City of Santa Ana FY Budget Summary

Transcription

1 City of Santa Ana FY Budget Summary As Adopted on June 17, 2013

2 This Page Intentionally Left Blank

3 MAYOR Miguel A. Pulido MAYOR PRO TEM Sal Tinajero COUNCILMEMBERS Angelica Amezcua P. David Benavides Michele Martinez Roman Reyna Vince Sarmiento CITY OF SANTA ANA 20 Civic Center Plaza P.O. Box 1988 Santa Ana. California INTERIM CITY MANAGER Kevin O'Rourke CITY A TIORNEY Sonia R. Carvalho CLERK OF THE COUNCIL Maria 0. Huizar June 3, 2013 Honorable Mayor and City Council Members: We are pleased to submit the two-year budget for the City of Santa Ana for the and fiscal years. The recommended budget continues the path to fiscal sustainability as a result of the collaborative effort among the City Council, City Management and various bargaining groups that occurred over the past several years. These efforts resulted in $11.4M in bargaining group concessions {of which $7.4 million were deferrals) and the outsourcing of the Fire Department to the Orange County Fire Authority. The two-year budget maintains the continued commitment of the adopted fiscal policy that requires that ongoing revenues meet ongoing expenditures and that the City continues to build on its established reserve level. The recommended budget still reflects the effects of the worst recession this country has seen since the days of the Great Depression, the continued struggle with State as it relates to the elimination of Redevelopment Agencies, and a retirement system whose limitations will be at the detriment of government agencies through higher pension costs. As such, the City still faces challenges in the coming years given the moderate economic growth forecasted for the general economy. The budget is fragile at best and makes the next two years critical in maintaining a sound financial footing as the City embarks on a strategic planning process to identify critical community priorities as well as operational efficiencies and needs. Fiscal Realities The City was tremendously impacted by the worst recession in American history which began in December of The resulting effect was significant declines in the City's revenue tax base. The City of Santa Ana experienced a structural loss of $18.2 million or 14 % of its major General Fund revenues that included Sales Tax, Property Tax, and Utility Users Tax. As a result, the City's total General Fund budget dropped from $243.1 million to $196.5 million in three years. To balance the budget the City Council stood firm and made many difficult decisions that included outsourcing services such as graffiti, park maintenance, janitorial, street sweeping and most significantly the Fire Department. It merged Parks and Recreation with the Library, eliminated almost 500 positions, and depleted General Fund reserves to almost $3 million. Even with all these difficult choices the City sought the cooperation of the various bargaining groups who joined in assisting the City by negotiating both structural and deferred concessions totaling $11.4M.

4 California - A Continued Take After grappling with its own budget challenges for over a decade, often on the backs of local government, the State of California has finally achieved a balanced budget for FY that includes a $1.1 billion reserve. However, local governments still have felt the hands of the State as it took the last piece ($1.2 million) of the Vehicle License Fee in In addition, cities continue to feel the effects of the dissolution of the redevelopment agencies. The State used the dissolution of redevelopment agencies as a means to balance its budget. Originally the State had assumed savings of $2.1 billion for FY and $1.1 billion for FY but these numbers appear to be one-third of what the State had originally estimated. The City has maintained its battle with the State in terms of defining enforceable obligations and has succeeded on many fronts. With the State defining the total amounts to be disbursed to local taxing agencies as $33,174,377 for Housing Set-Aside assets and $21,760,018 for Non-Housing Assets, the City has only disbursed $10,644,759 and continues to meet its obligations in terms of debt payments and affordable Housing projects. One unfortunate consequence of the elimination of redevelopment is that local cities have lost the funding and ability to provide an appropriate level of economic development for their community. Cities will now need to redefine economic development and look for creative alternatives to fund these activities that were previously funded through redevelopment tax increment. As cities grapple with this new reality, the State has now shifted its focus to eliminating or reforming enterprise zones. In its quest to "save" anther $750 million for the State budget, the elimination or reform of enterprise zones will certainly remove another leg of a development tool used to boost businesses and create jobs. The City Enterprise Zone budget is $393,500. In fiscal year the enterprise zone issued 3,488 hiring tax credit vouchers to 434 businesses. Rising to the Challenge The City of Santa Ana leadership has taken many important steps in responding to its own budget challenges. Three major decisions by the City Council provided the foundation for ensuring that the City moved to financial stability. These were the outsourcing of the Fire Department to OCFA, collaboration with labor that resulted in $11.4 million in concessions, and the adoption of a fiscal policy that ensures a true balanced budget and commitment to reserves. As the City approached the fiscal year budget, it was essential that the City develop a long- term forecast that would enable policymakers to gage any decisions made in terms of savings as well as costs. As such, City staff worked with a consultant in developing a comprehensive interactive model that would allow for the application of various assumptions to a ten year Budget forecast. As a result of the forecast, the City identified 12 major budgetary assumptions in order to maintain a balanced budget over a two year period. In addition, City Council supported 11 budget-related policies which establish the framework for tasks and direction over the 2-year budget. These assumptions are outlined below:

