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 7 4 3 9 22 Budget. Community Development Agency: Prior to the pandemic, downtown parking revenue was already insufficient to fund all of the Parking Enterprise commitments such as dedicated police patrols, funding for the Clean & Safe program, contributions to the downtown business groups, holiday lights, and operational costs of the City parking garages. The pandemic has exacerbated the situation. At this time, it is expected that the Parking Enterprise Fund may end the fiscal year with a negative $1.2 million fund balance, and a request for a one-time General Fund subsidy is likely forthcoming. Staff is working through options to reduce costs, and may be able to mitigate some of the challenges. Therefore, staff will not request an adjustment until potential strategies are identified. Staff recommends $0.6 million of net adjustments to various grant fund revenues and expenditures to align the budget with actual funding available. This includes the adjustment of a revenue estimate for investment income in one of the grant funds, included in the budget document in error. CARES Act Adjustments: The City is required to record investment income in the three CARES Act special revenue funds, and appropriate the income for CARES related expenses. The total amount of these adjustments is $95,500 for both revenue and expenditures, with no net fiscal impact. Planning & Building: Activity to board up vacant and/or abandoned property has increased. The cost for this service is reimbursable and billed to the property owner. The recommended increase to both revenue and expense is $15,000, with no net fiscal impact. Police Department: On June 16, 2020, the City Council approved an agreement with Human Options as part of a Department of Justice Grant for the Violence Against Women program. The program provides funding to investigate domestic violence cases, update cases in the Police Department’s Report Management System, and assist with the mobile domestic violence response team comprised of a Human Options domestic violence advocate and a Santa Ana Special Crimes detective or police officer. Grant funding of $194,720 is available for the FY20-21, and staff recommends adjustments to revenue and expense, with no net fiscal impact. Fire Facilities Fund: A $150,800 revenue adjustment is included to capture actual receipts. The fund is restricted to improving City-owned fire facilities. Public Works: The League of California Cities Fiscal Policy Advisor has updated estimates for current-year Gas Tax revenue, resulting in a net revenue increase of $52,245.