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Home My WebLink AboutItem 26 - Early Direction for Fiscal Year 2022-23 Budget Cycle Finance and Management Services www.santa-ana.org/finance Item # 26 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report March 15, 2022 TOPIC: Early Direction for Fiscal Year 2022-23 Budget Cycle AGENDA TITLE: Early Direction for Fiscal Year 2022-23 Budget Cycle RECOMMENDED ACTION Provide early budget direction to staff for the upcoming fiscal year. DISCUSSION The discussion for this agenda item is the City Council’s opportunity to provide early budget direction for FY 2022-23. The staff presentation will include, at a minimum, the following topics: City-sponsored community events Cannabis Public Benefit Fund update and direction for allocations Miscellaneous Fees (cost recovery for City services benefiting individuals) Planned contribution to the Section 115 Trust for pension stabilization Updated 10-year outlook for the General Fund The next steps in the budget process Staff is currently in the midst of preparing the draft budget for FY 2022-23. The City will kick off an effort to gather public input for the budget during the Com-Link meeting scheduled for March 24, 2022. Staff intends to launch the Balancing Act online tool to gather public input throughout the budget process, as well as offer in-person neighborhood meetings and a virtual option. The Budget Calendar includes City Council budget workshops on the regular agendas of May 3 and May 17, 2022. However, per the City Council’s request, the Clerk of the Council has identified May 12 and May 16, 2022 as potential dates for dedicated City Council Budget Workshops outside of the regular agenda schedule. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. Early Direction for Fiscal Year 2022-23 Budget Cycle Mach 15, 2022 Page 2 2 4 9 0 FISCAL IMPACT There is no fiscal impact associated with the recommendation. Submitted By: Kathryn Downs, Executive Director Finance and Management Services Approved By: Kristine Ridge, City Manager r 6 BAN-'% IF dMt-= I . wt re ct 1Z30 ion City City Council Meeting -March l5,2022 for 4 1 6 66 or 01 Introduction & Overview 02 Park Maintenance 03 City Events 04 Cannabis Public Benefit Fund Ob Third and Broadway Project 1 . 06 Miscellaneous Fees 07 Pension Debt Strategy 08 10-Year General Fund Outlook 09 Budget Timeline 2 uA Expect a balanced budget for FY 22-23 AA Stable credit rating Strong General Fund Reserve of 565 million 18% of the annual budget) Ten -Year Outlook to plan for the future More than $200 million for pandemic related response and stimulus Managed spending during the pandemic to maintain a balanced budget 3 The FY 22-23 proposed budget will include transferring Parks Maintenance to Public Works effective July 1. is Consolidating similar functions of two different Cit will improve efficiency and ensure a uniform level the community. y departments of service to El Summer at the Plaza Fourth of July Celebra Birch Summer Nights Concerts in the Park Series Celebrating Hispanic Heritage Month tion Indigenous People's Day Celebration Winter Village and Plaza Navidena Revive Santa Ana 5K Run Juneteenth Celebration Di'a de los Muertos FIoes City Council wish to make any changes to this list? 5 Balance as of 7/1/21 Estimated Transfer Other Revenue Midyear Reallocation Available Resources FY 21-22 Youth Budget FY 21-22 Enforcement Budget Youth 91#8491734 615081350 60,0000 715001000 23,918,084 22,888,149) Enforcement 613551748 6,508.0350 71500,000) 5,364,098 31711,380) Total Budget (22,888,149) (3,711,380) Estimated Balance 6/30/22 1,029,935 1,652,718 Does the City Council wish to see a proposed spending plan for the $2.7 million available at June 3062 If the 2/3 set -aside is approximately 13 million for FY 22-23, what portion should be budgetedfior youth? 7 City has a development agreement for a boutique hotel and housing project at 3rd & Broadway The City -owned parking garage will be demolished Currently expected to generate revenue of $321,300 City Funded Improvements: Up to $13 million for demolition, site prep and Sycamore reconnection Developer is obligated to repay this with future parking revenue 9 Ah Does the City Council wish to use available General Fund balance to make the $13 million contribution,? Staff Recommendation) Or does the City Council wish to pursue debt financing? 9 Cost -recovery for services provided to individuals no public benefit). Includes permits, facility rental and recreation programs. In FY 21-221 the Consumer Price Index (CPI) of 1.67% was waived by City Council. CPI for FY 22-23 is 4.3%and may generate up t:) 500,1000 of additional revenue. LLoes City Council wish to increase fees by 4.3% CPI? Or something less? 10 Pro:P FY 22-23 PE 80,000,000 70,000,000 60,0 00, 000 50,000,000 40,000,000 30,000,C00 20,C)C0,000 10,C)cx),Cx)o Pqi77IZ.1i Pension Debt Obligations vs. Current Budget Bond Debt Service Estimated CaIPERS Payments FY21-22 Citywide Budget Proposed FY 22-23 budget of 54.3 Million ro 1%t Lr) UD r— cc M CD r.-I r%j irn R* Lr) U3 p- 00 In c= r%j ro Ln r%j r%j r%4 Cj C4 r%i ro rr) rr) rn rn ro M ro cn rn -t I t q0 CD CD C:) C=) C=) CD CDO CD CD CD CDO C C= CD CD C:) CD CD CD CD CD rI-j cI%j rINJ C%j cq nj rq C 4 C%4 n4 C 4 cI%j r%j 11 LI Payments for pension debt Deposit to Pension Stabilization Total Proposed FY 22=23 Budget in millions) 4469 9e4 5493 Does City Council approve the proposed strategy? Or does the City Council wish to make a change? 12 Ten -Year General Fund Outlook - June 2021 N $ 500 0 5 460 420 375.2 $377.0 380 $j wv6 353.5 / $376.7 366.1 340 $355.8 340.9 300 FY21-22 FY22-23 FY23-24 FY24-25 Revenue 387.4 387.6 s 398.0 410.4 398.9 FY25-26 FY26-27 FY27-28 Expenditures & Transfers Out 432.9 420.7 407.6 396.1 445.5 419.4 FY 28-29 FY 29-30 FY 29-30 13 500 wr,t, 420 40 00 Ten -Year General Fund Outlook -Updated Through Midyear 67.0 7.4 64.1 86. 397.5 r FY21-22 F - 3 FY23- 4 FY 4- 5 Revenue 433.1 420.9 Er 47.6 J 443.8 L L 46.7 438.5 i Balance Budget until i Measure X rate decreases. Revenue Surplus for next 7 years could be used for capital improvements or a budget stabilization fund to prepare for IMeasure X rate decrease transition. F - 6 F 6- 7 FY 7- 6 FY 28-29 FY - 0 FY 9- 0 Expenditures & Transfers Out 14 Community Budget Meetings: March 24 — Com-Link Meeting @ 7 pm April 11— Newhope Library @ 6 pm April 18 —Pentecostal Church of God @ 6 pm April 20 —Delhi Community Center @ 6 pm April 26 —Virtual Meeting @ 6 pm City Council Workshops: May 3 and May 17 —City Council Meeting May 12 and May 16 (Tentative) —Special City Council Meeting* In addition to or in -lieu of May 3 and May 17 City Council Meeting: June 7 —Public Hearing (1st Reading) June 21—Public Hearing (Ist Reading) 15 mi FY2021-22 General Fund Budget Where the Money Goes or OF Revenue You are balanced,. Spending Your Ideas: $59.2m PublicSafety: $192.7m Transfers & DebtService: 4_8m Development Services: $31.2m CommunityServices: $34.5m Administration: 1 _ m Total $364, 102,209 Launch Date in March 2022 C:)uestic I li I It: F& 1: