Irvine cancels CicloIrvine to save $677,000 as budget gap looms

Irvine council members canceled the annual CicloIrvine street event, a move expected to save about $677,000 a year as the city works to close a projected $37 million structural budget deficit by July 2028, according to Voice of OC.

The cancellation is part of a broader effort to reduce spending without layoffs while preserving basic city services. Irvine plans to leave jobs vacant as employees depart, shift staff assignments and seek more revenue, with other city events also facing review.

Council members approved the long-term Target ‘28 budget plan in late September. It calls for $27 million in spending reductions and $10 million in additional revenue, according to Voice of OC. Without slower spending growth, the projected deficit could reach $47 million by the end of the decade.

CicloIrvine offered streets free of cars for cycling, walking and other outdoor activities. City Manager Sean Joyce said its estimated annual cost was comparable to the savings from eliminating four employees. The event will remain canceled unless the council votes to bring it back.

Personnel costs are central to the city's budget pressures. Salaries, benefits and overtime make up about 69% of general fund spending, Voice of OC reported. Salary and benefit costs have risen 79% since 2019, and Joyce said full-time positions increased 28% over six years.

As of Oct. 13, Irvine had 70 vacant positions it did not intend to fill. Officials aim to increase that total to 99 by July 2027 and 123 by July 2028, using departures and staff reassignments to reduce costs while maintaining essential services.

Councilmember James Mai proposed reconsidering restrictions on alcohol, casino and gaming sponsors as a possible revenue source. Councilmember Melinda Liu said she was willing to give up some events she had proposed to help preserve staffing and basic services, according to Voice of OC.

Joyce said he would return to the council in early February with updated sales tax and property tax figures as Irvine continues reviewing spending and revenue options.