HomeMy WebLinkAboutItem 01 - Fiscal Year 2024-25 Budget Work Study Session Finance and Management Services
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Item # 1
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2024
TOPIC: Fiscal Year 2024-25 Budget Work Study Session
AGENDA TITLE
Fiscal Year 2024-25 Budget Work Study Session
RECOMMENDED ACTION
Discuss and provide direction to staff.
GOVERNMENT CODE §84308 APPLIES: No
No
DISCUSSION
The City Council provided Early Direction on April 2 and staff has updated the proposed
budget accordingly. The City conducted internal budget meetings with departments from
March 25 to April 11 to receive supplemental budget requests and staff priorities. After
comparing the requests to City Council priorities received during Early Direction and
community priorities received during the budget outreach, Finance worked with the City
Manager’s Office to build a proposed budget for City Council consideration. Through
May 13, the City has received over 2,100 budget survey responses. Staff will continue
community engagement and will present results during the presentation for this agenda
item.
The staff presentation includes the following:
•Community Engagement Results
•Notable additions to the General Fund Budget
•Summary spending plans to serve the Unhoused Community and Youth
populations
•A summary of the proposed Cannabis Public Benefit Fund spending plan
During the May 7 City Council meeting, this item was continued to May 16. Staff
expects to post the draft budget document to the City’s website on May 13, in advance
of the May 16 meeting.
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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Miscellaneous Fees Benchmarking
As requested by the City Council, staff has compiled a sampling of comparative
Miscellaneous Fees with other cities (Exhibit 1). In addition, the Parks, Recreation, and
Community Services Agency has been studying their fees and how they compare to
other cities and may return to City Council with recommendations at a later date. In the
meantime, Staff proposes no increase for Parks, Recreation, and Community Service
Fees and an increase of 4.66% for all other FY 2024-25 Miscellaneous Fees.
General Fund Reconciliation
The General Fund reconciliation (Exhibit 2) accounts for all changes from the adjusted
FY 2023-24 General Fund budget to the proposed FY 2024-25 General Fund budget.
The reconciliation includes a detailed listing of all proposed additions, both recurring
and one-time amounts.
¹Staff is recommending a one-time adjustment to close out the Stores Internal Service Fund at the June 4, 2024 City Council Meeting
as part of the Third Quarter Budget Update.
Proposed Measure X Spending Plan
The proposed spending plan (Exhibit 3) includes recommended spending categorized
by ballot category and department. The estimated Measure X revenue for FY 2024-25
is $85,632,610. The proposed spending plan of $85,798,655 exceeds the revenue
estimate in case actual revenue is higher. The revenue and expenditures are General
Fund money, and any expenditures in excess of Measure X revenue will be paid by
other General Fund revenue.
Total Recurri ng Re ve nues 406,527,340
Total FY2024-25 Spe ndi ng Base li ne (Re curri ng)(401,854,110)
Propose d Additions for Re curri ng Spe nding (4,420,840)
Esti mate d Avail abl e (Re curring)252,390
Esti mate d Ending Bal ance as of June 30, 2024, not i ncludi ng
Pensi on De bt Stabil izati on 86,799,113
Thi rd Quarte r Budget Update ¹(850,000)
Less 18% Rese rve (73,174,921)
Propose d One -Ti me Spendi ng (12,762,760)
Esti mate d Spe ndabl e Bal ance at June 30, 2025 (One -Ti me )11,432
Proposed FY24-25 G e ne ral Fund Summary
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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Parking Enterprise Spending Plan
The draft FY 2024-25 budget includes a General Fund subsidy of $1,658,000 to provide
one-hour of free parking in the Downtown Santa Ana parking garages. The subsidy and
parking fee revenue pay for the following $4.9 million spending plan for enhanced
services and parking operations.
Serv ices Description Costs
Litter Maintenance
Remove litter and was te from all outs ide s urfaces
five times per day.
Special Event Litter Clean-Up
Maintenance
Provide cleaning s ervices during and after City
approved events .
C lean and Empty Tras h Cans
Replace the 90 tras h can liners five times per day and
wipe down tras h cans .
C lean Outdoor Benches ,
Bollards and Light Poles Wipe down outdoor furniture daily.
