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Home My WebLink About75A - PH 2013-2015_BUDGET_SUMMARYCity of Santa Ana FY 2013 -2015 Budget Summary June 3, 2013 This Page Intentionally Left Blank MAYOR Miguel A. Pulido MAYOR PRO TEM Sal Tinajero COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Reyna Vince Sarmiento June 3, 2013 CITY OF SANTA ANA 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, Callfomia 92702 Honorable Mayor and City Council Members: We are pleased to submit the two -year budget for the City of Santa Ana for the 2013.2014 and 2014- 2015 fiscal years. The recommended budget continues the path to fiscal sustainability as a result of the collaborative effort among the City Council, City Management and various bargaining groups that occurred over the past several years. These efforts resulted in $11.4M in bargaining group concessions (of which $7.4 million were deferrals) and the outsourcing of the Fire Department to the Orange County Fire Authority. The two -year budget maintains the continued commitment of the adopted fiscal policy that requires that ongoing revenues meet ongoing expenditures and that the City continues to build on its established reserve level. The recommended budget still reflects the effects of the worst recession this country has seen since the days of the Great Depression, the continued struggle with State as it relates to the elimination of Redevelopment Agencies, and a retirement system whose limitations will be at the detriment of government agencies through higher pension costs. As such, the City still faces challenges in the coming years given the moderate economic growth forecasted for the general economy. The budget is fragile at best and makes the next two years critical in maintaining a sound financial footing as the City embarks on a strategic planning process to identify critical community priorities as well as operational efficiencies and needs. Picral Raalitiac The City was tremendously impacted by the worst recession in American history which began in December of 2007. The resulting effect was significant declines in the City's revenue tax base. The City of Santa Ana experienced a structural loss of $18.2 million or 14 % of its major General Fund revenues that included Sales Tax, Property Tax, and Utility Users Tax. As a result, the City's total General Fund budget dropped from $243.1 million to $196,5 million in three years. To balance the budget the City Council stood firm and made many difficult decisions that included outsourcing services such as graffiti, park maintenance, janitorial, street sweeping and most significantly the Fire Department. It merged Parks and Recreation with the Library, eliminated almost 500 positions, and depleted General Fund reserves to almost $3 million. Even with all these difficult choices the City sought the cooperation of the various bargaining groups who joined in assisting the City by negotiating both structural and deferred concessions totaling $11.4M. INTERIM CITY MANAGER Kevin O'Rourke X71 CITY ATTORNEY Sonia R. Carvalho {' CLERK OF THE COUNCIL Maria D. Huizar CITY OF SANTA ANA 20 Civic Center Plaza . P.O. Box 1988 Santa Ana, Callfomia 92702 Honorable Mayor and City Council Members: We are pleased to submit the two -year budget for the City of Santa Ana for the 2013.2014 and 2014- 2015 fiscal years. The recommended budget continues the path to fiscal sustainability as a result of the collaborative effort among the City Council, City Management and various bargaining groups that occurred over the past several years. These efforts resulted in $11.4M in bargaining group concessions (of which $7.4 million were deferrals) and the outsourcing of the Fire Department to the Orange County Fire Authority. The two -year budget maintains the continued commitment of the adopted fiscal policy that requires that ongoing revenues meet ongoing expenditures and that the City continues to build on its established reserve level. The recommended budget still reflects the effects of the worst recession this country has seen since the days of the Great Depression, the continued struggle with State as it relates to the elimination of Redevelopment Agencies, and a retirement system whose limitations will be at the detriment of government agencies through higher pension costs. As such, the City still faces challenges in the coming years given the moderate economic growth forecasted for the general economy. The budget is fragile at best and makes the next two years critical in maintaining a sound financial footing as the City embarks on a strategic planning process to identify critical community priorities as well as operational efficiencies and needs. Picral Raalitiac The City was tremendously impacted by the worst recession in American history which began in December of 2007. The resulting effect was significant declines in the City's revenue tax base. The City of Santa Ana experienced a structural loss of $18.2 million or 14 % of its major General Fund revenues that included Sales Tax, Property Tax, and Utility Users Tax. As a result, the City's total General Fund budget dropped from $243.1 million to $196,5 million in three years. To balance the budget the City Council stood firm and made many