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Santa Ana council adopts FY 2025–26 midyear budget adjustments and staff staffing changes
Summary
Council received a midyear budget update showing a $1.8M sales‑tax downturn offset by stronger development and property tax receipts, approved several appropriation adjustments (including $150K for Audas) and position changes, and authorized use of reserves for workers’ compensation costs.
City finance staff presented the fiscal year 2025–26 midyear budget update to the council, which approved the recommended adjustments by a 7–0 vote on March 3.
Executive Director of Finance reported sales tax receipts were revised downward by approximately $1.8 million (including Measure X adjustments), citing lower consumer spending and closures in used‑car dealerships. Those reductions were largely offset by stronger planning, permitting and property tax receipts: planning permits were up about $824,000 and plan check revenues approximately $339,000; property tax also trended higher by roughly $646,000.
Staff proposed a set of appropriation requests and fund adjustments: an additional $150,000 for the Audas program (funding assistance already assisting more than 200 households), a $200,000 Marberry Dog Park project (with public works to lead and no net general fund impact), an appropriation for investment‑management costs in a Section 115 trust ($130,000, offset by trust earnings), and a request to use approximately $3.8 million in workers’ compensation fund balance to cover projected increases in claim activity. The report also included housekeeping realignments, a $50,000 request from the cannabis public benefit fund for unanticipated termite repairs at New Hope Library, and several staffing reclassifications and reallocations with no ongoing general fund impact.
Council members asked clarifying questions about grant eligibility (Emergency Solutions Grant activity used for outreach overtime), communications staffing and economic development capacity. The motion to receive and file the midyear report, approve appropriations, amend headcount and adjust the capital improvement program carried unanimously.
What happens next: Staff will monitor revenues and return with a third‑quarter update on May 19; early direction on the FY 2026–27 budget workshop is scheduled for March 17, with ordinance readings in June.