C lean & Minor Repairs for
Parklets
Remove litter and was te daily. Light power was h as
needed. Minor repairs to Parklets .
C lean Alleys
Remove tras h, was te, excrement, etc. from alleys
daily.
C lean Bus Stops Complement cleaning s ervices of bus s tops daily.
Street C los ures
Provide s treet clos ure s ervices for City approved
events .
Power Was h
Power was h all 82 s idewalks and 7 alleys monthly
following a s pecific s chedule.
Equipment & Facilities
Provide adequate tras h containers , vehicles , and
s torage facilities .
Enhanced Services
Clean and Safe Program ($762,300)
762,300$
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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A General Fund subsidy for the Parking Enterprise is not sustainable. Therefore, staff
proposes using one-time money to subsidize one year of one-hour free parking, to allow
time for developing recommendations to re-balance the Parking Enterprise budget. If
the City Council opts to increase the duration of free parking and/or continue free
parking beyond FY 2024-25, the recurring spending plan will need to be adjusted.
Next Steps
•City Council can provide direction to staff and if additional discussion is needed
this agenda item can be continued to May 21st.
•On June 4, the City Council is scheduled to conduct the Budget Public Hearing
and consider the first reading of an ordinance to adopt the budget for FY 2024-
25, which begins on July 1, 2024, and ends on June 30, 2025.
•The second reading and adoption of the FY 2024-25 Budget Ordinance is
scheduled for June 18.
FISCAL IMPACT
There is no direct fiscal impact at this time.
Parking Meter Staf fi ng Costs
Parking and Admi nistrative Staff, Ve hi cle costs,
Operational Expense s 978,880$
Mete r Equi pme nt, Mai nte nance
and Operation Costs
Smart Me ters, Parki ng App, Citation processing, meter
re pl ace me nts and counting se rvi ces 423,650$
Parking Meter Operations
Inte rnal Charges & Othe r Costs
Liabi l i ty Insurance, IT Mai nte nance , Indirect Costs, Debt
(Pe nsion Bond), Indi re ct and Unantici pated Costs 312,860$
Downtown Parki ng Enforcement
Parking Enforce ment staff i ng costs, misce l l aneous
ope rati ng e xpenses, winter cleani ngs and i nte rnal
Charges 304,360$
Parking Ope rator and Graff i ti
Services
Parking Ope rator Manageme nt Costs, parki ng
e qui pment mai ntenance, e l e vator repai rs, graff i ti
abateme nt, city staff and related e xpenses.1,187,026$
Contractors and Miscell aneous
Repairs
Contractor for signage, i rrigati on repai rs, and
unantici pated parking re pairs 200,004$
Parking Structure
Security Guard Services 24/7 s ecurity s ervices at three parking s tructures 600,000$
Downtown Santa Ana (DTSA)
Security Guard Services
Security s ervices provided in the downtown area. 16
hours per day, 7 days per week.145,000$
Parking Operations ($4.15M)
Parking Meter, Operations and Enforcement
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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EXHIBIT(S)
1. Miscellaneous Fee Benchmarking
2. General Fund Reconciliation
3. Proposed FY24-25 Measure X Spending Plan
Submitted By: Kathryn Downs, Executive Director of Finance and Management
Services
Approved By: Alvaro Nuñez, Acting City Manager
FMSA PD PBA
1 Long Beach
Altered - $28
Unaltered - $250 1 Riverside Average $112 1 Anaheim $167
2 Irvine
Altered - $28
Unaltered - $159 2 Long Beach Average $90 2 Long Beach $91
3 Santa Ana
Altered - $28
Unaltered - $159 3 Santa Ana Average $84 3 Santa Ana $64
4 Anaheim
Altered - $17
Unaltered - $100 4 Anaheim N/A 4 Irvine $62
