City Council examines fiscal year 2024-2025 budget amid public concerns over transparency

The Costa Mesa City Council held a study session on March 11, 2025, focusing on the mid-year budget update for the fiscal year 2024-2025. The meeting highlighted significant concerns regarding the city’s financial management and transparency, as well as the implications of proposed budget cuts.

During the public comment period, several residents expressed dissatisfaction with the budget report presented by city staff. One speaker criticized the council for considering cuts to essential services, questioning why the climate action plan and active transportation projects were not prioritized for deferral instead. This speaker emphasized the need for a more comprehensive staff report that includes multiple options for budget adjustments, rather than relying on a single proposal.

Another resident raised alarms about the city’s financial health, noting a potential $7 million shortfall compared to the previous year. They called for greater transparency in budget reporting, suggesting that the current format lacks detailed line-item expenditures, which could lead to mismanagement and a growing deficit. Concerns were also voiced about the city’s reliance on cannabis revenue, with comparisons made to projected declines in similar revenues in larger cities like Los Angeles.

Finance Director Ms. Molina presented an overview of the budget, which was initially adopted at approximately $239.8 million, with a general fund of about $189.9 million. She highlighted that over 53% of the general fund is allocated to public safety departments. Molina reassured the council that staff continuously monitors revenues and expenses to maintain a balanced budget, emphasizing the importance of early action in response to economic changes.

The session concluded without immediate resolutions, but it underscored the need for the council to address public concerns regarding budget transparency and the potential impacts of proposed cuts on city services. The council is expected to further discuss these issues in upcoming meetings as they work towards ensuring fiscal responsibility and community needs are met.