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CITY OF SAN BERNARDINO REQUEST FOR COUNCIL ACTION
From: Marlene Evans, Chairperson Subject:
Measure Z Citizen's Oversight
Committee
Report from Measure Z Citizen's Oversight
Committee on Uses of Measure Z Funds-
July 1, 2009 through June 30, 2010
Date:
July 6,2011
MCC Date: July 18,2011
Synopsis of Previous Council Action:
12-06-2010 Mayor and Common Council receive and file the report from the Measure Z
Citizen's Oversight Committee on Uses of Measure Z Funds - July I, 2009
through June 30, 2010.
04-20-2009 Mayor and Common Council receive and file the report from the Measure Z
Citizen's Oversight Committee on Uses of Measure Z Funds - July I, 2008
through June 30, 2009.
04-07-2008 Mayor and Common Council receive and file the report from the Measure Z
Citizen's Oversight Committee on Uses of Measure Z Funds - April 1,2007
through June 30, 2008
Recommended Motion:
That the report from the Measure Z Citizen's Oversight Commi
- July I, 2009 through June 30, 2010, be received and filed
Contact Person: Tait Ecklund
Phone: 5122
Supporting data attached:
Staff Report; report, Ward(s):
attachments
Citywide
FUNDING REQUIREMENTS:
Amount: N/A
Source:
Acct. Description:
Finance:
Council Notes:
Agenda Item No.
q
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CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION
Staff Report
Subiect:
Report from the Measure Z Citizen's Oversight Committee on Uses of Measure Z Funds
- July I, 2009 through June 30, 20 I O.
Backc:round:
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 15 years, beginning April I, 2007.
The 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 Advisory 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 June 9, 2011, the Measure Z Citizen's Oversight Committee reviewed the attached
report dated January 14, 2011 from the City's auditors regarding the use of Measure Z
funds for the period of July 1,2009 to June 30, 2010 and the letter dated May 26, 2011.
The Committee also reviewed summary information provided by the Finance Department
concerning the use offunds by category, a copy of which is attached
At its meeting of June 9, 2011, the Committee voted unanimously to receive and file the
report from the City's auditors and forward it to the City Council. Therefore, it is
recommended that the Mayor and Common Council receive and file the report, which
will also be made available on the City's website for public review.
Financial Impact:
None
Recommended Motion:
That the report from the Measure Z Citizen's Oversight Committee on Uses of Measure Z
Funds - July 1,2008 through June 30, 2009, be received and filed.
Exhibits: Committee Report
Auditor's Report
Auditor's Letter
CITY OF SAN BERNARDINO
INTEROFFICE MEMORANDUM
To: Mayor and Common Council and Voters of the City of San Bernardino
From: Measure Z Citizen's Oversight Committee
Subject: Report on the Uses of Measure Z Funds - July I, 2009 through June 30, 2010
Date: June 15,2011
Backl!round
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 IS years, beginning April I, 2007.
The 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 Advisory 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 June 9, 2011, the Measure Z Citizen's Oversight Committee reviewed the attached
report dated January 14, 2011 from the City's auditors regarding the use of Measure Z
funds for the period of July 1,2009 to June 30, 2010 and the letter dated May 26, 2011.
The Committee also reviewed summary information provided by the Finance Department
concerning the use of funds by category, a copy of which is attached
Analvsis of Use of Measure Z Funds
The Measure Z Citizen's Oversight Committee is directed by the language of Measure Z
"to 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." The Committee has
reviewed and concurred with the opinion of the auditors that the funds have been
expended during FY 2009-10 in accordance with the language of Measure Z. The
Committee also confirms that those expenditures were made in accordance with Measure
YY.
The Committee notes that during FY 2009-10 the Measure Z funds were expended as
follows:
. $5,665,134 for police department salaries and benefits, supplies and operating
expenses, contractual services, internal services-garage charges, capital outlay and
debt service
. $139,592 for parks department salaries and benefits and supplies or operating
expenses
During the Committee meeting, City staff provided information on the proposed budget
for the use of Measure Z funds for FY 2011-12. Some Committee members expressed
some concern that in the proposed budget all of the funds will be appropriated for crime
suppression and suggested that the City take steps to ensure that the programs dedicated
to crime prevention and intervention, as well as those focused on suppression, are
supported by Measure Z funds. The Committee members appreciated the opportunity to
review and comment on the proposed budget.
