HomeMy WebLinkAbout0003_1_FY 2021-22 Measure Z Budget Spending Report - SR
REPORT TO MEASURE Z CITIZEN COMMITTEE
To: Honorable Members of the Committee
From: Jason Simpson, City Manager
Prepared by: Nicole Dailey, Assistant to the City Manager
Date: May 13, 2021
Subject: Fiscal Year 2021-22 Measure Z Budget Spending Plan
Recommendation
Review and approve 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. Measure Z
will soon be formally codified in Chapter 3.30 of the Lake Elsinore Municipal Code, which is
available online on the City's website.
The City's primary revenue sources include sales and property taxes. However, nearly all sales
taxes generated locally go to the State or the County. For example, while the Sales and Use
Tax Rate in the City of Lake Elsinore was previously 7.75 percent, the City was only receiving
one percent of the sales taxes collected within the City. Other key sources of revenue for the
City include special taxes (typically Mello-Roos assessments), hotel occupancy taxes, and user
fees.
Measure Z requires all funds to be used in Lake Elsinore, ensuring that a higher percentage of
sales tax dollars stay local for City services. By law, no Measure Z funds can be taken by the
State, County, or Federal government. Therefore, all funds generated by Measure Z will remain
locally controlled and spent for City services and projects.
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
independent annual audit of those revenues and expenditures prepared by a Certified Public
Accounting firm. The Committee's report shall then be submitted to the City Council for review
and discussion at a public meeting of the City Council.
Fiscal Year 2021-22 Measure Z Budget Spending Plan
May 13, 2021
Page 2
Discussion
Measure Z officially went into effect on April 1, 2021, updating Lake Elsinore's sales tax rate to
8.75%. However, the City is not expecting to start receiving funds from Measure Z until July
2021.
Measure Z funds are first delivered to the State Board of Equalization and then remitted to the
City. Proceeds of the tax are unrestricted general funds that could be used to pay for any
general municipal services including, but not limited to, police and fire services, road
maintenance, and homelessness solutions.
Since 2016, the City has regularly conducted community opinion surveys to gauge overall
community satisfaction with City services and gather opinions, perceptions, and priorities about
its services and future projects or needs. The results from these surveys have provided critical
information to assist the City in making sound, strategic decisions in various areas, including
prioritization, planning, performance measurement, policymaking, community engagement, and
budgeting.
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
The City has identified Measure Z projects for the Fiscal Year 2021-22 as outlined in the
attached Measure Z Budget Spending Plan based on the priorities identified by the community.
As shown, staff has 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
a total of $14,145,148.
As a starting point for discussion, staff is recommending allocating Measure Z funding 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%
Fiscal Year 2021-22 Measure Z Budget Spending Plan
May 13, 2021
Page 3
During these unprecedented times, the health and safety of our residents have been our highest
priority. Many of the items proposed will ensure our community is prepared for any future
medical or catastrophic emergency, including adequate, effective public safety, paramedic, fire,
and 9-1-1 emergency response times.
While the City has made great strides toward maintaining our streets and roads in recent years,
many of our local streets have not been repaired or resurfaced in more than 20 years. A
significant number of projects have been included to address the community's desires to fix
potholes and repave our streets while also completing deferred maintenance in the City's parks
and other City facilities.
In addition, funding has been included to help keep Lake Elsinore healthy, safe, clean, and well
maintained by adequately addressing homelessness, resolving public safety issues throughout
the City, and supporting the community through the pandemic.
The Committee's report of its review of the proposed budget spending plan is needed before the
City Council's meeting on May 25, 2021. City Staff will be presenting the proposed FY2021-22
Measure Z spending plan to the City Council including comments from the Committee as part of
the overall budget.
Fiscal Impact
The proposed expenditures as outlined in the Fiscal Year 2021-22 Measure Z Budget Spending
Plan will be adopted the City Council as part of the Fiscal Year 2021-22 Annual Operating
Budget.
Exhibits
A – Fiscal Year 2021-22 Measure Z Budget Spending Plan