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Tustin adopts $123 million FY 2026–27 budget; Caltrans ATP grant secured
Summary
The City Council unanimously adopted the FY 2026–27 budget balanced at roughly $123 million, with a $68 million CIP program, a 21% general fund reserve, and a $425,000 Caltrans Active Transportation Plan grant (with a $75,000 local match included).
The Tustin City Council on Tuesday adopted the city’s fiscal year 2026–27 spending plan and appropriations, unanimously approving a balanced budget that city finance staff said totals about $123,000,000.
Jennifer King, the city’s director of finance, told the council that the proposed spending plan is matched by projected revenue and other resources and that the city expects roughly $123,000,000 in total resources for the coming year. "The total spending plan is 123,000,000, and that's being proposed," King said during the presentation. She said approximately 86% of general‑fund revenue is recurring and that the general‑fund reserve is estimated at 21%, above the council’s 20% target.
The adopted budget includes a capital improvement program (CIP) totalling $68,000,000, two‑thirds of which are continuing projects already underway. King said about 60% of CIP projects are expected to be funded by external sources (state allocations, federal grants and development fees).
Councilmembers also discussed the city’s pension (unfunded actuarial liability) pay‑down strategy and long‑term fiscal sustainability. King summarized an existing plan aimed at reducing the UAL by the early 2030s, and council members urged continued tracking of revenue versus expenses as the city implements its 10‑year strategy.
In a separate but related announcement, staff reported that the city secured a Caltrans Active Transportation Plan (ATP) grant for $425,000; the budget includes a $75,000 local match to support the ATP work.
Councilmembers praised the finance and real‑property teams for presenting a concise budget and emphasized priorities in the spending plan, including public safety, development, parks and long‑term investments tied to the Tustin Legacy project. The budget passed on a 5–0 roll call.
