Annual Report of the Measure A Citizens Oversight Committee Fiscal Year 2020‐21
Measure A Background
On June 5, 2018, Chula Vista voters passed Measure A, the half-cent sales tax measure to fund public safety staffing and services. The new tax al lows the Chula Vista Fire and Police Departments to provide faster responses to 9-1-1 emergency calls, increase neighborhood police patrols, reduce gang and drug-related crimes, addre ss homelessness, and improve firefighter, paramedic and emergency medical response times. The tax took effect on October 1, 2018, and brought Chula Vista’s tax rate to 8.75 percent.
Citizens Oversight Committee
As stipulated by the City of Chula Vista Municipal Code Chapter 2.63, the Measure A Citizens' Oversight Committee ("COC") was created for the pur pose of providing citizens’ oversight in connection with expenditures of tax revenues generated by Measure A. The function of the COC is to review and report on City compliance with the provisions of Measure A, particularly with respect to the City’s accounting and expenditure of Measure A revenues. The Measure A COC held its first meeting on September 26, 2018, and n ow meets quarterly on the second Thursday of January, April, July and October.
The Measure A COC is composed of twelve members app ointed to four-year terms. All terms expire June 30th on the year listed below. The COC members as of 6/30/2021 are:
Member Appointment Criteria Term Expiring
David Stucky (Chair) District 1 Rep. 2022
Pedro Anaya (Vice Chair) District 2 Rep. 2025
Paul Becotte District 3 Rep. 2025
John Volland District 4 Rep. 2022
Robert Cromer Chula Vista Chamber of Commerce Rep. 2023 Dustin Bruzee Chula Vista Police Officers Associati on Rep. 2024 Darrell Roberts Chula Vista International Associati on of Fire Fighters Rep. 2025 Nicole Hobson Association of Chula Vista Employees Rep. 2024 Andrew Strong Growth Management Oversight Commissio n Rep. 2023 Manolo Guillen Chula Vista Fire Chief Rep. 2022
Gary Ficacci Chula Vista Police Chief Rep. 2023
Frank Rivera Chula Vista Mid/Managers/Professional Association Rep. 2024
The specific duties of the COC are as follows:
1. Review and comment on each year's: (1) Finance Department Report (as defined in CVMC section 3.34.160.A); (2) Measure A Spending Pl an (as defined in CVMC section
3.34.160.B); and (3) Annual Independent Auditor’s Report (as defined in CVMC section 3.34.160.C).
2. Make determinations as necessary and appropria te regarding City compliance with Measure A requirements.
3. Work with City staff to identify and apply "be st practices" for tracking and reporting on Measure A revenues and expenditures relative to other Public Safety Department revenues and expenditures.
4. Prepare an annual report regarding the Finance Department Report for presentation to the City Council at a public meeting.
Highlights of Measure A Activities during Fiscal Year 2020/2021:
Measure A COC held four meetings between July 2020 and June 2021. All four meetings were held via teleconference per Emergency Order 002-B-2020. Election of Chair and Vice Chair for Fiscal Year 2020/2021. Vice Chair Stucky was selected as new Chair and Committee Member Anaya was selected as new Vice Chair for the Fiscal Year 2020/2021.
Committee voted on changing the frequency for regular meeting of the Measure A COC from monthly to quarterly.
Police Department proposed amendments to the Measure A Public Safety Expenditure Plan to move up the hiring of six (6) Peace Officers to the fiscal year 2020/2021 as a result of Community Oriented Policing Services (COPS) grant funding and amend the revenue and expenditure budget in Fiscal Year 2020/2021.
Measure A COC Committee approved proposed recommendation for a one-time loan of Measure A funds for startup costs for Fire Department Ambulance Based Transport. Police Department proposed amendments to the Measure A Public Safety Expenditure Plan to add one Public Information Specialist and one Information Technology Technician in Fiscal Year 2020/2021 and amend the Expenditure Budget in Fiscal Year 2020/2021. Fire Department proposed amendments to the Measure A Public Safety Expenditure Plan to add one Operations Support Captain and three Firefighters/EMT positions to fire station 9 in Fiscal Year 2020/2021 and amend the Expenditure Budget in Fiscal Year 2020/2021.
