Proposed Annual Operating Budget & CIP
Fiscal Year 2025-26
June 3, 2025
City of Placentia
Economic Challenges
•Sales tax trending downward Statewide
•Statewide sales tax projected to be down 1.0% in
current fiscal year
•Persistently high interest rates and threat of
tariffs have negatively impacted purchase of new
and used vehicles
•Consumer spending patterns have changed as
costs of utilities, restaurant prices and threat of
recession
•Gas prices currently down compared to last year
in current fiscal year
•Gas prices are projected to increase in
FY25/26 due to strict environmental
regulations in California and looming
shuttering of two refineries over next two
years
•Expense increases outside the City’s control:
•Increase in Unfunded Actuarial Liability (UAL)
payment from $447,000 to $917,000 CalPERS
required due to their recent rate of returns
•Increase of approx. $1.5 million in personnel
expenses due to Memoranda of
Understandings and merit increases
•Increased insurance costs- $463,000
•Workers Compensation- $228,000
•General Liability/ Property- $235,000
•Increased animal care services contract-
$52,000
•Higher costs of goods and services citywide
•Unfunded capital needs identified in recently
completed facility and IT assessments
Response to Economic Challenges & Key
Assumptions in Budget
•Preliminary deficit identified initially due largely to nominal revenue increases and increased expenses
•Department budgets held to current fiscal year’s budget and/ or reduced wherever possible
•Elimination of several vacant positions
•Use of $1,000,000 in Section 115 trust funds and $500,000 in one time revenue
•$125,000 allocated to the City’s Centennial celebration, with possible need for less General Fund funding based on fundraising efforts •Consolidation of Tamale Festival & Annual Tree Lighting in December ($30,000 savings)
3 Proposed FY 2025/26 Budget All Funds
Total Proposed Revenues- $89,665,708
Total Proposed Expenditures- $92,686,878
CIP
12%
Operating
88%
General
Fund
57%Enterprise
Funds
6%Fiduciary
6%
Internal
Service
6%
Special
Revenue
23%
Debt Service
0%
Agency
2%
FY 2025/26 Proposed Budget Overview (All Funds)
Fund Type
Revenues &
Transfers In
Expenditures &
Transfers Out
Net Incr/ (Decr) to
Fund Balance
General Fund $53,543,058 $52,654,458 $888,600
Special Revenue 18,017,996 20,996,497 (2,978,501)
Debt Service 403,300 403,300 -
Capital Projects Fund -355,700 (355,700)
Enterprise 6,392,880 5,850,885 541,995
Internal Service 5,548,700 5,662,700 (114,000)
Fiduciary 4,290,600 5,290,600 (1,000,000)
Agency 1,469,174 1,472,738 (3,564)
Totals $89,665,708 $92,686,878 ($3,021,170)
Proposed FY 2025/26 Budget
General Fund Revenues - $53,543,058
Sales Tax
16%
Property Tax
42%
TOT
4%
UUT
6%
Other Taxes
7%
Fines & Forfeitures
1%
Misc. Revenue
4%
Charges for Services
3%
Intergovernmental
1%
Transfers In
10%
Permits
6%
General Fund Operating Revenues
Revenue Type
FY 2024/25 Amended
Budget
FY 2025/26 Proposed
Budget
Variance to FY24/25
Amended Budget
Property Taxes $21,796,023 $22,755,799 4.4%
Sales & Use Taxes 8,333,000 8,449,079 1.4%
Other Taxes 8,396,040 8,852,995 5.4%
Permits 3,003,903 3,073,242 2.3%
Fines & Forfeitures 575,000 644,200 12.0%
Intergovernmental 1,464,103 329,015 (77.5%)
Charges for Services 1,945,786 1,885,975 (3.1%)
Miscellaneous 2,254,237 2,159,260 (4.2%)
Total Operating Revenues 47,768,092 48,149,565 0.8%
Transfers In 465,100 950,493 104.4%
Measure U Transfers In
Employee Retention 2,665,800 2,665,800 -
OPEB 888,600 888,600 -
Measure U Reserve 888,600 888,600 -
Total Transfers In 4,019,500 5,393,493 9.9%
Total Resources 52,676,192 53,543,058 1.6%
Proposed FY 2025/26 Budget
General Fund Expenditures - $52,654,458
Operating
$46,292,358
88%
Transfers
Out
$61,000…
Debt
Service
$6,301,100
12%
FY 2025/26 General Fund Expenditures by
Department
Department FY 2024/25
Amended Budget
FY 2025/26
Proposed Budget
Variance to
FY24/25 Amended
Budget
Legislative $1,175,316 $1,006,073 (14.4%)
City Administrator 1,536,501 752,975 (51.0%)
Administrative Services 5,780,344 5,548,750 (4.0%)
Community Services 3,441,650 3,548,786 3.1%
Development Services 1,935,400 1,955,352 1.0%
Finance 1,432,100 1,495,000 4.4%
Fire & Life Safety 5,492,918 5,402,550 (1.6%)
Human Resources 968,700 880,400 (9.1%)
Police 14,638,308 14,716,986 0.5%
Public Works 4,841,256 4,685,350 (3.2%)
General Government 5,259,700 6,300,136 19.8%
Total Expenditures $46,502,193 $46,292,358 (0.5%)
Position Allocation
•Proposed budget includes funding for 197.0 FTE
employees, and authorization for 4.0 FTE overhires in
Police and Public Safety Communication Departments
•Hiring “Frost” continues to remain in place. Public Safety and revenue generating positions will be prioritized, all others will remain vacant as long as possible and
reviewed for possible consolidation or elimination
Proposed Staffing Changes
Reductions
1.Elimination of one Recreation Coordinator ($93,124) in Community Services
2.Elimination of one Management Assistant ($82,600) in Public Works
3.Elimination of one Engineering Aide ($75,600) in Public Works
4.Elimination of one Senior Management Analyst in the City Administrator’s office -Economic Development ($148,815)
1.Position officially eliminated in FY 2024-25, but savings used to balance proposed budget
Proposed Staffing Changes
Reclassifications
1.Reclassification of one Public Works Manager to Deputy Director of Public Works (Operations) to reflect duties currently being performed and span of control for entire operations division including facility and landscape maintenance and fleet operations ($9,626 annual costs).
2.Reclassification of one vacant Maintenance Worker to a Facilities Maintenance Technician in Public Works to allow the department to recruit for skills needed including irrigation repair needed citywide ($6,000 annual salary increase offset by equal reduction in contract costs)
Proposed Staffing Changes
Reclassifications
3.Reclassification of three Office Specialists in the Police Department to Police Records Technicians to more appropriately classify the position based on duties being performed. ($24,143 annual cost)
4.Reclassification of one Police Services Supervisor to Support Services Administrator in the Police Department to more appropriately classify the position based on duties being performed ($8,056 annual costs)
Proposed Staffing Changes
Reclassifications
5.Reclassification of one Building Permit Technician to Senior Building Permit Technician in the Development Services
Department to reflect the higher level duties and oversight needed and being performed at the front counter. ($4,600 annual costs)
Citywide FTE by Department
Excludes Over-hires
-45
5 55
105
155
205
FY24/25 Adopted FY25/26 Proposed
27 27
11 11
9 955
30 30
12 12
76 76
29 27
5 4
Admin. Svcs Comm Svcs Finance
Human Resources Fire Dev Svcs
Police PW City Administrator
200.0 FTE 197.0 FTE
Capital Improvement Program (CIP)
CIP by Project Types
Project Type
New Project
Count Amount
% Of Total
New CIP
Funding
Total
Projects
with
Carryover
Streets & Streetscapes 4 $8,400,546 73.7%10
Traffic and Transportation 1 $154,848 1.4%10
Sewer 0 $0 0%0
Storm Drain 0 $0 0%0
City Buildings & Facilities 5 $1,402,350 12.3%16
Technology 4 $295,535 2.6%10
Parks 5 $1,095,000 9.6%15
Vehicles & Equipment 2 $52,200 0.4%9
Major Studies 0 $0 0%10
Total 21 $11,400,479 80
CIP Projects by Funding Source
SB 1/Gas Tax
$1,483,470
Dev. Impact
Fees
$1,152,583
Measure U
$4,379,172
Measure M
$665,857
Misc. Other
