Agenda Item Wording:
title
Effectiveness Review for Measure N.
body
Deadline for Action: 4/1/2025
Submitting Department: Finance and Technology Services
Contact Name and Phone Number: Renee Nagel - Finance & Technology Director (559) 713-4375, Amee Swearingen - Budget Analyst (559) 713-4170
Department Recommendation:
Review the effectiveness of Measure N and approve the ½ cent sales tax for another 8 years.
Background Discussion:
In November of 2016, the voters of Visalia passed a ½ cent Sales Tax Override, Measure N also known as Visalia Essential City Services Measure. Sales Tax from Measure N provides for essential city services such as police, fire, and recreation, as well as maintenance of parks, trails, and roads. The measure uses a detailed, 10-year plan which includes hiring of personnel, construction of capital projects and equipment purchases.
As part of the measure, Council adopted an Accountability Ordinance (Ordinance 16-21) to establish accountability measures as outlined:
Revenue Requirements:
• 10% of budgeted revenues must be maintained in an Uncertainty Fund. This money can only be accessed during a fiscal emergency;
• 10% of budgeted revenues must be deposited into the following two categories:
o 2% into Youth Programs
o 8% into Maintenance and Emerging Needs
Expenditure Requirements:
• Tax money shall not be used for debt service payments;
• The annual expenditure plan must be approved by Council after the following process has occurred:
o City Manager makes a recommendation to City Council and makes changes as requested by Council;
o Staff receives comments and recommendation by Sales Tax Oversight Board;
o Staff conducts two public hearings at regular Council Meetings to consider expenditure plan.
Sales Tax Oversight Board:
The Oversight Board will consist of 11 members that will serve two-year terms. Members may be reappointed to serve up to two additional two-year terms (total of 3 terms). Members are selected in the following manner:
• Each Council member selects one member;
• The Citizens Advisory Committee (CAC) selects two members;
• Visalia Economic Development Corporation selects one member;
• Hispanic Chamber of Commerce of Tulare/Kings County or Visalia Chamber of Commerce selects one member;
• Downtown Alliance that represents Property Based Improvement District or Downtown Merchants selects one member; and
• Home Builders Association or Board of Realtors selects one member.
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 was recently presented to Council in January 2025 with the City’s Financial Statements.
Effectiveness Reviews:
The ballot measure ordinance requires an effectiveness review every eight years from the operative date of the ordinance. The operative date is April 1, 2017; thus, the first review must occur on or before April 1, 2025.
To be in compliance with this requirement, staff is presenting the effectiveness review of Measure N. Measure N has funded seven fiscal years of the plan and is currently in the eighth year (FY 24/25). All items listed over the seven years have started or implemented, plus additional operating and capital projects that became a funding high priority. Below is a list of plan elements implemented over the last seven years:
Essential Services
Police:
• Hired personnel and purchased the required equipment & vehicles for the following positions:
o 25 Police Officers
o 4 Community Service Operators
o 8 Professional Staff
• Implemented the body worn camera program and continue to fund with Measure N
Streets:
• Completed annual street maintenance totaling $27.5 million over the last seven years.
• Completed the Downtown Street Light Replacement Project totaling $9.2 million.
Fire:
• Implemented Paramedic Squad Program which consisted of hiring personnel & purchasing equipment & vehicles for the following positions:
o 6 Paramedics
o 1 EMS Coordinate
• Funded 1 Administrative Captain and 1 Deputy Chief. Since these positions were transferred from Measure T, these positions will continue to be funded with Measure N until Measure T funding is available.
• Purchased Ladder Truck
• Purchased Mobile Aire Truck
• Constructed Station 56 located on Lovers Lane
Parks and Recreation:
• Hired Personnel and purchased essential equipment & vehicles for the following positions:
o 1 Landscape Inspector
o 1 Park Maintenance Technician
o 1 Park Maintenance Worker
o 1 Recreation Coordinator
• Funded additional maintenance for a total of $1.12 million over seven years:
o Trailway maintenance - total $187,820.
o Tree maintenance - total $342,639.
o Building maintenance - total $238,006.
o Parks maintenance - total $348,679.
Maintenance & Emerging Needs 8%
• Funded deferred building maintenance totaling $1.8 million over the last seven years.
Youth 2%
• Funded a total of $914,500 in youth programs:
o Manual Hernandez Clubhouse - total $561,653
o Funded grants for youth programs - total $256,237
o Funding for the PAL League Activities - $96,610
Uncertainty Fund Balance
• Maintained the Uncertainty Fund at 10% of budgeted revenues. As of June 30, 2024, the amount was $1.96 million.
• A new policy was adopted in June 2024 that changes the calculation to be the same as the General Fund Reserve which is 30% of operating expenditures. This will take effect for this fiscal year (FY 24/25).
Over the last seven years, Measure N has collected $117.8 million in sales tax revenue. These funds were used to fund $43 million in salaries/benefits and $42.7 million in operating expenses and capital projects. Please remember that expenditures were planned to be less than revenues to be able to fund large capital projects such as the Fire Station 51 which is estimated to cost $22 million and fund essential items as they arose. The approved ten-year plan still has three more years (FY 24/25, 25/26, 26/27) remaining which includes the following items:
• Finish Design and Construct Station 51
• Hire staff and purchase equipment:
o 4 Police Officers (1- FY 24/25, 1 - FY 25/26, 2 - FY 26/27)
o 3 Police Professional Staff (1- FY 24/25, 1 - FY 25/26, 1 - FY 26/27)
• Continue with annual Plan Elements:
o Street Maintenance - $4 million annually
o Trail/Parks/Building/Bike Path Maintenance - $228k to $240k annually
o Youth Programs - $282k annually
o Maintenance and Emerging Needs - $800k to $1.2 million annually
Summary:
The continuance of Measure N is essential to the City. Over the last seven fiscal years, Measure N has been able to enhance the City by adding and equipping 50 essential positions, growing youth services, and improving streets, parks, trails, and buildings. Staff recommends that Council continue the Measure N revenue for another 8 years and re-evaluate in 2033 as outlined in the guidelines.
The Measure N Oversight Committee approved the continuance of the measure on February 20, 2025.
Fiscal Impact:
None
Prior Council Action: N/A
Other: N/A
Alternatives: If Council chooses not to continue the measure, a resolution would be needed to suspend the ordinance by a 4/5ths vote as required.
Recommended Motion (and Alternative Motions if expected):
recommendation
I move to accept the report and continue Measure N revenue for 8 more years.
end
Environmental Assessment Status: N/A
CEQA Review: N/A
Attachments: N/A