FV Newsletter

Feb 19

[ARCHIVED] Measure HH Committee's Report

The original item was published from February 19, 2020 11:47 AM to February 20, 2020 4:15 PM

On November 8, 2016 the residents of Fountain Valley approved Measure HH, a one-percent transactions and use (i.e. “sales”) tax. The use of Measure HH is guided by the City’s Responsible Spending Pledge and the 20-Year Financial Plan, where the goal is to pay off all debt and to have a balanced operating budget in 2037 when Measure HH sunsets. Accountability and transparency is built into the process. For example, the Measure HH – Essential City Services Oversight Advisory Committee (“Oversight Committee”) generally meets four (4) times a year to ensure that Measure HH funds are spent as promised. In addition, Measure HH revenues and expenses are audited annually by an independent certified public accounting firm.

On January 23, 2020, the Oversight Committee reviewed the auditor’s report for 2018-19, which reflected approximately $13.3 million of revenue from Measure HH. $1.2 million was used, in accordance with the Responsible Spending Pledge and 20-Year Financial Plan, to fund essential city services such as public safety and senior and youth programs. $680,451 was used to fund capital maintenance projects including residential road rehabilitation and park improvements to Harper Park and Allan Park. An additional payment of $2 million was made to CalPERS consistent with the City’s 20-Year Financial Plan where the goal is to pay-off all outstanding debt and unfunded liabilities by 2037 when Measure HH sunsets. The balance of Measure HH revenue in the amount of $9.4 million (71% of Measure HH revenue) was set-aside to fully rebuild and maintain reserves consistent with the City’s 20-Year Financial Plan and the Fund Balance Reserve Policy.

The Oversight Committee concluded that the audited revenue and expenses for 2018-19 are consistent with the intent of the Measure HH ballot measure and the Responsible Spending Pledge. Reports from the Oversight Committee and the independent auditors can be found online at https://www.fountainvalley.org/1156/Information-on-Measure-HH-Essential-City.