Measure B oversight committee flags audit wording, project funding and contingency transparency

The Measure B Resident Oversight Committee met Jan. 26 to review midyear Measure B financials, discuss the status of several capital projects and press staff for clearer audit disclosures and tighter contingency oversight.

Committee members noted that Measure B receipts lag by roughly two months, which can make midyear totals misleading. An unidentified staff speaker said the midyear report showed "about 3.9" for the comparable figure from last year and explained that November and December revenues often arrive after the midyear cut-off, so year-to-date numbers may undercount late receipts.

The committee was informed that the fiscal 2025 audit has been completed and work on fiscal 2026 is underway. One member said the external-auditor language in this year’s consolidated report was harder to find and appeared to be worded differently than in prior years; the transcript records a member saying the report seemed to have shifted from "GAAP" language to what was transcribed as "GASP," creating confusion. Committee members asked staff to request a clearer, more prominent auditor statement about Measure B fund treatment in future audit reports so the public can locate that information without searching the consolidated packet.

Members also pressed for clearer visibility on project funding. The committee discussed a nature-park project that, according to the transcript, originally carried an $8,000,000 commitment with a $1,000,000 seed allocation; staff said design work had not yet begun and that total project costs are expected to exceed the original figure. Staff reported pursuing grants that could change the funding picture but said no city council action had amended the committed amount.

Concerns extended to the planned aquatic center, which speakers said currently has a $55,000,000 figure "locked in." Committee members asked whether projected operating and maintenance costs — and any cost increases — are covered by the previously committed $40,000,000 O&M allocation or would require additional general-fund support. Staff indicated the committee would have a better sense of total costs when aquatic design returns, which was expected in March.

A central theme of the discussion was contingency use. One member said contingencies should be "associated with specific risk" and warned against giving project teams broad unmonitored contingency pools that later become hard to track. The committee said that if Measure B funds are tapped to cover cost increases, staff should provide explanations indicating whether extra spending was due to material-cost escalations, underestimates in the original scope, or other causes.

Procedurally, the transcript records a motion being accepted during the meeting and a separate motion to adjourn, both of which passed on voice vote; the transcript does not capture the full text of the first motion or the names of the motion mover and seconder. Committee staff said the annual report will be brought back in April once committee membership is finalized; the transcript notes three open seats or term expirations to resolve before that meeting.

The committee closed after approving adjournment.