The Fullerton City Council will discuss a $290.4 million budget proposal for fiscal year 2026-27 during a study session on July 14, 2026. The council faces a projected $3.8 million shortfall in the General Fund, primarily due to higher service costs, labor agreements, and inflation.

Current figures show General Fund expenditures at $150 million, with revenues at $146.3 million. A previous deficit of $13.7 million was reduced through departmental efficiency measures.

The proposed budget allocates funds across various categories:

– General Funds: $150,462,773
– Special Revenue Funds: $39,878,224
– Water Fund (operating only): $45,973,797
– Other Enterprise Funds (operating only): $13,623,759
– Capital Improvements Program: $28,883,342
– Successor Agency: $11,603,925
– Total Budget: $290,425,820

The Capital Improvement Program focuses on infrastructure but cannot be used to cover ongoing costs. Three scenarios for addressing the shortfall include:

– Scenario A: Cuts $4.6 million and unfunds 11 vacant positions, using $3.8 million from reserves.
– Scenario B: Aims for a balanced budget for one year with $6.2 million in cuts and 27 vacant positions, avoiding reserve use.
– Scenario C: Seeks a balanced budget over three years with $7 million in cuts and 35 vacant positions, significantly impacting services.

The city’s own Budget Options Detail chart — the centerpiece that lays out the three scenarios — cannot agree with itself. The summary says the options would unfund 9, 23, and 31 vacant positions. The totals row at the bottom of the chart accompanying the agenda report says 11, 27, and 35. Those are not rounding differences. They are the headcounts of real jobs the city proposes to erase.

In the two community budget meetings, which collectively had approximately 32 residents show up, urged the city to maintain public safety and infrastructure funding while considering alternative revenue measures. The council’s decisions could significantly affect the city’s financial outlook, safety, and service provision.

Your voice matters. These decisions matter. Please attend the special budget meeting on July 14 at 5:30 pm at City Hall located at 303 West Commonwealth Avenue, Fullerton.