Item 09 - Fiscal Year 2022-23 General Fund Results

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Finance and Management Services www.santa-ana.org/finance Item # 9 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report December 19, 2023 TOPIC: Fiscal Year 2022-23 General Fund Results AGENDA TITLE Fiscal Year 2022-23 General Fund Results RECOMMENDED ACTION 1. Receive and file this informational report. 2. Approve proposed General Fund appropriation adjustment of $350,000 for non-departmental litigation. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The independent auditors have completed their fieldwork for the fiscal year ended June 30, 2023 and the City expects to issue its financial statements in December 2023. Staff plans to provide the City Council with an informational staff report covering the audited financial statements and related reports after the New Year. The purpose of this report is to provide early information regarding General Fund performance in FY 2022-23 and to request two appropriation adjustments. On November 7, staff reported that for FY 2022-23, the City received revenue in excess of estimates and had expenditure savings; and in December, staff would be able to identify the increase of the General Fund balance available for one-time spending, based on the positive FY 2022-23 variances. FY 2022-23 General Fund Results These positive variances have resulted in an estimated spendable General Fund balance of $17.8 million. The spendable amount is in excess of the 18% General Fund Reserve balance of $72.1 million. Although many of our General Fund revenues exceeded the conservative estimates and all departments had expenditure savings, the most significant contributors to the $17.8 million spendable balance follow. •Rising interest rates leading to increased investment income of more than $1 million in excess of the adjusted budget of $5 million as presented with the Third Quarter Report on May 16, 2023.