TO: Honorable Mayor and Members of the City Council
FROM: Paul Young, Finance Director
SUBJECT:
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Creation of Fund 38 Street SMART Citizen Initiative
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RECOMMENDED COUNCIL ACTION:
recommendation
1) Approval of the creation of Fund 38 Street SMART Citizen Initiative.
2) Direct the City to account for all revenues and expenditures of the Street SMARTS Citizen Initiative, Measure S, within Fund 38.
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SUMMARY:
A new fund is required to properly account for the activities and requirements of the Street SMART Citizen Initiative. Due to the new tax of this initiative, setting up a new fund will segregate the resources of the new tax from the other activities of the City.
PREVIOUS COUNCIL ACTION:
During its meeting on January 20, 2026, the City Council approved Resolution 01-2026, calling for placing the Street Safety, Maintenance, and Road Tax Citizen Initiative on the June 2, 2026, election.
On June 2, 2026, the electorate voted to approve the implementation of a local transactions and use tax.
DISCUSSION:
Establishment of a separate fund for the Street SMART Citizen Initiative is required for proper accounting of the legally restricted revenues and is required by section 17.01 of Street Safety, Maintenance, and Road Tax Citizen Initiative (Measure S).
A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.(GASB Cod. Sec. 1300)
Once established, this fund will show up as a separate column in the annual comprehensive financial report, a separate total for the monthly warrant report, and allow separate reporting on all accounting transactions for the fund. The new fund will also allow for proper calculation and appointments of interest to the Street SMART Citizen Initiative.
CITY FISCAL IMPACT:
None
ATTACHMENTS:
1. Street SMART Petition