Item 07 - Carryover of Unspent Amounts from FY2024-25 to FY2025-26

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Finance and Management Services www.santa-ana.org/finance Item # 7 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report October 7, 2025 TOPIC: Carryover of Unspent Amounts from FY2024-25 to FY2025-26 AGENDA TITLE Appropriation Adjustments to Carryover Unspent Amounts from Fiscal Year 2024-25 to Fiscal Year 2025-26 RECOMMENDED ACTION 1. Approve an Appropriation Adjustment to reduce the FY2024-25 budget for unspent amounts carried forward to FY2025-26. (Requires five affirmative votes) 2. Approve an Appropriation Adjustment to increase the FY2025-26 budget for amounts carried forward from FY2024-25. (Requires five affirmative votes) GOVERNMENT CODE 484308 APPLIES: No DISCUSSION Cities often budget for one-time expenditures, such as capital improvement projects or major equipment purchases, that may not be completed by the end of the fiscal year on June 30. In these cases, the City Council may approve the "carryover" of unspent budget appropriations into the new fiscal year so funding remains available until the project is finished. Carryovers are generally limited to one-time items. Routine operating expenses such as salaries, utilities, and supplies are budgeted each year and are not carried forward. If funding was approved for a specific project or program and work has not started by year- end, staff may request to carry that funding into the next fiscal year. The City Charter requires Council approval for any budget adjustments. Carrying forward prior year appropriations into the current year qualifies as such an adjustment and must be formally approved by the City Council. For FY2025-26 (FY25-26), the total recommended carryover is $398.59 million, including $68.25 million from the General Fund and the remainder from restricted funds. Budget staff has reviewed each request to confirm that sufficient unspent budget authority is available to support the proposed carryovers.