5 Riverside
Altered - $17
Unaltered - $100 5 Irvine N/A 5 Tustin $39
6 Riverside $32
1 Irvine $92 1 Riverside $583 1 Anaheim $167
2 Riverside $37 2 Santa Ana $195 2 Long Beach $91
3 Anaheim $35 3 Long Beach $157 3 Santa Ana $64
4 Santa Ana $24 4 Anaheim N/A 4 Irvine $62
5 Long Beach $12 5 Irvine N/A 5 Tustin $39
6 Riverside $32
Dog License Fees Parking Citation Plumbing Permit
New Business License License to sell Pistols/ Revolvers Electric Permit
4/29/2024
EXHIBIT 1
PRSCA
1 Brea $100 1 Anaheim $72 1 Irvine $249
2 Anaheim $85 2 Irvine $58 2 Brea $185
3 Fountain Valley $80 3 Long Beach $45 3 Tustin $151
4 Irvine $64 4 Orange $25 4 Fullerton $150
5 Santa Ana $43 5 Fullerton $23 5 Anaheim $120
6 Long Beach $25 6 Santa Ana $21 6 Long Beach $115
7 Orange N/A 7 Tustin $17 7 Santa Ana $115
8 Tustin N/A 8 Brea Non-profit sports groups only 8 Orange $105
9 Fullerton N/A 9 Fountain Valley
Must be registered team to
rent 9 Fountain Valley
Prices Vary, No Full-
time Option
*Resident Recreational Rate
Aqua-Swim Lessons Resident
1 Tustin $130 1 Long Beach $40
2 Irvine $104 2 Orange $35
3 Brea $90 3 Irvine $32
4 Anaheim $79 4 Anaheim $30
5 Santa Ana $58 5 Fullerton $23
6 Long Beach
$185 private lessons
10 weeks 6 Tustin $17
7 Orange $30 per private lesson 7 Santa Ana $10
8 Fountain Valley N\A 8 Brea Non-profit sports groups only
9 Fullerton
Third-Party
Outsourced 9 Fountain Valley N/A
*Resident Recreational Rate
Youth Sports Soccer Field Rental*Youth Camp- Weekly Resident
Baseball Field Rental*
4/29/2024
PWA
1 Santa Ana $378 1 Anaheim $8,000 1 Costa Mesa $465
2 Costa Mesa $220 2 Tustin $1,488 2 Buena Park $380
3 Buena Park $190 3
San Juan
Capistrano $886 3 Santa Ana $376
4 Fullerton $122 4 Buena Park $300 4 Tustin $287
5 Anaheim $103 5 Santa Ana $224 5 Fullerton $177
6
San Juan
Capistrano $55 6 Costa Mesa $90 6 Anaheim $104
7 Tustin N/A 7 Garden Grove $90 7
San Juan
Capistrano $58
8 Garden Grove N/A 8 Fullerton N/A 8 Garden Grove $50
Street Improvement Plan Check
1 Buena Park HourlyRate+20%1 Tustin $5,513
2 Tustin $551 2 Anaheim $5,500
3 Santa Ana $224 3 Santa Ana $1,877
4 Anaheim $168 4 Fullerton $1,500
5 Costa Mesa $90 5 Costa Mesa N/A
6 Garden Grove $90 6
San Juan
Capistrano N/A
7 Fullerton $70 7 Garden Grove N/A
8
San Juan
Capistrano $58 8 Buena Park N/A
Tract Map Check Lane Closure Permit
Wireless/Small Cell Application
Street Work Permit Issuance
4/29/2024
General Fund Revenues
Revenue
FY23-24 Original Adopted 400,938,670
Adjustments (97,661)
FY23-24 Revised 400,841,009
Adjustments to Revenue Estimates for FY24-25:
Measure X Sales Tax (60,890)
Bradley-Burns Sales Tax 640,900
Property Tax 2,466,920
Property Tax In-Lieu of VLF 1,252,760
Utility Users Tax 225,000
Cannabis Tax 1,622,870
Business License Tax 200,000
Plan Check & Permits 380,000
Jail Use Fees (3,001,000)
Other net adjustments 1,959,771
Total Resources 406,527,340
EXHIBIT 2
General Fund Expenditures
Spending
FY23-24 Original Adopted Budget, inlcuding Section 115 Trust Contributions 430,556,550
Remove One-Time Items (29,439,332)
City Council approved adjustments to recurring costs during FY23-24 (899,500)
FY24-25 Adjusted Baseline 400,217,718
Annualize partial year Allocations approved during FY23-24 332,830
Employee Compensation Increase (MOU, step increases, etc.)7,740,307
Cannabis Public Benefit Transfer related to revenue decrease (918,020)
Overhead/Internal Service Charge Increases
Building Maintenance 466,530
City Equipment & Replacement Charges 680,140
Accident Repair & Replacement 275,380
IT Maintenance & Specific Charges 420,230
Insurance Charges 947,630
Public Works Administrative Charges 107,910
