About Presentations:

Action: Review and approve, or approve with edits, the March 14, 2019 Oversight Committee minutes.

Dedekian, George, Small & Markarian Accountancy Corporation retained by the Authority to perform our fiscal year 2017-2018 audit of finances, has recently completed their analysis and submitted the final report, which is included in the agenda package.  In summary the firm found no material weakness concerning internal control over financial reporting and no instances of noncompliance with laws, regulations, contracts or grant agreements. 

Action: Receive, review and comment.

Dedekian, George, Small and Markarian, Accountancy Corporation was retained by the Authority to perform the audit of finances on all local agencies receiving Measure C Extension revenue as required in the 2006 Measure C Extension Expenditure Plan.  The firm has recently completed their analysis and submitted the final reports for fiscal years ending June 30, 2016 and June 30, 2017, which have been provided to you on a flash drive.  In summary the firm stated that overall, local agencies continue to adhere to the record keeping and reporting requirements, as well as expending Measure C funds in accordance with provisions of the Measure C Transportation Sales Tax Extension. The firm did locate a few matters that are opportunities for strengthening internal controls and operating efficiency.  Staff has reviewed and will implement their recommendations. The agencies included in these reports represent all local jurisdictions in Fresno County with the exception of the City of Coalinga’s FY17 Audit.  Coalinga’s 2017 audit will be provided with the FY 2018 audits next year. Specifically, the audits cover:

Each year Authority staff requests independent estimates of the coming year’s sales tax revenue from the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and the Authority’s Financial Advisor, Montague, DeRose and Associates to establish pass-through allocations and form the basis for the Authority’s budget.  Upon receipt of these independent estimates staff attempts to develop a consensus forecast taking into consideration the opinions of both financial advisors related to the upcoming economic climate.  The results of this process are an estimated 3.75% increase in FY2019-20 to actual FY2018-19 revenues.  Both financial advisors to the Authority concur with this forecast as evidenced by the attached correspondence from each. 

Action: Receive, review and comment.

California Public Utilities Code Section 142257 provides that the 2006 Measure C Extension Expenditure Plan, which was approved prior to and provided the basis for the ballot measure considered by the voters at the November 7, 2006 election, shall specify the amount and the formula by which the retail transactions and use tax shall be allocated to each participating jurisdiction for Local Transportation Purposes determined to be priority projects by local governments to which funds are allocated. The 2006 Measure C Extension Expenditure Plan creates a number of transportation programs to be funded by participating jurisdictions with Measure C funds passed-through from the Authority to the jurisdiction submitting eligible project claims. 

Consistent with adopted policy for administration of the funds, the Authority requested and received the annual estimate of Measure C funds from the Fresno County Auditor-Controller/ Treasurer-Tax Collector.

Based upon the annual estimate of total street miles from the California Department of Transportation, the annual estimate of population from the California Department of Finance, and the Measure C allocation formula as dictated by the 2006 Measure C Extension Expenditure Plan, the attached estimate of available funds and the annual apportionments has been calculated.

Action: Receive, review and comment

The Measure C Original Budget is provided to you as a courtesy and does not fall under the pervue of the Citizen Oversight Committee.

This proposed 2019-20 Original Measure C budget has no estimated sales tax revenue during the fiscal year due to the expiration of the original Measure C sales tax levy in 2007. However, it is estimated to gain $920,000 in interest revenue which will be used to fund the remaining urban and rural projects.  Since there will be no sales tax revenue from the original Measure, the administration expenses related to the original Measure will be funded with administrative reserves which are on deposit with the Auditor-Controller/Treasurer-Tax Collector.  This reserve accumulated over the 20 years of the original Measure C to fund the transition to an extension of the tax measure, or to finance Authority close-out costs if the Measure were to have expired. Use of these funds to cover the administrative costs of on-going original Measure C projects is consistent with the intended use of these accumulated funds.  The proposed method of financing the administrative budget has been reviewed and accepted by Authority Legal Counsel and the Auditor-Controller/Treasurer-Tax Collector’s office.  All of the expenditures in this 2019-20 Original Measure C budget are needed to fund services and supplies required to support delivery of the original Measure’s remaining projects. 

Action: Receive, review and comment

This proposed 2019-20 Measure C Extension budget includes the estimated revenue to be received during the 2019-20 fiscal year resulting from the extension of the original Measure C sales tax levy.  The total estimated tax revenue is $82,230,980.  This revenue estimate reflects a conservative continuation of a recovery from the weak economy that impacted tax revenue over the past 8 years in that it represents a 3.75% increase from the 2018-19 actual revenues.

FCTA Original Measure and the Extension to reflect actual service to each.  

Action: Receive, review and comment

The RTMF revenue projection is the result of a collaborative effort between the Fresno County Auditor-Controller/Treasurer-Tax Collector’s office and RTMF Agency staff, which took into consideration projected development activity in Fresno County during the 2019-20 fiscal year.  The fee income identified in this budget is the result of applying the current RTMF fee schedule to the development activity estimated to take place during the upcoming fiscal year.

There are no proposed administrative salaries, benefits, or support costs proposed in this budget because the fee is calculated and collected by the RTMF Agency.  Costs associated with RTMF Administration are also covered by a separate fee imposed and collected by the RTMF Agency.

Fresno County has been fortunate to receive unanticipated State and federal grants for local transportation projects.  Although these grants allowed for early delivery of projects, they required local matching funds, some of which were planned to be funded through the RTMF fee revenue. However, due to the recession, sufficient RTMF funds had not yet been collected.  Rather than forgo the grant funding, COG and the Authority chose to deliver those projects using money loaned to the RTMF fund from the original and extension Measure C funds.  This budget reflects principal and interest payments on prior year loans, as well as a new loan to cover an anticipated shortfall in the RTMF funding necessary to meet 2019-20 project expenditures.

Action: Receive, review and comment

A.  Upcoming 2019 COC tentative meeting dates:

• August 8, 2019
• September 12, 2019
• October 10, 2019
• November 14, 2019

B.  Items for next agenda

C.  Upcoming Meetings of other related Boards/Committee

• COG Standing Committee meetings
• FCTA Board Meetings