difficult decisions that included outsourcing services such as graffiti, park maintenance, janitorial, street sweeping and most significantly the Fire Department. It merged Parks and Recreation with the Library, eliminated almost 500 positions, and depleted General Fund reserves to almost $3 million. Even with all these difficult choices the City sought the cooperation of the various bargaining groups who joined in assisting the City by negotiating both structural and deferred concessions totaling $11.4M. California —A Continued Take After grappling with its own budget challenges for over a decade, often on the backs of local government, the State of California has finally achieved a balanced budget for FY 13 -14 that includes a $1.1 billion reserve. However, local governments still have felt the hands of the State as it took the last piece ($1.2 million) of the Vehicle License Fee in 2012. In addition, cities continue to feel the effects of the dissolution of the redevelopment agencies. The State used the dissolution of redevelopment agencies as a means to balance its budget. Originally the State had assumed savings of $2.1 billion for FY 2012 -13 and $1.1 billion for FY 13 -14 but these numbers appear to be one -third of what the State had originally estimated. The City has maintained its battle with the State in terms of defining enforceable obligations and has succeeded on many fronts. With the State defining the total amounts to be disbursed to local taxing agencies as $33,174,377 for Housing Set -Aside assets and $21,760,018 for Non- Housing Assets, the City has only disbursed $10,644,759 and continues to meet its obligations in terms of debt payments and affordable Housing projects. One unfortunate consequence of the elimination of redevelopment is that local cities have lost the funding and ability to provide an appropriate level of economic development for their community. Cities will now need to redefine economic development and look for creative alternatives to fund these activities that were previously funded through redevelopment tax increment. As cities grapple with this new reality, the State has now shifted its focus to eliminating or reforming enterprise zones. In its quest to "save" anther $750 million for the State budget, the elimination or reform of enterprise zones will certainly remove another leg of a development tool used to boost businesses and create jobs. The City Enterprise Zone budget is $393,500. In fiscal year 2011 -12 the enterprise zone issued 3,488 hiring tax credit vouchers to 434 businesses. Rising to the Challenge The City of Santa Ana leadership has taken many important steps in responding to its own budget challenges. Three major decisions by the City Council provided the foundation for ensuring that the City moved to financial stability. These were the outsourcing of the Fire Department to OCFA, collaboration with labor that resulted in $11.4 million in concessions, and the adoption of a fiscal policy that ensures a true balanced budget and commitment to reserves. As the City approached the fiscal year 13 -14 budget, it was essential that the City develop a long- term forecast that would enable policymakers to gage any decisions made in terms of savings as well as costs. As such, City staff worked with a consultant in developing a comprehensive interactive model that would allow for the application of various assumptions to a ten year Budget forecast. As a result of the forecast, the City identified 12 major budgetary assumptions in order to maintain a balanced budget over a two year period. In addition, City Council supported 11 budget - related policies which establish the framework for tasks and direction over the 2 -year 2013 -15 budget. These assumptions are outlined below: Budget Assumptions: 1. Departments to reorganize structure based on what City can afford 2. Implements the expiration of the compensated deferrals (approximately $7.4M) 3. No new programs or services 4. Continues to evaluate public safety costs 5. No new increases in negotiated compensation 6. Increases in Ca1PERS and medical costs are included 7. Copped costs for services and supplies 8. No additional general fund contributions to CIP 9. Honors Council approved Fiscal Policy 10. Assumes moderate growth in revenue sources 11. Returns former redevelopment Property Tax to General Fund 12. Risks to significant revenues identified but not included City Council Budget - Related Policies: 1. Adoption of a 2 -year budget 2. Provided labor strategy authority 3. Supported restructuring of departments' organizations and services provided based on the dollars available 4. Supported review of Police Dept. operations to identify financial savings 5. Continued support of Fiscal Policy & appropriate reserves 6. Supported appropriating Property Tax from former RDA 7. Supported the preparation of assessment studies for CIP infrastructure needs, deferred maintenance issues and planning needs 8. Modernizing the UUT 9. Supported studying the reduction of the water transfer 10. Provided direction on budget outreach and communication 11. Supported the development of strategic plan The ultimate effect of these assumptions and direction from City Council is a two -year balanced budget with