Ventura County Use of Vehicle-Registration Fees

SAFE’s revenue from vehicle-registration fees for the fiscal year ending June 30, 2017, was $827,000. This revenue is expected to remain fairly constant. (Ref-02)

Expenditures for fiscal year 2016-2017 were $451,000. Going forward, VCTC estimates that the annual cost to maintain the SAFE and SpeedInfo systems after ADA modifications will be between $447,000 and $497,000 annually. (Ref-02)

VCTC receives roughly twice the amount of DMV fees compared to the annual cost of operating the SAFE system. (Ref-02)

SAFE has accumulated $4,407,000 in reserves since the inception of the program in 1986. (Ref-02) County Use of Vehicle-Registration Fees 3

The majority of the SAFE money is held in a designated fund within the county’s investment pool. A small portion of SAFE operating funds is held in the VCTC’s bank account.

SAFE has authority to implement new services, including changeable message signs or a Freeway Service Patrol, among others. However, the SAFE Board has not provided any specific direction regarding expansion of the program. (Ref-03)

VCTC has the authority, on an annual basis, to suspend collection of the $1 fee.

The Little Hoover Commission, a State oversight agency, writes of reserve funds: “These funds are a public resource that, over the long term, should be scrutinized like all public resources to determine if they are being put to the highest and best use.” The Commission recommends a “clear and well- articulated rationale for the accumulation and management of reserve funds.” (Ref-04) CAL-ID

Total revenue for fiscal year 2016-2017 was $799,000, and the total expenditures for the same year were $799,000. Expenditures include salaries, vehicles, training, and maintenance costs, as well as encumbrances for equipment replacement. (Att-01)

The CAL-ID program has accumulated $2,136,000 in excess funding, all of which is encumbered for future equipment replacement.

Funds for the CAL-ID program are wired by the State to a trust account managed by the County Auditor-Controller. Vehicle Theft Program

Total revenue for fiscal year 2016-2017 was $799,000. (Att-02)

Total expenditures for fiscal year 2016-2017 were $655,000. (Att-02)

The Vehicle Theft Program has reserves of $408,000. In recent years, reserve funding has grown by $100,000 to $120,000 annually, which is held in the County’s contingency fund.

The County Auditor-Controller recommends the establishment of a trust fund account for all Vehicle Theft Program revenues. Vehicle Retirement and Carl Moyer Air Quality Standards Programs

Total APCD revenue for fiscal year 2016-2017 [from VAVR and Carl Moyer combined] was approximately $4.6 million. (Ref-05)

Expenditures for programs in AB 2766 are approximately $2.89 million annually. This money is part of the APCD’s $8.8-million operating budget to meet provisions in the State Clean Air Act. (Ref-05)

Expenditures to meet Carl Moyer grants in fiscal year 2016-2017 were approximately $3.8 million. In addition, the APCD Board approved grants 4 County Use of Vehicle-Registration Fees for fiscal year 2016-2017 resulting in $3.9 million in encumbered funds. (Ref-05)

The APCD’s Carl Moyer Program does not hold reserves. Unspent grant funding must be returned to the California Air Resources Board. (Att-03)

