Finance and Management Services
www.santa-ana.org/finance
Item # 8
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 1, 2024
TOPIC: Carryover of Unspent Amounts from FY 2023-24 to FY 2024-25
AGENDA TITLE
Appropriation Adjustment to Carryover Unspent Amounts From Fiscal Year 2023-24 to Fiscal Year 2024-25
RECOMMENDED ACTION
1. Approve an Appropriation Adjustment to reduce the FY 2023-24 budget for unspent amounts to be carried over to FY 2024-25. (Requires five affirmative votes)
2. Approve an Appropriation Adjustment to increase the FY 2024-25 budget for amounts carried forward from FY 2023-24. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
It is common for a City to budget for non-recurring (one-time) expenditures, such as construction projects, not yet completed when the fiscal year ended on June 30. When this happens, the City Council may approve the “carryover” of the unspent budget from one fiscal year to the next to provide resources necessary for project completion. Staff typically does not request carryover for recurring operating budget amounts because each annual budget already includes provisions for ongoing operational expenses, except for projects that have not yet begun.
The City Council adopts a budget one year at a time and the City’s Charter requires City Council approval for appropriation adjustments. Increasing the current year’s budget for unspent amounts carried over from the prior year constitutes an appropriation adjustment. The General Fund comprises $66.6 million of the total $442.7 million in carryover requests and the remainder is restricted funds. Budget staff reviewed and analyzed all requests to ensure there is sufficient unspent budget available for carryover.
The following is a summary of all the proposed carryovers from FY 2023-24 (FY 23-24) to FY 2024-25 (FY 24-25):
Carry-Over of Unspent Amounts from FY 2023-24 to FY 2024-25 October 1, 2024
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Staff has compiled a list of carryover requests (Exhibit 1). These include items such as multi-year capital/grant projects, delayed purchases due to vendor availability issues, and various one-time projects approved for FY 2023-24 that were not completed by the fiscal year end on June 30, 2024.
The most significant carryovers follow, which account for half of the total. •Safe Routes to Schools (Traffic Safety for School Children) $49.9M •Bristol Street Projects $37.8M
•Main & Newhope Library Renovations $34.5M
•Warner Avenue Improvements $30.7M
•Swimming Pool & Facilities at Memorial Park $28.5M
•Third & Broadway Development $13.0M
•Santa Anita Park Improvements $9.1M
•Centennial Park Improvements $8.5M
•Zoo Improvements $8.5M
See Exhibit 1 for detailed information regarding each of the requested carryover projects. This file lists the accounting unit, description, amount, project status, and estimated completion date.
Because the City’s legal level of budgetary compliance is by fund and department, the attached carryover lists include several negative amounts. These negative carryover amounts are accompanied by positive carryover amounts within the same fund and department. Essentially, these offsetting negative and positive amounts are being used to align the budget between various accounting units within a single department and fund to match remaining available resources such as grants.
Each amount on the list includes the amount available one month after the end of FY 23-24. Staff continued to pay FY 23-24 invoices through the end of August and will complete the reconciliation of accounts in October. The FY 23-24 ledger will not be final and closed until the financial statements have been audited in November. Therefore, the requested carryovers are “maximum” amounts. The actual amounts processed for carryover will be limited to the available budget once the FY 23-24 ledger is closed.
Carryovers are summarized by fund in Exhibit 2. Staff will update FY 2024-25 revenue estimates for reimbursement grants tied to carryover amounts (i.e. CDBG) to reflect reimbursement timing.
Carryover Type General Fund ARPA Restricted TotalCIP 42,408,082$ 53,450,290$ 275,306,449$ 371,164,821$ Equipment 4,862,756$ 513,970$ 7,216,104$ 12,592,830$ All Other 19,345,368$ 5,624,838$ 33,995,540$ 58,965,746$ Total 66,616,206$ 59,589,098$ 316,518,093$ 442,723,397$ Carry-Over of Unspent Amounts from FY 2023-24 to FY 2024-25 October 1, 2024
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ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
No fiscal impact is associated with the recommended actions to carry over unspent appropriations. Spending for previously authorized expenditures will occur in a later period, which only affects the timing of cash flow.
EXHIBIT(S)
1. List of Requests to Carryover Unspent Aappropriations
2. List of Requests to Carryover Unspent Appropriations by Fund Submitted By: Kathryn Downs, Finance and Management Services Agency Executive Director
Approved By: Alvaro Nuñez, City Manager