CIAB/PUBLIC WORKS COMMISSION
REQUEST FOR ACTION
SUBMITTED TO: MEMBERS OF CIAB/PUBLIC WORKS COMMISSION
SUBMITTED BY: Chau Vu, Director of Public Works
PREPARED BY: Nancy Rodriguez, Mgmt Aide & Sarah Whitecotton, Acting Admin Svc Mgr
Subject:
title
Approve Infrastructure Fund Annual Report for Fiscal Year 2023/24
body
Statement of Issue:
The City Charter requires an annual review and performance audit of the Infrastructure Fund, and a report of the findings to the City Council. This provides audited information on Fiscal Year 2023/24.
Funding :
No funding is required for this action.
Recommended Action:
recommendation
Motion to recommend to City Council approval of the Infrastructure Fund Annual Report.
end
Alternative Action(s):
Direct staff to modify the Annual Report.
Analysis:
The Infrastructure Fund was established in 2002, by City Charter Section 617. Per Section 617 (a), the originally intended revenue source for the Infrastructure Fund was a planned utility use tax on natural gas purchased to generate electricity. However, this ballot measure failed. So, while the Charter amendment created the fund, it was left with no source of revenue.
Other Charter requirements related to the fund are:
• Revenue placed in the Infrastructure Fund shall not supplant existing infrastructure funding.
• General Fund expenditures for infrastructure improvements and maintenance, subsequent to 2001, shall not be reduced below 15% of general fund revenues based on a five-year rolling average.
• The Citizen’s Infrastructure Advisory Board/Public Works Commission conducts an annual review and performance audit of the Infrastructure Fund and reports its findings to the City Council prior to the City Council's adoption of the ensuing fiscal year budget.
The single substantial revenue source to the fund is General Fund excess fund balance per the Financial Policy adopted in Fiscal Year 2006/07. The Policy was revised beginning in Fiscal Year 2009/10 to allow for an Economic Uncertainties Reserve commitment. Excerpts addressing the Infrastructure Fund for the previous and current policies are shown in Attachment 1 along with Municipal Charter Section 617.
Revenue - FY 2023/24:
1. There were total General Fund transfers of $16,136,763 for capital improvements and equipment replacement in FY 2023/24
2. The fund was reimbursed $728,768 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.
3. Interest and market adjustments are paid in proportion to the citywide investments and fund balance. This amounted to $1,474,067 in FY 2023/24.
Total Revenue for FY 2023/24 was $18,339,598.
|
Revenue |
|
Revenue Item |
Actual |
|
Reimbursements and Adjustments |
$728,768 |
|
Interest and Market Adjustments |
$1,474,067 |
|
General Fund Transfers |
$16,136,763 |
|
Total Revenue |
$18,339,598 |
Expenditures - 2023/24:
Budgeted expenditures for FY 2023/24 consisted of new and carry forward projects and carry over encumbrances from 2022/23. Beginning in Fiscal Year 2022/23 a substantial amount of infrastructure related salaries and maintenance previously budgeted in the General Fund were moved to the Infrastructure fund in business unit 31485201. Where applicable, project sheets from the Capital Improvement Program (CIP) are included as Attachment 2. Total expenditures for the year were $22,340,495. Below is a detail of expenditures by business unit.
|
Expenditures |
|
Project |
Spent |
|
31440001 - Infrastructure Projects |
$41,076 |
|
31440002 - Infrastructure Central Park |
$60,900 |
|
31440003 - Infrastructure 20-21 |
$104,767 |
|
31440005 - Infrastructure Projects 21-22 |
$1,720,364 |
|
31440006 - Infrastructure Projects 22-23 |
$2,607,916 |
|
31440008 - Trash Removal - Phase II |
$62,964 |
|
31440009 - CC Hot Water Replacement |
$4,035 |
|
31440011 - Treasurer’s Office Remodel |
$102,307 |
|
31440017 - ADA Impr Prog Citywide |
$107,878 |
|
31440018 - PD Comm Ctr Remodel |
$21,735 |
|
31440019 - OVE Roadway/Driveway |
$256,957 |
|
31445003 - Main Promenade P.S. Imprv |
$158,202 |
|
31465001 - Well Abandonment |
$649,006 |
|
31485201 - Infrastructure Eng Design |
$5,279,768 |
|
31487004 - Police Facility Improvements |
$1,200,945 |
|
31488001 - Heil Pump Station |
$612,443 |
|
31490008 - Arterial Rehab 21-22 |
$1,593 |
|
31490010 - Bluff Top Park Improvement |
$2,550 |
|
31490012 - Oakview Comm Ctr |
$514,927 |
|
31490016 - Arterial Beautification |
$130,299 |
|
31490018 - Mobility and Corridor Imp |
$1,603,225 |
|
31490019 - FD/PF Youth Training Ctr |
$84,000 |
|
31490020 - Carr Park Improvements |
$60,547 |
|
31490021 - Garfield/Gothard Fiber Optics |
$159,708 |
|
31490022 - Residential Pavement |
$6,627,672 |
|
31490024 - Res Zone Maint 24-25 |
$131,837 |
|
31490025 - Downtown Specific Plan |
$32,875 |
|
|
|
|
Total |
$22,340,495 |
|
Fund Balance |
|
Fund Balance 7/1/23 |
$33,398,338 |
|
Revenue FY 2023/24 |
$18,339,598 |
|
Expenditures FY 2023/24 |
($22,340,495) |
|
Fund Balance 7/1/24 |
$29,397,441 |
|
Budgeted Revenue FY 2024/25 |
$17,539,539 |
|
Budgeted Expenditures FY 2024/25 |
($43,344,960) |
|
Budgeted Fund Balance 7/1/25 |
$3,592,020 |
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 <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. Financial Policies FY 06/07 and 09/10
2. Project Sheets
3. PowerPoint Presentation