Proposed Budget
Fiscal Years 2025-26 and 2026-27
June 10, 2025
2 City Council Visioning:
Mission:
To provide responsible leadership and quality
services while promoting safety, cultural harmony,
and life enrichment.
Vision:
To be a safe, attractive, and economically vibrant
city with an informed and involved public,
celebrating diversity and preserving residential
character.
3 City Council Priorities:
Homelessness Public Safety
Infrastructure
Economic
Development
Code
Enforcement
Celebrate
Culture
Diversity
Baseline
Principle:
Financial Health
& Sustainability
Financial Health &
Sustainability
OTHER FUNDS
▸ Government-Type Funds – uses limit to sources;
▸ Business-Type Funds – subject to rate covenant, external service charge driven, working capital enabled;
▸ Internal Service Funds– finance operational needs for key services and assets – Fleet, Building & Facilities, IT, Insurance etc.; internal service charge funded.
GENERAL FUND
▸ Baseline Approach
▸ Conservative Revenue Estimates
▸ Additional funding needs subject to
Budget Committee review and
recommendation (Supplemental
Requests)
Budget Principle – ongoing expenditures <= ongoing revenues – Structurally Balanced 4 Highlights of the FY2025-26 & FY2026-27 Biennial Budget Successes -
▸ Balanced budget through collaboration
▸ Funded 26 supplemental requests
▸ Leveraged one-time resource to address
strategic priorities
5 Challenges -
▸ Economic and fiscal uncertainties
▸ Aging infrastructure
▸ Rising pension obligations
$408,842,806
Overall recommended spending plan for FY2025-26
6 $399,433,693
Overall recommended spending plan for FY2026-27
FY2025-26 & FY2026-27 Biennial Budget
7 Housing Authority -
▸ Section 8 administration -
$4.5M/year
▸ Housing Assistance Payment
program - $47.0M/year
Sanitary District -
▸ Operating budget -
$10.3M/year
▸ Capital improvement
program - $9.0M/year
Successor Agency -
▸ DOF approved Recognized
Obligation Payment
Schedule (ROPS) -
$7.6M/year
FY2026 FY2027
(in $ millions) (in $ millions)
City of Garden Grove 328.6$ 317.1$
Garden Grove Housing Authority 51.3 51.5 Garden Grove Sanitary District 20.9 22.9 Successor Agency 8.0 7.9
408.8$ 399.4$
8 FY2025-26 & FY2026-27 Biennial Budget
FY 2025-26
(in $000)
FY 2026-27
(in $000)
FY 2025-26
(in $000)
FY 2026-27
(in $000)
59,943$ 61,649$ Fire 35,236$ 36,797$ 70,055 72,629 Police 91,577 94,891 28,000 28,560 Public Safety Subtotal 126,813 131,688 29,586 30,790
31,953 31,990 Public Works Non-Utility 64,928 53,813 21,074 21,285 Public Works Utilities ¹ 70,944 70,465 51,703 56,061 Community Services 12,584 10,693 51,039 51,039 Community Development 8,585 8,541 16,803 16,803 Economic Development 79,821 77,995 2,436 2,436 Municipal Support:
7,816 7,929 City Administration 5,338 5,411 TOTAL 370,408$ 381,171$ City Attorney 1,188 1,188 Finance 13,302 14,142
Human Resources 9,614 9,719
Information Technology 5,716 5,665
Non-Departmental:
Debt Service 8,753 8,756
Utilities 1,257 1,357
Other Departmental Subtotal 282,030 267,745 TOTAL ² 408,843$ 399,433$
Citywide Revenue Estimates
Property Tax
Citywide Proposed Spending
Other Enterprise ⁴
Successor Agency
Sales Tax
Hotel Visitors Tax
Other GF Fees and Taxes 1
Other Govt Revenues 2
Internal Service Revenues 3
Water Utility
Housing Authority
Sanitary District
⁴ Includes Golf Course funds.
