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HomeMy WebLinkAboutFIN Annual Measure E TUT Oversight Committee Report____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: 12/16/2019 Disposition: Accepted Report Agenda Item No: 4.b Meeting Date: December 16, 2019 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Nadine Atieh 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 2018-2019 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 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. 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 November 21, 2019. ANALYSIS: The Measure E Oversight Committee met on November 21, 2019, to review the actual Measure E TUT revenues and expenditures for fiscal year 2018-2019. Staff reported that during fiscal year 2018-2019, $26,142,485 of Measure E TUT proceeds were expended. Consistent with the direction provided by the City Council, $4,145,000 representing the additional one-quarter percent provided by Measure E was assigned to a Public Safety Facilities Fund. These funds were added to $17,874,853 of bond proceeds. Interest income of $871,481 and SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 reimbursements from the County of Marin of $3,251,151 for Fire Station 57 supplemented the City’s funds dedicated to the active public safety facilities projects. The reimbursement from the County of Marin is up to $6,175,500 of which a portion was reimbursed in prior years and the remainder will be reimbursed in Fiscal Year 19/20. The Measure E TUT Oversight Committee’s report provides the Committee’s conclusions that Measure E TUT revenues received during fiscal year 2018-2019, the sixth 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 2018-2019. ATTACHMENT: Exhibit A: Committee’s annual report City of San Rafael Measure E Oversight Committee Report November 21, 2019 The City of San Rafael Measure E Oversight Committee met on November 21, 2019 and received a detailed report from the City of San Rafael Finance Director, Nadine Atieh Hade on the receipt and expenditure of funds during the fiscal year July 1, 2018 to June 30, 2019 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: J John Erdmann ~ti~ {'L ,).duc,z/ Gladys Giland