REPORT TO CITY COUNCIL
SUBJECT
Title
Action on the Appropriation of $102,849 in Asset Forfeiture Funds for FY 2024/25 and to Approve the Related Budget Amendment and Spending Plan
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
State and federal narcotics and other criminal convictions can result in the State or federal government seizing cash and property, such as vehicles or boats, that are sold by auction, resulting in receipt of sale proceeds. These proceeds are referred to as “asset forfeiture funds” and are used by the State and federal governments for a variety of purposes, including, but not limited to, personnel training or safe destruction of hazardous materials (including controlled substances). Recognizing that local public safety departments provide assistance to the State or federal enforcement agency in the investigation of the crimes resulting in asset forfeiture, the funds are shared with the local law enforcement agencies pursuant to California Health and Safety Code Section 11469, et seq., and various federal statutes (e.g., 28 U.S.C. 524, et seq. and 21 U.S.C. 881). The Police Department submits a request annually to share in the distribution of funds seized pursuant to judicial and/or administrative actions. These funds may only be used for specific purposes.
Federal regulations do not allow agencies to budget anticipated Forfeiture Funds. Therefore, the City Council must allocate the use of Asset Forfeiture Funds after the money has been received, and prior to spending.
Previous years’ funding has been allocated for purchases to enhance the Police Department’s ability to apprehend criminal offenders, attend training and professional events, enhance employee safety, and address ways to better serve the Santa Clara community.
DISCUSSION
Asset Forfeiture Funds may only be issued for law enforcement-specific expenditures such as: operations and investigations; training and education; facilities improvements; purchase of materials, supplies and equipment; vendor services that are necessary support for law enforcement such as translator services; awards and memorials; awareness campaigns (such as PSAs regarding drugs or gangs). There are a number of limitations on the use of the funds, including salaries, litigation-related purposes, creation of endowments or scholarships, or supplanting other funding sources for the Police Department. The uses set forth in this report are compliant with these requirements and limitations.
In 2024, a total of 21 criminal cases were initiated by joint State-federal action and processed under federal law. The total value of the assets seized in such cases totals $842,924. A total of 91 suspects were charged with a controlled substance violation in connection with these cases, and there were 148 alleged offenses under State or federal law. The City has the opportunity to continue to enhance Police Department programs and services with its portion of the funding from these cases, totaling $102,849. This amount is recommended to be appropriated as part of this report.
As part of the FY 2023/24 Budgetary Year-End Report, as approved by the City Council on December 3, 2024, funds of $179,773 were recognized and appropriated in the Police Operating Grant Trust Fund. However, these funds were not yet allocated as part of a Council approved spend plan. The Police Department is utilizing this opportunity to present Council with a spend plan for both the Asset Forfeiture Funds received in FY 2024/25 and for funds received in FY 2023/24. The spending plan detailed below includes the previously appropriated funds not yet tied to a spend plan totaling $179,773 and the new allocation of funding of $102,849, for a combined total of $282,622. As necessary, updates to policies in connection with the new equipment and required training will be implemented accordingly. Allocations may require adjustments based on inflation and prioritization of programing, not to exceed total funds received.
None of the equipment being recommended for purchase would be categorized as “military equipment” per Assembly Bill 481.
|
Program Area |
Description of Potential Purpose |
Allocation Requested |
|
Safety Needs |
Protective equipment, etc. |
$20,000 |
|
Training and Education |
Conference and travel, professional training, etc. |
$28,000 |
|
Canine Program |
K-9 officer, training, protective equipment and supplies |
$91,000 |
|
Data Integration Software |
Seamless data aggregation between various software |
$117,622 |
|
Community Programming |
Community outreach supplies, volunteer program, awards, etc. |
$26,000 |
|
|
TOTAL |
$282,622 |
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378 (b)(4) in that it is a fiscal activity that does not involve commitment to a specific project which may result in potential significant impact on the environment.
FISCAL IMPACT
The Police Department is seeking Council approval to recognize and appropriate $102,849 in Asset Forfeiture Funding to support enforcement, other programs, and needs in the Police Department without using General Fund monies. The table below details the budget action for FY 2024/25.
Budget Amendment
FY 2024/25
|
|
Current |
Increase/ (Decrease) |
Revised |
|
Police Operating Grant Trust Fund |
|
Revenue |
|
|
|
|
Other Agencies Revenue |
$166,774 |
$102,849 |
$269,623 |
|
|
|
|
|
|
Expenditures |
|
|
|
|
Seized Asset Funding |
$472,015 |
$102,849 |
$574,864 |
COORDINATION
The report was coordinated with the Finance and Police Departments and City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Approve the appropriation of Asset Forfeiture Funds in the amount of $102,849 pursuant to State and federal Regulations;
2. Approve the described spending plan for a combined total of $282,622 of FY 23/24 Operating Grant Trust Funds and FY 24/25 Seized Asset Funding; and
3. Approve the FY 2024/25 budget amendment in the Police Operating Grant Trust Fund to recognize seized asset funding in the amount of $102,849 and appropriate that funding to the Seized Asset Funding program in the amount of $102,849 (five affirmative Council votes required to appropriate additional revenue).
Staff
Prepared by: Carolyn McDowell, Senior Management Analyst
Reviewed by: Cory Morgan, Chief of Police
Approved by: Jovan Grogan, City Manager