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Diamond Bar council approves $630,000 midyear budget adjustment, acknowledges ongoing structural gap
Summary
Finance Director Jason Jacobson presented a midyear FY25–26 update proposing $630,000 in additional resources and $512,000 in increased expenditures across funds; council approved the amendment (Resolution No. 2026-07) unanimously while staff warned of a roughly $263,000 recurring structural deficit.
Diamond Bar — The City Council unanimously approved a midyear amendment to the fiscal year 2025–26 budget on March 3 after a staff presentation that balanced several one‑time adjustments against ongoing pressures.
Finance Director Jason Jacobson said staff requests an increase in total resources across all funds of $630,000 and a corresponding increase in expenditures of $512,000. For the general fund, the changes represent an estimated $94,000 increase to ending fund balance, but Jacobson cautioned that ongoing adjustments produce a negative recurring impact of roughly $263,000.
Jacobson identified key changes: a $237,000 reduction in sales tax revenue (largely from fuel/service stations and business and industry categories), increases in charges for services tied to building and safety activities, and several small adjustments for recreation, fines, and a cost reimbursement to close out a COVID recovery fund. He also noted a $205,000 increase in building and safety expenditures related to plan‑check activity for the Morning Canyon residential project and said a portion of those costs are offset by corresponding revenue.
Councilmembers asked clarifying questions about the building and safety increases and whether the midyear changes reflected one‑time or ongoing commitments. Jacobson said $510,000 of the expenditure increase is one‑time and that the table in the staff report had an earlier arithmetic error; the correct midyear expenditure request is $512,000.
After brief discussion, Councilmember Chow moved and Councilmember Liu seconded approval of Resolution No. 2026‑07 amending FY25–26 revenue estimates and appropriations. The motion passed on a 5–0 roll call vote.
What happens next: staff will implement the approved adjustments, publish the amended budget details and continue monitoring revenue trends as the city plans for longer‑term structural issues.
