To: Members of the Measure G Citizen Oversight Committee
From: Donna Lee, Finance Director
Prepared By: Seth Anderson, Budget Officer
TITLE:
Title
Measure G Fiscal Year 2024/25 End of Year and Fiscal Year 2025/26 Mid-Year Update
LABEL
RECOMMENDED ACTION:
Recommendation
Receive a presentation on Measure G revenue and expenditures for Fiscal Years 2024/25 and 2025/26.
Body
DISCUSSION:
The purpose of this presentation is to provide the Measure G Citizen Oversight Committee with an update on the financial status of the Measure G Transaction and Use Tax (TUT).
FY 2024/25 End of Year
This update includes a review of audited Measure G TUT revenues received between July 1, 2024 and June 30, 2025.
The City’s financial audit for FY 2024/25 was completed by the independent certified public accounting firm Lance, Soll & Lunghard (LSL), LLP, on December 10, 2025. The City received an unmodified (“clean”) audit opinion, indicating that the financial statements are presented fairly in all material respects in accordance with generally accepted accounting principles.
Measure G revenue collection began on April 1, 2025. For FY 2024/25, Measure G TUT revenues totaled $5.7 million, which was $0.6 million above the budgeted estimate of $5.1 million.
Of the total revenue received, $5.0 million had been committed to capital improvement projects that were in the planning stages at fiscal year-end. These committed funds were rolled forward into FY 2025/26. As a result, the Measure G fund closed FY 2024/25 with an unassigned fund balance of $0.7 million, which remains available for future Council appropriation.
FY 2025/26 Mid-Year
The FY 2025/26 Mid-Year Report provides an analysis of Measure G TUT revenues and expenditures for the first six months of the fiscal year. Mid-Year reporting allows staff to evaluate actual revenues received and expenditures incurred, and to recommend adjustments to revenue or expenditure budgets if trends or economic conditions differ from original projections.
The adopted FY 2025/26 Measure G revenue budget of $22.4 million remains consistent with consultant projections. No revenue adjustments were recommended to the City Council as part of the March 3, 2026 Mid-Year Update.
One budget adjustment was recommended to establish an Investment Earnings budget, as Measure G funds, like other City funds, earn interest on their daily cash balances. No adjustments were recommended to the adopted Measure G expenditure budget.
The FY 2025/26 adopted budget includes $22.4 million in Measure G revenues to support $22.3 million in Measure G expenditures.
As of December 31, 2025, $8.0 million in Measure G revenue has been received, reflecting sales tax receipts attributable to July through October activity due to standard reporting and remittance timing. Transfers out of the Measure G fund for core service enhancements, operating expenditures, and capital projects total $7.8 million.
The Finance Department has completed two quarterly reconciliations during FY 2025/26 to ensure that transfers from the Measure G fund directly correspond with Council-approved appropriations and voter-approved purposes. These reconciliations support fiscal transparency and accountability in the use of Measure G revenues.
FINANCIAL IMPACTS:
None.
CEQA:
The Finance Director has determined that the Recommended Action described in this staff report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060 (c).
DOCUMENTS ATTACHED:
ATCH 1 - Measure G Financial Reports
NOTIFICATION:
None.