5 Budget Assumptions: 1. Departments to reorganize structure based on what City can afford 2. Implements the expiration of the compensated deferrals (approximately $7.4M} 3. No new programs or services 4. Continues to evaluate public safety costs 5. No new increases in negotiated compensation 6. Increases in Ca/PERS and medical costs are included 7. Capped costs for services and supplies 8. No additional general fund contributions to CIP 9. Honors Council approved Fiscal Policy 10. Assumes moderate growth in revenue sources 11. Returns former redevelopment Property Tax to General Fund 12. Risks to significant revenues identified but not included City Council Budget-Related Policies: 1. Adoption of a 2-year budget 2. Provided labor strategy authority 3. Supported restructuring of departments' organizations and services provided based on the dollars available 4. Supported review of Police Dept. operations to identify financial savings 5. Continued support of Fiscal Policy & appropriate reserves 6. Supported appropriating Property Tax from former RDA 7. Supported the preparation of assessment studies for CIP infrastructure needs, deferred maintenance issues and planning needs 8. Modernizing the UUT 9. Supported studying the reduction of the water transfer 10. Provided direction on budget outreach and communication 11. Supported the development of strategic plan The ultimate effect of these assumptions and direction from City Council is a two-year balanced budget with the primary fiscal objective of establishing a foundation and base-line to build upon future budgets as well as community and organizational needs. The budget continues established strategies to move the City into long-term financial stability while maintaining core programs and services to the extent possible. To ensure transparency and community involvement, a total of ten public meetings will have been held by the second council meeting in June. These meetings provided the public the opportunity to learn about the budget process and provided a vehicle for residents to ask questions and express their opinions concerning community priorities. In addition, the organization has outlined key strategies for the coming two years. The primary is the completion of a five-year strategic plan. Additionally, in FY , the City will embark on a strategic visioning process that will define community needs and organizational direction in terms of services and resources. The cycle will begin upon conclusion of the budget process and will include strategic planning meetings with the City Council and community, and considered further at the Council Committee level.

6 Fragile Two-year Budget The forecast places the City's budget position as fragile at best. Bad decisions can impact the City's current balanced position and may aggravate the City's budget position upon conclusion of the two year budget cycle. With a national economy that at times appears to be growing, as reflected by an improved housing market and gains in employment, the economy could easily hit a bump in the road such as the 0.2 percent reduction in consumer spending (April 2013) which is the lowest rating since May of This has resulted in some economists reducing their growth forecasts and the Federal Chairman paying close attention in case it needs to respond to a slowing economy. At the local level Chapman University projects only a 2.1 percent growth in the gross domestic product for calendar year Although Orange County housing is starting to show some strength with home values expected to rise 6.8 percent, home values are still well below pre-recessionary levels. Overall, there is still expressed concern over the budget and fiscal policy coming out of Sacramento, Washington, and especially the continued slow growth in Europe and a potential severe downturn in China. As such, the forecast for the City assumes moderate revenue growth. It captures the realities of a CALPERS system that also experienced tremendous losses in its portfolio that will result in increases to the City's retirement cost of almost $7.8 million or over 50% in the next three years. These factors are captured in the recommended budget. In addition, rates are projected to increase by at least 100% by fiscal year The proposed Citywide budget for fiscal year is $428,431,328 and $390,913,585 for fiscal year and incorporates all funded appropriations related to the General Fund, Internal Service, Enterprise, Special, Capital Improvement Program and Community Development Funds. When compared to the prior year, the Citywide budget has increased approximately 4.5% (or $18.SM), primarily due to the increased Capital Improvement Program funding and higher General Fund spending tied to the end of the negotiated deferrals and costs associated with updating the general plan and zoning ordinance. The General Fund budget supports those functions most commonly associated with city government: police, fire, recreation, library, planning and building, street maintenance, and general city administration. The City has grown tremendously over the last 20 years along with the services required. According to the State Department of Finance, Santa Ana's population in January 2013 was 329,915 which is over a 50 percent increase over the past 20+ years. For fiscal year , the General Fund budget is $205.7M and $204.5 for fiscal year Public safety continues to receive the highest allocation making up over 70% (or $144M when excluding debt service) of the General Fund budget. The General Fund's six largest tax revenues make up over 71 percent of the overall revenue sources (the equivalent of $146.3M). Those tax revenue sources are Sales Tax (19.8%), Property Tax (17.8%), Property Tax in Lieu of Motor Vehicle Fees (12.6%), Utility Users Tax (11.7%), Business Tax (5.3%) and Hotel Visitors Tax (3.8%). As previously indicated one of the budget assumptions included in the budget model is for the departments to reorganize structure based on what the City can afford which included eliminating the backlog of funded and unfunded vacancies. As a result the proposed budget decreases the full-time employee count by an additional positions for a total workforce allocation of This brings

