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File #: 25-298    Version: 1
Type: Report Status: Agenda Ready
File created: 5/6/2025 In control: REGULAR CITY COUNCIL AND HOUSING AUTHORITY*
On agenda: 5/13/2025 Final action:
Title: FISCAL YEAR 2025-26 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 Appropriation by Account All Funds, 6. 5. Summary of Appropriation by Account General Fund, 7. 6. Summary of Appropriation by Department All Funds, 8. 7. Summary of Appropriation by Department General Fund, 9. 8. Proposed Budget FY 2025-26, 10. 9. Current Projects List
Related files: 25-312
TITLE:
title
FISCAL YEAR 2025-26 PROPOSED BUDGET STUDY SESSION
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DEPARTMENT: CITY MANAGER'S OFFICE, FINANCE DEPARTMENT
PRESENTED BY: CECILIA GALLARDO DALY, ACTING CITY MANAGER, CAROL MOLINA, FINANCE DIRECTOR
CONTACT INFORMATION: CAROL MOLINA, FINANCE DIRECTOR, (714) 754-5243

RECOMMENDATION:
recommendation
Conduct a Study Session regarding the Fiscal Year 2025-26 Proposed All Funds Budget of $224.4 million, with a General Fund component of $186.9 million, and provide feedback and direction to staff in advance of final adoption of the budget by June 30, 2025.

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BACKGROUND:
The Fiscal Year 2025-26 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 our community, and to implement the City Council's stated Goals and Priorities more effectively.
The current uncertainty regarding potential impacts of United States policies on global, domestic, and local economic conditions presents a challenging environment for both consumers and businesses. As a result, it is prudent to anticipate some slowdown in revenues leading into Fiscal Year 2025-26, particularly in Sales Tax and Transient Occupancy Tax, while Property Tax is expected to continue to experience modest growth. During the development of the Fiscal Year 2025-26 budget, the City diligently worked to balance the anticipated decline in revenues due to economic uncertainties and the expected increase in cost for goods and services. However, you will find that, despite the decline in revenue and increase in costs, this carefully prepared budget ensures that services and programs will continue to be provided for its residents and business community.
Guiding Principles
The guiding principles that inspir...

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