To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: Measure X Financial Updates
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
RECEIVE report on Measure X revenues and expenditures, and CONSIDER reallocating selected Measure X balances
FISCAL IMPACT:
There would be no net fiscal impact if prior Measure X related appropriations are reallocated. Through the end of FY23-24, $8.98M in Measure X related revenue surplus has been added to the General Fund Reserve and is available for appropriation.
BACKGROUND:
On November 3, 2020, voters in Contra Costa County approved Measure X, a Countywide, 20-year, half-cent sales tax. The ballot measure language stated the intent of Measure X as “to keep Contra Costa’s regional hospital open and staffed; fund community health centers, emergency response; support crucial safety-net services; invest in early childhood services; protect vulnerable populations; and for other essential county services.”
Between Fiscal Years 2021-2024, $353.2M in total revenues was budgeted for Measure X, and with the anticipation of revenue surplus, a total of $356.8M was appropriated for project allocations. The total actual revenues received through FY23-24 was $389.1M, yielding an actual surplus of $32.2M compared to budgeted total allocations. The total audited, actual expenditures for Measure X allocations through June 30, 2024 was $134.7M. More details about revenues and expenditures are provided in the Measure X Sales Tax Independent Auditor’s Report, attached.
Available balances
During the FY24-25 budget hearings, the Board of Supervisors budgeted the use of the anticipated fund balance and appropriated an additional $17.5M for various Measure X projects, leaving $14.7M in unallocated Measure X surplus. At their October 22, 2024 meeting, the Board set aside another $5.75M total for the Employment and Human Services Department to create a $2.5M three-year pilot to increase participation in safety net services by developing an “Empowering Enrollment Program,” and $3.25M for a Guaranteed Income Program to be developed in collaboration with the community, serving groups to be determined and seniors, and the proposed plan returned to the Board of Supervisors for final approval. As a result of the recent Board actions, the remaining unallocated Measure X surplus totals approximately $8.98M.
In addition to the remaining surplus, there is one unspent balance identified for return this reporting cycle. The San Ramon Valley Fire Protection District (SRVFPD) completed behavioral health crisis response trainings for its staff and has fully implemented the program. SRVFPD has been reimbursed $546,587 for eligible, actual expenses, and the contract period has closed with an unspent balance of $193,613.
Combing the $8.98M Measure X surplus and the returned unspent balance of $193,613 yields approximately $9.17M in Measure X balances available for allocation by the Board of Supervisors.
Departmental Proposals
The Board of Supervisors made its first Measure X allocations in November 2021, following an extensive community input process. Since that time, County agencies and community partners have been hard at work planning, designing, and implementing programs to respond to unmet community needs and address local priorities. As programs are developed and ramp up in implementation, Measure X appropriations have been carried forward and continue to be applied towards their approved purposes. At this meeting, two departments are requesting to repurpose portions of their existing Measure X allocations, and three departments propose new allocations, for a total of five requests highlighted below for Board consideration.
1. The Employment and Human Services Department seeks approval to reallocate their prior years’ savings and unobligated portions of future allocations totaling $10.6M to the capital budget for the planned youth centers in D3 and D5.
2. The Public Defender’s Office has an unspent balance of $616,404 from prior year salary savings for Stand Together Contra Costa, and proposes to repurpose the funds for three one-time requests:
a. $275,000 to provide 2 years of Legal Services Coordination to support legal system navigation for migrants impacted by the Concord Federal Immigration Court
b. $170,000 to provide 2 years of coordination and outreach for monthly self-help Immigration Clinics in Contra Costa
c. $170,000 for the purchase of a recreational vehicle (RV) to serve as a mobile legal clinic providing on-site legal consultations and services for hard to reach immigrants
Additionally, there are three requests for new Measure X allocations:
3. Capital projects
a. Public Works requests $3.75M one-time for Veterans’ Halls deferred maintenance
b. Library requests $517,241 one-time for increased facilities maintenance costs which could be partially offset by $105,762 in prior year salary savings from the Early Literacy (Rolling Reader) allocation
4. The County Administrator’s Office is also requesting a new Measure X allocation of $500k one-time to support an organizational study of the County’s Emergency Management System
The County Administrator’s Office seeks direction from the Board on the departmental proposals listed above and discussed in their presentations during the morning session. Additional details about allocations and unspent balances are provided in the Measure X Financial Updates presentation (Attachment A) and Measure X Sales Tax Independent Auditor’s Report (Attachment B).
CONSEQUENCE OF NEGATIVE ACTION:
The existing Measure X allocations would remain unchanged.