Measure U Oversight Committee

Measure U Oversight Committee — March 27, 2024

This was a regular meeting of the Measure U Oversight Committee, which monitors how the City of Petaluma spends revenue from its local sales tax measure. Four of five members were present; Tyler Sturm was excused. The session focused on mid-year budget performance, an upcoming fiscal year budget preview, and approval of the committee's annual report.

Item 1: FY 2023–24 Mid-Year Update and FY 2024–25 Preliminary Budget

Finance Director Jessie Gooch presented an overview of how Measure U funds are tracking at the mid-point of the current fiscal year and what the preliminary spending picture looks like for FY 2024–25.

Committee Member Rosemary Hart raised two substantive questions. First, she asked that language be added to the report clarifying how fund balances carry over from FY 2023–24 to FY 2024–25, so the financial picture is easier to follow. Staff agreed to make that clarification. Second, she asked whether any Capital Improvement Program (CIP) projects funded through Measure U could provide relief to the General Fund on salary costs — a question that drew discussion among Hart, Gooch, and Assistant City Manager (ACM) Cochran, though the minutes do not fully capture the substance of that exchange.

A significant discussion then developed around the committee's communication with City Council. Chair Leland Fishman expressed that the committee has a responsibility to actively signal to Council where Measure U money is going — and that a formal letter signed by the committee chairperson would carry more weight than staff reports alone. Staff Liaison Gooch agreed in principle and offered to help draft such a letter.

Committee Member Kerry Davison noted that it had been previously requested that the report include more detail about funded positions and what outcomes are being achieved with Measure U dollars. She also emphasized that she believed it was the committee's role — not staff's — to communicate directly with Council.

The group worked through how to accomplish this within Brown Act constraints, which limit committee members from deliberating outside of public meetings. ACM Cochran suggested forming an ad hoc subcommittee of no more than two members as a legally sound option. Committee Members Hart and Davison volunteered. There was brief debate over whether the resulting letter should accompany the FY 2023–24 annual report or the upcoming FY 2024–25 report; Hart preferred it accompany the latter, while Hamilton suggested the former.

Separately, Committee Member Davison asked how much Measure U money has gone toward road improvements. Gooch explained that Measure U funds are being used to secure $20 million in bonds — including debt service — to be paid off over 30 years. Interim Public Works Director Petnic, who was present in the audience, directed the committee to CIP budget summaries in the adopted budget where funding sources are clearly laid out.

Vote (Ad Hoc Subcommittee Formation): Committee Member Hamilton moved, Committee Member Davison seconded. Passed 4–0, all ayes. Hart and Davison will form the ad hoc subcommittee to work with staff and draft a letter to City Council. The letter will need to be ready ahead of the first reading of the FY 2024–25 budget on May 6, with a budget workshop to follow on May 20.

Item 2: Approval of the Biannual Report for Fiscal Year Ended June 30, 2023

The committee considered its formal biannual report covering Measure U expenditures for the fiscal year ended June 30, 2023. Two written public comments on this item had been submitted online by Susan Kirks prior to the meeting; Chair Fishman confirmed all members had reviewed them. During general public comment, Ben Peters also addressed the committee, though the minutes do not detail the substance of his remarks.

The minutes do not record a separate vote specifically approving or rejecting the biannual report itself — the item is listed but no formal vote outcome is documented in the minutes for this item.

Approval of Minutes — January 31, 2024

Vote: Committee Member Hamilton moved, Committee Member Hart seconded. The minutes of the January 31, 2024 meeting were approved. Vote tally not explicitly recorded but no dissent noted.

Key Takeaways