Measure K Transaction and Use Tax Oversight Committee
To: Pleasant Hill City Council
From: Measure K Oversight Committee
Date: April 2026
Re: Annual Report on the Measure K Transaction and Use Tax - FY 2024–25 Pleasant Hill voters approved Measure K, a 20-year ½-cent transaction and use tax (TUT), in November 2016. The TUT took effect on April 1, 2017, with the stated purpose of “providing and maintaining Pleasant Hill City services and facilities, including fixing potholes and repairing neighborhood and city streets; replacing the aging library with a 21st-century facility, including space for after-school homework and tutoring; creating additional walking and biking paths; maintaining storm drains; and other city services.” On February 6, 2017, the City Council established the Transaction and Use Tax Oversight Committee—known as the Measure K Oversight Committee. The Committee’s primary duties are to:
1. Review revenue and expenditure reports prepared by City staff;
2. Determine whether revenues are expended efficiently and effectively; and
3. Make recommendations to the City Council as appropriate, including submission of an annual report.
Committee Review Process
To review FY 2024–25 Measure K revenues and expenditures for FY2024-25, the Committee conducted the following activities:
November 18, 2025:
City staff presented unaudited FY 2024–25 revenues and expenditures, along with a historical summary of Measure K activity since inception. Committee members asked questions regarding expenditures associated with the library, streets and roads, pedestrian and bicycle improvements, storm drain work, the pond and fountain project and administrative costs. A subcommittee consisting of Marshall Lewis and John Pollock, conducted a detailed transaction review.
December 4, 2025 – January 29, 2026:
The sub-committee met with Chief Financial Officer Erick Cheung and received detailed Measure K transaction data. The subcommittee selected a sample of five transactions, and reviewed supporting documentation. Follow-up discussions were held with Public Works Director Ann James to obtain clarification regarding certain items.
The subcommittee determined that all sample transactions were appropriate, properly authorized and consistent with Measure K objectives. The five transactions reviewed totaled $5.8 million, representing more than 90% of total Measure K expenditures for FY 2024–25.
City staff also provided documentation for approximately $5.5 million in Measure K sales tax revenue. The subcommittee independently verified amounts using information available from the California Department of Tax and Fee Administration’s website.
March 24, 2025:
The Committee received the final FY 2024–25 Measure K audit prepared by the City’s independent auditors, Macias Gini & O’Connell (MGO). Staff and MGO representatives answered questions from the Committee. Following discussion, the Committee approved the subcommittee’s findings and authorized submission of this annual report to the City Council.
Revenue and Expenditure Summary for FY 2024–25
Category Amount
Beginning Fund Balance $3,682,044
FY 2024–25 Revenues $5,614,690
Expenditures
• Library Construction $44,479
• Library Maintenance $470,939
• Other / Administration $3,992
• Debt Service $2,492,372
Total Expenditures $3,011,782
Transfers to other funds
• Police Department Roof $300,000
• Streets & Roads $1,110,000
• Pond & Fountain Project $1,908,071
Total Transfers out $3,318,071
Total Expenditures & Transfers $6,329,853
Category Amount
Ending Fund Balance* $2,966,881
* Although the ending fund balance was approximately $2.9 million, a significant portion these funds have been earmarked for specific purposes. This includes a $2.5 million reserve contingency approved by City Council resolution 13-23, a $255,000 library maintenance reserve approved by City Council, and approximately $121,000 remaining in bond proceeds for the library construction.
Program Status
FY 2024–25 expenditures reflect the continued maturation of the Measure K program.
Library construction is substantially complete, with only minor punch-list work items remaining, and expenditures have shifted primarily to ongoing maintenance and debt service.
Approximately 40% of annual Measure K sales tax revenues are used for debt service on the BMO loan, with the remaining funds supporting library maintenance, streets and roads, the pond and fountain project, and the Police Department roof replacement.
The Committee noted that funds were allocated to the Police Station Roof and Pond & Fountain projects during FY 2024-25. These represent the first-time capital projects funded by Measure K that were not specifically enumerated in the original ballot language. As the expenditures for these projects are expected to occur in FY2025-26, the Committee intends to include in our review next fiscal year.
Summary of Basis for Committee Recommendation
The Committee’s conclusion is based on:
1. City staff’s presentation on December 4, 2025, including detailed revenue and expenditure information and responses to Committee questions;
2. The subcommittee’s review of transaction-level detail, supporting documentation, and independent verification of sales tax receipts; and
3. The March 24, 2025, audit presentation by MGO, which concluded that the FY 2024–25 financial statements “presented fairly in all material respects the financial position of the Fund as of June 30, 2025, and changes in its financial position for the year then ended.”
Conclusion
The Measure K Oversight Committee concludes that Measure K revenues were expended efficiently and effectively during FY 2024–25.
The Committee expresses its appreciation to the Finance and Public Works staff for their professionalism, assistance, and clarity in responding to Committee inquiries.
Respectfully submitted,
John Pollock
Chair, Measure K Oversight Committee