Agenda Item Wording:
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Review and acceptance of the annual Measure T Independent accountants’ report on applying agreed-upon procedures for fiscal year ending 6/30/24.
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Deadline for Action: 1/21/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Kari Williams 559-713-4298
Department Recommendation:
Review and acceptance of the annual Measure T independent accountants’ report on applying agreed-upon procedures for fiscal year ending 6/30/24.
Background Discussion:
The City, as part of the voter approved Measure T sales tax override, must have an annual procedural review of the uses of Measure T funds. M. Green and Company has performed this review, which is attached.
There were no findings for fiscal year 2023/2024 (FY 23/24).
This procedural review did not include financial management and accounting practices. The purpose of this procedural review is to ensure that Measure T funds are used in accordance with the Ballot Measure, program guidelines and expenditure plan for fiscal year ended June 30, 2024. The financial management and accounting practices are included in the City’s annual audit.
This is a discussion of the procedural review and is not intended as a conversation about plan adjustments or other operational issues. If such adjustments are desired, they should be raised as part of a separate Council discussion.
In March of 2004, the voters of Visalia passed a ¼ cent Sales Tax Override, Measure T, to provide additional police and fire personnel and services to protect our community. Program guidelines were implemented as part of the Measure T plan to ensure that the public would be well informed of the progress and process of Measure T. These guidelines are outlined as follows:
Revenue Requirements:
• 60% of revenues received must be deposited into a Measure T Police Fund and 40% into the Measure T Fire Fund.
• An Economic Uncertainty Fund will be established for both Measure T funds. The Economic Uncertainty Funds require 25% of the budgeted sales tax to be deposited to maintain operations when revenues do not cover expenditures.
• Measure T revenues cannot replace General Fund budgeted operating expenditures for police and fire.
Expenditure Requirements:
Annual procedural review - Each year, the City shall provide an annual Independent accountants’ report on applying agreed-upon procedures to account for the tax revenues received and expenditures made to ensure consistency with the program guidelines and expenditure plans. This report completes this requirement.
Annual Recertification:
Annual Recertification - Each June, as the City’s budget is adopted following public hearings, the City Manager will re-certify the Measure T plan by taking it to the City Council, stating what monies have been received, what monies have been spent, and what monies are available. The City Manager will also certify that the monies have not been used for purposes other than Public Safety. The Citizens Advisory Committee will act as an oversight function and review and approve the re-certification report prior to the report being taken to Council. This item was completed June 2024 for fiscal year 2024/25. The next recertification will return June 2025.
Effectiveness Reviews:
Effectiveness Reviews - The ballot measure ordinance requires an effectiveness review every 8 years at the first City Council meeting in January. The last effectiveness review was completed in January 2021. During the review, Council will hold a public hearing to review the progress of the Measure T plan and the continuing need for the sales tax measure. To continue the sales tax measure, 4/5ths of the City Council must affirm the tax. During the January 2021 effectiveness review Council reaffirmed the tax. The next effectiveness review will be January 2029.
Measure T Plan
Measure T uses a detailed 20- year plan for hiring personnel, construction of facilities, and equipment purchases. The original plan included a deficit that would be covered by increased revenues, lower expenditures, and General Fund subsidy. Since 2008, Measure T has been operating on an amended plan due to several years of lower revenues, higher expenditures, and no subsidy from the General Fund due to rising costs.
Even though the plan needed to be amended, the majority of the items accomplished would not have been achieved without Measure T. The progress of the plan components as of June 30, 2024 is shown in Table 1, Measure T Plan Components.
Table 1, Measure T Plan Components
Fiscal Year 2023/24 (FY23/24) Financials (ACFR document pg. 125 & 134)
Measure T Police - As shown in Table 2, Measure T Police Revenue & Expenditure Plan with Actuals - FY 23/24, the Measure T Police fund ended the year with a surplus of $1.7 million as revenues came in higher than expenditures.
Table 2, Measure T Police Revenue & Expenditure Plan with Actuals - FY 23/24
Fiscal Year 2023/24 (FY23/24) Financials (ACFR document pg. 126 & 135)
Measure T Fire - As shown in Table 3, Measure T Fire Revenue & Expenditure Plan with Actuals - FY 23/24, the Measure T Fire fund ended the year with a surplus of nearly $1.0 million as revenues came in higher than expenditures.
Table 3, Measure T Fire Revenue & Expenditure Plan with Actuals - FY 23/24
FY 23/24 Annual Measure T Independent Accountants’ Report on Applying Agreed-Upon Procedures
As required by the Ordinance, the City engaged M. Green and Company to attest that the City has used the money as required in the ballot measure. The Independent Accountants’ Report on Applying Agreed-Upon Procedures assures that these funds are handled properly, assisting City management in providing the highest level of accountability for Measure T funds.
The report prepared by M. Green and Company is attached. The report confirmed that the plan is being implemented and adjusted according to the ballot measure, program guidelines and expenditure plan.
The Measure T Independent Accountants’ Report on Applying Agreed-Upon Procedures was presented and accepted by the Citizens Advisory Committee at their January 8, 2025 meeting.
Fiscal Impact:
N/A
Prior Council Action: June 17, 2024 - Annual Recertification of the 2024/25 Measure T Plan
Other: Citizens Advisory Committee accepted the report at their January 08, 2025 meeting.
Alternatives: N/A
Recommended Motion (and Alternative Motions if expected):
recommendation
Move to accept the Measure T Independent accountants’ report on applying agreed-upon procedures from M. Green and Company for the fiscal year ending June 30, 2024. end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: Measure T Report