ANAHEIM, Calif. (June 14, 2019) — Anaheim’s proposed budget for the next 12 months will touch the daily lives of the city’s residents with $570 million dedicated to public safety and community services as well projects to better roads, utilities, parks, libraries and more.
The proposed budget includes spending for:
After weeks of community meetings and city workshops, Anaheim’s City Council on Tuesday is set to consider adopting the budget, which covers spending for the 12 months from July 1, 2019, to June 30, 2020.
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. It also includes $200 million used to pay debt and other uses. Anaheim’s overall budget for fiscal year 2019-20 is up 5 percent from the prior fiscal year.
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 the money 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 in enterprise funds is up 4 percent from the prior year.
Anaheim’s general fund. This is the city’s main source of money for day-to-day operations and covers spending on staffing and offerings at parks, libraries and community centers as well as public safety and other city services. The general fund is up 9 percent from the prior fiscal year, with the increase driven largely by higher employee pension costs and spending related to Anaheim’s two homeless shelters that opened in early 2019.
Anaheim’s capital improvement program. The capital improvement program funds upgrades to parks, roadways, sewers, landscapes, electric and water systems and more. The program is funded in some cases by enterprise revenue or 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 is 6 percent lower than the prior fiscal year and can vary year to year based on current projects and what stage they are at.
Anaheim’s reserve balance, equal to 12 percent of the general fund.
Anaheim’s third dog park is set for Maxwell Park in west Anaheim. The space for large and small dogs is planned on an acre of land and will include a decomposed granite area for dogs to run and play, agility equipment as well as benches, drinking fountains, shade trees, lighting and fencing.
The dog park is set to be built in 2020 at a cost of $800,000. The project is part of our ongoing work at Maxwell Park, where a homeless encampment was cleared in late 2018. In addition to the dog park, we have improved lighting and landscaping at the park.
Parks, libraries and community centers
Including the Maxwell Park dog park, Anaheim is set to spend $4.8 million on our parks, libraries and community centers in the next 12 months. Other projects include:
Anaheim’s proposed budget includes $8.6 million for a fire station in the Platinum Triangle near Angel Stadium of Anaheim.
The station is designed to improve response times for the growing community in the Platinum Triangle and neighborhoods around it. It is set to see construction in 2019 and 2020.
The budget’s capital improvement program includes $75.2 million in spending on upgrades to streets, bridges, sidewalks, curbs, gutters and landscaping, including:
$12.7 million for traffic signal coordination to improve traffic flow and reduce congestion along Anaheim Boulevard, Brookhurst Street, Euclid Street, La Palma Avenue and others.
$10.7 million for major street improvements, including the widening of Brookhurst from Cerritos Avenue to Guinida Lane, Katella Avenue along the Anaheim Convention Center and Lincoln Avenue from East Street to Evergreen Street.
$8.5 million for new asphalt pavement, street striping, curbs and gutters and sidewalks throughout Anaheim, including on Broadway from Gilbert Street to Greenwich Lane in west Anaheim; on Broadway from Anaheim Boulevard to East Street in the central part of the city; on Ball Road from Disneyland Drive to Claremont Street in the Anaheim Resort; and on Weir Canyon Road from Serrano to Parkglen Place in east Anaheim.
Electric, water systems
The budget’s capital improvement program includes $95 million in upgrades by Anaheim Public Utilities to ensure reliable, cost-effective electric and water service.
Electric system upgrades total $68.6 million and include undergrounding of electric and other utility wires, substation upgrades, streetlight improvements, replacement of cables, wires, circuits, switches and capacitors and transformers.
Water system upgrades total $26.6 million and include improvements to the Linda Vista Complex pumping station, La Palma Complex reservoir, replacement of water mains that bring water to homes and businesses and improvements to wells, pumps, motors, vales, pipes, meters and hydrants.
Budget by district
Anaheim’s spending in the proposed budget is roughly equal among the city’s six City Council districts. It ranges from a high of $57.8 million for district 3 in central Anaheim, the oldest part of our city, to a low of $44 million in District 6 in east Anaheim, the newest part.
Here is a breakdown of spending by district:
Where Anaheim’s revenue comes from
Revenue from and related to the theme parks, convention center, hotels and other businesses of The Anaheim Resort makes up the largest piece of the general fund, which covers public safety and community services for our residents, businesses and visitors.
Revenue from hotel stays, known as transient-occupancy tax, makes up half of Anaheim’s general fund at a budgeted $174.2 million for fiscal year 2019-20, up 6 percent from the prior year.
The vast majority of our hotel revenue, 93 percent, comes from The Anaheim Resort.
Including all revenue generated, The Anaheim Resort represents nearly 60 percent of Anaheim’s general fund at $209 million.
Anaheim’s other big sources of revenue are the city’s share of California’s sales tax and Orange County’s property tax.
The city’s share of sales tax, which is 1 percent of the county’s 7.75 percent rate, is projected at $89 million for fiscal year 2019-20, up 7 percent from a year earlier.
Anaheim’s theme parks are the largest generators of sales tax.
The city’s share of property tax is projected to be $81.8 million, up 6 percent from a year earlier. Walt Disney Co.’s theme parks, shopping center, hotels and parking areas are the city’s largest source of property tax revenue.
You can see Anaheim’s proposed budget here. To view all of the City Council meetings and workshops on the budget, click here.