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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 13 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />December 17, 2024 <br />TOPIC: Fiscal Year 2023-2024 General Fund Results <br />AGENDA TITLE <br />Fiscal Year 2023-24 General Fund Results <br />RECOMMENDED ACTION <br />1. Receive and file this informational report. <br />2. Approve proposed General Fund appropriation adjustments as detailed in <br />Exhibit 1 (Requires two-thirds vote). <br />GOVERNMENT CODE §84308 APPLIES: No <br />DISCUSSION <br />The City's independent auditors have completed their fieldwork for the fiscal year <br />ending June 30, 2024, and the City anticipates issuing its financial statements later in <br />December 2024. Staff intends to present the City Council with an informational report <br />detailing the audited financial statements and related findings after the new year. <br />This report provides early information on General Fund performance for FY 2023-24 <br />(FY23-24) and includes requests for multiple appropriation adjustments, as well as the <br />formal closure of the Engineering Services Fund. If the City Council approves the <br />recommendations in this report, the remaining spendable General Fund balance in <br />excess of the 18% Reserve requirement is $16.3 million, which is available for one-time <br />spending. Staff recommends leaving that amount in the General Fund balance for <br />consideration during the FY2025-26 annual budget process that starts with "Early <br />Direction" from the City Council scheduled for March 18, 2025. The City has a <br />significant list of unfunded capital improvement projects, including future Civic Center <br />development, and staff recommends an approach where all competing needs are <br />identified prior to the City Council providing direction for use of the one-time funding <br />source. <br />On November 19, staff reported that for FY23-24, the City realized both revenues <br />exceeding initial estimates and expenditure savings. General Fund revenues exceeded <br />estimates by $13.5 million, after adjusting for non -cash items such as fair market value <br />adjustments and year-end entries. This represents a 3% increase over the adjusted <br />