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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Measure X Citizens Oversight Committee | | From: | Michael Zeller, Director of Programming & Project Delivery | | Meeting Date: | February 15, 2022 | | Subject: | Measure X FY 2020/21 Annual Audits |
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| | | | | | | | | RECOMMENDED ACTION: | | RECEIVE an update on the results of the Measure X annual audit and compliance reporting for 2020/21. |
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| | | | | | | | | SUMMARY: | | The purpose of the Measure X annual audit is to confirm that the funding recipients -- TAMC, the County of Monterey and the twelve incorporated cities -- have complied with the voter-approved requirements specified in Ordinance 2016-01 for the Transportation Safety and Investment Plan. One of the responsibilities of the Measure X Transportation Oversight Committee is to review the independent audits of the jurisdictions, and prepare and present an annual report regarding the administration of the program. A subcommittee of the Oversight Committee reviewed the reports and staff will provide information on the receipt and review of annual audit compliance data. |
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| | | | | | | | | FINANCIAL IMPACT: | | Approved by 67.71% 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. 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. |
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| | | | | | | | | DISCUSSION: | 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 fourth year of Measure X reporting, for fiscal year 2020/21, was due on December 31, 2021. 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 with the exception of Greenfield. After an initial review of the reports, Agency staff has reached out to request more information from Carmel and Sand City regarding not meeting their maintenance of effort requirement.
The reports received from the jurisdictions can be found in the web attachment link at the bottom of this staff report and a summary of the compliance review is included in the table below:
| Monterey County |
$8,149,671 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Carmel |
$213,305
|
Yes |
Yes |
NO |
Yes |
Yes |
Yes |
| Del Rey Oaks |
$81,764 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Gonzales |
$279,520 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Greenfield |
$550,328 |
NO |
NO |
Yes |
NO |
Yes |
NO |
| King City |
$460,858 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Marina |
$847,410 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Monterey |
$1,093,219 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Pacific Grove |
$657,027 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Salinas |
$4,865,844 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Sand City |
$32,375 |
Yes |
Yes |
NO |
Yes |
Yes |
Yes |
| Seaside |
$1,084,029 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
| Soledad |
$727,433 |
Yes |
Yes |
Yes |
Yes |
Yes |
Yes |
The Transportation Agency is responsible for the implementation of the regional component of Measure X and is in the process of completing the Agency's annual audit. Agency staff will present the staff's review of the 2020/21 audit reports from the cities and county and will provide an update on the Agency's audit of Measure X regional funds. |
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