The Financial Review Committee meeting held on September 13, 2022, in Dana Point, California, focused on the city’s budgetary performance and future financial planning. Key discussions revolved around the city’s revenue surplus, expenditure management, and strategic funding allocations for community projects.

The committee reported a net budget surplus of approximately $9 million, attributed to a combination of higher-than-expected revenues and lower expenditures. Notably, around $6 million of this surplus stemmed from American Rescue Plan Act (ARPA) funds, while the remaining $3 million was linked to sales tax revenues. The committee highlighted that personnel costs were a significant factor in the $3 million underspend on expenses, with savings primarily resulting from vacant positions and reduced overtime costs.

In terms of future financial planning, the committee discussed the allocation of approximately $650,000 for projects aimed at reducing car trips, such as bike lanes. This funding is earmarked for programmatic expenses over the next three years, after which it will no longer be available for such uses. Additionally, the committee noted a carryover of $1.8 million from completed projects in the previous fiscal year, contributing to a projected community investment account balance of around $14 million.

The committee emphasized the importance of strategic spending, encouraging departments to utilize their budgets effectively to avoid underspending in the upcoming fiscal year. They also acknowledged the need for ongoing recruitment to fill vacant positions, which had contributed to the current budgetary surplus.

Overall, the meeting underscored a strong financial position for the city, with a focus on leveraging surplus funds for community development while ensuring efficient management of resources moving forward.