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Chino council approves midyear budget adjustments after staff flags $16 million revenue shortfall from delayed developments
Summary
Council adopted a midyear budget adjustment that reduces revenue estimates by about $16 million largely because several large multiunit developments were delayed, approves $811,000 in additional general-fund appropriations and authorizes a $7 million transfer from internal service funds to cover one-time needs.
The Chino City Council voted April 1 to adopt midyear budget adjustments for fiscal year 2024–25 after staff reported material changes to revenue projections and one-time expenditures.
Finance Director Kim Sowell and City Manager Linda Reich told the council that updated forecasts reduced overall revenue estimates by roughly $16 million. Sowell said the bulk of the reduction reflects delays in large multiunit developments — including two multi‑building projects along Chino Hills Parkway and an Orbis development — which lowered expected user-fee and development-impact revenues.
Council voted to approve $811,000 in additional general-fund appropriations, including $620,000 for increased obligations to the Chino Valley Fire District, $150,000 for a contractual adjustment with the Inland Valley Humane Society, $34,000 for election costs and $7,000 for special-project staffing. The council also approved a $250,000 increase to sewer fund appropriations for sewage-treatment services.
To cover one-time shortfalls, staff recommended and the council approved a transfer of $7 million into the general fund from internal-service funds: $2.5 million from the employee services fund and $4.5 million from the equipment management fund. Sowell said the transfers would reduce internal-service fund balances but leave a projected combined balance of about $13 million after the transfers.
Sowell projected that, after the approved adjustments, the fiscal year will end with a surplus of approximately $675,000. Council members and staff warned that further one-time appropriations could arise before June, and several members emphasized the need for earlier and clearer revenue updates in future cycles.
A motion to adopt the resolution authorizing the midyear adjustments was made by Mayor Pro Tem Burton, seconded by Councilman Lucio, and passed 4–0 with one member absent.
Why it matters: the revisions underscore the city’s exposure to volatile development-tied revenues and the need to manage operating budgets and capital projects if large projects do not materialize on the anticipated schedule. Council discussed possible delays to capital projects and the need to reexamine long-term reliance on developer fees.
Sources: presentation by Finance Director Kim Sowell and City Manager Linda Reich; council discussion and vote at the April 1 meeting.
