C I T Y C O U N C I L
B U D G E T W O R K S H O P
Anaheim.net/MyCityBudget
Proposed Fiscal Year 2025/26
1 O V E R V I E W
2 • Economic Outlook
• Proposed FY 2025/26 Budget
• General Fund Five-Year Forecast
• Administrative Departments’ Proposed Budgets
• Community Services
• Housing and Community Development
• Public Works
• Public Utilities
C I T Y W I D E G O A L S A N D S T R AT E G I E S
3 E C O N O M I C O U T L O O K
National economy has been resilient
• Consumer demand is stable
• Average earnings have increased
• Inflation has stabilized
• Federal infrastructure spending will boost growth
Challenging times ahead
• Recession concerns
• Potential negative tariff impacts
• Luxury spending and travel demand showing signs of strain 4 E C O N O M I C O U T L O O K
California faces several difficult issues
• Highest unemployment rates
• Instability in the home insurance market and other wildfire impacts • California budget deficit and risk of federal spending cuts Orange County tourism mixed signals
• John Wayne airport record usage decreased by 10%
• New development continues to dominate in the region
• Optimism for tourism with the upcoming Disneyland 70th Anniversary 5 F Y 2 0 2 5 / 2 6 P R O P O S E D B U D G E T
Enterprise
Funds
40%
General
Fund
22%
Internal
Service
19%
Special
Revenues
12%
Other
Restricted
4%
Capital
Projects
2%
Other General Purpose
1%
Citywide Expenditures
Funds Amount (in millions)
Enterprise Funds $967.8
General Fund 527.2
Internal Service 448.2
Special Revenues 281.9
Other Restricted 97.6
Capital Projects 58.5
Other General Purpose 28.6
Total: $2,409.9
6 F Y 2 0 2 5 / 2 6 C A P I T A L I M P R O V E M E N T P R O G R A M CIP By Funding Source and Project Type
Project Categories
Amount
(in millions)
Recreation, Parks &
Libraries $7.9
Downtown Projects &
Municipal Facilities 23.4
Commercial Entertainment
Venues 1.0
Electric Systems 111.1
Water Systems 22.2
Wastewater 32.6
Transportation
Improvements 70.4
Total $268.6
Enterprise
Funds
62%
Capital
Projects
Funds
21%
Special
Revenue
Funds
17%
Internal
Service
Funds
<1%
7 F Y 2 0 2 5 / 2 6 P R O P O S E D G E N E R A L F U N D B U D G E T Financial Sources by Category
Transient
Occupancy Tax
39%
Sales and Use
Taxes
18%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees, Permits & Other
Charges
9%
Other
Revenues
12%
Transfers From Other
Funds
4%
8 F Y 2 0 2 5 / 2 6 P R O P O S E D G E N E R A L F U N D B U D G E T Financial Sources by Category
Transient
Occupancy
Tax
39%
Sales and
Use Taxes
18%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees, Permits & Other
Charges
9%
Other
Revenues
12%
Transfers From Other
Funds
4%
TOT
$246.6M
9 T R A N S I E N T O C C U P A N C Y T A X
Financial Sources by Category
Tax rate = 15% of room saleLocally controlled, City collects 100% monthlyStays of less than 30 days Tax rate = 15% of room sale
Locally controlled, City collects 100% monthly
Stays of less than 30 days
Corporate
Group & Event
Leisure
10 T R A N S I E N T O C C U P A N C Y T A X
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25
Adopted
FY 25
Projected
FY 26
Proposed
FY 27
Projected
FY 28
Projected
FY 29
Projected
FY 30
Projected
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Proposed
FY 2026/27
Projected
FY 2027/28
Projected
FY 2028/29
Projected
FY 2029/30
Projected
Tax $247.6M $240.7M $246.6M $256.1M $265.0M $272.8M $281.0M Y/Y % Change 10.3% -2.8% 2.4% 3.9% 3.4% 3.0% 3.0%
