Quarterly
Budget Update
Quarter 3
FY 2025
May 7, 2025
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Overview
Budget Adjustments & Revenue Estimates
City Management is pleased to present this quarterly update summarizing the City’s overall budget activity through Quarter 3 (March 31, 2025) for Fiscal Year (FY) 2025. The City’s fiscal year is July 1
st through June 30th
. For audited
information, or to find greater detail, please refer to the City’s annual financial statement, which is released by December 31st following the end of the fiscal year.
The revenue projections and budget expenditures presented in this update include budget adjustments approved by the City Council, continuing appropriations, and prior year encumbrances, mid-year revenue estimates, and updated revenue estimates presented at the Spring Financial Workshop on April 10, 2025.
General Fund Financial Condition
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 The City’s General Fund is the primary source of discretionary resources that funds many of the services provided to the citizens of the City of Corona. The General Fund is made up of the General Fund, Measure X Fund, Corona Mall Fund, Historic Civic Center Fund, and the Pension Stabilization Trust Fund.
The General Fund inflows (revenue and transfers in) for FY 2025 are currently estimated at $234.8 million. Based on FY 2025 projections, there is an estimated decrease of $1.4 million when compared to the cumulative budget.
They City has received or recorded 71.4% of the estimated General Fund inflows, through the end of Quarter 3 (at the time this information was prepared). Overall, inflows are up by 4.4% when compared to the same quarter of FY 2024.
As of Quarter 3 of FY 2025, the General Fund has expended 51.1% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 3 of FY 2025 to FY 2024, expenditures are up by 29.6%, or $36.9 million.
Emergency Contingency
1 Equal to 3 months of operating
expenditures
Adjusted at the end of each fiscal year
2 3 4
$50,316,648
Been in place for
20-years
Since FY 2022, we no longer add new
money into this reserve at the end of
the fiscal year
Budget
Balancing
$3,922,049
Reserve for pension related
expenditures – debt service payments
for the Pension Obligation Bonds or
the City’s CalPERS unfunded
accrued liability (UAL) contributions.
Pension
Stabilization
Measure X
Reserves
$46,483,830 $34,013,073
Unspent Measure X funds that don’t
roll into next FY will go into the
reserve
Reserve amount discussed with
Council each year through the budget
cycle
General Fund Reserves
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 The General Fund has multiple reserves in fund
balance for various purposes. For the full list,
please reference the City’s financial statements,
Note 15 (for Fiscal Year Ending June 30, 2024,
page 114). This quarterly update highlights four
of those reserves. FY 2024 audited amounts are
noted in the table.
$-
$10
$20
$30
$40
$50
$60
$70 Millions
FY 2023
FY 2024
FY 2025
General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Top Five Revenues
The City’s top five General Fund revenue categories account for approximately 89.9% of the total estimated General Fund inflows for Quarter 3, Fiscal Year 2025. Focusing on these sources can provide a useful understanding of the City’s income position.
The bar graph to the right illustrates the performance of the top five revenues as compared to the same quarter of the prior two fiscal years.
General Fund Revenues
Top 5 Revenues Compared
Quarter 3
At the end of Quarter 3, Sales Tax is the largest General Fund revenue category. This category includes the City’s portion of sales tax, Measure X, Prop. 172 sales tax, and allowance for sales tax agreements.
As of Quarter 3, the total received is $58.8 million. At the time this information was prepared, the revenues are up by 1.3%, or $0.8 million as compared to the prior year.
Sales Tax 01
The second largest General Fund revenue category at the end of Quarter 3 is Property Tax. The total for property tax is $55.6 million, an increase of $1.9 million, or 3.6%, over the prior fiscal year. The increase is primarily in secured property taxes. The majority of property tax revenues are recorded as revenue and booked as a receivable, once the annual report is received from the County of Riverside (generally November/December). Year-end adjustments “true-up” the amounts to the actual cash received.
Property Tax 02
At the end of Quarter 3, a total of $10.2 million has been received in the Current Services category. Items in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. Current Services are down 1.6%, or $0.2 million as compared to Quarter 3 of FY 2024. When comparing to the prior fiscal year, there is a decrease in planning application fees, engineering and inspection related revenues, spay/neuter adoption fees, as well as kids camp. In addition, there are increases in plan checks, fire service agreements, and police false alarm fees.
