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Home My WebLink AboutItem 30 - Presentation - Budget Workshop0 0 [ 0 • 010 00 m m m o M=ms� � � NM Aran 0MR00so Ez z wp wr s a 1avautt`uip lu I " * . . is Mr Community Engagement � Outreach General Fund Overview Revenue & Cost Recovery One -Time Resources Cannabis Public Benefit Fund Next Steps F Al" iq Ll onnnnuni Enigaigern d. OUTREACH K, Community Engagement& Outreach 502 Engagements across all lards 282 Total Meeting Attendees 21057 Community Priorities Survey Submissions We've met with every council ward Vietnamese & Spanish Interpretation services are offered at every meeting Community Priorities Survey Q Survey available in English, Spanish, and Vietnamese Outreach Efforts 15000 600 800 200 2 0 - ell ell 011 292 840 CornpLetion Fate 265 2 7 How did you hear about the survey? Community Events €2 10/ thQr City 1 e b lte Newsletter 17.3% 9 Santa Ana App 1 . % Social Media 3,% Budget Priorities If the City had additional resources, Which two (2) areas coo you believe should receive increased spending? Public Safety • Pavement Repairs:. Youth Programs Housing Challenges Mental Health and Addiction Services Other Arts and Cultural Programs 4 800 111?000 0 "Other" Category - Top 5 If the City had additional resources, which two (2) areas do you believe should receive increased spending? Parks, Trees, & Beautification 4gkh,110 More parks, green space, street trees, playgrounds, cleaner storefronts, and graffiti removal � AAA Street Insfrastructure, Alleys, & Parking 7� Better lighting, repaired sidewalks and alleys, and more accessible neighborhood parking 0a1DCode Enforcement Stronger enforcement of property upkeep, noise complaints, and unpermitted uses Senior Services More programs, wellness activities, and resources for older adults �0 Community Events &Activation More citywide events, free programming at parks, and activation of public spaces Areas for Budget Cuts If the City had to rrrahe budget cuts, which two (2) areas would you be most willing to reduce spending? Arts and Cultural Programs Housing Challenges Pavement Repairs Mental Health and Addiction Services Other Youth Programs 0 200 41 j 979 C� 9 General Fund Overview NMI E D� I Updated General Fund Outlook Noun the deficit was reduced from $19M to $13M following April 7 Eorly Direction Net Revenue Adjustments CPI -based increases +$o.gEM, partially offset by -$1.2M sales tax reduction per latest consultant update Net Expense Adjustments OC Streetcar $0.5M VS. $2.0K contracts h [d flat: equipment repLacerrent not funded offset by higher pension contribution ($0925M) $5.75M U General Fund Reconciliation Total Recurring Revenues Total FY2026-27 Spending Baseline (Recurring) Estimated Deficit Potential Balancing Options Remaining fining Deficit Estimated Ending Balance as of June 30, 2023 (as reported in the Mid -Year Budget Update on March 3, 2026) Less 1 % Reserve Proposed One -Time Spending Proposed FY26-27 Contribution to Pension Stabilization Account Estimated Available Spendable Balance (One -Time) 425,234,698 (438)277)270) $(13,0429572) 8)372)455 $(4767OP117) 86,109,761 (76Y709)761) (41900,000) (1)500,000)� $350002000 11 Z4 m 1 Z4 19 REVENUE 13.0% SALES TAX 11.8% � : I Mol F2 "on, W& fm k4 13.3% 0 $2.56M 0 0 XPENDITURES 600% .LABOR COSTS 707% aronosed Chanc $14*85M $24.49M PENSION COSTS & LIABILITY t 17*9% CONTRACT SERVICES (OCFA only) 3% $1.55M Animal Shelter STAFF ACTIONS Review Shelter contract terns for cost-ntrL opportunities and review muni i al, code to identify potential regulatory changes for over -the - county stray drop-offs Consider licensing pet cats, with a no -cost first -year license for adoptions Take proactive steps to acquire unlicensed pet information to increase Licensing revenue ImpL rn nt a public information campaign on how r to use the Animal Shelter