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HomeMy WebLinkAbout10.19.2022 @630 Special Measure W COCWednesday, October 19, 2022 6:30 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA Special Measure W Citizens' Oversight Committee Special Meeting Agenda VIRTUAL MEETING 1 October 19, 2022Special Measure W Citizens' Oversight Committee Special Meeting Agenda TELECONFERENCE MEETING NOTICE 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 Citizen’s Oversight Committee, City staff and the public to participate and conduct the meeting by teleconference. Teleconference locations are not open to the public. MEMBERS OF THE PUBLIC MAY VIEW A VIDEO BROADCAST OF THE MEETING BY: Via Zoom: Join Zoom meeting https://ssf-net.zoom.us/j/81345043941 (Enter your email and name) Join by One Tap Mobile: +16699006833,,81345043941# US (San Jose) +16694449171,,81345043941# US Or join by phone: Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 669 444 9171 or +1 253 215 8782 or +1 346 248 7799 or +1 719 359 4580 or +1 301 715 8592 or +1 309 205 3325 or +1 312 626 6799 or +1 386 347 5053 or +1 564 217 2000 or +1 646 931 3860 or +1 929 205 6099 or 888 475 4499 (Toll Free) or 833 548 0276 (Toll Free) or 833 548 0282 (Toll Free) or 877 853 5257 (Toll Free) Webinar ID: 813 4504 3941 International numbers available: https://ssf-net.zoom.us/u/kf5OKVzrn Page 2 City of South San Francisco Printed on 1/8/2024 2 October 19, 2022Special Measure W Citizens' Oversight Committee Special Meeting Agenda Call To Order. Roll Call. Agenda Review. Remote Public Comments How to submit written Public Comment before the Meeting: Members of the public wishing to participate are encouraged to submit public comments in writing in advance of the meeting to email:[email protected] by 1:00 p.m. on the meeting date. Emails received by the deadline will be forwarded to the Committee and read into the record by the Committee Secretary. Emails received after 1:00 p.m. will not be read during the meeting but will be entered into the record for the meeting. Approximately 300 words total can be read in three minutes. How to provide Public Comment during the Meeting: 1) By Phone US: +1 669 900 6833 Webinar ID 813 4504 3941 Click *9 to raise a hand to speak. Click *6 to unmute when called. By One tap mobile: +16699006833,,81345043941# US (San Jose) +16694449171,,81345043941# US 2) https://ssf-net.zoom.us/j/81345043941 a. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak. b. When the Committee Secretary calls for the item on which you wish to speak, click on "raise hand." Speakers will be notified shortly before they are called to speak. c. When called, please limit your remarks to the time limit allotted. Page 3 City of South San Francisco Printed on 1/8/2024 3 October 19, 2022Special Measure W Citizens' Oversight Committee Special Meeting Agenda MATTERS FOR CONSIDERATION Motion to approve the Minutes from the meeting of August 3, 2022.1. Informational report on Measure W fund balance and expenditures for FY 2021-22 update and FY 2022-23 1st Quarter (Karen Chang, Finance Director) 2. Adjournment. Page 4 City of South San Francisco Printed on 1/8/2024 4 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-886 Agenda Date:10/19/2022 Version:1 Item #:1. Motion to approve the Minutes from the meeting of August 3, 2022. City of South San Francisco Printed on 10/17/2022Page 1 of 1 powered by Legistar™5 CALL TO ORDER Chair Zemke called the meeting to order at 6:30 p.m. ROLL CALL Committee member DeGuzman, present Committee member Del Rosario, present Committee member Rey, present Committee member Romero (alternate), absent Vice Chair Brosnan, present Chair Zemke, present AGENDA REVIEW No changes. REMOTE PUBLIC COMMENTS No public comments MATTERS FOR CONSIDERATION 1. Welcome and Introductions Chair Zemke conducted introductions of members. 