Action and Recommendation
The Committee unanimously voted to receive and file the Auditor's report and letter, and
forward them to the Mayor and Common Council to also receive and file. This report
will be made available on the City's website for public review.
Respectfully submitted,
Measure Z Citizen's Oversight Committee
PHILLIP H. WALLER, C,P,A
BRENDA l. COLE. C,P.A.
TERRY P. SHEA, C.P.A.
KIRK A. FRANKS, C,P.A.
MATTHEW B. WILSON, C,P.A.
SCOTT W. MANNO. C.P.A
LEENA SHAN8HAG, C,P.A.
.......-
tOGERS, ANDERSON, MALODY & SCOTT, LLP
CERTlFIEO PUBliC ACCOUNTANTS
ROBERT 8. MEMORY, C.P.A. (1945-20091
NANCY Q'RAFFEATY, C.P,A
BRAOFERO A. WELEBIR. C.P.A.
JENNY lIU. C.P.A.
KATIE l. MILLSOM, C.P.A.
JONATHAN R. KUHN, C,P.A,
PAPA MATAR TH!AW. C,P.A.
MAYA S.IVANQVA, C.P.A.
CHRISTOPHER MONTOYA, C.P.A.
DANIELLE E. ODGERS, C.P.A.
TRAVIS C. HICKEY, C.P.A.
WILLIAM C. CLAYTON, C.P.A.
OF COUNSEL
JAY H. ZERCHER, C.P.A.
Citizens' Oversight Committee and City Council
City of San Bernardino, California
Independent Auditor's Report on the
Measure Z Public Safety Tax
We have audited the accompanying schedule of revenues and expenditures of the Measure Z
Public Safety Tax of the City of San Bernardino for the year ended June 30, 2010. 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 aud~ 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 revenue and expenditures presents only the revenues and
expenditures of the Measure Z Public Safety Tax 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 of the City of San
Bernardino for the year ended June 30, 2010 in conformity with accounting principles generally
accepted in the United States of America.
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January 14, 2011
MEMBERS
t...MER1CAN INSTITUTe OF
':RTlFIED PUBLIC ACCOUNTANTS
.-CPS THE AICPA ALLIANCE FOR CPA FIRMS
VANIR TOWER . 290 NORTH 'D' STREET. SUITE 300
SAN BERNARDINO, CA 92401
(909) 889-0871 . (909) 824.6736 . FAX (909) 889-5361
Website: www.ramscpa.net
CALIFORNIA SOCIETY OF
CERnFIED PUBLIC ACCOUNTANTS
CITY OF SAN BERNARDINO
Measure Z Public Safety Tax (Measure Z)
Schedule of Revenues and Expenditures
For the year ended June 30, 2010
Beginning Balance - July 1, 2009 $ 45,398
Revenues:
Sales tax (0.25%) 5,157,200
Expenditures:
Salaries and benefits 5,565,146
Maintenance and operations 74,106
Contractural services 55,766
Internal services 38,000
Capital outlay 14,095
Debt service:
Principal 54,349
Interest 3,264
Total expenditures 5,804,726
Ending Balance (Deficit) - June 30,2010 $ (602,128)
1iI....-
PHilLIP H. WALLER, C.P.A.
BRENOA l. COLE. C.PA
TERRY P. SHEA. C.P.A.
KIRK A. FRANKS, C.P,A.
MATTHEW e. WILSON, C,P,A.
SCOTT W. MANNO, C.P.A.
LEENA SHANBHAG. C.P.A.
lOGERS, ANDERSON, MALODY & SCOTT, LLP
CERTiFIED PUBLIC ACCOUNTANTS
The Honorable City Council
City of San Bernardino
San Bernardino, California
NANCY O'RAFFERTY, C.P.A.
8RADFERO A. WELEBIR. C.P_A.
JENNY LiU, C.P.A.
KATIE L. MllLSOM, C.P,A.
JONATHAN R. KUHN, C.P,A.
PAPA MAlAR THIAW, C.P.A
MAYA S.IVANQVA, C.P.A.
CHRISTOPHER MONTOYA, C.PA
DANIELLE E. ODGERS, C.P.A.
TRAVIS C. HICKEY, C.P.A.
WilLIAM C. CLAYTON. C.P,A.
