Upland council pauses proposed FY2025–26 budget cuts, directs staff to return with options

At a special meeting, the Upland City Council took no immediate action on proposed fiscal year 2025–26 budget adjustments and directed Assistant City Manager Stephen Parker and staff to return May 19 with updated revenue estimates and more detailed spending options.

Staff told the council departments identified possible expenditure decreases and revenue increases that could free $676,306 for reallocation. But the city also received an updated estimate that sales tax receipts for 2025–26 could be about $1,700,000 lower than budgeted, leaving a net gap of roughly $1,011,194 after the proposed reductions.

"The departments were instructed to reduce their budgets or provide any revenue increases ... and the city can save $676,306," Stacy Sullivan said during the presentation. Sullivan and Parker told council members staff will review sales tax projections with HDL, evaluate property tax and interest income, and consider reserve-policy adjustments before returning with further recommendations.

Council members pressed department heads for specifics on line items proposed for reduction. One high-profile item was a recommended elimination of allied transport services provided by a third-party contractor (Allied Universal), a measure staff said would remove a service that lets officers avoid remaining at the jail during suspect processing. The police chief warned that eliminating that contract would be "equivalent to 2 and a half police officers" and asked that such a cut be a last resort.

Council Member Mauss responded, "I don't like that," when the transport cut was described; others echoed concerns, saying public-safety impacts should be avoided if possible. Parker said the departmental proposals came from the departments themselves but that he did not want that particular contract to be eliminated and would seek other reductions.

Council members also asked about legal and "other services" line items shown in multiple departments. Staff explained the city uses Best, Best & Krieger for code enforcement and misdemeanor prosecution work charged to departmental budgets, and cited itemized examples such as special DNA testing in the police budget that the department has budgeted to access an outside lab if needed.

On revenues and project-specific funding, staff described an anticipated grant or funding agreement for the parking-structure construction drawings: a $500,000 contribution from the county transportation authority plus an additional $202,400 in project expenses the city expects to budget. Building-and-safety revenue for next fiscal year is projected at about $2.5 million; one line shown as a revenue increase was $204,950.

Council members asked staff to analyze other options, including postponing nonessential capital projects for a year, reviewing outstanding sewer and water fees for potential revenue, and checking which departments historically return unspent funds (the police department reported returning roughly $500,000 last year). Damian Arulo, public works director and assistant city manager, said he would check details requested by council members (for example, how the household-hazardous-waste program is funded).

The council agreed to take no action at the meeting and to let staff refine the list of cuts and revenue estimates. Parker said staff will return with a clearer package on May 19 and recommended that council members email specific line-item questions so staff can prioritize responses. No formal votes on budget reductions or eliminations were taken at the meeting.

The council adjourned to its next scheduled meeting at 5 p.m.