Council Passes 2025-2027 City Budget

On June 10th, the Irvine City Council passed a balanced two-year operations budget to guide some $298 million in spending in 2025-26 (beginning July 1st) and $312 million in 2026-27. The Council also approved a reserve fund of $66 million, which is roughly 22% of the City’s annual budget — well above the minimum recommended in state guidelines for cities.
 
“If there is an economic downturn, as I and others expect, we’re ready for it,” said Mayor Larry Agran.

Last month, Irvine was nationally ranked the fifth best place to live in America and the No. 1 best place to live in California — based on the City’s excellent public schools, low crime rates, job opportunities, recreational activities, and access to local amenities.

According to Mayor Agran, the new budget allocates increased funding for the City’s police and public safety programs, schools, parks, libraries, childcare, senior services and other community services, expanded transit services, and other programs focused on improving residents’ quality of life.

Consistent with prior budgets, salaries and benefits for the City employees who maintain Irvine’s top-notch services, account for about two-thirds of General Fund expenditures. Eleven full-time positions are being added in 2025-26, including five in the Public Safety Department, bumping the City’s full-time employee count up 1%, to 1,103 positions.
 
The major capital improvements approved by the Council include:

• A Great Park library and other facilities for the new City-run library system
• Heritage Park improvements
• Woollett Aquatic Center improvements
• Class IV Bikeway installations
• The free Irvine CONNECT shuttle bus service expansion
• The Barranca Channel Multi-Use Trail

The City will also continue to provide more than $10 million per year to support Irvine’s K-12 public schools, with an array of in-kind services and matching grant programs. For example, $600,000 is earmarked for school nurses and guidance counselors. In addition, the City will provide the Irvine Valley College Foundation with $100,000 for scholarships while also allocating $200,000 to the Public Safety Department for middle-school resource officers.

The Council, also acting as the Great Park Board at the June 10th Council meeting, authorized expenditures from the Great Park Fund — $69 million in 2025-26 and $49 million in 2026-27 — as the City moves forward with construction of Phase I of the Park’s Framework Plan.
 
On the revenue side, the City receives 77% of its locally-generated funds from three sources: property taxes, sales tax, and the hotel occupancy tax. Revenue from the first two are projected to rise over the next two years, while revenue from hotel taxes has yet to fully recover from the pandemic’s effects and is expected to remain flat. Other revenue sources include utility franchise fees, such as trash collection and cable TV, and fees for community programs and services.
 
Mayor Agran summed up the 2025-2027 budget adoption this way: “Our budget is balanced without raising taxes. We’ve set aside ample reserves. And, we’re recession-ready. Even with an expected economic downturn on the horizon, we can absolutely maintain a very affirmative trajectory for our City with continued thoughtful planning and careful budgeting.”