HomeMy WebLinkAbout37-City Manager
c
,-.
'-
c
CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
From:
Subject: Report from the Measure Z
Oversight Committee on Uses of Measure Z
Funds - April I, 2007 through June 30, 2007
Judith Valles, Chairperson
Measure Z Committee
Date: March 20, 2008
MICC Meeting Date: April 21,2008
Synopsis of Previous Council Action:
March 5, 2007 - Mayor and Common Council adopt Roles and Responsibilities for the Measure
Z Oversight Committee
Recommended Motion:
That the report from the Measure Z Oversight Committee on Uses of Measure Z Funds - April 1,
2007 through June 30, 2007 be received and filed,
Contact person: Fred Wilson
Phone:
5122
Supporting data attached: stllffreport r~ort
Ward:
All
FUNDING REQUIREMENTS:
Amount: none
Source: (Acct No.)
(Acct. Description)
Finance:
Council Notes:
'1~
Agenda Item No. _ 37
c
c
c
STAFF REPORT
Subiect:
Report from the Measure Z Oversight Committee on Uses of Measure Z Funds - April I , 2007
through June 30, 2007
Back2round
Measure Z was approved by the voters of San Bernardino on November 7, 2006. The measure
enacted a .25% district tax for a period of fifteen (15) years, beginning April 1,2007. Voters
also approved the advisory Measure YY, which stated that the proceeds of Measure Z "be used
only to fund more police officers and support personnel, and to fund anti-gang and anti-crime
operations, including drug resistance education and supervised after-school youth activities." .
Section 18 of Ordinance MC-I229, which was enacted by the voter approval of Measure Z,
required the creation of a Citizen's Advisory Committee. This section states:
Section 18. Citizen's Advisorv Committee. The Mayor and Common Council
shall create a Citizen's Oversight Committee, which shall review the expenditure
of proceeds of the taxes imposed by this ordinance and report on those
expenditures to the voters of the City at least once a year.
On March II, 2008, the Oversight Committee adopted the attached report regarding the first
fiscal year of Measure Z funds, which was for the period of April 1 through June 30, 2007. The
Committee also asked that it be forwarded to the Mayor and Council for receipt and filing.
Financial impact:
None
Recommendation:
That the report from the Measure Z Oversight Committee on Uses of Measure Z Funds - April 1,
2007 through June 30, 2007 be received and filed.
c
--
i...-
c
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
To:
Voters of the City of San Bernardino
From:
Measure Z Oversight Committee
Subject:
Report on Uses of Measure Z Funds - April I, 2007 through
June 30, 2007
Date:
February 26, 2008
Copies:
Mayor and Common Council
Backeround
Measure Z was approved by the voters of San Bernardino on November 7, 2006. The measure
enacted a .25% district tax for a period of fifteen (IS) years, beginning April 1,2007. Voters
also approved the advisory Measure YY, which stated that the proceeds of Measure Z "be used
only to fund more police officers and support personnel, and to fund anti-gang and anti-crime
operations, including drug resistance education and supervised after-school youth activities".
Section 18 of Ordinance MC-1229, which was enacted by the voter approval of Measure Z,
required the creation of a Citizen's Advisory Committee. This section states:
Section 18. Citizen's Advisorv Committee. The Mayor and Common Council
shall create a Citizen's Oversight Committee, which shall review the expenditure
of proceeds of the taxes imposed by this ordinance and report on those
expenditures to the voters of the City at least once a year.
On February 5, 2007, the Mayor and Common Council charged the Citizen's Advisory
Committee (now known as the Measure Z Oversight Committee) with meeting, organizing, and
electing officers and reviewing the Committee's charge. At our first meeting on February 13,
2007, the Committee unanimously approved a document further defining and clarifying our
Roles and Responsibilities, which was also approved by the Mayor and Common Council on
March 5, 2007.
The adopted Roles and Responsibilities of the Oversight Committee are as follows:
.
Review the expenditure plan for proceeds from Measure Z funds beginning in FY 2007-08
Monitor plans and expenditures to ensure that funds are spent in accordance with Measure
YY
Report to the voters of the city at least once a year regarding the revenues and expenditures
of Measure Z funds
.
.
c
c
c
Measure Z Expenditure Report
Page 2
.
Review an annual Measure Z financial report to ensure that funds are spent in accordance
with Measure YY
Review Measure Z 5-year expenditure plan focusing on suppression, intervention and
prevention
.
