HomeMy WebLinkAboutRES NO 173-2022RESOLUTION NO.
173-2 02 2
A RESOLUTION ADOPTING A PUBLIC SAFETY & VITAL
SERVICES MEASURE "N" FINANCIAL MANAGEMENT
POLICY FOR THE CITY OF BAKERSFIELD
WHEREAS, the City of Bakersfield receives locally controlled one -cent
transactions and use tax revenue as a result of Measure N and Council -approved
Ordinance No. 4958 ("Bakersfield Public Safety/Vital Services Measure
Transactions and Use Tax Ordinance") which became effective on April 1, 2019,
and has no sunset date; and
WHEREAS, the City desires to establish a formal written policy to properly
maintain fiscal stability and document the methods the City will use to
demonstrate prudent financial management over Measure N tax revenue; and
WHEREAS, the City Measure N tax revenues committed to personnel
expenses shall not exceed sixty percent (60%), and ongoing cost allocations shall
not exceed seventy percent (70%) of the proposed annual Measure N budget;
and
WHEREAS, the City Measure N ongoing costs are defined as those costs that
represent a long-term commitment of 20 years, and that would have significant
impacts on core services if those services were reduced, and as a result, would
be the last costs to be removed from the City's budget; and
WHEREAS, the City Measure N tax revenue above the amount needed to
fund the Measure N Reserve, personnel expenses, and ongoing costs, will be
allocated to one-time investments focused on maintaining and enhancing vital
City services in direct alignment with City Council Goals; and
WHEREAS, the City Budget and Finance Committee reviewed the City
Public Safety & Vital Services Measure "N" Financial Management policy at its
September 19, 2022, meeting and recommends Council adoption of the policy.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Bakersfield as
follows:
1. The foregoing recitals are true and correct and incorporated in their
entirety herein by reference.
2. The City of Bakersfield's "Public Safety & Vital Services Measure "N"
Financial Management Policy" attached hereto as Exhibit "A" and incorporated
herein by reference, is hereby adopted. o�eA` ,F,,
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HEREBY CERTIFY that the foregoing Resolution was passed and adopted
by the Council of the City of Bakersfield at a regular meeting thereof held on
OCT 1 9 2022 , by the following vote:
✓ � ✓ ✓ ✓
OYES: COUNCIL MEMBER ARIAS, GONZALES, WEIR, &M44=i- FREEMAN, GRAY, P-ARH
NOES: COUNCIL MEMBER
ABSTAIN: COUNCIL MEMBER
ABSENT: COUNCIL MEMBERS S YY\ 4A Qe-ti' 6t-(I
APPROVED OCT 1 a 9f17.2
By O
KAREN GOH
Mayor
APPROVED AS TO FORM:
VIRGINIA GENNARO
City Attorney
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J SHUA H. RUDNICK
4Deputy City Attorney
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Attachments: Exhibit A
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J LIE DRIMAKIS, MMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Bakersfield
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EXHIBIT A
103
BAKERSFIELD
Public Safety & Vital City Services Measure "N"
Financial Management Policy
POLICY STATEMENT AND PURPOSE
1. PURPOSE
The City's Measure N Financial Management Policy documents the methods the
City will use to demonstrate prudent financial management over Measure N tax
revenue in conjunction with Council -approved Ordinance 4958 ("Bakersfield Public
Safety/Vital Services Measure Transactions and Use Tax Ordinance") and Resolution
009-19 ("Established the Citizens Oversight Committee for the Bakersfield Public
Safety/Vital Services Measure N"). This additional policy:
• Establishes a Measure N Reserve Fund to address unforeseen revenue
fluctuations, unanticipated expenditures, and similar circumstances;
• Establishes a limit for ongoing cost expenditures;
• Reiterates the spending priorities established by ordinance and establishes
that future budget allocations will be prioritized based on City Council
Goals;
• Requires annual financial and compliance audits by the City's external
independent auditors in addition to the City's.
