The URL can be used to link to this page

Home My WebLink AboutFin Measure S Report FY2011-12Agenda Item No: 3. g Meeting Date: March 18, 2013 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: FINANCE DEPARTMENT Prepared by: Mark Moses City Manager Interim Finance Director SUBJECT: RESOLUTION ADOPTING THE MEASURE S COMMITTEE REPORT COVERING THE ACTUAL FISCAL YEAR 2011-2012 GENERAL FUND RESULTS RECOMMENDATION: ADOPT RESOLUTION BACKGROUND: In the years leading up to fiscal year 2005-2006, the City faced serious structural budget imbalances. In November 2005, the citizens of San Rafael approved a 0.50 percent transactions and use tax. The transactions and use tax (Measure S) has provided much needed relief to preserve essential services in the face of eroding revenues. One of the requirements of the ordinance is an independent citizen's oversight committee, whose purpose is to review the collection and expenditure of tax revenues each fiscal year to verifi that these revenues are only spent on local municipal services as specified by the ordinance. City Council Resolution No. 11894, which sets forth the role and responsibilities of the oversight committee, establishes an annual requirement that the committee submit an annual report on the expenditures of Measure S tax revenues for the previous fiscal year. F-TAM'Ityll Since 2006, the Measure S Oversight Committee has maintained oversight by establishing a baseline policy and guidelines for assessing whether the revenues associated with Measure S have been used in a manner consistent with its original purpose and intent. Since implemented, the annual revenues from Measure S have ranged from $5.5 million (fiscal year 2009-2010) and $7.3 million (fiscal year 2007-2008). Fiscal year 2012-2013 projections for Measure S are currently $6.6 million, which is approximately 11.5 percent of the general fund budget. The Committee met on February 28, 2013. ), to review the actual General Fund expenditures for fiscal year 2011-2012. The Committee's written report. dated March 4, 2013, is attached to the resolution that accompanies this staff report. The Committee found that expenditures for Police File No.: Council Meeting: _ Vf,,v /a Disposition: re -so /- L, - " 0, V L9,5; -/Z) SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 and Fire in both the actual fiscal year 2011-2012 results, as well as in the fiscal year 2012-2013 revised budget are close to the inflation-adjusted 2005-2006 baseline year. It was also noted that, in the revised fiscal year budget, Public Works is closer to the inflation-adjusted baseline numbers, The Committee concluded that Measure S revenues are being spent consistent with the Transaction and Use Tax Ordinance. However, due to the decline in total General Fund revenues and some operating costs that have exceeded inflation, some essential service levels have been reduced relative to the inflation-adjusted service levels of the 2005-2006 base year. FISCAL IMPACT: There is no fiscal impact of City Council's acceptance and adoption of this report from the Measure S Oversight Committee. ACTION REQUIRED: Staff recommends that City Council accept the report and adopt the Resolution as presented. ATTACHMENTS Resolution (with Committee Report) WAN/lanagement Services- Work FileTinance- WorkFile"Council Material' Stafflkeports';2013` City 'MeasureS- Ldoc 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 ESTHER C. BEIRNE, City Clerk W: INIanagement Services- Work File".Finance- WorkFile\Council Materialiftesoiutionsi2013\Measure S comm 11-12 final reso.dcoc 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: Fire Department Police Department Public Works Actual 11/12 vs base Budget 12/13 vs base -2.3% +2% -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 • city •- 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 Jackie Schmidt, Committee member Larr uckham, Co ttee Member U Gladys Gilliland, Committee Member Samantha Sargent, Committee MeInber CITY OF SAN RAFAEL A 0 a M 0 j INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM No. 3.g DATE OF MEETING: March 18, 2013 FROM: Mark Moses DEPARTMENT: Finance DATE: 3/5/2013 TITLE OF DOCUMENT: 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 Department Head (signature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: City Manager (signature) NOT APPROVED I V: a 8101 V APPROVED AS TO FORM: City Attorney (signature)