the primary fiscal objective of establishing a foundation and base -line to build upon future budgets as well as community and organizational needs. The budget continues established strategies to move the City into long -term financial stability while maintaining core programs and services to the extent possible. To ensure transparency and community involvement, a total of ten public meetings will have been held by the second council meeting in June. These meetings provided the public the opportunity to learn about the budget process and provided a vehicle for residents to ask questions and express their opinions concerning community priorities. In addition, the organization has outlined key strategies for the coming two years. The primary is the completion of a five -year strategic plan. Additionally, in FY 2013 -14, the City will embark on a strategic visioning process that will define community needs and organizational direction in terms of services and resources. The cycle will begin upon conclusion of the budget process and will include strategic planning meetings with the City Council and community, and considered further at the Council Committee level. Fragile Two -year Budget The forecast places the City's budget position as fragile at best. Bad decisions can impact the City's current balanced position and may aggravate the City's budget position upon conclusion of the two year budget cycle. With a national economy that at times appears to be growing, as reflected by an improved housing market and gains in employment, the economy could easily hit a bump in the road such as the 0.2 percent reduction in consumer spending (April 2013) which is the lowest rating since May of 2012. This has resulted in some economists reducing their growth forecasts and the Federal Chairman paying close attention in case it needs to respond to a slowing economy. At the local level Chapman University projects only a 2.1 percent growth in the gross domestic product for calendar year 2013. Although Orange County housing is starting to show some strength with home values expected to rise 6.8 percent, home values are still well below pre - recessionary levels. Overall, there is still expressed concern over the budget and fiscal policy coming out of Sacramento, Washington, and especially the continued slow growth in Europe and a potential severe downturn in China. As such, the forecast for the City assumes moderate revenue growth. It captures the realities of a CALPERS system that also experienced tremendous losses in its portfolio that will result in increases to the City's retirement cost of almost $7.8 million or over 50% in the next three years. These factors are captured in the recommended budget. In addition, rates are projected to increase by at least 100% by fiscal year 2019 -20. The proposed Citywide budget for fiscal year 2013 -14 is $428,431,328 and $390,913,585 for fiscal year 2014 -15 and incorporates all funded appropriations related to the General Fund, Internal Service, Enterprise, Special, Capital Improvement Program and Community Development Funds. When compared to the prior year, the Citywide budget has increased approximately 4.5% (or $18.5M), primarily due to the increased Capital Improvement Program funding and higher General Fund spending tied to the end of the negotiated deferrals and costs associated with updating the general plan and zoning ordinance. The General Fund budget supports those functions most commonly associated with city government: police, fire, recreation, library, planning and building, street maintenance, and general city administration. The City has grown tremendously over the last 20 years along with the services required. According to the State Department of Finance, Santa Ana's population in January 2013 was 329,915 which is over a 50 percent increase over the past 20+ years. For fiscal year 2013 -14, the General Fund budget is $205.71M and $204.5 for fiscal year 2014 -15. Public safety continues to receive the highest allocation making up over 70% (or $144M when excluding debt service) of the 2013 -14 General Fund budget. The General Fund's six largest tax revenues make up over 71 percent of the overall revenue sources (the equivalent of $146.31M), Those tax revenue sources are Sales Tax (19.8 %), Property Tax (17.8 %), Property Tax in Lieu of Motor Vehicle Fees (12.6 %), Utility Users Tax (11.7 %), Business Tax (5.3 %) and Hotel Visitors Tax (3.8 %). As previously indicated one of the budget assumptions included in the budget model is for the departments to reorganize structure based on what the City can afford which included eliminating the backlog of funded and unfunded vacancies. As a result the proposed budget decreases the full -time employee count by an additional 155 positions for a total workforce allocation of 1049. This brings the total workforce reductions over the past 6 -years to approximately 736 (over 41 %). This workforce figure equates to a ratio of 3.17 employees per 1,000 residents. In FY 1986 -87, the ratio was 7.5 employees per 1,000 residents. The City has always been recognized as being one of the most efficient at providing services when compared to the 11 largest cities in California and the 100 largest cities in the country. However, the