Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Manager
Subject: Measure K Oversight Committee’s Annual Report for Fiscal Year 2017-18
RECOMMENDATION:
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Accept the San Mateo County Measure K Oversight Committee’s Annual Report for Fiscal Year 2017-18.
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BACKGROUND:
Measure A is the ten-year half-cent general sales tax approved by San Mateo County voters in November 2012. On November 8, 2016 the voters of San Mateo County approved Measure K, which extends Measure A for 20 years. The Measure requires the appointment of “a committee to perform an annual audit of the general fund revenues generated by [the] Retail Transactions (Sales) and Use Tax.” The Committee is bound by a set of Bylaws and Rules of Procedure (“Bylaws”), which set forth the operating procedures and duties of the Measure K Oversight Committee. One of the requirements laid out in the Bylaws is for the Committee to present an annual report to the Board of Supervisors with the Committee’s review of (1) the annual audit of Measure K receipts, (2) results of the Agreed-Upon Procedures (AUP) on Measure K spending, and (3) performance report for existing Measure K initiatives.
DISCUSSION:
The Measure K Oversight Committee met in November and February to complete its review of the results of the annual audit and AUP performed by the Controller’s Office, and the annual performance report prepared by the County Manager’s Office for the fiscal year ending June 30, 2018. Following the approval of the audit and AUP, an ad hoc committee was formed to recommend revisions to performance measures for existing programs and initiatives. The annual audit, AUP, and Performance Report for FY 2017-18 Measure K initiatives and programs are included in this annual report.
Summary of Controller’s Audit of Receipts and Review of Spending
The annual report contains the results of the Controller’s audit of Measure K receipts, and results of the agreed-upon procedures on Measure K spending for the period covering July 1, 2017 to June 30, 2018. Measure K receipts in the amount $89,602,981 were received, a 7.9% increase from the previous year. Measure K expenditures were $88,416,871 in the categories of public safety, health and mental health, youth and education, housing and homelessness, parks and environment, older adults, veterans and community services, and district-discretionary spending.
There were no exceptions noted in the audit and agreed-upon procedures. It is recommended that the Committee accept the Controller’s Report.
Summary of County Manager’s Performance Report
There are 475 unique performance measures monitored for Measure K initiatives in progress through June 30, 2018. Based on data reported by County departments:
• 52.4% of performance measures are meeting targets for FY 2017-18
• 44.2% are not meeting targets or are still in progress
• 3.4% do not have targets in place yet
Recommendations from the Performance Measures Ad Hoc Committee have been incorporated in this annual report or will be included in future reports. They include changes to the Measure K Performance Reporting structure, changes in how the calculations of measures meeting targets are described and Measure K web site additions.
FISCAL IMPACT:
There is no fiscal impact in accepting this report.
ATTACHMENTS:
Measure K Oversight Committee Fiscal Year 2017-18 Report:
• Letter from Chair of Measure K Oversight Committee
• Executive Summary
• Controller’s Report: Audit of Receipts and Results of Agreed-upon Procedures
• County Manager’s Performance Report
• Recommendations from Measure K Performance Measures Ad Hoc Committee
• Information Items Requested by Measure K Oversight Committee