City Council approves (most of) City of Irvine’s Biennial Budget

Last night, the City Council gave approval to most of the City’s Biennial Budget. The details are included in a 175-page document, available to the public on the City’s website. 

A couple of important notes:

• Approval of the Capital Improvement Plan (CIP) was deferred to the June 22, 2021 Council Meeting to allow Commissioners and Councilmembers more time for review.

• The funding commitments made in the budget do not reflect additional spending that will come from tens of millions of dollars in federal and state funds allocated to Irvine under the American Rescue Plan and soon-to-be-passed infrastructure legislation.

As residents may expect, with a decline in hotel and sales tax revenue associated with Covid-19, the City is projecting a deficit of approximately $10 million for the next 5 years. This projection is based on an estimated 3% GNP (Gross National Product) recovery rate. As Councilmember Agran pointed out last night, this estimate is quite conservative, with most economists projecting a 5% or more growth in GNP well into next year. Councilmember Agran noted this would likely eliminate the so-called “structural deficit.”

“Between this budget, our anticipated economic recovery, and the upcoming infusion of federal funds to Irvine, the City is in an exceptionally strong position,” says Councilmember Agran.