RECEIVE an update on the results of the Measure X annual audit and compliance reporting for 2019/20.

Approved by 69% of the voters in 2016, Measure X was projected to generate an estimated $20 million annually, for a total of $600 million over thirty years or $20 million per year. The funding source is a retail transactions and use tax of 3/8% per dollar spent. Actual revenues have been significantly higher, with 2018/19 receipts (the second full year of Measure X receipts) totaling $30.5 million and 2019/20 dropping slightly to $28.2 million. The latest estimates are that Measure X revenues are expected to drop to $27.7 million in 2020/21, then rise again to $29.4 million in 2021/22.

The Transportation Agency has fiduciary responsibility for the administration of the voter-approved Transportation Safety and Investment Plan (Measure X) funds. Each jurisdiction entered into a tax sharing agreement with the Transportation Agency in order to receive their share of Measure X Local Streets & Roads revenues. In exchange, these agreements require the jurisdictions to submit audit reports annually to the Transportation Agency detailing the steps taken to comply with the implementing ordinance.

In accordance with the Policies & Project Descriptions for the Transportation Safety & Investment Plan, an Oversight Committee representing a diverse range of community interests was formed. The Measure X Transportation Oversight Committee established a subcommittee to conduct the review of the independent audits of the revenues and expenditure of Measure X funds. The subcommittee was asked to report the results of the audit to the full committee at their next meeting and to prepare the Measure X Annual Report.

The third year of Measure X reporting, for fiscal year 2019/20, was due on December 31, 2020. For this year's independent audits, there has again been a marked improvement in compliance by the jurisdictions from the previous reporting period. All of the jurisdictions submitted their complete reports by the deadline. After an initial review of the reports, Agency staff has reached out to request more information from Sand City regarding not meeting their maintenance of effort requirement, the eligibility of two projects contained in the City of Salinas' Five-Year Capital Improvement Program, and to receive before and after pictures of Measure X funded projects from Seaside.