Discussion and possible action on any and all matters regarding authorization to reallocate budget items to address shortfalls and cost increases in the Capital Projects Budget.  (Monica Castro, Director of Finance)

Since last year staff has experienced supply chain delays due to the economic rebound from COVID-19, staff shortages and the overstrain on the transportation systems.  Due to these supply chain disruptions, several projects initiated in our prior fiscal year were not completed or did not arrive before the year's end.  We also have experienced rising prices due to the record high inflation and the budget we allocated to some projects is not enough to bring the projects to completion.  For many projects, staff was able to allocate funding in the Fiscal Year 2023 ("FY 2023") budget.  However, there were several projects for which staff could not foresee the delay or the cost increase, causing a shortfall in the budget.    
 
To address this issue, staff evaluated the Capital Improvement Plan ("CIP") projects for FY 2023 budget to identify projects that would not be completed this year or that other agencies will be funding.  Through this analysis, we could identify budget capacity to reallocate to the projects that have a shortfall or were not budgeted in FY 2023.
 
Staff is seeking approval from the City Council to reallocate the budget from projects in the FY 2023 CIP budget that the city would not be able to complete in FY 2023 to the capital projects that have a shortfall or were not included and need to be completed in the FY 2023 budget.