ROBERT e. MEMORY, C.P.A. (1945-2009)
OF COUNSEL
JAY H. ZERCHER, C.P,A.
Additional Information Regarding the Audit of the
Measure Z Public Safety Tax of the City of San Bernardino
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 year
ended June 30, 2010, 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 has been provided to
communicate to the Citizen's 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
Resoiution 2006-286
. Resolution 2006-287
. Resolution 2006-268
. Resolution 2006-269
Resuits: 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%) transaction and use
tax to fund public safety operations. 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.
MEMBERS
~MER!CAN INSTITUTE OF
~RTIF1ED PUBLIC ACCOUNTANTS
,-'CPS THE AICPA ALLIANCE FOR CPA FIRMS
VANIA TOWER . 290 NORTH '0" STREET. SUITE 300
SAN BERNARDINO, CA 92401
(909) 8B9~OB71 . (909) 824-6736 . FAX (909) 889-5361
Website; www.ramscpa.nel
CALIFORNIA SOCIETY OF
CERTIFIED PU8l1C ACCOUNTANTS
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 the Measure Z Public Safety Tax for the fiscal year ended June 30,2010. 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 fiscal year ended
June 30, 2010.
3. We obtained and reviewed a summary expenditure detail from the City's general ledger
for the Measure Z Public Safety Tax for the fiscal year ended June 30, 2010. We
selected individually significant transactions 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 supporting documentation to test whether the amounts
agreed to the City's general ledger and that no unallowable costs were charged against
the Measure Z Public Safety Tax.
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 payroll transactions to test whether the allocation of
salaries and benefits 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 inspected selected transactions charged against Measure Z to determine if
the salaries allocated were reasonable based upon the duties performed.
Results: We noted no exceptions as a result of our procedures. Salaries and benefits
charged against the Measure Z Public Safety Tax appeared 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.
;(.!JJJt.1) U'lu.l9\ G-/DdV t
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January 14, 2011
ROGERS, ANDERSON, MALaDY & SCOTT, LLP
CFRnFtFfJ ;;'118/.117 ACCOUNrANTS
PHILLIP lt WALLER. CP_A
BRENDA L- OOlE, CP;'"
TERRY P.SHEA, C.I'),
KIRK A. H~ANKS. c.;> A
MAfnu"WI:l WilSON, C,P'"
SCOTT W. ~~NNO. C_P.A
lfENA $H"N8HAG. CPA
lilnu-
DF COUNSEL
JAY K.lERCHER,r;,p,^.
May 26, 2011
NANcY r.;rRAFFE~TY. CPA
SRADFERD ^_ WELE6IR. CP,A..
JENNY UU. CJ'.A
KATIE l. M!LlSOM. C,P"'"
JONATHAN P. KUHN, C,P.'"
PAPA t,4AJAR THIAW. C_PA
MAYA S.IVANO\lA. C,P_A.
CttRISTOPflEA MONTOYA, CP ^
DANIELlE E. ODGERS, C,P....
TRAVIS C, HICKEY. C.P_A
WilLIAM C. CLAyTON, C.PA
HOBl.'.AT e. M(iJORY, C.P,A_ iH146.2009j
Barbara Pachon, Finance Director
City of San Bernardino
300 North D Street
San Bernardino, CA 92418
Based on the Information we reviewed, although the total number of positions funded by the General
Fund may have dropped during the period 2005/06 to 2009/10, the overall General Fund amount
expended on the Police Department increased by about $5,1 million; further, the proportion of General
Fund dedicated to this Department increased from 40 to 44 percent during that timeframe. Therefore, in
addition to our previous finding that the City is in compliance with the provisions of Measure Z and YY, we
find that the City is supplementing and not supplanting public safety expenditures In the General Fund
with Measure Z Funds.
Yours truly,
c/--
ri;~,CPA
Rogers, Anderson, Malady & Scott, LLP
MEMBERS
AME.RICAN INSTITUTE OF
CERflJ:'IED PUBLIC ACCOUNTANTS
PCPS THE AICPA ALUANCE FOR CPA FIRMS
VANtR TOWER . 290 NORTH "0' STREET- SUITE ':;00
SAN BeRNARDINO, CA 92401
(909) 889-0871 . (909) 824-6736 . FAX (909) 889~5361
Websire: wwwfamscpll.net
GAllFORNIA SOCIETY OF
CERTIFIED PUBUC ACCOUNTANTS