FY 2023-24 BASE BUDGET
REVENUE ADJUSTMENT FORM
PROGRAM: General Ledger Account – Fund-Dept/Organization/Program-Object Code REQUEST TITLE: Reprioritizing a portion of Excess Educational Revenue Augmentation Funding (ERAF) toward funding for affordable housing
Request Summary
Reprioritize a portion of Excess ERAF toward funding for affordable housing. Excess ERAF revenues are not considered a stable ongoing source of annual revenue and is therefore allocated as one-time funding every year as follows.
• $83,000 toward the Pacifica Resource Center
• $5,000 toward the Pacific Beach Coalition
• Remaining balance is deposited in the Disaster Accounting Fund (Fund 38) per previously approved Council policy
Occasionally a share of Excess ERAF has been allocated toward other critical capital projects, such as the Civic Center project last year.
Due to the Council's emphasis on Affordable Housing in the recently adopted new Strategic Plan, the City Manager recommends splitting the balance remaining after the community grants allocation to the NGOs, between Fund 38 and the Housing In-lieu fund to start accruing fund balance for future potential affordable housing projects. The Remaining Excess ERAF Revenues are budgeted at $3,345,500 million in FY2023- 24, therefore 50% of it or $1,673,750 would go into the Affordable Housing Fund, while the remaining 50% or $1,673,750 will continue replenishing the Disaster Accounting Fund 38.
Factors Driving the Request for Change (section to be completed for additions only) With the increase of Housing demands and state regulations and requirements for the City and the overwhelming need for Affordable Housing, this ongoing policy change related to Excess ERAF allocation will position the City to better address the community’s housing needs and update the Housing Element as needed.
Alternatives
N/A
Cost Summary
$1,673,750 of ERAF funds deposited in the Housing In-Lieu Fund (24) Line Item Description Fund Dep/Org Number Object Code Total Amount Revenue (list detail description below)
Housing In-Lieu Fund 24 TBD 1,673,750
Total Revenue $ 1,673,750.00
Offsetting Expenses (Enter as a negative
number. If none, leave blank.)
Net Revenue Adjustment $ 1,673,750.00
Priority Tracking Council Strategic Goal
Department Priority 1 Organizational and Fiscal Stability ☐ City Manager Priority 6 Stewardship of City Infrastructure ☐ Affordable Housing ☒
Council Accepted Climate Change Adaptation and Mitigation ☐ Council Rejected Public Communication and Collaboration ☐ ☐ On-going (Annual) ☒ One-time