Riverside council adopts cautious biannual budget amendment, taps Measure Z for one‑time public safety support

The Riverside City Council unanimously adopted an amended biannual budget for fiscal year 2025–26 after a lengthy staff presentation and council question‑and‑answer session. Deputy Finance Director Sergio Aguilar told the council the city remains in a strong fiscal position with roughly $210 million in general‑fund reserves but faces significant near‑term uncertainty from federal policy and weaker revenue forecasts.

Aguilar outlined proposed adjustments that would raise the citywide proposed budget to about $1.53 billion across all funds, including $48.6 million in supplemental appropriations and net revenue adjustments of roughly $2.3 million. He said staff proposed $16.26 million in cost‑savings adjustments across the budget and recommended a one‑time transfer of about $7.37 million from Measure Z to the general fund to help cover increased public safety costs (including MOU changes and overtime).

On reserves and key numbers, Aguilar summarized: “We have approximately $72 million in policy reserves in the general fund… and approximately $138 million in other reserves, which nets to about $210 million in various general‑fund reserve balances.” He presented a conservative approach to revenue projection—proposing a 1.2% update to general fund revenues (excluding Measure Z) and a 3.3% reduction in Measure Z revenues versus the adopted budget—with staff monitoring actual receipts in the first two quarters of the fiscal year before recommending further midyear adjustments.

The amendment included reductions and reprioritizations across discretionary programs (forestry/landscaping equipment, deferred maintenance, fleet replacement and parks capital projects) while preserving funding for critical public safety and core services. Staff said most affected programs still maintain funding levels above pre‑pandemic allocations and that the proposed reductions are timed to the city’s cautious spending pace.

After public comments urging protection for tree and park funding and council questions about monitoring triggers and hiring prioritization, Councilmember Cervantes moved to approve the proposed amendment; the motion carried unanimously.

Next steps: staff will memorialize timing for any ranking or permit extensions discussed earlier in the meeting, monitor key revenue data in the first quarter of the fiscal year, and report back if revised assumptions require additional midyear adjustments.