Police Department proposed amendments to the Measure A Public Safety Expenditure Plan to add one Police Lieutenant, one Police Sergeant, three Peace Officers and Drone contractual costs in Fiscal Year 2021/2022 to support Police Department Community Relations and Drone Operations based on projected increase in sales Tax Revenues. Finance Department underwent a fiscal audit for all its financial statements. Along with that report, the city required in accordance with Measure A and Measure P to do an independent compliance audit as it relates to the spending of the money within the transaction used taxes. The city did conduct the audit for the third year and the summary states that the city is in compliance with the intended use of the proceeds of the transaction use tax.
Board/Commission comments or recommendations to Council:
Consider the proposed Ten-Year and FY 2021/2022 Measure A Spending Plans, determine their compliance with Measure A requirements and recommend to City Council and incorporation of the proposed FY 2021/2022 Measure A Spending Plan into the City’s FY 2021/2022 budget.
POLICE DEPARTMENT STAFFING PLAN AS OF 7/1/2020
Position FY 2018 ‐
19 FY 2019 ‐
20 FY 2020 ‐
21 FY 2021 ‐
22 FY 2022 ‐
23 TOTAL FTE
Police Sergeant 3.0 2.0 1.0 6.0
Police Agent 1.0 2.0 3.0 2.0 8.0
Peace Officer 4.0 6.0 5.0 5.0 1.0 21.0
TOTAL SWORN 5.0 11.0 10.0 8.0 1.0 35.0
Civilian Background Investigator 1.0 1.0
Community Services Officer 2.0 2.0
Digital Forensics Technician 2.0 2.0
Police Comm Systems Manager 1.0 1.0
Police Dispatcher 2.0 5.0 7.0
Sr. Police Technology Specialist 1.0 1.0
TOTAL CIVILIAN 4.0 10.0 0.0 0.0 0.0 14.0
TOTAL POLICE POSITIONS 9.0 21.0 10.0 8.0 1.0 4 9.0
POLICE DEPARTMENT STAFFING PLAN AS OF 6/30/2021
Staff changes highlighted in yellow
Position FY 2018 ‐
19 FY 2019 ‐
20 FY 2020 ‐
21 FY 2021 ‐
22 TOTAL FTE
Police Lieutenant 1.0 1.0
Police Sergeant 3.0 3.0 1.0 7.0
Police Agent 1.0 2.0 3.0 2.0 8.0
Peace Officer 4.0 6.0 14.0 24.0
TOTAL SWORN 5.0 11.0 21.0 3.0 40.0
Civilian Background Investigator 1.0 1.0
Community Services Officer 2.0 2.0
Digital Forensics Technician 2.0 2.0
Information Technology
Technician
1.0 1.0
Police Comm Systems Manager 1.0 1.0
Police Dispatcher 2.0 5.0 7.0
Public Information Specialist 1.0 1.0
Sr. Police Technology Specialist 1.0 1.0
TOTAL CIVILIAN 4.0 10.0 2.0 0.0 16.0
TOTAL POLICE POSITIONS 9.0 21.0 23.0 3.0 56.0
FIRE DEPARTMENT STAFFING PLAN AS OF 7/1/2020
Position FY 2018 ‐
19 FY 2019 ‐
20 FY 2020 ‐
21 FY 2021 ‐
22 FY 2022 ‐
23 FY 2023 ‐
24 TOTAL
FTE
Deputy Fire Chief 2.0 (1.0) 1.0
Fire Captain 2.0 2.0 (4.0) 0.0
Fire Captain/PIO 1.0 1.0
Firefighter Paramedic 2.0 2.0 (4.0) 0.0
Firefighter/EMT 12.0 3.0 9.0 3.0 27.0
