Tom Kisela
City Manager
Mike Vigliotta
City Attorney
Pamela Coleman
City Clerk
DAN SLATER
Mayor
ARIANNA BARRIOS
Mayor pro tem, District 1
JON DUMITRU
Councilmember, District 2
KATHY TAVOULARIS
Councilmember, District 3
DENIS BILODEAU
Councilmember, District 4
ANA GUTIERREZ
Councilmember, District 5
JOHN GYLLENHAMMER
Councilmember, District 6
AGENDA
City Council
June 11, 2024
Notice and Call
of a Special Meeting
4:30 PM Study Session
City Council Chamber
300 E. Chapman Avenue
Orange, CA 92866
The City of Orange City Council welcomes you to this Special Meeting. Special Meetings are held for a specific purpose and when action is needed prior to the next Regular Meeting. The Mayor or a majority of the City Council may call a special meeting of the City Council with a minimum 24 hours notice.
Agenda Information
The agenda contains a brief general description of each item to be considered. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda. The agenda and supporting documentation for a special meeting is available no later than 24 hours prior to the Council meeting on the City's website at www .cityoforange.org, at the City Clerk's Office located at 300 E. Chapman Avenue, and at the Main Public Library located at 407 E. Chapman Avenue.
Public Participation
Public Comment shall be limited to only those items described on this Special Meeting Notice /Agenda (Government Code Section 54954.3(a)).
Public Comments are limited to three (3) minutes per speaker unless a different time limit is announced. It is requested that you state your name for the record, then proceed to address the City Council. All speakers shall observe civility, decorum, and good behavior.
ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (714) 744-5500. When possible, notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting.
REMINDER: Please silence all electronic devices while City Council is in session.
1 City Council Agenda June 11, 2024
NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the California Government Code, that a Special Meeting of the Orange City Council is hereby called for the following purpose:
4:30 PM BUDGET STUDY SESSION
1. OPENING/CALL TO ORDER
1.1 ROLL CALL
2. ADMINISTRATIVE REPORTS
2.1. Fiscal Year 2024-2025 General Fund Budget Balancing Proposal.
1. Provide direction on the proposed budget reduction (s) to be included in the Fiscal Year 2024-2025 budget adoption.
2. Provide direction to return in December 2024 to restore and /or implement additional reductions.
3. Authorization to proceed with a Request for Proposal for a Fee and Cost Allocation Study.
4. Provide direction to proceed with exploring the possibility of implementing long -term rental fees, life and safety fees for students at colleges and universities, penalties for over enrollment at colleges and universities, annual impact fees for all residential investment properties, and a three and four star hotel incentive program and /or sales tax rebate.
Recommended Action:
Staff Report
Attachment 1 - FY25 Proposed Revenue Enhancements
Attachment 2 - FY25 Proposed Budget Reductions
Attachment 3 - Committees and Commissions
Attachments:
3. ADJOURNMENT
The City Council will adjourn to the 6:00 p.m. Regular Session in the Council Chamber.
I, Jennifer Connally, Deputy CMC, City Clerk for the City of Orange, do hereby declare, under penalty of perjury, that a full and correct copy of this agenda was posted pursuant to Government Code Section 54950 et. seq., at the following locations: Orange Civic Center kiosk and Orange City Clerk's Office at 300 E. Chapman Avenue, Orange Main Public Library at 407 E. Chapman Avenue, Police facility at 1107 N. Batavia Street, and uploaded to the City's website www.cityoforange.org.
Date posted: June 6, 2024
2 Agenda Item
City Council
Item #: 2.1. 6/11/2024 File #: 24-0375
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
Fiscal Year 2024-2025 General Fund Budget Balancing Proposal.
2. SUMMARY
The Fiscal Year 2024-2025 General Fund budget balancing proposal is being presented for consideration by the City Council as directed by the City Council’s Budget Ad-Hoc Committee.
