Item 20 - Fiscal 2024-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes

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FY24-25 Mid-Year Budget Update, Appropriation Requests, and Workforce Changes March 4,2025 Page 9 4 8 6 7 programming will be placed on hold until an alternative funding source is identified. The Library is utilizing part-time vacancy savings from earlier in the fiscal year to absorb this reduction; there will be no impact on service levels. FMSA and the Police Department are both shifting these expenses to the General Fund, where the reductions will be absorbed within existing resources. PRCSA Fees and Donations Staff is adjusting the PRCSA revenue budget to align with expected revenues for this fiscal year. This revenue adjustment will also address the projected negative spendable fund balance at the end of the fiscal year. Gas Tax Fund The state collects the Gas Tax on a cents-per-gallon basis, allocating a portion to the City. When fuel prices increase, local street and road revenues remain unaffected by price change since all tax rates are based on a per-gallon basis, independent of price fluctuations. The most recent Gas Tax estimates from the League of California Cities Fiscal Policy Advisor indicate an increase of $928,180 for FY24-25, bringing the revised budgeted revenue to approximately $16.6 million. The Gas Tax Fund has an estimated spendable fund balance of $26.3 million as of June 30, 2025, far exceeding the City’s target reserve level of 20% of annual operating costs, which is $1.7 million. PWA staff will return with appropriation requests once specific projects have been identified to utilize this funding. Santa Ana Regional Transportation Center (SARTC) Capital Projects During the FY24-25 Carry Over process, the estimated spendable fund balance in the Regional Transportation Center Fund was sufficient to cover $1.77 million but the actual balance was short by $64,340. As a result, carryover amounts were adjusted to match the available balance as of June 30, 2024. The City’s target reserve level for this fund is $362,322, which represents 20% of annual operating costs. For FY24-25, the estimated spendable fund balance at June 30, 2025 is $584,905, which exceeds the target reserve level of $362,322. Accordingly, staff recommends an appropriation adjustment of $64,340 to fully restore funding for the following SARTC Capital Projects: $20,000 for the outdoor fountain renovation, $24,342 for exterior painting, and $20,000 for fencing. Civic Center Budget Increase The City has a Joint Powers Authority (JPA) Agreement with the County of Orange to pay for shared expenses related to the Civic Center area. These expenses include maintenance, security, and capital project funding. Since the County adopted its budget in late June after City Council approved the FY24-25 budget, a request for an appropriation adjustment is needed to align the budget with the County under the JPA agreement. With this adjustment, the Civic Center budget will increase by $907,600 in both revenues and expenditures to support various projects, including Civic Center and Courthouse concrete repairs, upgrades to Calsense Irrigation Controllers, waterproofing of the Plaza of the Sun, and the rehabilitation of Civic Center Drive from Shelton to Flower.