City Yard Rental 17,520
Orange County Fire Authority Contract Increase 1,954,400
CARE Ambulance Increase 587,240
Police Building Payoff (9,039,920)
Sunset of VIP Program (1,700,000)
Other contract increases/decreases & minor changes across all departments (235,785)
FY23-24 Baseline (Recurring)401,854,110
Proposed Additions to FY 24-25 Budget Recurring One-Time
Backfill for CIP Engineering as reported on December 19, 2023 900,000
Animal Shelter Contract Increase 600,000
Increase budget to provide for actual Senior Services & Athletics spending 375,000
Add Economic Development Staff 445,680
Zoo Operations & Maintenance related to new animals and exhibits 330,280
Bus Stop Maintenance 250,000
Increased Maintenance Costs for New Parks (Gerardo Mouet, Ed Caruthers,
Santa Ana River Trail. 10th & Flower, King Street)175,000
Investment Advisory Services (Completely offset by revenues)150,000
Neighborhood Initiatives Contractual Services 120,000
Senior Legal Mgmt Analyst for City Attorney 109,790
Navigation Center Maintenance 100,000
Establish recurring allocation for Pothole Repair 100,000
First Floor Customer Service Representative 97,570
Helicopter Contract (County Rate Increases)93,230
800MHz Contract Increase for Police 90,570
Dedicated Building Maintenance Technician for Jail 75,830
Delhi Library Operations & Maintenance 75,060
Assistant Fleet Services Technician 70,110
Planning/Building & Code Enforcement Training 48,600
Increase allocation for Employee Appreciation 37,500
Increase in Fleet Operating Materials & Supplies 36,910
Upgrade Executive Secretary for City Attorney 28,700
Parking Validations for City Council Meetings 27,500
Dispatch Community Engagement Tech Platform 27,010
Independent Audit Fees increase 20,000
Code Enforcement Overtime 15,000
OPEB Actuarial Valuation 11,000
City Council Allocations Increase 10,500
DTSA Parking Subsidy 1,658,000
Traffic Safety Improvements - Intersections: Segerstrom Ave/Raitt St and
Segerstrom Ave/Flower St Traffic 1,300,000
Zoo North Wall 1,200,000
Vehicle Replacement (Multiple Departments)1,114,000
Electrical feeder upgrades (SCE) and Electrical Panel - City Yard 1,000,000
Bristol Street Rehab Completion 680,000
Jail Aramark Contract Increase 653,040
Zoning Code Community Outreach 500,000
Allocation for Police Retirements, in compliance with MOUs 500,000
Last 800MHz Debt Payment (2 in a single fiscal year)462,860
November 2024 Election Costs 425,000
Rehab Zoo Walkways 400,000
City Yard Operations - Strategic Master Plan/ RFP advertised FY 23/24 400,000
Jan-Jun 2025 (6 months) Funding for ARPA Positions 375,960
Digital Media Billboard to promote City events and generate revenue from
business ads - City Yard 375,000
Jail Deferred Maintenance 250,000
City Yard Deferred Maintenance 250,000
Software to Upgrade Fueling Station at City Yard 250,000
Car Wash Rehab - City Yard 250,000
State Building Utilities prior to demo in December 2025 180,900
Planning & Building Records Project 146,000
Strategic Planning 102,000
Parkland Feasibility Study, including Washington Square 100,000
Fleet Electrification Master Plan 100,000
City Yard - Rehab Ice Making Room 65,000
Software required to continue banking online 25,000
Total 4,420,840 12,762,760
City of Santa Ana Measure X
Fiscal Year Ended June 30, 2025 - Proposed -
Category Description Department
Responsible
Recurring costs
identified in
Prior Fiscal Years
Recurring costs
identified in
FY24-25
One-time costs
identified in
FY24-25
Total plan
spending
Addressing Homelessness Public Safety Response - Homelessness (Labor)PD 7,000,000 7,000,000
