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Home My WebLink AboutVATOC 2024-02-06 Minutes1 VOTER-APPROVED TAX OVERSIGHT COMMITTEE FEBRUARY 6, 2024 AT 5:30PM REGULAR MEETING COMMUNITY DEVELOPMENT LARGE CONFERENCE ROOM CITY HALL 3RD FLOOR 1400 FIFTH AVENUE SAN RAFAEL, CALIFORNIA MEETING MINUTES SWEARING IN CEREMONY – 5:30pm • City Clerk Lindsay Lara conducted the swearing-in of new Committee member Carsten Andersen. CALL TO ORDER – 5:35pm • Roll Call Members Present: Chuck Freide (Chair), Tracey Broadman (Vice Chair), Carsten Andersen, Caleb McWaters, Stephen Roth Staff Present: Paul Navazio, Shanw Plate, Van Bach, Catherine Quffa, Micah Hinkle, Lindsay Lara MINUTES 1. Approve regular meeting minutes from meeting of September 7, 2023. It was moved (Broadman) and seconded (Roth) to approve the minutes from the meeting of September 7, 2023. The motion to approve the minutes was passed by the following vote: Ayes: Andersen, Broadman, Friede, McWaters, Roth Noes: None Abstain: None MEETING OPEN TO THE PUBLIC 2. Introductions / Awards / Recognitions / Presentations None 3. Public Comment from the audience regarding items not listed on the agenda. None MATTERS BEFORE THE COMMITTEE If necessary to assure completion of the following items, the Chairperson may establish time limits for the presentations by individual speakers. 4. Presentation of Audited Financials from FY 2022-23 • Staff presented a report which included the audited revenue and expenditure results for the 2 fiscal year ending June 30, 2024. Staff noted that there were no changes to report between the unaudited results presented to the Committee in September. • Staff also reviewed supplemental information that had been requested by the Committee based on their review of unaudited financial results presented at the meeting of September 7, 2023. This included the addition of current year budget information to the presentation of financial results as well as providing supplemental reports reflecting staffing positions budgeted within each of the funds supported by voter-approved tax measures, and a detailed transaction report reflecting the expenditures, by account code, within each of the same funds. • Information was also provided to the Committee in response to questions related to the number of Cannabis licenses that had been approved by the City Council within the framework of the Cannabis Licensing Ordinance. Currently of the 23 total Cannabis licenses authorized by the City Council there are 13 active licensed business operating in San Rafael • Committee members inquired about specific funding allocations and transactions, including: Measure D – Library Tax • Commissioner McWaters - Explanation of staffing levels within the Library and the allocation between the General Fund and the Library Parcel Tax. • Chari Friede - Balance of Measure C funds (pre-dating Measure D); restricted to use for capital improvements. • Commissioner McWaters – noting the retirement costs (MCERA) as a percentage of salaries; results from contribution rates paid by the City which includes accelerated amortization of unfunded liabilities (through 2031). Measure G – Cannabis Industry Tax • Chair Freide – Inquired about timing of the payment of the Cannabis Industry Tax; noting actual-to-budget results in historical financial data. Staff responded that the tax (as a % of gross receipts) is remitted on a quarterly basis. • Director Hinkle shared some insights into some of the challenges faced by cannabis businesses (compared to non-cannabis businesses) due to the regulatory framework within which they operate (i.e. access to capital, banking, insurance, leasing vehicles, etc.). Measure E – Transaction and Use Tax (0.75%) • Chair Freide – inquired as to whether the debt service on the bonds supported by Measure E is fixed. Staff noted that the amortization schedule for the debt increases slightly over time. • Chair Freide – interested in the authorized use for fund balance within the Measure E – Essential Facilities fund (revenue collected in excess of debt service). The funding is available to fund capital improvements to essential facilities on a pay-as-you-go basis; initially to complete projects identified in Phase 1 of the Essential Facilities master plan. • Commissioner McWaters – interested in project costs incurred for construction management and scheduling services; inquired whether these are general project costs 3 incorporated in project budgets or more related to management of change orders. Interested in whether project management and scheduling service costs can be minimized on future projects. Measure R – Transaction and Use Tax (0.25%) • Director Navazio explained why the financial information presented is limited to revenues collected. As a general purpose tax this is considered general fund revenues; approved for 9-year term, through 2031 – coinciding with amortization to City’s unfunded MCERA pension liability. At the conclusion of the discussion regarding the financial information presented relative to the voter-approved tax measures under the purview of the Committee, the informational report was accepted without formal action (none required). 5. Presentation and Approval of Annual Report Following the discussion of the audited financial results and supplementary information, the Committee reviewed the draft Annual Report prepared by staff. • Chair Freide indicated an interest in potentially expanding the scope of the Committee to include the Paramedic Tax, and whether this interest, if supported by the Committee members, belongs in the Annual Report to the City Council. Director Navazio suggested that this could be included in the cover memo (staff report) that accompanies the Committee’s Annual Report to the City Council. • Commissioner McWaters noted that the draft Annual Report appears fairly “cut and dry” and asked whether there is additional information that could or should be included. The Committee considered this comment in relation to the specific requirements outlined in the Committee’s charter. Chair Freide commented that he believes that the Annual Report, as drafted, adequately satisfies the requirements of the charter and did not feel edits or revisions were necessary. It was moved (Broadman) and seconded (Roth) to approve the draft report, as presented, and authorize the forwarding of the Annual Report to the City Council. The motion to approve the report was passed by the following vote: Ayes: Andersen, Broadman, Friede, McWaters, Roth Nayes: None Abstain; None STAFF COMMENTS 6. Schedule of upcoming meetings and events of interest • There was discussion of potential dates (Sept/Oct) for the next meeting of the Committee. No specific date was set. • Director Navazio extended offer for any Committee member to meet with staff prior to next meeting should there be interest in a general discussion of one or more of the voter- approved tax measures under the purview of the Committee. ADJOURNMENT The meeting was adjourned at 6:10 pm. 4 Notice Any records relating to an agenda item, received by a majority or more of the Committee less than 72 hours before the meeting, shall be available for inspection in online. Sign Language interpreters and assistive listening devices may be requested by calling (415) 485-3066 (voice), emailing Lindsay.lara@cityofsanrafael.org or using the California Telecommunications Relay Service by dialing “711”, at least 72 hours in advance of the meeting. Copies of documents are available in accessible formats upon request. Public transportation is available through Golden Gate Transit, Line 22 or 23. Paratransit is available by calling Whistlestop. Wheels at (415) 454-0964. To allow individuals with environmental illness or multiple chemical sensitivity to attend the meeting/hearing, individuals are requested to refrain from wearing scented products.