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Proposed Fiscal Year 2026-27 City Budget, Changes to the City's Classification and
<br /> Compensation Plan, Uniform Schedule of Miscellaneous Fees, and the Seven-Year
<br /> Capital Improvement Program
<br /> June 2, 2026
<br /> Page 5
<br /> requirements, and contractual obligations, including the Orange County Fire Authority
<br /> (OCFA) agreement for fire services.
<br /> In addition, CaIPERS' investment performance has periodically fallen short of actuarial
<br /> assumptions, contributing to higher pension-related costs and increased pressure on
<br /> future budgets. The Outlook also reflects a significant revenue reduction beginning in
<br /> 2029, when the Measure X sales tax rate is scheduled to decrease.
<br /> Charter Requirement for Public Recreation Program Spending
<br /> Santa Ana Charter Section 607 requires the City Council to adopt a budget that provides
<br /> the support of public recreation programs of at least the equivalent of six (6) cents on
<br /> each one-hundred dollars ($100) of the assessed value of taxable property in the City on
<br /> the legal assessment date for the previous fiscal year. The net taxable value of property
<br /> for FY2025-26 was $37,395,765,281. When applying the calculation required by the
<br /> Charter, the required expenditure budget for public recreation programs is $22,437,459.
<br /> The proposed General Fund budget includes $13,947,230 for the Parks, Recreation &
<br /> Community Services Agency (PRCSA), $16,047,780 for the maintenance of parks and
<br /> facilities, and $3,403,290 for youth services funded by Cannabis tax revenue. The
<br /> proposed budget exceeds the Charter requirement by $10,960,841 or 49%.
<br /> Citywide Budget
<br /> The proposed FY26-27 Citywide Budget includes the General Fund and a variety of other
<br /> City funds that support operations, capital improvements, debt service, and enterprise
<br /> activities. These funds include internally restricted funds, designated by City policy or
<br /> Council direction, and externally restricted funds, legally limited to specific purposes by
<br /> state or federal regulations and grant requirements. A summary of the Citywide Budget
<br /> is provided below.
<br /> Proposed
<br /> Budget - • . -
<br /> Revenues $ 427,349,780 $ 340,591,640 S 767,941,420
<br /> Expenditures $(397,341,340) $(321,251,330) $(718,502,670)
<br /> Net Transfers $ (37,695,160) $ (29,888,750) (67,583,910)
<br /> Net Activity $ (7,686,720) $ (10,5487440) (18,235,160)
<br /> 30ther Funds excludes Internal Service Funds
<br /> The negative net activity reflects a proposed use of accumulated fund balances for one-
<br /> time, nonrecurring projects. Exhibit 1 provides detailed budget information for each fund.
<br /> Pension Stabilization Trust and Annual Prepayment of Unfunded Liability
<br /> The proposed budget includes a $1.5 million General Fund deposit into the City's Section
<br /> 115 Pension Trust in FY26-27. The Trust was established to help fund future increases
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