recent reductions does prompt certain challenges and must be viewed as an opportunity to identify different delivery systems that can be more efficient or as a means to utilize technology to effectively increase the productivity of employees. Moving forward As the City moves forward, it has identified some key organizational strategies for the next couple of years. Primary will be the updating of the City's General Plan and Zoning Code and addressing a new Economic Development strategy. In addition, it will develop a capital and deferred maintenance needs assessment which would provide plans for City facilities including police and fire buildings, sidewalks as well as water and sewer plans, a park CIP, and general deferred maintenance. The City will also develop an Information Services Strategic Plan as well as study and identify organizational cost saving opportunities such as the review of the jail operations which is currently being conducted by the City Manager's Office in conjunction with the Police Department. The City has faced some incredible challenges over the past several years. The balanced budget remains vulnerable to an economy that is still not predictable. There are decisions still being made at the State and Federal level that may impact the City's budget. Decisions made at the negotiation table with our bargaining units can easily create an unbalanced budget. Additionally, revenues will need time to gain what was lost as a result of the recession. The pressure to limit costs will be tremendous, given the increasing needs of the CALPERS system to remain solvent and the requests from the labor force seeking to gain back what it had sacrificed. This two -year balanced budget reflects a tremendous amount of work by staff and a resilience and fortitude of a City Council that is committed to ensuring the City's financial stability. I would like to thank the Budget Team, members of the Executive Management Team and their staffs for all the efforts in prod ' g this 2 -year 2013 -15 budget. Kevin O' `ourke Interim City Manager 'yr iLp 1 Total Annual Budget FY 2013 -2014 This Page Intentionally Left Blank O N M O N w V �I TTO V1 PTO C C O A U V o d � a7 i O O� U N d � V O O7 (n E V m 06 $ \° ay+ L L d C) > N cc GPJ- . 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U) Ef} O N O LT N Q:� Et3 General Fund Revenue Sources & Appropriations FY 2014-2015 X N H O N O w O ca d' N M l0 ri d- X O N i O O 4= O N O > O 47 N O 00 2 vl N L- GJ 41 LL o N LO V � .i O N O i ,o 0 N ba i m s U N G7 L LL o N N � O G7 01 a � G7 � N G7 �} .V J 0 X fa >4 C i C G7 C � d O d cy 0 X LO H � O 0 .N O 3 M m � c-I 12 N ' G7 X M W � O 3 O C O � o OC 000 A u LL J 3 � G7 J � O X O m O a- O 00 G7 �p Q N O i a T L LO i ® o a � � O � O i C N C c-I O � N X o ca �' H � N � i � O N O � o _ o - o N O TTOO V1 O LL c-I o O LL O � � N � � 4-0 o � i O r..l del O w N O M r X O N i O O 4= O N O > O 47 N O 00 2 vl N L- GJ 41 LL o N LO V � .i O N O i ,o 0 N ba i m s U N G7 L LL o N N � O G7 01 a � G7 � N G7 �} .V J 0 X fa >4 C i C G7 C � d O d cy 0 X LO H � O 0 .N O 3 M m � c-I 12 N ' G7 X M W � O 3 O C O � o OC 000 A u LL J 3 � G7 J � O X O m O a- O 00 G7 �p Q N O i a T L LO i ® o a � � O � O i C N C c-I O � N X o ca �' H � N � i � O N O � o _ o - o N O N i O N w O • PEN • PEN OEM co tOt � ICI ISM Q 4� 4� O M ° o a r-- c c e N p C) LO p p L(•) O) p CO � p CO 00 cp9 o ti N cn N LO r Lf) N N p Q CO Ef3 U Ef} M _00 O O N (10 N M N N Cl? i CD o o E � o � (a N (a (a N O :I_- E p E p CD Y N N CO Q p 0 E2 O cq E L LO U m U� U U° Z III 13 a � �.y Workforce Changes Additions /Deletions Qty. City Attorney's Office City of Santa Ana Proposed FY13 -14 Budget FULL -TIME WORKFORCE CHANGES Fiscal Impact (1) Assistant City Attorney (208,032) (1) (208,032) City Manager's Office (1) Executive Director, External Affairs 0 (1) 0 Community Development Agency Assistant Planner II (1) Economic Development Specialist I* 0 (1) Executive Secretary* 0 (1) Housing Authority Coordinator" 0 (1) Housing Programs Coordinator* 0 (1) Housing Programs Aide* (85,230) (1) Housing Specialist II" (100,445) (2) Management Analyst (1 unfunded)' (119,525) (1) Receptionist* (81,150) (1) Residential Construction Specialist" (120,935) (2) Secretary" 0 (1) Senior Accounting Assistant* 0 (1) Senior Community Development Analyst" 0 (2) Senior Office Assistant* (171,640) (2) Workforce Specialist II (1 unfunded)* (99,295) (18.0) (1) (778,220) Finance & Management Services (1) Administrative Services Manager (203,337) (1) Budget Analyst 0 (1) Custodial Aide /Porter* 0 (1) Mail Clerk /Messenger (46,907) (1) Reprographic Equipment Operator* 0 (1) Micro Systems Technician 0 1 Buyer 106,600 (5) (143,644) Planning & Building Agency (1) Assistant Planner II (84,330) (1) Accounting Assistant (67,680) (1) Planning Assistant (76,007) (1) Associate Plan Check Engineer (125,165) (1) Associate Planner (101,451) (3) Associate Planner 0 (3) Community Preservation Inspector* (262,536) (5) Community Preservation Inspector 0 (1) Sr. Community Preservation Inspector 0 (2) Sr. Office Assistant (64,682) (1) Senior Planner 0 (1) Sr. Plumbing /Mechanical Systems Specialist 0 (1) Permit Processor (57,624) (1) Plumbing Inspector 0 (1) Senior Electrical Inspector (110,923) (1) Electrical