Item 26 - Fiscal Year 2022-23 Mid-Year Appropriation Requests

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Fiscal Year 2022-23 Mid-Year Budget Appropriation Requests April 4, 2023 Page 2 3 3 5 9 The purpose of this report is to continue the staff recommendation for appropriation adjustments for further City Council consideration. General Fund Expenditures Recommended appropriation adjustments to General Fund expenditures follow. Finance Staff Retirements Two long-term Finance employees (36 years and 39 years) filed for retirement in December 2022. During budget preparation, staff did not know they would retire during FY 2022-23. The accrued leave-time cash-outs totaled $201,260. The Finance department budget cannot absorb the significant additional expenditure that was compliant with labor agreements, and staff requests a budget increase accordingly. Santa Ana Zoo’s Giant River Otter/Primate Trails Staff requests $1.3 million for additional zoo improvements to utilize the contractor already onsite for the giant river otter habitat. The additional improvements will relocate three primate species from the north end of the zoo and remove the antiquated habitats for the upcoming primate forest project. Both improvements are part of the Master Plan. The requested funding will also address the lighting deficiency in the area. Debt Service for 800 MHz Communication System During FY 2022-23 budget preparation, staff inadvertently omitted a $23,000 principal payment for the 800 MHz communication system used by multiple departments in the City. Staff requests an adjustment to correct the error. Museum Building Capital Repairs The FY 2022-23 budget includes funding to reimburse Bowers Museum for capital repairs to the City-owned building, as allowed by the City’s agreement with the museum. The final request from Bowers, based on documented support for the reimbursement, necessitates another $25,000 of funding. Staff recommends an appropriation adjustment accordingly. Orange County Pride Parade & Festival Sponsorship The City received a donation request for the Orange County Pride Parade & Festival held in Santa Ana in June. Staff requests an appropriation of $30,000 to sponsor the event. Backfill for Gas Tax Revenue Loss The state imposes Gas Tax on a cents-per-gallon basis and allocates a portion to the city. Gas Tax is not a percentage of sales. Therefore, when gas prices escalate and drivers purchase fewer gallons of gas, the City’s Gas Tax revenue decreases. The most recent Gas Tax estimates from the League of California Cities Fiscal Policy Advisor indicate the City’s share will approximate $14.7 million. The FY 2022-23 budgeted