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: Ana Tenorio, Principal Management Analyst
April Maese, Management Analyst
Subject:
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Approve the Fiscal Year 2024/25 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) 2024/25.
Financial Impact:
Not applicable.
Recommended Action:
recommendation
Approve the Infrastructure Fund Annual Report for Fiscal Year 2024/25.
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Alternative Action(s):
Direct staff to revise the report and return 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 solely to infrastructure-related expenditures. “Infrastructure” is defined in the Charter as “long-lived capital assets that normally are stationary in nature and 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 primary revenue source for the fund is unassigned General Fund balance 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 funded through the General Fund were transitioned to the Infrastructure Fund, accompanied by General Fund transfer for project support.
Transfers in FY 2024/25 totaled $17,539,539 to fund infrastructure improvements and maintenance. Interest and market adjustments totaled $1,868,105. Other revenue of $24,949 included a reimbursement for the Orange County Sanitation District reimbursement related to the Zone 1 Residential Overlay and traffic signal maintenance for Beachmont Plaza. Total revenue was $19,432,593. Expenditures for the year totaled $19,848,413.56. The fund balance at year’s end (June 30, 2025) was $28,981,620. 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 May 20, 2026, meeting of the CIAB/Public Works Commission by a vote of 5-0-1 (Ghuman-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