San Bernardino council reviews balanced FY 2025–26 budget proposal, approves overtime extension past 10 p.m.

City staff presented a draft fiscal year 2025–26 budget to the San Bernardino City Council on May 6, outlining conservative revenue projections, an $8.1 million six‑month targeted non‑safety hiring deferral and use of designated capital improvement program reserves to advance projects in the coming year.

The presentation, led by Jeannie Fortune, interim director of finance and management services, and Zwieva Ruiz, budget division manager, framed the proposal as a balanced budget that assumes a modest 2.5% revenue increase for 2025–26 and continued caution amid economic uncertainty. Fortune told the council staff had aligned expenditures to the conservative revenue outlook and proposed monitoring quarterly results and returning to council should conditions change.

The budget team emphasized revenue drivers and savings: staff showed a projected end‑of‑year operating projection near $215 million, with a proposed operating budget of roughly $228 million for 2025–26. The presentation identified small decreases in some categories (investment income, intergovernmental revenues, charges for services) and increases in others (utility user tax, Measure S receipts). Jeannie Fortune said the six‑month hiring deferral of non‑safety positions is estimated to save about $8,100,000 if council agrees to pause filling vacancies while departments assess critical needs.

The staff presentation also proposed using designated CIP reserves (identified in the slides as approximately $23,700,000) to fund proposed capital investments while retaining a multi‑year reserve target well above the municipal code minimum. Fortune said using those reserves would leave the city’s reserves at roughly 75% of operating revenues after the proposed CIP allocations.

Public works and engineering presented a slate of capital projects tied to the proposed CIP budget. Azam (City Engineer) described 42 proposed projects for 2025–26, highlighting priorities and delivery timelines: street rehabilitation across dozens of locations, storm drain work, park and recreation improvements and several high‑profile projects including California Theatre renovations (work to begin in June with a fall reopening), an animal shelter modular building procurement (bids to be opened next week), Nicholson Park and Spiker Park improvements, continued work on the Monte Vista/Mount Vernon bridge replacement with an August completion target, and a multi‑stage interchange project at I‑215/University Parkway described as a Diamond Diverging Interchange (DDI) effort in coordination with Caltrans. Azam warned that environmental clearances, utility conflicts and right‑of‑way acquisitions commonly delay designs and construction and urged patience on multi‑year projects.

Staff summarized proposed CIP funding needs for 2025–26 as roughly $29.6 million of new project funding, with $13.3 million expected from Measure S and about $16.15 million from special funds (development impact fees, SB‑1/RMRA and similar sources). Existing CIP obligations were presented separately; staff said roughly $16.4 million would be needed to complete ongoing projects and that the total CIP program funding under management exceeds $160 million.

Council members thanked staff for the conservative budgeting approach and for advancing infrastructure investments. The council scheduled a follow‑up budget workshop on May 22 at 5:30 p.m. for a deeper line‑item review and asked staff to provide prior‑year actuals, account descriptions and percentage adjustments for comparison.

During the workshop the council voted unanimously to continue the meeting past 10 p.m. under a motion citing resolution 2024‑029 so staff could complete the presentation and follow‑up scheduling. The city clerk recorded “yes” votes from Councilmembers Sanchez, Barra, Mayor Pro Tem, Charette, Canas, Flores and Ortiz.

Staff said they will monitor revenues and report quarterly; if revenues strengthen the council could lift the hiring deferral, or if conditions worsen staff would seek extensions or other measures.

The budget presentation and CIP slides will return to council for adoption before the July 1 start of the new fiscal year.