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HomeMy WebLinkAboutFin Annual Measure E TUT Oversight Committee Report____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: December 21, 2020 Disposition: Accepted report Agenda Item No: 5.d Meeting Date: December 21, 2020 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 2019-2020 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 30, 2020 (Exhibit A). SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 ANALYSIS: The Measure E Oversight Committee met virtually on November 30, 2020, to review the actual Measure E TUT revenues and expenditures for fiscal year 2019-2020. Staff reported that during the fiscal year 2019-2020, $25,828,967 of Measure E TUT proceeds were expended. Per direction from City Council given to Staff in early 2014 which was to set aside one-quarter percent provided by Measure E to begin to address the aging essential facilities, $4,060,594 was assigned to the Public Safety Facilities Fund this fiscal year. These funds were added to $25,697,971 of bond proceeds. Interest income of $599,666 and reimbursements from the County of Marin of $130,996 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 provides the Committee’s conclusions that Measure E TUT revenues received during fiscal year 2019-2020, the seventh 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. RECOMMENDED ACTION: Accept the Measure E Transactions and Use Tax Oversight Committee Report for Fiscal Year 2019-2020. ATTACHMENT: Exhibit A: Measure E Oversight Committee Report City of San Rafael Measure E Oversight Committee Report November 30, 2020 The City of San Rafael Measure E Oversight Committee met on November 30, 2020 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, 2019 to June 30, 2020 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 properl y allocated in accordance with the Measure and approved guidelines. The Committee would like to commend the City Council and the Finance and Public Works Departments for their excellent fiscal and project management during the COVID emergency, as well as all City staff who have cooperated and worked so hard under difficult circumstances. Respectfully Submitted: _Approved via email 12/1/2020 ___________________________ Jacqueline Schmidt _________________________ Larry Luckham _Approved via email 12/7/2020 ________________________ John Erdmann _Approved via email 12/8/2020 _______________________ Gladys Gilliland _Approved via email 12/7/2020 ________________________ Cyr Miller