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HomeMy WebLinkAbout0004_1_Measure Z Update Report - SR REPORT TO MEASURE Z CITIZEN COMMITTEE To: Honorable Members of the Committee From: Jason Simpson, City Manager Prepared by: Nicole Dailey, Deputy City Manager Date: October 28, 2021 Subject: Update on 2021-22 Measure Z Budget Spending Plan Recommendation Receive and file an update on the Fiscal Year 2021-22 Measure Z Budget Spending Plan. Background On November 3, 2020, residents of the City of Lake Elsinore voted in favor of Measure Z, a locally controlled one-cent, or one percent, transactions and use tax to generate unrestricted general fund dollars to address City service, public safety, and local recovery needs. Before the passage of Measure Z, the City engaged residents and businesses as part of its Let's Talk Lake Elsinore campaign to identify the community's needs. Based on this effort and ongoing community opinion surveys, residents identified the following spending priorities:  Preparing for any public health or catastrophic emergency  Having adequate 911 emergency capacity  Continuing to address homelessness and supporting residents and families in transition  Improving fire protection and paramedic services  Keeping public areas safe, healthy, and clean  Continuing law enforcement services, including effectively staffed neighborhood patrols  Supporting residents and local businesses through our local recovery As part of the passage of Measure Z and as specified in Lake Elsinore Municipal Code Chapter 3.30, Section 3.30.160, the City was required to establish an independent Citizens Committee to serve in an advisory role to the City Council regarding the expenditure of revenues generated by the transactions and use tax. The Measure Z Citizen Committee's primary role is to independently review and provide advice and guidance concerning the expenditure of Measure Z revenues. The Committee is tasked with meeting, in a public forum, at least twice each calendar year to ensure funding is being used in a manner consistent with the established goals and needs of the community. Specifically, the Committee must annually review and report on the City's proposed and actual expenditure of proceeds generated by the transactions and use tax along with reviewing the Update on 2021-22 Measure Z Budget Spending Plan October 28, 2021 Page 2 independent annual audit of those revenues and expenditures prepared by a Certified Public Accounting firm. Discussion Measure Z officially went into effect on April 1, 2021, updating Lake Elsinore's sales tax rate to 8.75%. The City identified Measure Z projects for the Fiscal Year 2021-22 as outlined in the City’s Measure Z Budget Spending Plan attached as Exhibit A. This plan was developed and prioritized based on input from the community. The plan was reviewed by the Citizen Committee in May 2021 and adopted by the City Council in June 2021. At this time, staff estimated the City will receive $2.8 million in Measure Z funding for the Fiscal Year 2020-21 and $11.25 million in the Fiscal Year 2021-22 plus investment earnings, for an estimated total of $14,145,148. The Measure Z funding was allocated to each of the following areas: FY2021-22 DESCRIPTION AMOUNT % SHARE Police Services $ 1,792,634 12.67% Fire Services 1,391,974 9.83% Animal Control 55,600 0.39% Road and Infrastructure Improvements/Maintenance 8,636,070 61.01% Park and Facility Improvements/Maintenance 484,500 3.42% Assistance - Local Recovery & Economic Development 481,470 3.40% Homeless Services 1,311,900 9.27% $ 14,154,148 100.00% The Measure Z Citizen Committee initially met on May 13, 2021 and again on July 1, 2021. At the last meeting, the Committee requested to meet ahead of the new year to get an update on Measure Z expenditures since July 1, 2021. Expenditures to date are shown in Exhibit B. Several of the projects have been initiated and/or completed. Examples include the Collier Avenue Pavement Rehabilitation & Striping Project, The Avenues Pavement Rehabilitation Project, hiring of additional deputies and staff including the City’s first park deputy and full time Traffic Engineer and securing the City’s new CAL FIRE medic squad, which should be arriving in January of 2021. Staff will provide an overview of the projects and programs completed to date for review by the Committee. The Measure Z Citizen Committee will meet again in January or February to begin considering expenditures for next fiscal year. The fiscal year for the City is from July 1 to June 30 each year. Fiscal Impact None Exhibits A – Fiscal Year 2021-22 Measure Z Budget Spending Plan B – Statement of Revenues, Expenditures, and Changes in Fund Balance for Measure Z