Addressing Homelessness Public Safety Response - Homelessness (Contractual and Other)PD 1,200,000 1,200,000
Addressing Homelessness QOLT Clean-Up Contract Homeless Services PWA 500,000 500,000
Addressing Homelessness Homeless Outreach & Engagement CDA 617,610 617,610
Addressing Homelessness Navigation Center Maintenance CDA - 100,000 100,000
Addressing Homelessness QOLT Clean-Up Staffing (2 Maint Workers II + Sanitation Inspect II)PWA 577,710 577,710
Addressing Homelessness Code Enforcement Officers (2)PBA 349,020 349,020
Fixing Streets Streetlight Pole work - Under lit Areas PWA 1,000,000 1,000,000
Fixing Streets Alley improvement program PWA 1,500,000 1,500,000
Fixing Streets Sidewalk and/or Street Repair PWA 1,000,000 1,000,000
Fixing Streets Traffic Calming PWA 1,000,000 1,000,000
Fixing Streets Pavement Maintenance PWA 2,000,000 2,000,000
Fixing Streets Median Landscaping PWA 500,000 500,000
Fixing Streets Maintain Asphalt Pothole Repair Services PWA - 100,000 100,000
Fixing Streets Two Traffic Signals: Segerstrom Ave/Raitt St & Segerstrom Ave/Flower St PWA - 1,300,000 1,300,000
Fixing Streets Bristol Street Rehab Completion PWA - 680,000 680,000
Maintain Effective 9-1-1 Response Funding for additional police officers, traffic collision investigators; office
assistants to relieve police officers stand-by pay, cash-outs and related benefits PD
5,182,410 5,182,410
Maintain Effective 9-1-1 Response Police Department Overtime PD 1,500,000 1,500,000
Maintain Effective 9-1-1 Response
Public Safety Specialized Units: Criminal Investigations; Metro Division;
Communications; Vice; and Investigations and Support Service PD
2,578,695 2,578,695
Maintain Effective 9-1-1 Response Ambulance Service Contract increase to maintain service level FMSA 2,052,340 2,052,340
Maintain Effective 9-1-1 Response Human Resources Technician dedicated to Police Recruiting HR 103,000 103,000
Maintaining Parks Park Maintenance and Repairs / Master Plan PRCSA/PWA 4,627,860 175,000 4,802,860
Maintaining Parks Armed Security for Parks PRCSA/PWA 1,900,000 1,900,000
Maintaining Parks Park Facilities - Personnel PWA 1,446,170 1,446,170
Maintaining Parks Park Ambassador PRCSA 300,000 300,000
Maintaining Parks Parkland Feasibility Study, including Washington Square PWA 300,000 300,000
Retaining Firefighters Orange County Fire contract increase to maintain service level FMSA 12,629,400 12,629,400
Youth Services Zoo and Recreation Personnel PRCSA 520,370 520,370
Youth Services Zoo Contract & Supply Enhancements PRCSA 776,500 116,300 892,800
Youth Services Zoo North Wall PRCSA - 1,200,000 1,200,000
Youth Services Rehab Zoo Walkways PRCSA - 400,000 400,000
Youth Services Crossing Guard PWA 220,000 - 220,000
Youth Services Librarians and administrative Support (Personnel)Library 530,850 530,850
Youth Services Youth Employment Program CDA 100,000 100,000
Youth Services Sports & Rec Equipment Lending + Additional Programming PRCSA 200,000 200,000
Subtotal Before Unrestricted Purposes 52,211,935 491,300 3,580,000 56,283,235 DRAFTEXHIBIT 3
City of Santa Ana Measure X
Fiscal Year Ended June 30, 2025 - Proposed -
Category Description Department
Responsible
Recurring costs
identified in
Prior Fiscal Years
Recurring costs
identified in
FY24-25
One-time costs
identified in
FY24-25
Total plan
spending
Unrestricted General Revenue Purpose FY18-19 Budget Deficit - Planned Use of General Fund Reserve FMSA 10,200,000 10,200,000
Unrestricted General Revenue Purpose FY18-19 Budget Deficit - Planned Staff Savings not implemented FMSA 1,500,000 1,500,000
