Item 40 - Public Hearing Fiscal Year 2024-25 Budget (Revised)

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Proposed Fiscal Year 2024-25 City Budget, Changes to the City’s basic classification and compensation plan, Uniform Schedule of Miscellaneous Fees, and the Seven-Year Capital Improvement Program June 4, 2024 Page 5 4 3 3 9 The model indicates that the General Fund budget structure will need to be adjusted in the future to remain balanced. The future unbalance is caused by multiple factors. Costs are expected to continue increasing faster than the City’s revenues. For example, the OCFA contract can increase by 4.5% per year, yet property tax revenue is not expected to exceed 3% per year. CalPERS investment performance has not met expectations, contributing to higher pension debt costs. The Measure X rate decreases in 2029, causing a significant decrease in revenue. Charter Requirement for Public Recreation Program Spending Santa Ana Charter Section 607 requires City Council to adopt a budget to “provide for the support of public recreation programs at least the equivalent of six (6) cents on each one hundred dollars ($100) of the assessed value of taxable property in the City on the legal assessment date for the previous fiscal year.” The net taxable value of property for FY 2023-24 was $34,504,060,595. When applying the calculation required by the Charter, the required expenditure budget for public recreation programs is $20,702,436. The proposed General Fund budget includes $16,083,960 for the Parks, Recreation and Community Services Agency, $18,071,860 for the maintenance of parks and facilities, and $3,410,190 for youth services funded by Cannabis tax revenue. The proposed budget exceeds the requirement by $16,863,574 or 81%.