Sales Tax Citizens' Oversight Committee

MINUTES OF NOVEMBER 18, 2015 MEETING OF THE SALES TAX CITIZENS OVERSIGHT COMMITTEE Chair Costa called the Regular Meeting to order at Town Hall Council Chambers, 300 Tamalpais Drive, Corte Madera, CA on November 18, 2015 at 4:05 p.m. 1. CALL TO ORDER, ROLL CALL Committee members Present: Chair Costa, Vice Chair Flahive and Committee members Gerbosi, Greenbaum and Howard Committee members Absent: None Staff Present: Town Manager/Town Engineer David Bracken Director of Administrative Services/Town Treasurer George T. Warman, Jr. Town Clerk/Assistant to the Town Manager Rebecca Vaughn SALUTE TO THE FLAG: Chair Costa led in the Pledge of Allegiance. 2. OPEN TIME FOR PUBLIC REGARDING NON-AGENDA ITEMS - None 3. GENERAL BUSINESS A. DISCUSSION AND POSSIBLE ACTION TO APPROVE THE FISCAL YEAR 2013- 2014 AND FISCAL YEAR 2014-2015 REPORTS ON THE REVENUE AND EXPENDITURES OF THE TRANSACTIONS AND USE TAX The Committee will review the draft annual reports provided and either approve or provide direction to staff regarding updates to the proposed report. Attachments: 3.A.1 Proposed Report for Fiscal Year 2013-2014 3.A.2 Proposed Report for Fiscal Year 2014-2015 Town Manager Bracken explained that Item 3A refers to a Transactions and Use Tax and Item B refers to Sales Tax Override, however these items are one and the same. The Committee proceeded to review the draft annual reports. Committee member Greenbaum noted that there was a typographical error in the opening balance in Attachment A was incorrect and requested that the full name of the committee, Sales Tax Citizens Oversight Committee and the Chair’s name be added to both reports. Another question was asked pertaining to the implementation fee and asked if an explanation could be added to the report. Town Manager Bracken replied that the expense Sales Tax Citizens Oversight Committee Minutes 2 November 18, 2015 was related to set up / administrative cost paid to the State Board of Equalization and that would be noted in the report. Chair Costa asked if the memos were to be authored by the Committee. Town Manager Bracken replied that the memos were drafts for the Committee’s consideration and the Committee could edit them as needed or rewrite if desired. The first reports are simple because there were no expenditures to note. Committee member Gerbosi has a question about the previously noted typographical error. She added up the four cases of income received from the State of California and the total was $700,671.19, but one of those payments was noted in the second year so she wondered why this payment received 9/26/14 was included in both years’ reports, making it appear that we received the reports twice. Administrative Services Director Warman indicated that the payment has two fiscal years on it. The payment that comes in September is reconciliation through June of the prior year and includes an advance for the next year. It is posted on an accrual basis, not a cash basis. Mr. Warman ran a tape of the transactions and returned to explain the reconciliation transactions to the committee. Every three months there is a reconciliation payment and an advance, and he presented a summary that he prepared for both fiscal years 2013-14 and 2014-15 in order to better explain the reconciliation process. The State Board of Equalization is always three months behind. The Board advances the amount of money they believe you will receive in a particular quarter and then adds to, or takes back money as needed in the next quarter’s allocation. Mr. Warman will send out an expenditure report to the group every week in which sales tax override money is spent. Committee member Gerbosi asked if there is a reason why the amounts vary so much, and is there a seasonality to the amount of sales tax revenue received. Town Manager Bracken replied that it is based on sales and there is a seasonality to the sales tax revenue received, and tends to be higher during the holiday season. Committee member Howard asked Mr. Warman how much revenue is anticipated annually. Mr. Warman replied that the Town anticipates receiving between $2.5 million and $3 million annually. Committee member Gerbosi asked if the Committee wished to entertain a motion to approve the reports as amended. MOTION: Moved by Gerbosi, seconded by Greenbaum, and approved unanimously by the following vote: 5-0 (Ayes: Gerbosi, Greenbaum, Howard, Flahive, Costa; Noes: None). To Approve the Annual Expenditure Report for Fiscal Year 2013-14 as Sales Tax Citizens Oversight Committee Minutes 3 November 18, 2015 amended to correct the dollar amounts for the beginning balance, add brief description that the expenditure was to cover the implementation fee, and to spell out both the Committee Chair’s name and the name of the committee. MOTION: Moved by Gerbosi, seconded by Howard, and approved unanimously by the following vote: 5-0 (Ayes: Gerbosi, Greenbaum, Howard, Flahive, Costa; Noes: None). To Approve the Annual Expenditure Report for Fiscal Year 2014-15 as amended to spell out both the Committee Chair’s name and the name of the committee. B. DISCUSSION OF THE FISCAL YEARS 2015-2016 AND 2016-2017 APPROVED CAPITAL PROJECTS, STUDIES, AND DEFERRED EQUIPMENT AND MACHINERY REPLACEMENT BUDGET FUNDED FROM CORTE MADERA SALES TAX OVERRIDE The Committee will review and discuss Attachment 4 from the Approved Capital Projects Budget. Attachments: 3.B.1 Attachment 4 from the Approved Capital Projects Budget Chair Costa asked for comments from the Committee members. Committee member Greenbaum asked questions about specific projects. First, Accessibility of Streets and how required it is, for example Corte Madera Avenue Path. Town Manager Bracken explained that it is a pathway off the street and is dilapidated, and could potentially be a liability issue. It starts a little after the shops and continues to the 400 block. Second, she inquired about Complete Streets. Mr. Bracken explained that it is a project for bicycles, pedestrians and vehicles. If we receive an Active Transportation Grant we will be required to provide matching funds, the amount for this line item is not the project cost, just the matching portion. Ms. Greenbaum asked if this was tied into another project listed as Paradise Drive Bicycle Extension? Mr. Bracken stated that this was a separate project, that would build a Class 1 path on the east side of town up Paradise Drive to Marin Country Day School. Committee member Howard asked a question about the original intent of Measure B. Senior and Youth Programs and Disaster Preparedness Programs both appear to be underrepresented in this budget. He recognizes that there are still several years to go, but he would like to get staff thinking about how to allocate more money to those particular Sales Tax Citizens Oversight Committee Minutes 4 November 18, 2015 items. Councilmember Bailey spoke to the Committee in response and stated that he would recommend that the Committee Chair attend the next Town Council meeting and report on the Committee’s activities, present the annual reports and make these recommendations for future consideration. Chair Costa stated that his goal in communicating the Committee’s findings is to present expenditures in a chart that describes the percentage of the sales tax override allocated to each category outlined in Measure B. It was determined that the Committee would report to the Town Council at the December 15 Town Council meeting. 4. ADJOURNMENT The meeting was adjourned at 5:12 p.m. to the next Sales Tax Citizens Oversight Committee meeting tentatively scheduled for April 27, 2016 at Town Hall Council Chambers.