7 the total workforce reductions over the past 6-years to approximately (over 41%). This workforce figure equates to a ratio of 3.17 employees per 1,000 residents. In FY , the ratio was 7.5 employees per 1,000 residents. The City has always been recognized as being one of the most efficient at providing services when compared to the 11 largest cities in California and the 100 largest cities in the country. However, the recent reductions does prompt certain challenges and must be viewed as an opportunity to identify different delivery systems that can be more efficient or as a means to utilize technology to effectively increase the productivity of employees. Moving Forward As the City moves forward, it has identified some key organizational strategies for the next couple of years. Primary will be the updating of the City's General Plan and Zoning Code and addressing a new Economic Development strategy. In addition, it will develop a capital and deferred maintenance needs assessment which would provide plans for City facilities including police and fire buildings, sidewalks as well as water and sewer plans, a park CIP, and general deferred maintenance. The City will also develop an Information Services Strategic Plan as well as study and identify organizational cost saving opportunities such as the review of the jail operations which is currently being conducted by the City Manager's Office in conjunction with the Police Department. The City has faced some incredible challenges over the past several years. The balanced budget remains vulnerable to an economy that is still not predictable. There are decisions still being made at the State and Federal level that may impact the City's budget. Decisions made at the negotiation table with our bargaining units can easily create an unbalanced budget. Additionally, revenues will need time to gain what was lost as a result of the recession. The pressure to limit costs will be tremendous, given the increasing needs of the CALPERS system to remain solvent and the requests from the labor force seeking to gain back what it had sacrificed. This two-year balanced budget reflects a tremendous amount of work by staff and a resilience and fortitude of a City Council that is committed to ensuring the City's financial stability. I would like to thank the Budget Team, members of the Executive Management Team and their staffs for all the elf~ prod. g this 2-year budget. Kevin O' rke Interim City Manager

8 This Page Intentionally Left Blank

9 Total Annual Budget FY

10 Successor Agency $19,041,505 (4.7%) FY Governmental Funds Revenue Sources Estimated Revenues: $ 401,588,676 Prior Year Balance:* 26,543,652 Total Revenue Sources: $ 428,132,328 CDBG and Other Grants $14,486,530 (3.6%) GF Related Special Revenues $707,480 (0.2%) 6 Capital Projects-Grants & Misc. $22,373,191 (5.6%) Special Revenue Fund $24,001,205 (6.0%) Housing Assistance $29,962,015 (7.4%) General Fund (includes transfers) $205,741,000 (51.2%) Other Enterprise Funds $35,593,560 (8.9%) Water Enterprise $49,682,190 (12.4%) *Non-General Fund Prior Year Balances

11 CDBG & Other Grants $17,149,330 (4.0%) Special Revenue Fund $27,959,755 (6.5%) FY Governmental Funds Appropriations $428,132,328 Community Development $15,218,305 (3.5%) GF Related Special Revenue Fund $4,126,745 (1.0%) 7 Capital Projects $29,454,518 (6.9%) General Fund $205,741,000 (48.0%) Housing Assistance $30,332,215 (7.1%) Other Enterprise Funds $47,360,750 (11.1%) Water Enterprise $50,789,710 (11.9%)

12 Total Annual Budget FY

13 8 Capital Projects-Grants & Misc. $8,698,476 (2.3%) CDBG and Other Grants $13,971,530 (3.7%) Special Revenue Fund $15,148,034 (4.0%) Successor Agency $18,342,090 (4.9%) Housing Assistance $30,316,015 (8.0%) FY Governmental Funds Revenue Sources Estimated Revenues: $ 377,125,719 Prior Year Balance:* 13,787,866 Total Revenue Sources: $ 390,913,585 GF Related Special Revenues $762,310 (0.2%) General Fund (includes Transfers) $204,516,000 (54.2%) Other Enterprise Funds $35,689,074 (9.5%) Water Enterprise $49,682,190 (13.2%) *Non-General Fund Prior Year Balances

14 Community Development $14,330,140 (3.7%) CDBG & Other Grants $15,235,160 (3.9%) Special Revenue Fund $18,803,224 (4.8%) FY Governmental Funds Appropriations $390,913,585 Capital Projects $11,773,866 (3.0%) GF Related Special Revenue Fund $1,578,525 (0.4%) Housing Assistance $30,374,650 (7.8%) General Fund $204,516,000 (52.3%) 9 Other Enterprise Funds $43,419,830 (11.1%) Water Enterprise $50,882,190 (13.0%)

15 General Fund Revenue Sources & Appropriations FY

16 Charges for Services & Fees $9,344,000 (4.5%) Business Tax $11,000,000 (5.4%) License, Permits & Fees $10,556,000 (5.1%) FY General Fund 11 Revenue Sources Estimated Revenues: $205,741,000 Hotel Visitors Tax $7,850,000 (3.8%) Franchise Fees $2,861,000 (1.4%) Sales Tax $40,746,000 (19.8%) 10 Intergovernmental $8,475,000 (4.1%) Other Revenue & Taxes $13,027,000 (6.3%) Property Tax $36,609,000 (17.8%) Use of Money & Property $15,117,000 (7.4%) Property Tax In-Lieu VLF $26,020,000 (12.7%) Utility Users Tax $24,136,000 (11.7%)

