To: Members of the Measure G Citizen Oversight Committee
From: Steve Potter, City Manager
Prepared By: Liz Habkirk, Assistant City Manager
TITLE:
Title
Measure G Citizen Oversight Committee Annual Report Discussion
LABEL
RECOMMENDED ACTION:
Recommendation
Discuss options for the Measure G Annual Report and provide direction to staff on content and layout.
Body
DISCUSSION:
The responsibilities of the Measure G Citizen Oversight Committee are outlined in Napa Municipal Code Section 3.15.050 (Committee Duties). In addition to receiving regular updates on projects, programs and services that are funded by Measure G, the Committee is specifically required to review and report on the financial audits of the Measure G retail transactions and use tax revenues and expenditures. Today’s discussion will provide the Committee with an overview of the City’s Measure G Communications Plan, information on the Annual Auditing process and timing of annual Oversight report release, and examples of report components.
Measure G Communications Plan
The City Council has included a Focus Area of Community Engagement for the current budget cycle and has also directed staff to ensure that transparency around Measure G expenditures is highly prioritized. To that end, staff has developed a robust and ongoing communications plan that will include a variety of opportunities for the City to present and discuss Measure G related efforts. These will include:
Digital Channels:
• City Website:
o Dedicated Measure G page with project updates, Oversight Committee details, and FAQs.
• Social Media:
o Post updates, progress visuals, and promote public meetings.
o Platforms: Facebook, Instagram, Twitter, and Nextdoor.
• Email Newsletters:
o Monthly updates to city subscribers highlighting project milestones and transparency efforts, as well as issuance of annual report.
In-Person Engagement:
• Community Meetings:
o Host informational sessions leading up to and following significant milestones including Annual Report release.
• Town Halls:
o Invite residents to provide input and ask questions about spending priorities, projects, etc.
• Informational “Road Shows”:
o Visit service clubs, local organizations and community groups to present updates on Measure G projects.
Traditional Media:
• Press Releases:
o Announce key milestones, Annual Report release and project and program progress updates.
• Local Newspapers:
o Publish op-eds, ads and inserts explaining Measure G benefits and transparency measures.
Visual and Informational Materials:
• Infographics and Maps:
o Show where Measure G funds will be allocated (e.g., project sites, roads, parks).
• Project Signage:
o Sandwich boards and other signage near projects made possible by Measure G
• Printed Brochures:
o Distributed at libraries, community centers, and City Hall.
Annual Fiscal Year Audit Background
The City Charter requires that the City Council engage an independent certified public accounting firm to conduct this annual financial audit of the City. This audit results in the “Annual Comprehensive Financial Report” or ACFR. The ACFR conforms to generally accepted accounting principles and the latest applicable Government Accounting Standards Board (GASB) Statements.
The City has consistently received the Government Finance Officers Associations (GFOA) Certificate of Achievement for Excellence in Financial Reporting and staff endeavors to maintain that standing each year with our auditing process.
The City’s fiscal year runs from July 1st to June 30th and the budget and audit process is a near continual effort during this time. The development of the City’s two-year budget begins in January of the planning year. For this current budget cycle, planning for the FY2025/26 and FY2026/27 fiscal years began in January 2025. Council holds their annual workshop in January providing guidance on the Focus Areas for staff to consider in budget development. Finance staff develop the long-term financial forecast and distribute information on revenue growth estimates, salary/benefit forecasts, and other information to departmental staff for use in preparing budget recommendations.
Throughout the spring, staff in Finance and the operating departments work to prepare budget recommendations, requests, and modifications. During the process, recommendations are presented to the City Manager who provides final direction on which items will be included in the recommendations to the City Council. A Budget Workshop is held in April to present these initial recommendations and receive feedback and direction from the City Council. With that direction, Finance staff and the City Manager prepare the final budget for public hearings held in June with adoption of the budget required before June 30th (the end of the fiscal year).
For the second year of a two-year budget cycle, a more streamlined review process occurs to address any significant changes in operational needs or financial forecast and the Council considers any recommended changes. Called the “Mid-Cycle Budget Adoption” this occurs in June prior to start of the second fiscal year and generally changes are fairly limited in nature.
The ACFR development begins in June of each year, prior to the close of the fiscal year books. The auditors conduct an “interim audit” and begin reviewing the City’s policies and initial accounting information. After the end of the fiscal year on June 30th, staff in the Finance Department begin the process of closing the books, which can take several months. All outstanding invoices, accounts receivable, accounting journals and fund balance calculations are processed during this time period.
Auditors then conduct the bulk of the work after the City has officially closed the fiscal year, generally in September/October. An initial report is provided to Council in late Fall with the final ACFR presented and accepted typically in December each year. The Auditors provide their final report which is presented to Council in January or February, along with any findings and responses from the City.
Annual Measure G Reporting
While this Committee can expect frequent updates on the programs and projects funded by Measure G, the adoption of the ACFR in December for the previous fiscal year will provide the official accounting information that will be used in the Annual Report.
The first annual report will include only one quarter of receipts (April 1-June 30, 2025).
Annual reports for similar tax measures have been reviewed for content and communication style. Components of these reports generally included are:
- Background Information/Ballot Language
- Revenue & Expenditure Tables
- Performance Measures/Operational impacts of funding
- Project lists
- Narrative updates of projects
- Financial outcomes and spending history
- Conclusions
Attached are several examples of annual reports for the Committee’s review. Direction to staff is requested to begin preparing for the first annual report which will be presented to the Committee for feedback in the coming months and then approval subsequent to finalization of the FY2024/25 ACFR.
FINANCIAL IMPACTS:
None.
CEQA:
The City Manager has determined that the recommended action described in this agenda report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1- 4 Annual Report Examples
NOTIFICATION:
None.