3. RECOMMENDED ACTION
1. Provide direction on the proposed budget reduction(s) to be included in the Fiscal Year 2024- 2025 budget adoption.
2. Provide direction to return in December 2024 to restore and/or implement additional reductions.
3. Authorization to proceed with a Request for Proposal for a Fee and Cost Allocation Study.
4. Provide direction to proceed with exploring the possibility of implementing long-term rental fees, life and safety fees for students at colleges and universities, penalties for over enrollment at colleges and universities, annual impact fees for all residential investment properties, and a three and four star hotel incentive program and/or sales tax rebate.
4. FISCAL IMPACT
Various revenue enhancements and budget reductions to the Fiscal Year 2024-2025 General Fund budget.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community.
a: Expend fiscal resources responsibly
6. DISCUSSION AND BACKGROUND
This item is continued from the May 28th meeting. Attachment A has been updated to reflect the City Council’sdirections. Attachment C, Committees and Commissions was inadvertently left out and is now included for review and discussion.
At the May 14th City Council meeting, the City Council directed staff to continue discussions with the Budget Ad-Hoc Committee (Committee) to address the budget deficit for the Fiscal Year 2024-2025 (FY25) budget and prepare a comprehensive fiscal policy. Staff is currently working on the comprehensive fiscal policy and will return to the City Council this summer for further discussion.
After further review and discussion, the Committee recommended several reductions, effective July City of Orange Printed on 6/6/2024Page 1 of 2
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3 Item #: 2.1. 6/11/2024 File #: 24-0375
After further review and discussion, the Committee recommended several reductions, effective July 1, 2024, to the citywide General Fund expenditures of approximately $4.6 million and an additional $8.2 million of future reductions in December, if needed. The Committee also recommended $9.4 million of potential new revenues of which $5.7 million is one-time revenue. There are five new revenue enhancements that require additional research from staff. Additional information from these sources will return to the City Council at a future date for discussion and consideration. The remaining deficit is proposed to be covered by the Catastrophic Reserve with the understanding that any monies used would be re-paid within two years per the City’sreserve policy. Staff is seeking direction from the City Council on how to proceed to finalize the City’s FY25 budget.
7. ATTACHMENTS
· Attachment 1 FY25 Proposed Revenue Enhancements
· Attachment 2 FY25 Proposed Expenditure Reductions
· Attachment 3 Committees and Commissions
City of Orange Printed on 6/6/2024Page 2 of 2
powered by Legistar™
4 Agenda Item
City Council
Item #: 2.1. 6/11/2024 File #: 24-0375
TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. SUBJECT
Fiscal Year 2024-2025 General Fund Budget Balancing Proposal.
2. SUMMARY
The Fiscal Year 2024-2025 General Fund budget balancing proposal is being presented for consideration by the City Council as directed by the City Council’s Budget Ad-Hoc Committee.
3. RECOMMENDED ACTION
1. Provide direction on the proposed budget reduction(s) to be included in the Fiscal Year 2024- 2025 budget adoption.
2. Provide direction to return in December 2024 to restore and/or implement additional reductions.
3. Authorization to proceed with a Request for Proposal for a Fee and Cost Allocation Study.
4. Provide direction to proceed with exploring the possibility of implementing long-term rental fees, life and safety fees for students at colleges and universities, penalties for over enrollment at colleges and universities, annual impact fees for all residential investment properties, and a three and four star hotel incentive program and/or sales tax rebate.
4. FISCAL IMPACT
Various revenue enhancements and budget reductions to the Fiscal Year 2024-2025 General Fund budget.
5. STRATEGIC PLAN GOALS
Goal 2: Be a fiscally healthy community.
a: Expend fiscal resources responsibly
6. DISCUSSION AND BACKGROUND
This item is continued from the May 28th meeting. Attachment A has been updated to reflect the City Council’sdirections. Attachment C, Committees and Commissions was inadvertently left out and is now included for review and discussion.
At the May 14th City Council meeting, the City Council directed staff to continue discussions with the Budget Ad-Hoc Committee (Committee) to address the budget deficit for the Fiscal Year 2024-2025 (FY25) budget and prepare a comprehensive fiscal policy. Staff is currently working on the comprehensive fiscal policy and will return to the City Council this summer for further discussion.
