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  Agenda Item   12.    
City Council Meeting
Meeting Date: 02/21/2023  
FROM: Bill Gallardo

Subject:
Budget Adjustments to the City Operating and Capital Improvement Program Budgets for Fiscal Year 2022-23
RECOMMENDATION
Adopt the attached resolutions appropriating funds to adjust the Fiscal Year 2022-23 City Operating and Capital Improvement Program Budgets.
BACKGROUND/DISCUSSION
Budget adjustments are presented to the City Council periodically for review. These adjustments represent the appropriation of items previously approved by the City Council during the fiscal year, or staff recommended adjustments for City Council consideration as well as requested adjustments to revenue estimates. The recommended adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.

For FY 2022-23, the below information highlights the recommended budget adjustments for the City's General Fund Operating Budget with a complete list (including non-General Fund adjustments) provided in City - Exhibit A.
  • Included in these adjustments is the recognition of the 2nd installment of the American Rescue Plan Act (ARPA) monies in the amount of $5,173,758 in the City's General Fund (110). This Federal stimulus funding was initially projected to be received in FY 2021-22, however due to timing, the funding was received in the current fiscal year. As a reminder, these funds have been identified to be used for revenue replacement as a result of the COVID-19 pandemic so the City is able to maintain service levels to the community.
  • Avenu Analytics is the City's sales tax consultant who provides sales tax discovery and auditing services, and as part of those services, receives a one-time percentage of corrected returns they process. For this adjustment, Avenu's share was $31,341 while generating approximately $222,290 in immediate and ongoing sales tax revenue for the City.
  • Throughout the fiscal year, departments receive grant and donation funding. For this adjustment period, Police is requesting to adjust revenues and expenditures associated with the award of the Cannabis Tax Fund Grant Program in the amount of $133,245, as well as correct a carryover appropriation from the Public Safety Realignment Grant Program (AB 109) for eligible expenditures with a net increase of $4,878. Fire Services is requesting to adjust revenues and expenditures related to donations and/or contributions received from the Fire Foundation, California Firefighter Joint Apprenticeship Committee and Bridge Energy with no net impact to the General Fund Operating Budget.
For Capital Improvement Projects, $100,000 is being requested from the Golf Course Fund (465) to cover additional restroom improvements and turf removal at the Birch Hills Golf Course (#7968) and ramp repair and ADA improvements at Brea Creek Golf Course (#7969). There are sufficient revenues over expenditures in the Golf Course Fund (465) to cover these increased one-time costs. In addition, a budget adjustment is being requested to move Gas Tax Fund (220) and Water Utility Fund (420) funds in the total amount of $950,000 from the South Brea Neighborhood Water Main Replacement Project (CIP 7466), Gemini Avenue/Steel Drive Waterline Improvement Project (CIP 7453) and Pleasant Hill Tract Water Improvement Project (CIP 7457) to the Country Hills Subdivision Pavement/Water Rehabilitation Project (CIP 7322). This is due to additional scope of work and additional water main improvements within the subdivision to address the emergency pavement work needed. There is no net impact to the Gas Tax Fund (220) or Water Utility Fund (420) with this request as funds are being transferred from other capital improvement projects that are under budget.

The Capital Improvement Program Budget adjustments in CIP - Exhibit A consists of an increase in expenditures of $100,000 and corresponding adjustments to revenues and transfers-in.
COMMISSION/COMMITTEE RECOMMENDATION
The attached FY 2022-23 budget adjustments were reviewed by the Finance Committee on February 14, 2023, and were recommended for City Council approval.
FISCAL IMPACT/SUMMARY
The Fiscal Year 2022-23 City Operating Budget adjustments for the City's General Fund (110) in City - Exhibit A, resulted in an increase in revenues of $5,550,421 and an increase in expenditures and transfers-out of $193,136, for a net General Fund increase in revenues over expenditures of $5,357,285.
 
The City Operating Budget adjustments for all funds including the General Fund resulted in an increase in revenues and transfers-in of $5,606,921 and an increase in expenditures and transfers-out of $527,135 for a net increase in revenues of $5,079,786.
 
The Capital Improvement Program Budget adjustments resulted in an increase in expenditures of $100,000 and a corresponding adjustment to revenues and transfers-in.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by: Alicia Brenner, Senior Fiscal Analyst
Concurrence: Kristin Griffith, Director of Administrative Services
Attachments
Resolution - City
City - Exhibit A
Resolution - CIP
CIP - Exhibit A

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