Legislation Details

File #: 26-279    Version: 1
Type: Report Status: Agenda Ready
File created: 4/30/2026 In control: REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
On agenda: 5/12/2026 Final action:
Title: FISCAL YEAR 2026-27 PROPOSED BUDGET STUDY SESSION
Attachments: 1. Agenda Report, 2. 1. Four Year Personnel Summary by Department, 3. 2. All Funds Revenues and Sources of Funds, 4. 3. General Fund Revenues and Sources of Funds, 5. 4. Summary of Appropriations by Account - All Funds, 6. 5. Summary of Appropriations by Account - General Fund, 7. 6. Summary of Appropriations by Department - by Category - All Funds, 8. 7. Summary of Appropriations by Department - by Category - General Fund, 9. 8. Proposed Budget Book FY 26-27
TITLE:
title
FISCAL YEAR 2026-27 PROPOSED BUDGET STUDY SESSION
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DEPARTMENT: FINANCE DEPARTMENT
PRESENTED BY: CECILIA GALLARDO DALY, CITY MANAGER, MARK KHOU, BUDGET & PURCHASING MANAGER
CONTACT INFORMATION: MARK KHOU, BUDGET & PURCHASING MANAGER, (714) 754-5241

RECOMMENDATION:
recommendation
Conduct a Study Session on the Fiscal Year 2026-27 Proposed All Funds Budget of $244.9 million, with a General Fund component of $200.0 million, and provide feedback and direction to staff in advance of final adoption of the budget by June 30, 2026. City staff is presenting a FY 2026-27 Proposed Budget that is structurally balanced, ensuring ongoing revenues fully support expenditures while maintaining the City's commitment to long-term fiscal sustainability while continuing to provide the highest level of service.
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BACKGROUND:
The Fiscal Year 2026-27 Proposed Budget includes collaboration efforts throughout all sectors, including public safety, parks, facilities, streets, and housing for the City of Costa Mesa residents, businesses, and visitors. Recommended budget adjustments contained in the Proposed Budget were carefully selected based on operational needs, the provision of essential core services to the community, and the implementation of the City Council's stated Goals and Priorities. The Fiscal Year 2026-27 Proposed Budget is balanced without the use of General Fund reserves. The City continues its commitment to strengthening the public's safety and improving the quality of life by dedicating 55% of the General Fund's budget to Public Safety. Furthermore, this Proposed Budget includes the full allocation and repayment of deferrals to both the Capital Asset Needs (CAN) and Information Technology Replacement Funds (ITRF) to support facility and infrastructure needs throughout the city.
While the City is presenting a structurally balanced FY 2026-27 Proposed Budget, it is important to recognize the broader uncertainty created by ongoing...

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