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 11 CalHOME Proaram Fund In December 2025, the City Council accepted a $4.9 million grant award, including approximately $366,000 for salaries. Funds will only be available for reimbursement once the agreement is fully executed with the State of California. In the interim, a one- time use of fund balance for $19,695 allows one position to begin preparatory work for the Down -Payment Assistance program until the agreement is officially finalized. Emergency Housing Vouchers (EHV) Administrative Fee Fund This limited -duration federal program provides rental assistance through housing vouchers in partnership with local public housing authorities and service providers. As CDA enters the final year of the program, significant administrative effort is required to ensure an orderly, regulatory -compliant closeout. Accordingly, CDA requests recognition of $22,462 in service fee revenue and the corresponding $22,462 in expenses for administrative closeout costs. Additionally, CDA requests $68,727 from the remaining fund balance to cover the remaining administrative costs associated with program closeout activities. Local Drainage Area Funds Local Drainage Area Funds account for developer fees that may only be used to construct, operate, and maintain storm drainage and flood control facilities throughout the City. The City previously maintained thirteen separate local drainage areas. Several years ago, these areas were consolidated into six drainage areas to improve administrative efficiency and better align funding with current infrastructure needs. To formally close these legacy funds, PWA requests that any remaining balances estimated at $1.0 million be transferred to the corresponding new drainage area funds. Recreation & Community Services Fund The Recreation & Community Services Fund was established in connection with the City's License Agreement with the Rancho Santiago Community College District (College District) for an Adult Career Education Center at Centennial Park. The Agreement required the City to amend the land deed to permit uses beyond public park and recreational activities. The Fund was used to record costs associated with the land deed conversion, which were subsequently reimbursed by the College District. With the land deed conversion now complete, the Fund is no longer needed, and staff recommends that it be formally closed. To complete the closeout, the Parks, Recreation, and Community Services Agency (PRCSA) requests that the remaining fund balance of $6,306 be transferred to the Residential Development District 4 Fund, as the Fund's activity was primarily related to projects in District 4.