Inspector (84,499) (1) Secretary 0 (26) (1,034,897) *Non- General Fund 14 Additions /Deletions Qty. Personnel Services Agency City of Santa Ana Proposed FY13 -14 Budget FULL -TIME WORKFORCE CHANGES Fiscal Impact 1 Training Coordinator 89,556 (1) Data Entry Specialist (61,642) 0 Equipment Operator" 27,914 Police Department Equipment Operator' (4) Police Lieutenant 0 (5) Police Sergeant 0 (56) Police Officer 0 (1) Lead Police Records Specialist 0 (2) Parking Control Officers 0 (1) Communications Supervisor 0 (3) Police Services Dispatcher 0 (7) Police Sergeant (1,142,085) (2) Police Officer (260,220) (1) Police Administrative Manager (186,580) (1) Accounting Assistant (80,435) (1) Correctional Supervisor (125,725) (3) Correctional Officers (321,585) (2) Police Service Officers (184,805) (1) Executive Secretary to the Chief (96,775) (1) Police Personnel Svcs Specialist (81,535) 1 Emergency Operations Coordinator 100,000 (90) (2,379,745) Parks, Recreations, & Community Services 1 Zoo Education Specialist 52,229 (1) General Maintenance Worker (97,876) (1) Park Maintenance Inspector 1 (84,105) (1) Contracts Administrator 0 (1) Assistant Director 0 (2) Supervising Library Services Assistant (153,484) (1) Park Maintenance Aide (54,625) (6) (337,860) Public Works Agency 1 Water Systems Operator 11" 99,200 1 Water Systems Operator III" 107,537 (1) Equipment Operator" (105,788) (1) Equipment Operator' (101,832) (2) Maintenance Worker 11' (195,970) (1) Street Lighting Maintenance Worker (85,551) (1) Assistant Engineer II ` 0 (1) Senior Assistant Engineer" 0 (1) Senior Civil Engineer' 0 (1) Survey Party Technician" 0 (1) Transit Program Manager 0 (8) (282,404) Total: (155.0) (5,136,888) "Non - General Fund 15 City of Santa Ana Proposed FY13 -14 Budget Reallocations FULL -TIME WORKFORCE CHANGES Qty. Fiscal Impact Community Development Agency (1) Assistant Director of Community Development' (238,640) 1 Executive Director of Community Development" 245,000 (1) 1 Redevelopment Program Manager` Community Development Manager* (193,785) 193,785 Police Administrative Manager (119,460) 6,360 Finance & Management Services 104,700 (1) Custodian (Lead)' (73,310) 1 Building Maintenance Technician' 86,089 (1) Management Analyst' (135,695) 1 Senior Management Analyst` 147,263 (1) Web Systems Technician` (84,733) 1 Senior Programmer Analyst" 100,377 Administrative & Enterprise Services Manager' (167,166) 39,991 Planning & Building Agency (1) Community Preservation Coordinator (168,562) 1 Community Preservation Manager 177,661 9,099 Police Department (1) Police Administrative Manager (119,460) 1 Principal Management Analyst 104,700 (1) Police Services Dispatcher (113,895) 1 Police Communications Supervisor 128,895 (1) Police Systems & Communications Manager (155,005) 1 Police Communcations Manager 155,005 240 Public Works Agency (1) Administrative & Enterprise Services Manager' (167,166) 1 Administrative Services Manager* 167,166 (1) Office Supervisor` 1 Secretary" (94,932) 94,932 (1) Tree Trimmer* (89,770) 1 Data Entry Office Assistant' 92,089 2,319 *Non- General Fund 10 Total 58,009 t/1 O O r W N O Q O ca a) U (A M O a) U i O a) E 0 0 U- a) U i m O N r-I O Ln m r-I Ln r-, ol m r-, Lr, %MMW w r r-I Ol O r-I O r-I 17 Ln r-I i r-I L.L r-I m U- m N L.L r-I r-I r-I O U- O r-I rn O U- 0 i 00 O U- I.aL U O O a) O i Q a--+ a) E r� a) U- 4- O a) Ln c� a) Ln 0 U VA Ell O O O O O O O O M Ln 17 Ln r-I i r-I L.L r-I m U- m N L.L r-I r-I r-I O U- O r-I rn O U- 0 i 00 O U- I.aL U O O a) O i Q a--+ a) E r� a) U- 4- O a) Ln c� a) Ln 0 U VA Ell L* i I� O PLO I� u�u 1� 'A uOu 1` l' N O z a F z a LA LL O F- u LU F- LL O F- z LU N LU U C 7 U L O O Y L oZS o � � M 'E m Ln a � C 6) Ln c U O '> N VI L `• d N N 7 E U 01 CL c E o 0 j Q ta N U LO f G 18 � N U Ln O +�- a � n Ln T U J w L O Q ` +T� iNi U co N Q ? lD H �. c c.� d O `. l6 2 6� lz N C Q U r-I G 18 � N U Ln O +�- a � n Ln T L O Q ` +T� iNi U Y O �: u lD H �. � M co T _�� U � E L N O N c U rn O r-i c O .N O a LL 76 O H M c-I LL LL 'yr iLp 1 Proposed Changes To The Fee Schedule PROPOSED NEW MISCELLANEOUS FEES 2013 -2014 FINANCE & MANAGEMENT SERVICES 1) Return Payment Service Fee: Each Additional Return Payment Proposed Fee: $35.00 every additional returned check payment Return payment fees for non - sufficient funds, etc., is set by California Civil Code Sec. 1719. State law provides for a maximum Return Payment fee of $25.00 for the first returned payment item and maximum $35.00 for each additional returned payment item from the same customer. An estimated $5,000 in revenue will be generated from this fee annually. This fee is intended to recover a portion of the cost of direct staff time associated with tracing a payment that has been returned, which taken altogether, exceeds the maximum additional payment fee provided by state law. 2) Utility Service Set -up: Connection Charge Proposed Fee: $ 53.00 every new municipal utility services account established. To establish an account in the municipal utility services system, a verification of customer of record is required by obtaining proof of identity and a rental agreement or escrow closing statement. Documents are scanned and saved to customer's account for future reference. An account is set -up for purposes of billing and a site visit is made to read the water meter and connect water service. An estimated $150,000 in revenue will be generated from this fee annually. This fee is intended to directly recover the cost associated for both account establishment and meter read site visit to connect water service. 