ATTACHMENT C
DRAFT
Transactions and Use Tax
Measure A Citizens’ Advisory Committee
Annual Report for Fiscal Year 2020-21
DRAFT ATTACHMENT C
Stockton, California
Citizen’s Advisory Committee, Measures A & B
Annual Report for Fiscal Year 2020-21
Measure A:
Measure A was a general transaction and use (sales) ballot initiative introduced by the City of Stockton and passed by 51.85% voter approval. The three-quarter (3/4) cent tax increase became effective on April 1, 2014. A citizen’s oversight committee was established to review the use of tax proceeds.
The Ordinance states that the proceeds of the taxes imposed by this ordinance may be used for any lawful purpose of the City, as authorized by ordinance, resolution, or action of the City Council. All proceeds of the tax are collected to the City’s General Fund.
Measure B:
Measure A was accompanied by Measure B, a non-binding
advisory measure to communicate the priorities and opinion of the voters. The voter-approved Measure B advises that 65% of the new revenues should be cumulatively prioritized for law enforcement and crime prevention services over 10 years, such as those described in the City’s Marshall Plan on Crime. This 65% portion funds three initiatives: 120 approved sworn positions, an expanded Office of Violence Prevention, and Neighborhood Betterment Teams. The remaining 35% is advised to prioritize funding the City’s efforts to end the bankruptcy and improve services for residents, businesses, and property owners.
The Measures A and B Implementation Plan approved by Council on February 25, 2014 introduced an expenditure plan for law enforcement and crime prevention authorizing 163 new staff positions including 120 police sworn, 31 Police civilian, 7 Office of Violence Prevention, and 5 administrative positions to be phased in over four fiscal years.
Measure A Citizen’s Advisory Committee Charter 2.2.3 Annual Reports The Charter tasks the Committee with preparing an annual written report to include the following:
• A statement indicating whether the City is in compliance with the purposes set forth in the applicable ballot measures with respect to the tax proceeds. • A review of tax revenues and expenditures to verify that amounts collected were expended for the purposes set forth in the applicable ballot measure with respect to the tax proceeds. • A review of the City’s progress in implementing the recommendation of the Marshall Plan on Crime, including the hiring of 120 additional police officers and other investments. • A summary of the Committee’s Proceedings and activities for the Preceding Year.
DRAFT ATTACHMENT C
Summary of Committee’s Proceedings and Activities for the Preceding Year:
The Committee met in public forum three (3) times during Fiscal Year 2020-21. Agendas and minutes are available on the City’s website:
www.stocktonca.gov/MeasureA
www.stocktonca.gov/bconlinemeetings
Measure A Tax Revenue Collected in Fiscal Year 2020-21
The amount of General Fund revenue collected by the City of Stockton from the Measure A 3/4 cent transaction and use tax for Fiscal Year 2020-21
was $40,810,516.
Measure A Funded Police & OVP Expenditures
Police 26,248,290
Office of Violence Prevention (OVP) 954,516
Total Measure B Expenditures 27,202,806
Measure B portion of total receipts 67%
Law enforcement and crime prevention services
were funded by 67% of Measure A revenue,
exceeding Measure B advisement by 2%. The
remaining 33%, in the amount of $13,607,710,
was made available to improve the other general
service areas recommended by Measure B.
Measure A tax funds uses include the City’s bankruptcy exit plan, restoring reserves, replacing failing assets, and preparing for the next economic downturn. The $13.6 million not spent on the Law Enforcement and Crime Prevention Expenditure plan was 5% of FY 2020-21 General Fund Revenue and contributed toward restoring the General Fund reserves, which are used for the following expenditures:
• Bankruptcy Settlement
• Administrative Personnel Supporting
Public Safety
• Cost of collecting the Measure A tax
• Cost increases on existing services
• Council Priority Projects
• Restored Public Safety Programs
• New projects and services approved in
FY 2020-21. Some examples include
police body worn camera expansion,
homeless encampment clean-ups,
training for additional helicopter pilots,
and a $10 million radio infrastructure
replacement project.
In FY 2020-21, the Police Department made up 55% or $136 million of the City’s General Fund budgeted expenditures.
Salaries, 85%
Fuel, Equipment,
and Supplies, 2%
Supporting
Services, 10%
Training, 2%
Measure A Funded Police & OVP
Expenditures by Type
DRAFT ATTACHMENT C
The table below, which was reviewed by the committee, reflects the updated actual revenue and expenditures for the past eight (8) fiscal years.
Actual and Projected Use of Measure A Sales Tax Revenues Over Ten Year Period
Actual Actual Actual Actual Actual Actual Actual Actual Budget Projected ($ in Millions) 13-14 14-15 15-16 16-17 17-18 18-19 19-20 20-21 21-22 22- 23 23-
24 Sales Tax Revenue $6.6 $27.8 $29.3 $30.0 $31.7 $34.6 $34.3 $40.8 $36.1 $41.6 $32.3
Marshall Plan $0.0 $5.1 $12.9 $18.3 $22.5 $24.2 $25.9 $27.2 $31.5 $32.1 $24.9 % Annual Use of Tax 0% 18% 44% 61% 71% 70% 76% 67% 87% 77% 77% % Cumulative Use 0% 15% 28% 39% 47% 52% 56% 58% 62% 64% 65%
Bankruptcy Recovery $6.6 $22.7 $16.4 $11.8 $9.3 $10.3 $8.4 $13.6 $4.7 $9.5 $7.4 % Annual Use of Tax 100% 82% 56% 39% 29% 30% 24% 33% 13% 23% 23% % Cumulative Use 100% 85% 72% 61% 53% 48% 44% 42% 38% 36% 35% Measure A is a general tax and the obligations set forth in Measure B are advisory. After the crime prevention and law enforcement expenditure plan has been funded, any remaining funds are made available for other general service delivery areas as recommended by the Measure B voter opinion.
