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ANAHEIM, Calif. (June 18, 2024) — Anaheim’s budget for the next 12 months upholds and extends the most extensive public safety and community services of any city in Orange County while also addressing higher labor and other costs being felt across the region.
Anaheim’s budget is up 9 percent from a year earlier and totals $2.3 billion, with the city’s general fund for daily services at $491 million, up 6 percent from a year earlier.
The budget covers the 12 months starting in July 2024 and through June 2025, referred to as fiscal year 2024-25.
The budget was considered and adopted by the City Council at its June 18 meeting, following two Council workshops and presentations at four community meetings.
Funding Orange County’s most extensive city services
The budget upholds Anaheim’s county-leading public safety and community services among cities.
Nearly 65 percent of the city’s general fund goes toward police and fire.
Staffing for the Anaheim Police Department, the largest city police department in Orange County, is at a historic high of 421 positions for sworn officers.
A new position, a youth services liaison, is also being added to the Anaheim Police Department.
The civilian position will bring together all the services available to young people in Anaheim, whether from our police, Community Services, schools or nonprofits in effort deter from the challenges of gangs, drugs and other pitfalls.
Anaheim Fire & Rescue, which provides fire, medical and other emergency services, is budgeted for three additional firefighters, for a total of 236 sworn firefighters and paramedics.
The budget also includes funding for the remodeling of fire station 4 in west Anaheim, which opened in 1959.
Our budget also upholds our city’s extensive library, community centers and other services at a time when other cities are struggling with funding shortfalls, potential service cuts or higher taxes.
In the city attorney’s office, the proposed budget includes the addition of an assistant city attorney serving as the city’s ethics office with the support of two management assistants.
The ethics officer and team are the result of a series of City Council reforms adopted in 2023 following events that came to light in 2022 with the resignation of a former mayor amid allegations of conflicts of interest.
Upholding services
Anaheim’s proposed budget upholds and builds on a consistent level of city services at a time when other cities are struggling with funding shortfalls, potential service cuts or higher taxes on residents.
There are no proposed service cuts or higher taxes in Anaheim’s proposed budget.
Like other cities, Anaheim is seeing higher costs for just about everything the city does, particularly labor costs for city employees, which number 2,101 full-time positions for the coming budget year, up by 17 from a year earlier.
Anaheim relies on police, firefighters, community services representatives, librarians, public works staff, attorneys, managers and others to serve a community of 340,000 residents, 26,000 businesses and 26 million yearly visitors.
Higher labor costs are part of a $42.4 million gap between projected revenue and spending for the budget.
To balance the budget, the city is relying on proceeds from a 2021 bond offering done to see Anaheim through the pandemic fiscal crisis.
A quick rebound in Anaheim’s economy and revenue meant the bulk of bond proceeds weren’t immediately needed and could be stretched out over several years.
Bond proceeds now are being used to offset higher costs in the budget, making up the $42.4 million imbalance.
Proceeds are being used as a bridge to maintain Anaheim’s high levels of service as we transition through a unique period where spending outpaces revenue.
Around 2028, Anaheim is expected to see the retirement of bonds issued for the 1990s Anaheim Resort expansion, freeing up $140 million in annual revenue in 2028 that previously would have gone to debt service.
The proposed 2024-25 budget covers the most extensive services of any city in Orange County, including:
- Dedicated city police and fire departments
- Anaheim Public Utilities, providing electricity and water to every Anaheim home and business
- Anaheim Public Works, overseeing streets, storm drains, sewers, transit, development
- 67 parks
- 12 community centers
- Eight skate parks
- Seven libraries
- Four dog parks
BY THE NUMBERS
$2.3 billion
Anaheim’s total, overall city budget. It includes the city’s general fund for day-to-day services, a capital improvement program for big projects and enterprise funds for the city’s water and power utility, the Anaheim Convention Center, golf courses and other facilities. Anaheim’s overall budget for fiscal year 2024-25 is up 9 percent from the prior fiscal year, driven by higher revenue and spending for Anaheim’s general fund, enterprises and capital improvement spending.
$923 million
Anaheim’s enterprise funds. They cover city operations that collect revenue for providing services to customers. These include Anaheim Public Utilities, the city’s not-for-profit water and electricity provider, and Convention, Sports & Entertainment, which runs the Anaheim Convention Center and oversees Honda Center, Angel Stadium of Anaheim, City National Grove of Anaheim and the ARTIC transit center.
Enterprise funds make up the largest portion of Anaheim’s overall budget, with nearly all of the revenue they generate going to offset the expense of their operations or to fund improvements. Residents benefit from reliable electricity and water service and rates that are lower than in surrounding cities. Residents also benefit from visitors who come to Anaheim for conventions, sports and entertainment and spend money on hotels, shopping and dining.
Spending by enterprise funds is budgeted up 13 percent from the prior year.
$491 million
Anaheim’s general fund. This is the city’s main source of funding for day-to-day operations, covering spending on staffing and services and programs at parks, libraries and community centers, as well as police, fire, paramedics and other city services. The general fund is up 6 percent from the prior fiscal year.
$233 million
Anaheim’s capital improvement program. The capital improvement program funds upgrades to parks, libraries, roadways, sewers, landscapes, electric and water systems and more. The program is funded in some cases by enterprise revenue. In other cases, it’s funded by outside sources, including the state’s gasoline tax, a portion of sales tax for transportation, federal Community Development Block Grants, developer fees and other sources. The capital improvement program typically fluctuates from year to year. This year, it is up slightly from the adopted 2023-24 budget.
$76 million
Anaheim’s beginning reserves balance for fiscal year 2024-25, equal to 16 percent of general fund spending.
