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24-0618_ORANGE, COUNTY OF_F1a_PowerPointAdoption of Budget for Fiscal Year 2024-25 and Related Matters Item F1a June 18, 2024 Budget Workshop •On May 21, staff reviewed proposed budget with City Council, and provided information regarding: •Financial status of City •Proposed new projects •Proposed reorganization and related position changes 2 2024-25 General Fund Budget Summary •Proposed budgeted revenues exceed proposed budgeted expenditures by $3.4 million •General fund balance projected to be $6.5 million over reserve target 3 Direction from Council Incorporate into final budget: •Add $2.4 million of new projects •Retain funds over reserve target to ensure project completion •Merge Public Works/Community Services •Create Engineering and Environmental Services Department •Make recommended position adjustments •Add one deputy 4 Proposed New Projects Project Budget Source City Hall Campus $1,100,000 General Fund Serra Park $100,000 General Fund (+ SDG&E grant) Acu Park $200,000 General Fund La Novia East $500,000 Agricultural Preservation TJ Meadows Renovation $50,000 General Fund La Sala Renovation $50,000 General Fund Enhanced Christmas Decorations $200,000 General Fund La Novia Bridge Preliminary Design & Env $200,000 CCFP (+ Federal grant) Additional Direction from Council •Add $100,000 – Contracted code enforcement •Add $50,000 – Downtown decorative lighting study 5 Other Proposed Changes •Add part-time (18 hours/week) Outreach Officer ($46,000) •Upgrade Code Enforcement Officer to Senior Code Enforcement Officer ($9,000) 6 Major Impacts of Labor Negotiations •3-year agreement: •8% cost of living increases for 2024-25 •3% cost of living increase for 2025-26 and 2026-27 •One-time payments of $4,000 per employee •City matches deferred compensation up to $100 per month •Increase maximum annual leave cash out to 60 hours •Impact - $900,000 increase in Fiscal Year 2024-25 General Fund budgeted expenditures 7 Fifth and Sixth Amendments to Sheriff Contract •Designation of Homelessness Liaison Officer •Proposed amendment establishes funding for this budget period •Eliminate Crime Prevention Specialist (CPS) position •Add one deputy and one vehicle (PLHA funding/CPS position) 8 Housing Authority Budget •Budgeted revenue - $635,000 (rental and investment income) •Budgeted expenditures - $373,000 (program expenditures) 9 Recommendations 1.Adopt budget resolution 2.Adopt seven-year CIP resolution 3.Approve seven-year Measure M2 CIP 4.Adopt appropriations limitation (Gann Limit) 5.Adopt debt service levy for Measure Y bonds 6.Approve Sheriff Agreement Amendments 10 Recommendations 7.Approve Memoranda of Understanding with Employee Associations 8.Adopt resolutions amending Personnel and Classification Plan 9.Approve and authorize City Manager to sign Notice of Intent for County animal shelter 11 Thank you QUESTIONS?