TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Parcel Tax Fiscal Oversight Committee Measure VV/C1 Proceeds
BRIEFING ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider receiving a report from the District Parcel Tax Fiscal Oversight Committee on Measure VV/C1 tax proceeds for the year ended June 30, 2024.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Public oversight of the District’s parcel tax measure and funding is critical to maintaining the public’s trust of the District as a fiscally responsible agency.
BUDGETARY/FISCAL IMPACT:
Audited statements for the Fiscal Year ending June 30, 2024, show Measure VV/C1 tax receipts of $30.0 million to the District.
BACKGROUND/RATIONALE:
On June 22, 2016, the Board of Directors adopted Resolution No. 16-024 placing Measure C1 on the ballot. Measure C1 extended the existing Measure VV parcel tax of $96 per parcel per year in Special Transit Service District No. 1 through June 30, 2039. Like Measure C1’s predecessor Measures AA, BB, and VV, the resolution required that an independent fiscal oversight committee of community representatives review the use of the funds and provide an annual report to the Board. The fiscal oversight committee that was originally formed for Measure AA and has continued following the approval of subsequent measures.
The committee is required to meet at least once per year to determine that funds generated by the parcel tax measure have been expended in accordance with the intentions of the voters. In addition, the Committee shall provide a written report and/or resolution regarding its findings to the Board of Directors.
On November 14, 2024, staff presented Staff Report 24-540 regarding FY 2023-24 Measure VV/C1 Tax proceeds for AC Transit Special District 1 to the Committee. The report included the draft Measure VV/C1 Schedules with the Independent Accountant’s Report for the Year Ended June 30, 2024. Fiscal Year 2023-24 Measure VV/C1 proceeds totaled approximately $30.0 million and were applied to expenditures in District 1. The Committee received, reviewed, and approved the report and attested that Measure VV/C1 funds received in FY 2023-24 have been spent in accordance with the intent of the Measure by adopting Resolution 23-001.
Staff recommends the Board acknowledge receipt of Resolution 23-001 from the Committee for the Fiscal year ended June 30, 2024. The Committee Agenda and accompanying packet of information from the meeting of November 14, 2024, are attached.
ADVANTAGES/DISADVANTAGES:
The advantage of this report is to show to the Board that the Parcel Tax Oversight Committee verified the receipt of the annual Measure VV/C1 Audit Financial Statements and the supporting Alameda-Contra Costa Transit District Report for FY 2023-24. There are no disadvantages to this informational report.
ALTERNATIVES ANALYSIS:
There are no practical alternatives to presenting the results of the Parcel Tax Fiscal Oversight Committee to the Board of Directors.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 23-488, November 7, 2023, Report from the Parcel Tax Fiscal Oversight Committee on measure VV/C1 Financial Statement.
ATTACHMENTS:
1. Resolution 24-001 adopted by the Parcel Tax Oversight Committee on November 14, 2024
2. Staff Report 24-540
Prepared by:
Chris Andrichak, Chief Financial Officer
In Collaboration with:
Kenneth Myers, Controller
Approved/Reviewed by:
Aimee L. Steele, General Counsel/Chief Legal Officer
Chris Andrichak, Chief Financial Officer