Sales Tax Citizens’ Oversight Committee

Agenda prepared by: City Clerk (925) 779-7009 SALES TAX CITIZENS’ OVERSIGHT COMMITTEE Antioch Council Chambers 200 “H” Street JUNE 5, 2014 7:00 P.M. ROLL CALL Committee Members: Hansel Ho, Chair Joseph O. Adebayo, Vice Chair Melvin Chappel Ralph Garrow Barbara Herendeen Salvatore Sbranti Catherine Walker Staff Liaison: Dawn Merchant, Finance Director PLEDGE OF ALLEGIANCE PUBLIC COMMENTS ITEMS: 1. Minutes from May 8, 2014 meeting Recommended Action: Motion to approve the Minutes MINUTES 2. Laws Governing Service on a City Committee and Procedures Recommended Action: Motion to receive written report from City Attorney dated May 22, 2014 and oral report STAFF REPORT 3. Review of Sales Tax Ordinance 2068-C-S, Resolution No. 2013/73 and Role and Duties of Sales Tax Citizens’ Oversight Committee Recommended Action: Motion to receive written report from City Attorney dated May 22, 2014 and oral report STAFF REPORT 4. Background information on General Fund and Measure C Budget Recommended Action: Motion to receive written report dated May 27, 2014 from Finance Director and oral report STAFF REPORT  5. Background Information on Police Department Budget and Staffing Recommended Action: Motion to receive oral report from Police Chief 6. Discussion of the type and frequency of future information to be provided to Committee from City staff Recommended Action: Motion to receive oral report from Finance Director 7. Future meeting schedule Recommended Action: Motion to establish meeting dates 8. Discussion of newspaper articles regarding Measure C No recommended action – item placed on agenda by the Committee STAFF REPORT PUBLIC COMMENTS WRITTEN/ORAL COMMUNICATIONS ADJOURNMENT Notice of Availability of Reports This agenda is a summary of the discussion items/actions proposed to be taken by the Sales Tax Citizens’ Oversight Committee. Materials provided regarding the agenda items will be available at the following website: http://www.ci.antioch.ca.us/CityGov/Agendas/default.asp or at the City of Antioch Finance Department located on the 1st floor of City Hall, 200 H Street, Antioch, CA 94509, Monday through Thursday, for inspection and copying (for a fee). Copies are also made available at the Antioch Public Library for inspection. The meetings are accessible to those with disabilities. Auxiliary aides will be made available for persons with hearing or vision disabilities upon request in advance at (925) 779-7009 or TDD (925) 779-7081. Notice of Opportunity to Address the Committee The public has the opportunity to address the Committee on each agenda item. To address the Committee, fill out a yellow Speaker Request form, available on each side of the entrance doors, and place in the Speaker Card Tray. This will enable us to call upon you to speak. Each speaker is limited to not more than 3 minutes. Comments regarding matters not on this Agenda may be addressed during the "Public Comments" section on the agenda. No one may speak more than once on an agenda item or during “Public Comments”. PLEASE TURN OFF CELL PHONES BEFORE ENTERING COUNCIL CHAMBERS.  SALES TAX CITIZENS’ OVERSIGHT COMMITTEE Regular Meeting May 8, 2014 4:00 P.M. Council Chambers ROLL CALL Present: Committee Members Joseph O. Adebayo, Melvin Chappel, Ralph Garrow Jr., Barbara Herendeen, Hansel Ho, Salvatore Sbranti and Catherine Walker Staff: Steve Duran, City Manager Dawn Merchant, Finance Director Michelle Fitzer, Human Resources/Economic Development Director Kitty Eiden, Minutes Clerk PLEDGE OF ALLEGIANCE Finance Director Merchant led Committee Members and audience in the Pledge of Allegiance. PUBLIC COMMENTS - None ITEMS 1. Committee Formation and Duties Finance Director Merchant presented the staff report dated April 30, 2014. A motion was made by Committee Member Ho and seconded by Committee Member Walker to nominate Committee Member Herendeen as Chair of the Sales Tax Citizens’ Oversight Committee. Following discussion the motion was pulled by the maker and the second to allow committee members to introduce themselves and express whether they had an interest in serving as Chair and/or Vice Chair of the Sales Tax Citizens’ Oversight Committee. Each committee member introduced themselves and gave a brief personal and professional history. The following individuals indicated they would be willing to serve as Chair or Vice Chair of the Sales Tax Citizens’ Oversight Committee:  Joseph Adebayo  Melvin Chappel  Barbara Herendeen  Hansel Ho 1 06-05-14 SALES TAX CITIZEN’S OVERSIGHT COMMITTEE Regular Meeting May 8, 2014 Page 2 of 3 Actions: 1. Motion to receive and file report On motion by Committee Member Herendeen, seconded by Committee Member Adebayo the Sales Tax Citizens’ Oversight Committee unanimously received and filed the report. 