Quarterly
Budget Update
Quarter 3
FY 2026
May 6, 2026
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 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,
2026) 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, mid-year revenue estimates, and
updated revenue estimates presented at the
Spring Financial Workshop on April 23, 2026.
General Fund Financial Condition
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 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, Community Benefit 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 $242.5 million. Based on FY 2026 projections, there is an estimated increase of $9.0 million when compared to the cumulative budget.
They City has received or recorded 65.2% of the estimated General Fund inflows, through the end of Quarter 3 (at the time this information was prepared). Overall, inflows are up by 2.5% when compared to the same quarter of FY 2025.
As of Quarter 3 of FY 2026, the General Fund has expended 49.9% 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 2026 to FY 2025, expenditures are down by 6.5%, or $10.5 million.
Budget
Balancing
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 14 (for Fiscal
Year Ending June 30, 2025,
page 114). This quarterly
update highlights three of
those reserves. FY 2025
audited amounts are noted in
the table.
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
$54,892,853
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
$13,206,477
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 Top Five Revenues
The City’s top five General Fund revenue categories
account for approximately 89.8% of the total
estimated General Fund inflows for Quarter 3, Fiscal
Year 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 3
$-
$10
$20
$30
$40
$50
$60
$70
Millions
FY 2024
FY 2025
FY 2026
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 $59.1 million. At the time this information was prepared, the revenues are up by 0.4%, or $0.2 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 $57.8 million, an increase of $2.3 million, or 4.1%, 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 $11.6 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 up 14.0%, or $1.4 million as compared to Quarter 3 of FY 2025. When comparing to the prior fiscal year, there is an increase in engineering and inspection related revenues, general benefit revenues, as well as afterschool recreation program revenues. In addition, there are increases in ballfield, tournament, and special event revenues and fire service agreements.
Current Services 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 As of Quarter 3, FY 2026, Other Taxes is the fourth largest category. 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 $9.1 million. Overall, the Other Taxes category is down by 0.9%, or $0.1 million, as compared to the same quarter in FY 2025.
Other Taxes 04
The Other Revenue category ranks the fifth largest. 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 $8.8 million.
Overall, the Other Revenues category is down by 8.3%, or $0.8 million, as compared to the same quarter in FY 2025. This is due to decreases in Misc Rental/Lease Income, Billboard Revenue, and Special District Admin Reimbursements.
Other Revenue 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 General Fund Inflows
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 General Fund Revenues
Revenue + Transfers In
Quarter 3, FY 2025 to FY 2026
General Fund Revenues
Revenue + Transfers In
FY 2026, Projected Revenues to Quarter 3 Actuals
General Fund Through Q3 Through Q3 $ %
Revenue Category FY 2025 FY 2026 Change Change
Sales Tax $ 34,608,912 $ 33,975,688 (633,224) -1.8%
Measure X 24,201,837 25,082,765 880,928 3.6%
Property Tax 55,563,681 57,815,832 2,252,151 4.1%
Other Revenue 9,619,703 8,822,276 (797,428) -8.3%
Current Services 10,210,783 11,641,360 1,430,576 14.0%
Other Taxes 9,189,169 9,108,196 (80,973) -0.9%
Payments in Lieu of Services 5,799,196 5,994,365 195,169 3.4% Intergovernmental Revenues 3,826,045 4,184,725 358,680 9.4% Licenses, Fees & Permits 2,026,783 1,489,430 (537,354) -26.5% Utility Service Charges 8,082 9,803 1,721 21.3%
Special Assessments 509,797 579,087 69,290 13.6%
Fines, Penalties & Forfeitures 719,284 1,371,215 651,930 90.6% Investment Earnings 5,535,784 9,703,692 4,167,909 75.3% GASB31 Gain/Loss on Investment (2,677,846) (6,674,219) (3,996,373) 149.2% Total Revenues $ 159,141,211 $ 163,104,215 $ 3,963,004 2.5% Transfers In 870,220 844,498 (25,722) -3.0%
Total Inflows $ 160,011,431 $ 163,948,713 $ 3,937,282 2.5% Total Inflows (w/o GASB31) $ 162,689,276 $ 170,622,932 $ 7,933,655 4.9% General Fund Projected Through Q3 %
Revenue Category FY 2026 FY 2026 Received
Sales Tax $ 56,604,324 $ 33,975,688 60.0%
Measure X 41,626,174 25,082,765 60.3%
Property Tax 69,019,600 57,815,832 83.8%
Other Revenue 18,682,685 8,822,276 47.2%
Current Services 14,530,107 11,641,360 80.1%
Other Taxes 16,290,300 9,108,196 55.9%
Payments in Lieu of Services 8,024,801 5,994,365 74.7%
Intergovernmental Revenues 11,578,513 4,184,725 36.1%
Licenses, Fees & Permits 2,611,234 1,489,430 57.0%
Utility Service Charges 13,200 9,803 74.3%
Special Assessments 1,138,055 579,087 50.9%
Fines, Penalties & Forfeitures 1,660,404 1,371,215 82.6% Investment Earnings 8,365,555 9,703,692 116.0%
GASB31 Gain/Loss on Investment - (6,674,219) N/A
Total Revenues $ 250,144,952 $ 163,104,215 65.2%
Transfers In 1,361,138 844,498 62.0%
Total Inflows $ 251,506,090 $ 163,948,713 65.2%
Total Inflows (w/o GASB31) $ 251,506,090 $ 170,622,932 67.8% The FY 2026 budget was adopted with $231.3 million in General Fund expenditures. With continuing appropriations of $39.9 million, and encumbrances (committed purchase orders) of $22.3 million, the beginning outflow budget was $293.5 million. Through Council Actions and other authorized adjustments, total outflows are currently $303.8 million.
Through Quarter 3, the City has spent $151.5 million, or 49.9% 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 2025, outflows are down by 6.5%, or $10.5 million.
Personnel Services, the largest budget category, has an increase of $8.5 million as compared to the same quarter last fiscal year. The changes are primarily based on the Memorandum of Understanding (MOU) contracts that went into effect December 28, 2024, and are good through December 2027.
Materials and Supplies is down by $16.1 million when compared to Quarter 3 of FY 2025. There are multiple increases and decreases in this category. The primary driver for change is property acquisitions in the previous fiscal year.
General Fund Expenditures Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 General Fund Outflows
Expenditures + Transfers Out
Quarter 3, FY 2025 to FY 2026
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2026
General Fund Through Q3 Through Q3 %
Expenditures By Category 2025 2026 Change
Claims Expense 37 - -100.0%
Contractual 19,863,726 16,400,031 -17.4%
Materials and Supplies 48,020,097 31,919,777 -33.5%
Personnel Services 90,657,430 99,202,587 9.4%
Utilities 3,495,379 3,726,562 6.6%
Total Expenditures $ 162,036,668 $ 151,248,957 -6.7%
Transfers Out 13,083 293,883 2146.4%
Total Outflows $ 162,049,751 $ 151,542,840 -6.5%
General Fund Cumulative Budget Through Q3 %
Expenditures By Department FY 2026 FY 2026 Spent
CIP / O&M Projects $ 65,597,193 $ 9,764,911 14.9%
City Manager's Office 15,138,858 5,717,877 37.8%
Community Services 20,720,044 14,496,617 70.0%
Debt Service 26,174,132 7,899,556 30.2%
Economic Development 2,186,213 1,204,274 55.1%
Elected Officials 217,380 147,266 67.7%
Finance 5,676,831 3,852,821 67.9%
Fire 41,292,487 27,486,661 66.6%
General Government 35,996,773 20,415,132 56.7%
Human Resources 3,269,463 2,065,988 63.2%
Information Technology 1,136,533 409,269 36.0%
Legal & Risk Management 2,712,701 1,879,920 69.3%
Planning & Development 10,754,005 6,358,320 59.1%
Police 66,090,102 45,310,737 68.6%
Public Works 6,473,049 4,239,607 65.5%
Total Expenditures $ 303,435,763 $ 151,248,957 49.8%
Transfers Out 391,844 293,883 75.0%
Total Outflows $ 303,827,607 $ 151,542,840 49.9%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 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 (14.9%)
Current savings are related to personnel services and
contractual services. The contractual services are
primarily related to the Homeless Program.
City Manager’s Office (37.8%)
Through March 31, 2026, 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 materials and supplies and
contractual services.
Economic Development (55.1%)
Quarter 3 is trending low due to materials and supplies and contractual services. Insurance premiums are
reconciled and recorded at year-end.
General Government (56.7%)
Related to Measure X. Current savings due to
contractual services.
Information Technology (36.0%)
Current savings is due to materials and supplies and
contractual services.
Planning & Development (59.1%)
Quarter 3 is low due to the timing of debt service
payments based on approved payment cycles.
Debt Services (30.2%)
Current savings is due to materials and supplies and
contractual services.
Human Resources (63.2%)
Enterprise Funds
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 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 2024 – FY 2025 – FY 2026
$-
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
$110
Electric Water Sewer
FY 2024
FY 2025
FY 2026
Millions
Emergency
Contingency
1 2 3
GOAL
$4,901,402
Electric
Utility
$1,257,122
Water
Utility
Sewer
Utility
$4,074,328 $1,716,527
Utilities Funds Reserves
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 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 2026 | May 6, 2026 Comparing Quarter 3 FY 2026 revenues to FY 2025,
there is a decrease of $1.4 million, or 9.4%. There were decreases in categories: Current Services, Fines,
Penalties & Forfeitures, Intergovernmental Revenues,
Investment Earnings, and Other Revenue. There were
increases in categories: Fees & Permits 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
decrease of $0.8 million, or 5.9%
Utilities Revenues - Through Quarter 3 FY 2026, revenues received have increased 90.4%, or $82.6 million, as compared to the same quarter in Fiscal Year 2025.
Through the third quarter of FY 2026, there is an
increase of 100.8%, or $52.0 million, as compared to FY 2025. There were decreases in categories: Current
Services, Fines, Penalties & Forfeitures, Investment
Earnings, Licenses, Fees & Permits, and Utility Services Charges. There were increases in categories: Fees &
Permits, Intergovernmental Revenues, Other Revenues
and Proceeds from Long Term Debt. If GASB31 book
entries are excluded, Quarter 3 revenues are a net
increase of $52.9 million, or 103.9%. The primary
drivers for the increase compared to FY 2025 are the
issuance of water revenue bonds and settlement
funds.
Through Quarter 3, there is an increase of 126.2%, or
$32.0 million, when compared to FY 2025. There were
decreases in categories: Fees & Permits, Investment
Earnings, and Licenses, Fees & Permits. There were
increases in categories: Current Services, Fines,
Penalties & Forfeitures, Intergovernmental Revenues,
Other Revenue, Proceeds from Long Term Debt and
Utility Services Charges. Excluding GASB31 book
entries, Quarter 3 revenues are a net increase of $33.4 million, or 137.1%. The primary driver for the increase compared to FY 2025 is the issuance of wastewater
revenue bonds.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 Utilities Funds Revenues
Revenue + Transfers In
Quarter 3, FY 2025 to FY 2026
Utilities Funds Revenues
Revenue + Transfers In
FY 2026, Projected Revenues to Quarter 3 Actuals
Enterprise Funds Through Q3 Through Q3 %
Fund Type FY 2025 FY 2026 Change
Electric $ 14,120,461 $ 13,288,927 -5.9%
GASB31 Gain/Loss on Investment 341,426 (192,184) -156.3% Water 50,932,598 103,874,787 103.9%
GASB31 Gain/Loss on Investment 661,796 (260,817) -139.4% Sewer 24,339,180 57,699,731 137.1%
GASB31 Gain/Loss on Investment 991,704 (404,825) -140.8% Total Revenues $ 91,387,165 $ 174,005,619 90.4%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 91,387,165 $ 174,005,619 90.4%
Total Inflows (w/o GASB31) $ 89,392,239 $ 174,863,445 95.6% Enterprise Funds Projected Through Q3 %
Fund Type FY 2026 FY 2026 Received
Electric $ 20,796,533 $ 13,288,927 63.9%
GASB31 Gain/Loss on Investment - (192,184) N/A
Water 129,601,557 103,874,787 80.1%
GASB31 Gain/Loss on Investment - (260,817) N/A
Sewer 72,285,786 57,699,731 79.8%
GASB31 Gain/Loss on Investment - (404,825) N/A
Total Revenues $ 222,683,876 $ 174,005,619 78.1%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 222,683,876 $ 174,005,619 78.1%
Total Inflows (w/o GASB31) $ 222,683,876 $ 174,863,445 78.5% Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 Overall, the Electric utility expenditures through
Quarter 3 are up by 7.8% when compared to last fiscal
year. There is an increase in utilities and decreases in contractual services, materials and supplies and
personnel services.