Sources
$3,719,397
Total New CIP Funding:
$11,400,479
FY 2025/26 Gas Tax Projections
•Measure M and Gas Tax projections down
Gas Tax reduced by $97,690
Measure M reduced by $297,465
Total reduction in anticipated street budget: $395,155 •$880,000 of Measure U funds previously identified for use by the Underground Storage Tank (UST) replacement could:
Be allocated towards tank installation
Be allocated toward the City Hall roof repair project. Combined with $220,000 from Public Safety DIF to fully fund project (Staff recommendation)
$395,155 to backfill street project deficit
Or remain unallocated
FY 2025/26 Gas Tax Projections
CIP Projects: Streets
Project Amount
Old Town Streetscape Improvements $150,000
FY 25-26 Annual Sidewalk and Curb Ramp
Repairs $175,000
Golden Avenue Bridge Replacement Project
Construction $3,582,340
FY 24-25 Residential Street Rehabilitation $4,493,206
Total Streets $8,400,546
CIP Projects: Traffic & Transportation
Project Amount
Citywide Signal Hardware Upgrades $154,848
Total Traffic $154,848
CIP Projects: City Buildings and Facilities
Project Amount
Fuel Tank Removal $220,000
Whitten Center Kitchen Renovation $30,000
Aguirre Building Renovation $40,000
Powell Building Improvement Project -
Windows $112,350
City Hall Roof Repairs $1,000,000
Total City Buildings $1,402,350
CIP Projects: Technology
Project Amount
Desktop Computer Replacement Program $75,000
Enterprise Camera and Security Upgrades $95,535
Public Safety Operations HW Upgrades $75,000
City Facilities Server/Network Upgrades $50,000
Total Technology $295,535
CIP Projects: Parks
Project Amount
Tynes Gym Roof Replacement $255,000
Samp and Los Vaqueros Park Playground
Renovations $600,000
Replace Park Benches $60,000
Whitten Center Pool Deck Repair $30,000
Los Vaqueros Storm Drain $150,000
Total Parks $1,095,000
CIP Projects: Vehicles & Equipment
Project Amount
Fleet Lift Replacement $35,000
Fire Department Equipment $17,200
Total Vehicles $52,200
Recommendations
1.Open the Public Hearing concerning the City of Placentia Budget for Fiscal Year 2025-26 and Capital Improvement Program (CIP) for Fiscal Year 2025-26, consider all public testimony, ask questions of Staff, and close the public hearing; and
2.Adopt Resolution No. R-2025-25, a Resolution of the City Council of the City of Placentia, California, taking actions necessary to adopt the Fiscal Year 2025-26 Annual Budget; and taking actions necessary to adopt the Fiscal Year 2025-26 Capital Improvement Program (CIP) Budget with an appropriation of $11 ,400,479; and authorizing the Position Allocation Plan and Compensation Plan for Fiscal Year 2025-26; and
3.Authorize the City Administrator to release appropriation controls for the General Government Department and Risk Management fund outside of the normal quarterly process, as necessary; and
4.Approve the use of the County's population growth and California per capita income growth as determined by the State Department of Finance for the calculation of the Fiscal Year 2025-26 Annual Appropriation Limit; and
Recommendations
5.Adopt Resolution R-2025-26, a Resolution of the City Council of the City of Placentia, California, approving and adopting the Annual Appropriations Limit (GANN) for the Fiscal Year 2025-26 in the amount of $128,022,711 .
It is recommended that the Placentia Public Financing Authority take the following actions:
1.Conduct the Public Hearing concerning the Placentia Public Financing Authority Budget for Fiscal Year 2025-26; and
2.Adopt Resolution No. PPFA-2025-01, a Resolution of the Placentia Public Financing Authority (PPFA) Board of Directors of the City of Placentia, California, taking actions necessary to adopt the PPFA’s Fiscal Year 2025-26 Annual Budget.
Questions?