17 FY General Fund 11 Appropriations $ 205,741,000 Clerk of the Council $686,770 (0.3%) Personnel $1,223,216 (0.6%) Fire Services $40,218,470 (19.6%) Bowers Museum $1,474,285 (0.7%) Police Department $103,802,020 (50.5%) City Manager $2,292,150 (1.1%) 11 All Others $13,868,180 (6.7%) Information Services $2,662,230 (1.3%) City Attorney $2,127,694 (1.0%) Reserves $3,048,409 (1.5%) Finance & Mgmt. Services $4,311,822 (2.1%) Public Works Agency $5,170,930 (2.5%) Parks & Rec. $17,709,840 (8.6%) Debt Service $10,344,825 (5.0%) Planning & Building $7,266,504 (3.5%) Community Development $550,000 (0.3%) Non-Departmental $2,851,835 (1.4%)

18 General Fund Revenue Sources & Appropriations FY

19 FY General Fund 11 Revenue Sources Estimated Revenues: $204,516,000 Hotel Visitors Tax $8,200,000 (4.0%) Intergovernmental $7,302,000 (3.6%) Franchise Fees $2,876,000 (1.4%) Sales Tax $41,634,000 (20.4%) Charges for Services & Fees $9,205,000 (4.5%) License, Permits & Fees $10,669,000 (5.2%) 12 Business Tax $11,300,000 (5.5%) Property Tax $34,514,000 (16.9%) Other Revenue & Taxes $12,890,000 (6.3%) Use of Money & Property $15,124,000 (7.4%) Property Tax In-Lieu VLF $26,801,000 (13.1%) Utility Users Tax $24,001,000 (11.7%)

20 FY General Fund 11 Appropriations $ 204,516,000 Fire Services $41,018,818 (20.1%) Clerk of the Council $699,950 (0.3%) Personnel $1,256,157 (0.6%) Police Department $106,810,920 (52.2%) Bowers Museum $1,474,540 (0.7%) 13 All Others $11,486,937 (5.6%) City Manager $2,345,240 (1.1%) Information Services $2,662,230 (1.3%) City Attorney $2,180,985 (1.1%) Reserves $185,574 (0.1%) Finance & Mgmt. Services $4,488,640 (2.2%) Public Works Agency $5,215,520 (2.6%) Parks & Rec. $17,380,345 (8.5%) Debt Service $10,499,825 (5.1%) Planning & Building $7,429,421 (3.6%) Community Development $550,000 (0.3%) Non-Departmental $317,835 (0.2%)

21 Additions/Deletions City of Santa Ana Adopted FY13-14 Budget FULL-TIME WORKFORCE CHANGES Qty. Fiscal Impact City Attorney's Office (1) Assistant City Attorney (208,032) (1) (208,032) City Manager's Office (1) Deputy City Manager (263,019) (1) Executive Director, External Affairs 0 2 Senior Management Assistant 261,400 0 (1,619) Community Development Agency (1) Economic Development Specialist I* 0 (1) Executive Secretary* 0 (1) Housing Authority Coordinator* 0 (1) Housing Programs Coordinator* 0 (1) Housing Programs Aide* (85,230) (1) Housing Specialist II* (100,445) (2) Management Analyst (1 unfunded)* (119,525) (1) Receptionist* (81,150) (1) Residential Construction Specialist* (120,935) (2) Secretary* 0 (1) Senior Accounting Assistant* 0 (1) Senior Community Development Analyst* 0 (2) Senior Office Assistant* (171,640) (2) Workforce Specialist II (1 unfunded)* (99,295) (18.0) (778,220) Finance & Management Services (1) Administrative Services Manager (203,337) (1) Budget Analyst 0 (1) Custodial Aide/Porter* 0 (1) Mail Clerk/Messenger* (46,907) (1) Reprographic Equipment Operator* 0 (1) Micro Systems Technician 0 1 Buyer 106,600 (5) (143,644) Planning & Building Agency *Non-General Fund (1) Assistant Planner II (84,330) (1) Accounting Assistant (67,680) (1) Planning Assistant (76,007) (1) Associate Plan Check Engineer (125,165) (1) Associate Planner (101,451) (3) Associate Planner 0 (3) Community Preservation Inspector* (262,536) (5) Community Preservation Inspector 0 (1) Sr. Community Preservation Inspector 0 (2) Sr. Office Assistant (64,682) (1) Senior Planner 0 (1) Sr. Plumbing/Mechanical Systems Specialist 0 (1) Permit Processor (57,624) (1) Plumbing Inspector 0 (1) Senior Electrical Inspector (110,923) (1) Electrical Inspector (84,499) (1) Secretary 0 (26) (1,034,897) 14

