June 30, 2023. The Measure H Oversight Board (the Board) has the following responsibilities:
1) Meet quarterly to review all revenues and expenditures of funds from the authorized Measure H sales tax.
2) Review annual audit reports related to the Measure H sales tax. 3) Provide at least one written annual report to the City Council at a public meeting summarizing the Measure H Oversight Board findings.
DISCUSSION:
During each fiscal year, the Measure H Oversight Board held meetings on a quarterly basis and received presentations that showed the spending on funds associated with the Council approved Measure H Spending Plan. As part of their duties, members of the Measure H Oversight Board also received copies of the Measure H audited financials and a presentation from the external auditor, Vasquez + Company, LLP, on the Measure H Fund.
For the Board’s first Annual Report, the decision was made to form a sub-committee composed of three (3) of the Board’s members to focus on design, key components to be included in the annual report, and potential recommendations. The sub-committee worked with City Staff to finalize the various sections to be included in the report. These were then incorporated into a draft version and then discussed by the full Measure H Oversight Board Committee at a board meeting for review and comments. After multiple meetings and input from the sub-committee and the Measure H Oversight Board, the final design of the report was decided, and the Measure H Oversight Board’s conclusions were finalized.
The main components included in the Measure H Oversight Board Annual Report for Fiscal Year 2025 are as follows:
• Introduction
• Measure H Fund 2025 Financials Summary
• Revenue and Expense Highlights
• 2025 Measure H Program Highlights
• Overview of the Fiscal Year 2025-26 Spending Plan
• Measure H Oversight Board Conclusions
The report is a culmination of the time and effort of the members of the Measure H Oversight Board and their commitment to ensuring that the City has spent Measure H funds according to the language provided on the ballot that was approved by the voters.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
CEQA/NEPA REQUIREMENTS:
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Finance Committee, June 22, 2026
2025 Measure H Oversight Board Annual Report
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
Motion accepting the informational 2025 Measure H Oversight Board Annual Report and forwarding to Council for acceptance and approval.
Approved by:
Stephan Christensen, Office of Performance
Management and Budget Director
Joseph P. Lopez, City Manager
Attachments:
1. 2025 Measure H Oversight Board Annual Report
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Annual
Report
Annual MEASURE
H
2025
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TABLE OF
CONTENTS
Brief summary of Measure H and
its history. Including a description
of the responsibilities of the
Measure H Oversight Board.
04 Introduction
Detail of revenues and expenses
for Measure H that were approved
by the City Council and expended
during Fiscal Year 2024-25 and a
summary of fund balances.
06 Measure H Financials
Highlights of program
expenditures for the fiscal year by
department. Showcasing the work
that was carried out in Fiscal Year
2024-25. 08
Expense Highlights
Summary of the approved
spending plan adopted by City
Council for the new fiscal year
2025-26.
Measure H Oversight Board Members.
Measure H Oversight Board
14 Final conclusions and
recommendations from the
Measure H Oversight Board to the
City Council.
Conclusions
1512
FY 2025-26 Spending Plan
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Ballot Language: While the
Measure H Sales Tax is a
general sales tax and can be
used for any purpose, the
ballot measure included a list
of examples of types of
expenditures that the tax
would be used for such as
police patrols, gang, drug, and
crime prevention; fire
protection, paramedic/911
emergency response,
addressing homelessness;
cleaning-up trash and illegal
dumping; keeping streets,
parks, sidewalks, landscapes
and infrastructure safe, clean,
and well-maintained.
Ingoude Company 3
Measure H Annual Report 03
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The Measure H Oversight Board is composed of nine Modesto residents representing a broad cross-section of the
community. Established to review all revenues and
expenditures related to Measure H sales tax revenue, the Board plays a vital role in ensuring that voter-approved funds are spent responsibly and in alignment with the intent of the measure.
Measure H Oversight Board
Measure H is a one-cent sales tax that was approved by
Modesto voters to fund general city services in November 2022.
On November 29, 2022, the City Council certified the election results via Resolution 2022-453 and Measure H Sales Tax started its collection on April 1, 2023.
History
1. Review all revenues and expenditures of funds generated from the sales tax authorized by the voter approved
Measure H.
2.Review annual audit reports related to the Measure H tax measure as provided.
3.Make at least one (1) annual report to the City Council at a public meeting summarizing the Measure H Oversight
Board’s findings.
