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HomeMy WebLinkAboutItem 25 - Fiscal Year 2025-26 Budget Work Study SessionFinance and Management Services www.santa-ana.org/finance Item # 25 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 6, 2025 TOPIC: Fiscal Year 2025-26 Budget Work Study Session AGENDA TITLE Fiscal Year 2025-26 Budget Work Study Session RECOMMENDED ACTION Discuss and provide direction to staff. GOVERNMENT CODE §84308 APPLIES: No DISCUSSION The City Council provided Early Direction on March 18; staff has since updated the draft budget based on City Council consensus. This report includes additional information on some of the funding options identified during the discussion. The City conducted internal budget meetings with departments from March 24 to April 4 to review supplemental budget requests and staff priorities. After comparing the requests to City Council priorities received during Early Direction and community priorities identified during budget outreach, Finance worked with the City Manager's Office to build a draft budget for the City Council's consideration. The City is accepting budget survey submissions through May 11, although City Council will review feedback received on or before April 30. Staff continues to conduct community outreach and will present the top community -identified priorities to the City Council as part of this agenda item. At a minimum, the staff presentation is expected to include the following: • Summary of community outreach and priorities • Notable additions to the General Fund Budget (one-time and recurring) • Revenue trends and estimates for significant sources • Summary of the proposed Cannabis Public Benefit Fund spending plan • Additional details regarding the potential stadium investment • Additional look into Miscellaneous Fees • Update on General Fund reconciliation and discussion of potential budget balancing measures Fiscal Year 2025-26 Budget Work Study Session May 6, 2025 Page 2 The following section provides additional details in response to questions and feedback received during early direction. As requested, staff has included updated information and clarifications to support further discussion and potential next steps. Bristol & Edinger Parking Lot In response to a follow-up request from Early Direction, the table below provides additional detail on the scope and estimated costs for the Bristol Parking Lot Rehabilitation project. The proposed funding amount is $250,000. tsnstoi 6 Cainaer varKina LOt UOst tsrearcaown Item # Description Qty Unit Price Total Resurface lot (remove & replace 15' of 1 asphalt) 1 LS S100.000 S100.000 2 Repaint curbs 10,000 LF S 2 20,000 3 Repaint handicap parking symbols 3 EA S 320 960 4 Replace concrete wheel stops 80 EA S 135 $ 10;800 5 install ADA detectable warning panels 3 EA $ 2,030 $ 6;090 6 Install new accessibility signs 3 EA $ 466 $ 1,398 Repaint parking lot striping (lines. 7 arrows; etc.) 1 EA S 10.000 $ 10;000 8 Install metal access control gates 5 EA S 6.000 $ 30,000 9 Repaint existing fencing 1 LS S 10.000 $ 10.000 Repair landscaping and irrigation 10 systems 1 LS S 10.000 S 10.000 Construction Subtotal S199.248 10% Contingency S 19.925 15% Construction administration. S 29.887 Soft Cost Total S249.060 The Bristol & Edinger parking lot is an ideal city -owned location for public event use. Access to the site will be controlled by cattle gates, fencing, and parking wheel stops. Staff is proposing to create designated sections within the parking lot that can be rented based on area usage. The proposed fee structure is based on the updated Plaza Calle Cuatro model and is labeled as a Special Location Rental Fee. Similar to Plaza Calle Cuatro, an event's size determines which Park Facility Permit applies. Facility permit fees may vary depending on the group type, such as Resident, Non -Resident, Business, or Non -Profit organizations. The following is an example of what Santa Ana residents would pay for a three-hour reservation. Facility Event Type # Attendees Permit Fee Hourly Rate # Hours Fee Paid Minor Event 0-99 389 S 35 3 494 Moderate Event 100-250 $ 1.300 $ 35 3 1.405 Major Event 251+ $ 1,732 $ 35 3 1.837 Fiscal Year 2025-26 Budget Work Study Session May 6, 2025 Page 3 Bus Shelter Locations As requested by the City Council, staff has identified 16 proposed locations for replacement or new bus shelters. The majority of the Council expressed support for allocating $250,000 toward this effort. This information is provided to assist in confirming the locations and finalizing funding as part of the upcoming budget discussion. Locations Replace Deteriorated Shelter Install New Shelter 17th & Bristol Marker Place X Hazard & Harbor X First & Euclid X First & Grand X Edinger & Bristol X Edinger & Standard X St. Andrew & Fairview X Warner & Harbor X Warner & Bristol X Warner & Flower X Hemlock & Bristol X Segerstrom & Bristol X MacArthur & Harbor X MacArthur & Fairview X MacArthur & Bristol X MacArthur & Main X Jail Improvements City Council expressed interest in funding improvements to the Santa Ana Jail, specifically to enhance the Pay to Stay (PTS) program, and requested additional information to support funding considerations. The proposed funding amount of $250,000 would support two primary areas: 1. Facility Improvements (70%): Approximately 70% of the funds would be allocated toward critical infrastructure repairs, including plumbing, heating systems, and general living conditions. This investment is essential to improve the physical environment, support expanded programming, and provide a more functional and humane setting for participants. 2. Program Outreach and Promotion (30%): The remaining 30% would be dedicated to ongoing outreach and advertising efforts to promote the Pay - to -Stay program. This includes targeted campaigns through legal publications, traditional media, and other outreach strategies designed to continuously raise awareness and encourage participation among eligible individuals. The Pay to Stay program offers a valuable alternative for individuals who must serve jail time but wish to maintain their employment, housing, and family responsibilities. It is especially beneficial to working-class participants seeking a structured but less disruptive Fiscal Year 2025-26 Budget Work Study Session May 6, 2025 Page 4 environment. The program has also demonstrated strong revenue potential. In 2023, it generated $15,644 in revenue, which increased to $66,162 in 2024, reflecting growing interest and effectiveness. Code Blue Emergency Communication System Upgrade The most recent data for the Code Blue boxes is from year 2022, when 210 emergency calls were received. Since then, the phone system has been out of service, but it is reasonably estimated that up to 600 additional calls could have been made to date. Despite the phone outage, the cameras have remained fully operational and have supported multiple arrests, including two for homicide, one for a shooting, one for robbery, and one for assault with a deadly weaaon. Code Blue Boxes Calls in 2022 Code Blue 1 3rd/ Ross 37 Code Blue 2 2nd/ Broadway 39 Code Blue 3 4th/ Spurgeon 0 Code Blue 4 4th/ Main 53 Code Blue 5 3rd/ Birch 25 Code Blue 6 4th/ Birch 0 Code Blue 7 5th/ Broadway 10 Code Blue 8 Ross Annex/Plaza of the Sun 0 Code Blue 9 Hall of Admin(Bldg 10 7 Code Blue 10 Madison Park 39 Total 210 Modern Conference Space at the Senior Center on Third & Ross As requested, the following provides details on proposed usage hours and potential improvements: • Proposed Event Hours of Availability o Monday -Friday: 6PM — 11 PM o Saturday -Sunday: 8AM— 11 PM These proposed hours would not interfere with existing senior center programming, which operates: • Monday —Friday: 8AM — 5PM To enhance the space's functionality and make it more appealing for broader community use, staff identified a list of small investments that can be made in the near term. A breakdown of these recommended items is shown below. If the Santa Ana Senior Center were to host 25 five -hour events annually, the projected revenue would be based on the renter type, as shown in the table below. Fiscal Year 2025-26 Budget Work Study Session May 6, 2025 Page 5 Santa ulna Senior Center Group Resident Jon -Resident Hourly Fate S 42 S 126 5-hour rental S 210 S 630 25 rentals per year S 5.250 15.750 Additionally, if the City were to pursue a full expansion of the space to double its capacity from 125 to 250 occupants, the estimated construction cost would be approximately $3.5 to $4 million (subject to further design and cost analysis). Staff is not presently recommending this option because the return on investment is not sufficient to warrant the time and resources required. Description Amount Event furniture and fixtures S 21.000 Audio/Visual equipment $ 13.000 Beverage & food service equipment 8 17.000 Office & meeting supplies S 5.000 Bingo equipment 8 8.000 Subtotal $ 64;000 Sales Tax $ 6;600 Total $ 70.600 Next Steps • May 15 has been reserved for an additional Budget Work Session to review and discuss the draft budget. • In addition, City Council is also scheduled to consider the proposed FY 2025-26 budget on May 20 to provide further direction to staff on follow-up items from the May 15 Budget Work Study session. • On June 3, 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 2025-26, which begins on July 1, 2025, and ends on June 30, 2026. • The second reading and adoption of the FY 2025-26 Budget Ordinance is scheduled for June 17. FISCAL IMPACT There is no direct fiscal impact at this time. Fiscal Year 2025-26 Budget Work Study Session May 6, 2025 Page 6 EXHIBIT(S) None. Submitted By: Alex Trinidad, Acting Executive Director of Finance and Management Services Agency Approved By: Alvaro Nunez, City Manager