TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Paige Hartman-Salazar, Management Analyst - Special Projects
SUBJECT:
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Transaction and Use Tax Citizens Oversight Committee Bi-Annual Report
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RECOMMENDATION
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Receive and file.
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PRIOR ACTION/VOTE
On July 17, 2018, the City Council adopted Resolution No. 18-3953, proposing an ordinance enacting a transaction and use tax be placed on the November 6, 2018, ballot (Measure T) (Vote: 5-0).
On December 18, 2018, the City Council adopted a Resolution declaring the results of the November 6, 2018, General Municipal Election, including therein adoption of Ordinance No. 540-18 enacting a transaction and use tax (vote: 5-0).
On February 5, 2019, the City Council adopted a Resolution entitled: A Resolution of the City Council of the City of Murrieta, California Establishing an Advisory Transaction and Use Tax Citizens Oversight Committee (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency and provide a high level of innovative public safety.
BACKGROUND
In November 2018, Murrieta voters passed ballot Measure “T,” a one-cent Transaction and Use Tax. Measure T is a general tax revenue source to maintain the City of Murrieta's (City) long-term financesand provide funding for general services, including faster response times to emergencies, improved fire protection/paramedic services, increased police sworn personnel to strengthen crime prevention, reduced gang activity/drug crimes, graffiti removal, parks and recreation, and street maintenance/pothole repair.
On December 18, 2018, the City Council adopted Ordinance No. 540-18, enacting a voter-approved Transaction and Use (District) Tax, often informally referred to as Measure T.
On February 5, 2019, the City Council adopted Resolution No. 19-4043, establishing an Advisory Transactions and Use Tax Citizens Oversight Committee. The Citizens Oversight Committee oversees Measure T sales tax revenues and expenses as described in the resolution, and their scope of review is summarized as follows:
• Review revenue and expenditure reports prepared by staff as they relate to the receipt and use of Transactions and Use Tax revenue;
• Receive and consider reports from the City Manager or designee on the operational impacts City-wide;
• Review economic trends;
• Deliver a biennial report to the City Council on the revenue and expenditure history for the prior biennial budget period, including how expenditures align with priorities set by the City Manager under the authority of and in keeping with the annually established goals of the City Council; and
• Review staff recommendations to the City Council on future use (based on revenue and expenditure reports and economic trends).
This Measure T Oversight Report summarizes Measure T revenues and expenditures from Fiscal Year 2020/21 through Fiscal Year 2022/23, as well as the services enhanced by Measure T funds and other accomplishments using this funding source. It shows the importance of Measure T revenues to the City's current and future financial health and supports City Council priorities, which include the following:
1. Maintain Public Safety Services
• Increase Police and Fire staffing to keep pace with population growth and improve emergency response times
2. Address Deferred Maintenance & Aging Infrastructure
• Repave/repair roads, bridges, sidewalks, city facilities, parks and landscaping; and
• Improve graffiti removal response
3. New Capital Improvements
• Replace aging emergency response apparatus; and
• Keller Road Interchange to provide faster response times
A draft of this report was shared with the Transaction and Use Tax (Measure T) Oversight Committee, and the Committee members were advised that this item would be on the City Council agenda for the August 20, 2024 meeting.
Fiscal Year 2020/21 Revenues, Expenditures, and Accomplishments
Revenues
Expenditures
Accomplishments
• 43 authorized positions funded by Measure T since inception;
• 73% of Measure T budget dedicated to public safety;
• Purchase of five Police patrol vehicles and one traffic motorcycle;
• Police building roof repair;
• Purchase of Type 1 fire engine;
• Purchase of two Type 6 fire engines;
• Purchase of turnout gear and other Fire Department services and equipment;
• Purchase of four self-check-out kiosks for the Library; and
• Vehicle lease program.
Fiscal Year 2021/22 Revenues, Expenditures, and Accomplishments
Revenues
Expenditures
Accomplishments
• 57 authorized positions since inception;
• 71% of the budget dedicated to public safety;
• Building maintenance and bay doors replacement at Fire Station 1;
• Replacement of four (4) cardiac monitors for LifePak 15;
• Public Safety Enterprise Communication (PSEC) radio system equipment and start-up costs;
• Purchase of safety equipment and turn-out gear;
• Concealed Carry Weapon (CCW) background investigations and media consulting contract; and
• Purchase of Tasers and body-worn Cameras.
FY2022/23 Revenues, Expenditures, and Accomplishments
Revenues
Expenditures
Accomplishments
• 60 authorized positions funded by Measure T since inception;
• 70% of the Measure T budget is dedicated to public safety;
• Tasers, body-worn cameras, licenses, and technical support for Evidence.com;
• 3 Police vehicles, including uplifting cost;
• Auto dispatch system, EMS priority dispatch system, and training;
• Turnout safety equipment and self-contained breathing apparatus safety equipment;
• Data incident response system;
• Public Safety Enterprise Communication System (PSEC) radio system equipment;
• Fire station repairs, interior paint, fuel tank paint, Station 2 bay door replacement;
• Economic Development marketing, data market research, conferences and training;
• Development Services Department backfill personnel for EnerGov system implementation;
• Citywide vehicle lease program; and
• Traffic Engineering services.
Conclusion
This Transaction and Use Tax bi-annual report from the Transaction and Use Tax Oversight Committee encapsulates the importance of the Measure T fund. It highlights Measure T's successful execution and accomplishments, which is essential funding for various facets of Murrieta's municipal services.
Throughout the outlined period, from FY 2020/21 to FY 2022/23, Measure T revenues have played a crucial role in fortifying critical areas of public concern. The report underscores the substantial impact of Measure T funds on strengthening public safety services, thereby improving emergency response times and enhancing overall community safety.
Secondly, Measure T funds have been allocated to address Murrieta's pressing issue of deferred maintenance and aging infrastructure. This involves vital tasks such as road repairs, facility maintenance, and graffiti removal, contributing significantly to the city's aesthetic appeal, functionality, and safety.
Lastly, the report highlights the Measure T Fund's role in facilitating new capital improvements within Murrieta. These encompass a range of projects aimed at enhancing community amenities and infrastructure, such as developing sports parks and implementing essential transportation infrastructure like the Keller Road interchange.
Overall, the summary paints a picture of the Measure T Fund as a vital revenue source for Murrieta's quality of life.
Measure T Committee Recommendations
The Transaction and Use Tax Oversight Committee recommends that Measure T funding continue to be used to enhance public safety services, public facilities, and infrastructure maintenance, as well as to support capital improvement projects and to maintain fiscal stability.
FISCAL IMPACT
No fiscal impact.
ATTACHMENTS
None.