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Proposed Fiscal Year 2022-23 City Budget, Changes to the City's Basic Classification <br />and Compensation Plan, and the Seven -Year Capital Improvement Program <br />June 7, 2022 <br />Page 2 <br />As required by Santa Ana Charter Sections 604 and 605, the City Manager proposes a <br />FY 2022-23 Budget for City Council consideration during this Public Hearing. Staff has <br />prepared resource estimates (beginning fund balances and new revenue), and the <br />proposed Ordinance would appropriate spending of those resources to support ongoing <br />public services and Strategic Plan Goals. <br />Santa Ana Charter Section 607 requires the City Council to adopt the annual budget by <br />July 31. If the City Council approves the recommended action, the Ordinance will return <br />to City Council on June 21 to consider for adoption, in time for the beginning of the new <br />fiscal year on July 1. <br />General Fund <br />The General Fund is the primary operating fund of the City and accounts for all <br />unrestricted revenue. A summary of proposed FY22-23 General Fund activity follows. <br />BudgetFY 21-22 FY 22-23 <br />General Fund Revised Proposed <br />• <br />Beginning Balance $ 109,248,977 $ 97,462,861 <br />Revenue <br />Expenditures <br />Net Transfers <br />Net Activity <br />Pension Stabilization <br />Estimated Ending Balance <br />37512201979 <br />(346,592,300) <br />(40.414.795) <br />39011121940 <br />(344,963,690) <br />(51.403.070) <br />(11,786,116) (6,253,820)1 <br />$ (7,748,811) <br />$ 97,462,861 $ 83,460,230 <br />Reserve Requirement (18%) $ 67,539,776 $ <br />70,220,329 <br />The proposed General Fund budget is balanced. The difference between estimated <br />resources and proposed spending is an estimated $13,239,901 available to spend. Staff <br />recommends leaving this balance available for the Third and Broadway development <br />commitment to preserve maximum flexibility for the City. <br />A full reconciliation of changes from the adjusted FY 2021-22 General Fund budget to the <br />proposed FY 2022-23 General Fund budget is included with Exhibit 2. City Council policy <br />requires a General Fund Reserve equivalent to 18 percent of recurring annual General <br />Fund revenue. Staff estimates the General Fund Reserve at June 30, 2022 will be <br />compliant with City Council Policy. As General Fund revenue grows for FY 2022-23, so <br />