DATE: 06/03/2026
TO: Honorable Mayor and City Council Members
FROM: Finance Department
2026-211
REQUEST FOR CITY COUNCIL ACTION
CORONA HOUSING AUTHORITY ACTION
CORONA UTILITY AUTHORITY ACTION
CORONA PUBLIC FINANCING AUTHORITY
SUBJECT:
ADOPTION OF THE CITY OF CORONA PROPOSED BUDGET FOR FISCAL YEAR 2027, AMENDMENTS TO THE FISCAL YEAR 2026 ADOPTED BUDGET, AND
RELATED CONTRACT AMENDMENTS, CHANGE ORDERS, AND PURCHASE ORDERS
EXECUTIVE SUMMARY:
This staff report asks Council to approve the proposed Fiscal Year 2027 budget, Fiscal Year 2026 budget adjustments, and purchase orders for Fiscal Year 2027.
RECOMMENDED ACTION:
That the:
a. City Council Adopt Resolution No. 2026-032, adopting the City’s budget for Fiscal Year 2027 and General Fund Budget Policies.
b. Corona Utility Authority adopts Resolution No. 2026-033, adopting said Authority’s budget for Fiscal Year 2027 and Budget Policies.
c. Corona Public Finance Authority adopts Resolution No. 2026-034, adopting said Authority’s budget for Fiscal Year 2027 and Budget Policies. d. Corona Housing Authority adopts Resolution No. 2026-035, adopting said Authority’s budget for Fiscal Year 2027 and Budget Policies. e. City Council adopts Resolution No. 2026-036, adopting the annual appropriations limit for Fiscal Year 2027 and selecting the population and inflation factors accordingly.
f. City Council approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2027:
i. Authorize the City Manager, or his designee, to issue purchase orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2027 including any non-substantive extensions, change orders, purchase orders, and amendments up to the lesser of either $100,000 or 10% of the original contract amount as authorized by Corona Municipal Code Section 3.08.070 (I).
ii. Authorize a Maintenance/General Services Agreement with HCI Environmental & Engineering Service in the amount of $136,875.53 for Hazardous Waste Disposal Services and Annual Maintenance at the Corona Firing Range.
Authorize the City Manager, or his designee, to issue a Purchase Order to HCI Environmental & Engineering Service in the amount of $136,875.53.
Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders,
amendments, and additional purchase orders up to the amount permitted under Corona Municipal Code Section 3.08.060(I), which is equivalent to 10% of the contract value or $13,687. iii. Authorize Amendments to the Maintenance/General Services Agreements with Tropical Plaza Nursery, Inc., Greentech Landscape, Inc., and Integrity Arborist and Ecoscape, Inc., for Landscaping Services.
Authorize the Seventh Amendment to the Maintenance/General Services Agreement with Tropical Plaza Nursery, Inc. for Areas 1 & 5 Landscaping Services.
Authorize the City Manager, or his designee, to execute the Seventh Amendment to the Maintenance/General Service
Agreement to extend the term through June 30, 2027 and add sports field mowing services, at the rates set forth therein and with a total compensation of $860,724 annually, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona
Municipal Code Section 3.08.060 (I), which is equivalent to 10% or $86,072.
Authorize the First Amendment to the Maintenance/General Services Agreement with Greentech Landscape, Inc. for Area 4 Landscaping Services.
Authorize the City Manager, or his designee, to execute the First Amendment to the Maintenance/General Service
Agreement to add sports field mowing services, at the rates set forth therein and with a total compensation of $342,480 annually, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.060 (I), which is equivalent to 10% or $34,248.
Authorize the First Amendment to the Maintenance/General Services Agreement with Integrity Arborist and Ecoscape, Inc. for Area 2 Landscaping Services.
Authorize the City Manager, or his designee, to execute the Seventh Amendment to the Maintenance/General Service
Agreement to add sports field mowing services, at the rates set forth therein and with a total compensation of $532,745.75 annually, including any non-substantive extensions, change orders, purchase orders, and amendments up to the amount authorized by Corona Municipal Code Section 3.08.060 (I), which is equivalent to 10% or $53,274.57.
g. City Council approve the following budget amendments for Fiscal Year 2026:
i. Authorize an appropriation in the amount of $138,314 to the South Corona Mall Acquisition and Improvement Operating and Maintenance Project No. 79320 within the Measure X Fund 120 for additional design services related to the conversion of a building from a former retail location to a multi-tenant food hall.
ii. Authorize an appropriation in the amount of $20,000 from the Library Facilities and Collection Fee Fund 206 to the Library Materials Operating and Maintenance Project No. 63900 for the expansion of the children’s book collection.
iii. Authorize an appropriation in the amount of $34,500 from the Information Technology Fund 681 to the Information Technology Department for the procurement of DocAccess Software.
iv. Authorize (1) part-time Library Assistant position in the Community Services Department to support program delivery and daily operations at the Corona Public Library’s Innovation Center. The position is to be funded for four years through a state grant intended to support both the construction and operations of the Corona Innovation Center.
h. Adopt Resolution No. 2026-072, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2026- 027, effective June 13, 2026.
