Item 20 - Proposed Fiscal Year 2025-26 Mid-Year Budget Update

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Proposed Fiscal Year 25-26 Mid -Year Budget Update, Appropriation Requests, Workforce Changes, and Capital Improvement Program Amendment March 3, 2026 Page 10 appropriation adjustment of $499,117 aligns the WIOA program budget with the remaining available funds. It ensures the City can fully utilize the grant through its allowable period, which extends through June 30, 2026. HOME Proaram Fund The HOME Program aims to create and maintain affordable housing for low-income households. The HOME Program fund covers the program's administrative allowance (overhead). Because the FY25-26 award amounts were not released until the final stages of the budget development process, prior -year funding levels were used to estimate projected revenue and expenditures. With the final award amount now issued, CDA requests a $278,756 reduction in both revenues and expenditures to align the budget with the actual allocation. Community Development Block Grant (CDBG)/Emergency Solutions Grant Fund (ESG) The Community Development Block Grant (CDBG) / Emergency Solutions Grant (ESG) Fund accounts for federal grant revenues and expenditures that support housing, assistance for the unhoused, public services, and community development activities that primarily benefit low- and moderate -income residents in the City of Santa Ana. CDA requests recognition of $273,132 in unspent prior -year program income and the appropriation of the same amount in the expenditure budget. This adjustment aligns the FY25-26 budget with the actual award amount. Housing Authority- Housing Assistance Fund The Family Self -Sufficiency (FSS) program helps low-income families achieve economic independence through education, job training, and financial incentives. Previously, all FSS expenditures were budgeted and recorded in the Housing Authority- Voucher Fund. To meet new financial reporting requirements, revenues and expenditures will now be allocated across the appropriate funds based on each participant's associated program. To align budgets with approved program funding and federal accounting requirements, CDA requests a $35,000 decrease in both revenue and expenditures in the Housing Authority -Voucher Fund, a $15,000 increase in both revenue and expenditures in the Housing Authority -Non -Elderly Disabled Fund, and a $20,000 increase in both revenue and expenditures in the Emergency Housing Vouchers HAP Fund. This adjustment has no net fiscal impact. Housing Authority- Housing Assistance Fund CDA recently received City Council direction to strengthen oversight and monitoring of City -supported Permanent Supportive Housing communities. CDA requests the use of $200,000 in fund balance to cover the Police Department's overtime costs for enhanced monitoring activities.