Costa Mesa unveils $224.4 million proposed 2025–26 budget, prioritizes public safety and slows some capital spending

City officials presented the City of Costa Mesa’s proposed fiscal year 2025–26 operating and capital budgets at a May 13 study session, outlining a $224.4 million all‑funds proposal and a $186.9 million general fund. Finance Director Carol Molina said the draft is “focused, efficient, and resilient” and is structurally balanced without drawing on reserves.

The budget proposal directs a majority of general fund resources to public safety: staff estimate that police and fire together would receive about 54 percent of general fund spending. Molina told the council the proposal funds 42 sworn police positions and 85 sworn fire positions, and recommends adding one custody officer in the police department while removing funding for several currently vacant administrative positions, for a net decrease of two general‑fund full‑time equivalents.

Why it matters: City leaders framed the proposal as cautious in the face of uncertain revenues — notably a projected decline in sales tax — while preserving core services. The proposal would slow or defer some capital investments in a year when staff say outside grant funds and other dedicated sources will pay for many projects, but it also retains a multi‑year plan for major projects including a proposed bond for Fire Station 2.

Top numbers and revenue assumptions

- All funds proposed budget: $224,400,000 (a $15.4 million or ~6% decrease from the current adopted year). Finance staff said much of the drop reflects lower forecasted sales tax receipts. - General fund proposed: $186,900,000 (a $3.0 million, 2% decrease versus the current adopted year). - Sales tax: staff estimate $75.1 million (an 8% decline from the current adopted budget). - Property tax: projected $63.0 million (about 4% growth). - Transient occupancy tax (TOT): $9.8 million (a small decline from the prior year). - Cannabis tax (general‑fund share reported by staff): $3.6 million.

Budget priori…