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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF FINANCE
DATE: DECEMBER 5, 2023
FROM: FINANCE DEPARTMENT
SUBJECT: AMENDMENT TO THE FY 2022/23 BUDGET
ATTACHMENT (Y/N): NO ITEM # 06
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion, amend the FY 2022/23 Budget by increasing appropriations in the City Administration Department by $3,400,000 for costs associated with the independent investigation and the provision of homeless shelter services.
DISCUSSION:
When the current year budget was adopted, it included projections for closing FY 2022/23, including estimates for shelter services in the City Administration Department. Higher shelter costs were not anticipated when the budget was prepared, and ultimately, expenses exceeded the adopted budget by $2.5M. Of this amount, $1.8M was offset by increased HHAP (Homeless Housing Assistance Program) grant revenues. The shelter is operating at an average nightly occupancy of 97% (up from the previous daily average of 92% to 95%).
The increased occupancy brings additional security needs and increased costs for goods and services, most notably food and labor. The remaining increase of approximately $0.9M was related to the independent investigation produced by the JL Group and was included in the year-end budget projections.
IMPACT ON BUDGET:
This action will increase the City Administration Department’s FY 2022/23 General Fund budget by $3,400,000. The increase reflects a technical clean-up to align expenditures with the adopted budget. There is no impact on the FY 2023/24 budget.
Respectfully submitted,
Deborah A. Moreno
Finance Director/City Treasurer