TOTAL FIRE POSITIONS 19.0 7.0 0.0 0.0 0.0 3.0 29.0
FIRE DEPARTMENT STAFFING PLAN AS OF 6/30/2021
Staff changes highlighted in yellow
Position FY 2018 ‐
19 FY 2019 ‐
20 FY 2020 ‐
21 FY 2021‐22 FY 2022 ‐
23 FY 2023 ‐
24 TOTAL
FTE
Deputy Fire Chief 2.0 (1.0) 1.0
Fire Captain 2.0 2.0 (4.0) 0.0
Fire Captain/PIO 1.0 1.0
Fire Captain - Operations Support 1.0 1.0
Firefighter Paramedic 2.0 2.0 (4.0) 0.0
Firefighter/EMT 12.0 3.0 9.0 3.0 3.0 30.0
TOTAL FIRE POSITIONS 19.0 7.0 1.0 3.0 3.0 0.0 33.0
Audited Statement of Revenues, Expenditures and Changes in Fund Balance June 30, 2021
Police Department Fund Balance
Police Department Fund Balance of 7/1/2020 $ 13,304,169
Revenues
1/2 cent Sales Tax Revenues 11,806,887 Grant Funding 177,083
CARES Act/FEMA Funding 12,373 Police Revenue Total 11,996,343
Personnel Expenditures 6,510,900
Supplies & Services 119,206
Police Vehicles, Outfitting, Maint., Fuel, etc. 389,638 City Support (IT, Finance, HR, City Attorney, etc.) 442,758 Police Expenditure Total 7,462,503 Police Fund Balance as of 6/30/2021 $ 17,838,010
Fire Department Fund Balance
Fire Department Fund Balance of 7/1/2020 $ 8,662,162
Revenues
1/2 cent Sales Tax Revenues 11,806,887 Grant Funding (FEMA Safer Grant) 305,028 CARES Act/FEMA Funding 32,827 Fire Revenue Total 12,144,742
Personnel Expenditures 5,698,420
Supplies & Services 160,611
Utilities 49,581
Fire Vehicles, Outfitting, Maint., Fuel, etc. 460,591 City Support (IT, Finance, HR, City Attorney, etc.) 442,758 Fire Expenditure Total 6,811,962
Fire Fund Balance as of 6/30/2021 $ 13,994,941
Combined Police and Fire
Combined Measure A Fund Balance as of 7/1/2020 $ 21,966,331 Total Combined Revenues 24,141,085
Total Combined Expenditures 14,274,465 Combined Measure A Fund Balance as of 6/30/2021 $ 31,832,951
Conclusion
The Citizens Oversight Committee notes that this An nual Report refers only to the period from July 1, 2020 to June 30, 2021.
The Citizens Oversight Committee has reviewed the Independent Auditor’s Report on Compliance with Applicable Requirement prepared by the audit f irm of Lance, Soll and Lunghard (LSL), the Measure A Spending Plan, and various expenditure an d revenue reports prepared by the City staff. In its report dated June 30, 2021, the audi tor “did not identify any deficiencies in internal control over compliance…”. Further, it was the aud itor’s opinion that “the City complied, in all material respects, with the types of compliance tha t could have a direct and material effect on the requirements…” of the 2018 Measure A Sales Tax Fund.
We would like to acknowledge City staff for their d edication and support to the COC. They have been responsive as we work to ensure transparency in the reporting of Measure A Funds.
