City Council

9C. APPROVE THE BUDGET ADJUSTMENTS PROPOSED FOR THE MID-YEAR\nBUDGET UPDATE FOR FISCAL YEAR 2023/24\nDuring the course of the fiscal year, it is often necessary to adjust estimated revenues\nand expenditure appropriations in various program areas, projects, and funds. Revenue\nfor all City funds is increasing by $4.2 million and expenditures for all City funds is\nincreasing by $4.6 million. Nearly half of the revenue increase, $1.7 million, is to adjust\ninvestment income due to increased interest earned from the City’s investment portfolio.\nIn Fiscal Year 2022/23, the City earned over $1.7 million in interest income. This trend\nhas continued through the first half of the current fiscal year. All of the proposed\nchanges to the Fiscal Year 2023/24 Adopted Operating Budget, including detailed\nexplanations, are presented in Attachment A.\nGeneral Fund revenue is increasing by $2.1 million, and expenditures are decreasing by\n$748,425 resulting in a net increase in fund balance of $2.9 million, which will increase\nthe General Fund’s available fund balance to a revised projected amount of $35.8\nmillion by June 30, 2024.\nHousing Authority revenue is increasing by $280,000, primarily due to interest income\nas previously discussed. Housing Authority expenditures are increasing by $4.3 million,\nprimarily for relocation services for residents of the Tina Pacific affordable housing\nproject.\nRECOMMENDED ACTION:\n1. City Council find that this item is not subject to California Environmental Quality Act\n(“CEQA”) pursuant to Sections 15378(b)(5) (Organizational or administrative\nactivities of governments that will not result in direct or indirect physical changes in\nthe environment); and\n2. City Council approve the budget adjustments summarized in Attachment A.\nFebruary 27, 2024