Current Services 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 The Other Revenue category is the fourth largest category at the end of Quarter 3. Activity in this revenue group includes Rental/Lease Income, Development Agreements, Telecommunication Site Rentals, and Billboard Revenues. At the end of Quarter 3, the total received is $9.6 million. Overall, the Other Revenues category is down by 2.1%, or $0.2 million, as compared to the same quarter in FY 2024. This is due to decreases in Peg Fees, Misc Rental/Lease Income, Damage Recovery, Billboard Revenue, Special District Admin Reimbursements, and Bad Debt Recovery.
Other Revenue 04
As of Quarter 3, FY 2025, Other Taxes ranks the fifth largest. This category includes revenues from Transient Occupancy Tax, Franchise Fees, Business License Tax, and Cannabis Tax. At the end of Quarter 3, the total received is $9.3 million. Overall, the Other Taxes category is up by 5.8%, or $0.5 million, as compared to the same quarter in FY 2024.
Other Taxes 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 General Fund Revenues
Revenue + Transfers In
Quarter 3, FY 2024 to FY 2025
General Fund Revenues
Revenue + Transfers In
FY 2025, Projected Revenues to Quarter 3 Actuals
General Fund Through Q3 Through Q3 $ %
Revenue Category FY 2024 FY 2025 Change Change
Sales Tax $ 33,622,459 $ 34,608,912 986,453 2.9%
Measure X 24,410,671 24,201,837 (208,834) -0.9%
Property Tax 53,640,803 55,563,681 1,922,878 3.6%
Other Revenue 9,768,634 9,559,879 (208,755) -2.1%
Current Services 10,377,388 10,211,352 (166,036) -1.6%
Other Taxes 8,798,554 9,310,247 511,693 5.8%
Payments in Lieu of Services 4,720,825 5,799,196 1,078,370 22.8% Intergovernmental Revenues 2,456,635 3,826,045 1,369,410 55.7% Licenses, Fees & Permits 1,655,536 1,874,085 218,549 13.2% Utility Service Charges 11,494 8,082 (3,412) -29.7%
Special Assessments 394,314 509,797 115,483 29.3%
Fines, Penalties & Forfeitures 946,921 719,284 (227,636) -24.0% Investment Earnings 4,191,732 6,355,113 2,163,380 51.6% GASB31 Gain/ Loss on Investment 4,852,063 (2,896,010) (7,748,073) -159.7% Total Revenues $ 159,848,029 $ 159,651,500 $ (196,529) -0.1% Transfers In 847,663 8,076,222 7,228,559 852.8%
Total Inflow s $ 160,695,692 $ 167,727,721 $ 7,032,030 4.4% Total Inflow s (w / o GASB31) $ 155,843,629 $ 170,623,732 $ 14,780,103 9.5% General Fund Projected Through Q3 %
Revenue Category FY 2025 FY 2025 Received
Sales Tax $ 57,032,920 $ 34,608,912 60.7%
Measure X 41,017,241 24,201,837 59.0%
Property Tax 65,736,729 55,563,681 84.5%
Other Revenue 11,134,068 9,559,879 85.9%
Current Services 12,503,437 10,211,352 81.7%
Other Taxes 15,585,589 9,310,247 59.7%
Payments in Lieu of Services 7,773,943 5,799,196 74.6%
Intergovernmental Revenues 4,695,466 3,826,045 81.5%
Licenses, Fees & Permits 2,361,580 1,874,085 79.4%
Utility Service Charges 10,000 8,082 80.8%
Special Assessments 779,667 509,797 65.4%
Fines, Penalties & Forfeitures 1,170,137 719,284 61.5%
Investment Earnings 6,484,027 6,355,113 98.0%
GASB31 Gain/ Loss on Investment - (2,896,010) N/ A
Total Revenues $ 226,284,803 $ 159,651,500 70.6%
Transfers In 8,511,453 8,076,222 94.9%
Total Inflow s $ 234,796,256 $ 167,727,721 71.4%
Total Inflow s (w / o GASB31) $ 234,796,256 $ 170,623,732 72.7% The FY 2025 budget was adopted with $221.7 million in General Fund expenditures. With continuing appropriations of $28.5 million, and encumbrances (committed purchase orders) of $18.9 million, the beginning outflow budget was $269.2 million. Through Council Actions and other authorized adjustments, total outflows are currently $313.7 million.