BACKGROUND:
The Fiscal Year (FY) 2027 budget process began in November 2025. On Thursday, April 23, 2026, a budget workshop was held to discuss the budget, set goals, and receive direction from the City Council for the development of the FY 2027 budget. These workshops are an important step in the budget process and include a review of the City’s Strategic Plan and FY 2027 Strategic Priorities. Staff prepared the operating budget, capital improvement plan, and additional service adjustment requests for the City Council’s consideration.
At the May 20, 2026, City Council Meeting, staff provided an update to the public and City Council on the progress of the FY 2027 proposed budget. Staff presented the proposed budget overview and a recap of the budget items discussed during the first budget workshop.
ANALYSIS:
The estimated revenue and transfers-in budget for FY 2027 is $502.9 million, which represents a decrease of $100.4 million, or 16.6%, compared to the FY 2026 revenue projections. The most significant decrease, $64.5 million, is in the Enterprise Funds. This is primarily for Water and Wastewater Revenue Bonds issued in FY 2026. The second largest change is a decrease of $28.1 million in the Capital Projects Funds, related to reimbursement agreements for the McKinley Grade Separation Project. Lastly, a $7.0 million decrease in the General Fund, largely driven from a one-time sale of surplus property in FY 2026.
The proposed expenditure and transfers-out budget for FY 2027 totals $510.1 million, which is an increase of $47.5 million, or 9.7%, compared to the adopted FY 2026 budget.
The net change is based on increases in the following categories: $11.8 million in Personnel Costs, $0.2 million in Capital Outlay, $0.4 million in Contractual, $7.1 million in Materials & Supplies, $0.6 million in Debt Service, $3.7 million in Operating and Maintenance Projects, $24.8 million in Capital Improvement Projects, and $2.2 million in Transfer-Out. In addition, there are decreases of $0.2 million in Claims Expenses, and $3.1 million in Utilities.
Recommended actions a, b, c, and d: Annual Budget and Budget Policies The FY 2027 budget was developed in alignment with the City’s adopted Strategic Plan and the following six strategic goals:
1. Financial Stability
2. Strong Economy
3. Sound Infrastructure
4. Safe Community
5. Sense of Place
6. High Performing Government
Presented for consideration by the City Council, Corona Utility Authority, Corona Housing Authority, and Corona Public Financing Authority are the resolutions to adopt the FY 2027 Proposed Operating Budget and Ten-Year Capital Improvement Plan. The Ten-Year Capital Improvement Plan allows for the coordination, financing, and timing of major City public improvements. These documents are prepared to communicate the City’s strategic goals and use of resources.
Recommended action e: Appropriations Limit for FY 2027
Article XIII B of the California Constitution specifies that appropriations made by local governments may increase annually by a factor comprised of the change in population from one year to another, combined with an inflation factor. For the population factor, jurisdictions have a choice between the percentage change in the City’s population growth or the County’s population growth. For the inflation factor, jurisdictions can choose between the California per capita personal income or the increase in non-residential assessed valuation due to new construction. Under the California Constitution, a jurisdiction is required to adopt the Gann Appropriation Limit annually by resolution, selecting each factor by a vote of the governing body. The factors that pertain to the Fiscal Year 2027 calculation are as follows:
Population Percentage Grown
City of Corona -0.35%
County of Riverside 0.42%
Inflation Percentage Factors
California per capital personal income 4.95%
Change in non-residential assessed
Valuation due to new construction Not Available
Staff recommends that the County’s population change of 0.42% and the California per capita personal income change of 4.95% be approved by the City Council. The change in non-residential assessed valuation is usually not available to the City at the time the limit needs to be adopted. When the change in non-residential assessed valuation due to new construction is available, and if it is higher than the California per capita personal income change, staff will recalculate the Appropriations Limit and will resubmit to the City Council for approval. The City’s audit firm provides an attestation letter of the calculation during the audit process each fiscal year.
Recommended action f: City Council approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2027 i. Authorize the City Manager, or his designee, to issue purchase orders for the attached list (Exhibit 8) of Information Technology software renewals for Fiscal Year 2027 including any non-substantive extensions, change orders, purchase orders, and amendments up to the lesser of either $100,000 or 10% of the original contract amount as authorized by Corona Municipal Code Section 3.08.070 (I).
