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Council adopts mid‑biennium budget update; staff outlines revenue shifts, capital priorities
Summary
City finance staff presented the mid‑biennium review showing projected sales-tax declines tied to a fulfillment‑center operational change, a partial offset from property tax and investment gains, and a planned draw from reserves to cover capital projects; the council approved the update.
The Redlands City Council adopted its mid‑biennium budget update Tuesday after a presentation by Finance Director Garcia outlining revenue changes, capital priorities and planned uses of reserves for upcoming projects.
Garcia told the council the city’s two‑year budget covers more than $500 million in appropriations. The presentation identified a projected loss of approximately $2.7 million in sales and Measure T sales tax associated with changes at a major local fulfillment center; staff said some activity that had been recorded as point‑of‑sale in Redlands is being re‑allocated because of operational changes at the company. Garcia said this shortfall is partly offset by an anticipated $900,000 increase in property tax and continued growth in business-license revenue from compliance efforts.
The presentation said operations at the Museum of Redlands will become fully active in fiscal year 2026 and that roughly $400,000 would be needed to cover insurance, services and supplies for the museum in that year. The city’s planned use of reserves for fiscal year 2026 rose to $11.1 million from the originally budgeted $9.4 million; despite the drawdown, staff said the general‑fund balance will remain above $23 million.
Major capital and Measure T priorities cited in the presentation include Safety Hall design and construction planning, replacement of key fire vehicles and generator upgrades, park improvements at Texonia and Ford Park, and ongoing contributions toward homelessness programs. Garcia said the city is implementing new budgeting software to improve forecasting and that more work remains to fund other unfunded projects such as ADA transition planning and additional park improvements.
Public comment included questions about the form and length of debt financing for Safety Hall and concerns about the city’s long‑term commitments. Resident Dennis Bell asked whether large debt service should go to voters and requested more public detail on project costs. Andy Holder urged “shop local” efforts as a way to support sales tax.
The council voted unanimously to adopt the mid‑biennium budget update. Council members thanked finance staff for the analysis and noted the city remains in a stronger fiscal position than many neighboring jurisdictions despite near‑term revenue volatility.
What happens next: Staff will incorporate the mid‑biennium adjustments into the city’s fiscal tracking and proceed with design and procurement steps on funded capital priorities. Projects that require additional funding or debt issuance will return to the council with specific financing plans.
