Rialto Accepts Midyear Budget, Suspends Residential Utility Tax for 12 Months

RIALTO, Calif. — The Rialto City Council accepted a midyear update to the fiscal year 2025–26 general fund and added a temporary tax relief measure for residents, voting to suspend the city’s utility user tax on residential customers for 12 months beginning Jan. 1, 2026.

Finance staff presented revenue and expenditure estimates, noting an estimated undesignated fund balance and an audit nearing completion. The presentation outlined revenue timing effects on year‑to‑date numbers and listed department requests including public safety positions and non‑general fund appropriations. The audit and trial balance were described as near completion.

Mayor Pro Tem Ed Scott proposed the suspension, citing financial pressure on residents: "I'm going to propose tonight ... we direct your staff to suspend the utility tax for all residential customers in this city for a period of 12 months." Council discussed the fiscal implications and whether hotel or disaster relief costs would affect the allocation of funds. City Attorney Eric Bell advised the council on drafting the resolution language and proposed adding Section 2 to Resolution 8440 to implement the suspension from Jan. 1 through Dec. 31, 2026.

Councilmember Andy Caracillis made a motion to receive the midyear budget presentation and to adopt the resolution with language to suspend the residential utility user tax; the motion was seconded and carried unanimously by voice vote. Staff will prepare the formal resolution language and return the adopted midyear package for recordation and future reporting.

Councilmembers also asked for follow‑up analysis on revenue streams such as utility user tax stratification between residential and commercial customers, and for staff to explore opportunities to pursue new state grant programs (including those addressing senior safe‑routes projects).