Anaheim has unveiled its proposed budget for the fiscal year 2025-26, which includes $800 million allocated for daily life and major improvement projects. The total budget stands at $2.4 billion, marking a 4% increase from the previous year.
The city plans to spend on essential services such as police, fire, libraries, and community centers. Anaheim’s general fund is set at $527.2 million, reflecting a 7% rise from last year’s figures. Additionally, the capital improvement program has been increased by 15%, reaching $268.6 million for various upgrades across parks, libraries, roadways, sewers, and utility systems.
Despite maintaining extensive city services, Anaheim faces financial challenges with hotel revenue declining by approximately 3% in the current fiscal year. This decline contributes to a projected deficit of $50.5 million this year and an anticipated shortfall of $63.9 million next year due to rising labor costs.
No service cuts or tax increases are planned in response to these deficits. Instead, the budget proposes using one-time funding sources:
– “$33.6 million: in remaining money from $138 million in bonds issued in 2021”
– “$20.3 million: in proceeds from the $43 million sale in 2024 of the city’s interest in a parking structure”
– “$10 million: in funding previously set aside to reduce or retire debt”
The city’s deficit highlights broader regional challenges where revenues lag behind increasing costs; however, Anaheim’s situation is described as temporary.
Future revenue prospects include freeing up over $120 million when bonds issued for The Anaheim Resort expansion are paid off by 2027 and expected growth from developments like OCVibe around Honda Center and DisneylandForward near theme parks.
Anaheim continues to prioritize public safety and community services within its county-leading offerings:
“Nearly 65 percent of the city’s general fund goes toward police and fire.”
Staffing levels remain high with “430 positions for sworn officers” at Anaheim Police Department while Anaheim Fire & Rescue maintains “248 sworn firefighters and paramedics.” Community Services oversees improvements including Boysen Park upgrades along with new playgrounds at Maxwell Park plus development efforts on River Park beside Santa Ana River.
City Council workshops regarding this proposed budget will take place June 10th followed by adoption consideration scheduled June17th.