Oversight Board Responsibilities
INTRODUCTION
The Modesto voters passed
Measure H with a vote of:
Key Facts about
Measure H
Initial estimates for revenue to be
generated from the Measure H Sales
Tax were $39M annually. Since that
time revenues have exceeded $40+
million on an annual basis.
63% - Yes
37% - No
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Description FY 2024-25 Budget FY 2024-25 Actuals
REVENUES:
Measure H Sales Tax
Revenue $42,809,800 $47,211,026
Other Misc. Revenues $301,713 $3,507,263
Total Measure H
Revenues $43,111,513 $50,718,289
EXPENDITURES:
General Government $1,420,275 $1,405,677
Community Development $4,848,729 $1,642,724
Fire Protection $11,357,265 $2,035,770
Police Protection $12,684,517 $9,395,931
Parks and Recreation $16,315,522 $7,256,956
Public Works $4,921,671 $4,449,469
Capital Outlay $3,406,683 $1,467,584
Total Expenditures $54,954,662 $27,654,111
Transfers In $10,997,550 $-
Transfers Out $(12,131,252) $(8,548,686)
Net Transfers In/Out $(1,133,702) $(8,548,686)
Net Change in Fund
Balance $(12,976,851) $14,515,492
Fund Balance, Beg of Year $41,531,639
Fund Balance, End of Year $56,047,131
MEASURE H
FINANCIALS
The Fiscal Year 2024-25 Measure H Spending
Plan, approved by the City Council during
the annual budget process, included an
additional $22.2M in funding. This investment
supports new programs and positions,
including but not limited to:
Fiscal Year 2024-25 Measure H
Spending Plan Enhancements
$450,000 - Revolving Loan Funding for
Accessory Dwelling Unit (ADU)
Development
$350,000 - Continued Funding for the
Downtown Streets Team
$320,000 - Purchase of Six LifePaks and
Six Lucas Devices for the Fire Department
$3.74M - Transition of personnel to the
Measure H Fund including:
5 Community Service Officer (CSO) II
positions
6 Traffic Safety Division positions
9 Police Officers
$5.05M - Additional Funding for High
Priority Deferred Maintenance and
Preventative Maintenance Projects in City
Parks
$2.8M - Continued Funding for Forestry
Operations and Sidewalk Repairs
06 Measure H Annual Report
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21% 21% 6% 2% 6%2%8%2%3%
Measure H Sales Tax
Other Miscellaneous Revenue
FY 2022-23 FY 2023-24 FY 2024-25
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
Fiscal Year
Measure H Sales Tax $11,116,219
$584
$47,954,202
$1,234,596
$38,848,465
$1,222,230
6%3%
FISCAL YEAR 2024-25 MEASURE H
EXPENDITURE BY CATEGORY
2% 6%2%8% 21% 2%18% 21%
21%
21%
18%
11%
8%
6%
6%
3% 2% 2% 11%
Equipment 2%
Sidewalk 2%
Administrative Support 2%
Park Improvements
Public Safety
Fire/EMS
Transfer to General Fund
Homelessness
Blight Abatement
Forestry
Deferred Maintenance
MEASURE H REVENUE HISTORY
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Measure H Position History
0 10 20 30 40 50 60
FY 2023
FY 2024
FY 2025
Position Count
20 57
46 City Clerk's Office Comm & Econ Dev Human Resources Office Perf Mgmt & Budg City Attorney's Office Eng Serv Dept
Information Technology
Finance Dept
Fire Dept
Public Works Dept
Parks, Recr & Neigh Dept
Police Dept
0 20
40 60
80 1 1 1 1 2 2 2 3
9 12 14
75 EXPENSE HIGHLIGHTS
Since its passage, Measure H has enabled
the City of Modesto to expand services that
enhance the quality of life for residents.
These improvements have been made
possible by increased the number of City
jobs that support Measure H programs.
Through Fiscal Year 2024-25, Measure H has
funded the addition of 123 full-time positions
across various departments within the
organization. The distribution of these
positions is shown in the charts below.
Measure H Position Counts by Department (as of FY 2024-25) 08 Measure H Annual Report
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24 Individuals Served
280 Parks Litter Abatement
Beautification Hours
46 Needles Removed from
Parks
An additional $350,000 was allocated for the
second year of funding for the Downtown
Streets Team (DST). This support enabled the
expansion of a second 25-member team
focused on blight abatement in City parks and
recreation facilities. During the fiscal year, it is
estimated that the team removed 509,000
pounds of debris and 191 needles from these
public spaces.