2. Motion to approve the Minutes from the meeting April 21, 2022 Motion - Vice Chair Brosnan/Second - Committee member DeGuzman: To approve the Minutes from the meeting April 21, 2022, by roll call vote: AYES Committee member DeGuzman, Committee member Del Rosario, Committee member Rey, Vice Chair Brosnan, Chair Zemke NAYS: None; ABSENT: None; ABSTAIN: None 3. Annual Reorganization of the Measure W Citizens’ Oversight Committee. Motion - Chair Zemke nominated Committee member Del Rosario to serve as Measure W Citizens’ Oversight Committee Chair for fiscal year 2022-2023/Second – Committee member DeGuzman, by MINUTES MEETING MEASURE W CITIZENS’ OVERSIGHT COMMITTEE CITY OF SOUTH SAN FRANCISCO Wednesday, August 3, 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 meeting by teleconference. Teleconference locations are not open to the public. 6 MEASURE W COC MINUTES August 3, 2022 MINUTES PAGE 2 roll call vote: AYES Committee member DeGuzman, Committee member Del Rosario, Committee member Rey, Vice Chair Brosnan, Chair Zemke NAYS: None; ABSENT: None; ABSTAIN: None Committee member Del Rosario took over as Chair Motion – Committee member Zemke nominated Committee member DeGuzman to serve as Measure W Citizens’ Oversight Committee Vice Chair for fiscal year 2022-2023/Second – Chair Del Rosario, by roll call vote: AYES Committee member DeGuzman, Committee member Rey, Committee member Zemke, Vice Chair Brosnan, Chair Del Rosario NAYS: None; ABSENT: None; ABSTAIN: None Committee member DeGuzman took over as Vice Chair 4. Informational report on Measure W fund balance and expenditures for FY 2021-22. (Karen Chang, Director of Finance) Director of Finance Karen Chang introduced and thanked the Committee for their service. Director Chang then presented an Overview of Measure W as the half-cent sales tax that was approved by voters in 2015 and went into effect on April 1, 2016. She explained that for transparency the City has set up a separate fund, outside of the General Fund, to account for the revenue and expenditures. She explained that the purpose of Measure W is to maintain and enhance the residents’ quality of life. She presented that the major projects funded by the measure are the Civic Campus and Paving Program and that bonds have been issued to facilitate those projects which Measure W income is used to pay for the debt service. She presented in a summary that to date preliminary numbers show that we have received about $71.6M in revenue and total expenditures are about $56.5M. Vice Chair DeGuzman questioned if the money received from the issuance of the bonds is considered revenue to which Director Chang explained that the revenue is mainly related to the Measure W sales tax receipts not including the bond proceeds. Vice Chair DeGuzman then asked where staff puts the profit from the bonds issued. Director Chang stated that the City accounts for bond proceeds in a separate fund and confirmed with Deputy Finance Director Jason Wong. Director Chang went on to clarify that the revenue is from the half-cent sales tax and the expenditures were related to the Civic Campus, the Paving Program, and the Debt Service. Director Chang continued that Measure W revenues are enough to pay for the expenditures. She clarified that the 6/30/2022 revenue numbers are only preliminary as there is a two-month lag in sales tax receipts from the California Department of Tax and Fee Administration and that actual collection is only through April. Director Chang stated that staff estimates sales tax revenue will go up to approximately $14M but that the number won’t be finalized until the tax revenue is received and that Finance is still closing their books so a more firm number related to expenditures will be presented closer to January. Vice Chair DeGuzman and Chair Del Rosario clarified with Director Chang that the Measure W revenues