On March 5, 2007, the Mayor and Council adopted a Measure Z Expenditure Policy. This
Expenditure Policy specifies that funds will be spent in accordance with the advisory Measure
YY. It also establishes programs budgeted in FY 06-07 as the baseline budget for the Police
Department, and states that Measure Z funds will not supplant expenditures within that baseline,
with some limited exceptions for specific programs that could not be continued without Measure
Z funding.
The expenditure policy states that Measure Z funds will be used to fund the incremental cost of
the 14 sworn and 3 non-sworn Police Department positions created in FY 06-07. These positions
were added but only partially funded in the FY 06-07 budget, which reflected the phased-in
hiring of the employees to fill these new positions. The additional (incremental) cost to fully
fund these 17 positions in FY 07-08 will be approximately $668,100, which will be funded
through Measure Z. The remaining cost for these positions will remain funded through regular
General Fund resources.
Auditor's Report for Fiscal Year 2006-07
At our request, the City's auditors were engaged to provide a separate Independent Auditor's
Report on Measure Z proceeds. Since the tax became effective on April I, 2007, this report
covers only the period from April I through June 30, 2007.
A copy of the report prepared by Rogers, Anderson, Malody & Scott LLP (RAMS) is attached
for your review. In summary, the report found that revenues were properly recorded, and
expenditures were in keeping with the uses outlined by Measure YY and the Measure Z
Expenditure Policy. Highlights of the report are as follows:
. All receipts of the voter approved transaction and use tax were properly recorded in the
general fund of the City
. Adequate supporting documentation existed for selected items and the expenditures related
to the specific projects stated in the Measure
. No unallowable costs were charged to Measure Z
. Salaries charged to Measure Z were reasonable in relation to the activities and duties
performed by the related personnel
At our meeting of February 12,2008, the RAMS audit personnel provided us with an overview
of their report. RAMS noted no issues or concerns as a result of the audit. We received and filed
the report on that same date.
Report on Expenditures of Measure Z Funds
The Measure Z Oversight Committee found that the expenditures did not supplant existing
services, but enhanced them. During this reporting period, Measure Z funds were used for crime
Measure Z Expenditure Report
Page 3
c
suppression, recruitment, and administrative activities. The following summarizes the revenues
and expenditures during FY 2007-08 by general category of use:
REVENUES
District Sales Tax 1,162,882
Recruitment expenditures:
Recruitment & Travel - travel for college career
nights, radio/newspaper ads, billboards $ 51,645
Background Investigations $ 9,007
Scantron Quick Score Machine $ 5.722
Subtotal $ 66,374
Crime suppression expenditures:
Safety Overtime-Crime Impact Teams $ 547,909
Helicopter Services contract $ 211,774
Garage Charges - fuel and vehicle maintenance for
Crime Impact Team vehicles $ 37,800
.- Supplies and small equipment -
'-' Nextel phone car kit $ 86
Office Depot - Vertical File $ 114
Flight Suit for Helicopter Observer $ 234
Capital Outlay -
Partial pay for Ballistic Vests $ 49,656
Equipment for 10 Patrol Cars - cages, door panels,
bumpers, seats, etc $ 14,607
10 Priority Start! ProMax Software $ 1,061
6 each Helicopter Helmets, suites battery packs,
earphones, etc . $ 8,984
10 Secure-Idle devices $ 1.252
Subtotal $ 873,477
Administrative expenditures:
State Board of Equal. Fees $ 110,667
TOTAL EXPENDITURES
1,050,518
c
ENDING BALANCE - June 30, 2007
112,364
Measure Z Expenditure Report
Page 4
,- As the chart indicates, most of the funds uses during this period were used for crime suppression
\....-- activities. This included officer overtime for Crime Impact Teams, the helicopter services
contract, ballistic vests for officers, and other miscellaneous related equipment, supplies, and
small technology purchases. The total expenditure on crime suppression activities and related
support was $873,477.
A total of $66,374 was spent during this reporting period on recruitment efforts. Enhanced
recruitment efforts have been a focus of the City, as the competition continues to be significant
among law enforcement agencies for qualified police officers. This expenditure category
includes travel to career fairs, advertising costs, and equipment.
The third category of expenditures is the administrative expenditures related to the collection and
administration of Measure Z. The State Board of Equalization (BGE) charged the City $110,667
to begin the collection and administration of the tax. We understand that in future years this
administrative charge will likely be reduced.
