Anaheim’s proposed budget for the next 12 months calls for $800 million in spending.
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 the community for the next 12 months.
However, 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 officials seek to minimize costs.
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 the region with revenue not keeping pace with rising costs.
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.
You can see the proposed budget here.
