Budget Investment Technology 2026/06/10200 S. Anaheim Boulevard
Anaheim, California 92805
TEL (714)765-5195
FAX (714) 765-5260
www.anaheim.net
City of Anaheim
FINANCE DEPARTMENT
June 10, 2026
TO THE HONORABLE CITY COUNCIL.
The Budget, Investment, and Technology Commission (Commission) is pleased to
have the opportunity to provide you with its comments and recommendations
concerning the City's proposed annual budget. The Commission (previously known
as the Budget Advisory Commission) was established by the City Council in 1991.
This Commission is charged with the examination of the City's financial condition,
policies, and procedures, as well as the review of the annual budget proposed by
the City Manager under Section 1.04.996 of Chapter 1.04 of Title 1 of the Anaheim
Municipal Code. The Fiscal Year (FY) 2026/27 proposed budget marks the thirty-
fifth proposed annual budget the Commission has had the opportunity to review.
The Commission's first meeting of FY 2025126 was in September 2025. Throughout
the year, the Commission heard presentations from various City departments. The
Commission received monthly Transient Occupancy Tax (TOT) reports and periodic
updates on the current year's budget and the investment portfolio.
Economy
In recognition of Anaheim's status as a world class city, it is paramount that the
safety and security of residents and visitors be emphasized in preparation for several
global events being held in and near Anaheim. With the anticipated increase in
visitors to Anaheim, it is a great time to highlight Anaheim's economic diversity and
opportunities within the city for growth and investment.
The Commission supports the goals of the Anaheim Economic Development Team
to bring additional growth to the City, including outreach programs, partnerships, and
incentives to attract new businesses and retain existing businesses. The
Commission recommends identifying the needs and gaps in diversifying the city
economy and business environment, as outlined in the City's Economic
Development Strategic Plan,
In addition, the Commission recognizes the importance of the Anaheim Convention
Center to the City's economy. The Commission would like to recommend an
increased effort in retaining historic and long-term partnerships with both large and
small conventions.
LPMR and Fiscal Res)onsibilit,,,
There has been much discussion about the impending payoff of the Lease Payment
Measurement Revenues (LPMR) bonds and the additional revenue that will become
available. The Commission believes it is important to recognize that the City budget
has had an operating deficit for the past several years using various one-time
solutions in anticipation of being able to resolve the deficit once the LPMR revenue
becomes available near the end of FY 2026/27. It is important to consider additional
risks to the General Fund including expiring labor contracts, the Citywide classification and
compensation study, and recessionary concerns, so maintaining fiscal responsibility while
maintaining City services should be an area of focus for the City Council. Over the past several
years, growth in General Fund expenditures has outpaced growth in the big three revenue
sources (TOT, sales and use tax, and property tax) by several percent.
The Commission endorses amending the City's reserve policy from the current 7%-10% level to
20%-25% level. The exhaustion of the LPMR bonds reduces the flexibility of the budget and
necessitates a larger reserve to weather fiscal challenges that may arise in order to maintain
stability in City services.
Community
The Commission would like to recognize the coordinated efforts of multiple City departments
and the notable decrease in unsheltered individuals in Anaheim by 10% from 2024 to 2026,
according to the Point -in -Time count. Homelessness, mental illness, and substance abuse are
some of the most significant problems in our state and our region. The Commission would like
to encourage the City Council to continue its efforts to address the crises of homelessness,
mental health, and substance abuse.
Fire Safety
The Commission recognizes the growing danger of wildfires across the region and wishes to
endorse the proposed development of a Wildland Fire Suppression Hand Crew and other fire
mitigation efforts through the Anaheim Fire Department. The Commission further calls for a
review of the city's fire and specialty emergency response capabilities, including examining
existing infrastructure and an assessment of projected future needs.
Conclusion
We are thankful for the opportunity to serve the people of Anaheim and grateful for the time and
information provided by City staff. We would especially like to recognize the tireless dedication
of the Finance Department in making recommendations to the City leadership and City Council
that balance the needs of the various departments as it relates to the priorities of the City. As
other municipalities in the region have faced fiscal instability, the City of Anaheim has navigated
these regional challenges successfully, and it is in no small part due to the efforts of the Finance
Department.
The Commission hereby recommends that the FY 2026/27 budget be adopted as proposed and
recommends that the City Council monitor revenues closely throughout the year, adjusting as
necessary to maintain the balance between revenues and services to support critical City
services and infrastructure.
Respectfully submitted,
ANAHEIM BUDGET, INVESTMENT, AND TECHNOLOGY COMMISSION
Jorge Gavino, Chair
Mr. Jason Bivens, Vice Chair
Mr. Paul D'Allura
Mr. Peter Duncan
Ms. Maria Grandone
Mr. Jaime Naranjo
Mr. Christopher Nguyen