San Bernardino council adopts FY2025–26 budget; approves one‑time fund balance uses for streets, police vehicles, sidewalks and cleanup

The San Bernardino City Council adopted the city’s FY2025–26 operating budget and the FY2026–2030 capital improvement program on June 4, following a public hearing and extended council discussion. The adopted documents present a $348.7 million total budget across all funds and a balanced general fund presentation that draws on one‑time fund balance to invest in infrastructure and operations.

Major features in the recommended budget presented by staff included a proposed use of roughly $31.2 million in general fund balance (about $23.8 million of that to advance capital infrastructure projects), a targeted 5% reduction in department operating costs, a six‑month hiring deferral to realize roughly $8.1 million in temporary savings, and a proposal to create a standalone Operations & Maintenance department (no net increase in staffing). Staff described a conservative revenue forecast that counts on Measure S, sales tax and utility users tax as primary revenue sources.

Council action and amendments: After extended deliberation and public comment, the council incorporated several one‑time amendments funded from unassigned fund balance or other designated sources. Key amendments the council approved during the hearing include: - Homeless encampment cleanup: $124,800 added to continue dedicated encampment cleanup crews and related operations — approved unanimously. - Dead tree stump removal: $500,000 one‑time allocation to remove and grind an estimated 2,500–3,000 dead tree stumps across the city — approved unanimously. - Park restroom program: Council directed staff to return within 30 days with options for reopening and operating park restrooms (development impact fee and operating options to be analyzed); council asked for implementation options and costs. - Police vehicle acquisition/outfitting: $2,000,000 one‑time allocation from unassigned fund balance for vehicle acquisition and upfitting to address a shortfall of patrol and support vehicles; council approved the allocation 4–2 (Council members Flores and Ortiz voted no). Staff will return within 30 days with a vehicle replacement plan and options on purchase vs. lease. - Sidewalk repairs: $1,000,000 one‑time allocation from unassigned fund balance to address trip‑and‑fall liability and targeted sidewalk repairs — approved 6–1 (Council member Ortiz opposed).

Staff presentation and budget outlook: Interim finance leadership summarized revenues of $228.2 million for the general fund and noted a recommended drawdown to fund major CIP investments while preserving city‑required reserve levels (the city’s local policy targets a 25% reserve; staff said the proposed numbers keep reserves above recommended minimums). The capital program includes investments in streets, parks, buildings and traffic control; staff emphasized that many CIP projects take multiple years to design and deliver.

Why it matters: Council members said the one‑time fund balance uses are intended to make visible improvements (streets, sidewalks, tree stumps, restrooms) that affect quality of life and to reduce future liability exposure; critics warned about drawing down reserves and urged staff to pursue other revenue sources and greater long‑term fiscal sustainability.

Next steps: Staff will return with the detailed vehicle replacement plan and options for park restroom operations within 30 days; staff also will bring a revised SB1/streets action plan and any cost updates at the October update that staff said can be used to add additional street segments if council chooses.