Item 25 - Fiscal Year 2021-2022 Mid-Year Budget Update

Home Browse Search

Receive and file the FY 2021-2022 Mid-Year Budget Update March 1, 2022 Page 10 Parking Enterprise Fund The Parking Enterprise fund was significantly impacted by the pandemic, but with the option of outdoor dining and events planned for the year in the downtown area, parking revenue has slightly improved. Staff is recommending an adjustment to increase the revenue estimate by $242,000. However, the City began offering free parking during the weekdays from 7 a.m. to 5 p.m. at four City-owned downtown parking structures beginning February 14, 2022 to provide additional support to downtown businesses affected by the OC Streetcar construction. To help mitigate the revenue loss, staff proposes a one-time General Fund subsidy of $789,000 to address the estimated deficit balance at year-end. City Services The City Services fund allows for developers to submit fees to have City staff or consultants perform expedited inspections, accelerated plan checks, and CIP Construction Project Permits. The proposed adjustments are to recognize revenue and appropriate expenses of $250,000 for CIP Construction Project Permits that were not budgeted in Fiscal Year 2021-22. Additionally, a reduction of $79,700 is needed to eliminate the budget in this fund for the Planning & Building Agency. The revenue and expense were incorrectly budgeted in City Services and has since been corrected to the appropriate funding source. Federal Clean Water Fund Unforeseen legal expenses related to the Santa Ana Delhi Conversion Project require the use of available fund balance in the amount of $200,000 to resolve contractor claims as unexpected field conditions discovered during the construction project required additional work to be completed. The contractor claims to seek reimbursement for costs associated with the additional work. Residential Street Improvements The proposed adjustments are to recognize street construction fees and appropriate expenses of $300,000 for residential street improvement contracts not included in the original FY 2021-22 budget. Water Fund The Water Enterprise revenue provides funding to Water Capital Projects. The adjustment of $10.6 million is to reflect funding for projects that were carried forward from FY 2020-21. In addition, the Water Enterprise reimburses the City’s General Fund for overhead costs. The General Fund budget includes the reimbursement, but the Water Enterprise budget does not. A budget adjustment is necessary to correct the oversight. Deferred Compensation Plan FMSA is the Plan Administrator for the City’s Deferred Compensation Program and is in receipt of additional fees used to offset administrative costs. Therefore, an adjustment is requested to reflect anticipated revenue and expense.