are used to pay the debt service related to the bonds. Director Chang confirmed that the statement was correct. Vice Chair DeGuzman asserted that he is trying to understand the sales tax, bond proceeds, and expenditure numbers as one of the committee tasks is to meet with the auditors who will substantiate those numbers. Director Chang stated that Measure W is part of the annual audit that the auditors will review from the City as a whole and that the auditors will issue an opinion statement ensuring compliance with all the requirements. Vi ce Chair DeGuzman stated that 7 MEASURE W COC MINUTES August 3, 2022 MINUTES PAGE 3 in previous years he has not seen a separate audit for Measure W funds. Director Chang responded that the audit is for the City as a whole but stated that Measure W is a separate and unique fund that can be found on page 113 of the City’s annual financial statement. Director Chang also stated that additional information for the public can be found on the Measure W website. Director Chang continued her presentation with a summary of the recently issued bonds. Director Chang explained that due to the rising interest rate concern the City has expediated the bond sales of Series 2022A from the original date in October 2022 to May 2022 and stated that the City successfully issued the $65M bond on May 25, 2022 achieving about $700k in interest savings. Director Chang stated that the total project for Orange Park will be about $72M augmented by a Caltrain Grant and Impact Fees. She then presented the Measure W Cash Flow citing the estimated 3% growth in sales tax receipts. Director Chang went on to explain that Measure W will be sufficient to cover the debt service. Director Chang covered the issuance of the three bond tranches; Series 2020A, to fund the Police Station for $53.8M at an interest cost of 2.27%, Series 2021A to fund the Library Parks and Recreation and Streets Pavement for $104M at 2.29%, and Series 2022A to fund the Aquatics Center and Sports Field for $65M at 4.03% because of rising interest cost. Chair Del Rosario asked if the bonds were all fixed interest to which Director Chang confirmed. Vice Chair DeGuzman asked how the debt service payments are calculated. Director Chang explained that there is an amortization schedule like a mortgage. Vice Chair DeGuzman asked if the bond was issued as a thirty-year bond. Deputy Director Wong stated that because Measure W was issued as a 30-year tax beginning April of 2016 the final maturity of the bonds was set to mature April of 2046 to not go beyond the sales tax. Director Chang then thanked Deputy Director Wong for his work with the bonds and concluded her presentation. Vice Chair DeGuzman asked if staff feels confident in the revenue estimation to which Director Chang stated that she believes that the revenues received which will be reported at the close of books in August will be close to staff’s estimation. Committee member Brosnan thanked Vice Chair DeGuzman for his questions and stated that he did not believe that the subcommittee is effective without including the other members as their questions are valid. Director Chang stated that she values the Committees input. Committee member Zemke thanked staff for their clear responses. Vice Chair DeGuzman asked about the date of the recent auditor ’s report. Director Chang stated that the current report is audited through June 30, 2021, and that Finance is closing the books for June 30, 2022, which is anticipated to be audited by December 2022. Vice Chair DeGuzman asked how the committee could pose questions to the auditors. He asked whether contact would be made directly to the auditors or through staff. Director Chang stated that because there is not currently a separate audit for Measure W, she would discuss with the auditors to see if there is a procedure for posing