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 9 Revive Santa Ana – ARPA Funding On October 5, 2021, the City approved revisions to the Revive Santa Ana, which included a list of projects assigned to various City departments. The requested appropriation adjustments are to align the project budgets into the appropriate City department. The Revive Santa Ana spending plan had originally included a $1.5 million allocation to reimburse the City for OCFA’s COVID-19-related calls. However, COVID-related call volume is much less than previously anticipated. Thus, $500,000 will be reallocated towards accounting and compliance efforts. There is no net fiscal impact associated with this action. In addition, the City received $117,675 in ticket sales from the Santa Ana Winter Village event and an adjustment is needed to recognize revenue and offset anticipated costs above the project amount. Invoices are currently being processed and staff anticipates that this revenue should be sufficient for the additional costs. Civic Center Authority The City has a Joint Powers Authority (JPA) agreement with the County of Orange to pay for shared expenses related to the Civic Center area. These expenses include maintenance, security, and capital projects. The parking revenue collected helps to offset these expenses and the remaining costs are shared with the County of Orange. The City and County each approved the JPA budget. Due to the reduction of parking revenue, the approved Civic Center Authority budget was reduced, which includes a reduction to the City’s shared cost. The requested appropriation adjustments will align the City’s budget with the approved JPA budget. Community Development Agency (CDA) Grant Funds CDA is primarily a grant-funded agency. Staff recommends adjustments to various grant fund revenues and expenditures to align the budget with actual funding available and spending plans approved by granting agencies. These adjustments include recognizing revenue and appropriating expenses for the Peebler Capital Projects Fund (South Main Redevelopment Project) and Emergency Rental Assistance (ERA 1) Fund. Furthermore, staff estimates that several CDA grant funds (i.e., Emergency & Health Grants, Prison to Employment, MS5 HAP CARES Act COVID-19, Housing Authority- Voucher HAP, WIOA, etc.) and the Peebler Capital Projects Fund will have a deficit balance at June 30, 2022 (Exhibit 6). This is the result of timing of billing and pending prior-year grant reimbursements, as grants are multi-year and operate across different fiscal year and calendar year cycles. However, CDA expects to close out several grants this year and receive additional revenue from grant reimbursements to address some of the projected deficit fund balances. Staff will continue to monitor grant and capital activity over the next six months.