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ANAHEIM, Calif. (June 9, 2025) — Anaheim’s proposed budget for the next 12 months calls for $800 million in spending on daily life and major improvement projects while also addressing some near-term fiscal challenges.
Anaheim’s total proposed budget for the 12 months from July 2025 through June 2026 — referred to as fiscal year 2025-26 — is $2.4 billion, up 4 percent from a year earlier.
The city’s budget includes spending on daily services including police, fire, libraries and community centers as well as Anaheim’s electric and water services, the Anaheim Convention Center and other operations.
Anaheim’s fund for daily services, known as the general fund, is budgeted at $527.2 million, up 7 percent from the budget adopted a year ago.
The proposed budget’s capital improvement program for upgrades to parks, libraries, roadways, sewers, landscapes, electric and water systems and more is $268.6 million, up 15 percent from a year earlier.
Together, the general fund and capital improvement program make up nearly $800 million in direct spending and investment in our community for the next 12 months.
While the proposed budget carries on Anaheim’s extensive city services, there are challenges.
Revenue from hotel stays — Anaheim’s largest source of revenue — is down by about 3 percent for the current fiscal year through June, adding to a projected $50.5 million deficit for the current fiscal year.
Modest hotel-stay revenue growth of 2.4 percent is estimated for the next fiscal year.
At the same time, labor and other costs continue to rise, resulting in a projected budget deficit of $63.9 million for the next 12 months.
There are no planned service cuts or higher taxes in Anaheim’s proposed budget, even as we seek to minimize costs wherever possible.
To arrive at a balanced budget for the coming year while upholding city services, the proposed budget uses several one-time funding sources:
- $33.6 million: in remaining money from $138 million in bonds issued in 2021 to address deficits driven by the pandemic closures of theme parks, the convention center and sports and entertainment venues. The proceeds ended up not being needed at that time but have been used in the past two years to close gaps in spending and revenue.
- $20.3 million: in proceeds from the $43 million sale in 2024 of the city’s interest in a parking structure next to the Hilton Anaheim and the Anaheim Convention Center. The remaining $15.8 million in available parking structure proceeds is set to go toward the following year’s budget for 2026-27.
- $10 million: in funding previously set aside to reduce or retire debt.
The city’s deficit reflects challenges faced by local governments and organizations across our region with revenue not keeping pace with rising costs.
Unlike other cities, though, Anaheim’s challenge is temporary.
The last of $510 million in city bonds issued in 1997 for the expansion of The Anaheim Resort are estimated to be paid off by 2027.
That will free up more than $120 million in revenue, with higher future costs impacting some of that freed up revenue and City Council discussion expected on how to use the remainder.
Longer term, major expansions with OCVibe around Honda Center and DisneylandForward around the theme parks are expected to generate additional city revenue in coming years and decades.
Funding Orange County’s most extensive city services
The budget upholds Anaheim’s county-leading public safety and community services among cities.
Nearly 65 percent of the city’s general fund goes toward police and fire.
Staffing for the Anaheim Police Department, the largest city police department in Orange County, is at a historic high of 430 positions for sworn officers.
Anaheim Fire & Rescue, which provides fire, medical and other emergency services, is budgeted at 248 sworn firefighters and paramedics with ongoing construction of a fire station, the city’s 12th, and remodeling of fire station 4 in west Anaheim.
Anaheim Community Services, which oversees 68 parks, 12 community centers and seven libraries, is budgeted at $79 million, including $8 million in improvement projects.
Park improvement spending includes the ongoing upgrade of Boysen Park, a new playground at Maxwell Park and development River Park, a 3-acre park coming along the Santa Ana River.
BY THE NUMBERS
$2.4 billion
Anaheim’s total, overall city budget. It includes the city’s general fund for day-to-day services, a capital improvement program for big projects and enterprise funds for the city’s water and power utility, the Anaheim Convention Center, golf courses and other facilities and operations. Anaheim’s overall budget for fiscal year 2025-26 is up 4 percent from the prior fiscal year, driven by higher revenue and spending for Anaheim’s general fund, enterprises and capital improvement spending.
$968 million
Anaheim’s enterprise funds. They cover city operations that collect revenue for providing services to customers. These include Anaheim Public Utilities, the city’s not-for-profit water and electricity provider, and Convention, Sports & Entertainment, which runs the Anaheim Convention Center and oversees Honda Center, Angel Stadium of Anaheim, Grove of Anaheim and the ARTIC transit center.
Enterprise funds make up the largest portion of Anaheim’s overall budget, with nearly all of the revenue they generate going to offset the expense of their operations or to fund improvements. Residents benefit from reliable electricity and water service and rates that are lower than in surrounding cities. Residents also benefit from visitors who come to Anaheim for conventions, sports and entertainment and spend money on hotels, shopping and dining.
Spending by enterprise funds is budgeted up 5 percent from the prior year.
$527 million
Anaheim’s general fund. This is the city’s main source of funding for day-to-day operations, covering spending on staffing and services and programs at parks, libraries and community centers, as well as police, fire, paramedics and other city services. The general fund is up 7 percent from the prior fiscal year.
$268.6 million
Anaheim’s capital improvement program. The capital improvement program funds upgrades to parks, libraries, roadways, sewers, landscapes, electric and water systems and more. The program is funded in some cases by enterprise revenue. In other cases, it’s funded by outside sources, including the state’s gasoline tax, a portion of sales tax for transportation, federal Community Development Block Grants, developer fees and other restricted sources. The capital improvement program, which fluctuates from year to year based on projects and funding, is up 15 percent from the 2024-25 budget.
$76.3 million
Anaheim’s reserves balance going into the new fiscal year, equal to 14 percent of general fund spending.
Anaheim’s City Council will hold budget overview workshops on Tuesday, June 10, and Tuesday, June 17, with adoption consideration on June 17.
You can see the proposed budget here.