Through Quarter 3, the City has spent $161.5 million, or 51.5% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 75% of budget. When comparing the same quarter in FY 2024, outflows are up by 29.6%, or $36.9 million.
Personnel Services, the largest budget category, has an increase of $9.3 million as compared to the same quarter last fiscal year. The changes are primarily based on the new Memorandum of Understanding (MOU) contracts that went into effect December 28, 2024, and are good through December 2027.
Materials and Supplies is up by $17.6 million when compared to Quarter 3 of FY 2024. There are multiple increases and decreases in this category. The primary driver for change is property acquisitions in the current fiscal year.
General Fund Expenditures Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 General Fund Outflows
Expenditures + Transfers Out
Quarter 3, FY 2024 to FY 2025
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2025
General Fund Cumulative Budget Through Q3 %
Expenditures By Department FY 2025 FY 2025 Spent
CIP / O&M Projects $ 90,278,562 $ 30,162,470 33.4%
City Manager's Office 15,430,909 8,419,833 54.6%
Community Services 20,563,437 12,944,095 62.9%
Debt Service 23,357,926 5,870,186 25.1%
Economic Development 1,715,876 567,096 33.0%
Elected Officials 175,230 109,879 62.7%
Finance 5,055,420 3,359,999 66.5%
Fire 37,834,645 26,931,555 71.2%
General Government 34,285,890 18,930,757 55.2%
Human Resources 3,128,638 2,005,736 64.1%
Information Technology 1,123,286 565,584 50.4%
Legal & Risk Management 2,192,381 1,473,247 67.2%
Planning & Development 9,921,850 5,712,980 57.6%
Police 62,664,640 41,084,183 65.6%
Public Works 5,913,087 3,376,595 57.1%
Total Expenditures $ 313,641,776 $ 161,514,193 51.5%
Transfers Out 13,083 13,083 100.0%
Total Outflows $ 313,654,859 $ 161,527,276 51.5%
General Fund Through Q3 Through Q3 %
Expenditures By Category 2024 2025 Change
Contractual 10,085,364 19,841,765 96.7%
Materials and Supplies 30,440,490 48,044,953 57.8%
Personnel Services 80,637,468 89,978,845 11.6%
Utilities 3,452,212 3,648,630 5.7%
Total Expenditures $ 124,615,534 $ 161,514,193 29.6%
Transfers Out - 13,083 N/ A
Total Outflows $ 124,615,534 $ 161,527,276 29.6%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 This budget does not follow the normal trends as these are multi-year projects. Any unspent encumbrances (purchase orders) or remaining balance carries forward to the next fiscal year to continue the project activities.
CIP / O&M Projects (33.4%)
Current savings are related to the contractual services budget. The contractual services are primarily related to the Homeless Program.
City Manager’s Office (54.6%)
Quarter 3 is low due to the timing of debt service payments based on approved payment cycles.
Debt Services (25.1%)
Through March 31, 2025, approximately 75% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.
Current savings is due to personnel services, materials and supplies and contractual services.
Economic Development (33.0%)
Quarter 3 is trending low due to materials and supplies. Insurance premiums are reconciled and recorded at year-end.
General Government (55.2%)
Related to Measure X. Current savings due to contractual services.
Information Technology (50.4%)
Current savings is due to personnel services, materials and supplies and contractual services.
Planning & Development (57.6%)
Current savings is due to materials and supplies and contractual services.
Public Works (57.1%)
Current savings is due to materials and supplies and contractual services.
Community Services (62.9%)
Current savings is due to materials and supplies.
Elected Officials (62.7%)
Current savings is due to personnel services, materials and supplies and contractual services.
Human Resources (64.1%)
Enterprise Funds
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Utilities Inflows
The City operates three utility services through the Utilities Department: electric, water, and sewer. Through the collection of fees and charges, these funds should collect revenues sufficient to finance the costs associated with administration, operations, capital improvement projects (CIP), and debt service.
