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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />September 21, 2021 <br />TOPIC: Carry-Over of Unspent Amounts from Fiscal Year 2020-21 to Fiscal Year 2021- <br />22 <br />AGENDA TITLE: <br />Approve Appropriation Adjustment to Carry Over Unspent Amounts from Fiscal Year <br />2020-21 to Fiscal Year 2021-22 <br />RECOMMENDED ACTION <br />1. Approve an Appropriation Adjustment to reduce the FY 2020-21 budget for unspent <br />amounts to be carried over to FY 2021-22. <br />2.Approve an Appropriation Adjustment to increase the FY 2021-22 budget for amounts <br />carried forward from FY 2020-21. <br />DISCUSSION <br />Carry Over Unspent Budgets from FY 2020-21 <br />It is common for a city to budget for non-recurring (one-time) expenditures, such as <br />construction projects, which are not completed by the close of the fiscal year on June 30. <br />When this happens, the City Council may approve “carry-over” of the unspent budget <br />from one fiscal year to the next to provide resources for project completion. Staff typically <br />does not request carry-over for recurring operating budget amounts unless projects have <br />not begun, with initial maintenance/operating costs, as each annual budget already <br />includes provisions for operational expenses. <br />The City Council adopts a budget one year at a time and the City’s Charter requires City <br />Council approval for appropriation adjustments. Increasing the current year’s budget for <br />unspent amounts carried over from the prior year constitutes an appropriation adjustment. <br />Staff has compiled a list of carry-over requests (Exhibit 1) such as multi-year capital/grant <br />projects, delayed purchases impacted by COVID-19, and improvements to City-owned <br />fire stations. The list includes the: accounting unit, project description and status, and <br />amount. All requests were reviewed with City departments and analyzed to ensure the <br />unspent budget is available at the accounting unit and fund levels and the allocation is <br />non-recurring.