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Home My WebLink AboutItem 01 - Fiscal Year 2025-26 Budget Work Study Session Finance and Management Services www.santa-ana.org/finance Item # 1 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report May 15, 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 No Update on Budget Study Session The May 6, 2025, City Council meeting included a scheduled Budget Study Session as part of the agenda. However, due to the length of the meeting and other discussion items, the budget item was not heard and has been continued to the already scheduled Budget Study Session on May 15, 2025. To support the upcoming discussion, the following items are now available at the following locations: •Exhibit 1- The draft Budget Document is available at the Budget Office website: https://www.santa-ana.org/fiscal-year-2025-26-budget/ o The Miscellaneous Fee Summary will be finalized by Monday, May 12. •Exhibit 2- The Measure X Spending Plan is attached to this Staff Report 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 continues to accept budget survey submissions, although City Council will review feedback received on or before May 11. Staff continues to conduct community outreach and will present the top community-identified priorities to the City Council as part of this agenda item. Fiscal Year 2025-26 Budget Work Study Session May 15, 2025 Page 2 5 0 4 9 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 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. Fiscal Year 2025-26 Budget Work Study Session May 15, 2025 Page 3 5 0 4 9 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. 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. 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: Fiscal Year 2025-26 Budget Work Study Session May 15, 2025 Page 4 5 0 4 9 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 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 weapon. 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 Fiscal Year 2025-26 Budget Work Study Session May 15, 2025 Page 5 5 0 4 9 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 – 11PM o Saturday-Sunday: 8AM– 11PM 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. 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. Fiscal Year 2025-26 Budget Work Study Session May 15, 2025 Page 6 5 0 4 9 Next Steps •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. EXHIBIT(S) 1. Draft Budget Document - https://www.santa-ana.org/fiscal-year-2025-26-budget/ 2. Measure X Spending Plan Submitted By: Alex Trinidad, Acting Executive Director of Finance and Management Services Agency Approved By: Alvaro Nuñez, City Manager Exhibit 2 City of Santa Ana Measure X Fiscal Year Ended June 30, 2026 Recurring costs identified in Prior Fiscal Years 8,100,000 1,200,000 500,000 Recurring costs identified in FY25‐26 One‐time costs identified in FY25‐26 Department Responsible Total plan spendingCategoryDescription Addressing Homelessness Addressing Homelessness Addressing Homelessness Addressing Homelessness Addressing Homelessness Addressing Homelessness Addressing Homelessness Fixing Streets Public Safety Response ‐ Homelessness (Labor) Public Safety Response ‐ Homelessness (Contractual and Other) QOLT Clean‐Up Contract Homeless Services Homeless Outreach & Engagement Navigation Center Maintenance QOLT Clean‐Up Staffing (2 Maint Workers II + Sanitation Inspect II) Code Enforcement Officers (2) Streetlight Pole work ‐ Under lit Areas Alley improvement program PD PD 8,100,000 1,200,000 500,000 574,880 75,000 PWA CDA CDA PWA PBA PWA PWA PWA PWA PWA PWA PWA PWA 574,880 75,000 666,390 323,109 1,000,000 1,500,000 1,000,000 1,000,000 2,000,000 350,000 666,390 323,109 1,000,000 1,500,000 1,000,000 1,000,000 2,000,000 350,000 Fixing Streets Fixing Streets Fixing Streets Fixing Streets Fixing Streets Fixing Streets Fixing Streets Sidewalk and/or Street Repair Traffic Calming Pavement Maintenance Median Landscaping Maintain Asphalt Pothole Repair Services Business Area Road Improvements 100,000 100,000 1,500,000‐1,500,000 Funding for additional police officers, traffic collision investigators; office assistants to relieve police officers stand‐by pay, cash‐outs and related benefits Maintain Effective 9‐1‐1 