Item 43 - FY 2023-24 Mid Year Budget Update

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FY 2023-24 Mid -Year Budget Update, Appropriation Requests, and Workforce Changes February 20, 2024 Page 5 By using the $10 million for Fire Services in the current fiscal year and the resulting savings later for Memorial Park, the City will spend the ARPA revenue backfill timely and within guidelines and help close a funding gap for a high -priority project. Housekeeping Adjustments for Labor Agreements The FY 2023-24 General Fund budget includes a set -aside for labor negotiations within the Non -Departmental section of the budget. In June and July 2023, the City Council approved labor agreements for the Service Employees International Union (SEIU), Santa Ana Management Association (SAMA), Santa Ana Police Officers Association (SAPOA), and Confidential Association of Santa Ana (CASA). The staff reports included the estimated General Fund cost increase resulting from each Memorandum of Understanding. At this time, staff recommends moving the budgeted General Fund allocation for labor negotiations from Non -Departmental to various departmental budgets, based on actual usage. This housekeeping adjustment has a net zero fiscal impact. Other Funds Cannabis Public Benefit Fund The Cannabis Public Benefit Fund provides dedicated funding for youth programs implemented through the Parks, Recreation and Community Service Agency and the Library. Due to rising costs and increased scope as noted above, staff requests $2,260,000 of one-time money from this fund for the Memorial Park project. The estimated fund balance is approximately $4.6 million, which is sufficient to cover the recommended $2,260,000 appropriation adjustment. Park Acquisition & Development Fund The residential development fee applies to any person adding net residential units or converting apartments to condominiums. The City may use the revenues for the acquisition, construction, and renovation of park and recreation facilities. • District 2 — The revenue generated in the current fiscal year exceeds the budget by $3.1 million. The requested appropriation adjustment will increase the available fund balance to support the recommended appropriations of $1 million for the Nature Center at Santiago Park. This project seeks to transform the interpretive hall into a dynamic space for the public to engage with the natural history of the creek, conservation action, habitat restoration, and the cultural history of the region. This project was previously funded through the Cannabis fund; however, staff recommends shifting the Cannabis allocation to the Memorial Park project. • District 3 — The revenue generated in the current fiscal year exceeds the budget by $1.6 million. The requested appropriation adjustment will increase the available fund balance to support the recommended appropriations of $1.6 million for the Memorial Park project.