Irvine city leaders have begun cutting city-sponsored events in an effort to avoid a structural budget deficit, which could reach nearly $40 million in less than two years and potentially $47 million by the end of the decade if spending patterns continue.
During a recent Tuesday night meeting, the City Council voted to cancel the annual CicloIrvine event. This free-streets day, which promotes cycling, walking, and outdoor activity in a car-free environment, will not return unless the council votes to reinstate it. City leaders stated that canceling CicloIrvine is expected to save the city approximately $677,000 annually.
This saving represents a portion of the estimated $37 million the city needs to save by July 2028. The city's plan, dubbed “Target ‘28,” aims to eliminate the projected structural deficit by that date through a combination of decreasing spending by $27 million and increasing revenue by $10 million. Council members previously considered and approved this long-term budget plan in late September.
City Manager Sean Joyce stated at a recent city council meeting that the city "became too wide and too tall too quickly." He noted that the savings from canceling CicloIrvine are comparable to the cost of four city employee positions. Spending reductions are largely centered on staffing; leaders are looking to eliminate dozens of vacant positions as employees retire or resign. Staff analysis indicates that full-time positions have increased by 28% over the past few years. Since 2019, costs for salaries and benefits have nearly doubled, increasing by 79%. Salaries, benefits, and overtime currently account for about 69% of the city’s general fund budget.
As of October 13, the city had 70 vacant positions that are not planned for immediate fulfillment. The city plans to reach 99 vacancies by July 2027 and 123 vacancies by July 2028, achieved through attrition rather than layoffs, to reduce spending and achieve financial stability. This strategy aims to shuffle existing employees to ensure essential services are maintained.
The City Council is also expected to review all upcoming city events to identify further opportunities for reductions or cancellations. City Manager Joyce commented that some events were implemented without proper council discussion, suggesting that events of a substantial scale should receive council support and approval before being undertaken due to their significant costs.
Councilmember Kathleen Treseder, who helped initiate the CicloIrvine event, expressed her support for prioritizing jobs. She stated that if cutting the event could save four jobs, she would choose to save the positions. Councilmember Melinda Liu also indicated a willingness to forgo some events from her own office to save positions that provide essential services to residents, aiming to avoid impacts on service levels and quality of life.
In addition to spending cuts, Councilmember James Mai suggested exploring new revenue avenues before increasing fees on residents. He proposed reevaluating the city’s ban on alcohol, casino, and gaming advertisers, noting that most major cities and events use such sponsors as significant revenue generators. Mr. Mai encouraged the city to consider these options.
City Manager Joyce noted that if the city successfully increases revenue and reduces spending in other areas, such as event curtailments, it might be able to retain more staff. He emphasized that substantial progress is needed to close the projected deficit. Mr. Joyce is scheduled to return to the council in early February with an update on the city’s sales tax and property tax numbers, two key revenue sources for Irvine. He stated that further savings will require careful review of vacancies, workloads, and modifications to service delivery to achieve greater efficiency, requiring thoughtful, difficult decisions while maintaining critical services for residents.
