City finance update: master plan flags multi‑year general fund shortfall, RightPoint project a major driver

Larry Hartlop, with the Shared Resource Center, presented Riverside’s July financial update and a 10‑year master financial plan to council on Aug. 4, saying year‑to‑date revenue and spending are near budget but the long‑term projection shows deficits without changes. "As of right now, through July 31 ... we've brought in about $21,000,000 for revenue for the City of Riverside, and of that about $6,800,000 was the income tax," Hartlop said. He reported property‑tax receipts near $2,000,000 and total expenses through July of about $21,500,000. Hartlop said the city has roughly $10,800,000 in capital and debt showing in the year‑to‑date figure, and that most of that is related to the RightPoint project and an associated annual note. He and staff explained that the city reissues a one‑year note to pay off the previous year’s note, producing both revenue and expense entries in the year the note is issued. The master plan model assumes roughly 1% annual growth in income tax revenue and holds staffing and other core assumptions steady. Under that baseline, the plan shows the general fund running into increasing deficits late in the decade and crossing into a negative cash position around 2031 unless revenues or expenses change. Council members pressed staff for more detail about how RightPoint’s receipts, rents and debt interact with the general fund. Hartlop and the city manager said staff will provide a detailed RightPoint income/expense accounting and outlined potential strategic options to improve the outlook, including seeking tenants for underused space and examining whether police or other city functions could occupy portions of municipal properties to change cash flows. No formal decisions were taken; staff said the master plan is intended to inform the September–October budget process and that more detailed RightPoint financials and scenario analyses will be provided to council before budget hearings.