The City utilizes a wide range of software for City operations. In an effort to streamline the procurement process for annual routine software renewals, staff is recommending approval of the attached list of annual renewals to ensure maximum efficiency and savings are realized in the procurement of the annual technology maintenance agreements. The City’s ability to continue to use technology is typically tied to the continuation of annual maintenance payments or subscriptions for that technology. Many vendors are the sole providers of support for their products (i.e., software, hardware, and professional services). Due to the nature of the security requirements related to credit card processing and online payment gateways, many financial software vendors have established relationships with specific third-party providers so their products can maintain certifications and ensure that they meet current and future security standards.
These relationships result in making those service providers the sole source for that application.
ii. Authorize a Maintenance/General Services Agreement with HCI Environmental & Engineering Service in the amount of $136,875.53 for Hazardous Waste Disposal Services and Annual Maintenance at the Corona Firing Range.
HCI Environmental will perform quarterly lead contamination cleaning services for the City of Corona Police Department Firing Range. Services include Providing labor, equipment, and supplies for routine range maintenance and lead cleaning.
HEPA vacuuming and wet wiping of: all floors, ceilings, and walls range, the gun cleaning room. Grooming of the granulated rubber berm trap prior to departure.
Removal, replacement, and proper disposal of police department-supplied air filters, as well as the replacement of exhaust filters. iii. Authorize Amendments to the Maintenance/General Services Agreements with Tropical Plaza Nursery, Inc., Greentech Landscape, Inc., and Integrity Arborist and Ecoscape, Inc., for Landscaping Services.
The Community Services Department is requesting that the City Council approve contract amendments for the landscaping contracts for Tropical Plaza, GreenTech, and Integrity. These amendments include modifications to the scope of work to add sports field mowing at park sites to augment regular parks maintenance, and to extend the term of the contract with Tropical Plaza Nursery through June 30, 2027. The additional services will be funded by corresponding CFDs which support maintenance and upkeep of parks that provide a benefit to the district.
Recommended action g: City Council approve the following budget amendments for Fiscal Year 2026
i. Authorize an appropriation in the amount of $138,314 to the South Corona Mall Acquisition and Improvement Operating and Maintenance Project No. 79320 within the Measure X Fund 120 for additional design services related to the conversion of a building from a former retail location to a multi-tenant food hall.
During the initial design work, it was determined that additional work outside of the original scope was needed to maximum the amount of leasable space within the food hall building, which then will maximize the rental revenue that will be generated for the city. Staff recommends an appropriation in the amount of $138,314 from the Measure X Fund 120 to the South Corona Mall Acquisition and Improvement Operating and Maintenance Project No. 79320. ii. Authorize an appropriation in the amount of $20,000 from the Library Facilities and Collection Fee Fund 206 to the Library Materials Operating and Maintenance Project No. 63900 for the expansion of the children’s book collection.
To purchase resources to expand the Corona Public Library’s Children’s book collection as a supplement to the General Funds budget allocations. Staff recommends an appropriation in the amount of $20,000 from the Library Facilities and Collection Fee Fund 206 to the Library Materials Operating and Maintenance Project No. 63900.
iii. Authorize an appropriation in the amount of $34,500 from the Information Technology Fund 681 to the Information Technology Department for the procurement of DocAccess Software.
DocAccess is an AI-powered accessibility tool that automatically converts, translates, and remediates PDF documents into WCAG 2.1 AA-compliant HTML transcripts. Primarily used by governments and organizations to meet ADA requirements, it enables screen reader compatibility, 150+ language translations, and semantic document restructuring, ensuring equitable access for all users. Staff recommends an appropriation in the amount of $34,500 from the Information Technology Fund 681 to the Information Technology Department. Any unused funds will roll over into FY 2027.
iv. Authorize (1) part-time Library Assistant position in the Community Services Department to support program delivery and daily operations at the Corona Public Library’s Innovation Center. The position is to be funded for four years through a state grant intended to support both the construction and operations of the Corona Innovation Center.
The Corona Public Library will house the Innovation Center and MakerSpace, opening June 2026. Currently, only CNUSD Adult School and Norco College provide 33 hours for the Innovation Center and none for the MakerSpace. The library is open 53 hours weekly and must be programmed at least 75% of that time, including free community offerings. The Library Assistant would manage partnerships, programs, equipment, grants, marketing, maintenance, volunteers, and one late (9pm) closing shift. The position will be 100% funded by the Corona Innovation Center Grant for a period of 4 years (FY27-FY30). After the grant funding expires, the position will be reevaluated and may or may not continue.