Attachment A – Fiscal Year 2020/21 Auditor’s Measure A Report on Compliance Attachment B – Fiscal Year 2020/21 Measure A Financial Report (For Informational Purposes Only) &,7<2)&+8/$9,67$&$/)251,$
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CITY OF CHULA VISTA, CALIFORNIA
2018 MEASURE A SALES TAX FUND
REPORT ON COMPLIANCE WITH THE
PUBLIC SAFETY EXPENDITURE PLAN
FOR THE YEAR ENDED JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Independent Auditors’ Report on Compliance with Applicable Requirements and on Internal Control Over Compliance ........................................................................................ 1
Schedules of 2018 Measure A Sales Tax Fund:
Balance Sheet .................................................................................................................................. 4
Statement of Revenues, Expenditures and Changes in Fund Balance ........................................... 5
203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022 INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH APPLICABLE
REQUIREMENTS AND ON INTERNAL CONTROL OVER COMPLIANCE
To the Honorable Mayor and Members of the City Council
City of Chula Vista, California
Report on Compliance
Opinion on the 2018 Measure A Sales Tax Fund
We have audited the compliance of the 2018 Measure A Sales Tax Fund of the City of Chula Vista, California (the “City”) with the requirements described in Ordinance No. 3415 (the Ordinance) and the Public Safety Expenditure Plan (the Spending Plan) for the year ending June 30, 2021.
In our opinion, the City complied, in all material respects, wi th the types of compliance that could have a direct and material effect on t he requirements referred to abov e applicable to the City for the year ended June 30, 2021.
Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to fi nancial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States; and t he requirements described in the Ordinance and the Spending Plan. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control o ver compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s government programs.
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an aud it conducted in accordance with GAAS and Government Auditing Standards will always detect material noncompliance when it exists. The
To the Honorable Mayor and Members of the City Council
City of Chula Vista, California
risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individuall y or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements described in the Ordinance and the Spending Plan.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the compliance requirements referred to above, we:
Exercise professional judgment and maintain professional skepticism throughout the audit
Identify and assess the risks of material noncompliance, wheth er due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City's compliance with the compliance requirements referred to above and performing such other proced ures as we considered necessary in the circumstances.
Obtain an understanding of the Ci ty’s internal control over co mpliance relevant to the audit in order to design audit procedures that are appropriate in the ci rcumstances and to test and report on internal control over compliance in accordance with the Ordinance and the Spending Plan, but not for the purpose of expressing an opinion on the effectivene ss of the City’s internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governan ce regarding, among other matters, the planned scope and timing of the audit, and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.
Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the norma l course of performing their assigned functions, to prevent, or detect and correct, noncompliance on a timely basis. A material weakness i n internal control over compliance is a deficiency, or combinatio n of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combinat ion of deficiencies, in internal control over compliance that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal cont rol over compliance was for t he limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant def iciencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified.
