Item 13 - Fiscal Year 2022-23 First Quarter Budget Report and Proposed Appropriation Adjustments

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Fiscal Year 2022-23 First Quarter Budget Report and Proposed Appropriation Adjustments November 15, 2022 Page 5 3 0 7 1 Public Works Bus Stop Fixtures On June 21 of this year, City Council approved a purchase order for bus benches, trash containers and advertising kiosks for a total amount of $514,764. The FY 2021-22 funding was not included in the budget carryovers to FY 2022-23. Therefore, staff requests an appropriation of $514,764 so the purchase can proceed. Civic Center Development The City has begun the long-term planning process for renewal of the Civic Center, including a land swap with the county and a state allocation to expand the City’s footprint within the Civic Center. At this time, staff recommends an appropriation of $1 million for professional services to plan for development of new public facilities. Construction Inspection The City has historically accounted for the design engineering and construction inspection components in an internal service fund. The fund is not solvent, as full cost recovery is not available for the staffing charged to that fund. Since spending and associated cost recovery of these components is not considered restricted, a multi-year process to discontinue use of the separate fund and transition to the General Fund is underway. Therefore, staff proposes to transfer $1.7 million of staffing costs and $1.4 million of charge revenue related to the inspection activity to the General Fund budget with a net fiscal impact of $237,000. The next phase is to transition design engineering costs to the General Fund. Process improvements and cost-benefit analysis will be necessary prior to any further changes that result in a significant General Fund impact. Other Funds Parking Enterprise On September 12, 2022, the Orange County Transportation Authority approved an allocation of up to $679,748 to backfill lost revenue while offering free parking at City- owned parking garages in Downtown Santa Ana during the OC Streetcar construction. Once City staff provides supporting documentation for actual revenue losses, the parking enterprise will receive the revenue backfill. Opioid Settlement The City recently received a $348,507 allocation from the National Opioid settlement. The settlement agreement restricts use of the money, and staff has created a new special revenue Fund 111 to account for it. The Police Department is in the process of developing a comprehensive spending plan that is compliant with allowable uses. A separate staff report with an appropriation request is forthcoming. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action.