News Summary
The Huntington Beach City Council has approved a $555 million budget for the upcoming fiscal year, projecting a surplus of $1.1 million. The budget includes significant cuts, such as the elimination of six positions, aimed at balancing the financial plan. Despite the surplus, some residents expressed concerns about the city’s fiscal challenges and potential future deficits. The council is also making moves to enhance public safety amid budget constraints, while preparing for expected deficits in the following fiscal cycle.
Huntington Beach City Council Approves $555 Million Budget with $1.1 Million Surplus
The Huntington Beach City Council has unanimously adopted a budget of nearly $555 million for the fiscal year 2025-26, which includes a projected surplus of $1.1 million. This decision was reached during a council meeting held on June 3, 2025, in anticipation of the new fiscal year starting July 1, 2025.
The budget comprises over $298 million in general fund revenues, which primarily supports essential city services. Robert Torrez, the city’s interim chief financial officer, presented the budget details during the session, helping to outline the financial strategies employed to reach a surplus.
Budget Adjustments and Cuts
To balance the budget, significant adjustments were necessary, including the elimination of six positions, which encompass a deputy city manager and a senior deputy city attorney. These cuts are expected to save approximately $2 million. Additionally, the city is reducing ongoing operating expenses by nearly $3 million, affecting several programs, including the Be Well mobile mental health initiative.
The budget also plans to withdraw $1.5 million from a Section 115 trust, indicating a strategic utilization of available resources. Alongside this withdrawal, general fund transfers to self-insurance worker’s compensation and general liability funds will be cut by $4.5 million. As a part of the budget balancing act, a transfer of $2.4 million from the Waterfront Loan repayment to the general fund is also set to take place.
Council’s Efforts and Resident Concerns
Mayor Pro Tem Casey McKeon indicated that transforming an $8.8 million deficit into a surplus was a significant feat, although the challenges of the budget were noted. However, some residents voiced criticisms regarding the council’s portrayal of the budget as balanced, expressing concerns over the potential for future deficits. One resident argued that the city is currently facing a fiscal crisis, suggesting that the council’s presentation might not fully capture the financial reality.
Approximately half of the city’s revenues derive from taxes, with property taxes contributing 37.9% and sales taxes accounting for an additional 17.6%. More than half of the city’s general fund expenditures are allocated to the police and fire departments, encompassing 32.2% and 21.6% respectively.
Future Budget Projections and Fire Department Discussions
Amid discussions regarding enhancements to public safety, McKeon proposed the addition of one administrative fire captain and extending ambulance service hours from 14 to 24 hours a day. This proposal received unanimous support from the council members present. However, another motion to hire a second captain to assist during special events failed, with only one council member supporting it.
The council is currently mindful of addressing budget challenges while anticipating projected deficits for the subsequent budget cycle, with estimates indicating a $7.4 million deficit for the budget beginning in July 2026. The funding for the general fund is projected to benefit from increased property tax revenue, primarily due to rising home valuations.
As the city moves forward into the new fiscal year, council members are continually evaluating the impact of budget cuts and the long-term strategies necessary to maintain a financially balanced operation. The decisions made in this budget could pave the way for sustainable financial management in Huntington Beach.
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Additional Resources
- Los Angeles Times: Huntington Beach Draws from Reserves to Balance 2025-26 Budget
- California Globe: How Many California Cities are Running Huge Budget Deficits?
- Surf Santa Monica: Council Picks New City Manager
- Wikipedia: Huntington Beach, California
- Google Search: Huntington Beach budget 2025
Author: STAFF HERE COSTA MESA
The Costa Mesa Staff Writer represents the experienced team at HERECostaMesa.com, your go-to source for actionable local news and information in Costa Mesa, Orange County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the OC Fair, performances at the Pacific Amphitheatre, and community gatherings at The LAB Anti-Mall. Our coverage extends to key organizations like the Costa Mesa Chamber of Commerce and Visit Costa Mesa, plus leading businesses in retail, entertainment, and innovation that shape the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