questions. Vice Chair DeGuzman asked if the auditors will receive samples related to Measure W to which Director Chang explained that the auditors are doing a city-wide audit and will choose random samples from the City’s many funds. She stated that while there is a high chance that the auditors will pick samples from Measure W there is no way to guarantee that they will pick expenditures or revenues pertaining to Measure W. Vice Chair DeGuzman asked if the auditors do a verification of the Measure W cash flow. Director Chang referenced page 113 in the financial report. Chair Del Rosario asked where the information could be found and in response to Chair Del Rosario’s req uest Director Chang stated that there is a link to the City’s website in the Staff Report. Vice Chair DeGuzman asked if the auditors will issue a Management Discussion and Analysis report related to Measure W or if staff can issue and provide one along with a quarterly statement of 8 MEASURE W COC MINUTES August 3, 2022 MINUTES PAGE 4 cash flow. Director Chang stated that she would investigate to see staff has the capacity to provide the statement of cash flow. Committee member Brosnan asked if Measure W is part of the monthly expenditure logs Council receives. Director Chang stated that Council receives check registers by Department that include expenditures pertaining to the whole City but that it does not specifically say that it is a Measure W expenditure and that Council does not receive a financial report on any of the City’s funds monthly. Committee member Brosnan asked if Measure W could be classified as its own department for the purpose of the Committee to receive a check log like the Council receives monthly to which Director Chang stated that this would not be possible as Measure W is its own separate and unique fund. Committee member Brosnan stated that although he has seen the raw data, he could not at this time say that he understands Measure W expenditures and does not feel that he could know that every penny that is spent for Measure W is appropriate. Director Chang asked if the Committee’s confidence would be boosted by a separate audit to which Vice Chair DeGuzman and Chair Del Rosario agreed. There was some discussion related specific vendors in the financial reports provided and the committee agreed these would be addressed later via email to Director Chang. Committee member Brosnan thanked Director Chang and Deputy Director Wong citing the progress made during the meeting and stating that he believes that Measure W COC has an outstanding team. No public comments. The following was submitted via Q&A chat: Hello! My name is Kelly Morrison. My dad was SSF Fire Captain for many years (William Morrison). My sister and brother are currently SSF employees. I graduated from El Camino HS in 1986. I am pursuing my Masters of Social Work and will be attending these meetings regularly. Would any of you be willing to answer these questions for my policy class? My e-mail is . I need to sign off due to class-but will be attending regularly! • What motivated the person you engaged with to get involved? • How did the person you engaged with learn about the organization? • Holding the event? • What has the person you engaged with done in the past to advocate for this issue? Committee member Zemke asked how this comment could be addressed according to the Brown Act to which Alexandra Wolf of the City Attorney’s Office stated that the committee can respond to the request individually. ADJOURNMENT 9 MEASURE W COC MINUTES August 3, 2022 MINUTES PAGE 5 Being no further business, Chair Del Rosario adjourned the meeting at 7:44 p.m. Submitted by: Approved by: _____________________ ______________________________ Amanda Parker-Govea Engy Del Rosario Committee Secretary Chair Approved by the Measure W Citizens’ Oversight Committee: / / 10 