Finance and Management Services
www.santa-ana.gov/finance
Item # 10
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
October 6, 2026
TOPIC: Carryover of Unspent Amounts from FY2025-26 to FY2026-27
AGENDA TITLE
Appropriation Adjustments to Carryover Unspent Amounts from Fiscal Year 2025-26 to Fiscal Year 2026-27
RECOMMENDED ACTION
1. Approve an Appropriation Adjustment to reduce the FY2025-26 budget for unspent amounts carried forward to FY2026-27. (Requires five affirmative votes)
2. Approve an Appropriation Adjustment to increase the FY2026-27 budget for amounts carried forward from FY2025-26. (Requires five affirmative votes) GOVERNMENT CODE §84308 APPLIES: No
DISCUSSION
The City may budget for one-time expenditures, such as capital improvement projects, grant-funded projects, and major equipment purchases, that are not completed by the end of the fiscal year on June 30. In such cases, the City Council may approve carrying over unspent appropriations into the new fiscal year so the funding remains available to complete the previously approved project or purchase.
Carryovers are typically limited to one-time expenditures. Routine operating costs, such as salaries, utilities, and supplies, are budgeted annually and are not carried forward.
Most of the City's carryover requests relate to capital improvement and grant-funded projects because these activities often span multiple fiscal years and are subject to construction schedules, grant requirements, or other delays.
The City Charter requires City Council approval for budget adjustments. Accordingly, carryover of prior-year appropriations into the new fiscal year requires formal City Council approval. For FY2026-27, the total recommended carryover is $367.1 million, including $44.5 million from the General Fund, with the remainder from restricted funds.
City staff reviewed the carryover requests to confirm that sufficient unspent budget authority is available. Because the City's legal level of budgetary compliance is at the fund Carryover of Unspent Amounts from FY2025-26 to FY2026-27 October 6, 2026
and department levels, the attached lists include several negative amounts. These offsetting negative amounts realign the budget within a single department and fund to reflect remaining available resources. As a result, a negative amount for an individual accounting unit does not necessarily represent a reduction in the overall department or fund budget, but rather an internal budget realignment.
Exhibit 1 provides details for each request, including the accounting unit, description, amount, project status, and estimated completion date (when available). Exhibit 2 summarizes the recommended carryovers by fund.
The following summarizes all proposed carryovers from FY2025-26 to FY2026-27.
The largest carryover projects remain Capital Improvement Program (CIP) projects, which account for 87% of all carryover funds. The most notable CIP projects include the following:
1. Safe Routes to School (SRTS) Projects Citywide: $31 million
2. Various Warner Avenue Improvements: $29.9 million
3. Various Bristol Street Improvements: $33.6 million
4. Various Fairview Avenue Improvements: $15.5 million
5. Industrial Street Repairs: $14.6 million
6. Various Raitt Street Improvements: $12.1 million
7. Various Grand Avenue Improvements: $10.5 million
8. Various MacArthur Blvd. Projects: $9.7 million
9. Various First Street Projects: $10 million
10.Various McFadden Avenue Improvements: $8.5 million
11.Memorial Aquatic Facility: $8.3 million
Carryover amounts are based on the available budget after the close of FY2025-26.
Because year-end invoices and reconciliations continue after June 30, final carryover amounts may change. Staff continued processing FY2025-26 invoices through August, with final reconciliations scheduled for October and November. The FY2025-26 financial records will be finalized after the annual audit. Actual carryovers will be limited to the budget remaining when the prior fiscal year is officially closed.
ENVIRONMENTAL IMPACT
This action has no environmental impact.
Carryover Type General Fund Restricted Total
CIP $ 36,705,239 $ 282,810,508 $ 319,515,747
Equipment $ 3,397,060 $ 6,701,266 $ 10,098,326
All Other $ 4,415,502 $ 33,113,677 $ 37,529,179
Total $ 44,517,801 $ 322,625,451 $ 367,143,252
Carryover of Unspent Amounts from FY2025-26 to FY2026-27 October 6, 2026
FISCAL IMPACT
The recommended actions to carry over unspent appropriations have no fiscal impact.
Spending for previously unauthorized expenditures will occur throughout the fiscal year and will only affect the timing of cash flow.
EXHIBIT(S)
1. Lists of Requests to Carryover Unspent Appropriations
2. List of Requests to Carryover Unspent Appropriations by Fund Submitted By: Alexander Trinidad, Executive Director, Finance and Management Services
Approved By: Alvaro Nuñez, City Manager