ACTION:
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Clerk/Secretary
Department: Finance Item No: D3
Prepared by: Mike Sylvia, Director/Treasurer Meeting Date: June 23, 2026 Approved by: John Conley, City Manager Agenda Location: Discussion S
UBJECT: P ROP L RESERVE UPDATE
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COMMENDATION: Receive presentation on the Prop L Reserve and provide direction to staff.
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RRELATION TO CITY COUNCIL GOALS: Fiscal Responsibility.
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RIOR ACTION: On April 28, 2026, discussed having Prop L funded projects discussed at a future meeting and approved the Citywide Facilities Master Program Fiscal Year 2026/27 project list (Vote: 5-0).
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TATEMENT ON THE SUBJECT: Per City Council direction on April 28, 2026, staff has prepared a summary of the Proposition L (“Prop L”) reserve balance and the factors contributing to its accumulation since the measure's inception.
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rop L was approved by Vista voters in November 2006 as a one-half cent (0.5%) Transactions and Use Tax, similar in structure to the City’s Bradley -Burns sales tax. The measure included a 30- year sunset provision, with collections commencing on April 1, 2007 and scheduled to conclude on March 31, 2037. At the time of voter approval, Prop L was presented primarily as a funding source for major capital improvements, including construction of the Civic Center, Fire Stations 5 and 6, Vista Sports Park, Moonlight Amphitheater Field House, and the renovation and modernization of Fire Station 1. The ballot materials also identified additional uses including hiring police officers and firefighters/paramedics, repairing streets and potholes, and supporting other general City services. The 2006 ballot language is included as Exhibit 1.
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ince implementation of the measure in 2007, annual Prop L appropriations have generally been structured to align with available revenues, with limited exceptions during the economic conditions that followed the Great Recession. Over time, annual operating results have generated reserve balances due primarily to four factors.
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rst, in 2015, the City refunded the original 2007 Prop L bonds, reducing total remaining debt service obligations by approximately $22 million over the remaining life of the bonds.
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econd, the 2020 implementation of AB 147, California’s codification of the 2018 United States Supreme Court decision in South Dakota v. Wayfair, expanded the sales and use tax base by requiring tax collection on qualifying remote sales. As a result, Prop L revenues increased by approximately 25 percent between FY 2018/19 and FY 2020/21, comparing the last full fiscal year prior to implementation with the first full fiscal year following implementation.
AGENDA
REPORT
CITY COUNCIL
COMMUNITY DEVELOPMENT COMMISSION
SUCCESSOR AGENCY
BUENA SANITATION DISTRICT
JOINT POWERS FINANCING AUTHORITY
Received presentation on the Prop L Reserve and directed staff to develop a policy establishing a Prop L reserve strategy for consideration. No vote taken.