Funding for the position is available in the Corona Innovation Center Capital Improvement Project No. FC-2023-10 within the Reimbursement Grants Fund 480.
Recommended action h: Adopt Resolution No. 2026-072, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2026-027, effective June 13, 2026.
State regulations for public employers require disclosure of position classifications and corresponding compensation. In an effort to ensure position compliance updates and for even greater transparency, the City Council regularly adopts and updates the Position Library and Compensation Plan, a document that includes a list of all authorized employment positions for the City and their corresponding compensation ranges (“Plan”).
The Plan provides added organizational efficiency and permits departments to continue streamlining operations without impacting service levels. Additionally, it allows members of the public to see what any given position, even those not currently filled, is paid. To this end, it is essential to note that this document is strictly a resource of all employment positions, and the positions listed will not necessarily be budgeted or funded in any given fiscal year. A list of full-time budgeted positions is located on the City’s website and within the City’s Operating Budget.
Updates to the City of Corona Position Library and Compensation Plan have been modified to reflect newly added positions for Fiscal Year 2027 based on the needs of the organization.
FINANCIAL IMPACT:
Recommended actions a, b, c, d, and e: FY 2027 Budget Resolutions and Annual Appropriations Limit
Recommended actions a, b, c, d, and e will adopt the budget for Fiscal Year 2027 for each of the City’s authorities and approve the annual appropriations limit calculation. The total expenditures for all Governmental, Proprietary, and Agency funds in Fiscal Year 2027 is $504,802,930. The City’s appropriations subject to the limit, based on the annual appropriations limit (a.k.a. Gann Limit) are $207,170,784. With an appropriations limit of $825,566,846, the City of Corona’s proposed expenditure budget is $320,763,916 under the appropriations limit. Approval of the resolutions will not result in any additional financial impacts.
Recommended action f: City Council approve the following contract amendments, change orders, and purchase orders for Fiscal Year 2027 The budget for this recommended action is already included in the FY 2027 Proposed Budget. No additional financial impact is associated with this recommended action.
Recommended action g: City Council approve the following budget amendments for Fiscal Year 2026
Fund Appropriations
Offsetting
Revenue
Net Impact
Total
Measure X Fund (120) 138,314 - 138,314
Library Facilities and Collection
Fee Fund (206) 20,000 - 20,000
Information Technology Fund
(681) 34,500
- 34,500
Fund Appropriations
Offsetting
Revenue
Net Impact
Total
Total $ 192,814 $ - $ 192,814
Recommended action h: Adopt Resolution No. 2026-072, approving the City of Corona Position Library and Compensation Plan and repealing all prior Plans, including Resolution No. 2026-027, effective June 13, 2026.
No additional financial impact is associated with this recommended action.
ENVIRONMENTAL ANALYSIS:
This action is exempt pursuant to Section 15061(b)(3) of the Guidelines for the California Environmental Quality Act (CEQA), which states that a project is exempt from CEQA if the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This action adopts the City’s FY 2027 budget, and makes other budgetary and contract amendments, and there is no possibility that approval of the report will have a significant effect on the environment.
Therefore, no environmental analysis is required.
PREPARED BY: LUIS NAVARRO, BUDGET SUPERVISOR
REVIEWED BY: BRUCE FOLTZ, FINANCE DIRECTOR
ATTACHMENTS:
1. Exhibit 1 – Fiscal Year 2027 Proposed Budget
2. Exhibit 2 – Fiscal Year 2027-2036 Proposed Capital Improvement Plan
3. Exhibit 3 – Resolution No. 2026-032, City Council Budget Resolution for Fiscal Year 2027
4. Exhibit 4 – Resolution No. 2026-033, Corona Utility Authority Budget Resolution for Fiscal Year 2027
5. Exhibit 5 – Resolution No. 2026-034, Corona Public Financing Authority Budget Resolution for Fiscal Year 2027
6. Exhibit 6 – Resolution No. 2026-035, Corona Housing Authority Budget Resolution for Fiscal Year 2027
7. Exhibit 7 – Resolution No. 2026-036, Annual Appropriations Limit for Fiscal Year 2027
8. Exhibit 8 – Fiscal Year 2027 IT Renewal Items
9. Exhibit 9 – HCI Environmental & Engineering Service - Agreement
10.Exhibit 10 – Tropical Plaza Nursery, Inc. – Seventh Amendment
11.Exhibit 11 – Greentech Landscape, Inc. – First Amendment
12.Exhibit 12 – Integrity Arborist and Ecoscape, Inc. – First Amendment
13.Exhibit 13 - Resolution No. 2026-072 Position Library and Compensation Plan
14.Exhibit 14 - Position Library and Compensation Plan - Redline