Quarterly
Budget Update
Quarter 1
FY 2026
November 5, 2025
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 Overview
Budget Adjustments &
Revenue Estimates
City Management is pleased to present this
quarterly update summarizing the City’s overall
budget activity through Quarter 1 (September 30,
2025) for Fiscal Year (FY) 2026. The City’s fiscal
year is July 1st 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.
General Fund Financial Condition
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 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 Properties Fund, Historic Civic Center Fund, and the Pension Stabilization Trust Fund.
The General Fund inflows (revenue and transfers in) for FY 2026 are currently estimated at $242.1 million. This represents an increase of $0.4 million over the adopted inflows of $241.7 million.
They City has received or recorded 5.5% of the estimated General Fund inflows, through the end of Quarter 1 (at the time this information was prepared). Overall, inflows are down by 38.9% when compared to the same quarter of FY 2025. The primary reason for the decrease is due to how the City must report the unrealized gains/losses from investments. It is value on paper and not actual cash.
As of Quarter 1 of FY 2026, the General Fund has expended 15.7% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 1 of FY 2026 to FY 2025, expenditures are up by 11.0%, or $4.6 million.
Emergency
Contingency
1 Equal to 3 months of
operating expenditures
Adjusted at the end of each
fiscal year
2 3
$53,883,396
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
$54,870,007
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
Measure X
Reserves
$23,998,306
General Fund Reserves
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 three of
those reserves. Noted are the
unaudited FY 2025 amounts,
which total $132.8 million. The
final amounts may be
adjusted once the FY 2025
financial statements are
issued.
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 General Fund Inflows
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 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 FY 2026. 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 1
$-
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10 MillionsFY 2024
FY 2025
FY 2026
At the end of Quarter 1, 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 1, the total received is $8.9 million. At the time this information was prepared, the revenues are up by 3.2%, or $0.3 million as compared to the prior year.
Sales Tax 01
The Current Services category is the second largest category at the end of Quarter 1. Activity in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. At the end of Quarter 1, the total received is $4.6 million. Overall, the Current Services category is up by 83.8%, or $2.1 million, as compared to the same quarter in FY 2024. When comparing to the prior fiscal year, the increase is primarily due to Fire Service Agreements (timing of payment) and Engineering and Inspections Services.
Current Services 02
The third largest General Fund revenue category at the end of Quarter 1 is Other Revenues. Activity in this revenue group includes Rental/Lease Income, Telecommunication Site Rentals, Sales of Surplus Property, and Billboard Revenues. At the end of Quarter 1, the total received is $2.8 million. Overall, the Other Revenues category is up by 2.8%, or $76,587 as compared to the same quarter in FY 2025.
Other Revenues 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 At the end of Quarter 1, a total of $2.0 million has been received in the Other Taxes category. Items in this revenue group include Franchise Fees, Transient Occupancy Taxes (TOT), Business License Taxes, and Cannabis Taxes. Other Taxes are down 13.5%, or $307,766 as compared to Quarter 1 of FY 2025. When comparing to the prior fiscal year, there is a decrease in Transient Occupancy Taxes due to when payments were received in FY 2025.
Other Taxes 04
At the end of Quarter 1, Payments in Lieu of Services is the fifth largest General Fund revenue category. The total for payments in lieu of services is $2.0 million, an increase of $61,974, or 3.3%, over the prior fiscal year. Departments like Finance and HR provide support services to other departments throughout the City. Through the City’s Cost Allocation Plan, the General Fund receives payments from other funds based on how much of those services are utilized. The plan is reviewed and updated annually.
Payments in Lieu of Services 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 General Fund Inflows
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 General Fund Inflows
Revenue + Transfers In
Quarter 1, FY 2025 to FY 2026
General Fund Inflows
Revenue + Transfers In
FY 2026, Budget to Quarter 1 Actuals
The FY 2026 budget was adopted with $231.3 million in General Fund expenditures. With continuing appropriations of $39.9 million, encumbrances (committed purchase orders) of $22.3 million, and Transfers Out of $0.40 million, the beginning outflow budget was $293.9 million. Through Council Actions and other authorized adjustments, total outflows are currently $294.2 million.
Through Quarter 1, the City has spent $46.3 million, or 15.7% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 25% of budget. When comparing the same quarter in FY 2025, outflows are up by 11.0%, or $4.6 million. The largest expenditure category for the General Fund is Personnel Services.
