Measure U

In November 2018, Placentia voters overwhelmingly approved Measure U, a 1% sales tax increase to help fund the cost of much needed infrastructure repairs and maintenance as well as public safety and other critical services. Measure U sales tax increase began collection on April 1, 2019. For the first time in many years, the City will be able to fund much needed road and infrastructure repairs. The City Council has allocated a total of $3.2 million in Measure U, SB 1 Gas Tax and Measure M proceeds to continue funding street repairs and maintenance for Fiscal Year 2019-2020. Projects over the next year include repaving more than 800,000 square feet of pavement and slurry sealing more than 2.6 million square feet of residential streets and sidewalk/curb improvements. 

Measure U will allow the City to fund services at levels consistent with the community’s priorities and the public’s desired quality of life and would prevent the need for further significant cuts to vital City services and programs. To ensure the Measure U funds are spent accordingly, the Placentia City Council voted unanimously (5-0) to update the Reserve Policy to include guidelines for appropriating new ongoing or one-time unrestricted revenues to be used for specific purposes, as shown in the table below. “New Ongoing Revenues” are defined as a new general tax, an increase in the rate of an existing general tax (such as Measure U), a new lease of City property or other new, clearly identifiable unrestricted revenue source not previously included in the City’s budget at the time of adoption of this policy, which generates at least $100,000 per year in revenue and is expected to continue for at least a period of 20 years.

Measure U Blue Stripe FINAL

Reserve Account

New Ongoing Revenues

New One-time Revenues

Before GF Reserve Target Met

After GF Reserve Target Met

Before GF Reserve Target Met

After GF Reserve Target Met

Infrastructure, Vehicles, and Equipment Reserve

50%

60%

40%

80%

Post-Employment Benefits Sustainability Reserve

10%

10%

10%

20%

Employee Recruitment and Retention Reserve (including additional staff)

20%

30%

0%

0%

General Fund Unassigned Fund Balance

20%

0%

50%

0%


The purpose of these funding allocations is to ensure that the new reserve areas are prioritized on a long-term basis and to ultimately improve the City’s fiscal health. To ensure that the policy is applied consistently by future City administrations and Councils, any modification to this policy requires a super majority or 4/5ths vote of the City Council.

Lastly, Measure U also established an independent Citizens Oversight Committee. The Committee reviews and reports on all Measure U expenditure plans and financial reports to ensure spending is consistent with General Fund Reserve Policy No. 460, as outlined in the above table. The Committee reviewed the FY2019/2020 budget at their first two meetings and have approved that proposed projects are in conformance with the reserve policy. The Citizens Oversight Committee will meet regularly at meetings that are open to the public.

Thank you for your continued support and keep an eye out for the Measure U logo to see Placentia’s tax dollars at work throughout the City.

Links:

Frequently Asked Questions (FAQ) (PDF)

Citizens Oversight Committee Agendas

City Council Resolution Placing Measure U on the Ballot (PDF)

General Fund Reserve Policy No.460

Ordinance O-2018-08 (PDF)

Measure U Presentation (PDF)