Finance Director Sunny Han shared a PowerPoint presentation on the 2024-25 Mid-Year Budget and 2025-26 and 2026-27 Strategic Budget Priorities which included background on the two-year budget. She said it was adopted on June 20, 2023 and provided an update on General Fund Revenue and Expenditures. Director Han discussed requested mid-year personnel changes and provided a summary of the mid-year projection. She concluded her presentation by discussing budget priorities, budget preparation and staff recommendations.
Pat Nelson, resident, expressed concerns with upcoming negotiations and the cost of public safety without cutting services through the Orange County Sheriff's Department. She added that there is a sign pole missing in her community on 2nd Street and Marda Avenue.
Richard de Bruijn, resident, said Other Revenue was $1.2 million and asked if more information can be provided on this fund. He also inquired about the Administation appropriation and asked if that is related to staff costs or if it is due to CalPERs. He asked Council to be sensitive to property tax payers when it comes to increases due to the sales tax decreases.
Director Sunny Han responded to Mr. de Bruijn and said the Other Revenue pertains to the one time revenue received from Cielo Vista which was part of the preannexation agreement and said the other cost pertains to a proactive approach towards unfunded liabilities with CalPERs and OPEB.
A lengthy conversation ensued among Council and staff regarding mid-year budget, the decline in sales tax revenues and bringing in businesses. They also discussed the City's participation in the North Orange County Service Planning Area (North SPA).