Loading...
HomeMy WebLinkAbout10.19.2022 SP Minutes @6:30 CALL TO ORDER Chair Del Rosario called the meeting to order at 6:47 p.m. ROLL CALL Committee member Brosnan, present Committee member Rey, present Committee member Zemke, present Committee member Romero (alternate), absent Vice Chair DeGuzman, present Chair Del Rosario, present AGENDA REVIEW No changes. REMOTE PUBLIC COMMENTS No public comments MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting of August 3, 2022 Motion - Chair Del Rosario/Second – Vice Chair De Guzman: To approve the Minutes from the meeting of August 3, 2022, by roll call vote: AYES Committee member Brosnan, Committee member Rey, Committee member Zemke, Vice Chair DeGuzman, Chair Del Rosario NAYS: None; ABSENT: None; ABSTAIN: None 2. Informational report on Measure W fund balance and expenditures for FY 2021-22 update and FY 2022-23 1st Quarter (Karen Chang, Director of Finance) Director of Finance Karen Chang introduced her item. Prior to beginning the presentation Director Chang invited Assistant City Attorney Alexandra “Ali” Wolf to give a brief overview of the Measure W Committee’s responsibilities. MINUTES MEETING SPECIAL MEASURE W CITIZENS’ OVERSIGHT COMMITTEE CITY OF SOUTH SAN FRANCISCO Wednesday, October 19, 2022 6:30 p.m. TELECONFERENCE MEETING This meeting is being held in accordance with the Brown Act as currently in effect under the provisions of Assembly Bill 361 which allows attendance by members of the Measure W Citizens’ Oversight Committee, City staff and the public to participate and conduct the SPECIAL MEASURE W COC MINUTES OCTOBER 19, 2022 PAGE 2 Assistant City Attorney Wolf began by stating that the oversight committee’s role is to review and report on the revenue received and expenditure funds from the Measure W tax. She stated that the Committee’s responsibility is to ensure that Measure W funds are used in alignment with the services and projects stated in the ballot measure language, but that oversight responsibility is not specific to any one project. Referencing South San Francisco Municipal code Section 4.36.140, she restated that Measure W requires City Council to appoint a Measure W Oversight Committee and that the jurisdiction of the Committee is limited to what is assigned to Measure W by city voters and by City Council and that this is established in the municipal code and the bylaws adopted by City Council which are available for review. Assistant City Attorney Wolf shared that Measure W is a general tax and that use of Measure W funds is not restricted by the examples listed in the ballot measure. She restated that funds generated from the measure may be used for any legitimate governmental purpose and that the Committee is tasked with ensuring that there is no improper use of funds, such as spending the money for a non- public purpose. She went on to explain that the Committee was created to provide an independent oversight process, however, the Committee doesn’t have a formal role in contracting, project management or any other aspect related to the use of Measure W tax revenue as explicitly stated in the bylaws for the Committee. She further explained that the Committee is not tasked with reviewing or auditing case-by-case the projects funded by Measure W. She stated that the purpose of this is to ensure that Committee members are able to distance themselves from individual projects or specific spending on individual projects and so that Committee members can look at funding of the project as a whole for a public purpose. Director Chang continued her presentation with an update on FY 2021-22 unaudited revenue and expenditures and FY 2022-23 1st Quarter preliminary revenues and expenditures. Director Chang shared that FY 2021-22 revenue is projected to be about $15.4 million and that expenditures total about $11.4 million with revenue exceeding expenditures by about $4 million. She explained that revenue for 1st Quarter FY 2022-23 is about $1.1 million because we have only received July 2022 receipts due to two-month lag in collections as explained at the last meeting. Director Chang stated that the auditors are still auditing FY 2021-22 books and that the report will be available around December. She stated that if a draft financial report is available by the next meeting it will be presented. Vice Chair DeGuzman asked if the committee will be able to meet with the auditors to which Director Chang replied that she will address this in her presentation. Continuing with her presentation, Director Chang stated that Measure W is expected to receive $13.8 million in revenue in FY 2022-23, with about $13 million in expenditures leaving a slight surplus. Director Chang then gave an overview on the three bond transactions and a summary of the projects funded by the bonds including the Police Station, LPR, Streets, Solar, Sports Field, Aquatics Center, Bridges and Playgrounds. Vice Chair DeGuzman asked for clarification on when the bonds will mature. Director Chang stated that the last payment is scheduled to coincide with the expiration of Measure W sales tax, to which Deputy Finance Director Jason Wong confirmed that the bonds will mature in 2046. SPECIAL MEASURE W COC MINUTES OCTOBER 19, 2022 PAGE 3 Vice Chair DeGuzman then asked if the properties would be the asset of the City of South San Francisco following the final payment of the bonds, to which Deputy Finance Director Wong confirmed. Director Chang concluded her presentation by addressing Vice Chair DeGuzman’s earlier request regarding meeting with the auditors. Director Chang stated that she will invite the auditors to meet with the Committee at the next meeting. Director Chang then addressed a question received by Vice Chair DeGuzman prior to the meeting related to SUTA services reflected on a revenue detail report. Director Chang explained that SUTA represents Sales and Use Tax Audit Services that the City has contracted with Muniservices/Avenu to provide sales and use tax audit services to detect incorrect point of sales distribution errors thereby generating new sales tax revenue for the City. Vice Chair DeGuzman then asked if the City has access to the State Board of Equalization to view the State or Local taxes that will be received from the State Controller’s Office. Director Chang responded that the City of South San Francisco receives a report with periodic distribution information but that it does not have the level of detail that the Consultant uses for recovery efforts. Deputy Director Wong then clarified that the Board of Equalization no longer collects sales and use taxes rather the State of California agency that collects these taxes is the California Department of Tax and Fee Administration and that the City contractor, Avenu, does have a contract with that State agency to audit all of the receipts received to provide the City with information and cross- reference what is reported to the State versus what is reported to the City. Vice Chair DeGuzman then stated the importance of getting accurate Measure W revenues. Chair Del Rosario then clarified that Vice Chair DeGuzman’s intention is to ensure that there are checks and balances so that Measure W receives all expected revenue, to which Vice Chair DeGuzman agreed. Director Chang addressed a second question from Vice Chair DeGuzman related to the FY 2021-22 annual revenue to which Director Chang stated that annual revenue will close at about $15.4 million and going back to the question related to the audit reports Director Chang stated that Finance expects to have a report by mid-December or early January and that the report will be shared when available. Addressing a final question from Vice Chair DeGuzman related to a budgeted amount presented to the committee, Director Chang clarified that staff creates an estimate as part of the budget process based on economic data and previous year’s revenue. Being satisfied with Director Chang’s responses, the committee had no further questions. ADJOURNMENT Being no further business, Chair Del Rosario adjourned the meeting at 7:16 p.m. SPECIAL MEASURE W COC MINUTES OCTOBER 19, 2022 PAGE 4 Submitted by: Approved by: ___________________________________ _____________________________ Amanda Parker Engy Del Rosario Measure W COC Secretary Chair Approved by the Measure W Citizens’ Oversight Committee: / /