Agenda Item #51
Independent Citizens Oversight Committee - Sales Surtax Policy Recommendations
Project Management staff is executing the sales surtax program and is reporting to the Independent Citizens Oversight Committee (ICOC) every two months. The report includes a summary of revenue to date as well as an itemization of failing infrastructure that requires action out of the priority sequence or utilizing contingency funds. Since sales surtax revenue is exceeding estimates and unplanned critical needs are occurring, Project Management staff presented draft policy direction for the ICOC's consideration at their October 21, 2015 meeting.
In anticipation of additional policy needs that may occur in the future, staff drafted an overarching Sales Surtax Policy 6350 that broadly states the sales surtax program will be administered in accordance with the authorizing Resolution and the ballot language with oversight by the ICOC.
Policy 6350.01 is the draft policy regarding sales surtax contingency allocation and use. As of October 2015, the revenue allocated to contingency is $1,273,200. The policy recommendation is to allocate the contingency among facility renewal (83.46%), district security (3.05%) and educational technology (13.49%) which is in proportion to their allocation of the sales surtax revenue excluding contingency (see Attachment 1 for calculation). The recommended policy further states that sales surtax contingency may be for any eligible sales surtax expenditure (those in identified categories meeting condition code 1 or 2 thresholds, including failure). Use of contingency funds will be managed by the respective departments and reported to the ICOC as a contingency expenditure.
Policy 6350.02 is the draft policy regarding sales surtax revenue in excess of estimated revenue. As of October 2015 the sales surtax revenue exceeding the estimated revenue is $4,616,872. The recommended policy is that all sales surtax revenue be allocated in accordance with the percentages on which the program was built: facility renewal (79.28%), educational technology (12.81%), district security (2.90%) and contingency (5.01%). This will allow the program to move forward more quickly. Additional policy will be needed if the total revenue reaches $198 million prior to the end of the six year program.
The ICOC unanimously recommended all policies for consideration by the School Board. These policies provide a consistent framework for allocation and use.
Approve Policy 6350 - Sales Surtax, 6350.01 - Allocation and Use of Sales Surtax Contingency and 6350.02 - Allocation and Use of Sales Surtax Revenue in Excess of Estimate.
Information - 11/17/2015
Authority for Action
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Agenda Item will not Require the Expenditure of Funds
Susan Hann, P.E., AICP, Director of Planning and Project Management
Attachment: sales surtax policies attachment.pdf