22 Additions/Deletions City of Santa Ana Adopted FY13-14 Budget FULL-TIME WORKFORCE CHANGES Qty. Fiscal Impact Personnel Services Agency 1 Training Coordinator 89,556 (1) Data Entry Specialist (61,642) 0 27,914 Police Department (4) Police Lieutenant 0 (5) Police Sergeant 0 (56) Police Officer 0 (1) Lead Police Records Specialist 0 (2) Parking Control Officers 0 (1) Communications Supervisor 0 (3) Police Services Dispatcher 0 (7) Police Sergeant (1,142,085) (2) Police Officer (260,220) (1) Police Administrative Manager (186,580) (1) Accounting Assistant (80,435) (1) Correctional Supervisor (125,725) (3) Correctional Officers (321,585) (2) Police Service Officers (184,805) (1) Executive Secretary to the Chief (96,775) (1) Police Personnel Svcs Specialist (81,535) 1 Emergency Operations Coordinator 100,000 (90) (2,379,745) Parks, Recreations, & Community Services 1 Zoo Education Specialist 52,229 (1) General Maintenance Worker (97,876) (1) Park Maintenance Inspector I (84,105) (1) Contracts Administrator 0 (1) Assistant Director 0 (2) Supervising Library Services Assistant (153,484) (1) Park Maintenance Aide (54,625) (6) (337,860) Public Works Agency 1 Water Systems Operator II* 99,200 1 Water Systems Operator III* 107,537 (1) Equipment Operator* (105,788) (1) Equipment Operator* (101,832) (2) Maintenance Worker II* (195,970) (1) Street Lighting Maintenance Worker (85,551) (1) Assistant Engineer II * 0 (1) Senior Assistant Engineer* 0 (1) Senior Civil Engineer* 0 (1) Survey Party Technician* 0 (1) Transit Program Manager 0 (8) (282,404) Total: (154.0) (5,138,507) *Non-General Fund 15

23 Reallocations Qty. City of Santa Ana Adopted FY13-14 Budget FULL-TIME WORKFORCE CHANGES Fiscal Impact Community Development Agency (1) Assistant Director of Community Development* (238,640) 1 Executive Director of Community Development* 245,000 (1) Redevelopment Program Manager* (193,785) 1 Community Development Manager* 193,785 6,360 Finance & Management Services (1) Custodian (Lead)* (73,310) 1 Building Maintenance Technician* 86,089 (1) Management Analyst* (135,695) 1 Senior Management Analyst* 147,263 (1) Web Systems Technician* (84,733) 1 Senior Programmer Analyst* 100,377 39,991 Planning & Building Agency (1) Community Preservation Coordinator (168,562) 1 Community Preservation Manager 177,661 9,099 Police Department (1) Police Administrative Manager (119,460) 1 Principal Management Analyst 104,700 (1) Police Services Dispatcher (113,895) 1 Police Communications Supervisor 128,895 (1) Police Systems & Communications Manager (155,005) 1 Police Communcations Manager 155, Public Works Agency (1) Administrative & Enterprise Services Manager* (167,166) 1 Administrative Services Manager* 167,166 (1) Office Supervisor* (94,932) 1 Secretary* 94,932 (1) Tree Trimmer* (89,770) 1 Data Entry Office Assistant* 92,089 2,319 *Non-General Fund Total 58,009 16

24 1,900 1,700 1,500 Since FY08-09 full-time workforce count has decreased over 41% ,300 1, FY08-09 FY09-10 FY10-11 FY11-12 FY12-13* FY13-14 FY14-15 *Includes the transfer of Fire Department personnel to OCFA

25 FY ORGANIZATION CHART AND FULL-TIME EMPLOYEES RESIDENTS OF THE CITY OF SANTA ANA MAYOR AND CITY COUNCIL City Attorney City Manager Clerk of the Council 12 (1.1%) 10 (1.0%) 4 (0.4%) Recreation & Community Services 64 (6.1%) Public Works 143 (13.6%) Police 579 (55.1%) Finance & Management Services 105 (10.0%) Community Development Agency 62 (5.9%) Personnel Services 26 (2.5%) Planning & Building 45 (4.3%) FY Total FT Positions: 1050

26 Adopted Changes To The Fee Schedule

27 NEW MISCELLANEOUS FEES FINANCE & MANAGEMENT SERVICES 1) Return Payment Service Fee: Each Additional Return Payment Proposed Fee: $35.00 every additional returned check payment Return payment fees for non-sufficient funds, etc., is set by California Civil Code Sec State law provides for a maximum Return Payment fee of $25.00 for the first returned payment item and maximum $35.00 for each additional returned payment item from the same customer. An estimated $5,000 in revenue will be generated from this fee annually. This fee is intended to recover a portion of the cost of direct staff time associated with tracing a payment that has been returned, which taken altogether, exceeds the maximum additional payment fee provided by state law. 2) Utility Service Set-up: Connection Charge Proposed Fee: $ every new municipal utility services account established. To establish an account in the municipal utility services system, a verification of customer of record is required by obtaining proof of identity and a rental agreement or escrow closing statement. Documents are scanned and saved to customer s account for future reference. An account is set-up for purposes of billing and a site visit is made to read the water meter and connect water service. An estimated $150,000 in revenue will be generated from this fee annually. This fee is intended to directly recover the cost associated for both account establishment and meter read site visit to connect water service. 3) Hearing Service Fee Proposed Fee: $ every request for an administrative hearing This fee established pursuant to NS-2841 will be charged to business license tax applicants or existing licensees who wish to exercise their administrative hearing rights regarding their business license tax classification or assessment. An estimated $500 in revenue will be generated from this fee annually. After an initial 3 month grace period $300 will be generated over nine months. The fee is intended to recover the basic contract cost of the assigned administrative hearing officer. 19