Our audit was not designed for the purpose of expressing an opi nion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.
2 To the Honorable Mayor and Members of the City Council City of Chula Vista, California
Purpose of this Report
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements described in the Ordinance and t he Spending Plan. Accordingly, this report is not suitable for any other purpose.
Brea, California
December 28, 2021
3 CITY OF CHULA VISTA
Pooled cash and investments 29,046,319$
Due from other governments 177,822
Advance to Transport Enterprise Fund 3,229,393
Total Assets 32,453,534$
Liabilities, Deferred Inflows
of Resources, and Fund Balance:
Liabilities:
Accounts Payable 65,878$
Accrued Liabilities 533,891
Total Liabilities 599,769
Deferred Inflows of Resources:
Unavailable revenues 20,814
Total Deferred Inflows of Resources 20,814
Assigned for Measure A Sales Tax 31,832,951
Total Fund Balance 31,832,951
Total Liabilities, Deferred Inflows
of Resources, and Fund Balance 32,453,534$
Fund Balance:
Assets:
JUNE 30, 2021
BALANCE SHEET
SCHEDULES OF 2018 MEASURE A SALES TAX FUND
4 CITY OF CHULA VISTA
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE FOR THE YEAR ENDED JUNE 30, 2021
Revenues:
Local sales and use tax 23,919,434$
Intergovernmental 221,651
Total Revenues 24,141,085
Expenditures:
Public safety 13,682,053
Capital outlay 592,412
Total Expenditures 14,274,465
Net Change in Fund Balance 9,866,620
Fund Balance - Beginning 21,966,331
Fund Balance - Ending 31,832,951$
SCHEDULES OF 2018 MEASURE A SALES TAX FUND
5 Department Type Budget Category Original Budget
Transfers/
Adjustments Revised Budget Actual Available % Budget Us ed 14-Police Revenue Charges for Services 0 0 0 0 0 0.00%
14-Police Revenue Other Revenue 0 0 0 0 0 0.00%
14-Police Revenue Use Money/Property 0 0 0 0 0 0.00%
14-Police Revenue Federal Revenue 0 (138,701) (138,701) (189,456) 50,756 136.59% 14-Police Revenue Transfers In (10,010,000) (1,796,887) (11,806,887) (11,806,887) 0 100 .00% 14-Police Revenue Total (10,010,000) (1,935,587) (11,945,587) (11,996,343) 50,756 100.42% 14-Police Expense Personnel Services 7,089,099 708,135 7,797,234 6,510,900 1,286,334 83.50% 14-Police Expense Supplies & Services 525,737 145 525,882 119,206 406,676 22.67% 14-Police Expense Utilities 0 0 0 0 0 0.00%
14-Police Expense Other Expenses 375,375 0 375,375 442,757 (67,382) 117.95% 14-Police Expense Other Capital 189,233 225,778 415,011 364,281 50,730 87.78% 14-Police Expense Internal Service 30,767 0 30,767 25,358 5,409 82.42% 14-Police Expense Transfers Out 0 0 0 0 0 0.00%
14-Police Expense Total 8,210,211 934,058 9,144,269 7,462,502 1,681,766 81.61% 14-Police Total (1,799,789) (1,001,530) (2,801,319) (4,533,841) 1,732,522 161.85% 15-Fire Revenue Other Agency Revenue 0 0 0 0 0 0.00%
15-Fire Revenue Charges for Services 0 0 0 (632) 632 0.00% 15-Fire Revenue Other Revenue 0 0 0 0 0 0.00%
15-Fire Revenue Use Money/Property 0 0 0 0 0 0.00%
15-Fire Revenue Federal Revenue 0 (34,983) (34,983) (32,195) (2,789) 92.03% 15-Fire Revenue Transfers In (10,229,641) (1,773,113) (12,002,754) (12,111,915) 109, 161 100.91% 15-Fire Revenue Total (10,229,641) (1,808,096) (12,037,737) (12,144,741) 107,004 100.89% 15-Fire Expense Personnel Services 6,216,712 (17,831) 6,198,881 5,698,420 500,460 91.93% 15-Fire Expense Supplies & Services 203,405 83,771 287,176 160,611 126,565 55.93% 15-Fire Expense Utilities 0 0 0 49,581 (49,581) 0.00%
15-Fire Expense Other Expenses 375,375 0 375,375 442,758 (67,383) 117.95% 15-Fire Expense Other Capital 0 295,037 295,037 228,131 66,906 77.32% 15-Fire Expense Internal Service 37,789 0 37,789 13,518 24,271 35.77% 15-Fire Expense CIP Project Expense 0 0 0 0 0 0.00%
15-Fire Expense Transfers Out 218,942 0 218,942 218,942 0 100.00% 15-Fire Expense Total 7,052,223 360,976 7,413,199 6,811,962 601,237 91.89% 15-Fire Total (3,177,418) (1,447,120) (4,624,538) (5,332,779) 708,241 115.31% Grand Total (4,977,207) (2,448,649) (7,425,856) (9,866,620) 2,440,764 132.87%
CITY OF CHULA VISTA
2018 MEASURE A SALES TAX FUNDS
BUDGET OVERVIEW BY DEPARTMENT AND BUDGET CATEGORY
FOR THE YEAR ENDED JUNE 30, 2021
1 of 2 FY21 Measure A_Bgt Category