Title
Informational Report on Measure W fund balance and expenditures for FY 2025-26. (Drew Corbett, Interim Director of Finance)
label
RECOMMENDATION
Recommendation
This report is informational and requires no formal action from the Committee.
Body
BACKGROUND/DISCUSSION
On November 3, 2015, South San Francisco voters 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 - (completed)
a. Police Operations & 911 Dispatch Center (pf1707)
b. Library, Parks and Recreation and Community Theater/Council Chamber (pf2103)
2. Orange Memorial Park Projects
a. Multi-Use Sports Fields - (completed)
b. Aquatic Center - (under construction, to be completed in 2026)
c. All-Abilities Playground (partially funded by Measure W bond funds, to begin design in 2026)
d. Park Bridges (partially funded by Measure W bond funds, start date TBD)
3. Paving Program
a. Used to augment City efforts towards street maintenance and pothole repairs - (completed)
4. Maintenance Services Building Roof Replacement - (under construction)
A. MEASURE W FUND BALANCE THROUGH August 31, 2025
The following is a summary of Measure W revenues and expenditures since its inception through August 31, 2025:
Table 1: Measure W Fund Balance Summary
As indicated in the table above, the fund balance for Measure W as of August 31, 2025, was $23,226,470, subject to further changes from transactions to be recorded during year-end closing and annual audit for FY 2024-25.
B. FY 2025-26 REVENUES (July 1, 2025 - August 31, 2025)
For Fiscal Year 2025-26, the City has not recorded any Measure W sales tax revenues due to a 2-month lag in collection.
C. FY 2025-26 EXPENDITURES (July 1, 2025 - August 31, 2025)
The following is a summary of expenditures as of August 31, 2025:
Table 2: Expenditures
In 2025/26 City staff hope to advance progress on construction of a new Fire Station at 61 Camaritas to replace the station at the old Municipal Services Building. The station is currently in design. Staff will be asking City Council to approve the funding sources to begin construction in 2026, which may include a recommendation to utilize a small percentage of Measure W cash balance.
Revenue collected will be used to make debt services payments for the three lease revenue bonds issued by the City to fund capital projects previously mentioned. Debt services payments of $13.2 million are scheduled to occur in FY 2025-26.
CONCLUSION
As of August 31, 2025, no Measure W sales tax revenue has been recorded by the City for Fiscal Year 2025-26 and $31,819 has been expended.
Attachments:
1. Revenue Detail report - FY 2024-25 (As of June 30, 2025)
2. Revenue Detail report - FY 2025-26 (As of August 31, 2025)
3. Expenditure Detail report - FY 2024-25 (As of June 30, 2025)
4. Expenditure Detail report - FY 2025-26 (As of August 31, 2025)
5. PowerPoint Presentation