Downtown Streets Team
COMMUNITY & ECONOMIC DEVELOPMENT
DEPARTMENT
Map of Parks Cleaned by DST
Measure H Annual Report 09
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Addition of Three Police
Technicians Positions
Addition of One Senior
Police Technician
Addition of One Police
Civilian Manager Position
The Modesto Police Department received $6.1
million in Measure H funding. This allocation
supported the addition of non-sworn
personnel in the Real Time Crime Center
(RTCC), enhancing the department’s
capacity to manage calls for service, monitor
camera feeds, and support in field operations
with real time information. The funding also
transitioned select positions from the General
Fund to Measure H, laying the groundwork for
future expansion of the Traffic Safety Division,
improving patrol coverage, traffic
enforcement, and overall safety for Modesto.
Downtown Streets Team
MODESTO POLICE DEPARTMENT
Real Time Crime Center Positions
Traffic Safety Division Positions
Movement of One Police
Sergeant Position
Movement of Four Police
Officer Positions
Movement of One Police
Community Service Officer Position
10 Measure H Annual Report
Traffic Safety Division - Citations
0 2000 4000 6000 8000 10000 12000 14000
2023
2024
2025
# of Citations
Fiscal Year
5170
7712
13685
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EMS Division - Medic 1 Response Calls
0 200 400 600 800 1000 1200
2023
2024
2025
# of Calls
Fiscal Year
79 373
1087
The Modesto Fire Department received $9.78M in
Measure H funding via a Council action during the
fiscal year. This funding enabled the purchased of
eight (8) new apparatus, including one (1)
Wildland Pumper Vehicle, five (5) Engines, and two
(2) Trucks. Additionally, the department was
allocated $320,000 to acquire six (6) LIFEPAK 15
units and six (6) LUCAS devices, enhancing the
department’s capacity to deliver life-saving care
during medical emergencies.
MODESTO FIRE DEPARTMENT
Calls Responded Through Measure H
Measure H Annual Report 11
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4,610 Trees Pruned
55 Trees Removed
441 Stumps Removed
FY 24-25 Forestry Contractor Work
The Forestry Division received $1.65 million in
Measure H funding, $550,000 was allocated
for contracted services including pruning, tree
removal, and stump grinding, while
$1,094,350 was designated for the City’s
Reforestation program.
The Reforestation program is critical following
the City’s recent tree removals and stump
grinding work. Replanting new trees is
essential to preserving and enhancing
Modesto’s urban tree canopy, specific areas
within the city have been prioritized in the first
phase of reforestation.
PUBLIC WORKS FORESTRY DIVISION
12 Measure H Annual Report
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1 $7.87M for the Dr. Martin Luther King Park Renovation Project Funding
2 $926,000 for the Move Alternative Response Unit
(ARU) Operations to Measure H
FY 2025-26 SPENDING PLAN
Measure H Spending Plan
The Measure H Spending Plan is adopted annually by City Council and serves as the official authorization for department expenditures funded by Measure H in the upcoming fiscal year.
Fiscal year 2025-26 Measure H Spending Plan
Highlights
Below are key highlights from the City Council approved Fiscal Year 2025-26 Measure H Spending Plan. The Spending Plan includes $13.6 million in funding for new programs, $25.7 million in ongoing support for existing initiatives, and $13.6 million allocated to the General Fund to help address the City’s structural deficit.
$794,000 for an Addition of five (5) Police Officer
Positions
$761,000 for the Cesar E. Chavez Park Renovation
Project Funding
$500,000 - Measure H - High Priority Deferred
Maintenance Needs
3 4
5 14 Measure H Annual Report
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6 $500,000 Measure H funding for High
Priority Preventative Maintenance Needs
7 $466,000 to Move Modesto Police
Department Air Support Operations to
Measure H
$427,000 to Move Modesto Police
Department Area Command Operations to
Measure H
8 $400,000 for the Purchase of an Armored
Vehicle for the Modesto Police Department 9
$260,000 for the Purchase of a Rentable
Community Stage 10
$255,000 for a Radio Maintenance Program
and Wildland Web Gear Funding for the Fire
Department
11 $155,000 to Convert 2 existing Modesto
Police Officer positions to 2 Sergeant
allocations
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INVESTING IN
MODESTO’S FUTURE
16 Measure H Annual Report 231
MEASURE H OVERSIGHT
BOARD CONCLUSIONS
We find that the Measure H funds were
spent by the City according to the
language provided on the ballot and
approved by the voters.
