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HomeMy WebLinkAboutAgenda Report - December 7, 2022 C-19CITY OF AGENDA ITEM C _ +fir :s 0 CALIFORNIA COUNCIL COMMUNICATION AGENDA TITLE: Adopt Resolution Accepting the Fiscal Year 2020/21 Measure L Citizen's Oversight Committee Annual Accountability Report and Accepting the Committee's Recommendation to Create a One Page Flyer to Promote the Successes of Measure L MEETING DATE: December 7, 2022 PREPARED BY: Deputy City Manager RECOMMENDED ACTION: Adopt resolution accepting the Fiscal Year 2020-21 Measure L Citizen's Oversight Committee Annual Accountability Report and accepting the Committee's recommendation to create a one page flyer to promote the successes of Measure L BACKGROUND INFORMATION: Lodi Municipal Code Section 3.30.140 requires the City Council to cause preparation of an Annual Accountability report for expenditures of Measure L tax revenues received. The report is required to include the following: a. The amount of revenue collected; b. The amount and general purpose of expenditures made from this revenue by category LMC Section 3.30.150 (A) establishes the Measure L Citizens' Oversight Committee and charges the Committee to "have the duty and responsibility to review the annual accountability report and report its findings to the City Council and the citizens of the City." The initial draft of the attached report was presented to the Committee at its meeting on October 18, 2021. A revised draft was presented to the Committee at its meeting on January 24, 2022. At that meeting, the Committee recommended the report to the City Council for the Council's acceptance at a future meeting. Additionally, the Committee recommended the City Council approve creation of a one page bill insert to communicate to the citizens of Lodi the successes of the Measure L program in Fiscal Year 2020/21. FISCAL IMPACT There is no fiscal impact from accepting the Annual Accountability Report or preparing the one page flyer. Total cost for printing the flyer for every utility account are anticipated to be less than $4,000. Mailing costs for one page inserts are included within the existing cost of mailing utility bills. FUNDING AVAILABLE: Funding for production of the one page flyer is included in the Fiscal Year 2021/22 budget. APPROVED: sir INo xa,2axza�s�.asr� Stephen Schwabauer, City Manager Andrew Keys Deputy City Manager/Internal Services Director DRAFT Measure L F I SCAL YEAR 2021/2022 ANNUAL ACCOUNTABILITY REPORT Measure L Citizen's Oversight Committee Members District 1 -Gary Woehl District 2 - Terence Spring District 3 - Vacant District 4 - Wagas Dad District 5 - Elisa Bubak Measure L was passed by the voters in , Lodi in November of 2018. The text printed on the ballot for Measure L was ' as follows: To make neighborhoods safer, maintain/improve essential City of Lodi services including. reducing crime; maintaining neighborhood police patrol/gang violence intervention/prevention; fixing potholes/city streets, maintaining neighborhood fire stations, enhancing rapid police/fire response times by restoring firefighter and adding police positions; maintaining recreation facilities/programs; and other general fund purposes, shall the City of Lodi measure enacting an ongoing half cent local sales tax providing $5,400,000 annually, with independent citizen oversight, and funds spent locally. Lodi Municipal Code 3.30.140 requires that the City Council cause the preparation of an annual accountability report (the "Report") to be reviewed by the Measure L Citizens' Oversight Committee. The Committee is responsible to review the Report and present findings to the City Council. This report represents information for Fiscal Year 2021/2022. Expenditures for the report period include those for fire, police, library, streets and capital. Fiscal Year 2021/22 Measure L Revenue Coming out of the government mandated restriction phase of the COVID-19 pandemic, Fiscal Year 2021/2022 saw significant economic growth. The strong demand for consumer goods, including auto sales, home improvement and general consumer goods continued. The latter half of the fiscal year saw inflationary price increases to an ex- tent not seen in nearly four decades. From a tax revenue standpoint, any decrease in demand was offset by price increases paid by consumers so that the upward trend of Measure L revenue continued. For the year, revenue again exceeded expectations as the initial budget projection was for $7.7 million, the mid -year projection was in- creased to $7.98 million and the final total for Fiscal Year 2021/2022 exceeded both at $9.2 million. The City's di- verse base of mainstream retailers and strong consumer demand continued to support Measure L in Fiscal Year 2021/2022. AB 147, which took effect April 1, 2019, required online retailers selling in excess of $500,000 of goods annually to register and