San Bernardino oversight committee presses city on Measure S spending as revenues fall

SAN BERNARDINO — Staff presented the Measure S and general fund year-end results and a proposed fiscal 2025–26 budget to the Measure S Citizen Oversight Committee at a meeting that began at 5 p.m., and commissioners pressed for clearer detail on how one-time Measure S dollars are translating into homelessness, parks and youth programs.

The committee heard that fiscal year 2023–24 general fund revenues were about $232.6 million and expenditures about $203 million, leaving a recurring fund balance that staff reported as approximately $202 million. Measure S receipts for 2023–24 were reported at about $51 million, with roughly $40 million spent directly on Measure S programs in that year; staff said the remainder returned to the city's fund balance for one-time capital projects.

Director Fortune of the finance department and budget staff told the committee the city has revised its current-year revenue projection down from the adopted $236 million to about $222 million, and projected a conservative $228.2 million for 2025–26. "Our revenues are moving down by $14,000,000 this time of year," a finance staff member said during the presentation.

Why it matters: Measure S is a one-cent local sales tax voter-approved in November 2020 to support public safety, cleaner neighborhoods, business retention and improvements to streets, parks and libraries, plus youth, senior and homelessness services. Committee members said they want to ensure Measure S money is used in line with that intent rather than accumulating in long-term reserves.

Discussion and committee requests

Several commissioners questioned why significant Measure S and capital-project balances remain unspent. "I don't understand why we're not getting more of these dollars out into the community," Commissioner Martin said after reviewing a slide showing under-spending in economic development and capital projects.

Staff answered that much of the year-end savings arises from typical project phasing (planning and design phases absorb a small portion of CIP budgets until construction begins), higher-than-expected construction costs, and salary savings from vacancies. Eddie Mendez, the city's principal civil engineer, described the capital-delivery timeline: "The entire process takes really takes up around 1 to 4 years," and earlier phases (planning/design) often cause carryover into later fiscal years.

Commissioners asked for follow-up reports and speakers to clarify program-level spending: - A request for a Community Development report on homelessness grants and where relevant funding is recorded, because some homelessness programs are funded outside the general fund. - A request that the police department brief the committee on the park ranger and "quality of life" teams and how Measure S supports those efforts. - A request to the parks and recreation department for a detailed accounting of youth and after-school programming funded by Measure S. - A request that economic development provide an update on Grant and program expenditures listed in the Measure S program schedule.

Budget and fiscal strategy presented

Staff described a conservative budget strategy for FY25–26 that uses a mix of reductions and one-time fund balance to maintain services amid lower sales-tax receipts. The adopted plan the city presented to council includes: - Departmental reductions equal to roughly 5% in aggregate (staff cited both $10 million and $10.7 million as estimated efficiency savings in slides); - A six-month hiring deferral for about 150 positions expected to save roughly $8.1 million in the first half of the year; - A one-time use of fund balance (staff noted $31.2 million in fund balance appropriated to infrastructure in the council-approved budget) to advance capital projects.

Staff noted Measure S is a full 1% sales tax return to the city and therefore a larger, but more volatile, component of the general fund than pooled sales-and-use tax revenue. The finance presentation attributed most of the near-term revenue decline to weaker consumer spending trends and a cautious forecast from a contracted sales-tax consultant.

Capital projects overview

Public Works presented a Capital Improvement Program snapshot and status updates on key projects funded in part by Measure S: the California theater renovation (construction under way and expected to wrap late this year), animal shelter expansions, major park renovations including a large park project scheduled through spring 2026, and a pavement-management program tied to a data-driven street-assessment effort. Staff emphasized that planning and design consume a small percentage of a CIP budget, and the bulk of spending occurs when projects enter construction.

Follow-up actions requested by the committee

Committee members requested that staff invite the police department (park rangers/quality of life), community development (homelessness grants and programs), parks and recreation (youth program details) and economic development (program-level spending) to provide program-level reports at upcoming quarterly meetings. Commissioners also discussed drafting a letter from the oversight committee to the City Council summarizing the committee's concerns and requests once department reports are received.

Votes at a glance

The committee approved the consent calendar at the start of the meeting (motion moved by Commissioner Daley; seconded by Commissioner Baxter). The meeting adjournment motion was moved by Commissioner David and seconded by Mark Taylor; the chair announced adjournment at 6:25 p.m.

What remains open

Committee members pressed for clearer visuals and program-level metrics showing how Measure S funds align with the ballot's stated priorities (public safety, cleaner neighborhoods, economic development, parks and library maintenance, youth/senior/homelessness services). They asked staff to return with department presentations so the committee can assess whether Measure S expenditures meet the measure's intent or instead are remaining in one-time reserves for capital spending. The committee set a target to revisit the items at its next quarterly meeting.

Ending

The meeting closed after the committee confirmed its requests for departmental follow-ups and a CIP status update from Public Works; no further formal votes on the adopted budget or CIP were recorded at this meeting.