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:22-872 Agenda Date:10/19/2022 Version:1 Item #:2. Informational report on Measure W fund balance and expenditures for FY 2021-22 update and FY 2022-23 1st Quarter (Karen Chang, Finance Director) RECOMMENDATION This report is informational and requires no formal action from the Committee. BACKGROUND/DISCUSSION On November 3,2015,South San Francisco residents approved a half-cent sales tax by an overwhelming majority.The adoption of Measure W ensures that the City of South San Francisco will be able to maintain and enhance locally controlled City services that the community cares about and has come to expect -including neighborhood police patrols,911 response times,crime and gang suppression programs,street maintenance and pothole repair,maintaining youth/teen educational/recreational programs,providing a police operations center that meets earthquake safety codes, and other essential services. The voter-approved half-cent sales tax (Measure W)went into effect on April 1,2016.Since that time,the sales tax proceeds have been accounted for separately from the City’s General Fund to track the commensurate revenues and expenditures. Major projects currently funded by Measure W are: 1.Community Civic Campus Program a.Police Operations & 911 Dispatch Center (pf1707) b.Library, Parks and Recreation and Community Theater/Council Chamber (pf2103) 2.Orange Memorial Park Project a.Multi-Use Sports Fields b.Aquatic Center c.Park Playground d.Park Bridges 3.Paving Program Use to augment City efforts towards street maintenance and pothole repairs Staff will schedule a meeting with its independent auditor to provide an overview of the FY 2021-22 auditor’s plan for the audit scope and schedule with regard to Measure W funds.Staff will also provide information from the FY 2021-22 Annual Comprehensive Financial Report related to Measure W for the committee’s review, when available. A.MEASURE W FUND BALANCE THROUGH SEPTEMBER 30, 2022 The following is a summary of Measure W revenues and expenditures since its inception through September 30, 2022: City of South San Francisco Printed on 10/17/2022Page 1 of 3 powered by Legistar™11 File #:22-872 Agenda Date:10/19/2022 Version:1 Item #:2. As shown above,the fund balance for Measure W as of June 30,2021,was $7,933,720 which is reflected in pages 111 and 113 of the City’s Comprehensive Annual Financial Report for year ended June 30,2021.The significant increase in debt services expenditure in FY 2021-22 is due to the commencement of debt service payments for the 2nd tranche of lease revenue bond (Series 2021A.)The fund balance (unaudited)for fiscal year ended June 30, 2022, is $11,851,840. The completed financial report for fiscal year 2020-21 can be found on the City’s website: <https://www.ssf.net/departments/finance/financial-reports/comprehensive-annual-financial-reports-cafr> B.FISCAL YEAR (FY) 2022-23 REVENUES There is normally a two months’lag between the time that City receives its sales tax revenue against the actual collection date The $1.1 million revenue shown in Table 1 represents collections for the month of July 2022. Total revenue for FY 2022-23 is projected to be approximately $13.8 million.While collections for FY 2021-22 hit a record high of $15.3 million (unaudited),staff will continue to closely monitor this revenue stream considering the growing risk of recession in FY 2022-23. C.FY 2022-23 EXPENDITURES City of South San Francisco Printed on 10/17/2022Page 2 of 3 powered by Legistar™12 File #:22-872 Agenda Date:10/19/2022 Version:1 Item #:2. The following is a summary of expenditures as of September 30, 2022: Table 2: Expenditures by project Debt service payments,which are required to be made in December and June,will be reflected in reports for the next three quarters.We anticipated the total debt service payment