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Home My WebLink About36-City Manager CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL fJf\:Ip~ : : : .~'. L From: Phil Savage, Chairperson Subject: Report from the Measure Z Measure Z Oversight Oversight Committee on Uses of Measure Z Committee Funds - July 1,2007 through June 30, 2008 Date: March 30, 2009 MICC Meeting Date: April 20, 2009 Synopsis of Previous Council Action: April 7, 2008 - Mayor and Council receive and file the report from the Measure Z Oversight Committee on Uses of Measure Z Funds - April I, 2007 through June 30, 2007 Recommended Motion: That the report from the Measure Z Oversight Committee on Uses of Measure Z funds - July I, 2007 through June 30, 2008, be received and filed. Contact person: Lori Sassoon Phone: 5122 Supporting data attached: staff report, report Ward: All FUNDING REQUIREMENTS: Amount: none Source: (Aeet. No.) (Aeet. Description) Finance: Council Notes: Agenda Item No. 'Be., ".. 20- fJII STAFF REPORT Subiect: Report from the Measure Z Oversight Committee on Uses of Measure Z Funds - July 1,2007 through June 30, 2008. 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 I, 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 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 February 19, 2009, the Measure Z Oversight Committee reviewed the attached report from the City's auditors regarding the use of Measure Z funds for the period of July I, 2007 through June 30, 2008. The Committee also reviewed summary information provided by the Finance Department concerning the use offunds by category. On March 25, 2009, the Committee unanimously voted to approve its narrative report to the voters. Committee Chair Phil Savage and other members of the Committee will be present at the April 20 meeting to provide the report verbally to the Mayor, Council, and the community. It is recommended that the Mayor and Council also receive and file the report. The report will also be made available on the City's website for public review. Financial imDact: None Recommendation: That the report from the Measure Z Oversight Committee on Uses of Measure Z funds - July I, 2007 through June 30, 2008, be received and filed. CITY OF SAN BERNARDINO INTEROFFICE MEMORANDUM To: Mayor, Common Council and Voters of the City of San Bernardino From: Measure Z Oversight Committee Subject: Report from the Measure Z Oversight Committee on Uses of Measure Z Funds - July 1,2007 through June 30, 2008. Date: March 25, 2009 Back!!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 fifteen (15) years, beginning April I, 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. In the Spring of 2008, the Committee reviewed the preliminary expenditure budget for Measure Z for FY 08-09. On May 28, 2008, the Committee adopted a motion to accept in concept the FY 08.09 Measure Z budget as presented; and to retain the ability to review and make further recommendations as necessary. At its meeting of June 10,2008, the Committee again reviewed the preliminary expenditure plan that was eventually adopted by the Mayor and Council as part of the City's annual budget. On February 19,2009, the Measure Z Oversight Committee reviewed the attached report from the City's auditors regarding the use of Measure Z funds for the period of July 1,2007 through June 30, 2008. The Committee also reviewed summary information provided by the Finance Department concerning the use of funds by category, a copy of which is attached. Action and Recommendation The Committee voted to receive and file the report, and forwarded to the Mayor and Council and recommended that the Mayor and Council also receive and file the report. Measure Z Expenditure Report Page 2 The report will also be made available on the City's website for public review. Catel!orical Analvsis of Use of Measure Z Funds The Committee also received and reviewed a report from the City's Finance Department concerning the use of Measure Z funds by category. A copy of that report is attached and will also be made available on the City's web site for public review. The Measure Z 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 in the opinion of the auditors that the Measure Z funds have been expended during fiscal year 2007 - 2008 in accordance with the language of Measure Z. The Committee also confirms that expenditures were made in accordance with Measure YY. However, the Committee has had little input and absolutely no control over how it was spent. Some members of the Committee have repeatedly expressed their concern about this Committee not being able to provide input from the public in the decision making process as to how Measure Z funds are expended. It is to be noted that during fiscal year 2007/08 Measure Z funds were expended as follows: . $4,838,594 for police department salaries and benefits, recruitment & travel, supplies & operating expenses, contractual