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Home My WebLink AboutFY 2025-26 Proposed Operating CIP Budget Workshop PPTFY 2025/26 Proposed Operating & CIP Budget Workshop #2 May 22, 2025 Bill Gallardo, Interim City Manager Tanya Romo, Deputy City Manager Jeannie Fortune, Interim Director of Finance & Management Services Zuyva Ruiz, Budget Division Manager FY 2025/26 Budget Workshop #2 Agenda 2 •Executive Summary & Key Highlights •Proposed FY 2025/26 General Fund Revenue & Expenditure •Position Summary & Fund Balance •Capital Improvement Program (CIP) •Total Proposed FY 2025/26 Budget Summary •FY 2025/26 Budget Calendar EXECUTIVE SUMMARY 3 Aligning Strategic Goals & The Budget 4 FY 2024/25 Key Highlights Love Your Block Grant – Community Impact Supports clean-ups, murals, community gardens, and other revitalization efforts; Strengthens partnerships between residents, nonprofits, and City staff; Advances equity and civic engagement through grassroots initiatives. 5 FY 2024/25 Key Highlights Love Your Block Grant – Empowering Communities $18,000 share of grant funding awarded to resident-led community improvement projects; Total requested was $40,698; City is contributing the remaining $22,698 to fully fund all qualified applicants through departmental savings – no additional appropriations needed; Projects combat blight, promote beautification, and boost neighborhood pride. 6 Love Your Block – Awarded Projects Unity in the Game: A Mural for Western Regional Little League Arrowview Neighborhood Association Campo Santo Mural The Bountiful Block Bond Street Clean-Up Blair Park Free Little Library Pacific Street Pride Electric Avenue Art and Garden Project Downtown Beautification Improving Arrowhead Heights Voices of Hope: A Community Mural Against Domestic Violence Improving the Perishing Street with Colorful Murals 7 FY 2025/26 Key Highlights •Balanced budget amidst a complex and uncertain economic landscape •National, state, and local economies continue to face volatility and uncertainty 8 FY 2025/26 Key Highlights •Operational expenditure adjustments (decrease) of 5% to ensure fiscal sustainability & flexibility •Proposed 6-month targeted non-safety hiring deferral to align with organizational priorities 9 FY 2025/26 Key Highlights •In Q1 of fiscal year 2025-26, one-time programs, and/or projects to support city-wide operations and initiatives will be proposed for City Council’s consideration:  Additional street segment work; Facility improvements; Operational enhancements. 10 PROPOSED FY 2025-26 GENERAL FUND REVENUES 11 Proposed FY 2025/26 Revenues 12 Revenue Category FY 2022-23 Actuals FY 2023-24 Actuals FY 2024-25 Adopted FY 2024-25 Projected Year-End Total FY 2025-26 Proposed % Change from Projected Actuals Sales and Use Tax $55,651,769 $55,612,168 $58,623,667 $52,796,986 $52,058,494 -1.4% Utility Users Tax $31,208,992 $28,671,310 $28,893,750 $30,229,505 $31,740,980 5.0% Franchise Tax $12,692,337 $14,328,378 $14,939,265 $14,402,938 $14,560,000 1.1% Other Taxes $11,173,774 $12,414,954 $15,060,480 $11,259,440 $11,780,000 4.6% Miscellaneous $3,304,140 $7,737,244 $4,238,229 $5,335,144 $7,411,797 38.9% Licenses & permits $15,740,360 $16,059,891 $16,989,168 $14,083,412 $14,287,000 1.4% Fines and forfeitures $1,082,037 $766,079 $1,593,262 $876,142 $891,000 1.7% Investment income $963,828 $3,373,049 $999,900 $2,635,949 $1,050,000 -60.2% Use of Money and Property $3,158,026 $5,273,844 $2,640,627 $4,887,459 $6,383,760 30.6% Intergovernmental $2,225,143 $6,708,044 $2,949,651 $5,506,961 $5,018,400 -8.9% Charges for services $9,107,888 $6,829,807 $10,319,801 $6,275,538 $5,822,130 -7.2% Property Taxes in Lieu of VLF $21,312,883 $23,604,046 $25,806,000 $24,180,179 $25,149,250 4.0% Measure S Sales Tax $52,124,592 $51,259,760 $53,550,000 $50,159,000 $52,040,000 3.8% General Fund Revenue Total $219,745,769 $232,638,574 $236,603,800 $222,628,653 $228,192,811 2.5% Conservative & Realistic Revenue Forecasting •Acknowledges external uncertainty; relies on verified local trends •Conservative assumptions applied to protect against volatility •$6M growth reflects real, sustainable recovery – not temporary spikes •Forecast safeguards the City’s fiscal health against external factors 13 PROPOSED FY 2025/26 GENERAL FUND EXPENDITURES 14 Expenditure Budget Strategies •To align with the City’s modest revenue growth outlook, departments have identified $10.7m in operational adjustments (decreases), ensuring the continued delivery of essential City services. •At the same time, the City carefully accounted for cost increases, including: Step advancements for employees ($1.5m); Rising retirement contribution costs ($0.4m); Health benefit cost increases ($2.9m); Growth in unfunded accrued liability (UAL) obligations ($4m). 15 Expenditure Budget Strategies •Proposed 6-month targeted non-safety hiring deferral to strategically align staffing with organizational priorities and fiscal sustainability •Estimated $8.1m in savings to achieve a balanced budget while preserving the City’s Fund Balance •Staff will monitor fiscal conditions and may recommend extending the deferral if needed to maintain financial stability •Council updates to be provided on a quarterly basis 16 Proposed FY 2025/26 Expenditures 17 Department FY 2022-23 Actuals FY 2023-24 Actuals FY 2024-25 Adopted FY 2024-25 Projected Year-End Total FY 2025-26 Proposed % Change from Adopted Mayor $306,227 $279,481 $298,025 $298,025 $328,273 10.1% City Council $1,015,993 $1,061,509 $1,156,448 $1,156,448 $1,191,224 3.0% City Clerk $1,300,833 $1,391,383 $1,942,869 $1,571,500 $1,928,538 -0.7% City Attorney $4,559,283 $4,795,033 $5,181,587 $5,181,587 $5,197,318 0.3% General Government $32,886,990 $19,370,893 $17,967,471 $18,227,743 $17,170,675 -4.4% City Manager $2,103,300 $3,424,979 $5,156,385 $3,635,811 $3,729,562 -27.7% Human Resource & Risk Management $2,055,421 $2,390,082 $2,784,522 $2,772,510 $2,881,727 3.5% Finance & Management Services $5,163,873 $5,044,637 $6,612,496 $5,947,838 $7,048,011 6.6% Economic Development $0 $237,278 $1,785,363 $1,814,730 $2,900,814 62.5% Special Assessment District $115,996 $114,321 $150,000 $120,000 $175,000 16.7% Capital Improvement Projects $89,235 $320,505 $0 $3,715 $0 #DIV/0! Community Development & Housing $9,040,721 $9,341,981 $15,004,584 $10,721,947 $14,866,073 -0.9% Police $103,840,116 $114,176,196 $132,847,479 $124,951,642 $134,646,578 1.4% Parks, Recreation & Community $4,132,108 $5,109,685 $6,000,401 $5,936,896 $6,217,572 3.6% Public Works $21,764,427 $26,606,218 $35,591,030 $29,008,952 $32,930,148 -7.5% Library $2,610,050 $2,601,058 $4,975,030 $4,221,603 $5,088,922 2.3% Non-Departmental $0 $0 $0 $0 ($8,107,624)#DIV/0! General Total Operating Expenditures $190,984,572 $196,265,240 $237,453,690 $215,570,946 $228,192,811 -3.9% PROPOSED REALLOCATIONS 18 General Fund to Gas Tax Reallocations 19 •Should Council approve, we will be increasing the O&M budget in the Gas Tax fund by reallocating these expenses, reflecting a more accurate funding alignment. Current Gas Tax fund Balance is $3.67m. Program FY 2024-25 Amended FY 2024-25 YTD Actuals as of 5/16/25 FY 2025-26 Proposed Reallocation Street Maintenance $741,163 $2,423 $1,500,000 Street Light Maintenance $1,927,518 $824,379 $1,000,000 Traffic Signs & Markings $479,856 $119,510 $479,855 Operating Expenditures $3,148,536 $946,311 $2,979,855 POSITION SUMMARY 20 Approved Personnel Changes in 2024/25 21 Dept Program Position Titles Total FTE Change Mayor & City Council Approval Date Resolution Notes Adopted Position Summary 2024-25 951 Current Year Adjustments INCREASES CDH 9093 - Encampment Reso Fund R3 FY24/25 1 - Homeless Outreach Coord. 3 - Homeless Outreach Sp. 4 12/4/24 2024-230 Encampment Resolution Fund (ERF) Grant from State Dept. of Housing & Community Development. Library 9078 - Library Animaker Space 2 - Library Assistants 2 10/2/24 2024-212 Approved for the Library Animaker Space Project Police 0157 - Quality of Life 1 - Management Analyst 1 7/1/24 2024-094 Approval of the CDBG Annual Action Plan Police 9092 - COPS Hiring Grant 2024 5 - Police Officer 5 11/20/24 2024-224 Acceptance of 2024 COPS CHP Grant. Police 8652 - San Manuel CCF 2107-20201 - Police Sergeant 2 - Police Officers 3 12/4/24 2024-234 3rd Amendment to the San Manuel Community Credit Fund Restricted Grant for Police Services. Police 9104 - RUSD Policing Services 1 - Police Officer 1 3/5/25 2025-260 Rialto Unified School District Police Services. Sub-total increases 16 DECREASES Police 8939 - CA For All YouthWorkforce 2 - Records Technicians (2)Expiration of Youth Workforce Grant Police 8939 - CA For All YouthWorkforce 4 - Community Service Officers (4)Expiration of Youth Workforce Grant Sub-total decreases (6) Net Change 10 Amended Position summary 2024-25 961 Total Proposed FY 2025/26 FTE 22 Department FTE Count 010 Mayor 2 020 City Council 9 030 City Clerk 9 050 Legal Services 1 090 General Government 6 100 City Manager 13 110 Human Resources & Risk Management 18 120 Finance & Management Services 38 135 Economic Development 12 180 Community Development & Housing 80 210 Police 486 230 Animal Services 71 250 Information Technology 19 380 Parks & Recreation 29 400 Public Works 143 470 Library 23 Total Proposed FTE FY 2025/26 959 FUND BALANCE 23 Fund Balance Summary 24 •Balanced FY 2025/26 Operating Budget; reserves maintained with no reliance on one-time funds for operations •Strategic use of $23.8m in capital project reserve to advance critical CIP projects 20-Year Historical Fund Balance 25 Fund Balance Summary 26 - 50,000,000 100,000,000 150,000,000 200,000,000 250,000,000 Revenue, Expense and Fund Balance Fund Balance Revenues Expenditure Required Reserve Proposed Use of Fund Balance (CIP Projects – $23.8m) City Required Reserve - 25%74.94%78.38%86.85%89.09%75.65% GFOA Recommended Reserve - 17% Fund Balance Designation 27 Category FY 2021/22 Actuals (audited) FY 2022/23 Actuals (audited) FY 2023/24 Actuals (audited) FY 2024/25 Estimated (current year) FY 2025/26 Estimated (proposed) Beginning Fund Balance, as of June 30th 110,742,632$ 156,449,095$ 173,462,555$ 202,925,562$ 198,338,995$ Revenues 208,775,374$ 