to be $8.3 million for FY 2022-23. Payroll expenditures related to the administration of Measure W funds will be allocated to the projects during year end. Funds appropriated in prior years by Council but unspent will be carried over as appropriated funds to be spent in FY 2022-23 or future years as part of the ongoing capital projects. CONCLUSION In FY 2021-22, the City received $15.4 million in Measure W tax revenues and expended $11.5 million in compliance with the Measure W ballot measure language. Staff will provide the portions of the FY 2021-22 Annual Comprehensive Financial Report related to Measure W for your review when available. Staff will continue to monitor the activities for FY 2022-23. Attachments: 1.Financial Status Balances - Fund 101 - Measure W (FY 2021-22 and FY 2022-23) 2.Power Point Presentations City of South San Francisco Printed on 10/17/2022Page 3 of 3 powered by Legistar™13 10/12/2022 10:54AM revexpbyfund Revenue and Expenditure by Fund CITY OF SOUTH SAN FRANCISCO Page: 1 Fiscal Year: 2022 Through Period: 16 Periods: 0 through 16 ExpendYear-To-Date20220 - 16 Budget Actual Actual Encumbrances Balance % FUND: 101 MEASURE W REVENUES 101-00000-30207 MEASURE W AND USE TAX (0.5%) 12,708,000.00 15,399,766.39 15,399,766.39 0.00 (2,691,766.39) 121.18 12,708,000.00 15,399,766.39 15,399,766.39 0.00 (2,691,766.39)TOTAL REVENUES 121.18 EXPENDITURES 101-00000-9461 TRANSFER OUT TO DEBT SERVICE 8,287,833.33 8,287,833.32 8,287,833.32 0.00 0.01 100.00 101-05101-4001 REGULAR SALARIES 216,590.40 180,208.03 180,208.03 0.00 36,382.37 83.20 101-05101-4008 REGULAR HOLIDAY 0.00 11,779.34 11,779.34 0.00 (11,779.34) 0.00 101-05101-4009 VACATION PAY 0.00 11,767.85 11,767.85 0.00 (11,767.85) 0.00 101-05101-4010 SICK PAY 0.00 14,146.40 14,146.40 0.00 (14,146.40) 0.00 101-05101-4011 ACCRUED VACATION/SICK LEAVE 0.00 2,376.36 2,376.36 0.00 (2,376.36) 0.00 101-05101-4013 MEDICAL APPT LEAVE 0.00 235.42 235.42 0.00 (235.42) 0.00 101-05101-4016 ADMINISTRATIVE LEAVE 0.00 8,580.00 8,580.00 0.00 (8,580.00) 0.00 101-05101-4018 RETROACTIVE PAY 0.00 836.80 836.80 0.00 (836.80) 0.00 101-05101-4306 IN LIEU HEALTH INSURANCE 0.00 6,625.49 6,625.49 0.00 (6,625.49) 0.00 101-05101-4308 CITY SPONSORED MEDICAL 0.00 46.20 46.20 0.00 (46.20) 0.00 101-05101-4309 HEALTH BENEFIT-MISCELLANEOUS 0.00 1,100.00 1,100.00 0.00 (1,100.00) 0.00 101-05101-4311 PERS-EMPLOYER 0.00 18,224.17 18,224.17 0.00 (18,224.17) 0.00 101-05101-4315 AUTO ALLOWANCE 0.00 5,420.97 5,420.97 0.00 (5,420.97) 0.00 101-05101-4326 WORKERS COMP INSURANCE 0.00 640.16 640.16 0.00 (640.16) 0.00 101-05101-4329 RHS ER EXPENSE 0.00 3,413.31 3,413.31 0.00 (3,413.31) 0.00 101-05101-4338 OTHER BENEFITS - LIFE / ADD / LTD / STD 0.00 1,579.58 1,579.58 0.00 (1,579.58) 0.00 101-05101-4340 FICA ER AND MEDICARE ER EXPENSE 0.00 12,805.48 12,805.48 0.00 (12,805.48) 0.00 101-05101-4350 BUDGETED P/R BENEFITS 176,499.52 0.00 0.00 0.00 176,499.52 0.00 101-05101-5005 PROFESSIONAL & SPECIALIZED SVCS 12,675.00 0.00 0.00 0.00 12,675.00 0.00 101-99999-9510 TRANSFER OUT TO CAPITAL IMPROV 10,497,925.82 2,811,485.88 2,811,485.88 0.00 7,686,439.94 26.78 101-99999-9516 TRANSFER OUT TO FUND 516 CIVIC CAMPUS 2,631,916.08 102,542.34 102,542.34 0.00 2,529,373.74 3.90 21,823,440.15 11,481,647.10 11,481,647.10 0.00 10,341,793.05 TOTAL EXPENDITURES 52.61 3,918,119.29 3,918,119.29 (9,115,440.15) 0.00 (13,033,559.44)EXCESS OF REVENUES OVER EXPENDITURES (42.98) 14 10/12/2022 10:54AM revexpbyfund Revenue and Expenditure by Fund CITY OF SOUTH SAN FRANCISCO Page: 2 Fiscal Year: 2022 Through Period: 16 Periods: 0 through 16 ExpendYear-To-Date20220 - 16 Budget Actual Actual Encumbrances Balance % 21,823,440.15 12,708,000.00 GRAND TOTAL EXPENDITURES GRAND TOTAL REVENUES 11,481,647.10 15,399,766.39 11,481,647.10 15,399,766.39 0.00 0.00 10,341,793.05 GRAND EXCESS OF REVENUES OVER EXPENDITURES (9,115,440.15) 