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Home My WebLink AboutPresentation - Item 23 - Budget Public HearingCITY COUNCIL PUBLIC HEARING CITY COUNCIL PUBLIC HEARING 02 June, 2026 1 TONIGHT’S RECOMMENDATIONS TONIGHT’S RECOMMENDATIONS RECEIVE AB 2561:PUBLIC REPORTING OF VACANT CITY POSITIONS APPROVE THE FIRST READING TO ADOPT THE BUDGET FOR FY26-27 ADOPT THE CITY’S CLASSIFICATION & COMPENSATION RESOLUTION ADOPT THE UNIFORM SCHEDULE OF MISCELLANEOUS FEES RESOLUTION ADOPT THE 7-YEAR CAPITAL IMPROVEMENT PROGRAM DEPOSIT $1.5 MILLION INTO SECTION 115 PENSION TRUST FUND 2 AB 2561: PUBLIC REPORTING OF VACANT CITY POSITIONS 3 VACANCY RATES VACANCY RATES Assumptions: •Total positions include City Attorney •CASA contains UC representation; POA/PMA contains all sworn & professional staff; SAMA contains all AM & MM staff •All assumptions are based on position titles, not assignment titles 4 RECRUITMENT EFFORTSRECRUITMENT EFFORTS 5 Digital marquees Billboard s TV Channel Advertisements Career fairs Weekly social media posts on careers at the City Online job boards and channels Newsletters and website Information at community events RETENTION STRATEGIES RETENTION STRATEGIES The City has several programs to increase the capabilities of employees and prepare them to promote into other positions within the City. •Mentoring •Training: Technical, Leadership, Soft Skills •Coaching We also have robust programs to improve and maintain the health and wellbeing of employees and their families: •Wellness •Safety training •Employee Assistance Program 6 GENERAL FUND OVERVIEW 7 $4 million in one-time spending was added, including $3 million in the General Fund and $1 million in restricted funding WASHINGTON SQUARE PARK LAND PURCHASE (PARTIAL FUNDING) CAPITAL IMPROVEMENT PROGRAM (CIP) GENERAL FUND ADDITIONAL SIDEWALK MAINTENANCE GENERAL FUND HOTEL FEASIBILITY STUDY GENERAL FUND $800 ,000 $1 ,950 ,000 $450 ,000 $100 ,000 $500,000 $200,000 General Fund Cannabis Fund CHANGES SINCE MAY 19CHANGES SINCE MAY 19 8 (DETAILS ON NEXT SLIDE) $1,500,000 A & D Fund ADDED CIP PROJECTS 9 PROJECT PROPOSED FY26-27 Cabrillo Park Restroom & General Site Improvements $650,000 Alton Bike Trail Lights & Security Cameras $600,000 Streelights at 18th & Jefferson $350,000 Edna Park Shade Structure $250,000 Streetlights at Harvey & Carol Cul de Sacs $100,000 Total $1,950,000 After the May 19 Budget Work Study Session, the following CIP projects were added, increasing the proposed CIP budget by $1.95 million to a total of $27,288,540: GENERAL FUND SUMMARY GENERAL FUND SUMMARY 10 *Other GF Revenue: Fines, Intergovernmental Investment Earnings, & Miscellaneous Income GENERAL FUND REVENUES -$427.3MGENERAL FUND REVENUES -$427.3M 11 *Other: Cannabis Set-Aside, Debt Service Payments, Museum Support, Fund Subsidies, Project Transfers **Administration: Includes City Attorney, City Council, City Manager, City Clerk, Finance, Human Resources & Non- Departmental Note:Chart reflects $7.7M in one-time spending and does not include the $1.5M contribution to the Pension Trust GENERAL FUND EXPENDITURES -$435MGENERAL FUND EXPENDITURES -$435M 12 Recurring amounts only Debt pay-offs Measure X rate decrease (1.5% to 1.0% in April 2029) Inflationary increases FY27-28 and later Labor increases based on MOUs Orange County Fire