3) Hearing Service Fee Proposed Fee: $100.00 every request for an administrative hearing This fee established pursuant to NS -2841 will be charged to business license tax applicants or existing licensees who wish to exercise their administrative hearing rights regarding their business license tax classification or assessment. An estimated $500 in revenue will be generated from this fee annually. After an initial 3 month grace period $300 will be generated over nine months. The fee is intended to recover the basic contract cost of the assigned administrative hearing officer. 19 4) Autoregistration Service Fee Proposed Fee: $14.00 every business license tax account autoregistration This fee established pursuant to NS -2841 will be charged to businesses failing to make application or to provide required information and who are force - assessed an amount pursuant to municipal code. An estimated $1,500 in revenue will be generated from this fee annually. After an initial 3 month grace period $1,125 will be generated over nine months. The fee is intended to recover the direct cost of registering a business license tax account and assessing businesses business license tax, penalties, interest, charges, and other associated service fees. 5) Audit Service Fee Proposed Fee: $53.00 every qualifying business license tax audit (audits indicating underpayment of 10% or greater, but not less than $250.00) This fee established pursuant to NS -2841 will be charged when a business license tax audit determines that any licensee has underpaid their business license tax by 10% or more of the total amount due, but not less than $250. An estimated $5,000 in revenue will be generated from this fee annually. After an initial 3 month grace period $3,750 will be generated over nine months. The fee is intended to recover directly associated audit costs. 6) Inspection /Collection Service Fee Proposed Fee: $51.00 every re- inspection, re- investigation, or re- visitation of a place of business to enforce the business license tax code or collect business license tax monies. This fee established pursuant to NS -2841 will be charged for the re- examination, re- inspection, re- investigation, or re- visitation to any place of business for purposes of enforcing the business license tax code or collecting any sum owing under the business license tax code. An estimated $5,000 in annual revenue will be generated from this fee. After an initial 3 month grace period $3,750 will be generated over nine months. The fee is intended to directly recover associated site visit costs. 20 7) Transfer Service Fee Proposed Fee: $34.00 every business license tax account collection transfer This fee established pursuant to NS -2841 will be charged to businesses for the collection of unpaid business license tax monies whether by transfer to a collection agency, or by any other method of assignment. An estimated $3,000 in revenue will be generated from this fee. After an initial 3 month grace period $2,250 will be generated over nine months. The fee is intended to directly recover the cost of transferring or assigning the debts owed to the City. 8) Recording Service Fee Proposed Fee: $53.00 every recording of a certificate of lien. This fee established pursuant to NS -2841 will be charged for the recording of a certificate of lien to secure and effectuate the collection of any amount required to be paid under terms of the business license tax code. The fee is intended to recover costs associated with drawing up and recording certificates of lien. An estimated $750 in annual revenue will be generated from this fee. PARKS, RECREATION AND COMMUNITY SERVICES 9) Santa Ana Stadium /Commercial Events /Non Spectator One to Two Days All - inclusive: rental, basic staffing, lighting. Three or more consecutive days Proposed New Fee: Per Day 1,500.00 Per Day 1,200.00 The Parks, Recreation and Community Services Agency is proposing to create a fee for non - spectator commercial events that occur at the Stadium, i.e. Filming of Movies, Television Series, Commercials. These fees are all inclusive: rental, basic staffing, and lighting. This new fee will replace the current Santa Ana Stadium/Filming Fees. The Parks, Recreation and Community Services Agency estimates that it collects $120,000 per year while subsidizing $75,000 in Stadium related expenses on an annual basis. An estimated $1,500 — $3,000 per year will be generated from this fee. 10) Adult Baseball Surcharge Proposed Fee- Per Game $18.00 The Parks, Recreation and Community Services Agency is proposing to create a fee for Adult Baseball reservations. This new fee will be used to improve baseball facilities City -wide to enhance the player experience for both youth and adults. Improvements may include backstop replacement, irrigation improvements, bleacher repair, and other baseball facility related repairs. 