Item 23 - Fiscal Year 2022-23 Mid-Year Budget Update

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Fiscal Year 2022-23 Mid-Year Budget Update, Revive Spending Plan Update, Appropriation Requests, and Workforce Changes February 21, 2023 Page 10 3 2 5 7 Gas Tax Fund 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 revenue estimate was $17.2 million, based on previous League information, which supports decreasing the budget estimate by $2.5 million. To ensure the City’s right-of-way maintenance services are not impacted, staff recommends a $2.5 million General Fund appropriation to cover the shortfall. If approved, expenditures for the Fairview Bridge & Street Improvements, Traffic Signal Maintenance, Median Landscaping, and Roadway Maintenance expenditures will move to the General Fund. Increasing General Fund spending for right-of-way maintenance improves the City’s ability to comply with the Orange County Transportation Authority Maintenance of Effort for Measure M2 funding. Restricted Fund Adjustments The City receives updated information after the beginning of the fiscal year for various restricted funding sources. Examples include the Civic Center Authority adopting the budget after June, and update to federal monies available for various programs. Staff recommends a series of adjustments to resize restricted-money appropriations to available balances and authorizations. The details of these adjustments are included in Exhibit 1. FISCAL IMPACT The General Fund fiscal impact appears at the beginning of this report. Exhibit 1 includes the line-item changes to revenue estimates and recommended appropriation adjustments. Exhibit 5 includes the estimated June 30, 2023 fund balance for all funds, including the revenue impacts and recommendations covered in this report. EXHIBIT 1. Line Item Changes to Revenue Estimates and Recommended Adjustments 2. Resolution No. 2023-XXX, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND RESOLUTION NO. 2015-026 TO EFFECT CERTAIN CHANGES TO THE CITY’S BASIC CLASSIFICATION AND COMPENSATION PLAN 3. Resolution No. 2023-XXX, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA TO AMEND THE CURRENT FISCAL YEAR 2022-2023 ANNUAL BUDGET TO ADD AND DELETE FULL-TIME POSITIONS IN THE LIBRARY DEPARTMENT, PARKS, RECREATION, AND COMMUNITY SERVICES DEPARTMENT, PLANNING AND BUILDING DEPARTMENT, AND PUBLIC WORKS DEPARTMENT 4. Vacancy Report at December 31, 2022