Authority contract increase of 4.5% annually Employee pension unfunded liability contributions as estimated by CalPERS Contributions to, and uses of, the Pension Stabilization Account have been included to smooth the pension debt fluctuations ASSUMPTIONS GENERAL FUND 10-YEAR OUTLOOKGENERAL FUND 10-YEAR OUTLOOK 13 CITYWIDE BUDGET 14 CITYWIDE BUDGET -$786.2MCITYWIDE BUDGET -$786.2M 15*Excludes Internal Service Funds WORKFORCE CHANGES 16 FULL-TIME CITYWIDE STAFFING FULL-TIME CITYWIDE STAFFING 17 The deletion of 20 positions contributed to eliminating the General Fund structural deficit PREVIOUSLY UNFUNDED POSITIONS ONE ARPA -FUNDED BUYER (FINANCE) BUDGET BALANCING MEASURES 4 positions were unfunded in FY25-26 to balance the budget Administrative procedure to remove from the City’s authorized headcount All ARPA funding must be exhausted by December 31, 2026 Proposed deletions only include vacant positions STAFFING CHANGES -DELETIONS STAFFING CHANGES -DELETIONS 18 Remaining adjustments are primarily administrative “housekeeping” changes to align position titles with current responsibilities CITY ATTORNEY + 3 + 6PUBLIC WORKS REMAINING ADJUSTMENTS 2 Paralegals & 1 Assistant City Attorney Support high-volume and complex public records requests 4 Maintenance Workers (Gas Tax) -pothole & street repair in-house 2 Equipment Operators (Sanitation) -expand in-house street sweeping STAFFING CHANGES - ADDITIONS & REALLOCATIONS STAFFING CHANGES - ADDITIONS & REALLOCATIONS 19 RESTRICTED FUNDS GENERAL FUND MISCELLANEOUS FEE SCHEDULE 20 MISCELLANEOUS FEE UPDATES MISCELLANEOUS FEE UPDATES NEW FEES •Technology fee (permitting & development services) •Credit card processing fee •Rental fees -picnic shelters, events & rooms spaces •Expedited review deposits & tiered fees by project size, roadway type, or service level PARAMEDIC SERVICE CHARGES Aligned with Orange County EMS rates to reflect actual service costs STADIUM FEES Increase fees by 14% to align with market rates 4% ACROSS -THE -BOARD INCREASE FOR ALL OTHER FEES 21 Reflects negotiated employee compensation increases for FY26-27 CIP & PROJECT ACCOMPLISHMENTS 22 CAPITAL IMPROVEMENT PROGRAMCAPITAL IMPROVEMENT PROGRAM 23 CIP ACROSS THE CITY •Historic Cypress Fire Station •Memorial Park Aquatic Center •Portola Splash Pad •Santa Anita Park Renovation •Bristol-Tolliver Street Urban Greening Project(Salvador Quintana Park) •Centennial Park Improvements •El Salvador Park Restroom Improvements RECENTLY COMPLETED AND IN-PROGRESS RECENTLY COMPLETED AND IN-PROGRESS •17th St Rehab: Grand to Cabrillo Park •Alton Bike Tail & Security Cameras •Broadway St Rehab: 17th to Main Place •Cabrillo Park Restrooms •Edna Park Shade Structure •Local Street Preventive Maintenance (Citywide) •Logan/Chepa’s Park Construction •MacArthur Blvd Rehab: Harbor to Fairview 24 CIP ACROSS THE CITY NEWLY ADDED Completed and In Progress Coming Soon Project Status NOTABLE POLICY ACCOMPLISHMENTS NOTABLE POLICY ACCOMPLISHMENTS NEXT STEPS JUNE 16, 2026 11 22 33 Approve the Second Reading of the Ordinance to Adopt the FY26-27 Budget Adopt Resolution Establishing the Appropriations Limit for FY26-27 Adopt Resolution Approving the City’s Annual Statement of Investment Policy for FY26-27 26 New Fiscal Year Begins Survey Remains Open All Year JULY 1, 2026ADOPTION NEXT STEPS