1 San José Community Oversight Committee (COC)
Measure T Annual Report for Fiscal Year 2023-2024
Sal Kumar – Deputy Director, Public Works Department
Gary Cunningham - Chair, COC
Shruti Chandrasekhar – Vice Chair, COC
Nicholas Cochran – District 6 Seat, COC
Agenda Item 3.5
March 4, 2025
• This Measure T COC annual report covers the most recent fiscal year ending June 30, 2024.
COC Findings and Conclusions FY2023-2024
The bond issuance and related expenditures have been reviewed by the COC to ensure that the proceeds have been:
• Used within the spending categories defined and authorized by Measure T
• Expended on a timely basis to ensure that the municipal bonds issued retain their tax-exempt status.
Measure T COC Report to the City Council
March 4, 2025
2 3
Measure T COC Report to the City Council
March 4, 2025
4 Measure T COC Report to the City Council
March 4, 2025
General Observations and Comments
1. Continued low rate of Measure T spending versus DPW’s planned spending continues to be a concern
• From July 2019 through June 2024, 79% of the $440.4 million issuance proceeds have been spent • The bond indenture requires that 85% of proceeds be spent within three years of issuance in order to qualify for the bonds’ requisite tax exemptions; the timing of any future bond issuance must take into account expected project spending rates to ensure continued compliance with the Measure T bond indenture and IRS regulations.
• Delays and/or deferrals of planned spending serve to push out completion of affected Measure T projects and increases the risk of serious cost overruns.
2. Public Safety Projects are at considerable financial/budget risk and are the most likely Measure T projects to be negatively affected by any further delays and/or future cost overruns.
• $70 million of realized and expected project overruns have already been funded from the $85 million public safety reserve leaving limited resources available to fund future shortfalls. 5 Measure T COC Report to the City Council
March 4, 2025
Specific Recommendations
1. Prioritize the Public Safety Projects Slated to Receive Measure T Funds • Establishing public safety project priorities enables the city council to make timely midcourse spending corrections, effect necessary project re-scoping, or make important project-shelving decisions, should such action(s) become necessary.
2. Fill Vacant COC Seats
• Four COC seats remain unfilled -- D7, Public Safety, Citywide Business and Citywide Finance/Accounting; filling these remaining seats lowers the risk of not being able to achieve a required quorum to conduct COC meetings 6 Measure T COC Report to the City Council
March 4, 2025
7 Thank You
Agenda Item 3.5
March 4, 2025
Sal Kumar – Deputy Director , Public Works Department
Gary Cunningham - Chair, COC
Shruti Chandrasekhar – Vice Chair, COC
Nicholas Cochran – District 6 Seat, COC