2. Motion to elect a Chair and Vice Chair of the Sales Tax Citizens’ Oversight Committee A motion by Committee Member Garrow, seconded by Committee Member Ho to appoint Committee Member Herendeen as Chair failed by the following vote: Ayes: Garrow, Herendeen, Ho Noes: Adebayo, Chappel, Sbranti, Walker On motion by Committee Member Garrow, seconded by Committee Member Herendeen the Sales Tax Citizens’ Oversight Committee appointed Committee Member Ho as Chair of the committee. The motion carried the following vote: Ayes: Adebayo, Garrow, Herendeen, Ho, Sbranti, Walker Noes: Chappel On motion by Committee Member Sbranti, seconded by Committee Member Chappel the Sales Tax Citizens’ Oversight Committee unanimously appointed Committee Member Adebayo as Vice Chair of the committee. 3. Motion to establish a meeting schedule, location and any other meeting procedures Finance Director Merchant reviewed the suggested meeting schedule for the committee. On motion by Chairperson Ho, seconded by Committee Member Chappel, the Sales Tax Citizens’ Oversight Committee unanimously approved scheduling the next oversight committee meeting for June 5, 2014 at 7:00 P.M. in Council Chambers (subject to availability). Following discussion, committee members suggested the following items be included on the agenda for discussion:  Discussion of the ordinance establishing the sales tax  Discussion of materials needed from staff SALES TAX CITIZEN’S OVERSIGHT COMMITTEE Regular Meeting May 8, 2014 Page 3 of 3  Discussion of newspaper articles regarding the number of Police Officers budgeted – Presented to Chairperson Ho from Committee Member Chappel Finance Director Merchant stated she would check with the City Clerk’s office on availability and if there was a conflict with the use of Council Chambers, she would notify Chairperson Ho. 2. Measure C Budget Information Informational report only Finance Director Merchant presented the staff report dated April 29, 2014 and March 13, 2014. City Manager Duran stated the Chief Cantando would be scheduled for the next committee meeting to answer questions regarding the Police Department budget. PUBLIC COMMENTS Mayor Harper welcomed the new Sales Tax Citizens’ Oversight Committee members and thanked them for their service. WRITTEN/ORAL COMMUNICATIONS City Manager Duran stated the agenda for the next meeting would include the following:  Discussion of the Sales Tax Ordinance  Discussion of budget materials needed from staff  Discussion of the schedule for future meetings  Discussion of newspaper articles regarding the number of Police Officers budgeted – Presented to Chairperson Ho from Committee Member Chappel He noted if Committee Members wanted to add to the agenda, they could direct those requests through Chairperson Ho. He stated they would send out a draft agenda in advance and any questions could be directed to staff, prior to the posting of the agenda. ADJOURNMENT On motion by Committee Member Adebayo, seconded by Committee Member Herendeen the committee unanimously adjourned the meeting at 5:41 P.M. Respectfully submitted: Kitty Eiden KITTY EIDEN, Minutes Clerk REPORT TO THE SALES TAX CITIZENS’ OVERSIGHT COMMITTEE FOR THE JUNE 5, 2014 MEETING Prepared By: Dawn Merchant, Finance Director Date: May 27, 2014 Subject: Background Information on General Fund and Measure C Budget DISCUSSION At the May 8th Oversight Committee meeting, General Fund and Measure C budget information was provided. Since that time, proposed budget figures have been revised and incorporated into the draft budget document