Riverside staff present FY25–26 budget amendment; council sets June 17 follow-up meeting

City staff presented a proposed amendment to the city’s two-year FY2024–26 budget and recommended the City Council receive the report and return on June 17 for final consideration.

The presentation, led by the city manager and a budget director identified in the record as Sergio, described a financially “strong” starting position but flagged multiple revenue risks over the amendment period, including reductions in property- and sales-tax projections and uncertainty tied to federal policy and local development timing. Staff said the amendment includes proposed expense adjustments, targeted cuts and one-time transfers intended to preserve reserves while maintaining core services.

Why it matters: the amendment would shape spending and staffing plans across major departments, affect the city’s use of Measure Z revenue, and set aside funds for long-term pension liabilities.

Staff told the council the city currently holds tens of millions in reserves and is projecting declines in several revenue categories for the next fiscal year. The presentation identified a number of specific adjustments: proposed reductions to maintenance and marketing spending, deferment of some capital and software projects, and targeted personnel-related increases tied to negotiated labor agreements. Measure Z was singled out as a major revenue source; staff presented scenarios that reduce Measure Z receipts versus the adopted budget and proposed a one-time transfer to public safety to partially offset a shortfall.

Staff also discussed enterprise funds, including the electric, water and refuse funds, and detailed recommended adjustments for contractor costs, vehicle acquisitions and chemicals used in utilities operations. The budget team said they planned to use cautious hiring and temporary staffing adjustments to limit spending while retaining service capacity.

Council action and next steps: after the presentation the council moved, seconded and voted unanimously to schedule a follow-up meeting on June 17 to consider the amendment; the transcript records the motion and a unanimous vote but does not record the mover and seconder by name. Councilmembers asked for continued engagement with departments and for staff to bring back the final amended budget at the June meeting.

Discussion versus decision: the meeting record shows staff recommendations and council direction to return on June 17 for a final vote; the amendment itself was not adopted at this meeting.

Budget numbers and clarifications drawn from the staff presentation: staff stated there are approximately $32,000,000 in general reserves and described an additional large reserve pool (figures in the presentation included a separate $130,000,000 reference for other reserves or funds). Staff presented Measure Z totals and proposed adjustments but noted the figures depend on updated revenue projections. Several specific dollar-line items and multi-year totals were discussed by staff during the slideshow and are summarized here as staff presented them; the transcript contains numerous numeric items and occasional transcription artifacts, and the city’s published budget documents should be consulted for official totals.

Public record: staff invited public comment during the item; no public speakers were recorded on the line during the budget presentation. The council’s next scheduled action on the amendment is the June 17 meeting the council set at this session.