We find that the Measure H funds were
spend appropriately on the Council
approved Fiscal Year 2024-25 Spending
Plan Items and within budget.
We find that the Measure H funds
successfully passed the single audit
performed by the external auditors with
no findings.
Measure H, the voter approved one-cent sales
tax, is an actionable voter initiative where every
dollar spent in Modesto makes a difference.
From the streets we walk down, to the services
we rely on, supporting our local businesses
helps our families, our neighbors, and our City
grow together.
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Measure H Annual Report 17
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Prepared By :
Board Members:
Measure H Oversight Board
District 1 - Lynn Dickerson
District 2 - Vacant
District 3 - Kirstie Boyett-Zacharias
District 4 - Chris Guptill
District 5 - Mike Kelly
District 6 - Jesse Franco
At-Large - Michael Moradian
At-Large - Aaron Anguiano
At-Large - Vacant
City of Modesto
1010 10 Street th
Modesto, CA 95353
Scan the QR Code to
Watch the Measure H
Short Film Now!
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CITY OF MODESTO
COMMITTEE AGENDA REPORT
DATE OF MEETING:
June 22, 2026
Date: April 23, 2026
.
TO: Finance Committee
David Wright, Chair
Nick Bavaro, Vice-Chair
Rosa Escutia-Braaton, Member
THROUGH: Joseph P. Lopez, City Manager
FROM: DeAnna Christensen, Director of Finance
Jessica Hill, Director of Community and Economic Development SUBJECT: Community Facilities District No. 2024-1 (Tivoli) Bond Issuance CONTACT: DeAnna Christensen, Director of Finance,
[email protected], 209-577-5387
DESCRIPTION:
Consider the sale and issuance of Special Tax Bonds for Community Facilities District No. 2024-1 (Tivoli) in the aggregate principal amount not to exceed $12,000,000; and forwarding to Council for approval. (Funding Source: Community Facilities District No. 2024-1 Improvement Area No. 1Annual Facilities Special Taxes) STRATEGIC PLAN ELEMENT:
This item supports the City of Modesto 2025-2026 Strategic Plan; Goal D to provide safe, efficient, and reliable infrastructure through proactive community investment, maintenance and sustainability efforts.
BACKGROUND:
In 1982, the Mello-Roos Community Facilities Act of 1982 (Act)1 was adopted by the State of California as a method for financing infrastructure improvements and services associated with new developments. The Act allows infrastructure improvements and services to be funded through a special tax paid by property owners. 1 Mello- Roos Community Facilities Act of 1982 -
https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=GOV&division=2.&title=5.&part=1.&chapter=2.5.&article =
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Finance Committee, June 22, 2026
Community Facilities District No. 2024-1 (Tivoli) Bond Issuance
The Tivoli Specific Plan, approved by City Council in 2008 by Ordinance No. 3479-C.S., is a 454-acre area located in an unincorporated area of Stanislaus County. The project is located within the City of Modesto’s Sphere of Influence. The site is bounded by the planned Claratina Avenue on the north, Oakdale Road on the west, Sylvan Avenue on the south, and Roselle Avenue on the east. Tivoli Specific Plan provides for uses including commercial, school, parks, and residential development of a variety of densities as outlined by the land use diagram and development standards of the Specific Plan.
On August 13, 2024, by Resolution No. 2024-279, the Council approved the Resolution of Intention to form City of Modesto Community Facilities District (CFD) No. 2024-1 (Tivoli) to establish improvement area No. 1, designate a future annexation area and authorize the levy of a special tax within said Community Facilities District. The City Council also approved a Resolution to Incur Debt by Resolution No. 2024-280. On September 24, 2024, by Resolution No. 2024-354, Council approved the formation of City of Modesto Community Facilities District No. 2024-1 (Tivoli) (“CFD No. 2024-1”) pursuant to the Mello-Roos Community Facilities Act of 1982 and by Resolution No. 2024-355 Council declared the necessity to incur bonded indebtedness.