221,320,505$ 233,643,492$ 222,628,655$ 228,192,811$ Expenditures (includes CIP Expenditures)(163,068,911)$ (204,307,045)$ (204,180,485)$ (221,633,597)$ (228,192,811)$ Net Surplus/Deficit - Use of Fund Balance)45,706,463$ 17,013,460$ 29,463,007$ 995,058$ (0)$ Approved Use of Fund Balance - Street Repair (2,650,000)$ Approved Use of Fund Balance for Fleet (2,931,625)$ (1,929,129)$ Proposed Use of Fund Balance - CIP Projects (23,775,000)$ Ending Fund Balance 156,449,095$ 173,462,555$ 202,925,562$ 198,338,995$ 172,634,866$ Category ACFR 2021-22 FUND BALANCE 06-30-2022 ACFR 2022-23 FUND BALANCE 06-30-2023 ACFR 2023-24 FUND BALANCE 06-30-2024 FUND BALANCE 06-30-2025 (estimated) FUND BALANCE 06-30-2026 (estimated) Nonspendable 40,204,687 41,421,536 40,806,497 41,000,000 40,000,000 Restricted 2,107,208 2,086,366 2,099,574 2,100,000 1,800,000 Committed Animal Services - 68,387 - - - General Plan Update 100,000 142,877 551,312 600,000 - Measure S - Capital Projects 63,342,854 81,762,949 86,734,706 88,766,737 88,766,737 Proposed use of CIP reserves (23,775,000) 15% Emergency Reserve 24,460,337 28,788,264 35,618,054 33,245,040 34,228,922 10% Economic Contingency Reserve 16,306,891 19,192,176 23,745,369 22,163,360 22,819,281 Assigned 6,669,342 - 13,370,050 10,463,858 Unassigned 3,257,776 - - - 8,794,926 TOTAL FUND BALANCE 156,449,095 173,462,555 202,925,562 198,338,995 172,634,866 City Required Reserve - 25%74.94%78.38%86.85%89.09%75.65% GFOA Recommended Reserve - 17% CALCULATION OF FUND BALANCE FUND BALANCE DESIGNATION CAPITAL IMPROVEMENT PROGRAM City Budget Workshop Presented by City of San Bernardino Public Works Department Capital Improvement Program Agenda •Capital Improvement Program (CIP) Project Delivery Summary •CIP Budget Summary Capital Improvement Program (CIP) Project Delivery Summary Project Delivery Phases 31 Project Delivery Workflow Process PLANNING DESIGN CONSTRUCTION 1 year to 4 years Preliminary Engineering Design Bid & Award Design Construction Bid & Award Construction CIP Budget Summary 34 General Buildings $0.25M (1.53%)Parks and Recreation $2.0M (12.20%)Storm Drain $8.0M (48.81%) Streets $5.6M (34.41%) Traffic Controls $0.5M (3.05%) Existing Capital Projects Funding Needs by Category FY 2025/2026: $8M Measure S $8.4M Special Funds $16.4M Needed for existing Projects 35 General Buildings $3.3M (11.24%) Parks and Recreation $2.1M -7.10%, Storm Drain $0.35M (1.18%) Streets $22.6M (76.49%) Traffic Controls $1.2M – 3.99% FY 2025/2026: $13.43M Measure S $16.15M Special Funds $29.58M Total in Proposed Projects Proposed Capital Projects Funding Needed by Category 36 Proposed 2025/26 CIP Summary CIP Categories General Fund Other Funds TOTAL Buildings 3,225,000$ 250,000$ 3,475,000$ Parks & Recreation 2,100,000$ 2,000,000$ 4,100,000$ Storm Drain 8,350,000$ -$ 8,350,000$ Streets 10,100,000$ 18,012,080$ 28,112,080$ Traffic Controls -$ 1,680,000$ 1,680,000$ Grant Total $ 23,775,000 $ 21,942,080 $ 45,717,080 TOTAL PROPOSED FY 2025/26 BUDGET 37 Total Proposed FY 2025/26 Budget – GENERAL FUND 38 Total Proposed FY 2025/26 Budget – OTHER FUNDS 39 BUDGET CALENDAR 40 FY 2025/26 Budget Calendar 41 Date Purpose April 29, 2025 Special Council Meeting: Budget Workshop #1 (Operating & CIP) May 22, 2025 Special Council Meeting: Budget Workshop #2 (Operating & CIP) June 4, 2025 Regular Council Meeting: Public Hearing & Budget Adoption Questions? 42