75A-1 - FY 20-21 BUDGET - Laserfiche WebLink

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Consider the Fiscal Year 2020-21 Draft Budget and the 7-Year Capital Improvement Program June 16, 2020 Page 2 reading and adoption. In accordance with Santa Ana Charter Section 607, the City Council must adopt the budget by July 31 of each year. Exhibit 2 is a Fund Summary showing the estimated beginning fund balance, estimated revenues, proposed expenditure appropriations, recommended inter -fund transfers, and estimated ending fund balance for all funds of the City. Exhibit 3 is a Budget Summary and Exhibit 4 is the detailed proposed budget. CARES Act Funding Update & Spending Plan On June 2, 2020 staff reported the City expects to receive a $28,790,000 federal CARES Act funding allocation directly from the state, if the state adopts its FY20-21 budget with the Governor's recommendation. Staff also reported the City expects to receive a $2.5 million CARES Act allocation from the County, once the agreement is final. As of agenda posting, the $28.79 million state allocation is still intact as part of state budget deliberations. Representatives of the League of California Cities expect the state will adopt its budget by June 15. The allocation from the county may be slightly more than the $2.5 previously reported, and the county agreement is in process. Staff will provide an oral update of these allocations during the June 16 City Council meeting. Based on the latest CARES Act spending guidelines published on May 28, the City expects to use the state and/or county allocation to reimburse itself for FY19-20 expenditures, including $1.9 million of special administrative leave and approximately $1.1 million of staff time. The expected reimbursement increases the estimated beginning General Fund balance to $70.8 million (previously $67.8 million). CARES Act funding is restricted to expenditures for COVID-19 response, and does not include reimbursement for revenue losses. A summary of expected spending follows. CARES Act Funding Other Resources City's match for EOC purchases and staff overtime covered by FEMA FEMA for EOC purchases and staff overtime Regular staff time for COVID-19 response not covered by FEMA CESF grant for EOC purchases Sanitization & Testing HHAP and ESG grants for COVID-19 response for the homeless Special Admin Leave CDBG for small business grants Unemployment Claims The City must return any CARES Act money not spent by the end of the calendar year. With the first quarter budget update expected in October, staff will provide an update of actual CARES Act funding received, along with actual expenditures to -date and expectations for the remainder of the calendar year. Labor Concessions Update The City Manager has reached a verbal agreement with at least one of the labor groups. The proposed FY20-21 budget assumes the City will achieve at least $2.5 million of General Fund savings from labor concessions. A full report is forthcoming. 75A-1-2