¹ Includes business license tax, building/planning fees and permits, and sports and recreation fees.
² Includes federal, state and county grants, TID, gas tax, Measure M, and Accessiblity funds.
¹ Includes Water, Sewer, and Refuse funds
³ Includes charges for Worker's Compensation, Fleet, Information Technology, Risk Management, Warehouse, Telecommunication, Communication Replacement, Building Rehabilitation internal service funds. ² Total includes capital improvement projects and transfer out.
USES – ALL FUNDS – CITYWIDE
9 10
FY2025-26 & FY2026-27 Biennial Budget –
Water Utility
SOURCES
Proposed
FY2026
(in $000)
Proposed
FY2027
(in $000)
Beginning Working Capital 32,027$ 28,699$
Revenues 51,703 56,061
TOTAL SOURCES 83,730 84,760
USES
Operating Expenses
Operations & Maintenance 21,134 21,592
Purchased Water Supply 18,764 19,008
Debt Service 2,901 2,902
Street Repair Charge 877 899
Toal Operating Expenses 43,676 44,401
Capital Expenses
Capital Replacement 3,500 3,500
Capital Improvements 7,855 4,800
Total Capital Expenses 11,355 8,300
TOTAL USES 55,031 52,701
Ending Working Capital 28,699$ 32,059$
Business Principles:
1. Comply fully with all debt covenant
requirements.
2. Operate without operating deficit.
3. Maintain a cash flow reserve equivalent to
two months of operating expenses, with an
additional $500,00 for contingencies.
4. Fund a replacement sinking fund equal to
5% of the total system replacement value.
5. Benchmark with industry standards.
6. Prioritize capital projects via Water Master
Plan.
11 SOURCES – ALL FUNDS – CITYWIDE
General Fund
As “City’s Checkbook,” the General Fund consists of assets and liabilities used to finance the daily and long-term operations of the city government as a whole.
Authority
Borrowings
Cash
Debt
FY2025-26 & FY2026-27 Biennial Budget - CITY
13 Fire Protection:
100% - General Fund
Police Service:
96% - General Fund
Public Works (non-utility):
36% - General Fund
Community Services:
79% - General Fund
Community Development:
94% - General Fund
Economic Development:
31% - General Fund
Municipal Support:
36% - General Fund
14 General Fund Revenue Categories
* Amount in $000.
15 FY2025-26 & FY2026-27 General Fund REVENUE
Amended
FY2025
(in $000)
Projected
FY2026
(in $000)
Projected
FY2027
(in $000) Change1
Sales Tax 31,408$ 29,992$ 30,846$ -3.1% Measure O 30,415 29,951 30,803 -0.1% Property Tax 67,134 70,055 72,628 6.3% Hotel Visitors Tax 28,000 28,000 28,560 1.0% Other Taxes 5,900 6,018 6,779 8.4% Charges for Services 7,272 9,117 9,306 26.7% Fines, Forfeitures & Penalties 2,285 2,290 2,354 1.6% Licenses & Permits 3,045 4,349 4,433 44.2% Other Revenue:
Investment Income 1,855 1,969 2,232 13.2% Rental Income 1,177 1,685 1,692 43.5% Expense Reimbursement 1,437 1,390 1,449 -1.2% Other 1,685 2,768 2,546 57.7% 181,613$ 187,584$ 193,628$ 5.0%