3,918,119.29 3,918,119.29 0.00 (13,033,559.44) -2,691,766.39 121.18 52.61 (42.98) 15 10/11/2022 11:06AM revexpbyfund Revenue and Expenditure by Fund CITY OF SOUTH SAN FRANCISCO Page: 1 Fiscal Year: 2023 Through Period: 16 Periods: 0 through 16 ExpendYear-To-Date20230 - 16 Budget Actual Actual Encumbrances Balance % FUND: 101 MEASURE W REVENUES 101-00000-30207 MEASURE W AND USE TAX (0.5%) 13,800,000.00 1,132,106.14 1,132,106.14 0.00 12,667,893.86 8.20 13,800,000.00 1,132,106.14 1,132,106.14 0.00 12,667,893.86 TOTAL REVENUES 8.20 EXPENDITURES 101-00000-9461 TRANSFER OUT TO DEBT SERVICE 8,289,450.00 0.00 0.00 0.00 8,289,450.00 0.00 101-05101-4001 REGULAR SALARIES 234,234.00 19,049.96 19,049.96 0.00 215,184.04 8.13 101-05101-4008 REGULAR HOLIDAY 0.00 470.84 470.84 0.00 (470.84) 0.00 101-05101-4010 SICK PAY 0.00 4,708.40 4,708.40 0.00 (4,708.40) 0.00 101-05101-4016 ADMINISTRATIVE LEAVE 0.00 10,104.00 10,104.00 0.00 (10,104.00) 0.00 101-05101-4021 INCENTIVE PAY 0.00 4,800.00 4,800.00 0.00 (4,800.00) 0.00 101-05101-4306 IN LIEU HEALTH INSURANCE 0.00 888.47 888.47 0.00 (888.47) 0.00 101-05101-4308 CITY SPONSORED MEDICAL 0.00 6.19 6.19 0.00 (6.19) 0.00 101-05101-4309 HEALTH BENEFIT-MISCELLANEOUS 0.00 500.00 500.00 0.00 (500.00) 0.00 101-05101-4311 PERS-EMPLOYER 0.00 2,585.29 2,585.29 0.00 (2,585.29) 0.00 101-05101-4315 AUTO ALLOWANCE 0.00 726.95 726.95 0.00 (726.95) 0.00 101-05101-4326 WORKERS COMP INSURANCE 0.00 97.53 97.53 0.00 (97.53) 0.00 101-05101-4329 RHS ER EXPENSE 0.00 586.99 586.99 0.00 (586.99) 0.00 101-05101-4338 OTHER BENEFITS - LIFE / ADD / LTD / STD 0.00 211.81 211.81 0.00 (211.81) 0.00 101-05101-4340 FICA ER AND MEDICARE ER EXPENSE 0.00 1,942.91 1,942.91 0.00 (1,942.91) 0.00 101-05101-4350 BUDGETED P/R BENEFITS 164,387.65 0.00 0.00 0.00 164,387.65 0.00 101-05101-5005 PROFESSIONAL & SPECIALIZED SVCS 0.00 0.00 0.00 12,675.00 (12,675.00) 0.00 101-99999-9516 TRANSFER OUT TO FUND 516 CIVIC CAMPUS 4,455,000.00 0.00 0.00 0.00 4,455,000.00 0.00 13,143,071.65 46,679.34 46,679.34 12,675.00 13,083,717.31 TOTAL EXPENDITURES 0.45 1,085,426.80 1,085,426.80 656,928.35 (12,675.00)(415,823.45)EXCESS OF REVENUES OVER EXPENDITURES 163.30 16 10/11/2022 11:06AM revexpbyfund Revenue and Expenditure by Fund CITY OF SOUTH SAN FRANCISCO Page: 2 Fiscal Year: 2023 Through Period: 16 Periods: 0 through 16 ExpendYear-To-Date20230 - 16 Budget Actual Actual Encumbrances Balance % 13,143,071.65 13,800,000.00 GRAND TOTAL EXPENDITURES GRAND TOTAL REVENUES 46,679.34 1,132,106.14 46,679.34 1,132,106.14 12,675.00 0.00 13,083,717.31 GRAND EXCESS OF REVENUES OVER EXPENDITURES 656,928.35 1,085,426.80 1,085,426.80 (12,675.00)(415,823.45) 12,667,893.86 8.20 0.45 163.30 17 Measure W Oversight Committee Scope of Responsibilities Alexandra Wolf, Assistant City Attorney October 19, 2022 18 City of South San Francisco Background Measure W •Half-cent sales tax (0.5%) approved by voters on November 3, 2015 Tax went into effect April 1, 2016 •A General Tax for any legitimate governmental purpose Help maintain and enhance local services (SSF) Voter Priorities: Neighborhood police patrols/911 response Repairing potholes/streets Police operations center that is earthquake safe Programs for seniors, disabled residents, and crime suppression Maintaining youth/teen educational/recreational programs 19 City of South San Francisco Citizen’s Oversight Committee (“COC”) •SSFMC section 4.36.140 –Appointment and bylaws set by City Council –Five-person committee of SSF residents or business representatives •Standing Advisory Committee –Subject to the Brown Act/open meeting laws –Subject to state conflict of interest laws •Bylaws adopted in 2016 –Member appointment/selection –Meeting schedule, attendance, operations –Scope of Committee actions and responsibilities Appointment of the COC 20 City of South San Francisco Citizen’s Oversight Committee (“COC”) •SSFMC