s oversight committee whose purpose is to review the collection and expenditure of tax revenues collected under the authority of this ordinance; and WHEREAS, on January 8, 2018, the Committee reviewed the City’s General Fund actual financial results for fiscal year 2016-2017 for Measure E revenues and expenditures, submitted a report, and concluded in its report that Measure E funds were properly allocated and spent. NOW, THEREFORE, BE IT RESOLVED, the San Rafael City Council accepts the January 11, 2018 report from the Measure ‘E’ Committee, a copy of which is attached hereto as Exhibit A and by this reference made a part hereof. I, LINDSAY LARA, Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on Monday the 5th day of March 2018, by the following vote, to wit: AYES: COUNCILMEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ____________________________________ LINDSAY LARA City Clerk City of San Rafael Measure E Oversight Committee Report Jan 11, 2018 The City of San Rafael Measure E Oversight Committee met on January 08, 2018, and received a detailed report from City of San Rafael Finance Director Mark Moses on the receipt and expenditure of funds during the fiscal year July 1, 2016 to June 3D, 2017 pursuant to voter approved Measure E (San Rafael Ordinance 1913). The Measure E Oversight Committee is required to review the collection, expenditure, and prioritization of the use of these funds, and report to the City Council and the community annually on the expenditures under Guidelines and Policy adopted by the San Rafael City Council. After review, the Measure E Oversight Committee finds that these funds were properly allocated in accordance with the Measure and approved guidelines. Respectfully submitted: ---- John Erdmann 1a~~(?r~ Gladys Gill! nd Staff Report Author: Mark Moses Date of Meeting: 03/05/2018 Department: Finance Topic: ANNUAL MEASURE E TUT OVERSIGHT COMMITTEE REPORT Subject: RESOLUTION ACCEPTING THE MEASURE E TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2016 2017 Type: (check all that apply) ☒ Consent Calendar ☐ Public Hearing ☐ Discussion Item ☒ Resolution ☐ Ordinance ☐ Professional Services Agreement ☐ Informational Report *If PSA, City Attorney approval is required prior to start of staff report approval process Was agenda item publicly noticed? ☐ Yes ☐No Date noticed: ☐Mailed ☐Site posted ☐Marin IJ Due Date Responsibility Description Completed Date Initial / Comment DEPARTMENT REVIEW FRIDAY noon Director Director approves staff report is ready for ACM, City Attorney & Finance review. 2/15/2018 ☒ MM CONTENT REVIEW MONDAY morning Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will review items, make edits using track changes and ask questions using comments. Items will be returned to the author by end of day Wednesday. Click here to enter a date. 2/21/2018 2/15/2018 ☐ ☒ LG ☒ MM DEPARTMENT REVISIONS WEDNESDAY noon Author Author revises the report based on comments receives and produces a final version (all track changes and comments removed) by Friday at noon. 2/26/2018 ☒ MM ACM, CITY ATTORNEY, FINANCE FINAL APPROVAL MONDAY morning Assistant City Manager City Attorney ACM, City Attorney & Finance will check to see their comments were adequately addressed and Click here to enter a date. Click here to ☐ ☐ Finance sign-off for the City Manager to conduct the final review. enter a date. 2/26/2018 ☒ MM TUES noon City Manager Final review and approval Click here to enter a date. ☐