Torrance residents now have an independently audited breakdown of how the city used revenue generated by Measure SST, the half-cent local sales tax approved by voters in 2022.

The financial statements cover the fiscal year that ended June 30, 2025 and focus specifically on the Measure SST Fund rather than the city’s entire budget.

According to the audit, Torrance transferred $25,856,912 from the Measure SST Fund to support three broad purposes:

• $12,236,752 for public-safety salaries and benefits
• $8,620,160 for capital improvements
• $5 million for General Fund reserves
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The figures provide a more precise accounting than campaign language or broad budget categories because they show how the revenue was recorded and transferred during a completed fiscal year.

Measure SST added a 0.5% transactions-and-use tax to qualifying purchases in Torrance. Although city officials emphasized public safety, infrastructure and essential services when presenting the measure to voters, it is legally classified as a general tax. That means the City Council retains authority over the revenue through the municipal budgeting process.

The independent auditing firm concluded that the fund’s financial statements were presented fairly in all material respects. The auditor did not modify its opinion because of a material misstatement.

That conclusion does not mean auditors approved every spending decision or determined that each expenditure was the best possible use of taxpayer money. A financial audit primarily evaluates whether the statements accurately represent the fund’s financial activity under applicable accounting standards.

The report also explains that unspent Measure SST money is pooled with other city cash and investments. The fund receives an allocated share of interest based on its average monthly cash balance.

Oversight remains divided among several parts of city government. The City Council approves the budgeted use of the money, finance staff maintains the records, independent auditors review the financial statements and the Measure SST Citizens’ Oversight Committee advises the council regarding the fund.

For residents, the most important takeaway is that more than half of the audited transfers supported public-safety compensation, while roughly one-third went toward capital improvements and the remaining $5 million strengthened city reserves.

Residents who want to evaluate whether Measure SST is delivering on its original promises can compare this audited report with the city’s current budget, capital-project list and future oversight-committee findings.

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