being prepared to be presented to the City Council on June 10th. The purpose of this report is to provide the most current budget information to the Committee that is included in the draft budget document. Chart A below shows the Police Department Measure C funding. Measure C revenues are being added on top of General Fund resources to determine the total budget allotment to the Police Department. Since the prior Oversight Committee meeting, the Police Department figures have been updated to reflect the addition of funding for one CSO position; the addition of funding for the change of a Senior Administrative Assistant to an Administrative Analyst; and the purchase of three police patrol vehicles. CHART A Police Department Measure C Funding Police Police Budget Police Budget Budget FY15 FY16 FY17 13/14 Baseline Budget $28,447,271 $28,447,271 $28,447,271 Measure C projection 4,300,847 4,417,590 4,592,090 Measure C carryover 500,000 1,201,204 0 Budget Allotment 33,248,118 34,066,065 33,039,361 Proposed/projected 32,046,914 34,066,065 37,473,317 Difference under/(over) budget $1,201,204 $0 ($4,433,956) In summary, the proposed Fiscal year 2014-15 budget includes funding for 97 sworn positions (which is 15 more sworn positions from the 82 on staff prior to the November 2013 election) and 2.5 additional non-sworn positions. The budget for fiscal year 2015- 16 reflects 100 sworn and the budget for fiscal year 2016-17 reflects 104 sworn positions. It is important to note that the ultimate staffing mix will be determined by the Chief of Police. For example, the Chief could decide that the Department should hire a Community Service Officer (“CSO”) in lieu of a sworn officer. 1 #4 ______ 6-5-14 Fiscal years 2015-16 and 2016-17 are not being adopted and are only projections at this point. These projections will be re-evaluated next year as we see how actual Measure C revenues are tracking. Police Department expenditures will first be applied to General Fund non-Measure C resources and any additional budget savings incurred from the total proposed Police Department budget ($32,046,914) will be considered Measure C savings to be allocated to the following year budget as well, however, savings will not be determined until the fiscal year closes. For Code Enforcement, a total of $188,900 in Measure C funds is proposed to be allocated in fiscal year 2014-15. The funds are being used to hire one additional contract Code Enforcement Officer (CEO); purchase of a vehicle and equipment for that CEO to use; as well as 20% of staff time of the Deputy Director of Community Development which will be dedicated to code enforcement. Chart B below provides a summary of the entire General Fund with the amount of Measure C revenue and expenditures highlighted that are being dedicated to Police and Code Enforcement Services. CHART B General Fund Summary June 30, June 30, June 30, June 30, 2014 2015 2016 2017 Projected Fund Balance July 1, $10,109,883 $8,423,257 $8,426,171 $7,615,575 Revenues: Taxes 28,382,304 29,659,478 30,526,663 31,463,673 Taxes – Measure C 500,000 4,489,747 4,579,540 4,762,722 Licenses & Permits 1,161,006 1,157,500 1,157,500 1,177,500 Fines & Penalties 45,419 35,100 35,100 40,000 Investment Income & Rentals 495,415 498,510 503,410 512,680 Revenue from Other Agencies 349,218 452,000 532,000 580,476 Current Service Charges 1,969,428 2,146,880 2,160,148 2,167,215 Other Revenue 871,312 845,695 865,695 625,695 Transfers In 3,734,473 3,761,471 3,783,898 3,839,376 Total Revenues $37,508,575 $43,046,381 $44,143,954 $45,169,337 Expenditures: Legislative & Administrative 1,120,731 654,975 652,686 651,972 Finance 36,964 38,700 43,180 38,213 Nondepartmental 586,361 426,257 518,780 543,875 Public Works 6,002,976 6,208,234 6,295,178 6,418,049 Police Services 27,956,371 27,925,706 27,900,169 32,317,712 Police Services – Measure C 0 3,599,643 5,618,794 4,592,090 Police Services – Animal Support 490,900 521,565 547,102 563,515 Recreation/Community Services 799,390 830,040 847,896 873,333 Community Development 2,201,508 2,649,447 2,368,815 2,374,973 Code Enforcement – Measure C 0 188,900 161,950 170,632 Total Expenditures $39,195,201 $43,043,467 $44,954,550 $48,544,364 Net (1,686,626) $2,914 ($810,596) ($3,375,027) Projected Fund Balance June 30, $8,423,257 $8,426,171 $7,615,575 $4,240,548 Committed for Police Services –Measure C 500,000 1,201,204 0 0 Committed for Compensated Absences 98,586 115,000 115,000 115,000 Committed for Litigation Reserve 500,000 500,000 500,000 500,000 2  Unassigned Reserve % 19.53% 15.36% 15.86% 8.03% As you can see, we are estimating an amount of Measure C revenues that relate to the April through June 2014 collection period. City staff has met with our sales tax consultants and they are unable to give us an estimate of what the amount will be since we have not started receiving any of the funds and therefore they are not able to collect any data from the State yet. Therefore, we have estimated a conservative amount to be received and therefore are reflecting this amount as a commitment of fund balance to be added to the Measure C budget in fiscal year 2014-15. Another $50,902 is reflected in the City’s vehicle fund for two pending purchases of Police vehicles that City Council authorized the use of Measure C funds at the May 13, 2014 budget study session. Chart C below is a summary of the Police Department budget as a whole. CHART C Police Department Budget 2013-14 2013-14 2014-15 2015-16 2016-17 Budget Revised Proposed Projected Projected SOURCE OF FUNDS: Sales Tax - Measure C $0 $500,000 $4,300,847 $4,417,590 $4,592,090 P.O.S.T. Funds 12,000 12,000 12,000 12,000 12,000 Federal Grant 340,761 136,450 240,000 320,000 368,476 Revenue - AB109 Reimbursement 130,000 130,500 130,000 130,000 130,000 Other Service Charges 15,040 22,120 15,000 15,000 15,000 Police Services General 45,000 40,000 45,000 45,000 45,000 False Alarm Permit Fees 25,000 37,500 30,000 30,000 30,000 False Alarm Response 24,000 24,378 24,000 24,000 24,000 Miscellaneous Revenue 25,748 39,199 2,000 2,000 2,000 Donations 0 286 0 0 0 Booking Fee Reimbursements 5,000 5,000 5,000 5,000 5,000 Sales Tax Public Safety 460,000 500,000 500,000 500,000 500,000 Non-Traffic Fines 25,000 119 100 100 5,000 Vehicle Code Fines 25,000 45,300 35,000 35,000 35,000 Abatement Fees 0 100 0 0 0 Police Services 911-Brentwood 762,016 762,016 777,822 824,492 873,961 Transfers in 754,686 753,721 676,000 720,000 768,000 Total Source of Funds 2,649,251 3,008,689 6,792,769 7,080,182 7,405,527 USE OF FUNDS: Personnel 23,244,069 22,614,771 25,645,180 27,679,943 30,896,150 Services & Supplies 3,252,572 3,145,982 3,497,309 3,432,495 3,480,007 Transfers Out 588,373 509,600 540,467 566,208 582,417 Internal Services 2,144,682 2,176,918 2,363,958 2,387,419 2,514,743 Total Use of Funds 29,229,696 28,447,271 32,046,914 34,066,065 37,473,317 3 Finally, updated multi-year projections for the General Fund as a whole are presented in Chart D. 4  CHART D General Fund Projections 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Beginning Fund Balance $10,109,883 $8,423,257 8,426,171 $7,615,575 $4,240,548 $1,182,213 ($1,524,178) ($3,840,832) ($5,727,260) Total Revenues 37,508,575 43,046,381 44,143,954 45,169,337 47,427,804 49,799,194 52,289,154 54,903,612 57,648,793 Total Expenditures 39,195,201 43,043,467 44,954,550 48,544,364 50,486,139 52,505,585 54,605,808 56,790,040 59,061,642 Surplus/(Deficit) (1,686,626) 2,914 (810,596) (3,375,027) (3,058,335) (2,706,391) (2,316,654) (1,886,428) (1,412,849) Ending Fund Balance $8,423,257 $8,426,171 $7,615,575 $4,240,548 $1,182,213 ($1,524,178) ($3,840,832) ($5,727,260) ($7,140,109) Committed 1,098,586 1,816,204 615,000 615,000 615,000 0 0 0 0 Unassigned Fund Balance $7,324,671 $6,609,967 $7,000,575 $3,625,548 $567,213 ($1,524,178) ($3,840,832) ($5,727,260) ($7,140,109) Recommended minimum unassigned fund balance* $6,532,533 $7,173,911 $7,492,425 $8,090,727 $8,414,357 $8,750,931 $9,100,968 $9,465,007 $9,843,607 over/(under) $792,138 ($563,944) ($491,850) ($4,465,179) ($7,847,143) ($10,275,109) ($12,941,800) ($15,192,267) ($16,983,716) *The Government Finance Officers Association recommends cities maintain unassigned fund balance/reserves equal to at least two months of operating expenditures. 4 ITEM # 8 P. 1 ITEM # 8 P. 2 ITEM # 8 P. 3 ITEM # 8 P. 4 ITEM #8 P. 5