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: April Maese, Management Analyst & Ana Tenorio, Principal Management Analyst
Subject:
title
Approve Infrastructure Fund Annual Report for Fiscal Year 2024/2025
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 2024/25.
Financial Impact:
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 2024/25:
1. There were total General Fund transfers of $17,539,539 for capital improvements and equipment
replacement in FY 2024/25
2. The fund was reimbursed $24,949 for the Orange County Sanitation District reimbursement related to the Zone 1 Residential Overlay and the Beachmont Plaza Signal (FY 24/25).
3. Interest and market adjustments are paid in proportion to the citywide investments and fund
balance. This amounted to $1,868,105 in FY 2024/25.
Total Revenue for FY 2024/25 was $19,432,593.
|
Revenue Item |
Actual |
|
Reimbursements and Adjustments |
$24,949 |
|
Interest and Market Adjustments |
$1,868,105 |
|
General Fund Transfers |
$17,539,539 |
|
Total Revenue |
$19,432,593 |
Expenditures - 2024/25:
Budgeted expenditures for FY 2024/25 consisted of new and carry forward projects and carry over
encumbrances from 2023/24. Beginning in Fiscal Year 2023/24 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 $19,848,414. Below is a detail of expenditures by business unit.
|
Project |
Expenditures |
|
31440001 - Infrastructure Projects 17-18 |
$97,846.81 |
|
31440003 - Infrastructure Projects 20-21 |
$16,766.88 |
|
31440005 - Infrastructure Projects 21-22 |
$564,249.60 |
|
31440006 - Infrastructure Projects 22-23 |
$115,351.84 |
|
31440008 - Trash Removal |
$15,610.50 |
|
31440009 - CC Hot Water Replacement |
$19,007.95 |
|
31440011 - Treasurer's Office Remodel |
$6,858.72 |
|
31440016 - Bella Terra PD Fiber |
$28,900.00 |
|
31440017 - ADA Improvement Program Citywide |
$261,513.97 |
|
31440018 - PD Comm Ctr Remodel |
$119,357.03 |
|
31440019 - OVE Roadway/Driveway |
($10,040.89) |
|
31440020 - Lake Fs Fueling Station Canopy |
$162,343.30 |
|
31440021 - Tide Check Valve |
$36,014.64 |
|
31440023 - Newland House Museum Rehab |
$3,050.40 |
|
31440024 - Park Bench Roof and Siding |
$1,295.60 |
|
31440025 - Main St Library HVAC |
$59,850.00 |
|
31440026 - Central Plant Cooling Tower CC |
$768,000.00 |
|
31440028 - Facilities Master Plan |
$150,640.00 |
|
31440029 - R22 Air Conditioning Replacement |
$112,892.67 |
|
31440030 - All-inclusive Playground Repla |
$133,352.95 |
|
31440034 - PCH/6th Pedestrian Ramp |
$65,000.00 |
|
31440035 - Harbour Bulkhead Improvement |
$34,512.57 |
|
31440036 - Blufftop Pathway Area Lighting |
$31,125.00 |
|
31440040 - Central Library Electrical |
$206,266.30 |
|
31440042 - LeBard Park Improvements |
$20,672.84 |
|
31440044 - Central Library Fountain |
$775,729.96 |
|
31440046 - Shroeder Phase II |
$5,970.00 |
|
31440048 - PD North Station |
$32,841.25 |
|
31440101 - Infrastructure NON Equip |
$761,118.99 |
|
31445003 - Main Prom P.S. Improvements |
$158,202.00 |
|
31445201 - Infrastructure Engineering Design CLS |
$1,697.28 |
|
31465001 - Oil Well Abandonment |
$3,715,958.96 |
|
31485201 - Infrastructure Engineer Design |
$4,895,228.09 |
|
31487004 - Police Facility Improvements |
$172,010.14 |
|
31488001 - Heil Pump Station |
$473,935.08 |
|
31488003 - Storm Drain Building Improvement |
$92,681.59 |
|
31490012 - Oakview Streetscape |
$677,429.95 |
|
31490016 - Arterial Beautification |
($2,579.77) |
|
31490017 - Bridge Rehabilitation |
$43,641.75 |
|
31490018 - Mobility and Corridor Improv. |
($42,036.25) |
|
31490019 - FD/PD Youth Training Center |
$148,150.00 |
|
31490020 - Carr Park Improvements |
$27,050.00 |
|
31490021 - Garfield/Gothard Fiber Optic |
$799,644.23 |
|
31490022 - Residential Pavement |
$887,035.51 |
|
31490024 - Residential Zone Maintenance 24-25 |
$2,859,141.66 |
|
31490025 - Downtown Specific Plan |
$99,325.00 |
|
31490026 - Main Prom Parking |
$245,799.46 |
|
Total Project Expenditures |
$19,848,413.56 |
|
Fund Balance |
|
|
Fund Balance 7/1/24 |
$29,397,441 |
|
Revenue FY 2024/25 |
$19,432,593 |
|
Expenditures FY 2024/25 |
-$19,848,414 |
|
Fund Balance 7/1/25 |
$28,981,620 |
|
Budgeted Revenue FY 2025/26 |
$14,500,000 |
|
Budgeted Expenditures FY 2025/26 |
-$37,777,214 |
|
Budgeted Fund Balance 7/1/26 |
$ 4,603,708 |
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 2006/07 and FY 2009/10
2. Project Sheets
3. PowerPoint Presentation