City of Irvine - Fiscal Year 2023-25 Adopted Budget

CITY MANAGER’S BUDGET MESSAGE

Balancing Principles: Framework for Responsible Budgeting Early in the budget development process, the City established balancing principles to set the foundation for budget balancing measures that meet the City’s standards for excellent service and align with the City Council’s strategic priorities. The following six key balancing principles guided the development of a balanced two-year budget and five-year plan: 1. Prioritize essential services 2. Avoid service disruptions and layoffs 3. Maximize savings by monitoring contracts, controlling overtime, and re-evaluating all discretionary spending 4. Maximize discretionary revenues by matching fees to costs of services 5. Continue responsible investments in the City’s infrastructure 6. Minimize further impacts on City’s fiscal reserves General Fund Summary The FY 2023-25 Adopted Budget is a balanced budget, including the five-year financial plan. The City continues to fully recover financially from the COVID-19 pandemic, with a majority of its key revenue sources projecting higher than pre-pandemic levels and continue to modestly grow in future years. Expenditures also continue to increase as service levels return to normal; however, the City is experiencing increasing costs across the board, with the most pronounced impacts in construction, labor, and material expenses.

2023-24 Adopted

2024-25 Adopted

2025-26 Forecast

2026-27 Forecast

2027-28 Forecast

GENERAL FUND

Revenues & Transfers-In

253,465,202 263,357,393

272,843,707

282,290,990

293,086,312

Expenditures & Transfers-Out

263,133,648 272,451,543

282,112,782 292,473,687

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FY 2023-25 Adopted Budget

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