11 F Y 2 0 2 5 / 2 6 P R O P O S E D G E N E R A L F U N D B U D G E T Financial Sources by Category
Transient
Occupancy
Tax
39%
Sales and Use
Taxes
18%
Property
Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees, Permits & Other
Charges
9%
Other
Revenues
12%
Transfers From Other
Funds
4%
Sales & Use
Tax
$115.0M
12 S A L E S & U S E T A X
Collected by the State, remitted quarterlyCity piece is 1% of purchase priceTax applies to state of tangible property Collected by the
State, remitted
quarterly
City piece is 1% of
purchase price
Tax applies to state
of tangible property
Business to
Business
18%
Miscellaneous
1%
Construction
14%
Transportation
17%General Retail
30%
Food Products
20%
13 S A L E S & U S E T A X
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25
Adopted
FY 25
Projected
FY 26
Proposed
FY 27
Projected
FY 28
Projected
FY 29
Projected
FY 30
Projected
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Proposed
FY 2026/27
Projected
FY 2027/28
Projected
FY 2028/29
Projected
FY 2029/30
Projected
Tax $107.8M $112.1M $115.0M $118.6M $122.6M $126.5M $130.1M Y/Y % Change -0.3% 4.0% 2.5% 3.1% 3.4% 3.1% 2.8%
14 F Y 2 0 2 5 / 2 6 P R O P O S E D G E N E R A L F U N D B U D G E T Financial Sources by Category
Transient Occupancy
Tax
39%
Sales and Use
Taxes
18%
Property Taxes
17%
Business
License/Property
Transfer Tax
1%
Fees, Permits & Other
Charges
9%
Other Revenues
12%
Transfers From Other
Funds
4%
Property Taxes
$110.8M
15 P R O P E R T Y T A X E S
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%
16 P R O P E R T Y T A X E S
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
FY 20
Actual
FY 21
Actual
FY 22
Actual
FY 23
Actual
FY 24
Actual
FY 25
Adopted
FY 25
Projected
FY 26
Proposed
FY 27
Projected
FY 28
Projected
FY 29
Projected
FY 30
Projected
FY 2023/24
Actual
FY 2024/25
Projected
FY 2025/26
Proposed
FY 2026/27
Projected
FY 2027/28
Projected
FY 2028/29
Projected
FY 2029/30
Projected
Tax $102.0M $106.4M $110.8M $114.5M $117.8M $120.7M $123.1M Y/Y % Change 6.3% 4.4% 4.1% 3.3% 2.9% 2.5% 2.0%
17 G E N E R A L F U N D U S E S & E X P E N D I T U R E S Administering Efficient
Government
4%
Supporting
Activities
3%
Ensuring
Quality of Life
15%
Keeping Us
Safe
50%
Providing the
Necessities
6%
Transfers to
Debt Service
20%
Transfers to
Economic
Development
<1%
Transfers to
Other Funds
<1%
Keeping Us Safe
Police 40.5%
Fire & Rescue 23.9%
Ensuring Quality of Life
Community Services 10.0%
Housing & Community Development 2.7%
Planning & Building 6.3%
Providing the Necessities
Public Works 7.1%
Public Utilities 0.4%
Administering Efficient Government
City Council 0.4%
City Administration 1.6%
City Attorney 2.5%
City Clerk 0.5%
Supporting Activities
Finance 3.3%
Human Resources 0.8%
Total 100%
Uses
18 Expenditures
G E N E R A L F U N D E X P E N D I T U R E B Y C A T E G O R Y Labor
70%
Other
Operating
29%
Debt Service
1%
Capital Outlay
<1%
19 P R E L I M I N A R Y P R O P O S E D G E N E R A L F U N D F I V E
Y E A R F O R E C A S T
FY 2025/26 FY 2026/27 FY 2027/28 FY 2028/29 FY 2029/30
Proposed Projected Projected Projected Projected
Total Revenues 582.5$ 601.7$ 619.0$ 636.6$ 653.8$ Transfers In 25.4 26.2 26.3 25.2 25.2 Total Sources 608.0 627.9 645.3 661.8 679.0 Total Expenditures 527.2 544.3 552.3 564.1 573.3 Transfers Out 144.7 114.4 27.2 27.3 27.4 Total Uses 671.9 658.7 579.5 591.4 600.7 Sources Over/(Under) Operating Uses (63.9) (30.8) 65.8 70.4 78.3 Working Capital Bond Proceeds 33.6
