Anaheim’s proposed budget reflects initial recovery, major investments, uninterrupted service

ANAHEIM, Calif. (June 8, 2021) - Anaheim's proposed budget for the coming 12 months reflects the start of economic recovery, major investments in parks, libraries, roads and utilities and uninterrupted service to residents, businesses and visitors.

The proposed budget is for the 12 months from July 2021 through June 2022, known as fiscal year 2021-22, and comes with the reopening of Anaheim's visitor economy in April and continuing through 2021 and 2022.

The proposed budget includes $566 million in spending on public safety and community services as well as on roads, parks, libraries, upgrades to our water and power systems and other investments that will directly benefit the daily lives of residents, businesses and visitors.

BY THE NUMBERS

$1.8 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 2021-22 is up 3 percent from the prior fiscal year on a comparable basis.

$745 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 1 percent from the prior year.

$380 million

Anaheim's general fund. This is the city's main source of money for day-to-day operations, covering spending on staffing and services and programs at parks, libraries and community centers, as well as public safety and other city services. The general fund is up slightly, less than 1 percent, from the prior fiscal year on a comparable basis.

$186 million

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. Other times 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 by 5 percent from the prior fiscal year.

$49.5 million

Anaheim's beginning reserves balance for fiscal year 2021-22, equal to 13 percent of general fund spending. The reserve fund is unchanged from the prior fiscal year.

BUDGET HIGHLIGHTS

Parks, libraries, community centers

Anaheim's budget calls for spending $7.2 million to enhance parks, libraries and community centers in the coming 12 months.

Included is a new downtown park, Center Greens, with $3.2 million budgeted to transform what's now a grassy field into a park with a basketball court, butterfly garden, shaded plaza and a fitness loop.

Other spending will go toward landscaped outdoor space at Euclid Branch Library, a new outdoor laboratory and expanded amphitheater at Oak Canyon Nature Center, and new play equipment, lights and restroom improvements at parks across the city.

New fire station

A new fire station for the Platinum Triangle area around Angel Stadium of Anaheim and Honda Center is expected to move through the planning process this year and see construction in 2022.

The $8.9 million project would serve the growing area around Anaheim's sports venues, which is home to about 7,000 residents today and is expected to grow to more than 25,000 in coming years.

Youth learning center

The transformation of a historic downtown space into a youth learning center is set to continue with $1.6 million in funding for building upgrades and interior improvements.

The space, along Anaheim Boulevard north of La Palma Avenue, was the longtime home of the first Northgate Gonzalez Market, opened in 1980 by immigrant Don Miguel González Jiménez.

Today, Northgate Gonzalez has more than 40 Mexican-American grocery stores across Southern California, with the headquarters of the family business in west Anaheim.

The original store closed in 2017 as Northgate Gonzalez expanded in Anaheim with a larger store on State College Boulevard.

Honoring the site's legacy, Anaheim is turning the storefront into a youth center that will teach entrepreneurial, business and job skills. The site is expected to see additional interior work in 2021-22 with a targeted opening date in late 2023.

Streetlights, electricity, water

A combined $105.6 million in spending is proposed to improve and maintain the electric and water systems of Anaheim Public Utilities as well as the city's storm and waste water systems.

As part of $69 million in proposed electric system spending, $5 million will go toward early work on an innovative energy storage system.

The system would capture power generated by solar and other renewable sources and save it for use later in the day when solar power goes offline after the sun goes down.

The project could help meet higher power demand in the evening hours and advance efforts by Anaheim Public Utilities to be carbon-free by 2045.

Work to move overhead power and other utility lines underground continues across Anaheim.

The proposed budget includes $11.4 million in funding for the next 12 months with undergrounding planned along Santa Ana Canyon in east Anaheim and continued design work for Beach Boulevard in west Anaheim and Sycamore Street downtown.

Investment continues in Anaheim's water system with more than $35 million in spending planned for water delivery and storage as well as for the city's storm and waste water system.

More than $13 million is budgeted to replace or upgrade water mains, the primary pipes that bring water to homes and businesses.

Replacing water mains improves water quality, increases reliability, reduces leaks and prevents breaks requiring street closures and repairs.

Work is planned for State College Boulevard, Imperial Highway, Indiana Street in downtown and Cerritos Avenue to the west.

Street improvements

Nearly $65 million is set to be spent improving streets, bridges and sidewalks and coordinating traffic signals across Anaheim.

The budget includes nearly $15 million in upgraded traffic signals, added left turn signals, crosswalk countdown numbers and traffic signal coordination along parts of Anaheim Boulevard, Brookhurst Street, Euclid Street, Katella Avenue, Magnolia Avenue and other roadways.

Another $10 million is budgeted for street paving, curb ramps, lane striping and other improvements along parts of Euclid Street, Harbor Boulevard and East Street.

The budget sets aside nearly $5 million for neighborhood streets, sidewalks, curbs, driveway approaches, drainage and signs.

Plans include the Lotus neighborhood in west Anaheim, the Sabina neighborhood in downtown Anaheim and the Torry and Riverdale neighborhoods in east Anaheim.

Economic recovery

After the devastating impacts of the coronavirus economic downturn, Anaheim's proposed 2021-22 reflects the start of economic recovery in our city.

Revenue from hotel stays, Anaheim's main source of funding, is projected at $107.9 million for the 12 months through June 2022.

That's up from a projected $25 million for the 12 months through June 2021, a figure decimated by the downturn and a level not seen since 1990.

The theme parks of the Disneyland Resort reopened on April 30, first at 25 percent capacity and later expanding to 33 percent for California visitors. Capacity limits and travel restrictions are set to lift on June 15.

The reopening of the parks has brought more hotel guests, on top of stays earlier in 2021 by visitors to the shops and restaurants of the Downtown Disney District and for A Touch of Disney, which offered visitors entry into Disney California Adventure park for dining, shopping and character appearances.

Demand to visit the theme parks and the resumption of conventions after an unprecedented 13 months of closure is expected to restore and grow Anaheim's hotel-stay revenue in coming years. Here is a look at recent and projected hotel-stay revenue:

2018-19 $163 million

2019-20 $123 million

2020-21 $25 million

2021-22 $108 million

2022-23 $146 million

2023-24 $175 million

2024-25 $193 million

2025-26 $202 million

Federal assistance, borrowing

The proposed budget includes $53.5 million in federal assistance from the American Rescue Plan Act and pending borrowing of about $150 million to offset recovering but still lower revenue from hotels and visitor spending.

In all, Anaheim is receiving $107 million in American Rescue Plan Act assistance, with half received in May 2021 and the balance coming in spring 2022.

Anaheim is also issuing borrowing about $150 million for expected proceeds of $130 million to bridge lost revenue in fiscal years 2021-22 and 2022-23. As part of the borrowing, bonds are set to issued later in June.

The proposed budget is the focus of a City Council workshop on Tuesday that you can watch here. The City Council is expected to consider adopting the budget at its June 22 meeting.

You can read more about Anaheim's proposed budget here.

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