Measure A
Extension
First Public
Hearing
November 14, 2023
Agenda Item 16.1
Measure A Overview
• ¾ Percent Sales and Use Tax
• $36 million average in General Revenue each year (17%) • Tax will sunset after 10 Years
• Extension requires two Public Hearings to Adopt Findings 2 SUMMARY
Background
APPROVED BY VOTERS
Measures A and B were approved by voters as a General Tax.
MEASURE B
• Nonbinding advisory measure
• Created 120 new police positions
• Advised 65% prioritized for Law Enforcement & Crime Prevention AUDITS
Subject to the General Fund (ACFR) Audit, Agreed Upon Procedures Attestation, and Most recently an internal performance audit
HEALTHY CITY
Instrumental to a fiscally healthy City that can perform basic services for its Citizenry in response to the bankruptcy 3 Revenues
4 REVENUES
6.9 28.4
29.4 30.4
31.5 32.7
33.8 35.0
36.2 37.5
29.1 6.6
27.8 29.3
30.0 31.7
34.6 34.3
40.8 45.4
49.7 34.5
0.0 10.0
20.0 30.0
40.0 50.0
60.0 FY
2013-14
FY
2016-17
FY
2018-19
FY
2020-21
FY
2022-
23*
FY
2023-
24*
Measure A Revenues
(Millions)
Projected Actual*Projected using current data
• Revenues have been
steady with modest
increases
• Expected to return to a
normal level within the
next several fiscal years if
tax is re-adopted.
• Pandemic Increases should
be viewed as an anomaly
and these levels are not
likely to be sustained
moving into the future.
Marshall Plan
Recommendations
OPERATION CEASEFIRE
This partner-based violence reduction strategy using respectful, direct communication with highest-risk youth and young adults has been implemented.
OFFICE OF VIOLENCE PREVENTION/ OUTREACH
WORKERS
OVP staff has doubled. In 2022 alone, OVP assisted 115 clients in securing employment, provided relocation support to 76 families, connected 109 clients with social services, and conducted 45 conflict mediations.
NEIGHBORHOOD BETTERMENT TEAM
In FY 2021-22 this team completed 3 missions, resulting in 1,556 inspections, 187 enforcement actions, 5 property clean-ups, 10,065 sq. ft. of graffiti removal, and 86 abandoned vehicles.
ADD POLICE OFFICERS
Before Measure A, 347 filled of 365 positions. Budgeted positions increased to 485. By FY 2017 – 445 of 485 filled (92%), peak filled positions was reached in FY 2018 with 470 and stayed over 90% filled until 2021. Filled sworn positions at 6/30/2023 were 364. 95% 96% 92% 92% 97% 96% 95% 91% 82% 75%
365
405
445
485
6/30/2014 6/30/2017 6/30/2019 6/30/2021 6/30/2023
Authorized Police Officer Positions
% Hired Authorized Sworn Postions
49 58
71 32
49 49 49 55
33 34
56 39 42
2010 2012 2014 2016 2018 2020 2022
Homicides
Measure A
Effective
4/1/14
General Fund
Service
Highlights
REOPENED FIRE STATION 1
Firefighting tools, furniture, and
equipment, 9 firefighting
positions.
REOPENED THE FAIR OAKS
LIBRARY
ALLOCATED $2 MILLION
FOR EXPANDED YOUTH
PROGRAMMING
6 In addition to Law Enforcement
and Crime Prevention efforts…
…Measure A has made these
bankruptcy recovery items
possible.
Including Weber Point, Pixie
Woods, Van Buskirk, and Victory
Park
IMPROVED AND MAINTAINED
PARKS AND REC CENTERS
ALLOWED FOR TREE & STREET
MAINTENANCE EFFORTS
RESUMED COST-OF-LIVING
ADJUSTMENTS FOR POLICE
EXPANDED THE FIRE DISPATCH
CENTER
RESUMED STAFF TRAINING
IMPLEMENTED A
MODERNIZED HUMAN
RESOURCES AND FINANCIAL
SYSTEM
RESTORED POSITIVE
BALANCES TO INTERNAL
SELF-INSURANCE FUNDS
Previously negative ($48 million!)POLICE HELICOPTER AND
UNMANNED AIR SUPPORT
PROGRAM
Sunset Provisions and Findings
Sunset Provision
SUNSET
Section 17 of the ordinance
Sunset of Tax. (a) The taxes imposed by this Ordinance shall remain effective until the soonest to occur of the following:
(i) the City Council repeals, or the voters repeal, this Ordinance; (ii) the City Council determines that the City has experienced economic recovery as defined in Section 18 of this ordinance, or (iii) ten (10) years from the date the taxes imposed by this Ordinance are first collected. However, the voters hereby authorize the Council to extend the sunset of the taxes pursuant to paragraph (b) of this Section
17. Economic Recovery Requirement
9 Economic Recovery is
measured annually after
the audited financial
reports and presented to
the oversight committee.
