To: Board of Supervisors
From: Monica Nino, County Administrator
Report Title: DISCUSS next steps for unallocated one-time Measure X funds.
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
DISCUSS next steps regarding $1,471,362 in unallocated Measure X funds.
FISCAL IMPACT:
There is no immediate fiscal impact from consideration of this report. Future fiscal impacts will depend on Board direction regarding the use of unallocated Measure X funds.
BACKGROUND:
Measure X, the County’s half-cent sales tax, has generated approximately $478.7M in revenue since collections began. As of the March 2025 reporting period, $89.7M has been collected for the current fiscal year (FY24-25). Total Measure X expenditures allocated through FY24-25 amount to $507.7M, leaving a remaining revenue requirement of $28.8M to fully fund those commitments.
Current fiscal year revenue is projected at $120.0M, which represents a 1.1% decrease compared to prior year actuals. For FY25-26, the County’s sales tax consultants project revenue to increase by 1.8% to $122.1M. However, this latest projection is over $400,000 (0.3%) less than the $122.5M in revenues and expenditures approved for the FY25-26 Adopted Budget.
At the Board of Supervisor’s Recommended Budget hearings on April 28-29 and budget adoption on May 20, the Board approved a 1.97% cost of living adjustment totaling $2.34M for ongoing Measure X allocations, and allocated $100k from the $1.57M Measure X revenue surplus fund balance, leaving $1,471,362 in one-time Measure X unallocated appropriation in FY25-26. The Board requested a subsequent discussion item on June 10, 2025 to consider its next steps and processes related to this Measure X unallocated balance.
CONSEQUENCE OF NEGATIVE ACTION:
Next steps for unallocated Measure X funds will not be determined.
Attachment: Measure X Community Advisory Board Priority Recommendations - May 12, 2025