The city of Santa Clarita is expected to approve a $16 million amendment to its previous fiscal year’s budget, and several midyear adjustments for the 2024-25 spending plan, according to city officials.
“Upon review of the revenues and expenditures for the year ending June 30, 2024, and in anticipation of future facilities funding needs, it is staff’s recommendation to amend the FY 2023-24 budget and transfer funds from the General Fund to the Facilities Fund in the amount of $16.0 million,” according to the agenda for Tuesday’s City Council meeting.
The resolution does not cite the specific reason why the money is being moved from the general fund to the facilities fund. However, the line item on the budget notes it’s an “additional fund transfer for future facilities projects.”
Carrie Lujan, communications manager for the city of Santa Clarita, said the appropriation was part of Santa Clarita 2025 projects.
Also on the agenda for Tuesday’s meeting is one of those projects: The city is planning to approve Phase II of its 25,000-square-foot “multiuse roller-skating rink.”
The $25 million project cost given by officials at the project’s groundbreaking might have been on the low side based on the funding requests associated with Tuesday’s budget.
AMG Associates is expected to be awarded a $23.7 million contract for construction; another firm just under $2.4 million for construction support; a third is to get $918,167 for construction management; $380,000 for inspections; $44,000 for labor compliance; and $166,140 for geotechnical work.
The total on the city’s agenda item for the Phase II costs, including contingencies, comes to approximately $27.6 million.
The midyear budget adjustments total more than $8.2 million in additional revenue the city is now anticipating for the current year, which is attributed largely to $5.2 million in Measure M Active Transportation Program funds.
The city is able to access those funds after the Santa Clarita City Council authorized the taking over of construction for the Vista Canyon bridge.
City Manager Ken Striplin called the city’s decision in February to take over the funding unprecedented, but in the city’s best interest.
At that time, the city staff’s recommendation called on the City Council to approve the city loaning itself up to $1.1 million from its general fund so it could assume the completion of the design of a bridge that will connect the intersection of Soledad Canyon Road and Lost Canyon Road to the Vista Canyon development, including the recently completed Vista Canyon Multi-Modal Transit Center.
Those funds are expected to be repaid to the city from future developer fees associated with the unbuilt residential portion of the Vista Canyon project. In November, the city moved to make the bridge eligible for a $7 million loan from its general fund, which would be paid by the same developer fees.
At the time of the city’s initial approval, Striplin explained there also would be Metro funding available for the project only if the city approved the plans by 2026.
Ultimately the multimodal project at Vista Canyon has not met expectation due to multiple factors, which resulted in the city taking over the bridge’s construction.
The city cited “significant financial difficulties” for the project’s developer, JSB Development, in their reasoning for the support. In August, records obtained by The Signal reported the default of a $24.2 million loan for the property.
The total cost of design and construction of the bridge is expected to be approximately $37 million, with $20 million available to the city in grant funding and a $7 million advance on developer fees expected to bring the city’s cost to about $10 million. However, a city budget analyst also noted there are more funding sources available for the project not mentioned in the midyear budget revisions.
There are also a number of expenses associated with the city’s takeover of William S. Hart Park, which was approved by the City Council earlier this year, which are part of planned budget adjustments.
“For the operation of Hart Park, an expenditure request of $736,328 from the Hart Park Fund is being recommended to facilitate the transfer of ownership and operation to the city,” according to the agenda.
This request includes: two groundskeeper I positions ($30,272); one general maintenance specialist position ($23,925); one animal care specialist position ($19,841); three F-150’s for the two groundskeeper I positions and general maintenance specialist ($176,850); one F-250 vehicle for use by the animal care specialist ($86,850); two John Deere gators ($34,000) and one tractor for grounds maintenance ($49,500); park security system upgrades ($105,800); security cameras ($169,290); and network infrastructure ($40,000).
City officials meet on the annual budget throughout the year prior to its approval in June ahead of the start of the fiscal year in July.
