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 6 A summary of Memorial Park project funding follows: Existing Requested Total Project Fund Appropriations Appropriations Funding 011- General Fund $ - $ 10,000,000 $ 10,000,000 012- Cannabis Public Benefit Fund $ 1,000,000 $ 2,260,000 $ 3,260,000 181- ARPA $ 6,425,327 $ - $ 6,425,327 313- Residential Development District 3 $ 8,440,095 $ 1,600,000 $ 10,040,095 Totalsl 15,865,422 1 13,860,000 1 29,725,422 Gas Tax Fund The state imposes Gas Tax on a cents -per -gallon basis with a portion allocated to the City. It is not a percentage of sales. The City's Gas Tax revenue decreases when consumption decreases. The most recent Gas Tax estimates from the League of California Cities Fiscal Policy Advisor indicate the City's share will approximate $15.8 million. The FY 2023-24 budgeted revenue estimate was $16.5 million, based on previous League information, which supports decreasing the revenue estimate by $665,888. The Gas Tax fund has an estimated fund balance of approximately $2.4 million, which is sufficient to absorb this revenue reduction. Therefore, no adjustments are recommended for expenditures; however, staff expects to address future spending allocations for this decreasing revenue source during the FY 2024-25 budget process. Fire Facilities Fund The Fire Facilities fee applies to construction projects over two stories in height. The City may use the revenue to pay for equipment necessary to fight fires in structures that are over two stories and to improve fire stations in the city as necessary to accommodate such equipment. The revenue generated in the current fiscal year exceeds the budget by $745,270. The requested appropriation adjustments will increase the available fund balance to support recommended appropriations of $1,788,868 for projects identified by Orange County Fire Authority (OCFA) staff. These projects include the removal of an underground tank, electric gate replacements, and exterior fence installation at five fire stations across the City. Restricted Fund Adiustments The City receives updated information after the beginning of the fiscal year for various restricted funding sources, usually to update federal monies available for various programs. Staff recommends a series of adjustments to resize restricted -money appropriations to available balances and authorizations. Examples include federal allocations to Community Development programs.