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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 9 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />September 20, 2022 <br />TOPIC: Carryover of Unspent Amounts from Fiscal Year 2021-22 to Fiscal Year 2022-23 <br />AGENDA TITLE: <br />Approve Appropriation Adjustment to Carryover Unspent Amounts From Fiscal Year <br />2021-22 to Fiscal Year 2022-23 <br />RECOMMENDED ACTION <br />1. Approve an Appropriation Adjustment to reduce the FY 2021-22 budget for unspent <br />amounts to be carried over to FY 2022-23. (Requires five affirmative votes) <br />2. Approve an Appropriation Adjustment to increase the FY 2022-23 budget for <br />amounts carried forward from FY 2021-22. (Requires five affirmative votes) <br />DISCUSSION <br />Carryover Unspent Budgets from FY 2021-22 <br />It is common for a City to budget for non-recurring (one-time) expenditures, such as <br />construction projects, which are not completed by the close of the fiscal year on June 30. <br />When this happens, the City Council may approve the “carryover” of the unspent budget <br />from one fiscal year to the next to provide resources for project completion. Staff typically <br />does not request carryover for recurring operating budget amounts unless projects have <br />not begun, with initial maintenance/operating costs, as each annual budget already <br />includes provisions for operational expenses. <br />The City Council adopts a budget one year at a time and the City’s Charter requires City <br />Council approval for appropriation adjustments. Increasing the current year’s budget for <br />unspent amounts carried over from the prior year constitutes an appropriation adjustment. <br />Staff has compiled a list of carryover requests (Exhibit 1) such as multi-year capital/grant <br />projects, delayed purchases impacted by global supply chain disruptions, improvements <br />to City-owned fire stations, and one-time projects approved during the First Quarter and <br />Mid-Year that are either in progress or will begin in FY 2022-23. In addition, the Police <br />Department has General Fund savings to provide for one-time items that have been <br />requested for several budget cycles and are desperately needed, such as the <br />replacement of the PAAL Center A/C unit, fire system upgrade, and replacement of <br />security gates for the Police Administration and Jail facility. The General Fund comprises