City Council Agenda Report
Meeting Date: August 18, 2026
From: Robert Sousa, Chief of Police
Department: Police
Submitted by: Nicholas Perez, Captain
Subject
Federal Equitable Sharing Agreement and Annual Certification Report Recommendation
Approve and authorize the Police Chief and City Administrator to execute the Fiscal Year 2025- 26 Federal Equitable Sharing Agreement and Annual Certification Report.
Background
The Vernon Police Department (VPD) currently receives an equitable share of forfeited proceeds from investigations conducted by an investigator who was assigned to the Southwest Borders Initiative Taskforce (SWBI). The SWBI is a long-standing U.S. federal program established in December 1995 to combat large-scale drug trafficking along the U.S. Southwest border.
In order to receive such proceeds, the VPD must execute an equitable sharing agreement and certify that the forfeited proceeds received are allocated as required by federal statutes and regulations established by the U.S. Department of Treasury and the U.S. Department of Justice.
These laws and regulations require the PD to do the following:
• Retain forfeited funds or property separate from state or other forfeitures • Each year, submit a federal Equitable Sharing Agreement and Annual Certification (ESAC) with both agencies
• Maintain a record of the funds or property and any expenditures • Annually audit funds exceeding $100,000
The Department of Justice implemented an online reporting process to streamline the annual reporting of funds received by local agencies. The reporting process requires the Agency Head (Police Chief) and the Governing Body Head (City Administrator) to certify that the City understands its obligations under the agreement and to certify that the reported financial information regarding the VPD’s receipt and expenditure of the funds is accurate. The VPD has implemented procedures in compliance with the outlined laws and regulations.
The ESAC Report has been reviewed and approved as to form by the City Attorney’s Office.
Strategic Plan Goals
Goal 5: Strengthen Organizational Efficiency and Financial Planning Fiscal Impact
Approving execution of the Federal Equitable Sharing Agreement and Annual Certification Form may result in additional revenue to the Asset Forfeiture Fund, Forfeiture Funds Revenue Account No. 026-440-000-441013. Forfeited proceeds received through the equitable share program vary from year to year as funds are based on the resolution of specific court cases.
Attachments
1. Fiscal Year 2025-26 ESAC Report