Progress Report on Implementing the Marshall Plan on Crime Police Department
Police Staffing
Prior to Measure A, Stockton had 365 authorized positions for sworn officers with 347 positions filled.
The Marshall Plan authorized an additional 120 sworn officer positions for a total of 485 sworn officer positions. The additional positions have been authorized and allocated for in each budget year since then, and 92% of the positions were filled as of June 30, 2021.
During FY 2020-21, 53 Police Officers were hired. At the end of the FY 2020-21, filled positions for sworn officers was at 444. Measure A funded staffing had a net loss of seventeen (16) sworn officers, 347
387 409
445 470 467 460
444
365
405 445 485
6/30/2014 6/30/2015 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 Authorized and Filled Sworn Police Officer Positions
Filled Sworn Positions Authorized Sworn Postions
DRAFT ATTACHMENT C
hiring 37 officers and experiencing 53 departures. Government agencies, especially police departments, are experiencing staff shortages across the nation.
In addition to providing funding for 120 sworn officers, Measure A also provided funding for 33 unsworn civilian law enforcement support and crime prevention personnel. At the close of the fiscal year, eight (8) of these positions were open.
Police Equipment and Infrastructure
Additionally, Measure A funds were used during the year to improve facilities and equipment for Police Officers. As of June 2021, a total of 342 portable and 70 mobile radios have been put into service; the Police Department office space has been renovated to make more room for operations; the police records and dispatch systems have been upgraded; and an additional upgrade had been programmed to link the police records and dispatch systems to the Fire Department’s system.
Neighborhood Betterment Teams
During the Fiscal Year, Neighborhood Betterment Teams completed three missions, resulting in 1,266 inspections, 346 enforcement actions, 4 property clean-ups or abatements, 5,730 square feet of graffiti removal and 11 Abandoned Vehicle Abatement (AVA) Citations.
Office Of Violence Prevention
A critical component of the Marshall Plan, the Office of Violence Prevention (OVP), manages several initiatives to prevent and reduce violent crime in the City. In Fiscal Year 2020-21, the OVP had 14 authorized positions, with two (2) vacancies. Seven of these positions are funded through Measure A.
The OVP works strategically and directly with high-risk community members to prevent violence before it occurs.
During 2021, the OVP highlighted the following services that were provided to the community:
• 75 Employment Placements
• 43 Social Services
• 36 Educational Advancements
• 53 Housing Assists
• 33 ID & DMV Issues
• 10 Family Relocations
Mission Critical Project Expenditures
At June 30, 2021, 3 Mission Critical Projects remain active, including the Police Communications System Upgrade, the IT- Enterprise Resource Planning System, and the Parks Irrigation Controller Upgrade. Since the start of Measure A, 20 projects were partially or fully funded with Measure A funds. There were no expenses related to mission critical projects in the General Fund during FY 2020-21.
As of June 30, 2021, the funds used from Measure A revenues for the City's Mission Critical Projects have been exhausted.
DRAFT ATTACHMENT C
Effects of Measure A on Crime
In 2013, the Mashall Plan was initiated and the OVP was formed in response to one of the City’s worse years of violent crime. Since that year, violent crime in Stockton has not returned to pre-2013 levels. Homicides in Stockton have significantly decreased over the past decade, with 2021 seeing a 45% reduction compared to 2012, thanks to initiatives like Measure A, which supports the Police Department, violence prevention, and bankruptcy recovery. While these efforts have improved community safety, ongoing investment is essential to ensure Stockton's continued progress toward a safer and thriving city. Calendar year 2020 was an outlier year due to the Covid-19 pandemic.
Independent Audit and Attestation
The Ordinance requires that the proceeds of the tax imposed, as well as the expenditure thereof, shall be audited by an independent accounting firm. The City submits to a months-long audit of all General Fund Revenues and Expenditures according to Generally Accepted Accounting Principles using Generally Accepted Auditing Standards, performed by a team of independent Certified Public Accountants as part of its annual processes. This audit satisfies the requirements of the Ordinance and the ballot measure. At the Committee’s recommendation and the Council’s direction, a second auditing firm has been engaged to attest to the City’s compliance with the Agreed Upon Procedures (AUP) concerning Measure A, performed to the American Institute of Certified Public Accountants’ (AICPA) attestation standards.
The revenues collected under Measure A and the expenditures these revenues contributed toward are fully accounted for as an item in the audited financial statements found in the Annual Financial Report under “Sales – Levied by City” and “Expenditures, Current” on page 23 of the FY 2020-21 Annual Comprehensive Financial Report (ACFR). In addition, specific audited Measure A and B financial statements are found on page 143 of the ACFR.
The Independently Audited Financial Statements may be found at the following web address:
http://www.stocktonca.gov/government/departments/adminServices/finRep.html The Independent Attestation that the City complied with Agreed Upon Procedures may be found at the following web address: www.stocktonca.gov/MeasureA
49 58
71 32
49 49 49
55 33 34
56 39
0 10
20 30
40 50
60 70
80 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Homicides Per Calendar Year
Homicides