FISCAL YEAR 2023/24
MID-YEAR BUDGET
UPDATE
MARCH 26, 2024
Anaheim.net/MyCityBudget
1 Anaheim.net/MyCityBudget
Overview
• General Fund Overview
• General Fund Five-Year Forecast
• Citywide Projects
• Budget Calendar
2 FY 2023/24 Adopted Budget
Citywide Expenditures
Enterprise Funds
39%
General Fund
22%
Internal Service
18%
Special Revenues
13%
Other Restricted
4%
Capital Projects
3%
Other General
Purpose
1%
$2.1B
3 FY 2023/24 Adopted Budget
Citywide Expenditures
Enterprise Funds
39%
General Fund
22%
Internal Service
18% Special Revenues
13%
Other Restricted
4%
Capital Projects
3%
Other General
Purpose
1%
4 FY 2023/24 Adopted General Fund Budget
Transient
Occupancy
Taxes
40%
Sales and
Use Taxes
19%
Property
Taxes
17%
Business License/Property
Transfer Tax
2%
Fees &
Permits
7%
Other
Revenues
9%
Transfers
from Other
Funds
6%
Personnel
Services
53%
Other
Operating
23%
Debt
Service
<1%
Capital Outlay
1%
Transfers to
Other Funds
23%
Sources
$589.7
Uses
$597.0
5 Tax rate = 15% of room sale
Locally controlled, city collects 100% monthly
Stays of less than 30 days
Transient Occupancy Tax
6 FY 2023/24 Adopted General Fund Budget
Financial Sources by Category
TOT
$236.3M
7 Transient
Occupancy
Taxes
40%
Sales and
Use Taxes
19%
Property
Taxes
17%
Business License/Property
Transfer Tax
2%
Fees &
Permits
7%
Other
Revenues
9% Transfers
from Other
Funds
6%
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
FY 17
Actual
FY 18
Actual
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Adopted
FY 24
Projected
Transient Occupancy Tax (in millions)
FY 2021/22
Actuals
FY 2022/23
Actual
FY 2023/24
Adopted
FY 2023/24
Projected
Tax $177.1M $224.4M $236.3M $254.3M
Y/Y % 256.1% 26.7% 5.3% 7.6%
8in millions
Transient Occupancy Tax (in millions)
9 • Measure J took effect January 1, 2023
• Impact not fully known at time of voter approval
• TOT from parking revenue and OTCs exceeding expectations • Expected to normalize beginning January 2024
Month Year-over Year Change
2023 vs. 2022
January 33.5%
February 35.6%
March 28.7%
April 19.2%
May 17.4%
June 9.4%
July 10.5%
August 7.2%
September 8.3%
October 19.2%
November 22.0%
December 32.9%
Total 19.4%
Sales & Use Tax
General Retail
30%
Construction
14%
Business to Business
18%
Food Products
20%
Transportation
17%
Miscellaneous
1%
-6%
-5%
-3%
3%
-2%
22%
Collected by the State, remitted quarterly
City piece is 1% of purchase price
Tax applies to state of tangible property
10 FY 2023/24 Adopted General Fund Budget
Financial Sources by Category
Sales & Use Tax
$112M
11 Transient
Occupancy
Taxes
40%
Sales and Use
Taxes
19%
Property
Taxes
17%
Business License/Property Transfer
Tax
2%
Fees &
Permits
7%
Other
Revenues
9% Transfers
from Other
Funds
6%
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
FY 17
Actual
FY 18
Actual
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Adopted
FY 24
Projected
Sales & Use Tax (in millions)
FY 2021/22
Actuals
FY 2022/23
Actual
FY 2023/24
Adopted
FY 2023/24
Projected
Sales $103.4M $108.2M $112M $104.1M
Y/Y % 34.4% 4.6% 3.5% (7.0%)
12in millions
Property Tax
Basic Levy = 1%
County Collects, remitted semi-annually
Basic Levy Shared Among Tax Entities
City Share is approximately 20%
School Districts
46%
City
Government
20%
County
Government
13%
Special
Districts
11% Redevelopment Property Tax
Trust Fund (RPTTF)
10%
13 FY 2023/24 Adopted General Fund Budget
Financial Sources by Category
Property Tax
$100.9M
14 Transient
Occupancy
Taxes
40%
Sales and Use
Taxes
19%
Property
Taxes
17%
Business License/Property Transfer
Tax
2% Fees &
Permits
7%
Other
Revenues
9% Transfers
from Other
Funds
6%
Property Tax (in millions)
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
FY 17
Actual
FY 18
Actual
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22 Actual FY 23
Actual
FY 24 Budget FY 24 Projected
FY 2021/22
Actuals
FY 2022/23
Actual
FY 2023/24
Adopted
FY 2023/24
Projected
Tax $89.6M $99.4M $100.9M $102.1M
Y/Y % 3.8% 10.9% 1.5% 1.2%
15in millions
Transient
Occupancy Taxes
40%
Sales and Use
Taxes
19%
Property Taxes
17%
Business License/Property Transfer Tax
2%
Fees & Permits
7%
Other
Revenues
9%
Transfers from
Other Funds
6%
FY 2023/24 Adopted General Fund Budget
Financial Sources by Category 16
FY 2023/24 Adopted General Fund Budget
Business
License/Property
Transfer Tax
6%
Fees & Permits
31%
Use of Money &
Property
14%