Response Maintain Effective 9‐1‐1 Response Maintain Effective 9‐1‐1 Response PD PD PD 5,184,590 2,870,170 5,184,590 2,870,170Police Department Overtime Public Safety Specialized Units: Criminal Investigations; Gang prevention and suppression; Communications; Enforcement; and Investigations and Support Service 2,024,905 2,273,210 103,000 4,802,860 1,667,000 1,999,540 20,075 14,685,500 526,965 779,970 220,000 559,610 ‐ 2,024,905 3,173,210 103,000 4,802,860 1,667,000 1,999,540 20,075 14,685,500 526,965 779,970 220,000 559,610 235,320 100,000 213,770 59,055,864 Maintain Effective 9‐1‐1 Response Maintain Effective 9‐1‐1 Response Maintaining Parks Maintaining Parks Maintaining Parks Maintaining Parks Retaining Firefighters Youth Services Youth Services Youth Services Ambulance Service Contract increase to maintain service level Human Resources Technician dedicated to Police Recruiting Park Maintenance and Repairs / Master Plan Armed Security for Parks Park Facilities ‐ Personnel Park Ambassador Orange County Fire contract increase to maintain service level Zoo and Recreation Personnel Zoo Contract & Supply Enhancements Crossing Guard Librarians and administrative Support (Personnel) Library Equipment & Expenses for Brach Reopening Youth Employment Program FMSA HR PRCSA/PWA PRCSA/PWA PWA PRCSA FMSA PRCSA PRCSA PWA 900,000 ‐ Youth Services Youth Services Youth Services Youth Services Library Library CDA 235,320 100,000 213,770 56,420,544 Sports & Rec Equipment Lending + Additional Programming PRCSA Subtotal Before Unrestricted Purposes 900,000 1,735,320 Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose FY18‐19 Budget Deficit ‐ Planned Use of General Fund Reserve FY18‐19 Budget Deficit ‐ Planned Staff Savings not implemented FMSA FMSA 10,200,000 1,500,000 10,200,000 1,500,000 City of Santa Ana Measure X Fiscal Year Ended June 30, 2026 Recurring costs identified in Prior Fiscal Years 800,000 Recurring costs identified in FY25‐26 One‐time costs identified in FY25‐26 Department Responsible Total plan spendingCategoryDescription Unrestricted General Revenue Purpose New Debt Payments for Purchase of Streetlights PWA PWA 800,000 Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Street Tree Maintenance (Tree‐Trimming) Universal Legal Defense Fund for Dreamers & Parents Public Meeting Software & ADA Captioning Sales Tax Rebate ‐ Volvo & Tac Energy 678,330 300,000 90,000 678,330 300,000 90,000 CMO COTC CDA 635,000 90,000 725,000 PWAUnrestricted General Revenue Purpose Santa Ana Regional Transportation Center Subsidy and Maintenance 1,100,000 1,100,000 FMSAUnrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Support for Utility Billing, Business Retention and HR ‐ Administrative Principal HR Analyst Permit Service Technician‐ PBA salaries Engineering Salaries for review of Plan Checks and Permits Vietnamese Community Liaison Part‐Time staff salaries 1,439,923 75,100 125,624 550,000 150,000 85,120 136,400 297,580 150,000 215,300 331,160 100,000 ‐ 1,439,923 75,100 125,624 550,000 150,000 85,120 136,400 297,580 150,000 215,300 331,160 100,000 150,000 520,000 129,140 HR PBA PWA CMO CMO CMO CAO PWA COTC PRCSA CDA Executive Assistance (1) Full‐time staff attorney position Protected Bike Lane sweeping program Support for City Clerk Increase the City Events budget Graffiti Arts Program Funding for Art Walk Arts & Culture Event Sponsorship Program / Arts Funding Economic Dev. Spec. I CDA CDA CDA 150,000 200,000320,000 129,140 CMOUnrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Unrestricted General Revenue Purpose Subtotal Unrestricted Purposes City Council, Contract Vendor Personnel Services PWA Graffiti Abatement Service Enhancement (Graffiti Removal) Zoning Code Updates Fleet Operating Support ‐ Operating supplies Bristol Parking Lot Improvemens Backflow Prevention Devices (Cross‐Connection Control Program) Fire Station Facilities Master Plan Bus Shelters 420,000 921,000 ‐ 420,000 921,000 200,000 36,910 250,000 500,000 250,000 250,000 250,000 2,000,000 24,926,587 PWA PBA PWA PWA PWA PWA PWA PWA Multiple 200,000 36,910 250,000 500,000 250,000 250,000 Bus Shelter Maintenance Future Pension Stabilization (115 Trust) 250,000 ‐ 21,036,587 2,000,000 3,540,000350,000 Totals $77,457,130 $1,250,000 $5,275,320 $83,982,450