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Finance and Management Services <br /> www.santa-ana.org/finance <br /> Item # 24 <br /> City of Santa Ana <br /> 20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br /> May 19, 2026 <br /> TOPIC: Fiscal Year 2026-27 Budget Work Study Session <br /> AGENDA TITLE <br /> Fiscal Year 2026-27 Budget Work Study Session <br /> RECOMMENDED ACTION <br /> Discuss and provide further direction to staff. <br /> GOVERNMENT CODE §84308 APPLIES: No <br /> DISCUSSION <br /> The City Council first provided direction on the Fiscal Year 2026-27 (FY26-27) budget <br /> during the Early Direction session on April 7, 2026. Additional guidance was provided at <br /> the May 5, 2026 City Council Budget Work Study session. <br /> The purpose of this meeting is to provide the City Council with an opportunity to offer <br /> additional input on the draft FY26-27 budget, which has been posted for public review. <br /> The draft FY26-27 budget document is included as Exhibit 1 to this staff report. The draft <br /> budget document includes spending plans for all funds using available resources, <br /> including available fund balances and expected revenues. The draft document also <br /> includes the balancing measures presented on May 5, along with additional adjustments <br /> to balance the General Fund. The draft document does not yet include the $3 million <br /> one-time spending from the menu provided to City Council on May 5, as staff seeks <br /> clarifying direction as discussed in this report. <br /> Any revisions to the draft budget, including removing proposed balancing measures or <br /> adding new expenditures, would necessitate City Council direction for corresponding <br /> reductions in other areas to maintain a balanced budget. <br /> As reported on May 5, staff identified an estimated adjusted structural General Fund <br /> deficit of approximately $13 million. To address the deficit, the draft FY26-27 budget <br /> incorporates a combination of expenditure reductions, revenue adjustments, and <br /> refinement of internal service charges. The draft General Fund budget is balanced without <br /> full-time layoffs, employee furloughs, or the elimination of City services. Staff developed <br />