Item 38 - Fiscal Year 2021-2022 General Fund - First Quarter Budget Update

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Receive and file the FY 2021-2022 General Fund - First Quarter Budget Update December 21, 2021 Page 8 2 3 6 1 through an updated cost allocation and internal charge methodology to be included in the proposed FY22-23 budget. In the meantime, the fund needs a cash infusion to avoid a negative fund balance at June 30, 2022. Building Maintenance Fund The City’s buildings are aged and there has been an increased demand for repairs across all city facilities including fire stations and the City Hall complex. Over the past four years, the fund has been operating at a loss and has continued to rely on fund balance to pay for its operational costs. Staff expects the FY21-22 budget will deplete the fund balance. We currently recommend a one-time infusion, with a plan to propose a rebalancing of internal charges and costs with the FY22-23 budget. Fleet Maintenance Fund The Fleet Maintenance Fund provides support for the maintenance and operation of city- owned vehicles. In three of the last four years, the fund has been operating at a loss and has been using available fund balance to cover operations and new vehicle purchases. The labor and supply costs have been increasing and growth of the fleet has increased demand for routine maintenance, yet the corresponding internal charges to departments have not increased. We currently recommend a one-time contribution, with a plan to propose a rebalancing of internal charges and costs with the FY22-23 budget. Full-Time Employee Position Vacancy Report The FY 2021-22 budget included funding for 1,263 full-time positions. On October 5, 2021, the City Council approved an additional 21 positions across various departments funded by the Revive Santa Ana program. These new positions funded in the second quarter will be included in the Mid-Year Budget Report. Staff recommends adding one full-time Meter Reader Collector position funded by the Water Enterprise Fund. This area has been experiencing staffing shortages for a number of years, impacting timely reads and rereads of water meters used for water billing. Furthermore, staff expects the water fund to receive a significant infusion of funds from the state in January for past-due water accounts. The requested funding for the position is $42,720 to cover the remainder of the fiscal year, with the full annual amount to be included in the FY22-23 budget. Staff also recommends adding one full-time Economic Development Specialist I position in the Community Development Agency to support the administration of new economic development and resident assistance programs. The requested funding for the position is $57,840 to cover the remainder of the fiscal year, with the full annual amount to be included in the FY22-23 budget. Additionally, staff recommends adding one full-time Records Manager position in the City Clerk’s Office to manage the increased volume of public records request. Human Resources will provide a final recommendation of appropriate job classification which will