Public Works director outlines $145 million budget, cites grants and options to shift paving schedule

Public Works Director Chao Vu told the Huntington Beach City Council the department manages an all-funds budget of about $145,000,000, covering personnel, operating, capital and nonoperating costs, and described staffing, service responsibilities and recent grant awards.

Chao said the department operates four divisions, manages more than 100 contracts, and employs roughly 212 full-time and 38 part-time staff to maintain the city’s streets, parks, facilities, fleet and utilities. "Public works is the backbone of the city," Chao said, listing services that include 150 traffic signals, 14,000 street lights, 1,100 miles of streets, 760 acres of parks, and operations for water, sewer and stormwater systems.

Chao outlined funding sources and a general-fund allocation: of the department’s total budget, about $24,000,000 is supported by the general fund (roughly 17 percent). He described a mix of enterprise and designated funds—gas tax, Measure M, refuse, water and sewer fees—plus grants. He reported recent grant awards including $9,000,000 in competitive Caltrans Complete Streets funding and approximately $3,600,000 for the Magnolia Corridor project; the department’s adopted capital improvement program totals about $35,000,000.

Council members asked about potential cost reductions and schedule adjustments. Councilmember Kennedy asked whether the 12-year pavement cycle could be shifted; Chao said there is flexibility to adjust the paving schedule and to perform spot treatments on high-priority streets. Chao also said the department has increased use of subcontracted engineering services and is monitoring staffing and contract levels.

Chao described efforts to restructure divisions for efficiency—combining engineering and transportation under a single deputy director, trimming one full-time position during recent reorganization, and pursuing grant funding to supplement capital programs. He said the department fields about 12,000 service requests annually and manages roughly 50,000 utility accounts.

Why it matters: The presentation offered councilmembers and the public a detailed view of service levels, revenue sources and capital needs at a time the city is evaluating budget reductions and revenue opportunities. Council members said they want greater transparency on department services and are considering options such as shifting project timing, optimizing city assets and pursuing additional grants to bridge funding gaps.

Next steps: Council and staff will continue budget hearings; staff will return with additional department-level budget details and proposals for balancing expenditures and pursuing revenues.