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Informational Report on Measure W fund balance and expenditures for FY 2024-25. (Karen Chang, Director of Finance)
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RECOMMENDATION
Recommendation
This report is informational and requires no formal action from the Committee.
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BACKGROUND/DISCUSSION
On November 3, 2015, South San Francisco residents approved a half-cent sales tax by an overwhelming majority. The adoption of Measure W ensures that the City of South San Francisco will be able to maintain and enhance locally controlled City services that the community cares about and has come to expect - including neighborhood police patrols, 911 response, programs for seniors & disabled residents, crime and gang suppression programs, street maintenance and pothole repair, youth/teen educational and recreational programs, a police operations center that meets earthquake safety codes, and other essential city services.
The voter-approved half-cent sales tax (Measure W) went into effect on April 1, 2016. Since that time, the sales tax proceeds have been accounted for separately from the City’s General Fund to track the commensurate revenues and expenditures.
Major projects currently funded by Measure W are:
1. Community Civic Campus Program
a. Police Operations & 911 Dispatch Center (pf1707)
b. Library, Parks and Recreation and Community Theater/Council Chamber (pf2103)
2. Orange Memorial Park Project
a. Multi-Use Sports Fields
b. Aquatic Center
c. Park Playground
d. Park Bridges
3. Paving Program
a. Used to augment City efforts towards street maintenance and pothole repairs
A. MEASURE W FUND BALANCE THROUGH June 30, 2025
The following is a summary of Measure W revenues and expenditures since its inception through June 30, 2025:
Table 1: Measure W Fund Balance Summary
On February 12, 2025, the City Council adopted Resolution 22-2025 to eliminate the $3 million transfer from Measure W fund to General Fund. The sales tax revenue for FY 2024-25 was also adjusted to $14.5 million reflecting the latest sales tax projection trend. As indicated in the table above, the fund balance for Measure W as of June 30, 2025, was $19,440,024, subject to further changes from transactions to be recorded during year-end closing and annual audit.
The City anticipates a slight increase in sales tax of 1.3% to $14.6 million for FY 2025-26 from the previous fiscal year. Staff anticipates continuing work under the existing project appropriation, but no new appropriations or capital projects are planned at this time for FY 2025-26. Debt services payments of $13.2 million are scheduled to occur in FY 2025-26.
B. FY 2024-25 REVENUES (July 1, 2024 - June 30, 2025)
For Fiscal Year 2024-25, the City has recorded $11.4 million in Measure W sales tax revenues through March 2025. Due to the typical two-month lag in sales tax collections, the remainder of the revenue for the fiscal year will be included in the next report.
C. FY 2024-25 EXPENDITURES (July 1, 2024 - June 30, 2025)
The following is a summary of expenditures as of June 30, 2025:
Table 2: Expenditures
Ongoing Capital Project Funds appropriated in prior years by the City Council but unspent will be carried over as appropriate funds to be spent in FY 2024-25 or future years.
CONCLUSION
As of June 30, 2025, $11.4 million of Measure W sales revenue has been recorded by the City for Fiscal Year 2024-25 and $12.7 million has been expended. These balances are subject to changes from the completion of year-end closing and annual audit.
Attachments:
1. Revenue Detail report - FY 2024-25 (As of June 30, 2025)
2. Expenditure Detail report - FY 2024-25 (As of June 30, 2025)
3. Power Point Presentations