Irvine council rejects added audits as budget deficit looms

Irvine council members unanimously rejected additional financial audits Tuesday night as the city faces an annual budget shortfall projected at $37 million by July 1, 2028, according to Voice of OC.

The decision leaves the proposed spending reviews without the deeper scrutiny that staff said would require higher-level audits. Meanwhile, budget measures that include higher fees and canceled city-sponsored events could affect Irvine residents.

According to Voice of OC, staff estimated that a level 2 audit examining federal COVID-19 spending would cost $25,000 to $90,000. A level 3 audit of the proposed Swyft Cities, or Whoosh, transportation project at Great Park would cost $50,000 to $140,000.

Staff instead presented six level 1 reviews assembled from existing spending records. They emphasized that those compilations were not audits and that detailed compliance checks would require a higher-level examination, Voice of OC reported.

Councilmember Melinda Liu said she agreed with avoiding additional spending to review past expenditures given the city's financial situation. Staff said Irvine had complied with federal reviews of COVID-19 funding, and council members directed staff to make the federal audit findings public.

The annual deficit could reach $47 million by the decade's end unless spending slows. Long-term budget adjustments target $27 million in spending reductions and $10 million in added revenue by 2028, according to Voice of OC. Measures include removing vacant positions, raising fees and canceling some city-sponsored events.

Susan Sayer, an Irvine resident for 45 years, urged professional audits, especially for Great Park projects. She also opposed the proposed gondola project, Voice of OC reported.

The transportation project's future could return to the council separately. Councilmember Kathleen Treseder said she intends to bring forward an agenda item reconsidering whether the Swyft Cities project should proceed, according to Voice of OC.