CITY COUNCIL REGULAR MEETING AGENDA PACKET

Page 2 of 15 performed a more comprehensive analysis of each capital fund’s condition, in terms of budgeted versus actual revenues collected, to reassess and recommend changes to the budget for projects, as needed, by adjusting carryforward amounts to ensure there is an adequate fund balance in each fund. For example, in the Facilities Impact Fee and Traffic Impact Fee Funds, actual fees collected in recent years were less than budgeted to a point where actual project expenditure budget had to be reduced or removed altogether. At the March 19, 2024, City Council meeting, staff presented a list of recommended adjustments to either reduce or cancel previously budgeted projects at the year-end to free up capacity to fund time-sensitive, critical projects to address safety issues resulting from storm damage; these adjustments are reflected in the FY 2024/25 carryforwards (as shown in Table 1 below, and in Tables 3-9 for each of the project categories). Specifically, staff recommends a total of approximately $23.4 million reduced carryforwards. These include approximately $17.9 million in reductions proposed at the March 19, 2024, meeting, with the largest project reductions consisting of $5.6 million for the skatepark project in the Parks category, $4.0 million for the Century House Facility Assessment project, and $0.8 million for the new Fire Station 3 project in the Facilities category, as well as $2.4 million for the Westbound Bernal Avenue at First Street project in the Transportation and Streets category. Other reductions include $4.1 million in projects funded with impact fees. Revenues from these impact fees have been significantly below estimates, which necessitated project budget reductions, with the largest project budget reductions consisting of $2.2 million for the Police Department Training Facility project and $0.4 million for the Design of Emergency Operations Center at the Fire Training Facility. Additionally, actual Gas Tax revenues came in slightly below estimates provided by the California Local Government Finance Almanac and necessitated a reduction of approximately $0.5 million for the 2nd Bridge Bernal/Laguna project in the Transportation and Streets category. Based on the FY 2023/24 actual expenditures for each project as well as estimated balances for each fund, this report includes the final carryforward recommendations for the City Council’s approval. Table 1 summarizes the actual expenditures to the amended budget for the fiscal year and identifies the carryforward by CIP project category Table 1 – Summary of CIP Carryforwards by Project Category There are two main funding types: Restricted and Non-Restricted Funds. Page 259 of 658