Item 19 - Fiscal Year 2020-21 Mid-Year Budget Update and Appropriation Adjustments

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Fiscal Year 2020-21 Mid-Year Budget Update and Appropriation Adjustments February 16, 2021 Page 5 4 3 9 pandemic. Based on the first six months of activity, this revenue has done a little better than expected and staff has increased the revenue estimate by $0.9 million. General Fund Expenditures As of December 2020, General Fund expenditures are nearly 3% less than budget. This is a result of reduced spending in PRCSA and support from the CARES Act for supplies, outreach programs, and staffing. Exhibit 2 includes a table of recommended adjustments. Discussion follows for notable items. Non- Departmental: The City has experienced an increase in litigation activity requiring the use of outside attorneys. On December 1, 2020, the City approved an agreement with King and Spalding and noted the expected increase to litigation expenditures. Staff proposes to increase contract services by $1.0 million. As noted above, Cannabis revenue increases have resulted in an increase to the Cannabis Public Benefit to comply with the ordinance. Therefore, staff proposes to increase the transfer by $5.3 million for the remainder of the fiscal year. The Civic Center JPA reduced its budget due to a reduction in Civic Center parking revenue and the City’s current year contribution decreased by $579,400. In addition, there are two adjustments necessary to decrease the Civic Center fund budget by $1.5 million in alignment with the JPA adopted budget. Parks, Recreation and Community Services: The FY19-20 budget included an allocation to complete the Center Street Project at Jerome Park. Staff inadvertently missed a carryover of the unspent budget from FY19-20 to FY20-21 and staff proposes restoring the unspent budget of $119,600 to complete the project. As noted above, the pandemic effected PRCSA operations and staff recommends reducing the PRCSA budget by $1.35 million to reflect the temporary program savings. The proposed FY21-22 budget will likely include amounts reflecting a return to normal activity. Police Department: On September 15, 2020, the City Council approved the COPS grant to fund 10 new Police Officers. The grant necessitated a General Fund matching contribution of $127,721 for FY20-21. Staff did not request the General Fund appropriation at the same time the City Council approved the grant. Staff recommends an adjustment to appropriate the General Fund match. The County provides annual funding for the supervision of subjects who are on the Post Release Community Supervision program (AB109). The program activity has increased for FY20-21 and both the revenue estimate and corresponding appropriation should increase by $480,000, with no net impact to the General Fund.