Personnel Services has an increase of $4.6 million as compared to the same quarter last fiscal year. The changes are primarily based on current Memorandum of Understanding (MOU) contracts that are good through December 2027, as well as new positions approved through the annual budget process.
Materials and Supplies is down by $0.6 million when compared to Quarter 1 of FY 2025. There are multiple increases and decreases in this category. The primary driver for change are property acquisitions in the prior fiscal year.
General Fund Expenditures Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 General Fund Outflows
Expenditures + Transfers Out
Quarter 1, FY 2025 to FY 2026
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 1, FY 2026
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 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 (6.4%)
Current savings are primarily due to contractual services in the Homeless Solutions Program and FY 2025 invoice
accruals.
City Manager’s Office (1.0%)
Quarter 1 is trending low due to the timing of debt
service payments based on approved payment cycles.
Debt Service (4.4%)
Through September 30, 2025, approximately 25% of the fiscal year is complete. Departments with a variance of 10% or more are explained in the following section.
Information Technology (3.8%)
Current savings are primarily due to contractual
services, specifically, Fire Dispatch Services with the City of Ontario.
Enterprise Funds
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 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 1
FY 2024 – FY 2025 – FY 2026
$-
$10
$20
Electric Water Sewer
FY 2024
FY 2025
FY 2026
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 1, FY 2026 | November 5, 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 1, FY 2026 | November 5, 2025 Comparing Quarter 1 FY 2026 revenues to FY 2025,
there is a decrease of $1.2 million, or 27.3%. There were increases in categories: Current Services and Fees &
Permits. There were decreases in categories: Fines,
Penalties & Forfeitures, Intergovernmental Revenues,
Investment Earnings, Other Revenues, 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.
Utilities Revenues - Through Quarter 1 FY 2026, revenues received have increased 5.7%, or $1.4 million, as compared to the same quarter in Fiscal Year 2025.
Through the first quarter of FY 2026, there is an
increase of 25.3%, or $3.6 million, as compared to FY
2025. Investment Earnings has a decrease of $0.8
million, due to the unrealized gains/losses from
investments which are book entries. There is an
increase of $3.7 million in Intergovernmental Revenues.
This is due to a Public Water Systems Settlement. 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.
Through Quarter 1, there is a decrease of 13.1%, or $0.9 million, when compared to FY 2025. There were
increases in categories: Fines, Penalties, & Forfeitures, Other Revenues and Utility Service Charges. There
were decreases in categories: Current Services, Fees &
Permits, Investment Earnings, and Licenses, Fees &
Permits. 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.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 Utilities Funds Inflows
Revenue + Transfers In
Quarter 1, FY 2025 to FY 2026
Utilities Funds Inflows
Revenue + Transfers In
FY 2026, Budget to Quarter 1 Actuals
Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 Overall, the Electric utility expenditures through
Quarter 1 are down by 10.2%, or $0.3 million, when
compared to last fiscal year during the same period.
There are increases in contractual and personnel
services, but there are decreases in materials and
supplies and in the utilities category.
At Quarter 1, the operating expenditures total 10.9% of the current FY 2026 operating budget.
When comparing the total of utility outflows, Quarter 1 of FY 2026 to FY 2025, outflows are higher by 6.9%, or $1.8 million.
Overall, the Water utility expenditures are up by 16.1% or $2.5 million when compared to Quarter 1 in FY 2025.
There are increases in materials and supplies,
personnel services, and utilities, but there is a
decrease in the contractual category.
Through Quarter 1, the operating expenditures total
22.2% of the current FY 2026 operating budget.
The Sewer utility expenditures are down by 6.2%, or
$0.5 million, when compared to Quarter 1 of FY 2025.
There are increases in materials and supplies and
personnel services, but there are decreases in the
contractual and utilities categories.
At the end of Quarter 1, the operating expenditures
total 16.9% of the current FY 2026 operating budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 1, FY 2026 | November 5, 2025 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 1, FY 2025 to FY 2026
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 1, FY 2026
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Is there anything additional you’d like to see in
future reports? This will be an evolving process to
capture the areas that are of most interest to the
City Council and the community. Please let us know.
We appreciate the feedback! Please share your
ideas at [email protected], or contact
budget staff at (951) 279-3500.
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