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HomeMy WebLinkAboutCORRESPONDANCE - 19DSalas, Diana From: Tim Johnson <tjohnson@jlkrllp.com> Sent: Tuesday, January 21, 2020 12:39 PM To: eComment Cc: Solorio, Jose; Iglesias, Cecilia; Villegas, Juan; Sarmiento, Vicente; Bacerra, Phil; Pulido, Miguel; Penaloza, David; Ridge, Kristine; Flores, Rosa; Downs, Kathryn Subject: Agenda Item 19D Mayor, Council, Executive Director Downs, and City Manager Ridge ... On tonight's agenda item 19D, you will be receiving the 2018/2019 annual financial reports and the Measure X agreed upon procedures report. I am a member of the citizen's oversight committee although I am speaking on behalf of myself, although my thoughts are definitely shaped by my involvement with the committee. I urge you to consider that the Measure X Citizen's Oversight Committee (Committee) only provides council a report one time per year and was notable to provide any feedback into the 19/20 budget. For example, you are about to receive the Measure X report but you are yet to hear from the Committee even a single time. At the last Committee meeting it was unanimously agreed that the Committee would provide to Council at tonight's meeting a quick update. However, that request to provide information to you was not allowed to happen. We were advised that because our request had no actionable item associated with it that, that it would have greater impact at a later date. I understand the City Manager's comments although I do not agree with it because I believe that the more information that your group has, the better you will be able to provide direction for our city and its staff in every council meeting as you consider various financial requests. Additionally, especially for a citizen's oversight committee it is important to be responsive and provide information to the citizens and not just the council. Specifically in terms of what you are receiving tonight, I would ask you to consider whether the Measure X Agreed - Upon -Procedures Report is what you were expecting when the ballot language for Measure X provided for an audit of Measure X funds. As a reminder, the ballot language required an "annual audit"- do you believe that this agreed upon procedure report provides you the information you would expect in an annual audit? Sec 35-215 of Ordinance No NS- 2952 indicates that an annual audit of not only the revenue generated but also the expenditures made. Additionally, the city is to provide an Annual Expenditure Disclosure- specifically, Sec 35-216 indicates "The City of Santa Ana will publicly disclose on an annual basis a list of expenditures made with sales and use tax monies for the preceding fiscal year." Does the information provide you and the public the necessary information to know where Measure X funds were expended? At a minimum, I believe that you should pull this item from the consent agenda and ask questions on this item. For example: • How is it that the Measure X Expenditures of $15.84M exceed the Measure X Revenue of $15.18M? • How is the city determining what items are expenditures are Measure X related? • What did the $10.2M of planned use of General Fund balance get used on- specifically, where was it expended? • What would have happened if Measure X revenue would never have come into play in terms of the 18/19 overall financial results? • What is the planned use for 2019/2020 Measure X revenue (remember it is all general fund)? • Why were the labor savings not implemented as previously directed in the 18/19 budget especially since Measure X was not even passed until November 2019? • How much of the Measure X expenditures were permanent versus temporary in nature? • Where is the cost of the vehicle rebate program in terms of use of Measure X funds? How many car purchases benefited from the rebate program? • Can you align the $15.81M of Meas X expenditures with the ballot language items (911, police, fire, homelessness, fixing streets, parks, youth/senior services)? How about the 19/20 budget ... can you provide alignment with the projected revenue with the ballot language? Thank you for your time in thoughtfully considering this item tonight and your continued service to our community. Best, Tim Johnson Rosenberger i:ricfi 4l' Mt9tm4nit Proudly part of they Wglobal famlly In Tim Johnson, CPA Partner Ijb (949)860-9892 yj (714) 743-1065 tjohnson@jlkrllp.com 2601 Main Street, Suite 580, Irvine, CA 92614 This message (including any attachments) contains confidential information intended for a specific individual and purpose, and is protected by law. If you are not the intended recipient, you should delete this message. Any disclosure, copying, or distribution of this message.. or the taking of any action based on It, is strictly prohibited. JLK Rosenberger is a California Limited Liability Partnership and a member firm of PKF International Limited, a family of legally independent member firms and does not accept any responsibility or liability for the actions or Inactions on the pan of any other individual member or correspondent firm or firms.