Finance and Management Services
www.santa-ana.org/finance
Item # 1
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
May 16, 2024
TOPIC: Fiscal Year 2024-25 Budget Work Study Session
AGENDA TITLE
Fiscal Year 2024-25 Budget Work Study Session
RECOMMENDED ACTION
Discuss and provide direction to staff.
GOVERNMENT CODE §84308 APPLIES: No
No
DISCUSSION
The City Council provided Early Direction on April 2 and staff has updated the proposed budget accordingly. The City conducted internal budget meetings with departments from March 25 to April 11 to receive supplemental budget requests and staff priorities. After comparing the requests to City Council priorities received during Early Direction and community priorities received during the budget outreach, Finance worked with the City Manager’s Office to build a proposed budget for City Council consideration. Through May 13, the City has received over 2,100 budget survey responses. Staff will continue community engagement and will present results during the presentation for this agenda item.
The staff presentation includes the following:
•Community Engagement Results
•Notable additions to the General Fund Budget
•Summary spending plans to serve the Unhoused Community and Youth populations
•A summary of the proposed Cannabis Public Benefit Fund spending plan During the May 7 City Council meeting, this item was continued to May 16. Staff expects to post the draft budget document to the City’s website on May 13, in advance of the May 16 meeting.
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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Miscellaneous Fees Benchmarking
As requested by the City Council, staff has compiled a sampling of comparative Miscellaneous Fees with other cities (Exhibit 1). In addition, the Parks, Recreation, and Community Services Agency has been studying their fees and how they compare to other cities and may return to City Council with recommendations at a later date. In the meantime, Staff proposes no increase for Parks, Recreation, and Community Service Fees and an increase of 4.66% for all other FY 2024-25 Miscellaneous Fees.
General Fund Reconciliation
The General Fund reconciliation (Exhibit 2) accounts for all changes from the adjusted FY 2023-24 General Fund budget to the proposed FY 2024-25 General Fund budget.
The reconciliation includes a detailed listing of all proposed additions, both recurring and one-time amounts.
¹Staff is recommending a one-time adjustment to close out the Stores Internal Service Fund at the June 4, 2024 City Council Meeting as part of the Third Quarter Budget Update.
Proposed Measure X Spending Plan
The proposed spending plan (Exhibit 3) includes recommended spending categorized by ballot category and department. The estimated Measure X revenue for FY 2024-25 is $85,632,610. The proposed spending plan of $85,798,655 exceeds the revenue estimate in case actual revenue is higher. The revenue and expenditures are General Fund money, and any expenditures in excess of Measure X revenue will be paid by other General Fund revenue.
Total Recurring Revenues 406,527,340
Total FY2024-25 Spending Baseline (Recurring) (401,854,110) Proposed Additions for Recurring Spending (4,420,840)
Estimated Available (Recurring) 252,390
Estimated Ending Balance as of June 30, 2024, not including Pension Debt Stabilization 86,799,113
Third Quarter Budget Update¹ (850,000)
Less 18% Reserve (73,174,921)
Proposed One-Time Spending (12,762,760)
Estimated Spendable Balance at June 30, 2025 (One-Time) 11,432 Proposed FY24-25 General Fund Summary
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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Parking Enterprise Spending Plan
The draft FY 2024-25 budget includes a General Fund subsidy of $1,658,000 to provide one-hour of free parking in the Downtown Santa Ana parking garages. The subsidy and parking fee revenue pay for the following $4.9 million spending plan for enhanced services and parking operations.
Services Description Costs
Litter Maintenance
Remove litter and waste from all outside surfaces
five times per day.
Special Event Litter Clean-Up
Maintenance
Provide cleaning services during and after City
approved events.
Clean and Empty Trash Cans
Replace the 90 trash can liners five times per day and
wipe down trash cans.
Clean Outdoor Benches,
Bollards and Light Poles Wipe down outdoor furniture daily.
Clean & Minor Repairs for
Parklets
Remove litter and waste daily. Light power wash as
needed. Minor repairs to Parklets.
Clean Alleys
Remove trash, waste, excrement, etc. from alleys
daily.
Clean Bus Stops Complement cleaning services of bus stops daily.
Street Closures
Provide street closure services for City approved
events.
Power Wash
Power wash all 82 sidewalks and 7 alleys monthly
following a specific schedule.
Equipment & Facilities
Provide adequate trash containers, vehicles, and
storage facilities.
Enhanced Services
Clean and Safe Program ($762,300)
762,300$
Fiscal Year 2024-25 Budget Work Study Session
May 16, 2024
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A General Fund subsidy for the Parking Enterprise is not sustainable. Therefore, staff proposes using one-time money to subsidize one year of one-hour free parking, to allow time for developing recommendations to re-balance the Parking Enterprise budget. If the City Council opts to increase the duration of free parking and/or continue free parking beyond FY 2024-25, the recurring spending plan will need to be adjusted.
Next Steps
•City Council can provide direction to staff and if additional discussion is needed this agenda item can be continued to May 21st.
•On June 4, the City Council is scheduled to conduct the Budget Public Hearing and consider the first reading of an ordinance to adopt the budget for FY 2024- 25, which begins on July 1, 2024, and ends on June 30, 2025. •The second reading and adoption of the FY 2024-25 Budget Ordinance is scheduled for June 18.
FISCAL IMPACT
There is no direct fiscal impact at this time.
Parking Meter Staffing Costs
Parking and Administrative Staff, Vehicle costs,
Operational Expenses 978,880$
Meter Equipment, Maintenance
and Operation Costs
Smart Meters, Parking App, Citation processing, meter
replacements and counting services 423,650$
Parking Meter Operations
Internal Charges & Other Costs
Liability Insurance, IT Maintenance, Indirect Costs, Debt (Pension Bond), Indirect and Unanticipated Costs 312,860$ Downtown Parking Enforcement
Parking Enforcement staffing costs, miscellaneous
operating expenses, winter cleanings and internal
Charges 304,360$
Parking Operator and Graffiti
Services
Parking Operator Management Costs, parking
equipment maintenance, elevator repairs, graffiti
abatement, city staff and related expenses. 1,187,026$
Contractors and Miscellaneous
Repairs
Contractor for signage, irrigation repairs, and
unanticipated parking repairs 200,004$
Parking Structure
Security Guard Services 24/7 security services at three parking structures 600,000$ Downtown Santa Ana (DTSA)
Security Guard Services
Security services provided in the downtown area. 16
hours per day, 7 days per week. 145,000$
Parking Operations ($4.15M)
Parking Meter, Operations and Enforcement
Fiscal Year 2024-25 Budget Work Study Session
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EXHIBIT(S)
1. Miscellaneous Fee Benchmarking
2. General Fund Reconciliation
3. Proposed FY24-25 Measure X Spending Plan
Submitted By: Kathryn Downs, Executive Director of Finance and Management Services
Approved By: Alvaro Nuñez, Acting City Manager