Kirsten LeCasse, the city’s administrative services director, told the Measure O Citizens Oversight Committee on Dec. 1 that Measure O revenues for fiscal year 2025 exceeded expectations by about $620,000, driven largely by interest earnings.

LeCasse said transaction and use tax exceeded budget by roughly $150,000 and the fund earned about $480,000 in interest, producing total Measure O revenue of $13,040,000. She told the committee that some industry categories rose (autos +4%, restaurants and hotels +2%) while business and industry fell 11% due to nonrecurring payments.

"Measure O revenues came in higher than anticipated by approximately 620,000 at the end of fiscal year 25, most of which is attributed to interest earnings," LeCasse said.

On expenditures, LeCasse reported budgeted spending of $5,350,000 with actual expenditures of $4,860,000, yielding roughly $480,000 in savings primarily tied to multiyear initiatives and a partial vacancy in arts and recreation. She said most Measure O-funded positions are now filled and staff adjusted vacancy assumptions for FY26–27.

LeCasse also summarized two completed capital projects funded by Measure O: ball field lighting at Tice Valley Park (about $750,000) and turf fields at Heather Farm Park (about $1.2 million). A ribbon-cutting for the turf fields was scheduled for 1 p.m. the same day.

Heather Farm Aquatic and Community Center project and bond financing

LeCasse outlined recent council and joint powers financing authority actions taken Nov. 18, including awarding the Phase 2 construction contract to Lathrop Construction and adopting resolutions approving lease revenue bonds and appropriating Measure O funds for the project. She said the initial engineer’s estimate was $58 million but the lowest responsive bid was $51,580,000.

LeCasse presented a total project estimate of $75.8 million, with Phase 2 estimated at $56.7 million (including contract and contingency). Funding shown includes $1.9 million from the general fund, $7 million from the facilities reserve, an $11.9 million Measure O set-aside and $55 million in bond financing; net bond proceeds were estimated at $55 million.

She reported the city had received a AAA general credit rating and an AA+ rating for the lease revenue bonds, and said a competitve bond sale was scheduled for Dec. 3 with financing expected to close Dec. 17. "Currently, the rate is estimated at about 2.59% with net proceeds of 55,000,000 for the project and an estimated annual debt service at about 7,700,000," LeCasse said.

Audit, fund balance and committee action

LeCasse reviewed the Measure O beginning fund balance (about $12,010,000), net FY25 results (raising the fund to about $20,180,000), reserve set-asides and carried-forward obligations that left an estimated available year-end fund balance of about $2,220,000. She said Mayes and Associates performed the independent FY25 audit and "no exceptions were noted."

LeCasse asked the committee to review the revenues and expenditures, comment on whether expenditures align with the Measure O spending plan, and refer the report to City Council with a recommendation the council accept the audited report.

Questions from committee members and staff responses

Committee members asked whether current Measure O funding would sustain downtown police patrols added in prior years. Jamie Knox, chief of police, replied, "With the funds we do have, we will be able to continue those patrols." Committee members also confirmed that additional library hours were added at Walnut Creek branches and discussed economic development spending and multi-year reporting needs; staff agreed to provide a cumulative, multi-year summary in a future meeting.

On homeless services, Stephanie Ryan, the city’s housing manager, said Measure O has funded a full-time core outreach team for several years and staff anticipate continuing the service; she noted state funding to offset program costs has declined and other housing budget sources were used to cover those costs.

The audit cover letter wording was flagged as generic; staff agreed to work with auditors to update the cover letter to reference the City of Walnut Creek explicitly.

Votes at a glance

- Committee organization: Motion to elevate Jonathan to chair and Brian to vice chair was moved and seconded and passed on a roll-call vote (unanimous).
- Approval of minutes: Motion to approve prior meeting minutes was moved by Jeff Fide, seconded, and approved by roll call (unanimous).

What’s next

Staff will provide additional information on the committee’s potential bond oversight responsibilities under Ordinance 2228 at the next meeting, deliver multi-year cumulative reporting on Measure O spending, and circulate an updated audit cover letter after coordinating with the auditors.