Item 13 - FY 2023-24 Third Quarter Budget Report and Proposed Appropriation

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FY 2023-24 Third Quarter Budget Report and Proposed Appropriation Adjustments June 4, 2024 Page 6 The FY 2023-24 budget included a carryover of $2.3 million from the unspent FY 2022-23 non -departmental set -aside for employee negotiations. Based on actual MOU requirements, we recommend a reduction of $1,275,600 for this appropriation, as the FY23-24 budget includes another non -departmental set - aside for employee negotiations. As previously reported on May 8, 2024, the estimated cost of $25,000 for the current fiscal year for Investment Management and Portfolio Services would be included with the third quarter report. Staff recommends an appropriation adjustment of $25,000, offset by an increase of revenue. Stores and Property Control Internal Service Fund Close -Out The Early Direction report on March 19, 2024 included staff's plan to close the Central Stores internal service fund by the end of the current fiscal year. The demand for Central Stores has declined over the years, due to just -in -time availability from vendors, placing the fund in a situation where it has become impossible to remain financially self- sufficient. Approximately 78% of the Central Stores inventory solely supports the Water Enterprise. The Central Stores remaining inventory and staffing that supports the Water Enterprise will be absorbed by that fund. Gas and diesel sales will transfer to the Corporate Yard, and all remaining Central Stores activity will be discontinued. After performing account reconciliation for the fund, staff recommends an appropriation adjustment of up to $850,000 to close the fund. Dog Park Appropriation Based on City Council direction from May 16, staff has developed a $4 million funding plan for the Dog Park. This plan will allow for future expansion as additional funding is identified. • As noted above, staff has identified expenditure savings from the Non - Departmental set -aside for labor negotiations. Staff recommends an appropriation adjustment of $1,000,000 to reallocate this budget from Non - Departmental to PWA. • The Community Development Agency (CDA) has $800,000 of available budget from money that has been carried forward for two consecutive fiscal years. Staff recommends an appropriation adjustment of $800,000 to reallocate this from CDA to PWA. • The Public Works Agency (PWA) has a carryover budget of $5.2 million for various maintenance projects at the Santa Ana Regional Transportation Center (SARTC). We expect PWA to utilize $3.4 million of this budget in the near term, leaving $1.8 million available. When the books are closed for the current fiscal year, staff may request City Council approval to replenish the SARTC maintenance project budget with any available expenditure savings. As this reallocation is within the PWA budget, no appropriation adjustment is necessary. • The Parkland Acquisition & Development Fund for District 4 (including Centennial Park) has an available balance of $400,000. Staff recommends an appropriation adjustment of $400,000 from the available balance.