At Quarter 3, project expenditures are 10.5% of the
current expenditure budget. The operating budget
expenditures total 41.7% of the current FY 2026 budget.
When comparing the total of utility outflows, Quarter 3 of FY 2026 to FY 2025, outflows are higher by 9.4%, or $8.3 million.
Overall, the Water utility expenditures are up by 16.2% or $8.1 million when compared to Quarter 3 in FY 2025.
There are increases in categories: contractual,
materials and supplies, personnel services, and
utilities.
Through Quarter 3, project expenditures are 21.0% of
the current expenditure budget. The operating budget
transactions total 68.8% of the current FY 2026
budget.
The Sewer utility expenditures are down by 1.4%, or
$0.4 million, when compared to Quarter 3 of FY 2025.
There is a decrease in contractual services but
increases across all other categories: materials and
supplies, personnel services, and utilities.
At the end of Quarter 3, project expenditures total
11.4% of the cumulative budget. The operating budget
expenditures total 61.2% of the current FY 2026
budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 3, FY 2026 | May 6, 2026 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 3, FY 2025 to FY 2026
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 3, FY 2026
Enterprise Funds Through Q3 Through Q3 %
Expenditures By Category FY 2025 FY 2026 Change
Electric
Contractual $ 888,867 $ 590,966 -33.5%
Depreciation - - N/A
Materials and Supplies 1,651,937 1,356,629 -17.9%
Personnel Services 443,618 418,415 -5.7%
Utilities 5,690,971 6,982,257 22.7%
Electric Total 8,675,392 9,348,267 7.8%
Water
Contractual $ 8,440,343 $ 8,902,980 5.5%
Materials and Supplies 29,532,823 35,883,381 21.5%
Personnel Services 6,775,125 7,576,701 11.8%
Utilities 5,108,469 5,582,894 9.3%
Water Total 49,856,759 57,945,956 16.2%
Sewer
Contractual $ 9,059,820 $ 7,308,311 -19.3%
Depreciation N/A
Materials and Supplies 14,030,853 14,986,930 6.8%
Personnel Services 5,225,870 5,544,213 6.1%
Utilities 1,757,049 1,817,595 3.4%
Sewer Total 30,073,591 29,657,049 -1.4%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 88,605,743 $ 96,951,272 9.4%
Enterprise Funds Cumulative Budget Through Q3 %
Expenditures By Department FY 2026 FY 2026 Spent
Electric
CIP / O&M Projects $ 3,356,016 $ 352,969 10.5%
Debt Service 83,695 26,889 32.1%
Public Works 137,763 54,487 39.6%
Utilities Department 21,358,435 8,913,922 41.7%
Electric Total 24,935,909 9,348,267 37.5%
Water
CIP / O&M Projects $ 72,448,114 $ 15,203,104 21.0%
Debt Service 375,493 1,199,899 319.6%
Planning & Development 58,768 43,201 73.5%
Public Works 645,940 360,122 55.8%
Utilities Department 61,066,216 41,139,630 67.4%
Water Total 134,594,531 57,945,956 43.1%
Sewer
CIP / O&M Projects $ 56,349,215 $ 6,448,882 11.4%
Debt Service 209,921 1,017,033 484.5%
Planning & Development 41,757 20,405 48.9%
Public Works 483,183 296,991 61.5%
Utilities Department 37,199,001 21,873,738 58.8%
Sewer Total 94,283,077 29,657,049 31.5%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 253,813,516 $ 96,951,272 38.2%
What do you think?
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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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