Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget And Finance topic
No spam. Unsubscribe anytime.
San Bernardino council receives mid-year budget update, schedules April budget workshop and May/June hearings
Summary
Interim city finance staff presented a mid-year financial update showing revenue declines and recommended a conservative approach. Council agreed to schedule a budget workshop for April 23 and preliminary budget presentations for May 7 and June 4 and discussed maintaining a 25% reserve policy.
Interim City Manager Mauricio Gallardo and finance staff presented the city's mid-year financial review to the San Bernardino City Council and proposed a calendar for the upcoming budget cycle.
Staff told the council the city expects a roughly $14 million reduction in revenues compared with the adopted budget and an approximately $13.2 million reduction in expenditures from the adopted plan. Presentation slides shown to the council put projected fiscal-year revenues near $236 million and projected expenditures near $222million in the current projection; staff said projected year-end balances will be monitored and updated as conditions change.
Gallardo described a conservative posture for 2025and proposed a policy to formalize how reserves and one-time funds would be used if revenues continue to decline. Staff noted trends including a 6% drop in sales and use taxes, a 20% decline in transient occupancy tax, and a 35% decline in documentary-transfer tax; staff also flagged about 100 vacant positions that have reduced near-term operating costs.
The council asked questions about the proposed reserve policy and staffing. Councilmember Ortiz pressed staff to clarify whether the city would maintain a 25% reserve target and how the city would repay or replenish reserves if they were used. Finance staff said the policy under discussion would allow use of one-time funds for capital or discrete projects but would not be used to cover ongoing operating costs; the plan would include triggers and steps for replenishing reserves.
Councilmembers voted to schedule a special budget workshop April 23, 2025, directed staff to present a preliminary budget on May 7, 2025, and to continue the public process with a subsequent hearing scheduled for June 4, 2025. Council and staff repeatedly emphasized a conservative approach to staffing growth and one-time spending while monitoring economic indicators, with multiple members citing the city's experience coming out of bankruptcy as reason for fiscal caution.
Votes at a glance: During the meeting the council also approved consent items numbered 4on the consent calendar by an oral roll call; council members who recorded "yes" included Sánchez, Ibarra, Tran (Mayor), Shereth, Canada, Flores and Ortiz; the clerk announced the promotions passed unanimously.
Ending: Councilmembers asked staff to return with a formal written reserve policy and the staff recommended workshop materials; the council set the workshop and follow-up hearings to continue the public budget process.
