Quarterly
Budget Update
Quarter 4
FY 2026
October 21, 2026
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 Overview
Budget Adjustments &
Revenue Estimates
City Management is pleased to present this
quarterly update summarizing the City’s overall
budget activity through Quarter 4 (June 30, 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 4, FY 2026 | October 21, 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.
Based on FY 2026 projections, the General Fund inflows (revenue and transfers in) are estimated at $251.5 million. The City has received or recorded 103.5% of the estimated General Fund inflows, through the end of Quarter 4. Overall, inflows are up by
1.2% when compared to the same quarter of FY 2025.
As of Quarter 4 of FY 2026, the General Fund has expended 78.2% of its cumulative budget. The current savings is primarily due to capital improvement projects which will take multiple years to complete. Comparing Quarter 4 of FY 2026 to FY 2025, expenditures are down by 4.8%, or $11.9 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. The final
amounts may be adjusted
once the FY 2026 financial
statements are issued.
Emergency
Contingency
1 Equal to 3 months of
operating expenditures.
Adjusted at the end of each
fiscal year (adjusted for FY
2026)
2 3
$56,367,462
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 4, FY 2026 | October 21, 2026 General Fund Inflows
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 Top Five Revenues
The City’s top five General Fund revenue categories
account for approximately 86.2% of the total
estimated General Fund inflows for Quarter 4, 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 4
$-
$20
$40
$60
$80
$100
$120
Millions
FY 2024
FY 2025
FY 2026
At the end of Quarter 4, 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. At the end of Quarter 4, the total received is $100.4 million. As compared to the prior fiscal year, revenues are up by 1.8%, or $1.8 million..
Sales Tax 01
The second largest General Fund revenue category at the end of Quarter 4 is Property Tax. The total for property tax is $70.8 million, an increase of $3.3 million, or 4.9%, over the prior fiscal year. The increase is primarily in secured and vehicle license 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
This category is usually not one of the five largest, but as of Quarter 4, FY 2026, it ranks third largest. At the end of Quarter 4, this category’s total is $20.2 million, representing a positive change of $0.2 million compared to FY 2025. Investment earnings consist of interest on investments as well as realized and unrealized gains and losses on the sale or fair-value adjustment of investments.
Investment Earnings 03
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 As of Quarter 4, 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 4, the total received is $16.1 million. Overall, the Other Taxes category is down by 1.4%, or $0.2 million, as compared to the same quarter in FY 2025.
Other Taxes 04
At the end of Quarter 4, a total of $15.9 million has been received in the Charges for Services category. Items in this revenue group include plan check fees, engineering and inspection fees, recreation revenues, and the Emergency Medical Services Program. Charges for Services are up 8.6%, or $1.3 million as compared to Quarter 4 of FY 2025. When comparing to the prior fiscal year, there is an increase in Engineering & Inspection Fees, Public Works Plan Check Fees, After School Recreation Program Fees, and Ballfield, Tournament and Special Event Fees.
Charges for Services 05
General Fund Inflows Top Five Revenues
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 General Fund Inflows
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 General Fund Revenues
Revenue + Transfers In
Quarter 4, FY 2025 to FY 2026
General Fund Revenues
Revenue + Transfers In
FY 2026, Projected Revenues to Quarter 4 Actuals
General Fund Through Q4 Through Q4 $ %
Revenue Category FY 2025 FY 2026 Change Change
Sales Tax $ 57,270,590 $ 57,687,203 416,614 0.7%
Measure X 41,349,487 42,750,217 1,400,729 3.4%
Property Tax 67,414,475 70,750,319 3,335,844 4.9%
Other Revenue 11,890,218 11,528,740 (361,477) -3.0%
Charges for Services 14,577,164 15,829,727 1,252,563 8.6% Other Taxes 16,296,271 16,075,869 (220,403) -1.4%
Payments in Lieu of Services 7,774,866 7,906,332 131,466 1.7% Intergovernmental Revenues 7,519,958 11,102,464 3,582,505 47.6% Licenses, Fees & Permits 2,827,620 2,147,361 (680,259) -24.1% Utility Service Charges 12,258 15,498 3,240 26.4%
Special Assessments 1,000,503 1,138,894 138,391 13.8%
Fines, Penalties & Forfeitures 1,031,601 1,816,664 785,062 76.1% Investment Earnings 9,654,150 20,566,843 10,912,693 113.0% GASB31 Gain/Loss on Investment 10,339,077 (369,335) (10,708,412) -103.6% Total Revenues $ 248,958,239 $ 258,946,795 $ 9,988,556 4.0% Transfers In 8,076,222 1,288,969 (6,787,253) -84.0%
Total Inflows $ 257,034,461 $ 260,235,764 $ 3,201,303 1.2% Total Inflows (w/o GASB31) $ 246,695,384 $ 260,605,099 $ 13,909,715 5.6% General Fund Projected Through Q4 %
Revenue Category FY 2026 FY 2026 Received
Sales Tax $ 56,604,324 $ 57,687,203 101.9%
Measure X 41,626,174 42,750,217 102.7%
Property Tax 69,019,600 70,750,319 102.5%
Other Revenue 18,682,685 11,528,740 61.7%
Charges for Services 14,530,107 15,829,727 108.9%
Other Taxes 16,290,300 16,075,869 98.7%
Payments in Lieu of Services 8,024,801 7,906,332 98.5%
Intergovernmental Revenues 11,578,513 11,102,464 95.9%
Licenses, Fees & Permits 2,611,234 2,147,361 82.2%
Utility Service Charges 13,200 15,498 117.4%
Special Assessments 1,138,055 1,138,894 100.1%
Fines, Penalties & Forfeitures 1,660,404 1,816,664 109.4% Investment Earnings 8,365,555 20,566,843 245.9%
GASB31 Gain/Loss on Investment - (369,335) N/A
Total Revenues $ 250,144,952 $ 258,946,795 103.5%
Transfers In 1,361,138 1,288,969 94.7%
Total Inflows $ 251,506,090 $ 260,235,764 103.5%
Total Inflows (w/o GASB31) $ 251,506,090 $ 260,605,099 103.6% 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 $303.5 million.