28 4) Autoregistration Service Fee Proposed Fee: $14.00 every business license tax account autoregistration This fee established pursuant to NS-2841 will be charged to businesses failing to make application or to provide required information and who are force-assessed an amount pursuant to municipal code. An estimated $1,500 in revenue will be generated from this fee annually. After an initial 3 month grace period $1,125 will be generated over nine months. The fee is intended to recover the direct cost of registering a business license tax account and assessing businesses business license tax, penalties, interest, charges, and other associated service fees. 5) Audit Service Fee Proposed Fee: $53.00 every qualifying business license tax audit (audits indicating underpayment of 10% or greater, but not less than $250.00) This fee established pursuant to NS-2841 will be charged when a business license tax audit determines that any licensee has underpaid their business license tax by 10% or more of the total amount due, but not less than $250. An estimated $5,000 in revenue will be generated from this fee annually. After an initial 3 month grace period $3,750 will be generated over nine months. The fee is intended to recover directly associated audit costs. 6) Inspection/Collection Service Fee Proposed Fee: $51.00 every re-inspection, re-investigation, or re-visitation of a place of business to enforce the business license tax code or collect business license tax monies. This fee established pursuant to NS-2841 will be charged for the re-examination, reinspection, re-investigation, or re-visitation to any place of business for purposes of enforcing the business license tax code or collecting any sum owing under the business license tax code. An estimated $5,000 in annual revenue will be generated from this fee. After an initial 3 month grace period $3,750 will be generated over nine months. The fee is intended to directly recover associated site visit costs. 20

29 7) Transfer Service Fee Proposed Fee: $34.00 every business license tax account collection transfer This fee established pursuant to NS-2841 will be charged to businesses for the collection of unpaid business license tax monies whether by transfer to a collection agency, or by any other method of assignment. An estimated $3,000 in revenue will be generated from this fee. After an initial 3 month grace period $2,250 will be generated over nine months. The fee is intended to directly recover the cost of transferring or assigning the debts owed to the City. 8) Recording Service Fee Proposed Fee: $53.00 every recording of a certificate of lien. This fee established pursuant to NS-2841 will be charged for the recording of a certificate of lien to secure and effectuate the collection of any amount required to be paid under terms of the business license tax code. The fee is intended to recover costs associated with drawing up and recording certificates of lien. An estimated $750 in annual revenue will be generated from this fee. PARKS, RECREATION AND COMMUNITY SERVICES 9) Santa Ana Stadium/Commercial Events/Non Spectator Proposed New Fee: One to Two Days Per Day 1, All-inclusive: rental, basic staffing, lighting. Three or more consecutive days Per Day 1, The Parks, Recreation and Community Services Agency is proposing to create a fee for nonspectator commercial events that occur at the Stadium, i.e. Filming of Movies, Television Series, Commercials. These fees are all inclusive: rental, basic staffing, and lighting. This new fee will replace the current Santa Ana Stadium/Filming Fees. The Parks, Recreation and Community Services Agency estimates that it collects $120,000 per year while subsidizing $75,000 in Stadium related expenses on an annual basis. An estimated $1,500 $3,000 per year will be generated from this fee. 10) Adult Baseball Surcharge Proposed Fee: Per Game $18.00 The Parks, Recreation and Community Services Agency is proposing to create a fee for Adult Baseball reservations. This new fee will be used to improve baseball facilities City-wide to enhance the player experience for both youth and adults. Improvements may include backstop replacement, irrigation improvements, bleacher repair, and other baseball facility related repairs. 21

30 MODIFY EXISTING FEES Proposed modifications to existing fees are fee rate adjustments to the Miscellaneous Fees Schedule. FINANCE & MANAGEMENT SERVICES 1) Credit Card Processing Fee (fee waived by Council through June 2013) Existing Fee (waived): Per transaction $3.60 Proposed Fee: Extend waiver through June, 2014 Payment processing fee on credit card and ACH payments has historically offset merchant service processing cost. The Treasury Division has been making payment of services available through on-line options. Application of credit card/ach payment processing costs has drawn the public to City Hall to make routine payment(s). The need to shift walk-in payment to alternative payment methods has been needed due to reduced City Hall hours and staffing. For this reason, staff recommended and Council approved the waiver of the payment processing fee effective March, Statistics have been gathered to since the waiver was granted, with positive results. Staff recommends the extension of the credit card processing fee waiver through June, COMMUNITY DEVELOPMENT AGENCY 2) Enterprise Zone Hiring Tax Credit Existing Fee: Proposed Fee: Application Processing Fee Per application $ $ Retro-voucher Processing Fee Per application $ $ Qualified businesses within the designated State Enterprise Zone in the City may apply for Hiring Tax Credit vouchers for qualified employees hired within the zone. Each voucher issued has the potential of generating over $37,000 in CA Tax Credits for the employer. The application fee includes a $15.00 processing fee assessed by the State Department of Housing and Community Development. A retro-voucher is any application that is 12 months past the employee hire date, and requires additional verification. The fee increase is to try to achieve full cost-recovery for the anticipated increases in the cost of staffing, operations, and marketing of the program, as agreed upon in the Memorandum of Understanding with the State. The Community Development Agency estimates that it collects $285,000 total per year for all processing fees. An estimated $26,400 from the application fee increase and $39,600 from the retro-voucher fee increase will be generated per year. 22