section 4.36.140 –Intent: Review and report on the revenue received and expenditure of funds from the Measure W tax. •Making sure that Measure W funds are used in alignment with the services and projects stated in the ballot measure language. •Not project-specific The COC responsibilities 21 City of South San Francisco Scope of COC Responsibilities 1.Review the City’s annual financial audit and findings on Measure W Tax –City undergoes an annual audit of its financial statements and review, among other things, collection and expenditure of Measure W tax revenue. –COC shall “meet with the independent auditor to receive the plan for the audit and the audit findings” related to Measure W tax collection and expenditure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 22 City of South San Francisco Scope of COC Responsibilities 2.Report to the City Council regarding auditors’ findings on Measure W Tax –The COC reports on whether Measure W funds are being spent in accordance with the terms of Measure W. The voters asked the COC to make sure that Measure W funds are spent as contemplated by the ballot measure. (SSFMC 4.36.140; Bylaws section (C)(2)) The COC’s responsibilities are: 23 City of South San Francisco Scope of COC Responsibilities •Measure W is a general tax –The funds generated from the measure may be used for any legitimate governmental purpose –Not restricted by the language of the ballot measure or another form of financing (i.e. bonds) –Ballot lists examples of voter priorities •Improper use = spending the money for a non-public purpose Improper Use of Measure W funds? 24 City of South San Francisco Scope of COC Responsibilities •Having a formal role in contracting, project management, or any other aspect related to the use of Measure W tax revenue. –This is to preserve the integrity and independence of the oversight process. (Bylaws section (C)(4)) •Reviewing or auditing case-by-case the projects funded by Measure W –The COC does not determine whether Measure W funds are properly spent at the project level. The COC is not tasked with: 25 City of South San Francisco Scope of COC Responsibilities Questions? 26 Karen Chang, Director of Finance October 19, 2022 Presentation to Measure W Citizens’ Oversight Committee 27 Agenda 1.Introductions 2.Measure W Training 3.Review Minutes 4.Financial Update 5.Financial Review Discussion 6.Questions 228 Overview of Measure W Financials 3 Fiscal Year Ended Cumulative Total as of 6/30/2020 6/30/2021 6/30/2022 (unaudited) 9/30/22 (Preliminary) Total (Inception thru 9-30-22) REVENUES $45,891,353 $13,379,292 $15,399,766 $1,132,106 $75,802,517 EXPENDITURES Civic Campus 24,569,553 16,693,441 3,019,534 46,679 44,329,207 Paving Program 5,935,264 964,312 174,279 -7,073,855 Debt Service 407,155 2,767,200 8,287,833 -11,462,188 TOTAL EXPENDITURES 30,911,972 20,424,953 11,481,646 46,679 62,865,250 Revenues less Expenditures 14,979,381 (7,045,661)3,918,120 1,085,427 12,937,267 FUND BALANCE 14,979,381 7,933,720 11,851,840 12,937,267 12,937,267 29 FY 2022-23 Q1 Revenue/ Expenditures Summary 4 Expenditure Budget Actual (9/30/22) Remaining Balance Revenues*$13,800,000 $1,132,106 $12,667,894 Expenditures Civic Campus $4,853,622 $46,679 $4,806,943 Debt Service 8,289,450 -8,289,450 Total Expenditures 13,143,072 46,679 13,096,393 Revenues Less Expenditures 656,928 1,085,427 (428,499) *Sales taxes receipt has a 2-month lag 30 Bond Funded Project Summary Description Tranche I Tranche II Tranche III Bond Proceeds $ 53,800,000 $ 104,000,000 $ 65,000,000 Police Station 53,800,000 LPR Projects 76,000,000 Street Projects 24,000,000 Solar Projects 4,000,000 Sports Field 12,300,000 Aquatic Center 49,000,000 Bridges 1,500,000 Playground 2,200,000 Average Annual Debt Services $ 2,756,755 $ 5,531,499 $ 4,804,623 Total Debt Services $ 72,288,256 $ 138,056,983 $ 115,217,540 5 31 QUESTIONS 632