Unrestricted General Revenue Purpose New Debt Payments for Purchase of Streetlights PWA 800,000 800,000
Unrestricted General Revenue Purpose Street Tree Maintenance (Tree-Trimming)PWA 678,330 678,330
Unrestricted General Revenue Purpose Universal Legal Defense Fund for Dreamers & Parents CMO 300,000 300,000
Unrestricted General Revenue Purpose Public Meeting Software & ADA Captioning COTC 50,000 50,000
Unrestricted General Revenue Purpose Sales Tax Rebate - Volvo & Tac Energy CDA 725,000 725,000
Unrestricted General Revenue Purpose Santa Ana Regional Transportation Center Subsidy and Maintenance PWA 1,100,000 1,100,000
Unrestricted General Revenue Purpose Support for Utility Billing, Business Retention and HR - Administrative FMSA 798,000 798,000
Unrestricted General Revenue Purpose Principal HR Analyst HR 75,100 75,100
Unrestricted General Revenue Purpose Permit Service Technician- PBA salaries PBA 121,130 121,130
Unrestricted General Revenue Purpose Engineering Salaries for review of Plan Checks and Permits PBA 550,000 550,000
Unrestricted General Revenue Purpose Vietnamese Community Liaison CMO 150,000 150,000
Unrestricted General Revenue Purpose Part-Time staff salaries CMO 85,120 85,120
Unrestricted General Revenue Purpose Executive Assistance CMO 121,100 121,100
Unrestricted General Revenue Purpose (1) Full-time staff attorney position CAO 224,120 224,120
Unrestricted General Revenue Purpose Protected Bike Lane sweeping program PWA 150,000 150,000
Unrestricted General Revenue Purpose Support for City Clerk COTC 190,350 190,350
Unrestricted General Revenue Purpose Increase the City Events budget PRCSA 340,500 340,500
Unrestricted General Revenue Purpose Graffiti Arts Program CDA 100,000 100,000
Unrestricted General Revenue Purpose Arts & Culture Event Sponsorship Program CDA 200,000 200,000
Unrestricted General Revenue Purpose Economic Dev. Spec. I CDA 124,000 124,000
Unrestricted General Revenue Purpose City Council, Contract Vendor Personnel Services COTC 420,000 420,000
Unrestricted General Revenue Purpose PWA Graffiti Abatement Service Enhancement (Graffiti Removal)PWA 921,000 921,000
Unrestricted General Revenue Purpose DTSA Parking Subsidy CDA - 1,658,000 1,658,000
Unrestricted General Revenue Purpose Fleet Operating Support - Operating supplies and staff supoort PWA 107,020 107,020
Unrestricted General Revenue Purpose Electrical feeder upgrades (SCE) and Electrical Panel at City Yard PWA - 1,000,000 1,000,000
Unrestricted General Revenue Purpose Fleet Electrification Master Plan PWA 100,000 100,000
Unrestricted General Revenue Purpose City Yard Operations - Strategic Master Plan PWA 400,000 400,000
Unrestricted General Revenue Purpose City Yard Deferred Facility Maintenance Repairs PWA 250,000 250,000
Unrestricted General Revenue Purpose City Yard Car Wash Rehab PWA 250,000 250,000
Unrestricted General Revenue Purpose City Yard Digital Media Billboard PWA 375,000 375,000
Unrestricted General Revenue Purpose City Yard - Rehab Ice Making Room PWA 65,000 65,000
Unrestricted General Revenue Purpose Upgrade Fueling Station Software for City Fleet Tracking PWA 250,000 250,000
Unrestricted General Revenue Purpose Funding for 5 ARPA Positions (6 Months)PWA 319,650 319,650
Unrestricted General Revenue Purpose Bus Shelter Maintenance PWA 250,000 250,000
Unrestricted General Revenue Purpose Vehicle replacement for building maintenance PWA 67,000 67,000
Unrestricted General Revenue Purpose Future Pension Stabilization (115 Trust)Multiple - 4,500,000 4,500,000
Subtotal Unrestricted Purposes 19,923,750 357,020 9,234,650 29,515,420
Totals 72,135,685$ 848,320$ 12,814,650$ 85,798,655$ DRAFT