Use of $10M Debt Set-aside 10.0
Use of Hilton Parking Structure Sale Proceeds 20.3 15.8 Total Changes in Reserve - (15.0) 65.8 70.4 78.3 Beginning Reserves 76.3 76.3 61.3 127.1 197.4 Ending Reserves 76.3$ 61.3$ 127.1$ 197.4$ 275.9$ Reserves as % of Ongoing General Fund Expenditures 14% 11% 23% 35% 48% in millions 20
R I S K S T O G E N E R A L F U N D F I V E - Y E A R F O R E C A S T Big Three Revenues
Revenue Risks
Loss of Budgeted
Growth
Estimated Revenue Loss
per 1% Decline
Transient Occupancy Tax (TOT) $15.4 $2.5
Sales and Use Taxes 2.9 1.2
Property Taxes 4.4 1.1
Labor Agreements That Impact General Fund (estimated per 1% increase) Labor Group Contract Expiration FY 2025/26 FY 2026/27 FY 2027/28 Anaheim Municipal Employees Association
(AMEA) July 2025 $ 0.4
Anaheim Fire Association (AFA) June 2025 $ 0.6
IBEW Management January 2026 $ 0.1
Anaheim Police Association (APA) June 2026 $ 1.1
Anaheim Police Management (APMA) June 2026 $ 0.1
American Federation of State, County and
Municipal Employees (AFSCME) June 2027
No scheduled
increase $ 0.4
Unrepresented Management N/A $ 0.1 21
Anaheim.net/MyCityBudget
A D M I N I S T R A T I V E D E P A R T M E N T S
GENERAL GOVERNMENT SUPPORTING ACTIVITIES
City Council City Administration City Attorney City Clerk Finance Human Resources • Provide leadership to carry out Council policies, impart the legal defense and support vital record-keeping functions of the City.
• Evaluate internal controls and provide independent appraisals to maximize revenues and prevent internal risk.
• Protect the City’s assets through the acquisition, accounting and investment of resources.
• Support City operations through the hiring and development of quality staff. 22 Anaheim.net/MyCityBudget
F Y 2 0 2 5 / 2 6 P R O P O S E D B U D G E T
Department
All Funds
Expenditures % of All Funds
General Fund
Expenditures
% of General
Fund
City Council $1.8 0.1% $1.8 0.3%
City Administration 8.4 0.3% 8.4 1.6%
City Attorney 13.3 0.6% 13.0 2.5%
City Clerk 2.9 0.1% 2.9 0.5%
Finance 110.7 4.6% 17.5 3.3%
Human Resources 362.9 15.1% 4.3 0.8%
Total $500.0 20.8% $47.9 9.0%
in millions
23 Date/Time Location Topic
June 4 at 4 p.m. City Hall 2nd Floor Conf.
200 S. Anaheim Blvd.
Budget, Investment & Technology
Commission Meeting
June 10 at 3 p.m. City Council Chamber
200 S. Anaheim Blvd.
Council Budget Workshop
Proposed Fiscal Year 2025/26 Budget
(Citywide Overview, Administrative
Departments, Community Services,
Housing & Community Development,
Public Works, and Public Utilities)
June 17 at 3 p.m. City Council Chamber
200 S. Anaheim Blvd.
Council Budget Workshop
Proposed Fiscal Year 2025/26 Budget
(Police; Fire & Rescue; Planning & Building;
Economic Development; and Convention,
Sports & Entertainment)
June 17 at 3 & 5 p.m. City Council Chamber
200 S. Anaheim Blvd.
Budget Hearing and Adoption
City Council Meeting
Date/Time Location Area
June 3 at 7 p.m. Sunkist Elementary
School
500 Sunkist St.
East: Districts 5 & 6
June 5 at 7 p.m. Brookhurst Community
Center
2271 Crescent Ave.
West: Districts 1 & 2
June 11 at 7 p.m. Downtown Anaheim
Community Center
250 E. Center St.
Central: District 3
June 12 at 7 p.m. Betsy Ross Elementary
535 S. Walnut St.
Central: District 4
District Budget Presentations Council Workshops and Commission Meetings
24 Scan QR code to be directed to
Anaheim.net/MyCityBudget
25 26