Measure V Oversight Committee Memorandum

May 16, 2023

TO: Honorable Mayor and Councilmembers

FROM: Citizen Measure V Oversight Committee - Michelle Lane, Chair; Brandy Leidgen, Vice Chair; Gregory Grassi; Brian Beckon; and Diane Sprouse

SUBJECT: Measure V Oversight Committee’s Review of the FY 2021-22 Annual Comprehensive Financial Report and Evaluation and Report on the City’s Use of Measure V Revenues in the Proposed Biennial Operating Budget for FYs 2023-24 and 2024-25

The Measure V Oversight Committee (Committee) met on March 20, 2023 to review the Fiscal Year (FY) 2021-22 Annual Comprehensive Financial Report (ACFR), which includes the annual audit. Subsequently, the Committee met on April 17, 2023 to receive a presentation on the proposed investment of Measure V revenues to address the City’s deferred infrastructure maintenance and other community priorities through the Mid-Cycle Capital Improvement Program (CIP) Update. At the same meeting, the Committee received a presentation from Coordinated Outreach Referral and Engagement (CORE) staff and the City’s Community Services Manager to discuss the program’s outreach and services in Concord. The Committee also received an overview of the Council-approved uses of Measure V one-time residual funds from the Mid-Year Operating Budget Update that went to the City Council on April 4, 2023.

The Committee then met on April 24, 2023 to review and evaluate the City’s preliminary Proposed Biennial Operating Budget for FYs 2023-24 and 2024-25 and updated long-range financial forecast. The purpose of these meetings was to obtain an understanding of the preliminary budget in order to advise the Council as to whether Measure V revenues are proposed to be spent in a manner consistent with voter intent: to continue locally controlled funding that the State cannot take; to protect and maintain Concord’s city services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads, maintain gang prevention and crime investigation, and address homelessness, among other services.

The Committee has made the following findings with regard to its charge in oversight of the tax:

1. Does the FY 2021-22 Annual Audit reflect that Measure V tax was collected and appropriately spent?

On March 20, 2023, the Committee reviewed the FY 2021-22 Annual Comprehensive Financial Report and determined that the presentation of the Measure V Use and Transaction Tax in the financial statements (pages xiii, 9, 13, 24, 25, 30, 32, 119 and 121) reflect the collection of the tax appropriately.

The Committee finds that usage of Measure V tax revenue ($33.0 million) was identified clearly in the annual audit. Further, the Committee finds that $32.4 million of Measure V revenue went to maintain City essential services, which allowed the City to avoid cuts to core City Services, and infrastructure maintenance, and the remaining $0.6 million was used consistent with the City’s Fiscal Sustainability Ordinance to maintain reserves. Consequently, the Committee concludes that the tax was collected and appropriately utilized.

2. Does the City’s proposed General Fund biennial budget for FYs 2023-24 and 2024-25 protect the City’s essential services?

The FY 2023-24 budget estimates the collection of Measure V revenue in the amount of $32.2 million. The City proposes to use $14.1 million to maintain essential City services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads,, maintain gang prevention and crime investigation, and address homelessness, among other services. In addition, $15.9 million is used to support infrastructure maintenance backlog projects, and $2.2 million will fund Council directed programs addressing community priorities.

The FY 2024-25 budget estimates the collection of Measure V revenue in the amount of $33.0 million. The City proposes to use $14.9 million to maintain essential City services, including 911 emergency response and disaster preparedness, support local business and jobs through recovery, enhance and maintain local streets and roads,, maintain gang prevention and crime investigation, and address homelessness, among other services. In addition, $15.9 million is used to support infrastructure maintenance backlog projects, and $2.2 million will fund Council directed programs addressing community priorities.

Consequently, the Committee finds that the use of Measure V revenue in the operating budget for FYs 2023-24 and 2024-25 protects the City’s essential services and reflects investment consistent with what was shared with the public.

3. Does the City’s proposed Biennial Operating Budgets for FYs 2023-24 and 2024-25 and FY 2023-24 Capital Budget address

the City’s infrastructure backlog?

The Committee reviewed the FYs 2023-24 and 2024-25 biennial operating budget and FY 2023-24 capital budget and concluded that the presentation on the use of Measure V revenue to fund capital projects addresses the City’s infrastructure backlog. Specifically, the revenues are being allocated to support existing infrastructure and address areas of community and Council priority. Safe and usable infrastructure is a City Council priority.

Committee Summary and Recommendations

Measure V has proven to be a vital revenue source allowing the City to protect essential services, address critical infrastructure backlogs, and focus efforts toward areas of community priority.

The Committee encourages Council to continue analyzing spending priorities to ensure that they meet the most pressing needs and concerns of all Concord residents. In particular, the Committee recommends that Measure V funds used to address homelessness are deployed effectively and efficiently. Additionally, the Committee commends the Council for partnering with the Concord community to address areas of community concerns and encourages further collaboration with residents and community members to achieve those goals.