Item 10 - Fiscal Year 2025-26 First Quarter Budget Update and Proposed Appropriation Adjusments

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FY 2025-26 First Quarter Budget Update and Proposed Appropriation Adjustments December 2, 2025 Page 5 5 4 5 4 budget will be moved from the contributing departments to the Community Assistance Fund – Contract Services (01113231-62300), which was recently established to track program expenses. Overview of Restricted Fund Adjustments Grates for the Dyer Stormwater Channel (Fund 057) The Clean Water Act authorized the National Pollutant Discharge Elimination System (NPDES), which regulates the discharge of pollutants into U.S. waters. Cities, such as Santa Ana, that operate stormwater systems and/or wastewater treatment facilities often have NPDES permit programs and are therefore allowed to dedicate permit revenue to activities that directly support compliance with NPDES requirements. One eligible use of these funds is capital improvements that construct or upgrade storm drain infrastructure to reduce pollutants and improve water quality. The proposed project will install steel barriers over the Dyer Stormwater Channel at the point where it runs underneath Dyer Road. This location has experienced repeated trespassing and encampments, resulting in the accumulation of trash and debris in the channel. The installation of the steel barriers will prevent unauthorized access, enhance public safety, and support compliance with NPDES requirements by reducing the amount of solid waste entering the stormwater system. Staff is requesting to appropriate NPDES (Fund 057) fund balance in the amount of $200,000. Workforce Innovation Fund Increased Allocation (Fund 123) The Workforce Innovation and Opportunity Act (WIOA) serves adults, youth, and individuals with disabilities while promoting coordination among workforce development, education, and economic development initiatives. California’s Employment Development Department (EDD) released final WIOA fund allocations late in the budget process, leaving insufficient time for staff to make necessary adjustments. For FY25-26, the City received an increase to the federal WIOA formula allocation. To align the budget with the actual award amount, staff is recommending recognizing $445,785 in revenue and appropriating the same amount in expenditures. Further detail is provided in Exhibit 1. Home Program Federal Grant (Fund 130) The HOME Investment Partnerships is a federal block grant that provides funding to states and local governments to develop and preserve affordable housing for low-income households. The Federal Government did not release FY25-26 award amounts until late in the budget process, leaving insufficient time for staff to make necessary adjustments. To align the budget with the actual award amount, staff is recommending a $25,008 decrease in revenues and an $678,202 increase in expenditures. Further detail is provided in Exhibit 1. The revenue adjustment aligns the budget with the award, while the expenditure adjustment corrects costs that were inadvertently omitted during budget development.