21 PROPOSALS TO MODIFYEXISTING FEES 2013 -2014 Proposed modifications to existing fees are fee rate adjustments to the Miscellaneous Fees Schedule. FINANCE & MANAGEMENT SERVICES 1) Credit Card Processing Fee (fee waived by Council through June 2013) Existing Fee (waived): Per transaction $3.60 Proposed Fee: Extend waiver through June, 2014 Payment processing fee on credit card and ACH payments has historically offset merchant service processing cost. The Treasury Division has been making payment of services available through on -line options. Application of credit card /ACH payment processing costs has drawn the public to City Hall to make routine payment(s). The need to shift walk -in payment to alternative payment methods has been needed due to reduced City Hall hours and staffing. For this reason, staff recommended and Council approved the waiver of the payment processing fee effective March, 2012. Statistics have been gathered to since the waiver was granted, with positive results. Staff recommends the extension of the credit card processing fee waiver through June, 2014. COMMUNITY DEVELOPMENT AGENCY 2) Enterprise Zone Hiring Tax Credit Existing Fee: Proposed Fee: Application Processing Fee Per application $100.00 $120.00 Retro- voucher Processing Fee Per application $ 20.00 $ 40.00 Qualified businesses within the designated State Enterprise Zone in the City may apply for Hiring Tax Credit vouchers for qualified employees hired within the zone. Each voucher issued has the potential of generating over $37,000 in CA Tax Credits for the employer. The application fee includes a $15.00 processing fee assessed by the State Department of Housing and Community Development. A retro- voucher is any application that is 12 months past the employee hire date, and requires additional verification. The fee increase is to try to achieve full cost - recovery for the anticipated increases in the cost of staffing, operations, and marketing of the program, as agreed upon in the Memorandum of Understanding with the State. The Community Development Agency estimates that it collects $285,000 total per year for all processing fees. An estimated $26,400 from the application fee increase and $39,600 from the retro- voucher fee increase will be generated per year. 22 PARKS, RECREATION AND COMMUNITY SERVICES 3) Santa Ana Stadium — Television Rights Athletic games or special events All - inclusive: set -up/ Proposed breakdown, basic staffing, and Per Event Existing Fee: Fee: lighting. $3,384.85 $1,000.00 The Parks, Recreation and Community Services Agency is proposing to modify the fee for Television Rights for athletic games and special events that occur at the Santa Ana Stadium, i.e. high school, college and international football /soccer games, concerts, performances, etc. This proposed fee is comparable to fees charged by other similar stadiums in the region. These fees are all inclusive: set- up/breakdown, basic staffing, and lighting. This fee is in addition to the fee to reserve the Stadium. The fee to reserve the Stadium will be paid by the organization reserving the Stadium. The Parks, Recreation and Community Services Agency estimates that it collects $120,000 per year while subsidizing $75,000 in Stadium related expenses on an annual basis. The reduced fee is intended to encourage more filming events at the Stadium. An estimated $1,000 — $3,000 per year will be generated from this new more reasonable fee. 4) Santiago Lawn Bowling Greens Existing Fee: Proposed Fee: Rental Per Month $700.00 $500.00 The Parks, Recreation and Community Services Agency is proposing to modify the fee for the Santiago Lawn Bowling Green monthly rental. The reduced fee is more appropriate given the minimal impact lawn bowling activities have on this facility. The Parks, Recreation and Community Services Agency will collect $6,000 per year while subsidizing $12,900 in Lawn Bowling area related expenses on an annual basis. 23 POLICE 5) Police Security Services Lieutenant (no change) Sergeant Officer PCO /PSO Existing Fee $105.00 hour $ 85.00 hour $ 69.00 hour $45.00 hour Proposed Fee: $105.00 hour $ 97.00 hour $ 81.00 hour $ 50.00 hour The Police Department estimates that it collects $300,000 per year while subsidizing $23,670 in indirect costs for special event police security services on an annual basis. An estimated $323,600 will be generated from the fee to achieve full cost - recovery for these services. PUBLIC WORKS AGENCY 6) Residential Parking Permit Existing Fee: Every 2 Renewal $46.23 Proposed Fee: Every 2 Renewal $85.31 The Public Works Agency estimates that it collects $99,000 per year while subsidizing $84,000 in residential permit parking related expenses on an annual basis. An estimated $183,000 per year will be generated from this fee in order to achieve full cost - recovery of the residential parking permit program. 