200 S. Anaheim Blvd.
Suite #733
Anaheim, CA 92805
Tel: (714) 765-162
Fax: (714) 765-5164
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
CITY MANAGER’S OFFICE
DATE: JUNE 27, 2023
FROM: CITY MANAGER’S OFFICE
SUBJECT: RESOLUTION ADOPTING THE FISCAL YEAR 2023/24 BUDGET ATTACHMENT (Y/N): YES ITEM # 28-A
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, following a public hearing, by Resolution, adopt the Fiscal Year (FY) 2023/24 Budget as submitted, with any revisions made by the City Council.
DISCUSSION:
On May 31, 2023, the Proposed FY 2023/24 Budget was made available to the Mayor, City Council, and the public for inspection in accordance with Article XII of the City Charter. Budget workshops were held on June 13 and 27, concluding with a public hearing on June 27 in which the budget was presented and the public was provided the opportunity to comment. Additionally, the Budget, Investment and Technology Committee (BIT) held public meetings on May 24, June 7, and June 21 to discuss the budget and provide additional opportunities for public comment.
The Proposed FY 2023/24 Citywide Budget is $2,103,805,364, an increase of 6% from the current adopted budget. Proposed General Fund expenditures total $441,244,577, an increase of 8%. The General Fund increase is due to personnel costs for the funding of previously frozen and unfunded positions, new positions that have been added, liability self-insurance increases, homeless shelter operating costs, and increases for safety contracts related to a new state/federal Public Provider Ground Emergency Medical Transport (PP-GEMT) Intergovernmental Transfer (IGT) program, which will be offset by an increase in EMS transport cost recovery revenues.
Anaheim’s tourism has rebounded more quickly and stronger than expected allowing the proceeds of the working capital bonds issued in 2021 to last much longer than originally anticipated. A structural deficit remains in the General Fund, but the bond proceeds allow us to balance the operating plan across all five years. With the strength of TOT and sales tax revenue in the Anaheim Resort, Lease Payment Measurement Revenues (LPMR) may be retired as early as 2028 freeing up resources to balance the projected operating deficit. A strategic planning effort is underway to plan for the use of additional resources once the Resort Bonds are defeased, with the top priority being the repayment of the Working Capital bonds. In the meantime, the Working Capital bond proceeds provide a bridge allowing the preservation and expansion of services in support of key Resolution Adopting the Fiscal Year 2023/24 Budget
June 27, 2023
City Council and community priorities. Staff has recommended additional funding in support of ongoing and one-time service enhancements that would meet the immediate needs of the community and the organization.
Ongoing service enhancements include $2.1 million for Police and Fire, which would provide additional funding for school resource officers and restoration of 6 Firefighter positions to Anaheim Fire & Rescue. $3.6 million would fund the creation of a second multi-department homeless task force, preserve the services of Be Well OC and provide staff to increase programming for our senior population. Finally, $300,000 would provide funding to maintain our street trees.
One time funding opportunities include $3.3 million to over hire 12 Police Officers and upgrade police dispatch consoles, $4.6 million for improvements to our parks, continuation of the Business Storefront Improvement program and one-time equipment costs related to the second homeless task force. In support of infrastructure improvements, $5.5 million is recommended for sidewalk replacement, storage facilities for Police and Public Works and citywide landscape rehabilitation. Finally, $3.2 million would fund a citywide strategic plan, a comprehensive classification and compensation study, the special election and an upgrade of the city’s permitting system.
IMPACT ON BUDGET:
With City Council’s approval of recommended supplemental funding requests, the Citywide budget would be $2,127,505,364 and General Fund budget appropriations would total $462,144,577, except as otherwise revised by the City Council.
Respectfully submitted,
Jim Vanderpool
City Manager
Attachment:
1. Resolution