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Home My WebLink AboutCC Resolution 13510 (Measure S Report)RESOLUTION NO. 13510 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL ADOPTING THE MEASURE 'S' COMMITTEE REPORT COVERING THE ACTUAL FISCAL YEAR 2011-2012 GENERAL FUND FINANCIAL RESULTS WHEREAS, on November 8, 2005, the voters of San Rafael approved a Transactions and Use Tax ("Measure S"). This measure amended the San Rafael Municipal Code to establish a 0.5% retail transaction and use tax within the City of San Rafael; and WHEREAS, the enabling ordinance required the appointment of an independent citizens' oversight committee whose purpose is to review the collection and expenditure of tax revenues collected under the authority of this ordinance; and WHEREAS, on February 28, 2013, the Committee met and reviewed the City's General Fund actual financial results for fiscal year 2011-2012, and issued a written report dated March 4, 2013; and WHEREAS, the Committee noted that actual expenditures for the three "essential services departments" (Police, Fire and Public Works) during fiscal year 2011-2012 ranged from 6.6% less to 1.0% more than the inflation-adjusted fiscal year 2005-2006 baseline; and WHEREAS, the Committee also reviewed the adjusted budget for fiscal year 2012-2013 and noted improvements toward keeping up with the inflation-adjusted baseline; and WHEREAS, the Committee found that Measure S revenues are being spent consistent with the Transaction and Use Tax Ordinance; the Committee noted that even with Measure S funding it was necessary to reduce some essential service levels due to the fact that General Fund revenues remain lower than the inflation-adjusted baseline. NOW, THEREFORE, BE IT RESOLVED, the San Rafael City Council adopts the report from the Measure 'S' Committee, a copy of which is hereby attached hereto as Exhibit A and by this reference made a part hereof. I, ESTHER C. BEIRNE, 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 18th day of March, 2013, by the following vote, to wit: AYES: COUNCIL MEMBERS: Colin, Connolly, Heller, McCullough & Mayor Phillips NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 1 z 974E�i.A 'e- . Zt RKe ESTHER C. BEIRNE, City Clerk W:`.Management Services- WorkFile\Finance- WorkFileOCouncil Material\Resolutions\2013\Measure S comm 11-12 final reso.doc Measure "C" Oversight Committee City of San Rafael Measure S Oversight Committee Report March 4, 2013 The City of San Rafael Measure S Oversight Committee (the Committee) reviewed both the revised budget for the city of San Rafael fiscal year beginning on July 1, 2012 and the actual final figures for the previous fiscal year ending June 30, 2012. The Committee paid particular attention to the actual and budgeted expenditures for the Public Works Department, the Fire Department and the Police Department which are considered the core of the "essential services" contemplated under Measure S. Comparing the actual General Fund expenditures for the fiscal year July 1, 2011-2012 and the revised budgeted expenditures for the fiscal year July 1, 2012 - 2013 to the inflation adjusted 2005 - 2006 baseline year, the Committee finds the following: Actual 11/12 vs base Budget 12/13 vs base Fire Department +1% -2.3% Police Department -1.7% +2% Public Works -6.6% -2% The Committee finds that the expenditures for two of the the three "essential services" departments, Police and Fire, are close to keeping up with the inflation adjusted 2005-2006 baseline year total expenditures for these departments. The expenditures for Public Works, which were substantially below this level in several prior years, have increased in fiscal year 2012-2013 to where they are now also close to keeping up with the inflation adjusted baseline year numbers. By this metric, Measure S funds are being properly allocated. Nonetheless, due to operating cost increases beyond inflation, and shortfalls in all sources of city general fund revenues, including the Measure S Transaction and Use Tax, it has not been, and will not be, possible to maintain the level of the 2005-2006 baseline year "essential services" that are provided by these departments, despite increased efficiencies. There has been an aggregate headcount decrease in the three "essential service" departments compared to the baseline year of approximately 15% for fiscal year 2011 - 2012, and 15.7% for fiscal year 2012 -2013. However, the comparative decline in revenues and services appears to have stopped as of fiscal year 2012-2013. Total General Fund revenue decreased by 1.5% from 2010-2011 to 2011-2012, even though the City was drawing down reserve funds in 2011-2012. Total General Fund revenue is projected to increase from 2011-2012 to 2012-2013 by 4%, without reserves being drawn down. Budgeted expenditures for the Fire and Police Departments have stabilized, and those for Public Works have been restored to near the inflation adjusted baseline year numbers. Respectfully submitted: Lisa Goldstein Fait, Chair 1ickie Hatos, Vice -C air Jackie Schmidt, Committee member Lar Luckham, Co ittee Member Gladys Gilliland, Committee Member Cliff Samantha Sargent, Comuittee Mefnber