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Analysis of City of Santa Ana Reserve Funds
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<br />Six Year Analysis of General Fund Reserves
<br />The attached "Exhibit A" is an analysis of reserves of the last six fiscal years. The analysis focuses on the
<br />accumulation of reserves year over year, including not only the Operating Reserve and the Economic
<br />Uncertainty Reserve, but also the Unallocated Amount Reserve, (not designated for anything), and the
<br />Assigned Amount Reserve, (earmarked for future projects and/or programs by the City Council).
<br />The Santa Ana City Council and City staff should be commended for their ability to increase their
<br />reserves from very low levels in fiscal year 2010-11 to financially stable amounts by fiscal year 2013-14.
<br />The exhibit shows that the Operating Reserve Account was able to meet the Budget Fiscal Policy goal by
<br />the end of the 2013-14 fiscal year. It has been able to stay very close to the 20% reserve goal ever since.
<br />The accumulation of most of these reserves occurred in fiscal years 2011-12 through 2013-14.
<br />In 2011-12, property tax, sales tax, hotel tax, and business license tax revenues came in almost $5
<br />million over budget. On the expenditure side, one-time citywide expenditures were approximately $8
<br />million less than expected. These were the main factors in reserves increasing approximately $13
<br />million for the year.
<br />In 2012-13, all revenues, but primarily property tax, sales tax, hotel tax, and business license tax
<br />revenues came in approximately $9.6 million over budget. On the expenditure side, personnel cost
<br />savings, primarily in Recreation and Community Services, the Police Department, and Planning and
<br />Building, were approximately $7 million. These were the main factors in spendable reserves increasing
<br />approximately $15.5 million for the year.
<br />In 2013-14, all revenues, but primarily property tax, sales tax, hotel tax, and business license tax
<br />revenues, came in approximately $9.3 million over budget. On the expenditure side, personnel cost
<br />savings, primarily in Recreation and Community Services and the Fire Department (contract savings),
<br />were approximately $5.4 million. Capital Outlay expenditures were almost $2.7 million less than
<br />anticipated. These were the main factors in spendable reserves increasing approximately $15 million for
<br />the year.
<br />In 2014-15, property tax, sales tax, hotel tax, business license tax, and revenues from other agencies
<br />came in approximately $7 million over budget. This was offset by a $4 million rental income loss due to
<br />the Police Departmentjail operations. On the expenditure side, personnel cost savings, primarily in
<br />Recreation and Community Services, the Police Department, Planning and Building, and Community
<br />Development, were approximately $9.3 million. One-time citywide expenditures were approximately
<br />$1 million less than expected. These were the main factors in reserves increasing approximately $13
<br />million for the year.
<br />Of the $13 million new reserves added at the end of the 2015-16 fiscal year, approximately $11 million
<br />was designated by the City Council to be spent on specific future projects / programs. This is what staff
<br />refers to as the Assigned Accounts.
<br />In 2015-16, property tax, sales tax, hotel tax, business license tax, and revenues from other agencies
<br />came in approximately $1 million over budget. This was offset by a $4.5 million rental income loss due
<br />to the Police Department jail operations. On the expenditure side, personnel and operational cost
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