Measure E committee reviews Q3 unaudited financial report, approves minutes

SALINAS, Calif. — The Measure E Oversight Committee on April 17 reviewed the Measure E fiscal year 2024–25 third-quarter financial report and discussed recent capital project appropriations and reserve changes; the committee also approved the Feb. 6, 2025 minutes.

A. Pedroza, acting assistant finance director, presented the quarterly summary, noting the figures were unaudited. "Please note the numbers are unaudited," Pedroza said, and directed the committee to the published hard-copy reports for line-item detail. Pedroza reported that Measure E revenues for the period covering July through January show roughly 59% of transactional sales-tax revenue received and 61% overall, ahead of the benchmark of 58% for seven months of the fiscal year. He said investment earnings are trending significantly above budget and that staff has adjusted revenue projections for the FY 2025–26 budget process.

Selena Andrews, finance director, clarified the audit timeline in response to a committee question about the unaudited figures: "The reason why they're unaudited is because we haven't closed out the year. At year end, June 30, we start our year end process and eventually bring in an external auditor to audit all of our financials, and Measure E will be included in that citywide audit," Andrews said.

Pedroza summarized expenditures and transfers: citywide Measure E spending is at 68% of the budget before transfers through March 31. Transfers to internal service funds occur twice yearly (December and June) and are currently 50% complete; transfers that fund debt service (including El Gabilan Library) also align with the debt payment schedule. The capital improvement program (CIP) line shows 10 Measure E–funded projects with a total budget of $9,900,000, with limited spending to date because approximately $8,900,000 in appropriations were adopted only in the past several months. Pedroza also reported reserve balances: the 115 trust reserve at $1,300,000; the economic contingency reserve at $1,800,000; and the infrastructure maintenance reserve at $260,000 (reduced by $100,000 from $360,000 following an offsetting appropriation to CIP 9060 for playground improvements). He said the District 5 community center reserve was zeroed out after a $6,900,000 appropriation to CIP 9342 (District 5 recreation center) per March 2025 City Council action.

Committee members asked clarifying questions. One member confirmed that the CIP increases reflected recent appropriations and that the playground and District 5 recreation center appropriations were Council actions in February and March 2025. Another member asked whether Measure E undergoes a formal audit; Andrews confirmed it will be included in the citywide external audit after fiscal-year close.

During member comments, Chair Mora said he attended a workshop by the Institute for Local Government and urged public education about how Measure E funds are used. A committee member asked staff to update the Measure E landing page to include explanatory language and graphics from the city's budget book so the public can better see how funds are allocated. The same member suggested moving from quarterly to monthly committee meetings to increase public education and engagement.

Under consent, the committee voted to approve the minutes of the Feb. 6, 2025 meeting. Committee member Hobby moved to approve; Committee member Agamal seconded. The roll call vote recorded Agamal: aye; Hobby: aye; Chair Mora: aye. The motion passed.

The presentation concluded with staff available for questions. The committee adjourned at 4:43 p.m.