Information on Measure HH, Essential City Services

Measure HH Update, March 2021

Dear Neighbor,

On November 8, 2016 the residents of Fountain Valley approved Measure HH, a one-percent transactions and use (i.e. “sales”) tax. The use of Measure HH is guided by the City’s Responsible Spending Pledge and the 20-Year Financial Plan, where the goal is to pay off all debt and to have a balanced operating budget in 2037 when Measure HH sunsets. Accountability and transparency is built into the process. For example, the Measure HH – Essential City Services Oversight Advisory Committee (“Oversight Committee”) generally meets four (4) times a year to ensure that Measure HH funds are spent as promised. In addition, Measure HH revenues and expenses are audited annually by an independent certified public accounting firm.

On December 10, 2020, Davis Farr LLP (an independent auditing firm), issued an audit report on Measure HH Revenues and Expenditures for the fiscal year ended June 30, 2020, which was discussed with the Oversight Committee on January 27, 2021. The 2019-20 auditor’s report reflected approximately $12.4 million of revenue from Measure HH. $4.7 million was used, in accordance with the Responsible Spending Pledge and 20-Year Financial Plan, to fund essential city services such as public safety and senior and youth programs of which $350,000 was used to fund residential road rehabilitation. An additional payment of $2 million was made to CalPERS consistent with the City’s 20-Year Financial Plan where the goal is to pay-off all outstanding debt and unfunded liabilities by 2037 when Measure HH sunsets. The balance of Measure HH revenue in the amount of $5.7 million (46% of Measure HH revenue) was set-aside to fully rebuild and maintain reserves consistent with the City’s 20-Year Financial Plan and the Fund Balance Reserve Policy.

The Oversight Committee concluded that the audited revenue and expenses for 2019-20 are consistent with the intent of the Measure HH ballot measure and the Responsible Spending Pledge. Reports from the Oversight Committee and the independent auditors can be found below.

We thank the community for your ongoing support in keeping the City “A Nice Place to Live”. If you have any questions regarding Measure HH – Essential City Services, please contact the City Manager’s Office at (714) 593-4410 or the Finance Department at (714) 593-4501.


Jennifer Lampman
Finance Director