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Home My WebLink AboutFin Measure E TUT Commitee Annual ReportSAN RAFAEL THE CITY WITH A MISSION Agenda Item No: 5.d Meeting Date: January 17, 2017 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Finance Prepared by: Mark Moses City Manager Approval: Finance Director TOPIC: ANNUAL MEASURE E TUT OVERSIGHT COMMITTEE REPORT SUBJECT: RESOLUTION ACCEPTING THE MEASURE E TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2015-2016 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 adopted the new TUT by approving 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 and to report annually to the City Council. 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 to the committee. At the meeting of January 17, 2017, a separate item addresses the reappointment of three of the members. The purpose of this report is to present and recommend acceptance of the Measure E TUT Oversight Committee report of November 15, 2016. ANALYSIS: The Measure E Oversight Committee met on November 15, 2016, to review the actual Measure E TUT revenues and expenditures for fiscal year 2015-2016. Staff reported that during fiscal year 2015-2016, $11,544,000 of Measure E TUT revenues were collected and recorded in the General Fund. Consistent with the direction provided by the City Council, $3,848,000 representing the additional one-quarter percent provided by Measure E was assigned to a Public Safety Facilities Emergency Reserve. From these funds, $51,688 was expensed and $1,849,405 FOR CITY CLERK ONLY File No.: 9-2-68 Council Meeting: 01/17/2017 Disposition: Resolution 14259 SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 was transferred to the dedicated capital project account. This resulted in a net addition of $1,946,907 to the reserve during the fiscal year, thus increasing the reserve balance from $4,389,470 as of June 30, 2015 to $6,336,377 as of June 30, 2016. 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 2015-2016, the third 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 some 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. 14259 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 2015-2016 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 November 15, 2015, the Committee reviewed the City's General Fund actual financial results for fiscal year 2015-2016 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 November 15, 2016 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, 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 Tuesday the 17th day of January, 2017, by the following vote, to wit: AYES: COUNCIL MEMBERS: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ESTHER C. BEIRNE, City Clerk WACouncil Material\Resolutions\2017\Measure E comm 15-16 report-reso.doc City of San Rafael Measure E Oversight Committee Report November 15, 2016 The City of San Rafael Measure E Oversight Committee met on November 15, 2016 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, 2015 to June 30, 2016 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: - rl t ,I /' quelinemidt �2 Larry m ohn Erdmann to. au,4 Gladys Gillif nd "r'� ' Cyr filler ROUTING SLIP / APPROVAL FORM INSTRUCTIONS: Use this cover sheet with each submittal of a staff report before approval by the City Council. Save staff report (including this cover sheet) along with all related attachments in the Team Drive (T:) --> CITY COUNCIL AGENDA ITEMS 4 AGENDA ITEM APPROVAL PROCESS 4 [DEPT - AGENDA TOPIC] Agenda Item # Date of Meeting: Click here to enter a date. From: Mark Moses Department: Finance Date: 1/4/2017 Topic: ANNUAL MEASURE E TUT OVERSIGHT COMMITTEE REPORT Subject: RESOLUTION ACCEPTING THE MEASURE E TRANSACTIONS AND USE TAX OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2015- 2016 Type: ® Resolution ❑ Ordinance ❑ Professional Services Agreement ❑ Other: Staff Report APPROVALS ® Finance Director Remarks: self approved ® City Attorney Remarks: LG -Approved 1/4/2017. ® Author, review and accept City Attorney / Finance changes Remarks: Suggested edits accepted - ready for CM 1/4/2017 ® City Manager Remarks: