Riverside reports small fiscal gains, approves $44.9 million in carryovers

Riverside officials on Jan. 13 told the City Council the unaudited fiscal year 2024–25 results show modest gains but lingering uncertainty, and the council voted unanimously to approve nearly $45 million in carryovers to the next budget cycle.

Deputy Finance Director Sergio Aguilara said the city ended the year with general fund revenues about 1.4% above revised projections and expenditures about 1.6% below, producing a $9,560,000 unassigned General Fund reserve available for upcoming budget planning. “Overall, the City did conclude the fiscal year in a very strong fiscal position,” Aguilara said in his presentation, while also flagging personnel and pension cost pressures that could affect future budgets.

The report lays out fund‑by‑fund results: robust property tax and interest income, stronger‑than‑expected sales tax tied in part to vehicle sales, and shortfalls in development fee revenue and certain permit categories. Aguilara recommended $44,880,000 in carryovers — $12.5 million restricted, $32.4 million discretionary — to cover projects and timing differences that could not be completed in FY24‑25.

Council members pressed staff on risks. Ward 6 Councilmember (name on record) asked whether the city’s trust (pension prefunding) was on track; Aguilara replied the trust balance was near $80 million with plans to add $9 million this year toward a roughly $100 million goal. Councilmember Perry asked which categories pose the most downside risk; Aguilara pointed to personnel costs (about 70% of the general fund), MOU‑driven pay increases, and the uncertainty of revenue growth matching cost inflation.

Public comment included accusations that vendor payment lists were opaque; staff said records are available through Riverside’s public records portal and reiterated the city’s multiple audit functions. “We do multiple audits — financial, single audit, and internal audit functions,” one finance official told council.

The council approved the staff recommendation with a unanimous vote. The items approved include receiving the unaudited fourth quarter report, approving the list of recommended carryovers, and authorizing several limited FY25‑26 budget adjustments, including adding one FTE Deputy Fire Marshall funded by grant dollars and modest infrastructure reserve reassignments.

What happens next: staff will present a plan for using the unassigned $9.56 million as part of the 2026–2028 biannual budget process. The financial report is unaudited and city officials said final audited figures will be available after the independent audit concludes.

Speakers appearing in the meeting who were cited or quoted: Sergio Aguilara, Deputy Finance Director; City Manager and finance staff in Q&A sessions.

The council's action: motion approved unanimously.