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

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Receive and file the FY 2021-2022 Mid-Year Budget Update March 1, 2022 Page 8 OTHER CITY FUNDS Cannabis Public Benefit Fund The Cannabis Public Benefit Fund provides dedicated funding for youth programs implemented through the Parks, Recreation and Community Service Agency and the Library. The Mid-Year budget adjustment includes an increase to the Cannabis Public Benefit Fund expenditures by $7.5 million to spend the remaining fund balance available from the one-third originally allocated to enforcement activities, as reported to City Council on July 20, 2021. Now that the FY 2020-21 books have been closed, the updated balance available from allocations to enforcement activities is $9,152,718. The recommended spending plan for the $7.5 million previously identified in July follows. Description Amount Renovation of Centennial Lake for a Youth Fishing Program $2,500,000 Renovate and Program Nature Center at Santiago Park $1,000,000 Install synthetic turf at Dan Young Soccer Complex and synthetic turf and lights at Field 1 $2,500,000 Funding for movies and concerts in the park $500,000 Funding for sports field maintenance $1,000,000 Total $7,500,000 Staff also proposes to reduce the Cannabis Public Benefit Fund expenditure budget by $214,300 to correct the IT overhead allocation as reported to City Council on September 7, 2021. Gas Tax Fund The City receives Gas Tax revenue estimates from the League of California Cities fiscal policy advisor, Michael Coleman. Based on recent information received, we can increase the revenue estimate by $1.0 million. With that adjustment, the updated estimate for the Gas Tax fund balance at June 30, 2022 is $9.8 million. The Budget and Reserve Policy includes a target reserve level of 20 percent of the annual budget, which would be approximately $3.1 million, leaving $6.7 million available for spending. Public Works has identified a list of immediate sidewalk repairs and the need for additional funding for the Bristol Street Improvement project. Staff recommends appropriating an additional $2.0 million from the available Gas Tax fund balance for sidewalk repairs and $4.0 million for the Bristol Street Improvements Phase 3A (between Civic Center and Washington) and Phase 4 (between Warner and St. Andrew). The proposed one-time $2.0 million appropriation for sidewalk repairs, combined with the original budget of $2.0 million and the $500,000 recurring appropriation approved with the First Quarter Budget Report will fund significant progress on the City’s sidewalks.