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Yucaipa presents draft fiscal 2025–26 budget that balances this year but leaves long‑term gaps
Summary
City staff presented a balanced draft FY26 budget May 12 that uses Measure S and fee changes to close an immediate gap but leaves long‑term funding shortfalls for public safety and deferred maintenance, and lists $6.2 million of excluded programming.
City staff presented a draft fiscal year 2025–26 budget to the Yucaipa City Council on May 12 that staff described as balanced for the coming year but reliant on short‑term measures and transfers that leave structural gaps beyond FY26.
The draft shows general fund inflows and outflows of about $42 million and a public safety fund budget of about $31 million. Staff said revenues from Measure S and higher waste‑hauler franchise fees helped close an earlier deficit but do not fully cover public safety costs, and the city expects to transfer approximately $18 million from the general fund to the public safety fund to make it whole for FY26.
Staff said the city employed $6.2 million in targeted reductions across programs, services and training to reach a balanced draft and noted that the fire fund is on track to be fully depleted in FY26, creating pressure on future general‑fund budgets. The draft also separates out the STARS after‑school program from the general fund; the STARS program remains a pass‑through grant administered by the city and does not net into general fund revenues.
The presentation broke the budget down by major inflow categories — property tax (roughly $10 million in the general fund), sales tax (about $12 million, including an estimated $6 million from Measure S), and intergovernmental/grants — and by major outflows — salaries and benefits, operating expenditures and transfers (including the transfer to public safety). The presentation included an org chart of staff and a list of programs excluded from the draft because of funding limits, which totals roughly $6.2 million. Examples included deferred maintenance and the paramedic squad vehicle (roughly $2.3 million still unfunded on staff lists).
Council and staff discussed uncertainties that will affect final numbers before adoption June 9, including the final Schedule A police contract amount and the need for a longer‑term financial plan and strategic planning work. Staff said it is estimating an additional contingency for pending labor negotiations so it would not return to council with a new shortfall in the fall.
Council voted to “stay the course” on the draft and directed staff to continue work toward the June 9 adoption date. The item passed on a voice vote with no roll‑call dissent recorded in the minutes.
