Measure X collections lag early budget assumptions; city to propose midyear reduction

City finance staff told the Measure X Citizen Oversight Committee the city has received $27.5 million in Measure X remittances for the first four months of the fiscal year and that a true-up payment process explains recent monthly spikes in remittances.

"As you can see there, we've collected 27,500,000.0 so far and this is for the first 4 months of the fiscal year," staff said while explaining CDTFA's monthly-advance and quarterly reconciliation process that produces periodic true-up payments.

Staff compared the current-year receipts to the prior fiscal year and said Measure X receipts for the first four months were roughly $589,000 (about 2.1%) lower than the same period in 2023'24. Finance staff said the city and consultant updated forecasts and now expect Measure X receipts of approximately $82.8 million, down from the $85.6 million estimate used to set the current budget; staff said they expect to recommend a revenue adjustment of about $2.7 million at the midyear budget update in March.

Finance staff also noted that the city carried forward roughly $5.1 million of prior Measure X budget authority into the current fiscal year to complete multi-year street and traffic-signal projects; staff identified specific carryovers for pavement maintenance and a Spruce Street traffic-signal project.

The committee discussed the forecast change and asked staff to present updated materials at the March midyear meeting so the committee can consider recommendations to the City Council as the budget process advances.