FY 2006-07 Initial Allocation of Measure V

The FY 2006-07 Operating and Capital budgets were the result of years of constant budget review as services and programs were reduced and / or eliminated, as well as intense community participation in the restoration of services resulting from Salinas’ voters’ approval of Measure V in November 2005. The FY 2006-07 budgets, inclusive of the allocation of Measure V, was likely the most scrutinized in the City’s history.

The annual estimated Measure V tax to be collected in FY 2006-07 was $10 million. Additionally, $4.4 million of one-time Measure V funds were available due to the required twelve month restoration process; because of the lag-time in hiring staff the entire $10 million could not be spent in the first year. The initial allocation of Measure V funds was as follows:

Actual Expenditures of Measure V – FY 2006-07 through FY 2011-12

The passage of Measure V by Salinas’ voters has provided funding to continue vital City programs and services to the residence of Salinas. Since its inception through FY 2011-12, Measure V tax collections and investment earnings total $57.5 million. Of this amount, $49 million provided for operating programs and services and $7.6 million has been invested in capital and infrastructure. Additionally, funds have been set-aside for an operating reserve ($400,000) and a reserve for the Chavez Library expansion ($529,300). Over the six year history of Measure V, actual expenditures are as follows:

With the recession and housing downturn that began in FY 2008-09, Measure V tax collections declined 16% or $1.6 million from its high of $10.2 million in FY 2007-08 to its low of $8.6 million in FY 2009-10. Many Measure V programs and services had to be reduced and / or eliminated. During that time, the Mayor and City Council continued to meet its commitment to fund library services. For example, in FY 2006-07 libraries were allocated 36% of available Measure V funds for operations. Libraries actually received and used 41.4% of available Measure V funds for operations over the six year history of Measure V.

Without Measure V, most of these programs and services could not have been restored, including library services. The Salinas Public Library is totally funded by Measure V funds, the only department without General Fund resources.