services, internal services-garage charges, capital outlays, and debt service; and . $93,200 on Operation Phoenix. It is further noted that the Committee has reviewed the Police Department's 5-year hiring plans, but has not received or reviewed a 5-year plan for prevention and intervention activities. Review of these documents was one of the Roles and Responsibilities of the Committee that was identified by the Mayor and Council. At such time that a plan for those activities is prepared, the Committee will review it. Respectfully submitted, Measure Z Oversight Committee I"iIIIIT 'tOGERS, ANDERSON, MALODY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS JAY H. ZERCHER, CP A ROBERT B. MEMORY, CPA PHilLIP H. WALLfR, CPA BRENDA L DOLE, CPA TERRY P SHEA, CPA KIRK A. FRANKS, CPA MATTHEW S. WilSON, CPA SCOTT W MANNO, CPA LEENA SHANBHAG, CPA NANCY O'RAFFERTY, CP A BRAD A. WELEBIR, CP A TIMOTHY P HORN, CPA KATIE l. MILLSOM, CPA JOHN J, BADIA, CP 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, 2008. 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 or opinion. The accompanying schedule of revenues 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, 2008 in conformity with accounting principles generally accepted in the United States of America. ,~ /fl AL...,,{ y- ~ LU' I.~, /!~, -./ January 7, 2009 ."'EMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PCPS THE AICPA All, lANCE FOR CPA FIRMS VANIR TOWER . 290 NORTH "0" STREET. SUITE JOU SAN BERNARDINO, CA 92401 (909j 8890871 . (909) 824-6736 . FAX (909) 889.5361 Websire. wwwramscpa net CAL_IFORNIA SOCIE TY OF CEfHlFIED PUBLIC ACCOUNTANTS laGERS, ANDERSON, MALaDY & SCOTT, LLP CERTIFIED PUBLIC ACCOUNTANTS JAY H. ZERCHER, CPA ROBERT B. MEMORY, CPA PHilLIP H. WALLER. CPA BRENDA l. QOLE, CPA TERRY P SHEA, CPA KIRK A FRANKS, CPA MATTHEW B. WILSON, CPA SCOTT W MANNO. CP A lEENA SHANBHAG, CPA I"iIDIT NANCY O'RAFFERTY, CPA BRAD A WELEBIR, CPA TIMOTHY P HORN, CPA KATIE L MllLSOM, C PA JOHN J BADIA, CPA The Honorable City Council City of San Bernardino San Bernardino, California 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, 2008, 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 . 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%) 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. ,vtEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PCPS THE AICPA ALLIANCE FOR CPA FIRMS VANIR TOWER. 290 NORTH "0" STREET. SUITE 300 SAN BERNARDINO, CA 92407 (909) 889 0877 . (909) 824-6736 . FAX (909) 889-.'i367 Webs/te. www.ramscoa net CALIFORNIA SOCIE'fV OF CERTIFIED PUBLIC ACCOUNfANTS 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, 2008. 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, 2008. 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, 2008. 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. I-~/ II~ /11~ 'V~ LL/J January 7, 2009 CITY OF SAN BERNARDINO Measure Z Public Safety Tax Schedule of Revenues and Expenditures For the year ended June 30, 2008 Beginning balance - July 1, 2007 $ 112,364 Revenues: Sales tax (0.25%) 6,511,475 Expenditures: Salaries and benefits 3,271,457 Maintenance and operations 221,402 Contractural services 748,465 Internal service charges 55,000 Capital outlay 521,137 " Debt service: Principal 16,906 Interest 2,127 Total expenditures 4,836,494 Ending balance - June 30, 2008 $ 1,787,345 , 'The ending balance of $1,787,345 at June 30, 2008 does not reflect the following carryovers from fiscal year 2007/08 to fiscal year 2008/09, approved by the City Council on November 17, 2008: Encumbrances $ 95,300 "During the fiscal year ended June 30, 2008, the City entered into a capital lease financing agreement for three police vehicles in an amount totaling $106,630. . CITY OF SAN BERNARDINO YEAR END REVENUES AND EXPENDITURES FISCAL YEAR 2007-2008 MEASURE Z PUBLIC SAFETY TAX CITY OF SAN BERNARDINO YEAR END REVENUES AND EXPENDITURES FISCAL YEAR 2007-2008 MEASURE Z PUBLIC SAFETY TAX Internal Services-Garaae Charaes $ 55,000 Crime Impact Team vehicles Fuel and Vehicle Maintenance Capital Outlav $ 521,137 Ballistic Vests 153,302 (2) Sedan Vehicles 38,558 Install EVDO connection 6,384 Internet Job Application Program 12,780 10 Laptop Mobile Computers 70,449 17 Motorola Portable Radios 52,381 Motorola Radio chargers 15,639 Motorola VRM 850 10,532 (4) Panasonic Mobile Data Computer: 27,493 Stabilized Binnoculars 2,579 17 Digital Voice Recorder 9,824 263 Tasers 90,000 17 H&K .45 Shotguns for vehicles 13,163 23 Lockers and installation 16,129 Misc. Police Equipment Items 1,924 Debt Service $ 19,033 Vehicle Lease Payments ITOTAL EXPENDITURES lENDING BALANCE - June 30, 2008 I $ 4,836,494 I 1$ 1,787,3451 IContinue Appropriation/Encum Carryovers I Encumbrance Carrvovers Vehicle prostraint seats and cages 2,100 2,100 93,200 93,200 I $ 95,300 I I $ 1,692,045 I Continuina Appropriations Parks Operation Phoenix ITOTAL CARRYOVERS lENDING BALANCE AFTER CARRYOVERS