31 PARKS, RECREATION AND COMMUNITY SERVICES 3) Santa Ana Stadium Television Rights Athletic games or special events All-inclusive: set-up/ breakdown, basic staffing, and lighting. Per Event Existing Fee: Proposed Fee: $3, $1, The Parks, Recreation and Community Services Agency is proposing to modify the fee for Television Rights for athletic games and special events that occur at the Santa Ana Stadium, i.e. high school, college and international football/soccer games, concerts, performances, etc. This proposed fee is comparable to fees charged by other similar stadiums in the region. These fees are all inclusive: set-up/breakdown, basic staffing, and lighting. This fee is in addition to the fee to reserve the Stadium. The fee to reserve the Stadium will be paid by the organization reserving the Stadium. The Parks, Recreation and Community Services Agency estimates that it collects $120,000 per year while subsidizing $75,000 in Stadium related expenses on an annual basis. The reduced fee is intended to encourage more filming events at the Stadium. An estimated $1,000 $3,000 per year will be generated from this new more reasonable fee. 4) Santiago Lawn Bowling Greens Existing Fee: Proposed Fee: Rental Per Month $ $ The Parks, Recreation and Community Services Agency is proposing to modify the fee for the Santiago Lawn Bowling Green monthly rental. The reduced fee is more appropriate given the minimal impact lawn bowling activities have on this facility. The Parks, Recreation and Community Services Agency will collect $6,000 per year while subsidizing $12,900 in Lawn Bowling area related expenses on an annual basis. 23

32 POLICE 5) Police Security Services Existing Fee: Proposed Fee: Lieutenant (no change) $ hour $ hour Sergeant $ hour $ hour Officer $ hour $ hour PCO/PSO $45.00 hour $ hour The Police Department estimates that it collects $300,000 per year while subsidizing $23,670 in indirect costs for special event police security services on an annual basis. An estimated $323,600 will be generated from the fee to achieve full cost-recovery for these services. PUBLIC WORKS AGENCY 6) Residential Parking Permit Existing Fee: Every 2 Renewal $46.23 Proposed Fee: Every 2 Renewal $60.00 The Public Works Agency estimates that it collects $99,000 per year while subsidizing $84,000 in residential permit parking related expenses on an annual basis. An estimated $183,000 per year will be generated from this fee in order to achieve full cost-recovery of the residential parking permit program. 24

33 Capital Improvement Program

34 PROJECTS I. NEIGHBORHOOD IMPROVEMENTS CITY OF SANTA ANA CAPITAL IMPROVEMENT PROGRAM (CIP) FY CIP PROJECTS BY CATEGORY TOTAL Curb, Gutter, Sidewalk Omnibus Concrete 350,000 Pedestrian Safety Project Development 50,000 Subtotal Curb, Gutter, Sidewalk 400,000 Neighborhood Street Improvements Local Street Preventative Maintenance 1,400,000 Residential Street Repair Program 788,692 Subtotal Neighborhood Street Improvements 2,188,692 Alley Improvement Program Alleys 95,850 Subtotal Alley Improvements 95,850 TOTAL NEIGHBORHOOD IMPROVEMENTS 2,684,542 II. ARTERIAL IMPROVEMENTS Arterial Widening Bristol Street Widening: Phase IIIA - Civic Center to Washington 594,000 Bristol Street Widening: Phase IIIB - Washington to Seventeenth 11,482,701 Bristol Street Widening: Phase IV - Warner to St. Andrew 737,946 Grand Avenue Widening: First to Fourth 2,790,262 Project Development 100,000 Right-of-Way Management 100,000 Warner Avenue Widening: Main to Grand 5,411,121 Warner Avenue Widening: Main to Oak 5,831,700 Subtotal Arterial Widening 27,047,730 Street Reconstruction/Resurfacing Arterial Street Preventative Maintenance 1,400,000 Chestnut Avenue Rehabilitation: Broadway to Main 287,000 Civic Center Drive Rehabilitation: Main to Spurgeon 440,000 McFadden Avenue Rehabilitation: Newhope to Harbor 646,000 Memory Lane Rehabilitation: Main to North City Limit 829,000 Pavement Management 100,000 Subtotal Street Reconstruction/Resurfacing 3,702,000 TOTAL ARTERIAL IMPROVEMENTS 30,749,730 III. TRAFFIC IMPROVEMENTS Traffic Improvements Fixed Guideway 194,000 Grand/Glassel/Kraemer Corridor Traffic Signal Synchronization 850,000 Main Street Corridor Traffic Signal Synchronization 1,212,000 Newhope Street at Camille Street - New Traffic Signal 330,000 Santa Ana Safe Street Crossers (SRTS) 338,940 Segerstrom Avenue at Bear Street - Traffic Signal Modification 210,600 Traffic Control Devices Inventory 100,000 Traffic Management Plans 30,000 Traffic Safety Project Development 124,115 Traffic Signal Equipment Replacement 100,000 Subtotal Traffic Improvements 3,489,655 TOTAL TRAFFIC IMPROVEMENTS 3,489,

