Lanelgn
Member
City projections recently presented to the Irvine City Council foreshadowed a $6 million deficit that could double or even triple by 2028. Two months out from the end of the fiscal year, City Manager Sean Crumby said there is time to ensure the shortfall — a manageable 2% of the city’s general fund — doesn’t grow. But City Councilmember James Mai wants the city to move quickly and is proposing some immediate steps, including a hiring freeze, to get ahead. The council is set to consider his request at its meeting on Tuesday, April 14. “The forecast does not look good and we need to fix it before it gets to the point of emergency,” Mai said. Mai is asking his council colleagues to agree to having the city manager implement a hiring freeze on all “non-essential positions;” to give the mid-cycle budget update by mid-May instead of waiting until the usual June meeting; and to include in the public briefing “a complete and current assessment of the city’s financial position” outlining what’s led to the deficit and for near and long-term budget projections. “I’m demanding them to explain the situation we’re in. Basically, full transparency is what I’m asking for,” Mai said. Mai is also asking city staffers for options to mitigate that shortfall. “We’ve got to generate revenue without penalizing the residents,” Mai said, adding he opposes raising sales taxes and business taxes. “But we have to cut costs somewhere.” The move comes just eight months after the council started this fiscal year in good shape, with a balanced budget, an anticipated 7.5% growth rate and $20.5 million in revenues. “We are prepared to address that $6 million, or 2% budget overage,” Crumby said. “We’ve increased service. There are fiscal uncertainties in the world. So that happens, but the city has very healthy reserves put in place to address that.” “Yes, we have had some things that have impacted our expenditures, and what we’ll see in that presentation is details as to that $6 million overage, and what we are projecting out to the future,” Crumby said. “We have to do that to ensure that we’re prepared,” he said, “and we can make thoughtful adjustments before it escalates.”
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