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Garden Grove adopts $383 million operating plan; city sets aside funds for liability and workers’ comp
Summary
City Council adopted the biannual budget for fiscal years 2026–27. Finance Director Patricia Song said the two‑year spending plan includes about $82.3 million in new capital investments and one‑time transfers to shore up the city’s workers’ compensation and general liability internal service funds.
The Garden Grove City Council on Thursday adopted the city’s proposed biannual budget for fiscal years 2026 and 2027 after a lengthy presentation and public hearing.
Finance Director Patricia Song said the city projects roughly $752,000,000 in total revenues across the two years and about $808,000,000 in total spending. She explained that the apparent gap is driven largely by capital spending — about $82,000,000 in new capital projects over the two years — and that on an ongoing operating basis the budget is structurally balanced once one‑time capital items are excluded. The council approved the budget by roll call (motion recorded as 7 yes votes).
Key items Song highlighted: • General fund appropriations: $188,000,000 for fiscal 2026 and $195,000,000 for fiscal 2027. She said the council used a baseline approach — preserving current service levels while funding known contractual increases and selective supplemental requests. • Capital improvement program (new funding): $82.3 million over FY26–27, led by street improvements ($38M), water system improvements (~$20M), sewer master plan projects (~$15M), parks, and other facility investments. • Water utility: the utility operates with about 30,000 customer accounts, maintains 13 active wells, and has a working capital balance of roughly $30,000,000; outstanding water revenue bonds total about $20,000,000. • Risk reserves: the budget includes requests to transfer one‑time funds to internal service reserves — $4,000,000 to workers’ compensation and $3,000,000 to the general liability fund — to address actuarially identified shortfalls and recent large claims.
Council members commended staff for the presentation and noted priorities set during a March retreat — public safety, infrastructure, economic development, housing, code enforcement and cultural programming — were reflected in the spending plan. Song said pension liabilities remain a long‑term fiscal concern and that the city will continue contributions to its pension trust while exploring additional strategies.
Why it matters: The biannual budget governs service levels, capital projects and staffing for the next two fiscal years and allocates funding to prioritized areas such as roads, public safety and water system improvements.
