HomeMy WebLinkAboutFin Measure E Annual ReportAgenda Item No: 4. f
Meeting Date: December 1, 2014
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Finance
Prepared by: Mark Moses City Manager Approval
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Finance Director
SUBJECT: RESOLUTION ACCEPTING THE MEASURE E TRANSACTIONS AND
USE TAX OVERSIGHT COMMITTEE REPORT -:FISCAL YEAR
2013-2014
RECOMMENDATION: ADOPT RESOLUTION
BACKGROUND: On August 5, 2013, the San Rafael City Council passed Ordinance 1913,
establishing a new Transactions and Use Tax (TUT) subject to voter approval. On November 5.
2013, San Rafael voters approved 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 ' ) 1. 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 704 which also set forth the roles, responsibilities and duties of the committee. The
responsibilities included the final review of Measure S TUT revenues collected during fiscal year
2013-2014 pursuant to Ordinance 1837, to ensure that monies had been expended in a manner
that is consistent with the authorized purposes of Measure S. On October 6, 2014, the City
Council appointed five members to the committee.
The purpose of this report is to present and recommend acceptance of the Measure E TUT
Oversight Committee report of November 3 ). 2014.
ANALYSIS
The Measure E Oversight Committee met on November 3, 2014, to review the following
financial information:
�-i_ _)_ FOR CITY CLERK ONLY
File No.:
Council Meeting:
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Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Actual Measure S TUT revenues for fiscal near 2013-2014, the final fiscal ear year which
this TUT was effective, prior to its termination on March 31, 2014. Staff noted that at the
time the budget was adopted, it was assumed that this TUT would be in effect for the
entire fiscal year. Staff also reported that following the Measure S TUT Oversight
Committee's final meeting on January 9. 2014, no significant changes were made in
resource allocations or actual expenditures that impacted the spending of Measure S
revenues.
2. Actual Measure E TUT revenues for fiscal vear 2013-2014, and the disposition of those
revenues. Staff reported that during fiscal year 2013-2014.
� $2.672,002 of Measure E TUT
revenues were collected and recorded in the General Fund. Consistent with the direction
provided by the City Council, $891,000', representing the additional one-quarter percent
provided by Measure E was assigned to a Public Safety Facilities Emergency Reserve.
None of these funds were expended as of June 30, 2014.
The Measure E TUT Oversight Committee's report, which is attached to the Resolution, provides
the Committee's conclusions that (1) Measure S funds were properly allocated in fiscal year
2013 -2014, the final year in which that TUT was in effect; and (2) Measure E TUT revenues
received during fiscal year 2013-2014, the first year in which that TUT was in effect, were
allocated in accordance with the requirements of Measure E.
FISCAL IMPACT: There is no fiscal impact associated with the acceptance of the Measure E
TUT Oversight Committee report.
Although there is some impact on staff time related to the development of the new, Measure E
Transactions and Use Tax Oversight Committee, as well as ing ongoing involvement for preparing
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documents, research and meeting support, this will be accommodated using essentially the same
resources as those used to support the Measure S Oversight Committee.
RECOMMENDATION: Accept report and adopt resolution.
ATTACHMENT
RESOLUTION ACCEPTING THE MEASURE E TUT OVERSIGHT COMMITTEE REPORT
RESOLUTION NO. 12I � 846
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL ACCEPTING THE MEASURE, 'E'TUT OVERSIGHT
COMMITTEE REPORT FOR FISCAL YEAR 2013-2014
WHEREAS, on November 5, 2013, the voters of San Rafael approved a Transactions and
Use Tax ("Measure E"). This measure, which became effective April 1, 2014, and amended the San
Rafael Municipal Code to establish a 0.75% retail transaction and use tax for a term of 20 years; and
WHEREAS, the enabling ordinance terminated the existing 0.50% Transactions and Use
Tax (Measure "S") as of March 31, 2014; 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 tinder the authority of this ordinance; and
WHEREAS, on November 3, 2014, the Committee met and reviewed the ( .1I
ity's General
Fund actual financial results for fiscal year 2013-2014 for Measure S revenues, and concluded in its
report that Measure S funds were appropriately allocated, thus completing the responsibilities
assumed frorn the dissolved Measure S Oversight Committee; and
WHEREAS, on November 3, 2014, the Committee also reviewed the City's (Jeneral Fund
actual financial results for fiscal year 2013-2014 for Measure E revenues, and concluded in its
report that Measure le? funds were properly allocated.
NOW, THEREFORE, BE IT RESOLVED, the Sari Rafael City Council accepts the November 3,
2014 report from the Measure 'E' Corrimittee, a copy ofwhich is hereby attached hereto as f`xhibit
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 I st day of December, 2014, by the following vote, to wit:
AYES: COUNCIL MEMBERS: Bushey, Colin, Connolly, McCullough & Mayor Phillips
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ESTHER C. BEIRNE. City Clerk
City of San Rafael
Measure E TUT Oversight Committee Report
November 3, 2014
The City of San Rafael Measure E Oversight TUT Committee met on November 3,
2014 and:
1) received a report from City of San Rafael Finance Director Mark Moses on the
receipt and expenditure of funds under the predecessor TUT Measure S during
fiscal year 2013-2014, and came to the determination that the conclusions in the
Measure S Oversight Committee's Report of Jan 9, 2014 that these funds were
properly allocated in accordance with the guidelines for Measure S funds are still
valid. This report completes the oversight work which was required of the Measure
S Committee.
2) received another report from Mark Moses on the receipt and expenditure of
funds under Measure E during fiscal year 2013-2014 (this measure was effective in
April 1, 2014), $2,672,002 in collections were received and went into the General
Fund. Of this amount, $891,000 was assigned to the Public Safety Facilities Reserve,
established for the purpose of public safety facility planning, construction and major
improvements. No monies were expended from this Reserve during fiscal year
2013-2014. This Committee finds that the Measure E revenues received during
fiscal year 2013-2014 were thus allocated in accordance with Measure E.
Respectfully submitted:
John Erdmann
Gladys Giffiland
I
Cyr --Miller
CITY OF SAN RAFAEL
114111" 1 JIMOV14- I
INSTRUCTIONS, USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT,
ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY.
- I
SRRA / SRCC AGENDA ITEM NO.
DATE OF MEETING:
December 1, 2014
FROM: Mark Moses
DEPARTMENT: Finance
f,
DATE: November 1, 2014
TITLE OF DOCUMENT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ACCEPTING THE MEASURE 'E'TUT OVERSIGHT COMMITTEE REPORT FOR FISCAL YEAR 2013-
2014
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Department Head (signature)
APPROVED AS COUNCIL / AGENCY
AGENDA ITEM:
City Manager (signature)
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APPROVED AS TO FORM:
City Attorney (signature) t