1 Compares the average of FY2026 and FY2027 to FY2025.
General Fund Revenue Growth Trend
FY2025
16 FY2026 FY2027
$170,000In $’000
17 Supplemental Funding
Year 1 - $1,426,600
Year 2 - $1,186,870
Baseline Budget
Year 1 - $187,009,877
Year 2 - $193,653,178
Total Proposed Appropriation
Year 1 - $188,436,477
Year 2 - $194,840,048
General Fund Budget Development
Process
18 FY2025-26 & FY2026-27 General Fund EXPENDITURE
Amended
FY2025
(in $000)
Proposed
FY2026
(in $000)
Proposed
FY2027
(in $000) Change1
Fire 33,668$ 35,236$ 36,797$ 7.0% Police 85,738 87,861 91,156 4.4% Public Works 21,038 20,273 21,040 -1.8% Community Services 7,217 9,104 9,269 27.3% Community Development 7,065 7,939 8,121 13.7% Economic Development 9,038 6,058 6,123 -32.6% Municipal Support:
City Administration 4,794 4,052 4,081 -15.2% City Attorney 1,161 1,161 1,161 0.0% Finance 4,524 3,936 4,072 -11.5% Human Resources 2,229 2,109 2,184 -3.7% Information Technology 854 697 723 -16.9% Non-Departmental:
Debt Service 7,172 8,753 8,756 22.1% Utilities 857 1,257 1,357 52.5% 185,355$ 188,436$ 194,840$ 3.4%
1 Compares the average of FY2026 and FY2027 to FY2025.
19 General Fund Expenditure Categories
20 FY2025-26 & FY2026-27 General Fund Budget
Proposed
FY2026
(in $000)
Proposed
FY2027
(in $000)
Salaries & Benefits 108,456$ 113,260$ 57.8% Contractual 52,943 54,144 27.9%
Commodities 2,411 2,411 1.3%
Internal Service Charges 12,497 12,497 6.5% Tax Rebate 1,834 1,834 1.0%
Debt Service 8,753 8,756 4.6% Utilities 1,257 1,357 0.7%
Other 274 281 0.1%
Capital Expenditure 11 300 0.1% 188,436$ 194,840$ 100.0%
Do we have a balanced budget?
21 $381,211,910
Two-year combined revenue
Balanced Budget!
$381,193,225
Two-year total ongoing expenditures
(without One-time or Capital spending)
22 23
General Fund Sources vs. Uses
FY 2025-26
(in $000)
FY 2026-27
(in $000)
TOTAL SOURCES 187,584$ 193,628$
TOTAL USES 188,436 194,840
Less:
One-time Contractual 760$ 912$
Capital Spending 111 (871) 300 (1,212) TOTAL ONGOING USES 187,565 193,628
BUDGET SURPLUS/(DEFICIT) 19$ -$
Five-Year Capital Improvement Plan
24 FY 2025-26
($000)
FY 2026-27
($000)
FY 2027-28
($000)
FY 2028-29
($000)
FY 2029-30
($000)
STREET IMPROVEMENTS
Arterial 22,500$ 10,600$ 8,296$ 7,684$ 7,914$ Residential 1,700 3,300 2,264 2,295 2,327
TRAFFIC IMPROVEMENTS
Citywide Intersection - 500 500 500 500
PARK IMPROVEMENTS
Woodbury Park Expansion 500 - - - - Garden Grove Park Pickleball Courts 950 - - - - Park Master Plan Improvements 925 300 600 - - Citywide Park Light Pole Replacement 50 50 50 50 50 Park Irrigation System Replacement 120 120 - - -
HOUSING PROJECTS
St. Anselm Affordable Housing 2,000 - - - - HOME Projects 550 550 550 550 550 Purcell Building Rehabilitation 11 - - - -
FACILITY IMPROVEMENTS
Citywide Facility Replacement 1,479 1,200 - - -
WATER IMPROVEMENTS
Water Master Plan Improvements 11,355 8,300 14,500 4,500 3,500
SEWER IMPROVEMENTS
Sewer Master Plan Improvements 6,762 8,500 7,100 8,500 1,500 TOTAL 48,902$ 33,420$ 33,860$ 24,079$ 16,341$ Next Five Years CIP Spending Categories
25 Previous Five Years CIP Funding Trend
Proposed One-time Transfers
26 From
To
• $4M to Worker’s Comp Fund
• $3M to General Liability Fund
General Fund
27 THANKS!
Any questions?
▸ https://ggcity.org/finance
▸ [email protected]