Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget Revenue Forecasts topic
No spam. Unsubscribe anytime.
City projects modest revenue growth for FY26; warns of short-term use of fund balance
Summary
Deputy Finance Director Julie Kennicott presented preliminary revenue estimates showing a small net change in general-fund inflows for FY26, growth in enterprise funds and a budget forecast that will temporarily draw on fund balance to cover adopted commitments before pensions are callable in 2034.
Deputy Finance Director Julie Kennicott presented preliminary FY26 revenue estimates and a general-fund forecast at the Corona City Council’s spring financial workshop, showing modest changes in total inflows and indicating a short-term reliance on fund balance for committed items.
Kennicott said total general fund inflows (revenues plus transfers) were preliminarily estimated at $233.2 million for FY26, a decrease of $400,000 (0.2%) from the current fiscal-year estimate. She noted that comparisons remain distorted while FY22 figures include the pension-obligation bonds and FY25 includes large ARPA transfers.
Key revenue points presented: - Sales tax: estimated at $100.2 million for FY26 (approximately 43% of general-fund revenues); staff expects a slight decline in the current year and modest recovery in FY26. - Property tax: estimated at $68.5 million for FY26 and representing about 29.4% of general-fund inflows. Vehicle license fee growth was not expected to decline materially because of assessed valuation mechanics. - Special revenue and enterprise funds: RMRA (gas tax) and Measure A projections were modestly up or flat; utility and sewer funds reflect programmatic and CIP-driven changes.
Kennicott and Finance Director Kim Sitton also presented a multi-year forecast prepared with a consultant. The forecast showed a recurring negative gap in FY27 if all current commitments are continued, and projected pension bonds callable in 2034. Sitton said the administration aims to accelerate pension paydown where feasible.
On total revenue moving across all funds, Kennicott said FY26 estimates showed a roughly $62.6 million (13.8%) increase over current adopted totals; much of that increase is project-driven, she said, with roughly $46 million of the change attributable to a McKinley grade-separation capital project.
Council responses and process notes: council members asked for clearer visuals and for staff to include fund-balance information on slides where expenditures exceed revenues. Kennicott agreed to add fund-balance context in subsequent presentations. The administration plans a condensed May presentation and a proposed FY26 budget return in June for adoption.
What to watch: sales-tax trends (the city currently relies on sales tax for a large share of general-fund revenue); near-term fund-balance use to cover approved projects; and the FY27 recurring gap identified in the consultant forecast.