35 PROJECTS IV. INFRASTRUCTURE IMPROVEMENTS CITY OF SANTA ANA CAPITAL IMPROVEMENT PROGRAM (CIP) FY CIP PROJECTS BY CATEGORY TOTAL Sewer Sewer Main Repairs and Replacements 1,000,000 Subtotal Sewer 1,000,000 Water Walnut Pump Station 500,000 Water Main Replacements 3,900,000 Subtotal Water 4,400,000 TOTAL INFRASTRUCTURE IMPROVEMENTS 5,400,000 V. CITY FACILITY IMPROVEMENTS Storm Drain/Water Quality Downtown Business/Civic Center Stormwater Trash Reduction Project 109,864 Maple Street Bike Trail Storm Drain CDS 140,700 Santa Ana Delhi Channel Diversion Project 4,288,125 Wintersburg Channel Stormwater Trash Reduction Project 108,438 Subtotal City Facility Improvements 4,647,127 Parking Structure Improvements Parking Structure Improvements 2,500,000 Subtotal Parking Structure Improvements 2,500,000 TOTAL CITY FACILITY IMPROVEMENTS 7,147,127 V. PARK FACILITY IMPROVEMENTS Park Facility Improvements/Renovation Ballfield Fence Repair at Various Parks 80,000 Bike Lane Project Development 45,000 Chestnut Avenue Bike Lane 414,000 First Street Bike Lane - Newhope to Harbor 143,000 Maple Bike Trail Safety Enhancements 300,000 Memorial Park Security Lighting Improvements 480,000 Newhope Street Bike Lane - Fifth to Westminster 111,100 Pacific Electric Park 250,000 Portola Parking Lot, Basketball Court, and Tennis Court Renovation 286,500 Santa Anita Park Patio Renovation 119,000 Secure Bike Parking Systems 54,750 Subtotal Park Improvements/Renovation 2,283,350 TOTAL PARK FACILITY IMPROVEMENTS 2,283,350 GRAND TOTAL 51,754,

36 CITY OF SANTA ANA SEVEN-YEAR CAPITAL IMPROVEMENT PROGRAM FY THROUGH FY PROJECTS FY FY FY FY FY FY FY TOTAL I. NEIGHBORHOOD IMPROVEMENTS Curb, Gutter, Sidewalk Improvements 400, , , , , , ,392 3,302,059 Neighborhood Street Improvements 2,188,692 2,788,692 2,788,692 2,788,692 2,788,692 2,788,692 2,788,692 18,920,844 Alleys 95, , , , , , ,000 1,547,953 Total Neighborhood Improvements 2,684,542 3,450,636 3,569,765 3,512,041 3,515,259 3,517,529 3,521,084 23,770,856 II. ARTERIAL IMPROVEMENTS Arterial Widening 27,047,730 2,816, , , , , ,000 30,864,162 Street Reconstruction/Resurfacing 3,702,000 3,990,000 4,342,000 4,648,000 4,853,000 5,054,000 5,267,886 31,856,886 Total Arterial Improvements 30,749,730 6,806,432 4,542,000 4,848,000 5,053,000 5,254,000 5,467,886 62,721,048 III. TRAFFIC IMPROVEMENTS Traffic Improvements 3,489, , , , , , ,000 5,183,655 Total Traffic Improvements 3,489, , , , , , ,000 5,183,655 IV. INFRASTRUCTURE IMPROVEMENTS Sewer 1,000, , , , , , ,000 4,000,000 Water 4,400,000 3,000,000 4,000,000 4,500,000 4,500,000 5,000,000 5,000,000 30,400,000 Total Infrastructure Improvements 5,400,000 3,500,000 4,500,000 5,000,000 5,000,000 5,500,000 5,500,000 34,400,000 V. CITY FACILITY IMPROVEMENTS Storm Drain/Water Quality 4,647, ,000 1,250, ,997,127 Parking Structure Improvements 2,500, ,500,000 Total City Facility Improvements 7,147, ,000 1,250, ,497,127 VI. PARK IMPROVEMENTS Park Facility Improvements 2,283,350 2,090,000 50,000 50,000 50,000 50,000 50,000 4,623,350 Total Park Improvements 2,283,350 2,090,000 50,000 50,000 50,000 50,000 50,000 4,623,350 GRAND TOTAL 51,754,404 16,391,068 14,161,765 13,660,041 13,868,259 14,571,529 14,788, ,196,

37