Yucaipa council adopts FY 2026–27 budget, postpones YPAC closure with short‑term funding and operator talks

The Yucaipa City Council on July 27 adopted the fiscal year 2026–27 operating budget and capital improvement program and directed staff to seek a private operator to run the Yucaipa Performing Arts Center (YPAC) while temporarily funding operations from contingency and street funds.

City manager staff presented a tight budget that includes service expansions in public safety — a paramedic squad and an added sheriff deputy — and projected revenues of about $50 million. Finance staff told the council the budget left a narrow surplus and that closing the YPAC could yield a gross saving of about $1.4 million, partially offset by roughly $650,000 in anticipated YPAC revenues.

After extended public testimony from dozens of residents and arts and business leaders urging the council not to close the theater, the council approved the budget and then agreed to an amendment to set aside $726,745 from the streets/contingency allocation to maintain YPAC operations temporarily. Deputy Mayor (motion maker) said staff should negotiate terms that “make the city whole” at year‑end. The amendment directs staff to return with a contract with Props AV (the operator that spoke at the meeting) or another entity that would reimburse the city’s costs.

Props AV owner Brady Westbrook told the council he believed the venue could operate without city subsidy, saying, “I will turn YIPAC into something that generates revenue for the city.” Several YPAC partners and local businesses urged the city to allow the operator partnership more time rather than immediately close the facility. City staff emphasized the $1.4 million figure as the approximate annual operating cost under current staffing assumptions but acknowledged that contracted operations and a different programming model could materially change that number.

The council’s amended direction preserves the facility while staff negotiates an operator agreement and seeks financial assurances. The motion requires staff to return to the council with a proposed contract that reimburses the city for costs if the operator does not meet agreed milestones or revenues. The council also instructed staff to honor existing, booked events during any transition period.

Next steps: staff will draft an operator agreement and return to council for approval. If negotiations fail, the council may revisit closure or other options at a future meeting.