Measure K oversight committee accepts first-quarter financial report after finance director explains sales-tax accruals

The Measure K Oversight Committee voted Oct. 27 to receive and accept the first-quarter FY2025–26 revenue, expenditure and fund balance report as of Sept. 30, 2025, following a detailed explanation of sales-tax accruals from the city's finance director.

Vice Chair Lindstrom questioned figures on the trial-balance report, noting a beginning receivable balance of $333,249 and subsequent debits and credits that appeared to change the reported totals. The finance director said sales-tax allocations lag actual collections by two months and that the $110,049.03 shown on the report represents the July allocation received in July and August. “Sales tax is two months behind,” the finance director said. “As of 06/30/2025, we only received July’s allocation, which is $110,049.03.”

The finance director and a staff member explained that the earlier $333,249 reflected May and June receivables; those receivables were reversed and replaced by the updated accrual of $443,298.15 when cash was received and recorded. The staff summary stated the two elements — the May/June receivable and the July allocation — together produced the updated debit balance of $443,298.15.

After the finance director’s explanation and a final opportunity for clarifying questions, the committee voted to accept the report.

The committee’s acceptance was procedural; the finance director and staff indicated they would provide any additional clarifications requested by committee members via follow-up communications.

Next steps: staff will return in the next quarter with updated expenditures and any additional details on the report.