TO: HONORABLE CHAIR AND MEMBERS OF THE TRANSACTION AND USE TAX OVERSIGHT COMMITTEE
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
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District Sales & Use Tax (Measure T Fund) Adopted Budget for Fiscal Years 2025/26 and 2026/27
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RECOMMENDATION
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Receive and file.
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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 long-term finances, 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.
I am pleased to present the Adopted Measure T Operating Budget for Fiscal Year (FY) 2025/26 and FY 2026/27. The estimated district sales tax revenue is $28.7 million and $29.5 million for FYs 2025/26 and 2026/27, respectively. The adopted sales tax revenue was budgeted using the City's sales tax consultant projections. Given economic uncertainties, the City took a conservative approach, projecting a 3% year-over-year increase compared to the FY 2024/25 amended budget, primarily based on anticipated new retail activity, business growth, and population increases.
The table below summarizes the projected revenues, expenditures, and the contribution to the fund balance.
The Measure T Fund adopted budget includes an operating transfer to the Fire District, Community Service District, and the Library District funds. The transfers represent approximately 33% of the FY 2025/26 adopted budget, and 32% of the FY 2026/27 adopted budget. Historically, the Fire District, Community Service District, and recently, the Library funds have not been financially self-sustaining, requiring a transfer from the Measure T fu...
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