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Exhibit 1 GENERAL FUNDING STRATEGIES The City of Santa Ana does not have the capital or operations funding needed to provide the parkland level of service desired by the community. To build recommended features, sustain the community's investment in existing resources, and keep Santa Ana's parks safe, clean, and green, the City must identify additional sources of funding. Eight funding strategies are noted below. DEVELOP PARTNERSHIPS The City has active and ongoing partnerships and long-term lease agreements that support existing parks and joint -use school sites. As noted in Chapters 4 and 5, the City should consider additional joint -use agreements to support access to greenspace and recreation facilities in many gap areas, since it is not financially feasible to the City to acquire parkland in all unserved areas. SEEK SPONSORSHIPS AND DONATIONS In addition to traditional partnerships for facility development, the City should explore all options to increase philanthropic contributions to Santa Ana's park system. The establishment of a 501(c)(3) Parks and Recreation Foundation would introduce new fundraising support for City parks, facilities, and programs. In addition, the City of Santa Ana could offer to sell naming rights to large new parks and/or major facilities. Business sponsorships —in exchange for marketing promotion through signage, the agency's website, or other agency materials such as the recreation guide —present another opportunity to increase revenues. INCREASE RESOURCES FOR NEW DEVELOPMENT The City should update its Residential Development Fee Ordinance to increase funds available for park acquisition and development. Since this is a critically important source of funding for implementing the PIMP, the next section of this chapter provides guidance on fee changes. CONSIDER BONDS AND DEBT FOR CAPITAL IMPROVEMENTS For the portion of park projects left unfunded by fees and charges, the primary alternative to consider is bonded debt. The City has two options for funding bonds to provide the capital resources needed for projects. The first and most common is the General Obligation (GO) bond which requires voter approval for property taxes to cover the repayment. The second, called full faith and credit, or bonds approved by the City Council only, require repayment from the general operating funds of the City (with income from existing taxes and fees). INCREASE FEES AND CHARGES As noted in Chapter 5, RCSA recently completed a Service and Financial Sustainability Study to evaluate cost recovery targets for facility operations, programs, and services. That Several recommended projects may be eligible document provides guidance for increasing PURSUE GRANTS STRATEGICALLY In conjunction with the park impact fee study, Santa Ana's Municipal Code should be revisited to determine whether Santa Ana's parkland dedication requirements should be amended under the Quimby Act, Government Code Section 66477, which allows cities to require subdivisions dedicate parkland sufficient to provide up to three (3) acres of park area per 1,000 subdivision residents. DIVERSIFY FUNDING for grants tied to Land & Water Conservation revenues through fees and charges. In addition, recommendations in Appendix E Fund (LWCF) or transportation grants. Typically, In addition to the General Fund dollars that show where additional partnerships may be grants applications are competitive processes typically support Santa Ana's parks and related IDENTIFY SUSTAINING FUNDING warranted to share costs with the SAUSD in that fund only capital costs. Some grants services, Proposition 68 funding, cannabis As the City brings new parks and facilities the development of a new Aquatic Facility at require a City to commit to the maintenance funding, and funding reserved for stormwater g, 9 online, it will need additional maintenance and Centennial Park. In addition, the City of Santa and operation of the resulting facilities into and non -motorized transportation projects P P 1 operations funding to maintain and sustain city Ana should actively seek equity partners for all perpetuity (as in the case with LWCF grants). all provide additional revenues that could p arks. Landscape and Lighting districts (LLD's) and P P 9 9 major facility development and/or renovations, Most grants also require matching funds. To be support park projects. Most of these funds Community Facilities District (CFD's) establish a tax plus identify other partnerships to expand effective at competing for grant funding, the are restricted in how they can be spent. For basis to collect maintenance funding. However, Santa Ana's recreation opportunities. For City will need to invest staff time in tracking le, Santa Ana's cannabis funding P 9 is these districts are typically established when new outdoor facility development, the City should and applying for grants. earmarked for youth services, but these funds residential areas are developed. It is more difficult P look for community -based organizations may be used to support infrastructure that to obtain voter approval for maintenance districts willing to sponsor facilities aligned with group support youth programs. in established residential areas. They City should interests. Typically, this involves a donation explore various taxing strategies, such as operational of capital funds, but it may also include IPy4P whirh ma cii nrt ark m �, ,LpfLp_.aintenance. operations fundin0jtyl U-nyJ#ort. 14 — 111 5/17/2022 CHAPTER 8: ACTION PLAN