After further review and discussion, the Committee recommended several reductions, effective July City of Orange Printed on 6/6/2024Page 1 of 2
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5 Item #: 2.1. 6/11/2024 File #: 24-0375
After further review and discussion, the Committee recommended several reductions, effective July 1, 2024, to the citywide General Fund expenditures of approximately $4.6 million and an additional $8.2 million of future reductions in December, if needed. The Committee also recommended $9.4 million of potential new revenues of which $5.7 million is one-time revenue. There are five new revenue enhancements that require additional research from staff. Additional information from these sources will return to the City Council at a future date for discussion and consideration. The remaining deficit is proposed to be covered by the Catastrophic Reserve with the understanding that any monies used would be re-paid within two years per the City’sreserve policy. Staff is seeking direction from the City Council on how to proceed to finalize the City’s FY25 budget.
7. ATTACHMENTS
· Attachment 1 FY25 Proposed Revenue Enhancements
· Attachment 2 FY25 Proposed Expenditure Reductions
· Attachment 3 Committees and Commissions
City of Orange Printed on 6/6/2024Page 2 of 2
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6 FY 2025 Proposed Revenue Enhancements
Updated May 29, 2024
7/1/2024* 1/1/2025* Total For
Consideration
Credit card fees $ 150,000 $ 150,000
Business license back tax & penalties 51,000 51,000 100% fee recovery 250,000 250,000 Old Towne paid parking - 475,000 Parking enforcement citations 1,000,000 1,000,000 Pursue partnership with local hospitals to replace
Fire Stations TBD TBD TBD TBD
Expand STR definitions to Include Residential
Rentals of 1-year or less - 500,000 Implement Long-Term Rental Fee - 500,000 Implement Annual Impact Fee for all Residential
Investment Properties ($250)** - 2,500,000 Implement Life Safety Fee (Colleges $25 &
Universities $100)*** - 1,309,300 Implement Penalties for Overenrollment (College
$XX & Universities $XX) TBD TBD TBD TBD
Implement a 3- & 4-Star Hotel Incentive Program
or Sales Tax Rebate TBD TBD TBD TBD
1-time CR&R reimbursement for road mitigation 3,000,000 3,000,000 Total Proposed Additional Revenues $ 4,201,000 $ 250,000 $ 4,451,000 $ 5,284,300 *Actual amount may vary depending on when the program starts.
A-FY25 Proposed Revenue Enhancements 7
FY 2025 Proposed Expenditure Reductions
Updated May 17, 2024
Department Category Impact 7/1/2024 For Future
Consideration
Administrative
Support* Personnel Accountant - FY25 request $ 112,700 Personnel Records Coordinator - vacant 102,740 Personnel 3 positions through attrition 360,256 Maintenance &
Operation Reduce supplies, training, and office equipment 46,636 Maintenance &
Operation Consolidate 24/7 app with Mainstar 20,700 Maintenance &
Operation Eliminate communication support service contract 75,000 Maintenance &
Operation Eliminate City Council meals 1,500 Maintenance &
Operation Eliminate hiring incentive 73,000 Programs Eliminate CERT program 28,500 Programs Eliminate contribution to Miss Orange 5,000 Programs Eliminate Ride Share/Health Fair 5,000 Membership Eliminate membership to the League of California 34,000 Membership Eliminate membership to SCAG 17,500 Membership Eliminate membership to OCCOG 11,200 Total Administrative Support Reductions 522,276 360,256 Library Services Personnel Reduce PT staff 286,299 Personnel Library Services Director - vacant 222,021 Maintenance
& Operation
Resources/subscriptions, programs, supplies,
outreach, events, training/development 223,069 Total Library Services Reductions 731,389 - Community
