THE GARDEN GROVE City Council approved pay raises for employees and some budget adjustments (Shutterstock).
By Jim Tortolano/Orange County Tribune
The finances of the City of Garden Grove are strong but there are some warning signs on the horizon.
At Tuesday’s meeting of the city council, Finance Director Patricia Song reported that the city had a banner year.
“The audited financials show that for fiscal year 2022-2023 the city had a positive operating result of $47.3 million due to … higher tax revenues and increase in investment income,” according to Song.
That’s an increase of $10.3 million over the year before.
However, good times may not last forever. While income is projected to exceed expenses at least through the 2027-28 fiscal year, costs are expected to rise at a rate when they will eventually exceed income.
For 2023-2024 (the current year) general fund income over expenses is projected to be $175.4 million to $168.8 million. That gap narrows annually until income exceeds expenses by only about $400,00 in 2026-27 and declines to $200,000 in 2027-8.
The solution, according to city officials, is to pursue community and economic development to bring in more income and improve infrastructure.
OC Tribune Staff orangecountytribune.com Garden Grove,Garden Grove City Council
SOURCE
2024-01-10 18:01:00 , Garden Grove – ORANGE COUNTY TRIBUNE
