Item 15 - Early Direction for the Fiscal Year 2025-26 Budget

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Early Direction for the Fiscal Year 2025-26 Budget March 18, 2025 Page 11 street closure, one stage setup, and shared resources. Additionally, staff proposes adjusting the Movies at the Park Series event to reduce costs. Staff also proposes allocating $20,000 to support outside entities in managing and executing two community -led events, Juneteenth and Noche de Altares/Viva la Vida. With these contributions, the total proposed event budget would be $1,003,000. The current year events budget is $1,365,700. Staff seeks City Council concurrence on the recommendations for reduced event funding allocations for FY25-26. Arts Funding A recurring funding allocation of $200,000 for FY 2025-26 is proposed to support the arts, with the Arts and Culture Commission responsible for reviewing and recommending its distribution to align with community priorities and cultural programming needs. Additionally, staff will review the FY 2025-26 operating budget to determine if this funding can be absorbed within the existing budget without impacting other services. Staff seeks City Council concurrence for a recurring funding allocation of $200,000 to support the arts in FY 2025-26. Miscellaneous Fees The City charges fees for services provided to individuals that do not benefit the public at large (e.g., building permits). Per state law, the City cannot charge more than the cost to provide these services. To keep pace with rising costs of doing business, including compensation and service -related expenses, staff recommends increasing miscellaneous fees each year. Last year, the budget included a 4.66% increase, reflecting both the increase in compensation for employees providing these services (including salary and benefits) and increased service -related costs. The Consumer Price Index for Los Angeles -Long -Beach -Anaheim for the year ending December 2024 increased by 4.76%. Employee bargaining groups are still in negotiations, with wage increases expected. Costs for workers' compensation and general liability have risen by 12% and 10%, respectively, and unfunded liability contributions will increase by 12% for FY 2025-26. Inflationary factors are also driving increases in other service -related costs, such as contract services and operational expenses. For Parks, Recreation, and Community Services Agency, no fee increases were implemented for FY 2024-25 miscellaneous fees. However, for this year, staff is requesting that fees be adjusted by the CPI increase of 4.76% to reflect rising costs.