24 Capital Improvement Program CITY OF SANTA ANA CAPITAL IMPROVEMENT PROGRAM (CIP) FY 13 -14 CIP PROJECTS BY CATEGORY PROJECTS TOTAL I. NEIGHBORHOOD IMPROVEMENTS Curb, Gutter, Sidewalk Omnibus Concrete 350,000 Pedestrian Safety Project Development 50,000 Subtotal Curb, Gutter, Sidewalk 400,000 Neighborhood Street Improvements Local Street Preventative Maintenance 1,400,000 Residential Street Repair Program 788,692 Subtotal Neighborhood Street Improvements 2,188,692 Alley Improvement Program Alleys 95,850 Subtotal Alley Improvements 95,850 TOTAL NEIGHBORHOOD IMPROVEMENTS 2,684,542 H. ARTERIAL IMPROVEMENTS Arterial Widening Bristol Street Widening: Phase IIIA - Civic Center to Washington 594,000 Bristol Street Widening: Phase IIIB - Washington to Seventeenth 11,482,701 Bristol Street Widening: Phase IV - Warner to St. Andrew 737,946 Grand Avenue Widening: First to Fourth 2,790,262 Project Development 100,000 Right -of -Way Management 100,000 Warner Avenue Widening: Main to Grand 5,411,121 Warner Avenue Widening: Main to Oak 5,831,700 Subtotal Arterial Widening 27,047,730 Street Reconstruction/Resurfacing Arterial Street Preventative Maintenance 1,400,000 Chestnut Avenue Rehabilitation: Broadway to Main 287,000 Civic Center Drive Rehabilitation: Main to Spurgeon 440,000 McFadden Avenue Rehabilitation: Newhope to Harbor 646,000 Memory Lane Rehabilitation: Main to North City Limit Pavement Management 829,000 100,000 Subtotal Street Reconstruction /Resurfacing 3,702,000 TOTAL ARTERIAL IMPROVEMENTS 30,749,730 III. TRAFFIC IMPROVEMENTS Traffic Improvements Fixed Guideway 194,000 Grand /Glassel/Kraemer Corridor Traffic Signal Synchronization 850,000 Main Street Corridor Traffic Signal Synchronization 1,212,000 Newhope Street at Camille Street - New Traffic Signal 330,000 Santa Ana Safe Street Crossers (SRTS) 338,940 Segerstrom Avenue at Bear Street - Traffic Signal Modification 210,600 Traffic Control Devices Inventory 100,000 Traffic Management Plans 30,000 Traffic Safety Project Development 124,115 Traffic Signal Equipment Replacement 100,000 Subtotal Traffic Improvements 3,489,655 TOTAL TRAFFIC IMPROVEMENTS 3,489,655 25 CITY OF SANTA ANA CAPITAL IMPROVEMENT PROGRAM (CIP) FY 13 -14 CIP PROJECTS BY CATEGORY PROJECTS TOTAL IV. INFRASTRUCTURE IMPROVEMENTS Sewer Sewer Main Repairs and Replacements 1,000,000 Subtotal Sewer 1,000,000 Water 414,000 Walnut Pump Station 500,000 Water Main Replacements 3,900,000 Subtotal Water 4,400,000 TOTAL INFRASTRUCTURE IMPROVEMENTS 5,400,000 V. CITY FACILITY IMPROVEMENTS 250,000 Storm Drain/Water Quality 286,500 Downtown Business /Civic Center Stormwater Trash Reduction Project 109,864 Maple Street Bike Trail Storm Drain CDS 140,700 Santa Ana Delhi Channel Diversion Project 4,288,125 Wintersburg Channel Stormwater Trash Reduction Project 108,438 Subtotal City Facility Improvements 4,647,127 Parking Structure Improvements Parking Structure Improvements 2,500,000 Subtotal Parking Structure Improvements 2,500,000 TOTAL CITY FACILITY IMPROVEMENTS 7,147,127 V. PARK FACILITY IMPROVEMENTS Park Facility Improvements /Renovation Ballfield Fence Repair at Various Parks 80,000 Bike Lane Project Development 45,000 Chestnut Avenue Bike Lane 414,000 First Street Bike Lane - Newhope to Harbor 143,000 Maple Bike Trail Safety Enhancements 300,000 Memorial Park Security Lighting Improvements 480,000 Newhope Street Bike Lane - Fifth to Westminster 111,100 Pacific Electric Park 250,000 Portola Parking Lot, Basketball Court, and Tennis Court Renovation 286,500 Santa Anita Park Patio Renovation 119,000 Secure Bike Parking Systems 54,750 Subtotal Park Improvements/Renovation 2,283,350 TOTAL PARK FACILITY IMPROVEMENTS 2,283,350 GRAND TOTAL 51,754,404 CITY OF SANTA ANA SEVEN -YEAR CAPITAL IMPROVEMENT PROGRAM FY 13 -14 THROUGH FY 19 -20 PROJECTS FY 13 -14 FY 14 -15 FY 15 -16 FY 16 -17 FY 17 -18 FY 18 -19 FY 19 -20 TOTAL I. NEIGHBORHOOD IMPROVEMENTS Curb, Gutter, Sidewalk Improvements 400,000 509,841 521,073 463,349 466,567 468,837 472;392 3,302,059 Neighborhood Street Improvements 2;188,692 2,788,692 2,788,692 2,788;692 2,788,692 2,788,692 2;788,692 18,920,844 Alleys 95,850 152,103 260,000 260,000 260,000 260,000 260,000 1,547,953 Total Neighborhood Improvements 2,684,542 3,450,636 3,569,765 3,512,041 3,515,259 3,517,529 3,521,084 23,770,856 II. ARTERIAL IMPROVEMENTS Arterial Widening 27,047,730 2,816,432 200,000 200,000 200,000 200,000 200,000 30,864,162 Street Reconstruction/Resurfacing 3,702,000 3,990,000 4,342,000 4,648,000 4,853,000 5,054,000 5,267,886 31,856,886 Total Arterial Improvements 30,749,730 6,806,432 4,542,000 4,848,000 5,053,000 5,254,000 5,467,886 62,721,048 [II. TRAFFIC IMPROVEMENTS Traffic Improvements 3,489,655 444,000 250,000 250,000 250,000 250,000 250,000 5,183,655 Total Traffic Improvements 3,489,655 444,000 250,000 250,000 250,000 250,000 250,000 5,183,655 IV. INFRASTRUCTURE IMPROVEMENTS Sewer 1,000,000 500,000 500,000 500,000 500,000 500,000 500,000 4,000,000 Water 4,400,000 3,000,000 4,000,000 4,500,000 4,500,000 5,000,000 5,000,000 30,400,000 Total Infrastructure Improvements 5,400,000 3,500,000 4,500,000 5,000,000 5,000,000 5,500,000 5,500,000 34,400,000 V. CITY FACILITY IMPROVEMENTS Storm Drain/Water Quality 4,647,127 100,000 1,250,000 0 0 0 0 5,997,127 Parking Structure Improvements 2,500,000 0 0 0 0 0 0 2,500,000 Total City Facility Improvements 7,147,127 100,000 1,250,000 0 0 0 0 8,497,127 VI. PARK IMPROVEMENTS Park Facility Improvements 2,283,350 2,090,000 50,000 50,000 50,000 50,000 50,000 4,623,350 Total Park Improvements 2,283,350 2,090,000 50,000 50,000 50,000 50,000 50,000 4,623,350 GRAND TOTAL 51,754,404 16,391,068 14,161,765 13,660,041 13,868,259 14,571,529 14,788,970 1399196,036 27 s �, ��, — -- �,� — , �h►-�.a..o�_,,,w