pay sales tax. As a Transaction and Use tax, all goods ordered online and delivered to Lodi are subject to the half -cent Measure L tax with 100% of that tax revenue going to the City of Lodi. As online sales increase, this legislation continues to have a significant impact on revenues. Additionally, Measure L received $5,670 in reim- bursement from the ARPA program for COVID leave balances used by Police and Fire staff funded by Measure L. Total Measure L revenue for Fiscal Year 2021/2022 totaled $9,176,719. i - Table 1: Fiscal Year 2021/2022 Measure L Expenditures by Category Beginning Fund Balance at July 1, 2021* 1,640,214 Revenue 9,176,719 Public Safety Salary and Benefits 7,033,533 PERS Unfunded Liability - Supplies and Services 1,D63,553 Parks Support 765,547 Library Support 199,917 Total Expenditures 9,061,550 Revenue Less Expenditures 115,169 Fund Balance at lune 30, 2022 1,755,383 16% Reserve 1,468,275 Unreserved fund balance lune 30, 2022 287,108 * Fiscal Year1010/2021 ending fund balance was reported as $I,477,401, which was a net of $I62,813 in open encumbrances attune 30, 2021. All of those encumbrances were subsequently released leaving aJuly 1, 2022, Fiscal Year 2021/2022 opening fund balance of $1,640,214 as shown. 0.009 Fiscal Year 2021/2022 Measure L Fxpenditures by Category 2.20',0 MeausreL fundsarenor used to pay unfunded tension costs accrued from priar years'service RAFT Pubir Safety Salary and Benefits 77.6296 PERS Unfunded Liability • 0%, . Suppi es and Services 11.7430 Parks Support 8.4530 . Library Support 2.20130 DRAFT 11111 -1 - Table 1 on the previous page shows revenues and expenditures and summarizes the Measure L fund balance as of June 30, 2022. Also included is a chart of expenditures by Category. The chart shows that nearly 78% of the Measure L resources were spent on Public Safety salary and benefits. Note that no Measure L funds are used toward PERS unfunded liability. Fiscal Year 2021/2022 Expenditures by Service Type • Poke 55.20% . Fire 33.55% . Parks8.45% • Library 2.20% . hlis eltaneeus0.60% Table 2: Fiscal Year 2021/2022 Measure L Expenditures by Service Type Police 55.20% 5,002,413 Fire 33.55% 3,040,037 Parks 8.45% 765,547 Library 2.20% 192,,917 Miscellaneous 0.60% 54,631 7atai 9,061,550 Table 2 represents the expenditures by Service Type. Police expenditures totaled 55.2%; Fire 33.55%; Parks 8.45%; Library 2.2% and Miscellaneous 0.6%. For Fiscal Year 2021/2022, Parks and Library received a signifi- cant increase to support their operations. Parks support of capital increased from $80,000 to $400,000 while support for operations increased by $342,370. Library operations support increased by $113,920. "FD RAFT Fiscal Year 2021/2022 Measure L Expenditure Highlights • 20 Police Officers Parks Capital - including tree trimming • 8 Firefighters Safety equipment and training to • 1 Librarian support Police and Fire operations A total of 29 full time and 6 part time positions were funded from Measure L during Fiscal Year 2021/2022. As a result of better than anticipated performance, Measure L funded all public safety overtime as well as their vehicle maintenance and fuel needs. Library was funded with a librarian as well as additional support for their operations. For Fiscal Year 2021/2022, significant gains in tree trimming were made possible with Measure L funding. Over 530 trees were trimmed at Hutchins Street Square, Henry Glaves, Salas, Lodi Lake, Legion, Blakely parks to just name a few. Prior to the approval of Measure L, the City did not have a preventative tree maintenance funding program for park trees due to insufficient resources. Measure L is doing its part to improve parks and make them safer and more available to the public. Fiscal Year 2021/2022 Fund Balance ZAFT The City's Fiscal and Budget Policies, adopted by the City Council, requires that the Measure L fund maintains a 16% fund balance requirement, similar to the requirements in the City's General Fund. For Fiscal Year 2021/2022, the 16% reserve represents $1,468,275, which is fully funded as shown on Table 1. Fund balance reserves can be used at Council's discretion for additional programming or for operation expenses should future revenue receipts fall below expectations. For the first time in 12 years, the Fiscal Year 2021/2022 budget provided an increase in General Fund support to Parks, Recreation and Cultural services and to the Lodi Public Library. Measure L is the source of the in- crease. Since Fiscal Year 2009/2010, the City has annually provided approximately $3.25 million to PRCS and $1.354 million to the Library for operational needs. Since that time, the Consumer Price Index (CPI -U) for all urban consumers had increased nearly 26%. PRCS and the Library have had to do more with less for that en- tire time. In addition to no funding increase, the City has experienced a population increase over 10% and