TITLE
Recommendation to receive and file an update on Fiscal Year 2018 Measure A expenditures and revenues, and confirm that the actual Measure A FY 18 expenditures conform with the intent of Resolution No. RES-16-0018 prioritizing spending on public safety and infrastructure and with the language contained in the ballot measure expressed in Resolution No. RES-16-0017.
DISCUSSION
Pursuant to the June 7, 2016 Measure A ballot initiative, on January 1, 2017, businesses
in the City of Long Beach began to collect an additional one percent in sales tax on all
tangible personal property sold at retail in the City. As part of the FY 18 Adopted Budget,
the City Council committed $47,698,200 in anticipated FY 18 Measure A revenues to fund
priority public safety maintenance and restorations, as well as capital improvement
projects to help rebuild Long Beach’s infrastructure projects, and to fund the Measure B
contribution and administration of the Measure A tax. The FY 18 budget was adjusted on
March 13, 2018 by $3.1 million to mitigate cost over runs in previously approved projects,
offset by surplus Measure A revenue from FY 17. The FY 18 budget was adjusted again
on May 22, 2018 by 1.0 million for additional parks projects, offset by higher than
projected Measure A revenues in FY 18. Projects receiving funding through budget
adjustments are denoted in Attachment A. The Citizens’ Advisory Committee (CAC)
reviewed the original and adjusted Measure A spending plan at previous meetings. This
report provides details of actual revenue received and expenditures incurred as of May
31, 2017.
As of May 31, 2018, Measure A revenues for the year were $39.1 million, and it is
anticipated that revenues at year end will be $53.1 million, or $5.4 million more than
originally budgeted. Of the $5.4 million suplus, $1.0 million was budgeted on May 22,
2018 for parks projects. The recommended uses of the remaining anticipated surplus,
along with other unallocated Measure A revenue through FY 23, has been included in the
FY 19 Proposed Budget for one-time public safety and infrastructure purposes from FY
19 through FY 23. Approximately $2.4 million of this surplus has been allocated for FY 19
uses with the remainder planned for FY 20 and beyond. Staff continues to monitor
Measure A revenues as it is challenging to project due to the timing of revenue receipts
and, as it is a relatively new revenue source, without an established history or pattern.
The charts show the current Measure A revenues and uses for FY 18, as revised by City
Council action in March and May 2018. As of May 31, 2018, $9.0 million has been
expended or moved to the Measure A subfund and $8.3 million has been encumbered,
or obligated, for ongoing and one-time public safety and infrastructure purposes. To
facilitate reporting on Measure A revenue and expense, Measure A is budgeted and
tracked in a unique subfund of the General Fund. Personnel costs, which are primarily
public safety maintenance and restorations, are budgeted in the General Fund operating
budgets of the respective departments. At year-end, expenditures and personnel costs
for public safety maintenance and restorations will reflect the budgeted levels.
Summary of FY 18 Measure A Revenue and Expenditures
As of May 31, 2018
FY 18 Adopted Structural
Portion1
One-time
Portion
Actuals as of
05/31/18
ETC as of
05/31/18
Outstanding as
of 05/31/18
Total Measure A Revenue
Estimate Net of State Board of Equalization
Fees
$ 47,698,200 $ 23,849,100 $ 23,849,100 $ 39,070,573 $ 53,107,251 $ 14,036,678
FY 18 Adjusted2 Structural
Uses
One-time Uses Actuals as of
05/31/18
Encumbrances
as of 5/31/18
Remaining as of
5/31/18
Total Uses of Measure A $ 52,070,904 $ 15,387,250 $ 36,683,654 $ 9,038,062 $ 8,389,476 $ 34,643,366
Invest in Infrastructure 30,488,654 - 30,488,654 5,207,983 8,310,430 16,970,241
Enhance and Maintain Public
Safety
20,697,721 14,647,721 6,050,000 3,769,950 66,926 16,860,844
Advanced, Maximized Police Academy 4,300,000 - 4,300,000 - - 4,300,000
Neighborhood Safe Streets 1,000,000 - 1,000,000 1,000,000
Upgrade and New Camera Technology 750,000 - 750,000 391,440 66,926 358,560
Reestablish Police's South Division 1,538,272 1,538,272 - 1,538,272
Restore Fire Engine 8 2,296,881 2,296,881 - 1,221,775 - 1,075,106
Restore Policy Academy Staffing 1,408,805 1,408,805 - - - 1,408,805
Restore Paramedic Rescue 12 1,110,176 1,110,176 - 647,603 - 462,573
Maintain Police Services 5,908,912 5,908,912 - - - 5,908,912
Maintain Fire Services 2,384,675 2,384,675 - 1,509,132 - 875,543
Contribute to Rainy Day Fund
(Measure B)
531,073 531,073 - - - 531,073
Administer Measure A Tax 353,458 208,458 145,000 60,128 12,120 281,210
1 Structural portion is available for either ongoing operations or one-time purposes.
2 FY 18 Adjusted Budget includes carryover revenue from FY 17 surplus of $3.3 million and FY 18 mid-year enhancement of $1.0 million from
aditional FY 18 revenue.
Attachment A provides an overview of the status of Measure A funds spent on projects in
FY 18. As capital projects may extend beyond one fiscal year, the list of FY 17 Measure
A projects is also included along with any funds spent or encumbered on those projects
in FY 18. Additionally, since the CAC last met, there have been a few changes to the
scope of some of the projects, which are included in Attachment B.
SUGGESTED ACTION
Approve recommendation.