FISCAL YEAR 2024/25
MID-YEAR BUDGET UPDATE
ANAHEIM.NET/MYCITYBUDGET
1 • General Fund Five-Year Forecast
• General Fund Overview
• Goals, Strategies and Service Highlights
• Looking Ahead
Overview
ANAHEIM.NET/MYCITYBUDGET
2 FY 2024/25 Adopted Budget
ANAHEIM.NET/MYCITYBUDGET
Enterprise Funds
40%
General Fund
21%
Internal Service
18%
Special
Revenues
13%
Other Restricted
4%
Capital Projects
2%
Other General
Purpose
2%
$2.3B
3 FY 2024/25 Adopted Budget
ANAHEIM.NET/MYCITYBUDGET
Enterprise Funds
40%
General Fund
21%
Internal Service
18%
Special Revenues
13%
Other Restricted
4%
Capital Projects
2%
Other General
Purpose
2%
4 ANAHEIM.NET/MYCITYBUDGET
General Fund Five- Year Forecast
FY 2024/25 FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29
Adopted Projected Projected Projected Projected
Operating Sources
Revenues
TOT 270.6$ 282.7$ 292.2$ 301.0$ 309.9$ Sales and Use Taxes 108.0 111.5$ 115.0 118.2 121.2 Property Taxes 108.9 112.5$ 115.8 118.6 121.0 Other Revenues 96.8 95.7$ 97.3 98.6 101.0 Transfers In 22.7 26.0$ 23.7 23.8 23.5 Total Sources 607.1 628.5$ 644.0 660.2 676.7 Labor 340.6 353.2$ 361.3 367.8 373.7 Other Operating Costs 150.3 153.4$ 158.2 160.6 164.9 Transfers Out 158.6 163.0$ 165.5 122.7 27.4 Total Uses 649.5 669.6$ 685.0 651.1 566.0 Operating Deficit (42.4) (41.1) (41.0) 9.1 110.7 Use of Bond Proceeds 42.4 36.3
Total Change in Reserves - (4.8)$ (41.0)$ 9.1$ 110.7$ 5 FY 2024/25 Adopted General Fund Budget
ANAHEIM.NET/MYCITYBUDGET
Transient
Occupancy
Taxes
42%
Sales and
Use Taxes
17%
Property
Taxes
17%
Business
License/Pro
perty
Transfer Tax
1%
Fees &
Permits
7%
Other
Revenues
13% Transfers
from Other
Funds
3%
Personnel
Services
53%
Other
Operating
22%
Debt
Service
<1%
Capital
Outlay
1%
Transfers to
Other
Funds
24%
$649.5
Sources
$649.5
Uses
6 ANAHEIM.NET/MYCITYBUDGET
Tax rate = 15% of room sale
Locally controlled, city collects 100% monthly
Stays of less than 30 days
Corporate
Group & Event
Leisure
Transient Occupancy Tax
7 ANAHEIM.NET/MYCITYBUDGET
FY 2024/25 Adopted General Fund Budget
Transient
Occupancy
Taxes
42%
Sales and Use
Taxes
17%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees &
Permits
7%
Other
Revenues
13% Transfers
from Other
Funds
3%
Transient
Occupancy
Tax
$270.6M
8 9
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25 Adopted FY 25 Projected
Transient Occupancy Tax (in millions)
FY 2022/23
Actuals
FY 2023/24
Actuals
FY 2024/25
Adopted
FY 2024/25
Projected
Tax $224.4M $247.6M $270.6M $240.7M
Y/Y % 4.3% 10.4% 9.3% (11.1%)
Sales & Use Tax
Business to
Business
18%
Miscellaneous
1%
Construction
14%
Transportation
17%General Retail
30%
Food Products
20%
Collected by the
State, remitted
quarterly
City piece is 1% of
purchase price
Tax applies to state
of tangible property
10 ANAHEIM.NET/MYCITYBUDGET
Sales & Use
Tax
$108.0
FY 2024/25 Adopted General Fund Budget
Transient
Occupancy
Taxes
42%
Sales and Use
Taxes
17%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees &
Permits
7%
Other
Revenues
13% Transfers
from Other
Funds
3%
11 $-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25 Adopted FY 25 Projected
Sales & Use Tax (in millions)
12 FY 2022/23
Actuals
FY 2023/24
Actuals
FY 2024/25
Adopted
FY 2024/25
Projected
Tax $108.2M $107.8M $108.0M $109.4M
Y/Y % 4.3% (0.3%) 0.2% 1.3%
ANAHEIM.NET/MYCITYBUDGET
School
Districts
46%
City
Government
20%
County
Government
13%
Special
Districts
11%
Redevelopment Property
Tax Trust Fund (RPTTF)
10%
Basic Levy = 1%
County Collects, remitted semi-annually
Basic Levy Shared Among Tax Entities
City Share is approximately 20%
Property Tax
13 ANAHEIM.NET/MYCITYBUDGET
Property
Tax
$108.9
Transient
Occupancy
Taxes
42%
Sales and Use
Taxes
17%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees &
Permits
7%
Other
Revenues
13% Transfers
from Other
Funds
3%
FY 2024/25 Adopted General Fund Budget
14 $-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
FY 19
Actual
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25 Adopted FY 25 Projected
Property Tax (in millions)
15 FY 2022/23
Actuals
FY 2023/24
Actuals
FY 2024/25
Adopted
FY 2024/25
Projected
Tax $99.4M $102.0M $108.9M $106.4M
Y/Y % 5.2% 2.6% 6.8% (2.3%)
ANAHEIM.NET/MYCITYBUDGET
Transient
Occupancy
Taxes
42%
Sales and Use
Taxes
17%