Adopt the f LL i n : • An ordinance prohibiting cat -colony feeding to reduce the unintended impacts of attracting other wildlife to the food source * A Trap- Neuter- F l as TNI program for cats with no -cost spay and neuter services Consider additional veterinarian staff at the Zoo to be available for both no - cost and Lover -cost pay spay and neuter services Research Long -terra solutions to control costs and potentially improve overall service Levels 1 Historic Resources Commission HISTORIC REGISTER CATEGORIZATION / APPLICATION $500 Current cost of H RC program FULL RECOVERY $71jo �.. HISTORIC PROPERTY PRESERVATION AGREEMENT $2,945 $10 0, 0 0 0 Currently offset by fees ($46)000) If Rolled Over to Planning Commission Additional savings from elimination of commissioner stipend costs ■ ■ ■ ■ FULL RECOVERY EF Y $5,88; IIIIII flllll ■tisii�r,r,r,�--- 17V go Revenue JI Cost Recovery $ o= 103 1 Transient Occupancy Tax (TOT) Rates 11% Current TOT Fate 33 Active hotels generating TOT revenue FY22=23 Actual FY23=24 Actual FY24=25 Actual $10,477,648 $915041,727 $9,475 3 Ij FY25=26 Estimated $9,500,,000 RECENT TOT COLLECTIONS ORANGE COUNTY TOT FATE COMPARISONS Paramedic Service Charges OC PEER RANGE $1,852=$3 200 depending on service lL F TRANSPORTS UNAFFECTED 8695% covered by Medi r edi-Cal/ private insurance Staff Recommendation Align paramedic service charges with Orange County EMS (OCEMS) rates to better reflect regional standards. This adjustment is not expected to materially increase out-of-pocket costs for most patients. This change is estimated to generate $700,000 annually and is included in the City's proposed balancing measures. I BLS (Base) ALS (Emergency) ALS 2 (Higher Acuity) Mileage (per mile) $10254 $1,485 $1s485 $23 0 $20517 $3,049 $3,049 $26 ti f $11,852- $2,041 -$3r200 $2p041 - $3r200 $10-$27 1 Santa Ana Stadium Rental Fees Proposed Capital Improvements: $1*6M * Replace security fencing • Refurbish upper concourse re treer • Demolish snack shack • Install food truck infrastructure Locker Room Rehabilitation - Unfunded* Estimated Cost. 'Nigh cost for low revenue return $2oo M I C Toy Drive y Revival Church SeC l Su eer Festival ama. n America Leyendas vs. Leyendas Del Morelia Soccer Match Peachtree Concert Series Total 0 205 20 4905 $111459 $201047 $11387 $501607 $83JI500 W Technology Fee (In Developments • Staff is currently finalizing a proposed Technology Fee, Which Would be a new cost recovery fee, & is currently being evaluated for the first time • Early estimate is 7-8% per permit o Generate approximately $7ooK-$800K annually These estimates are preliminary & will be refined as implementation details are finalized Council Direction Requested Shall staff f include the Technology Fee in the Miscellaneous Fee Schedule in the proposed budget? Sober Living Homes Residential Care Facilities • State -regulated IF' • Provide some form of med at or mental health care Not subject to local Ordinance or local business tax • City has limited regulatory auth over these facilities 1 Sober -Living domes • Not state -regulated • Subject to the City's business tax • In August 2025, City Council updated the Municipal Code to impose regulatory standards and require use permits depending an size and nature Potential Council Direction ■ ■ � -W =M& is City Council could direct staff to pursue nuisance abatement for both facility types, with the potential to recover abatement costs, including attorney fees • This approach Will require a significant level of staff time, documentation, and a Lengthy Legal process 20 C)ne-Time Resources w■■ MR, 0 1 One -Time General Fund Resources Of $11.6M in identified one-time resources, $9.4M is available for one-time spending, after shifting $2..2M to reserves (18% requirement), and $3. OM is allocated for City Council direction Additional contributions to Workers' Liability /Risk Management Compensation or General Liability reserves Infrastructure / Facilities Pension Stabilization Service Stabilization Remaining Available (City Council Priorities) One-time repairs and improvements t City -owned facilities One -tire contribution to the Pension tkilitln Account (Section iiS Trust) One-time support for the residential street sweeping program To be determined City Council Total One -Time Resources $2F0001000 $2F0001000 $115001000 $3100011000 $9,400#000 22 Unfunded IX Time Needs for Consideration Activating Bristol/Wilshire - Potential Improvements (City Council Could Select One of the Following Options) Splash Pads Splash Pad Cost Pre -fabricated Restroom Utilities General Site Improvements Mini Pitch Pump Track Dog Park Fitness Zone $31900IT000 $2,500,000 $650,000 $250,000 $500,000 $1501,000 $500F000 $2001,000 $1001,000 k 1 # k .4W!r op Pit ' 441[ --�s 2 More Unfunded IX Needs for Consideration t 1 ■ ■ l0 Washington Square land purchase (for future park development) 3 pre -fabricated restrooms at Centennial Park Specific plan for two Genera! Plan Focus Areas ($450K each) Cabrillo Park restroom &general site improvements Alton Bike Trail lights &cameras Street lights @ 18th &Jefferson Cement foundation for privately funded padel courts at Thornton Park (racket sport similar to tennis & pickleball, played on a smaller enclosed court Edna Park shade structure Street lights at Harvey &Carol Cul-de-Sacs Adjacent to Lillie King Park Hotel market demand, investment, and optimization study (consultant services) $4,000FOOO $1,50,000 $9001,000 $650,000 $600,000 $350,000 $300,000 $250,000 $1001,000 $1001,000 W Cannabis Public Benefit Fund 0040 ►rI 25 Cannabis Public Benefit Fund Proposed FY 26-27: $8,544,000 a Youth Services (52%), ro Enforcement Services (48%) Library Staffing &Support Hotspots and Chromebook Data Plans Digital Subscriptlons & Content Book Mobile Library `youth Programs & Event Recreation & Zoo Staffing & Support Internship Program Wages & Support Teen Excursions Aquatics Program & Maintenance ZOO and You Eccenter Recreation Youth Programs & Service Total City Attorney Staffing & Support Code Enforcement Staffing& Support Code Enforcement Equipment & Supplies Police Staffing & Support Police Contracts, Equipment, & Supplies Evidence Warehouse Finance Collections Staffing & Support Total. Grand Total $ 230 $ 401080 $44,700 $08,70 $18 0,440 $,,470 10 6,40 $S5, 0 0 0 $807000 $40a000 $22X0 $14 ,840 4,442,O O $2 0,120 $1,41, 040 $4,0 $1,71,220 1f,0 $24, 0 0 $12,470 $4,101,0 8,5";000 26 Next Steps w■■ IN 0 7 Balancing Measures Identified M Revenue Adjustments o Cost recovery increases- credit card fees, technology fee, paramedic revenue Workforce Adjustments • Defunding Long-term vacant positions ($2.0 million) • Reducing part-time staffing ($2.0 million) PubLic Works Contracts & Other Reductions $1.3 Million $4.0 Million $3.3. Million • Public Works maintenance contract service reductions ($1.9 million) • Other recommended programs and service changes ($1.2 millions *See Exhibit 3 for additional detail 28 Recommendation on Remaining Continuing balancing measures... aLance MUST HAVES Mandates required by lava, Memoranda of Understanding (MOU's), bond covenants, public safety obligations, and land use regulations w SHOULD HAVES Core services that protect City resources and minimize liability exposure K I C �-: �- LI-) [71-zkv r- 'S� Programs and services that are not legally required but enhance the quality of life MAY .JUNE Next Steps May 2026 May 5 (Today) Budget Workshop - May 5, 2026 After tonight Staff refines draft Budget based on direction received May:Lq Proposed budget shared with City Council for further direction Optional Workshop — May 12,13, or 15 Dedicated budget Workshop if directed by City Council Yl: .JE mmmmmmm mmmmmmm mmmmmmm mmmmmmm mmmmmmm