The following chart illustrates the uses of the funds between these three categories of
expenditures:
Uses of Measure Z Funds. April 1 . June 30,2007
/-
o Recruttment
. Crime suppression
C Administration
\-
Thank you for the opportunity to serve on this important Committee, and to provide you with
this first report regarding Measure Z expenditures. We look forward to continuing to work with
the Mayor and Council to help reduce crime and improve the quality of life in our community.
c
cl"il1IIT
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS
JAYH_ZERCHER,CP A
AOSERTB.MEMORY,C P A
PHILLIPH, WALLER, CPA
BRENDA l OOLE. CP A
TERAYP SHEA.C P A
KIRK A. FRANKS, C FA
MATTHEW B. WILSON. C PA
SCOTT W, MANNO. CP A
lEEN"- SHANBHAG, CPA
NANCY O'RAFFERTY. C P It
BRAD A. WElEBIR. CPA
LYNN W. JENKINS. CPA
MARION M. HABERKORN, CPA
Citizens' Oversight Committee and City Council
City of San Bernardino, California
Independent Auditors' Report on the
Measure Z Public Safety Tax (Measure Z)
.-
We have audited the accompanying schedule of revenues and expenditures of the Measure Z
Public Safety Tax (Measure Z) of the City of San Bernardino for the period from inception (April
1, 2007) to June 30, 2007. This financial statement is the responsibility of the City of San
Bernardino, California's management. Our responsibility is to express an opinion on this
financial statement based on our audit.
,-.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America. Those standards require that we plan and perform our audit to obtain
reasonable assurance about whether the schedule of revenues and expenditures is free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the schedule of revenues and expenditures. An audit also includes
assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall presentation of the schedule of revenues and expenditures. We
believe that our audit provides a reasonable basis for our opinion.
The accompanying schedule of revenues and expenditures presents only the revenues and
expenditures of the Measure Z Public Safety Tax (Measure Z) of the City of San Bernardino.
In our opinion, the financial statement referred to above presents fairly, in all material respects,
the revenues and expenditures of the Measure Z Public Safety Tax (Measure Z) of the City of
San Bernardino for the period from inception (April 1 , 2007) to June 30, 2007 in conformity with
accounting principles generally accepted in the United States of America.
/<. ~I ~~, ~ 'rf~a~
January 22, 2008
C MEMBERS
AMERICAN INSTITUTEOF
C EATIFIEO PUBLIC ACCOUNl AN' S
PCPS THE AICPAALlIANCE FORGPAllflMS
VANIR Il)WER . 290NORTH "0" STREET. SUITE300
SAN BERNARDINO. CA 9240 1
(909) 8(1'11).,; I . (909) 824-6736 . FAX (909) 889-5361
Website.www,ramscpa nel
CALIFORNIA SOCIETY OF
CERTII'"IED PUBLIC ACCOUNT ANl S
c
c
c
CITY OF SAN BERNARDINO
Measure Z Public Safety Tax (Measure Z)
For the period from inception (April 1 , 2007) to June 30, 2007
Beginning Balance - April 1 , 2007 $
Revenues:
Sales tax (0.25%) 1,162,882
Expenditures:
Salaries and benefits 547,909
Maintenance and operations 52,0'(9
Contractural services 331 ,448
Internal services 37,800
Capital outlay 81,282
Total expenditures 1,050,518
Ending Balance - June 30, 2007 $ 112,364*
* The ending balance of $112,364 at June 30, 2007 does not reflect the following carryovers
from fiscal year 2006/07 to fiscal year 2007/08, approved by the City Council in December,
2007:
Continuing Appropriations
Encumbrances
Total
$
$
318,300
128,200
446,500
cJillIIT .
ROGERS, ANDERSON, MALODY & SCOTT, LLP
CERTIFIED PUBLIC ACCOUNTANTS
JAYH.ZERCHER,C P A
AOBEAT B. MEMORY. CPA
PHlLUP H WALLEA. CPA.
BAENDAL.ODlE.C P A
TEARVP.SHEA.CPA
KIRK A FRANKS. C PA
M1.TTHEW B WILSON. C PA
SCOTT W. MANNO, CP A
LEEN" SHANBHAG, CP A
NANCY O'RAFFERTY, CPA
BRAD A. WELEBIA, CPA
LYNN W. JENKINS. CP A.
MARION M. HABERKORN, CPA
Citizen's Oversight Committee and City Council
City of San Bernardino, California
Additional Information Regarding the Audit ofthe
Measure Z Public Safety Tax (Measure Z) of the City of San Bernardino
c
Our audit of the Measure Z Public Safety Tax (Measure Z) of the City of San Bernardino
included the procedures identified below, as well as other procedures performed in connection
with our audit of the financial statements of the City of San Bernardino (the City) for the period
from inception (April 1 , 2007) to June 30, 2007 which resulted in our unqualified opinion that the
financial statements of the City were fairly stated in accordance with generally accepted
accounting principles. This information regarding our audit of the Measure Z Public Safety Tax
(Measure Z) has been provided to communicate to the Citizens' Oversight Committee the
results of the audit procedures identified below:
1. We analyzed the following documents in order to gain an understanding of the
requirements stated in Measure Z:
. Ordinance No. MC-1229
. Resolution 2006-286
. Resolution 2006-287
. Resolution 2006-288
. Resolution 2006-289
Results: We noted that the City Council placed before the voters of the City of San
Bernardino a Public Safety Transactions and Use Tax Ordinance (the Ordinance)
relating to the imposition of a one-quarter of one percent (0.25%) transactions and use
tax to fund pUblic safety operation. The election on the Measure was held on November
7, 2006 at which time the voters were asked whether or not the City should implement a
quarter-cent sales tax for 15 years to improve public safety, fund anti-gang and anti-
crime operations, and fund supervised after-school youth activities. The Measure
presented to the voters provided that such funds would be utilized with the creation of a
citizen's oversight committee and independent financial audits. At the election on
November 7, 2006, the voters passed the Ordinance, identified as Measure Z on the
ballot.
C
MEMBERS
AMERICANINSTlTUTEOf
CERTIFIED PUBLIC ACCOUNTANT S
PCPS THE "lePA ALLIA"lCf FORCP/l, r lAMS
VANIA lOWER. 290NQRTH "D" srREEf. SUITE 300
SAN BERNARDINO, CA 9240'
(909/889 (Jill . (gag) 824.6736 . FAX (909) 889-536 1
Websife. wwwramscpanet
CALIFORNiA SOCIETY OF
CERTIFIED PUBlICACCOlJN"T ANTS
C Citizens' Oversight Committee and City Council
City of San Bernardino, California
Page 2
2. We obtained and reviewed a summary revenue detail report from the City's general
ledger for Measure Z Public Safety Tax for the period from inception (April 1, 2007) to
June 30, 2007. We reviewed supporting cash receipts to test whether the City had
properly recorded receipts of the voter approved transaction and use tax in the amount
of one-quarter of one percent (0.25% sales tax) in the general fund of the City.
Results: We noted no exceptions as a result of our procedures. All receipts of the voter
approved transaction and use tax in the amount of one-quarter of one percent (0.25%
sales tax) were properly recorded in the general fund of the City for the period from
inception (April 1, 2007) to June 30, 2007.
3.
We obtained and reviewed a summary expenditure detail from the City's general ledger
for Measure Z Public Safety Tax for the period from inception (April 1 , 2007) to June 30,
2007. We selected individually significant invoices listed in this expenditure detail report
and tested whether adequate supporting documentation (vendor/supplier invoices,
receipts, etc.) existed and whether the expenditure related to the specific projects stated
in the Measure. We also examined the supporting documentation to test whether the
amounts agreed to the City's general ledger and that no unallowable costs were
charged to Measure Z Public Safety Tax.
,'_.
I
\"""...
Results: We noted no exceptions as a result of our procedures. Adequate supporting
documentation existed for selected items and the expenditures related to the specific
projects stated in the Measure. In addition, amounts on the supporting documentation
agreed to the City's general ledger and no unallowable costs to Measure Z Public
Safety Tax were detected by our testing.
4. We obtained and reviewed selected journal entries to test whether the allocation of
salaries to Measure Z Public Safety Tax were reasonable. We obtained an
understanding from the City of the methodology used to allocate salaries, as well as
reviewed documentation supporting these allocations to Measure Z Public Safety Tax.
In addition, we inquired selected employees charged to the Fund to determine if the
salaries allocated were reasonable based upon duties performed.
Results: We noted no exceptions as a result of our procedures. Salaries charged to
Measure Z Public Safety Tax were reasonable in relation to the activities and duties
performed by the related personnel.
This report is intended solely for the information and use of the City Council, management of the
City of San Bernardino and the Citizens' Oversight Committee and is not intended to be and
should not be used by anyone other than these specified parties. However, this limitation is not
meant to limit the distribution of this report which is a matter of public record.
c
t..~.II~' /II~ 'tr;JeAi aP
January 22, 2008