Enterprise Funds - Utilities
Revenues Compared, Quarter 3
FY 2023 – FY 2024 – FY 2025
$-
$10
$20
$30
$40
$50
$60
$70
Electric Water Sewer
FY 2023
FY 2024
FY 2025
Millions
Emergency Contingency
1 2 3
GOAL $4,901,402
Electric Utility
$553,301
Water
Utility
Sewer
Utility
$3,319,216 $1,325,448
Utilities Funds Reserves
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 The Utilities Funds target reserve amount for each of the operating funds shall be set at ninety (90) days. To build the target reserve amount, the Utilities Department shall annually contribute ten percent (10%) of the difference between actual operating revenues and actual operating expenses for each of the Utilities Department Operating Funds at the beginning of each fiscal year until the target reserve is met. Depending on the fund, it will take time to hit the target reserve amount. If the reserve amount exceeds the target reserve amount, the additional funds shall remain in reserves. The reserve process occurs annually, once the audit and financials are finalized.
GOAL $23,726,374 GOAL $12,817,081
Water Sewer
Utilities Funds Inflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Comparing Quarter 3 FY 2025 revenues to FY 2024, there is an increase of $0.5 million, or 3.6%. There were decreases in categories: Intergovernmental Revenues and Investment Earnings. There were increases in categories: Current Services, Fees & Permits, Fines Penalties and Forfeitures, Other Revenue, and Utility Services Charges. The change in the Investment Earnings category is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash. Adjusting for GASB31 book entries, Quarter 3 revenues are a net increase of $0.9 million, or 6.8% Utilities Revenues - Through Quarter 3 FY 2025, revenues received have increased 0.3%, or $0.3 million, as compared to the same quarter in Fiscal Year 2024.
Through the third quarter of FY 2025, there is an increase of 2.5%, or $1.3 million, as compared to FY 2024. There were decreases in categories: Current Services, Intergovernmental Revenues, Investment Earnings, and Other Revenue. There were increases in categories: Fees & Permits, Fines, Penalties & Forfeitures, Licenses, Fees & Permits, and Utility Services Charges. If GASB31 book entries are excluded, Quarter 3 revenues are a net increase of $2.3 million, or 4.8%.
Through Quarter 3, there is a decrease of 5.6%, when compared to FY 2024. There were decreases in categories: Fees & Permits, Intergovernmental Revenues, Investment Earnings, and Licenses, Fees & Permits. There were increases in categories: Current Services, Fines, Penalties & Forfeitures, Other Revenue, and Utility Services Charges. The change in the Investment Earnings category is due to how the City must report the unrealized gains/losses from investments. These are book entries and not actual cash.
Excluding GASB31 book entries, Quarter 3 revenues are a net increase of $0.1 million, or
0.3%.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Utilities Funds Revenues
Revenue + Transfers In
Quarter 3, FY 2024 to FY 2025
Utilities Funds Revenues
Revenue + Transfers In
FY 2025, Projected Revenues to Quarter 3 Actuals
Enterprise Funds Through Q3 Through Q3 %
Fund Type FY 2024 FY 2025 Change
Electric $ 13,135,314 $ 14,030,394 6.8%
GASB31 Gain/ Loss on Investment 734,680 343,647 -53.2%
Water 48,551,696 50,876,656 4.8%
GASB31 Gain/ Loss on Investment 1,677,739 625,641 -62.7% Sewer 24,139,191 24,205,359 0.3%
GASB31 Gain/ Loss on Investment 2,549,012 996,236 -60.9% Total Revenues $ 90,787,633 $ 91,077,932 0.3%
Transfers In - Electric - - N/ A
Transfers In - Water - - N/ A
Transfers In - Sewer - - N/ A
Total Inflows $ 90,787,633 $ 91,077,932 0.3%
Total Inflows (w/ o GASB31) $ 85,826,202 $ 89,112,409 3.8% Enterprise Funds Projected Through Q3 %
Fund Type FY 2025 FY 2025 Received
Electric $ 19,044,472 $ 14,030,394 73.7%
GASB31 Gain/ Loss on Investment - 343,647 N/ A
Water 79,735,087 50,876,656 63.8%
GASB31 Gain/ Loss on Investment - 625,641 N/ A
Sewer 40,148,276 24,205,359 60.3%
GASB31 Gain/ Loss on Investment - 996,236 N/ A
Total Revenues $ 138,927,835 $ 91,077,932 65.6%
Transfers In - Electric - - N/ A
Transfers In - Water - - N/ A
Transfers In - Sewer - - N/ A
Total Inflows $ 138,927,835 $ 91,077,932 65.6%
Total Inflows (w/ o GASB31) $ 138,927,835 $ 89,112,409 64.1% Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Overall, the Electric utility expenditures through Quarter 3 are down by 12.3% when compared to last fiscal year. There is an increase in contractual and materials and supplies and there are decreases in personnel services and utilities.
