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San Bernardino presents balanced FY 2025-26 budget projection and $209 million CIP plan; council agrees to extend meeting
Summary
City staff presented a proposed balanced fiscal year 2025-26 budget, including a six-month targeted non-safety hiring deferral and a proposed $208.9 million capital improvement program (CIP). Council unanimously voted to continue the meeting past 10 p.m. to finish business and scheduled a follow-up budget workshop for May 22 at 5:30 p.m.
San Bernardino city staff presented a proposed balanced fiscal year 2025-26 budget and an update to the capital improvement program during a council workshop, emphasizing conservative revenue projections, targeted operational cuts and a multi‑year CIP. The council voted unanimously to continue the meeting past 10 p.m. so staff could finish the presentation and to schedule a second budget workshop for May 22 at 5:30 p.m.
City Manager's Office staff opened the presentation and said staff would provide at least one or two additional budget workshops before the council adopts a final budget prior to July 1. Jeannie Fortune, interim director of finance and management services, told the council staff projects a modest revenue increase and has aligned expenditures to be conservative while maintaining essential services. “We are requesting a 6 month deferral on those vacancies to achieve that 8,000,000 in savings,” Fortune said, describing a proposed targeted non‑safety hiring pause that staff estimates will yield about $8.1 million in savings if approved.
The presentation summarized revenue and expenditure assumptions, with staff asking departments to trim operational budgets by roughly 5 percent and identifying approximately $10.7 million in operational adjustments. Finance staff said they are projecting only a 2.5 percent revenue increase for FY 2025-26 and committed to quarterly reports to the council to monitor changes. The city manager’s team emphasized the use of conservative local trends and flagged continued state and national uncertainty as reasons for prudence.
Public Works and engineering staff led the CIP portion of the workshop. Azam, the city engineer, outlined a proposed CIP package that includes 42 new projects across streets, traffic control, parks and recreation, storm drain and general building categories. Staff presented an existing CIP funding portfolio (roughly $162.9 million) and showed a combined CIP budget of about $208.9 million when proposed projects are included. Staff asked to use approximately $23.7 million of designated CIP reserves for 2025-26 work.
Public Works highlighted several projects and milestones: a planned California Theater renovation starting June 2 with a planned re-opening on Sept. 30; an animal shelter modernization with bids to be opened the following week; completion of Spiker Park East skate improvements; Nicholson Park improvements expected in summer 2025; the Mount Vernon bridge (projected substantial completion and community celebration around Aug. 23); and the Diamond Diverging Diamond Interchange (University Parkway/State Route 215) staging and fall 2025 work. Staff also described a proposed pavement management program with an initial $20 million proposal (approximately $10 million from Measure S and $10 million from other sources such as RMRA and gas tax) and a street rehabilitation program with an $8.9 million contract that recently completed 20 segments.
Council members thanked staff for the presentation and for prioritizing capital investments. Several council members asked for a detailed follow-up packet that includes prior‑year actuals, account numbers and line‑item details so they can review account‑level adjustments ahead of adoption. Staff and council agreed to reconvene for a second workshop on May 22 at 5:30 p.m. and to return with the detailed line‑item information requested. The council also approved a procedural motion to continue the meeting past 10 p.m. (unanimous vote) so staff could complete the CIP presentation and answer questions.
The workshop materials and staff comments stressed that the budget proposal is a first draft: staff said they will monitor revenues and return to council if conditions improve to lift hiring deferrals or, if conditions worsen, to recommend further measures. Finance staff reiterated that operating reserves will not be drawn for the operating budget and that the CIP reserves requested would be used only for capital projects.
