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HomeMy WebLinkAboutItem No. 02 - FY 2022-23 Measure Z Budget Spending Plan Update Page 1 of 2 REPORT TO THE MEASURE Z CITIZEN COMMITTEE To:Honorable Chair and Members of the Measure Z Citizen Committee From:Jason Simpson, City Manager Prepared by:Brendan Rafferty, Fiscal Officer Date:February 6, 2023 Subject:Fiscal Year 2022-23 Measure Z Budget Spending Plan Update Recommendation Receive and File the Fiscal Year 2022-23 Measure Z Budget Spending Plan Update. 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 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. FY 2022-23 Measure Z Budget Update Page 2 of 2 Discussion 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: •Having adequate 911 emergency capacity •Preparing for any public health or catastrophic emergency •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 2022-23 as outlined in the attached Measure Z Budget Spending Plan based on the priorities identified by the community. Staff estimates the City will have approximately $29.1 million in Measure Z funds for the Fiscal Year 2022-23. This amount includes fund balance, revenues and investment earnings. The table below is a summary of budgeted expenditures: FY2022-23 DESCRIPTION AMOUNT % SHARE Police Services $ 1,720,146 7.61% Fire Services 1,994,300 8.83% Animal Control 174,000 0.77% Road and Infrastructure Improvements/Maintenance 17,080,363 75.65% Homeless Services 1,609,684 7.14% $ 22,578,493 100.00% Fiscal Impact The updated Fiscal Year 2022-23 Measure Z Budget Spending Plan was adopted by City Council as part of the Fiscal Year 2022-23 Mid-Year Operating Budget. Attachments Attachment 1 - Statement of Revenues, Expenditures, and Changes in Fund Balance CITY OF LAKE ELSINORE, CALIFORNIA STATEMENT OF REVENUES, EXPENDITURES, and CHANGES IN FUND BALANCE ‐ BUDGET AND ACTUAL As of January 31, 2023 MEASURE Z Annual  Ammended  Budget   Total Activity  Percentage  of Budget REVENUES: Sales Tax 15,507,000$  6,362,018$    41% Investment Interest 50,100           49,182            98% TOTAL REVENUES 15,557,100   6,411,200      41% EXPENDITURES: Public Safety Programs (1) Community Support 211,120         211,120         100% Police Services 2,528,510      2,528,510      100% Fire Services 1,994,300      1,994,300      100% Animal Services 174,000         174,000         100% Community Development 590,200         590,200         100% Public Services 102,980         102,980         100% Capital Improvement Programs (2) Annual Citywide Dirt Road Paving Program ‐ Z10047 853,818           0% Annual Citywide Landscape ‐ Z10009 2,971,435        40,013             1% Annual Citywide Sidewalk Improvements ‐ Z10010 880,000           0% Annual Citywide Slurry Seal Program ‐ Z10014 529,680           0% Auto Center Drive Bridge Retrofit ‐ Z10016 375,000           29,312             8% Camino Del Norte ‐ Z30016 918,190           0% Canyon Hills Park Upgrades ‐ Z40024 2,310,386        0% Citywide Park Improvements ‐ Z40023 1,994,837        0% Dexter Traffic Light 187,912           0% Emergency Operations Center ‐ Z20036 300,000           0% Fire Station Building Rehab ‐ Z20020 365,000           0% Gedge Street & Treleven Avenue Resurfacing ‐ Z10074 250,000           0% La Strada Extension ‐ Z10073 600,000           0% Main Street Interchange ‐ Z10017 1,700,000        0% Main Street Safety and Pedestrian Improvements ‐ Z10075 500,000           713                   0% Peck and Chestnut ‐ Z10070 167,825           0% Rice Canyon Revetment ‐ Z30014 545,000           0% Storm Drain Catch Basin Inlet Filter Installation ‐ Z30015 75,000             0% Summerly Park Improvements ‐ Z40029 941,200           0% Terra Cotta Road Street Improvements ‐ Z10092 512,100           47,937             9% TOTAL EXPENDITURES 22,578,493$  5,719,085$    25% Revenues Over/(Under) Expenditures (7,021,393)    692,115         OTHER FINANCING SOURCES/(USES): Operating Transfers In ‐                  ‐                   0% Operating Transfers Out ‐                  ‐                   0% TOTAL OTHER FINANCING SOURCES/(USES)‐                  ‐                   0% REVENUES OVER/(UNDER) EXPENDITURES and OTHER (7,021,393)    692,115         Beginning Fund Balance as of 07/01/2022 13,589,432   13,589,432   Ending Fund Balance as of 01/31/2023 6,568,039$    14,281,547$  Notes: (1) Public Safety Program expenditures will be reconciled at year end.  (2) First half of Fiscal Year involves planning and design stages.