Measure G oversight committee elects chair, forms audit subcommittee and reviews midyear finances

The Measure G Oversight Committee of the City of Salinas elected Ginger Pierce as chair and Amy Salmina as vice chair, appointed a three-member subcommittee to review the independent 2024 external audit and reviewed an unaudited fiscal report for the quarter ending Dec. 31, 2024.

The committee voted by voice to elect Pierce as chair and Salmina as vice chair. The committee then appointed a three-person subcommittee to review the external auditor's report and return findings and recommendations to the full committee and the City Council by May 30, 2025. Committee members said the subcommittee will work with city staff and will be provided the audit materials when they are ready.

Why it matters: Measure G is a dedicated local sales tax that currently provides a substantial portion of the city's operating and capital budgets. The oversight committee's role is to review expenditures, ensure money is being spent as described to voters and report to the council; the audit subcommittee is intended to provide the committee and the public an independent, technical review of expenditure and revenue activity.

Audit subcommittee and timeline The committee appointed Amy Salmina, Peter Zalai and Chair Ginger Pierce to the audit subcommittee; the motion carried on voice vote. Committee members and staff said the subcommittee is expected to review the external auditor's work papers and the auditor's breakout of Measure E and Measure G expenditures, and then present a written or oral report to the full committee before the council presentation. City staff said the audit is still in process and will be emailed to subcommittee members when ready.

Acting Assistant Finance Director A. Pedrosa described the subcommittee's role: the external auditor performs a detailed review of the city's revenues and expenditures, including line-item breakout for Measure G; the subcommittee will have access to those details to confirm how Measure G funds were spent.

Midyear financial report (unaudited) Acting Assistant Finance Director A. Pedrosa presented the Measure G fiscal year 2024-25 second-quarter report as of Dec. 31, 2024, and noted the figures are unaudited. Key figures presented by staff included: - Transactions-and-use-tax receipts: 34% received for the July'October period; the 4-month benchmark is 33%. - Overall spending before transfers: 51% of the annual Measure G budget expended through Dec. 31. - Capital improvement program (CIP): 36 projects carry Measure G funding, with a total appropriated amount of $23,500,000; staff said CIP is 55% expended and encumbered citywide (one-month reporting lag noted). - Cash balance: staff said the fund began the year with $29,600,000 in cash and is currently at $25,900,000; staff also said approximately $21,600,000 is earmarked for capital projects and about $8,500,000 is set aside for reserves (staff emphasized numbers are unaudited). - Reserves called out in the report: $2,700,000 (trust reserve), $1,200,000 (community center/district 5 reserve), $3,700,000 (economic contingency reserve) and $900,000 (infrastructure maintenance reserve).

Committee members asked staff to clarify reporting categories and where specific projects appear in the packet. Pedrosa guided members to packet pages listing CIP project codes (for example, the Chinatown Navigation Center sprung shelter appears under Community Development, CIP 9125) and encouraged the subcommittee to request a walk-through of the audit materials.

Police staffing and Measure G allocations Committee members asked several questions about Measure G support for public safety. Staff and Human Resources Director Marina Horta Gallegos described recent hires and said police recruit classes and lateral hires will reduce vacancies as recruits graduate the academy. Horta Gallegos estimated, based on recruits in training, that vacancies would be reduced to roughly six to seven officer vacancies once recent recruits graduate; she said she would provide more precise vacancy counts to the committee.

The finance packet shows 29 positions funded by Measure G in the police department: 12 sworn positions and 17 non-sworn (civilian) support positions, as presented to the committee. Staff explained that changes in where some expenses are charged—for example communications costs shared with the county—can alter year-to-year line-item totals for Measure G-funded amounts.

Public comments and transparency Public commenters urged the committee to build public-facing materials and begin outreach well before the Measure G sales tax expires in 2030. Kevin Dayton, government affairs liaison for the Salinas Valley Chamber of Commerce and former president of the Salinas Taxpayers Association, told the committee that the city should prepare clear, accessible reports and a website explaining where Measure G money goes so voters have information ahead of any renewal campaign. Another public speaker, Yolanda Hayes of CreekBridge, said residents want more transparency and clear reporting on how Measure G funds are directed.

Discussion, directions and next steps Committee members and staff agreed to form the audit subcommittee, to receive and review the external audit when finished, and to return recommendations or concerns to the full committee prior to the council report due May 30. Staff said they will email the audit materials to the subcommittee when available and will help schedule meetings between now and the reporting date. Committee members also discussed meeting frequency and quorum issues and urged improved scheduling and outreach so oversight meetings occur regularly.

The committee moved the consent agenda and discussed future agenda items including improving public reporting and visual summaries of Measure G allocations. The committee adjourned after setting the subcommittee and outlining the timeline for the audit review.