Title
Staff Report for 2022-23 Budget Amendment for 2021-22 Year-End, One-Time Appropriation of Surplus Funds for the General Fund, Special Revenue Funds, Capital Improvement Projects Fund, and Fiduciary Fund
Staffreport
SUMMARY AND RECOMMENDATIONS
Staff recommends the Finance Committee review and recommend the City Council approve the 2021-22 year-end, one-time appropriation of surplus (revenue exceeding expenditures) funds.
BACKGROUND
The City Council approves annual budgets based on the best revenue and expenditure information available several months prior to the adoption of budget appropriation. The City Council initially approved the 2022-23 budget on June 28, 2021. As a result, budget adjustments are periodically necessary for circumstances that arise and require additional budget appropriations. The City Council has approved various budget amendments since 2021.
ANALYSIS
Subject to finalizing the annual audit, the City estimates a 2021-22 General Fund surplus- revenue exceeding expenditures- of $11,945,000. These funds result from stronger-than-projected revenues and controlled expenditures across multiple departments. Sales Tax and Property Transfer Tax revenues alone exceeded estimates by $5,700,000 and total 2021-22 expenditures were $1,800,000 less than projections. Staff recommends a 2022-23 budget amendment appropriating a total of $11,945,000 of one-time funds. General Fund transfers from Fund Balance would be appropriated as follows.
Long-Term Navigation Center
Staff proposes appropriating $3,200,000 in the Long-Term Navigation Center (190-63-824) account related to the anticipated acquisition of the Nimitz Motel site. Community Development staff is currently showing this gap after leveraging existing federal, state, and local affordable housing/homeless funds. The City will re-apply to California Project Homekey in spring 2023 for acquiring and renovating the motel into an interim navigation center/shelter and then to long-term...
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