Per the table, revenues
have not yet reached
peak bankruptcy levels,
adjusted for inflation.
Detailed Adjusted Revenues compared to CPI-Adjusted
Peak Revenues
(Dollars in Millions) 21-22 21-22 22-23
ACFR Gen Fund Gen Fund
page 24 Portion Only Budget
Revenues 303.97 287.25 285.35
Sale of Capital Assets 0.02 0.02 0.06
303.99 287.26 285.41
Minus Measure A Revenues (45.41) (42.08)
Gen. Fund Revenue after Adjustments 241.85 243.33
Fully Adjusted Revenue Over/(Under) $(23.10) $(41.51)
Extension and Findings
The revenues provided by the taxes
imposed by this Ordinance continue
to be necessary to accomplish the
purposes stated in Section 21* of
this Ordinance
*SECTION 21
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.
EMPLOYEE COMPENSATION IS
NOT EXCESSIVE
FINDINGS
REVENUES CONTINUE TO BE
NECESSARY
The total compensation paid to City
Employees is not excessive when
compared to those of other similarly
situated public-sector employees
Section 17 (b) The City Council may extend the sunset of the taxes imposed by this ordinance as follows. The Council shall hold two publicly noticed meetings at least 14 days apart and shall adopt findings based on evidence before it that:
• 17% of General Fund
• Loss = Massive cuts to nearly every service area
• Effective Elimination of Violence Prevention
• Closure of three fire stations doubling response times • Reduction of Library Open Hours
• Closure of Oak Park Ice Rink
• Severe reductions in park maintenance and watering
• Reduced cleanups of homeless encampments
• Reduced police force and response times
11 FINDINGS
Measure A is NECESSARY!
Without Measure A the City will expend its reserves by the end of FY 2027-28 and become insolvent unless significant cuts to vital city services are made. 12 FINDINGS
Impact of Sunset on Long-Range Financial Plan
Fund Balance without Measure AFund Balance with Measure A Employee Salaries are NOT excessive
Compared to Similarly Situated Agencies
MOUS ARE REGULARLY
NEGOTIATED
The City uses an external
consultant who compares City
employee compensation to
other agencies’ compensation
THE MIDDLE OF THE
MARKET RATE
The independent consultant
gathers salary and benefits
data from these agencies that
helps the City target the labor
market median for each
position.
MARKET ADJUSTMENTS
Market adjustments based on
the compensation study are
negotiated and included in the
successor labor agreements
13 Updating the Measure B
Spending Plan with the Extension
14 • The Measure A Performance Audit released in October 2023 recommended:
• Leverage Salary Savings for greater retention
• Create expenditure Guidelines to help identify Measure B eligible costs
• To address these recommendations, the City will:
• Reimagine Key Performance Indicators (KPIs) and publish successes • Develop Expenditure Guidelines that will clarify and encourage Measure B eligible expenditures
• Reallocate salary savings to affect more effective retention and recruitment
15 GOING FORWARD
Better Strategies
The City is proposing a new plan that represents a historic breakthrough to the City’s Police recruitment and retention problems. • Convert 60 unfilled positions of the 120 authorized to be used toward retention and recruitment
• Existing budgeted funds will be reprogrammed for this purpose • All additional compensation items are subject to the extension of Measure A and will be reviewed annually for economic feasibility Expected to make the City a much more competitive option in the Law Enforcement recruitment marketplace.
16 GOING FORWARD
A New Retention Plan
Next Steps
• A second public
hearing will be held
on December 5, 2023
• An ordinance and
the findings will be
presented for
adoption