Irvine faces projected $47M annual deficit, weighs parking fees and service cuts

Irvine could face a $47 million annual budget shortfall by 2030, city officials warned Tuesday, as the City Council weighs parking fees at the Great Park and scaling back library expansion to close the gap.

The projected deficit, driven largely by staff costs that have climbed 50% over five years, highlights a mounting fiscal squeeze in Orange County's largest city — one officials say demands structural reform, not one-time fixes.

Finance Director Dahle Bulosan told the council Tuesday that the city has reached a turning point. "We want to balance things structurally in the long term. We need to make a course correction," Bulosan said, according to Voice of OC.

Irvine has already instituted a hiring freeze and is delaying vehicle replacements — steps projected to save more than $6 million. Officials said those measures alone cannot close a deficit that could hit $47 million a year by the end of the decade without significant changes.

Library expansion is off the table for now. City Manager Sean Crumby said the city can sustain its three existing branches but lacks the room for new ones. "There isn't a lot of funds leftover to accommodate expansion, both capital and operation wise for the system," Crumby said at the meeting.

The council debated tapping new revenue from the Great Park and other city facilities. Councilman Mike Carroll argued that outside organizations using the park are not paying their share. "The out of town sports teams and the non Irvine majority sports clubs need to pay substantially larger fees. We don't charge nearly enough for that park," Carroll said.

Bulosan added that user fees across city services need to better reflect actual costs. "We want to make sure the cost of providing the services are recovered by those who use it," he said.

The council voted 5-2 Tuesday to request a detailed budget report within 90 days, with Mayor Larry Agran and Councilwoman Liu casting the dissenting votes. Agran emphasized the city's no-layoff commitment: "We don't lay off people. We plan for our workforce so they don't come to work in fear of being laid off," he said. Councilman James Mai offered a forward-looking note: "I just know we can do better," he said of the budget process.

City staff are conducting audits and a parking study, with results expected to inform the 90-day budget report due later this summer.