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San Bernardino posts $29 million unaudited surplus for FY 2023–24; fund balance rises to about $200 million
Summary
Finance staff reported unaudited year‑end results showing general‑fund reserves increased by approximately $29 million, leaving an estimated fund balance of about $200 million; staff cautioned the amount is one‑time and recommended one‑time spending.
San Bernardino’s unaudited fiscal year 2023–24 results show the city added roughly $29 million to its general‑fund balance, bringing the unaudited fund balance to about $200 million, finance staff told council Wednesday.
Janie (Finance Director) and the city manager presented highlights: utility‑user‑tax receipts exceeded budget by about $7.7 million; licenses and permits exceeded projections by roughly $3.2 million; and investment income contributed about $3.4 million. Total expenditures for the year came in about 10 percent below budget, and many of the savings were attributed to salary savings and projects that remain in progress and will carry forward into the next fiscal year.
The city’s 25 percent reserve benchmark was significantly exceeded: staff reported the current fund balance is the equivalent of roughly 100 percent of operating expenditures — a marked improvement compared with recent years. Finance staff cautioned the $29 million is a one‑time surplus and recommended the council use any such funds for one‑time projects (capital improvements, one‑time programs) rather than ongoing personnel costs. Staff also reported that the city typically operates with roughly 100 full‑time vacancies at any one time; those vacancies materially reduce salary expenses and contributed to the year‑end surplus.
Councilmembers asked about classification and compensation work to reduce the city’s chronic vacancy rate. Staff told the council a compensation and classification study is under way; the city has also awarded a consultant contract to evaluate City Hall and long‑term facilities options, and staff will return to council with a midyear budget report and a workshop on budget format and structure.
Ending: Council received the unaudited financial report; staff will bring audited statements once the external audit finishes (staff said audits are expected by February) and will return with a midyear budget update and further details on recommended one‑time uses of surplus funds.