Community Facilities District No. 2024-1 and Improvement Area No. 1 therein are located in the Tivoli Specific Plan area. The proposed bonds will finance infrastructure improvements. Repayment of the bonds will be secured by a pledge of the Annual Facilities Special Tax levied on properties in Community Facilities District No. 2024-1 Improvement Area No. 1.
DISCUSSION:
City staff have established a financing team in collaboration with our Community Economic Development (CED) Department, with PFM Financial Advisors LLC (PFM) as the municipal advisor, Norton Rose Fullbright US LLP as bond and disclosure counsel, Goodwin Consulting as the CFD consultant, Integra Realty Resources (IRR) as the Appraiser, Piper Sandler & Co (Piper) as the underwriter, and U.S. Bank Trust Company as Fiscal Agent, to assist with the financing process.
The financing process will involve developing transaction documents including a transparent and accurate Official Statement (the primary disclosure document), completing an appraisal, pricing the bonds and finally closing the transaction and securing the funds. The bonds will not be rated by a rating agency. This is common for a CFD issuing new money bonds in the early development stage.
On behalf of the City, PFM solicited proposals from qualified underwriting firms and received six proposals, from Ramirez and Company, Raymond James, Stifel, Oppenheimer, HilltopSecurities, and Piper Sandler. After careful evaluation of qualifications and experience of the firm and the proposed team, structuring ideas, marketing strategy, distribution capabilities, pricing and overall responsiveness to the Request for Proposal (RFP), Piper Sandler was selected to serve as the underwriter on #10..
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Finance Committee, June 22, 2026
Community Facilities District No. 2024-1 (Tivoli) Bond Issuance
this deal. Piper Sandler demonstrated a wide range of experience with CFD bond financing and addressed several of the key criteria defined in the RFP.
The City is required to conduct an appraisal on property within the Tivoli CFD to estimate the market value of the subject property to establish value-to-lien ratios in the CFD. The City’s Policy requires a minimum 3-to-1 value-to-lien and the ratio is also a very important investor consideration. City staff solicited an informal RFP for Community Facilities District Appraiser. The City received two (2) proposals and based on experience, appraisal approach, and level of service, City staff recommended to award the Agreement to Integra Realty Resources for a base fee amount not to exceed $35,000. IRR will prepare a detailed appraisal report which will be included in the disclosure document and serve as the basis for establishing the value-to-lien ratio.
This CFD bond issuance will also incorporate a Continuing Disclosure Agreement to allow the Underwriter to comply with Rule 15c2-12(b)(5) of the Securities Exchange Act of 19342. This agreement will define requirements for continuing disclosures to investors, to ensure the City provides notice of the occurrence of certain material events relating to the outstanding securities that are likely to be of a material interest to bondholders or potential investors. Additionally, the City would be required to disclose annual financial information including audited financial statements and defined reporting requirements.
The CFD bond issuance will also incorporate a Fiscal agent Agreement with a Fiscal agent who will serve as the independent third-party custodian responsible for managing the CFD’s funds, administering its bond debt, and protecting the interests of both the municipal issuer and the bond investors. U.S. Bank will serve as the Fiscal Agent for this bond issuance.
The CFD bond issuance will also incorporate a Bond Purchase Agreement between the City and the underwriter Piper Sandler. Per the agreement the underwriter agrees to purchase the bonds at the negotiated fixed price or purchase price. It locks in the interest rates and the underwriter fees for the bond issue, FISCAL IMPACT:
There will be no fiscal impact on the City from issuance of the Tivoli CFD bonds. All costs of issuing the bonds will be paid from bond proceeds.
CEQA/NEPA REQUIREMENTS:
This item does not constitute a “project” within the meaning of California Environmental Quality Act (CEQA) Guidelines Section 15378 and requires no environmental review.
RECOMMENDED COMMITTEE ACTION:
Staff Recommendations:
2 https://www.treasurer.ca.gov/cdiac/mmra/sec15c2-12.asp #10..
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Finance Committee, June 22, 2026
Community Facilities District No. 2024-1 (Tivoli) Bond Issuance
Motion recommending the sale and issuance of Special Tax Bonds for Community Facilities District No. 2024-1 (Tivoli) in the aggregate principal amount not to exceed $12,000,000 and forwarding to Council for approval.
Approved by:
DeAnna Christensen, Director of Finance
Jessica Hill, Director of Community and
Economic Development
Joseph P. Lopez, City Manager
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