Fines, Forfeitures
and Penalties
2%
Reimbursements
5%
Intergovernmental
5%
Intragovernmental
Service Charges
11%
Transfers From
Other Funds
26%
Other Revenues 17
General Fund Uses & Expenditures
% of Expenditure
Keeping Us Safe
Police 40.3%
Fire & Rescue 23.3%
Ensuring Quality of Life
Community Services 10.4%
Housing & Community Dev’t 0.4%
Planning & Building 6.5%
Providing the Necessities
Public Works 7.2%
Public Utilities 0.5%
Administering Efficient Government
City Council 0.3%
City Administration 3.8%
City Attorney 2.3%
City Clerk 0.8%
Supporting Activities
Finance 3.2%
Human Resources 1.0%
Total 100.0%
Administering
Efficient
Government
6%
Supporting
Activities
3%
Ensuring Quality
of Life
14%
Keeping Us Safe
49%
Providing the
Necessities
6%
Transfers to
Debt Service
21%
Transfers to
Economic
Development
1%
Transfers to
Other Funds
<1%
Uses
18 Expenditures
General Fund Five-Year Forecast
19 FY 2023/24 FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 Adopted Projected Projected Projected Projected
Operating Sources
Revenues
TOT
236.3$ 244.8 $ 253.2 $ 260.5 $ 268.2 $ Sales and Use Taxes 112.0 119.3 $ 125.2 130.9 136.3 Property Taxes 100.9 103.8 $ 106.9 109.5 111.6 Other Revenues 87.0 87.4 $ 89.0 90.4 92.4 Transfers In 36.9 28.2 $ 28.2 28.3 26.8 Total Sources 573.1 583.4 $ 602.4 619.5 635.4 Labor 318.2 328.4 $ 335.9 342.4 348.0 Other Operating Costs 143.9 142.0 $ 134.7 139.5 141.9 Transfers Out 134.9 146.9 $ 152.3 156.8 161.9 Total Uses 597.0 617.3 $ 622.9 638.7 651.8 Operating Deficit (23.9) (33.9) (20.5) (19.2) (16.4) Use of Prior Year Surplus 7.3 - - - - Use of Bond Proceeds 16.6 33.9 20.5 19.2 5.7 Total Change in Reserves -$ - - $ - (10.7) $ May not sum to 100% due to rounding
Current Year Highlights – Community Services
Active Adult ProgramBrookhurst Teen Center
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BBBBrrooookkkkhhhhuurrssttt TTTeeeenn CCCeennttteerr
Park Refresh Projects
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Peter MarshallCitrus Park
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Ross Park
Little People’s Park Mural
Tree Lighting at City Hall 20
Treeeeeeee LLLLLiiiigghhhhtttiiiinngg aattt CCCCiiiitttyy HHHHHaallllllllll Library Expansion Hours
Current Year Highlights – Police & Fire
Real Time Crime Center
Safe Schools Detail
Ambulance Program
Captain Safety Officers 21
Current Year Highlights – Public Utilities & Public Works Linda Vista Groundwater Site
Street Light Infrastructure Hardening
Clean CA
Euclid Street Rehab - Before
Euclid Street Rehab - After
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-
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22 Current Year Highlights – Planning, Housing & Community Dev’t Disneyland Forward
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23 Miraflores Affordable Housing Units
Center of Hope Apartments
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Economic Outlook
• Employment
• Financial
Conditions
• Stocks Higher
• Higher Wages
• Higher Return on
Investments
The Good
• Presidential
Election Year
• California Budget
Deficit
• Increase in
Unhoused
Population
• Growth Slowing
The Bad
• Housing Inventory
• High Interest
Rates
• Federal
Government
Interest Expense
• Decreasing
California
Population
The Ugly
24 Preliminary Proposed
Difference from Adopted 5-Year Forecast
Projected
FY 2023/24
Preliminary
Proposed
FY 2024/25
What’s Changed
TOT $ 18.0 $ 19.2
Property Tax 1.2 5.1
Other Revenues 14.1 2.7
Sales Tax (7.8) (11.3)
Labor Costs 4.6 9.1
Operating Increases 12.2 6.7
Transfer Out (LPMR) 8.7 6.6
Net Change $ 0.0 $ (6.6)
Remaining Bond Proceeds 79.3 38.8
25 June
Budget
Workshops
Budget
Hearing
City Council
Adoption
May
B.I.T and
City Council
Review
April
City
Manager
Review
Budget Calendar
26 Proposed
FY 2024/25
Budget is
published
27 Transient Occupancy Tax
28 Resort Improvement Bonds
Lease Payment Measurement Revenues
• All hotel properties in the City, excluding
certain Disney properties constructed prior
to 2009
3% of the 15% TOT rate
(i.e. 20% of all TOT)
• All TOT on Disney properties constructed
prior to 2009 and all Sales tax from Disney
properties over 1995 base ($10.5M), with
annual increases
100% of the TOT and Sales
Tax on Disney
• Disney properties over 1995 base ($0.9M),
with annual increase of 2%
100% of Property Tax on
Disney
$34.9
70.6 4.8
$110.3M
29