2. BACKGROUND
Voter approval of the City of Bakersfield's Public Safety and Vital City Services
Measure (Measure N) in November 2018 authorized the implementation of locally
controlled one -cent transactions and use tax which became effective April 1, 2019,
and has no sunset date. The objectives of Measure N are "to maintain and enhance
vital city services."
Measure N contains thirteen (13) specific community spending priorities including:
1. Increasing police staffing to improve police response times, reduce crime,
and increase neighborhood police patrols.
2. Improving rapid response to assaults and robberies.
3. Maintaining / improving rapid response to gang violence.
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EXHIBIT A
4. Investigating and proactively preventing property crimes, burglaries, and
vehicle thefts.
5. Keeping public areas safe and clean.
6. Strengthening the capacity of the Special Enforcement Unit.
7. Expanding the School Resource Officer Program.
8. Maintaining a fully staffed and equipped Class II Rated Fire Department.
9. Reducing homelessness through partnerships with service providers to
increase outreach, sheltering, and construction of affordable housing.
10. Addressing the fiscal stability of the City of Bakersfield.
11. Creating jobs through economic development, business retention/attraction,
and workforce development.
12. Enhancing amenities throughout the community to improve the quality of life
and attract visitors.
13. Enhancing neighborhoods through additional code enforcement and
improved park maintenance.
These 13 priorities guide all investments for enhanced City services, programs, and
projects funded by Measure N.
3. POLICY
3.1 Measure N Reserve
The City shall maintain a Measure N Reserve dedicated to mitigating the
financial risk that can occur from the effects of unforeseen revenue fluctuations,
unanticipated expenditures, and similar circumstances. The amount of money
held in this reserve will be a stated percentage of budgeted operating expenses
which is viewed as a reliable indicator of its ongoing needs. This is so that the City
of Bakersfield reserve stays consistent with the size of the budget over time. The
Measure N Reserve Policy will be governed by the same guidelines established in
the General Fund Reserve Policy.
The City's long-range forecasting model will be used to track the estimated
growth of the annual budget and the related contribution requirements to stay
within the established range of reserves.
If the minimum reserve balance is not met during the forecast period, the
Finance Director and/or Budget Officer will develop a plan to bring the reserve
balance to the desired amount. This plan will be offered to the City Council's
Budget and Finance Committee for consideration.
3.2 Ongoing Costs
The intent for limiting Measure N Ongoing Cost allocations is to 1.) ensure that the
City can sustainably fund current obligations into the future and 2.) preserve
Measure N resources to fund strategic, large-scale one-time projects.
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EXHIBIT A
• Measure N revenues committed to personnel expenses shall not exceed
sixty percent (60%) and ongoing costs shall not exceed seventy percent
(70%) of the proposed annual Measure N budget.
• Ongoing Costs are defined as those costs that represent a long-term
commitment (20 years); costs that would have significant impacts on core
services if those services were reduced; costs that would be the last
budget cuts that would be recommended by staff.
• Ongoing Cost examples include personnel costs (salaries and benefits);
contracts for services necessary for personnel to carry out their duties;
contract services in support of core operations (i.e., Brundage Lane
Navigation Center).
• Measure N revenue, above the amount needed to fund the Measure N
Reserve, personnel expenses, and ongoing costs, will be allocated to one-
time investments focused on maintaining and enhancing vital city services
and in direct alignment with City Council Goals.
3.3 Governance and Transparency
Measure N revenue and expenditures should be transparent to the City Council,
Measure N Citizens Oversight Committee, and Bakersfield residents. To achieve
this transparency, Measure N resources will be accounted for and reported
separately to facilitate review by the Council and the Citizens Oversight
Committee. In addition, the Finance Director and/or Budget Officer shall report
to Council and the Citizens Oversight Committee annually during the budget
development process or other open meetings:
• The funded status of Measure N Reserve.
The City's annual financial and compliance audit will include revenues
and expenditures for the Measure N Fund.
Major events that occurred that will likely impact the future funded status
of ongoing Measure N programs.
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