Measure G committee names audit subcommittee, hears December 31 financial report; public calls for clearer transparency ahead of 2030 renewal

The City of Salinas Measure G Oversight Committee on Jan. 16 appointed a three-person subcommittee to review the city's 2024 independent audit and heard a detailed, unaudited financial report as of Dec. 31, 2024. Public speakers urged the committee to improve outreach and transparency ahead of Measure G's expiration in 2030.

Under consideration item 24-712, the committee nominated and voted to appoint a subcommittee to examine the independent external audit report and return findings and recommendations to the Measure G committee for presentation to the City Council. The committee directed staff to schedule subcommittee meetings so the committee's review can be completed in time for a May 30 report to the council. The motion to appoint the subcommittee was moved, seconded and approved by voice vote.

Acting Assistant Finance Director A. Pedrosa presented the Measure G quarter 2 (as of Dec. 31, 2024) financial report and stressed that the numbers were unaudited. Key figures in the staff presentation and committee discussion included:

- Transactions and use tax: 34% of the year-to-date benchmark (July through October collections); benchmark for four of 12 months is 33%, and November receipts were expected in the coming days. - Operating spending (before transfers): 51% of budget expended as of Dec. 31. - Capital improvement program (CIP): 36 Measure G-funded projects with a total current budget of $23,500,000; citywide CIP was about 55% expended and encumbered (November 30 reporting due to a one-month processing lag). - Cash balance: the Measure G fund began the fiscal year with roughly $29,600,000 and stood at about $25,900,000 at the reporting date. Staff said approximately $21,600,000 of that balance is earmarked for capital projects, leaving a materially smaller available fund balance. - Reserves: the report listed a $2,700,000 trust reserve, a $1,200,000 community center (District 5) reserve, a $3,700,000 economic contingency reserve and a $900,000 infrastructure maintenance reserve.

Selena Andrews, the finance director, and Pedrosa answered committee questions about the level of granularity in the audit and the quarterly reports. Andrews said the external audit provides granular breakout of revenues and expenditures, including Measure G-specific allocations, although audits do not separately list vacancies; they show appropriations and actual expenditures and include budget-versus-actual analyses. Staff said the external audit is expected to be provided when complete and that it will be emailed to committee members as a public document when ready.

Public commenters urged clearer, simpler reporting for voters ahead of a possible 2026 outreach effort to prepare for Measure G's renewal in 2030. Kevin Dayton, government affairs liaison for the Salinas Valley Chamber of Commerce and former president of the Salinas Taxpayers Association, recommended starting outreach and transparency work well before late summer 2026 so voters understand where Measure G money is spent. Yolanda Hayes, representing CreekBridge, said residents "want more transparency" and do not want funds to be moved around without clear explanation.

Committee members pressed staff for specifics about police staffing paid from Measure G. The report and subsequent Q&A included the following staffing details:

- In October staff noted 157 approved police positions, 137 filled and 20 vacant (October snapshot referenced by a committee member). Human Resources Director Marina Horta Gallegos said hiring continued in December, with recent hires of police recruits and at least one lateral hire; HR estimated, as a rough figure, that, accounting for recruits not yet graduated from the academy, vacancies could be approximately six to seven positions once academy graduations are complete. - Measure G currently funds 29 public-safety-related FTEs in the breakdown shown to the committee: 12 sworn positions and 17 non-sworn support positions (the report lists those as Measure G-funded positions).

Committee members asked staff how Measure G allocations change year to year. Finance staff explained that the city estimates anticipated revenues and balances the operating budget among the general fund, Measure E and Measure G. They also said the community budget survey is used to gather resident preferences and that Council ultimately adopts budget allocations during the annual budget process.

The committee approved a three-person audit subcommittee and directed staff to provide the relevant section of the Salinas Municipal Code that defines timelines and parameters for the audit review. Staff said they would schedule meetings between now and the May 30 Council delivery date and email the audit documents to committee members when the external audit is ready.

(Ending) The committee also approved its 2025 meeting calendar on the consent agenda and discussed options for increasing member attendance and public-facing transparency materials. Members emphasized the need to present Measure G spending in simpler formats so voters and residents can see what the tax buys before future renewal discussions.