A. Separate Fund Accounting. All revenue generated by the tax shall be accounted in the general fund as a separate line item entitled “Local Sales and Use Tax – Measure “P” Revenues.” These revenues will then be transferred to a general fund subfund entitled “Measure “P” fund.” Any and all expenditures of Measure “P” fund monies will be tracked and accounted for by City Finance Department staff in accordance with generally accepted accounting principles (GAAP), and presented annually in a report (the “Finance Department report”) to the Citizens’ Oversight Committee (“COC”) created pursuant to subsection (D) of this section.

B. Initial and Annual Submittal of Measure “P” Spending Plan. If Measure “P” is approved by the voters, within 30 days after such approval the City Manager shall bring forth for City Council consideration and action, in its discretion, proposed budget amendments and financing options to accelerate large-scale projects for fiscal year 2016-17 that would fund and implement the City Council intended infrastructure, facilities and equipment expenditure plan that was approved by the City Council concurrent with this chapter, using Measure “P” fund revenues. For each subsequent year, prior to City Council consideration of the City’s annual budget, City staff will prepare and present to the COC for its review a spending plan for Measure “P” fund revenues. Such plan (the “Measure “P” spending plan”) shall be consistent with the City Council intended infrastructure, facilities and equipment expenditure plan, include specific proposals for near term expenditures, a plan for expenditures throughout the 10-year term of the tax, and finance options for larger-scale projects that may require the pledge of Measure “P” revenues. After review by the COC, the Measure “P” spending plan shall be incorporated into the City Manager’s proposed budget, and then presented to the City Council for its consideration and action, in its discretion, as part of the City’s annual budget process. The City Council must consider for approval the expenditure of projected Measure “P” fund revenues as a separate line item category in each year’s budget.

C. Annual, Independent Audit. Beginning with the fiscal year that ends June 30, 2017, the City’s independent auditors shall, as part of their annual audit of the City’s financial statements, review the collection and expenditure of revenue from the Measure “P” tax. Along with the City’s Finance Department report provided in subsection (A) of this section, the auditors’ review of such revenues (“auditor report”) shall be presented each year to the COC at a public meeting for its review for compliance with the terms of this chapter and to disclose whether or not it has been expended in accordance with the City Council approved Measure “P” spending plan. The results of the COC review shall then be transmitted through the City Manager’s Office to the City Council for its consideration at a public meeting.

D. Citizens’ Oversight Committee. Prior to the operative date, the City shall create and convene a Citizens’ Oversight Committee (“COC”). The function of the COC shall be to review and report on City compliance with the terms of this chapter and the spending guidelines contained in the City Council intended infrastructure, facilities and equipment expenditure plan and each Measure “P” spending plan presented and approved by the City Council thereafter. Specific COC responsibilities shall include: (1) public review and comment on each year’s Finance Department report, Measure “P” spending plan and auditor report (as provided in subsections (A) through (C) of this section); (2) preparation of an annual report regarding same for presentation to the City Council at a public meeting; and (3) working with City staff to identify and apply “best practices” for tracking and reporting on Measure “P” revenues and expenditures relative to other City revenues and expenditures. Current elected City officials and employees are disqualified from membership. COC members shall be appointed by the City Council in accordance with existing City policies and will include individuals with a range of expertise, including accounting, finance and engineering. The COC shall operate in accordance with the Ralph M. Brown Act, which includes requirements that meetings be noticed in advance and held in public. The COC shall be created by City Council ordinance consistent with the terms of this section adopted no later than December 31, 2016. (Ord. 3371 § 1, 2016).