REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Sarah Whitecotton, Principal Management Analyst Nancy Rodriguez, Management Aide
Subject:
title
Approve the Fiscal Year 2023/24 Infrastructure Fund Annual Report
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Statement of Issue:
The City Charter requires an annual review and performance audit of the Infrastructure Fund, and a report on the findings to the City Council. This review addresses Fiscal Year (FY) 2023/24.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
Approve the Infrastructure Fund Annual Report for Fiscal Year 2023/24.
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Alternative Action(s):
Instruct staff to make revisions and resubmit at a later date.
Analysis:
The Infrastructure Fund was established in 2002 by City Charter Section 617(c), which states that the City Council must establish the Citizens Infrastructure Advisory Board (CIAB) to conduct an annual review and performance audit of the Infrastructure Fund and report its findings to the City Council.
Per the City Charter, the Infrastructure Fund is designated for the sole purpose of infrastructure expenditures. “Infrastructure” is defined in the Charter as “long-lived capital assets that normally are stationary in nature and normally can be preserved for significantly greater number of years. They include storm drains, storm water pump stations, alleys, streets, highways, curbs and gutters, sidewalks, bridges, street trees, landscaped medians, parks, beach facilities, playgrounds, traffic signals, streetlights, block walls along arterial highways, and all public buildings and public ways.”
Infrastructure expenditures are defined as “direct costs related to infrastructure improvements or maintenance, including construction, design, engineering, project management, inspection, contract administration and property acquisition.”
The single substantial revenue source to the fund is unassigned fund balance in the General Fund per the Financial Policy adopted in FY 2006/07 and revised in FY 2009/10. The policy states that 50% of the unassigned fund balance will be allocated to the General Fund Pension Stabilization Reserve, of which 25% is assigned to the Economic Uncertainties Reserve, 12.5% to the Infrastructure Fund, and 12.5% to the Capital Improvement Reserve.
Beginning in FY 2017/18, Capital Improvement Program (CIP) projects previously budgeted in the General Fund were instead budgeted in the Infrastructure Fund with an accompanying General Fund transfer.
Transfers in FY 2023/24 totaled $16,136,763 to fund infrastructure improvements and maintenance. Interest and market adjustments totaled $1,474,067. Other revenue of $728,768 included a reimbursement for CalRecycle Grant TRP14-21-12/2F rubberized pavement, traffic signal maintenance at Beachmont Plaza per a development agreement, along with 22/23 Surf City “3” Cable PEG funds adjustments for expenditures between the PEG, Energy Efficiency, and Infrastructure Funds. Total revenue was $18,339,598. Expenditures for the year totaled $22,340,495. The fund balance at year’s end (June 30, 2024) was $29,397,441. Additional details are available in the Infrastructure Fund Annual Report (Attachment 1).
CIAB/Public Works Commission Action: The Annual Infrastructure Fund Report was recommended for City Council consideration at the June 4, 2025, meeting of the CIAB/Public Works Commission by a vote of 4-2-0 (Rivas and Michalski absent).
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Non Applicable - Administrative Item
For details, visit www.huntingtonbeachca.gov/strategicplan
Attachment(s):
1. Infrastructure Fund Annual Report
2. PowerPoint Presentation