HomeMy WebLinkAboutFIN Measure E Transactions and Use Tax Oversight Committee Annual Report____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: 12/17/2018
Disposition: Accepted report
Agenda Item No: 4.e
Meeting Date: December 17, 2018
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Nadine Hade, Finance Director City Manager Approval: ______________
TOPIC: ANNUAL MEASURE E TUT OVERSIGHT COMMITTEE REPORT
SUBJECT: MEASURE E TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE
REPORT FOR FISCAL YEAR 2017-2018
RECOMMENDATION: ACCEPT REPORT
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. As of
November 30, 2018, two of the members were reappointed. The current members are:
•Jacqueline Schmidt - December 1, 2018 to November 30, 2022
•Larry Luckham - December 1, 2018 to November 30, 2022
•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 December 4, 2018.
ANALYSIS: The Measure E Oversight Committee met on December 4, 2018, to review the
actual Measure E TUT revenues and expenditures for fiscal year 201 7-2018.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Staff reported that during fiscal year 2017-2018, $14,267,555 of Measure E TUT proceeds
were expended. Consistent with the direction provided by the City Council, $4,025,000
representing the additional one-quarter percent provided by Measure E was assigned to a
Public Safety Facilities Fund. These funds were added to the $4,763,886 balance that had
been accumulated as of July 1, 2017 and $3,123,657 of bond proceeds. Interest income of
$196,846 and reimbursements from the County of Marin of $2,158,166 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,
provides the Committee’s conclusions that Measure E TUT revenues received during fiscal
year 2017-2018, the fifth 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: Accept the Measure E Transactions and Use Tax Oversight
Committee Report for Fiscal Year 2017-2018
ATTACHMENT:
Exhibit A: Committee’s annual report
City of San Rafael
Measure E Oversight Committee Report
December 4, 2018
Exhibit A
The City of San Rafael Measure E Oversight Committee met on December 4, 2018 and received
a detailed report from the City of San Rafael Finance Director, Nadine Hade on the receipt and
expenditure of funds during the fiscal year July 1, 2017 to June 30, 2018 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 : ) £ .~ I •·/
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