Services Personnel PT staff for various special events 191,000 Personnel Park Maintenance Leadworker - vacant 95,274 Contract Park custodial - remove seasonal cleaning and
reduce cleaning frequency 16,720
Contract Landscape services - change to mid-grade fertilizer & disband the use of soil additives 66,505 Contract Cleaning services - eliminate Veteran fountain cleaning contract 11,200
Contract Water cost - turn off Veteran's fountain 9,024 Contract Landscape services - remove fertilization services 10,000 Contract Cleaning services - reduce dog park cleaning services 8,970 Maintenance
& Operation Lyons Security nightly patrols in Parks 154,746 Maintenance
& Operation "Our Orange" design and printing 103,000 Maintenance
& Operation Cleaning and day porter at OES 74,700 B-FY25 Proposed Expenditure Reductions8
FY 2025 Proposed Expenditure Reductions
Updated May 17, 2024
Department Category Impact 7/1/2024 For Future
Consideration
Maintenance
& Operation Portable restrooms 17,000 Special Events Movies in the Park 9,200 Special Events Holiday Decorations 63,000 Special Events Veteran's Day 2,245 Special Events Concerts in the Park 26,700 Special Events Tree Lighting Ceremony 55,425 Special Events Treats in the Streets 14,141 Special Events Special Event supplies 23,650 Special Events 3rd of JuIy 135,582 Programs Aquatic Program - summer 2025 226,475 Programs Orange Elderly Services Contribution 224,100 Total Community Services Reductions 771,015 767,642 Public Works Personnel (2) Associate Civil Engineers - vacant 272,513 Contract Tree trimming, removal and planting, emergency work - reduce service by 50%. 132,499 Contract Santiago Creek cleanup - reduce service by 50%. 15,000 Contract Plaza sidewalk steam cleaning -reduce service by 50%. 17,000
Contract Janitorial services - reduce service by 50%. 190,000 Contract Reduce tree well maintenance - reduce service by 50%. 115,000
Contract Water fountain maintenance - reduce service by 50%. 3,400
Contract Landscape services at city facilities and parking lots - reduce service by 50%. 18,500
Maintenance
& Operation
Eliminate graffiti staff augmentation - FY25
request 67,000
Total Public Works Reductions 830,912 - Community
Development Personnel 2 PT Code Enforcement Officers - FY25 request (augmentation) 154,000
Personnel (3) positions through attrition 421,213 Total Community Development Reductions - 575,213 Fire Personnel (5) Firefighters - vacant & through attrition 302,977 454,466 Personnel (13) Firefighters - through attrition 2,265,164 Total Fire Reductions 302,977 2,719,629 Police Personnel (10) Police Officers - vacant & through attrition 333,177 1,332,706 Personnel Police Records Manager - vacant 142,607 Personnel Overtime 322,879
Personnel Overtime for special events 112,833 Personnel (10) Police Officers - through attrition 1,605,802 Personnel Crossing Guards Program 425,000 Personnel (17) Non-sworn personnel - through attrition 802,220 B-FY25 Proposed Expenditure Reductions9
FY 2025 Proposed Expenditure Reductions
Updated May 17, 2024
Department Category Impact 7/1/2024 For Future
Consideration
Maintenance
& Operation
Reduce contracts, uniforms, training, ammunition,
and equipment for personnel 224,468 Total Police Reductions 1,448,131 3,853,561 $ 4,606,700 $ 8,276,301
*City Council, City Clerk, City Attorney, City Manager, Human Resources, and Finance.
Total Reductions From All Departments
B-FY25 Proposed Expenditure Reductions10
Committee Commission Meetings
# of
Meeting
per Year
Average
Length
(in hour)
Materials
per mtg.
Facility
Cost
per mtg.
IT Support
per mtg.
Annual
Costs
Parks Commission 6 2 $0 $300 $250 $3,300
Traffic Commission 6 2 $0 $300 $250 $3,300
Santiago Creek Commission 4 2 $0 $300 $250 $2,200
Design Review Committee 24 2 $55 $300 $250 $14,520
TOTAL 40 8 $55 $1,200 $1,000 $23,320
C-Committee and Commission Meetings 11