Tustin residents, businesses, and the broader community. Positions were added strategically across departments based on workload, operational needs, and evolving City priorities. Maintenance, Operation, and Capital Outlay In addition to personnel-related increases, the FY 2026-27 General Fund budget reflects rising operating costs across services, supplies, utilities, training, and contractual services. Many of these increases are associated with current economic conditions, including inflation, vendor pricing adjustments, insurance market changes, utility rate increases, and supply chain impacts. Multi-year service agreements and contractual cost escalators also contribute to expenditure growth, particularly in areas where the City relies on outside vendors for specialized services, maintenance, technology support, public safety support functions, facility operations, and other recurring service needs. These agreements often include annual adjustments tied to labor costs, minimum wage changes, fuel costs, Consumer Price Index adjustments, or other market-based factors. As a result, even when service levels remain unchanged, the cost of maintaining existing operations increases from year to year. The FY 2026-27 General Fund budget also provides funding for one-time projects such as $1 million appropriation for the initial phase of the General Plan update, which is expected to span over two years. Other one-time appropriations to transfer for capital outlay include $4.25 million to upgrade public safety technology, renovation of locker room at the Police Department, and purchasing vehicle and equipment. Departments actively participate in the budget development process to ensure expenditure requests are aligned with operational needs, strategic goals, and performance expectations. Requests for services and supplies, training, professional development, equipment, and contract support are reviewed in the context of current service demands, regulatory requirements, workforce capacity, and long-term sustainability. The City also incorporates multi-year forecasting into the budget process to evaluate expenditure trends and identify potential impacts from labor cost growth, inflationary pressures, utility rates, contractual obligations, and anticipated changes in service demand. Overall, the City’s General Fund expenditure framework emphasizes fiscal responsibility, transparency, and alignment with policy objectives. While operating costs continue to rise due to economic conditions, labor market pressures, multi-year agreements, and the cost of maintaining core municipal services, the City remains focused on disciplined budget development and ongoing financial monitoring. This approach ensures that the City can continue to deliver high-quality services to the community while preserving long-term financial stability.
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