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Yucaipa council approves midyear revenue and capital adjustments, defers most staffing changes
Summary
City staff told the council the adopted FY2025 budget carried a $7.3 million shortfall; on Feb. 24 the council approved revenue updates and selected operating and capital budget adjustments while deferring proposed personnel changes for later review with the draft FY2026 budget.
City staff presented a midyear budget update Feb. 24 saying the fiscal year 2025 budget was adopted with an estimated $7.3 million deficit and proposing a package of revenue and spending adjustments to steady operations and prepare for a balanced FY2026. The council approved revenue adjustments and a set of operating and capital changes, but delayed proposed staffing increases for later review.
The midyear presentation by Mr. White (finance staff) said the city’s revenue picture had changed since adoption: Measure S would begin generating revenue April 1, producing an estimated $500,000 for the remainder of FY2025, and the solid waste franchise agreement was expected to add about $2.1 million in franchise-fee revenue. Staff recommended increasing FY2025 general-fund revenue by $2.6 million to reflect those items.
Council members then considered proposed budget adjustments. Staff asked for targeted operating increases (including a $350,000 increase for citywide utilities) and several capital items: funds to begin a consultant-led strategic planning process, a modular mobile generator to support operations during multi-day outages (staff presented the mobile option at about $300,000 versus a permanent generator estimated near $600,000), $50,000 in PEG (public education and government) fund budgeting to move eligible broadcast equipment costs out of the general fund, and a $30,000 replenishment for fire equipment.
After discussion, the council voted to: (1) approve the revenue adjustments reflecting Measure S and franchise-fee receipts; (2) receive and file staff-level budget transfers; (3) approve the operating and capital budget adjustments presented by staff with two exceptions — the strategic‑plan consultant contract and the mobile generator were removed from the approved package and will be returned for further review; (4) continue consideration of the personnel (staffing) adjustments and direct staff to present those changes alongside the draft FY2026 budget in May with a comparison to the city’s classification and compensation study; and (5) adopt the updated cost-allocation plan that staff uses to allocate central-service costs across funds.
During debate several council members said they supported pursuing a balanced FY2026 budget before approving recurring personnel costs. Staff responded that the positions proposed are largely authorized roles that have been vacant or unfunded and that filling some vacancies was necessary to operate efficiently; staff committed to include the personnel proposals in the May draft budget for full review.
The votes were recorded as motions and seconds during the Feb. 24 meeting; the items passed as described above. Mr. White told the council staff would return with the comprehensive FY2026 draft budget and the outstanding personnel requests for formal action.
Implementation details: staff will post the revised midyear budget documents and the draft FY2026 budget to the city agenda packet pages; the strategic‑plan consultant and mobile generator will be reexamined and returned to council before any contract or purchase is executed.
