Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisor
From: Michael P. Callagy, County Manager
Subject: Fiscal Year 2021-23 Budget for Measure K Funds
RECOMMENDATION:
title
Measure K: Study Session II regarding the budget for Measure K revenue and approve the Measure K budget for the upcoming Fiscal Year 2021-23 budget cycle.
body
BACKGROUND:
Measure K is the half-cent general sales tax initially approved by San Mateo County voters in November 2012 (then known as Measure A) and extended in November 2016 for a total of thirty years. The County’s website (<https://cmo.smcgov.org/measurea>) details the projects funded by Measure K.
On September 29, 2020, the Board adopted the County’s FY 2020-21 budget, which included $78.9 million in Measure K revenue. The $78.9 million in Measure K revenue reflected a reduction of $15.65 million from the estimated budget due to the anticipated economic effects of the COVID-19 pandemic. The specific reductions were as follows:
• Pescadero Fire Station $6,000,000
• Fire Engine Replacement Fund $1,500,000
• Affordable Housing Fund $5,000,000
• District-Discretionary Funds $2,000,000
• COLA $1,150,000
$15,650,000
In preparation for the upcoming Fiscal Year (FY) 2021-23 budget cycle, the Board of Supervisors (“Board”) ad-hoc subcommittee, consisting of Supervisor Pine and Supervisor Canepa, worked with staff to review anticipated Measure K revenue for FYs 2021-23 and to plan a study session for the full Board to consider options for Measure K priorities.
On March 9, 2021, the Board conducted its first study session regarding Measure K priorities. The County Manager informed the Board that the anticipated Measure K revenue for FY 2021-22 was $92 million, leaving $13 million in revenue that was not already allocated to ongoing initiatives available for Board priorities in FYs 2021-23. At this meeting, the Board members made recommendations regarding the $13 million to be included in the upcoming budget cycle.
DISCUSSION:
In consideration of the priorities of the Board, the Board subcommittee worked with staff to develop the following recommendation for the available Measure K funding above the amount of ongoing initiatives for the FY 2021-23 budget cycle:
|
Initiative |
FY 2021-22 |
FY 2022-23 |
|
Pescadero Fire Station |
2,000,000 |
4,000,000 |
|
Fire Engine Replacement Fund |
750,000 |
1,500,000 |
|
COLA |
1,150,000 |
626,180 |
|
Homelessness |
2,500,000 |
2,500,000 |
|
Fire Mitigation |
2,000,000 |
2,000,000 |
|
Active Transportation |
500,000 |
|
|
Curiodyssey |
1,000,000 |
|
|
Middlefield Road Bike Lane |
|
200,000 |
|
Summer Reading Program Expansion to North Fair Oaks |
66,667 |
66,667 |
|
Refresh Library - North Fair Oaks |
500,000 |
|
|
Middlefield Road Solar Grid Installation |
200,000 |
|
|
Flood and Sea Level Rise District |
500,000 |
500,000 |
|
College for All |
1,000,000 |
1,000,000 |
|
Tower Road Fire Station (Planning) |
1,000,000 |
1,000,000 |
|
TOTAL |
$13,166,667 |
$13,392,847 |
Staff is requesting that the Board approve the proposed Measure K budget for the FY 2021-23 budget cycle. Upon direction from the Board, staff will include the Measure K budget in the County recommended budget brought forward in June.
FISCAL IMPACT:
The FY 2021-22 and FY 2022-23 Recommended Budgets will include $92 million in Measure K revenue, including the $78.9 million in the current FY 2020-21 Adopted budget as well as the additional $13,166,667 and $13,392,847, respectively, in one-time Measure K funding described above. Funding above the $13 million in each fiscal year will be paid for out of Measure K Reserves.