At Quarter 3, project expenditures are 2.4% of the current expenditure budget. The operating budget expenditures total 28.1% of the current FY 2025 budget.
When comparing the total of utility outflows, Quarter 3 of FY 2025 to FY 2024, outflows are higher by 9.2%, or $6.9 million.
Overall, the Water utility expenditures are up by 9.9% or $4.4 million when compared to Quarter 3 in FY 2024. There are increases in categories: contractual, materials and supplies, personnel services, and utilities.
Through Quarter 3, project expenditures are 7.8% of the current expenditure budget.
The operating budget transactions total 43.1% of the current FY 2025 budget.
The Sewer utility expenditures are up by 11.2%, or $3.0 million, when compared to Quarter 3 of FY 2024. There is an increase in contractual but decreases across all other categories: materials and supplies, personnel services, and utilities.
At the end of Quarter 3, project expenditures total 9.6% of the cumulative budget. The operating budget expenditures total 37.9% of the current FY 2025 budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2025 | May 7, 2025 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 3, FY 2024 to FY 2025
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2025
Enterprise Funds Through Q3 Through Q3 %
Expenditures By Category FY 2024 FY 2025 Change
Electric
Contractual $ 124,151 $ 540,787 335.6%
Depreciation - - N/ A
Materials and Supplies 325,898 379,005 16.3%
Personnel Services 421,209 397,798 -5.6%
Utilities 3,019,465 2,092,820 -30.7%
Electric Total 3,890,723 3,410,411 -12.3%
Water
Contractual $ 8,322,617 $ 8,515,164 2.3%
Depreciation 53,826 - -100.0%
Materials and Supplies 25,625,393 29,291,218 14.3%
Personnel Services 6,170,211 6,332,136 2.6%
Utilities 4,635,523 5,108,174 10.2%
Water Total 44,807,569 49,246,692 9.9%
Sewer
Contractual $ 5,434,444 $ 9,067,580 66.9%
Depreciation - - N/ A
Materials and Supplies 14,323,296 14,020,012 -2.1%
Personnel Services 5,056,748 4,872,414 -3.6%
Utilities 1,916,626 1,757,623 -8.3%
Sewer Total 26,731,114 29,717,629 11.2%
Transfers Out - Electric - - N/ A
Transfers Out - Water - - N/ A
Transfers Out - Sewer - - N/ A
Grand Total $ 75,429,407 $ 82,374,732 9.2%
Enterprise Funds Cumulative Budget Through Q3 %
Expenditures By Department FY 2025 FY 2025 Spent
Electric
CIP / O&M Projects $ 2,267,695 $ 55,433 2.4%
Debt Service 83,692 28,135 33.6%
Planning & Development 192 192 100.0%
Public Works 108,476 18,313 16.9%
Utilities Department 21,017,636 5,908,233 28.1%
Electric Total 23,477,690 6,010,307 25.6%
Water
CIP / O&M Projects $ 76,255,957 $ 5,982,169 7.8%
Debt Service 375,320 127,198 33.9%
Planning & Development 54,853 23,528 42.9%
Public Works 771,654 274,997 35.6%
Utilities Department 61,844,382 26,756,592 43.3%
Water Total 139,302,166 33,164,484 23.8%
Sewer
CIP / O&M Projects $ 58,477,029 $ 5,607,603 9.6%
City Manager's Office - (18) N/ A
Debt Service 209,914 70,568 33.6%
Planning & Development 34,916 17,724 50.8%
Public Works 475,428 170,007 35.8%
Utilities Department 33,783,022 12,825,246 38.0%
Sewer Total 92,980,309 18,691,129 20.1%
Transfers Out - Electric - - N/ A
Transfers Out - Water - - N/ A
Transfers Out - Sewer - - N/ A
Grand Total $ 255,760,165 $ 57,865,920 22.6%
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