Property Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees & Permits
7%
Other Revenues
13% Transfers from
Other Funds
3%
FY 2024/25 Adopted General Fund Budget
16 Business
License/Property
Transfer Tax
5%
Fees & Permits
29%
Use of Money &
Property
29%
Fines, Forfeitures
and Penalties
2%
Reimbursements
6%
Intergovernmental
6%
Intragovernmental
Service Charges
9%
Transfers From
Other Funds
14%
FY 2024/25 Adopted General Fund Budget
17 General Fund Uses & Expenditures
% of Expenditure
Keeping Us Safe
Police 39.8%
Fire & Rescue 23.8%
Ensuring Quality of Life
Community Services 10.0%
Housing & Community Development 3.1%
Planning & Building 6.4%
Providing the Necessities
Public Works 7.3%
Public Utilities 0.5%
Administering Efficient Government
City Council 0.3%
City Administration 1.6%
City Attorney 2.4%
City Clerk 0.6%
Supporting Activities
Finance 3.3%
Human Resources 0.9%
Total 100.0%
Administering
Efficient
Government
4% Supporting
Activities
3%
Ensuring
Quality of Life
15%
Keeping Us
Safe
48%
Providing the
Necessities
6%
Transfers to
Debt Service
23%
Transfers to
Economic
Development
<1%
Transfers to
Other Funds
<1%
18 Maintain
Financial
Responsibility
Support financial
health through long-
term planning,
budgeting, cost
recovery, and
increased revenue.
Enhance
Livability
Create an Anaheim
where neighborhood
quality of life needs
are proactively
identified and
addressed.
Invest in
Infrastructure
and Amenities
Plan for future
facilities, amenities,
and infrastructure to
benefit all of
Anaheim, and
promote the effective
use of existing
facilities through
maintenance and
repair.
Foster a High-
Performing
Organization
Create a strong team
of dedicated
employees who
support the
community through a
commitment to local
government best
practices, and
employee
development, support
and retention.
Support Public
Safety
Implement a broad
range of strategies to
ensure Anaheim is a
safe city.
Promote Economic
Development and
Tourism
Pursue strategic
economic development
initiatives that attract and
retain businesses,
promote job creation,
and provides a strong,
diverse local economy
for Anaheim.
Citywide Goals and Strategies
GOAL A
GOAL B
GOAL C
GOAL D
GOAL E
GOAL F
19 Current Year Highlights – Community Services
Pearson Park
Amphitheatre
Gallery – Anaheim
Hills Golf Club
Needs Assessment
Surveys
Riverdale Park
Neighborhood
Clean - up Campaign
Center Greens
20 GOAL B
Enhance
Livability
GOAL C
Invest in
Infrastructure
Current Year Highlights – Police & Fire
21 Safe Schools Program
HALO Unit
Enhance
Livability
GOAL B
Support Public
Safety
GOAL E
Ambulance Program
First Firewise USA
GOAL A
Maintain Financial
Responsibility
Current Year Highlights – Public Utilities & Public Works Linda Vista Groundwater
Site
22 Fire Station 4
Before
After
HALO/ALRT (Anaheim Litter Removal Taskforce)
Invest in
Infrastructure
and Amenities
GOAL C
Enhance
Livability
GOAL B
Beach Boulevard Undergrounding
Current Year Highlights – Planning, Housing, & Economic Dev’t OCVIBE
Invest in
Infrastructure
and Amenities
GOAL C
Promote Economic
Development and Tourism
GOAL F
Miraflores
Azure Apartments
Enhance Livability
GOAL B
GOAL A
Maintain Financial
Responsibility
23 Little Arabia Placemaking
Economic Outlook
• California economy
stays resilient
• Building permits
expected to rise
• California income
11% above median
• Tariffs less likely to
impact California
The Good
• Rising uncertainty
from policy changes
• Inflation remains high
• Tariffs may impact
consumer spending
• California
unemployment
exceeds U.S. rate
The Bad
• Reduction/elimination
of federal funding
• Trade wars and/or
recession possibility
• Tariffs may be
damaging nationally
• Potential labor
shortages
The Ugly
24 Preliminary Proposed
ANAHEIM.NET/MYCITYBUDGET
Difference from Adopted 5-Year Forecast
Projected
FY 2024/25
Preliminary
Proposed FY
2025/26
What’s Changed
TOT
Property Tax
Other Revenues
Sales Tax
Labor Costs
Other Operating Costs
Transfer Out (LPMR)
Net Change
Remaining Bond Proceeds
25 ($29.9)
(2.5)
22.2 1.4
6.3 10.0
(16.7)
($8.4)
Budget Calendar
26 April May June
• City Manager
Review
• BIT and City
Council Review
• FY 2025/26
Proposed
Budget is
Published
• Budget
Workshops
• Public Hearing
• City Council
Budget
Adoption
QUESTIONS
27