added over 76 acres of parks. In the Fiscal Year 2021/2022 budget, PRCS received $342,370 and Library re- ceived $113,920 for much needed operational support that would have not been possible without Measure L. In addition to the operational support, Measure L provided $400,000 for Parks Capital Improvement needs. It is anticipated that this level of funding can be sustained annually as the department works toward addressing over $20 million in park improvement needs. Each annual appropriation will need to be approved by City Council in the future as part of the annual budget process. Fiscal Year 2022/2023 Budget "bRAFT im The Fiscal Year 2021/2022 Measure L Accountability Report is focused on expenditures that have already occurred. Lodi Municipal Code Section 3.30 (the "Ordinance") specifically limits the Citizens' Oversight Committee's role to the review of expenditures at the close of each fiscal year. The Committee has no role in budgeting or planning. How- ever, it is important for the public to have knowledge of the direction City leaders have planned for the use of Measure L funds. The City Council adopted the Fiscal Year 2022/2023 budget at its June 1, 2022 regular meeting. Tables 3 to 5 below provide detailed information on the proposed uses for Measure L in Fiscal Year 2022/2023. Table 3: Fiscal Year 2022/2023 Measure L Expenditures by Category Table 4: Fiscal Year 2022/2023 Measure L Expenditures by Type Category Salary and Benef _s Supplies and Services Operating Transfers Homeless,/Illegal Dumping Total Fiscal Year 202212023 Budget 7,055,610 345,520 1,679,310 31,360 9,118,800 Type Police Fire Parks Library Homeless/Illegal Dumping Total Fiscal Year 2022/2023 BudEet 4,275,400 3,429,470 1,045,250 337,320 31,360 9,118,800 Included in the expenditures in Table 4: Library Is Table 5: Fiscal Year 2022/2023 Measure L Funded Full -Time Positions receiving $233,060 for operational support, an increase of $119,140 over Fiscal Year 2021/2022, in addition to the support of a Librarian. PRCS is receiving $645,250, an increase of $302,880 over Fiscal Year 2021/2022, in addition to maintaining $400,000 for capital needs. Funded projects include $200,000 for tree trimming, $50,000 for tripping hazards at Hutchins Street Square and $50,000 for Peterson Park improvements. Positions Police Officers Firefighters* Librarian Street Maintenance Workei Tota I Fiscal Year 2022/2023 Budget 26.0 8.0 1.0 0.2 35.2 * $1.7 million in overtime is included to fully staff all stations. RESOLUTION NO. 2022-299 A RESOLUTION OF THE LODI CITY COUNCIL ACCEPTING THE RECOMMENDATION OF THE MEASURE L CITIZENS' OVERSIGHT COMMITTEE TO APPROVE THE FISCAL YEAR 2020/21 MEASURE L ANNUAL ACCOUNTABILITY REPORT AND CREATE A ONE-PAGE BILL INSERT FLYER TO PROMOTE THE SUCCESSES OF MEASURE L WHEREAS, Lodi Municipal Code Section 3.30.140 requires the City to prepare an Annual Accountability report (the "Report") for expenditures of Measure L tax revenues received; and WHEREAS, the Report is required to show the amount of revenue collected and the amount and general purpose of expenditures made; and WHEREAS, Lodi Municipal Code Section 3.30.150 (A) establishes the Measure L Citizens' Oversight Committee (the "Committee") and charges the committee with review of the report and to present its findings to the citizens of the City and the City Council; and WHEREAS, the first draft of the Report was presented to the Committee on October 18, 2021; and WHEREAS, the Committee reviewed, discussed, and provided direction to staff on modifications to the report; and WHEREAS, the second draft of the Report was presented to the Committee on January 24, 2022; and WHEREAS, the Committee found the revised report to be sufficient to meet the obligations outlined in Lodi Municipal Code Section 3.30.140 and recommended its presentation to the City Council for approval; and WHEREAS, the Committee recommended that the City Council consider a one-page flyer and bill insert to promote the successes of Measure L to Lodi citizens. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby accept the Fiscal Year 2020/21 Measure L Annual Accountability Report; and BE IT FURTHER RESOLVED that the Lodi City Council does hereby direct the City Manager to cause preparation of a one-page flyer and bill insert to communicate to the citizens of Lodi the successes of Measure L outlined in this report. Dated: December 7, 2022 ------------------------------------------------------------------------ ------------------------------------------------------------------------ I hereby certify that Resolution No. 2022-299 was passed and adopted by the City Council of the City of Lodi in a regular meeting held December 7, 2022 by the following vote: AYES: COUNCIL MEMBERS — Hothi, Khan, Kuehne, Nakanishi, and Mayor Chandler NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None OLIVIA NASHED City Clerk 2022-299