Library
www.santa-ana.gov/library
Item # 9
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
September 15, 2026
TOPIC: California State Library Building Forward Grant Interest Revenues
AGENDA TITLE
Appropriation Adjustment for Spendable Fund Balance from California State Library Building Forward Grant Interest Revenues for Main Library and Newhope Library Projects (Project Nos. 22-1380 and 22-1802) (Non-General Fund)
RECOMMENDED ACTION
Approve an appropriation adjustment recognizing $297,104 in spendable fund balance from California State Library Building Forward Grant Interest for Main Library and Newhope Library Projects in the Public Library Grant, Prior Year Carryforward revenue account and appropriate the funds into the Building Forward Library Grant, Buildings & Building Improvements expenditure account to fund construction expenses. (Requires five affirmative votes)
GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
On March 15, 2022, the City Council approved Resolution No. 2022-020, authorizing the submission of a California State Library Building Forward Library Facilities Improvement Program Grant application for the Main Library Transformation Project and subsequent acceptance of grant funds. The Library was awarded $9,329,973 in grant funds for critical maintenance needs and public safety and accessibility improvements such as Americans with Disabilities Act (ADA) upgrades, new accessible elevator, marble improvements, Heating, Ventilation and Air Conditioning (HVAC) replacement, and electrical, mechanical, and plumbing system upgrades.
Similarly, on November 7, 2023, the City Council approved Resolution No. 2023-074, authorizing the submission of a California State Library Building Forward Grant application for the Newhope Library Renovation Project and subsequent acceptance of grant funds. The Library was awarded $1,086,754 in grant funds for critical infrastructure improvements including HVAC replacement, electrical upgrades, plumbing updates, fire protection system improvements, and new storefronts.
California State Library Building Forward Grant Interest Revenues September 15, 2026
5 9
6 5
Both grant agreements require that any interest earned on the grant funds held by the grantee be contributed to the projects. As of July 31, 2026, the Main Library grant earned $245,470 in interest, while the Newhope Library grant earned $18,634.
Additionally, the estimated earned interest on the grant funds from August 2026 through grant closeout in October 2026 is $33,000, bringing the total interest earned to $297,104.
Grant funds for the Main Library (received February 2023) and Newhope Library (received February 2024) were deposited during early design phases and well ahead of construction commencement in August 2024 and July 2025, which respectively allowed interest to accumulate on the allocations. Additionally, the Library prioritized spending American Rescue Plan Act (ARPA) funding for both projects before spending grant funds, which further contributed to the available interest balances.
The Library intends to use the interest revenue to offset construction costs for both projects. Utilizing the interest funds will result in cost savings and preservation of local General Fund and Cannabis funds for other Library needs.
ENVIRONMENTAL IMPACT
There is no environmental impact associated with this action.
FISCAL IMPACT
With approval of the recommended appropriation adjustment in the amount of $297,104, the current available spendable fund balance of $264,104 as of July 31, 2026 as well as the estimated earned interest of $33,000 from August 2026-October 2026 will be appropriated for spending in the Building Forward Library Grant, Buildings & Building Improvements expenditure account (15211154-66200). However, total expenditures will not exceed the actual interest earned through grant closeout. Any remaining balances not expended by the end of the fiscal year will be presented to City Council for approval of carryovers to Fiscal Year 2027-28.
Fiscal
Year
Accounting Unit-
Account #
Fund
Description
AU,
Account Description Amount
FY 26-27 15211154-66200
(Proj #22-1380)
Public
Library
Grant Fund
Building Forward
Library Grant –
Buildings & Building
Improvements
$276,142
FY 26-27 15211154-66200
(Proj #22-1802)
Public
Library
Grant Fund
Building Forward
Library Grant –
Buildings & Building
Improvements
$20,962
TOTAL $297,104
California State Library Building Forward Grant Interest Revenues September 15, 2026
5 9
6 5
Submitted By: Brian Sternberg, Executive Director of Library Services Approved By: Alvaro Nuñez, City Manager