Consent Item 3a
STAFF REPORT
City Council Discussion Item
DATE: April 24, 2023
TO: Honorable Mayor and Council Members
FROM: Measure E Independent Advisory Committee
THROUGH: Aaron Felmlee, Finance Director
Merritt Perry, City Manager
SUBJECT: Measure E Committee Recommendations to Council for Fiscal Year (FY) 2023-24
Measure E Funds
STAFF RECOMMENDATION:
Receive report as an informational item.
EXECUTIVE SUMMARY:
For Fiscal Year-24, the projected amount to be received from Measure E revenues is $1,893,000. For reference the City projected to receive $1,937,400 last year. The City Council in previous fiscal years has approved expenditures in the amount of $1,488,108, presented in table 1 below, for additional positions and funds to cover the general fund deficit that the Measure E committee concurred did not need to come back for consideration in future funding years. This left the committee with $404,892, approximately $380,000 less than last fiscal year, to allocate to Staff and Public recommended expenditures.
SOURCES:
Measure E Revenues $ 1,893,000
USES:
Pay and Benefits:
Parks and Recreation Director 123,905
Recreation Program Supervisor 63,916
Field Community Services Officer 94,559
(2) Police Officer - Detective 395,917
Police Records Clerk 63,140
Transfer to Other Funds
General Fund 100 (To Cover Deficit) 740,671
Transit Fund 590 (Medical Trips to Eureka) 6,000
Total Uses 1,488,108
Net Sources (Uses) $ 404,892
FY 2023-24 MEASURE E
PRIOR EXPENDITURES APPROVED BY COMMITTEE
Consent Item 3a
The Measure E Committee held a Special Meeting on April 4, 2023 at 5:30 p.m. in the Council Chambers. City staff from various departments presented proposals generated by community input, public comments, and staff for use of the Fiscal Year 2023-24 Measure E funds for the Committee to review. The Measure E Committee voted unanimously on a motion to recommend the Fortuna City Council consider approving the uses outlined in Exhibit A “FY 2023-24 Measure E Summary”.
For the first time the Committee’s recommendation this year includes funding projects from reserves.
The projects funded from reserves include the Police Facility Project, Street Maintenance Projects, Newburg Park Acquisition Improvements, Fortuna Senior Center Program MOU, and if the County does not include it in the Measure Z recommendation list the DTF Officer Position will be paid for from reserves for next year. All these projects were deemed by the Committee as good one time projects and a good use of the reserves that have been built up over the last two years from Measure E revenues.
Currently, the City is estimating that Measure E will have contributed over $4 million to General Fund Reserves at the end of fiscal year 2022-23. After the committee’s FY 23-24 recommendations utilizing reserves the City is estimating that Measure E would still have a fund balance of $2 million which is twice the City’s stated reserve policy goal of 180 days of operating expenditures. Additional detail on both General Fund and Measure E Fund reserves will be presented at the Special Budget Workshop.
A Committee Member has graciously volunteered their time this morning to present the funding list to the City Council and be available for any questions the City Council may have in regards to the funding list.
RECOMMENDED COUNCIL ACTION:
Receive Measure E Committee recommendations for proposed use of FY 2023-24 Measure E Funds as an informational item.
ATTACHMENTS:
Exhibit A: FY 2023-24 Measure E Summary