The State sends funds directly to the APCD, which are reported in a separate revenue account. Conclusions C-01. The Grand Jury concluded that despite a nearly 25% decrease in the number of callboxes, the SAFE program continues to collect twice the amount in vehicle-registration fees than it needs to cover annual program costs. (FA-01, FA-02, FA-03) C-02. The Grand Jury concluded the SAFE program has built up an excessive reserve fund of $4.4 million, equal to roughly 10 years’ worth of current annual expenditures. (FA-04, FA-06, FA-07, FA-08) C-03. The Grand Jury concluded the Vehicle Theft Program’s has a sizeable reserve balance of nearly $408,000, and it is growing annually. The Grand Jury further concluded these funds could be kept in a trust account as recommended by the Auditor-Controller in order to provide additional oversight and transparency. (FA-12, FA-13, FA-14, FA-15) C-04. The Grand Jury concluded there is no consistent policy on how operating expenses or reserve funding is held by SAFE, the Vehicle Theft Program, or the APCD. (FA-05, FA-14, FA-20) C-05. The Grand Jury concluded the CAL-ID policy of having funds wired directly from the State to a trust fund managed by the Auditor-Controller provides more accountability and adherence to State statutes. (FA-09, FA-10, FA- 11, FA-15) C-06. The Grand Jury concluded it is good policy that Carl Moyer does not allow unspent money to accumulate, avoiding the creation of excessive reserves. (FA-16, FA-17, FA-18, FA-19) Recommendations R-01. The Grand Jury recommends that the SAFE Board suspend its receipt of DMV fees until the excess reserve is significantly reduced. (C-01, C-02) R-02. The Grand Jury recommends the SAFE Board develop formal, written policies regarding the size and management of reserve funds. (C-04, C-06) R-03. The Grand Jury recommends the Ventura County Board of Supervisors direct that funding for the Vehicle Theft Program be deposited into a trust account held by the Auditor-Controller’s office in order to provide more accountability, transparency, and oversight. (C-03, C-05) County Use of Vehicle-Registration Fees 5 Responses Responses Required From: Ventura County Board of Supervisors (R-03) Ventura County Auditor-Controller (C-05, R-03) Ventura County District Attorney (C-03) Responses Requested From: Board for the Service Authority for Freeway Emergencies/VCTC (C-01, C-02, C- 04, C-06, R-01, R-02) References Ref-01. The Carl Moyer Program Guidelines 2017 Revisions https://www.arb.ca.gov/msprog/moyer/guidelines/2017gl/2017_cmp_gl _volume_1.pdf Accessed on March 19, 2018 Ref-02. VCTC Comprehensive Annual Financial Report https://www.goventura.org/sites/default/files/CAFR%201617.pdf Accessed on March 19, 2018 Ref-03. Streets and Highways Code, Division 3, Chapter 14, Service Authority for Freeway Emergencies https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCod e=SHC&division=3.&title=&part=&chapter=14.&article Accessed on March 19, 2018 Ref-04. Little Hoover Commission, Special Districts: Improving Oversight and Transparency, Report #239, August 2017 http://www.lhc.ca.gov/sites/lhc.ca.gov/files/Reports/239/Report239.pdf Accessed on March 19, 2018 Ref-05. VCAPCD Adopted budget 2017-2018 http://www.vcapcd.org/pubs/Fiscal/Budget/1718/FY2017-18-APCD- Adopted-Budget.pdf Accessed on March 19, 2018 Attachments Att-01. State Controller’s Office Fingerprint CAL-ID Report Fiscal Year 2016-2017 Att-02. State Controller’s Office Vehicle Theft Report Fiscal Year 2016-2017 Att-03. The Carl Moyer Program Guidelines 2017 Revisions Liquidation Requirement 6 County Use of Vehicle-Registration Fees Glossary TERM DEFINITION AB Assembly Bill ADA Americans With Disabilities Act AFIS Automated Fingerprint Identification System APCD Air Pollution Control District BOS Ventura County Board of Supervisors CHP California Highway Patrol County Ventura County DMV Department of Motor Vehicles Encumbrance An obligation is the form of a purchase order, contract or salary commitment that is chargeable to an appropriation, and for which part of an appropriation is reserved. These obligations become disbursements upon payment. Fiscal Year A 12-month period of time for which the budget applies (often July 1 through June 30). Operating Budget Authorized expenditures for on-going services. RAN Remote Access Network SAFE Service Authority for Freeway Emergencies State State of California VAVR Voluntary Accelerated Vehicle Retirement VC Vehicle Code VCTC Ventura County Transportation Commission County Use of Vehicle-Registration Fees 7 Attachment 01 State Controller’s Office Fingerprint CAL-ID Report Fiscal Year 2016-2017 8 County Use of Vehicle-Registration Fees County Use of Vehicle-Registration Fees 9 Attachment 02 State Controller’s Office Vehicle Theft Report Fiscal Year 2016-2017 10 County Use of Vehicle-Registration Fees County Use of Vehicle-Registration Fees 11 Attachment 03 The Carl Moyer Program Guidelines 2017 Revisions Liquidation Requirement 12 County Use of Vehicle-Registration Fees County Use of Vehicle-Registration Fees 13