Through Quarter 4, the City has spent $237.6 million, or 78.2% of the cumulative budget. At this point in the fiscal year, expenditures should be approximately 100% of budget. When comparing the same quarter in FY 2025, outflows are down by 4.8%, or $11.9 million.
Personnel Services, the largest budget category, has an increase of $12.5 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 $18.6 million when compared to Quarter 4 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 4, FY 2026 | October 21, 2026 General Fund Outflows
Expenditures + Transfers Out
Quarter 4, FY 2025 to FY 2026
General Fund Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 4, FY 2026
General Fund Through Q4 Through Q4 %
Expenditures By Category 2025 2026 Change
Claims Expense 37 - -100.0%
Contractual 31,955,789 24,442,854 -23.5%
Materials and Supplies 87,625,896 69,021,809 -21.2%
Personnel Services 125,284,375 137,806,477 10.0%
Utilities 4,595,653 5,000,170 8.8%
Total Expenditures $ 249,461,750 $ 236,271,309 -5.3%
Transfers Out 13,083 1,299,267 9831.2%
Total Outflows $ 249,474,833 $ 237,570,576 -4.8%
General Fund Cumulative Budget Through Q4 %
Expenditures By Department FY 2026 FY 2026 Spent
CIP / O&M Projects $ 66,964,928 $ 15,815,128 23.6%
City Manager's Office 15,186,166 8,442,472 55.6%
Community Services 20,946,247 20,067,852 95.8%
Debt Service 26,174,132 26,161,373 100.0%
Economic Development 2,186,213 1,544,157 70.6%
Elected Officials 217,380 196,756 90.5%
Finance 5,708,476 5,470,568 95.8%
Fire 40,742,958 38,926,248 95.5%
General Government 34,555,036 33,933,793 98.2%
Human Resources 3,301,060 2,910,710 88.2%
Information Technology 1,136,533 698,892 61.5%
Legal & Risk Management 2,712,701 2,596,081 95.7%
Planning & Development 10,832,266 9,060,851 83.6%
Police 66,253,534 64,188,109 96.9%
Public Works 6,563,195 6,258,321 95.4%
Total Expenditures $ 303,480,824 $ 236,271,309 77.9%
Transfers Out 391,844 1,299,267 331.6%
Total Outflows $ 303,872,668 $ 237,570,576 78.2%
General Fund Expenditures By Department
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 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 (23.6%)
Current savings are associated to contractual services.
The contractual services are primarily related to the
Homeless Program.
City Manager’s Office (55.6%)
Through June 30, 2026, 100% 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 (70.6%)
Related to Measure X. Current savings due to
contractual services.
Information Technology (61.5%)
Current savings is due to materials and supplies and
contractual services.
Planning & Development (83.6%)
Current savings is due to materials and supplies and
contractual services.
Human Resources (88.2%)
Enterprise Funds
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 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 4
FY 2024 – FY 2025 – FY 2026
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 4, FY 2026 | October 21, 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 4, FY 2026 | October 21, 2026 Comparing Quarter 4 FY 2026 revenues to FY 2025,
there is a decrease of $1.2 million, or 5.5%. There were decreases in categories: Charges for 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 4 revenues are a net
decrease of $0.3 million, or 1.3%
Utilities Revenues - Through Quarter 4 FY 2026, revenues received have increased 12.1%, or $17.2 million, as compared to the same quarter in Fiscal Year 2025.
Through the fourth quarter of FY 2026, there is an
increase of 21.2%, or $17.0 million, as compared to FY
2025. There were decreases in categories: Charges for
Services, Fees and Permits, and Licenses, Fees &
Permits. There were increases in categories: Fines,
Penalties & Forfeitures, Intergovernmental Revenues,
Investment Earnings, Other Revenue and Utility
Services Charges. If GASB31 book entries are excluded,
Quarter 4 revenues are a net increase of $18.5 million, or 23.3%. The primary driver for the increase
compared to FY 2025 is funds received from a public
water systems settlement.
Through Quarter 4, there is an increase of 3.2%, or $1.3 million, when compared to FY 2025. There were
decreases in categories: Fees & Permits,
Intergovernmental Revenues, Investment Earnings, and
Licenses, Fees & Permits. There were increases in
categories: Charges for Services, Fines, Penalties &
Forfeitures, Other Revenue and Utility Services
Charges. Excluding GASB31 book entries, Quarter 4
revenues are a net increase of $3.4 million, or 8.8%.
Electric
Utilities Funds Inflows
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 Utilities Funds Revenues
Revenue + Transfers In
Quarter 4, FY 2025 to FY 2026
Utilities Funds Revenues
Revenue + Transfers In
FY 2026, Projected Revenues to Quarter 4 Actuals
Enterprise Funds Through Q4 Through Q4 %
Fund Type FY 2025 FY 2026 Change
Electric $ 20,633,149 $ 20,358,007 -1.3%
GASB31 Gain/Loss on Investment 650,746 (239,322) -136.8% Water 79,357,494 97,826,585 23.3%
GASB31 Gain/Loss on Investment 1,100,204 (323,106) -129.4% Sewer 39,231,884 42,667,513 8.8%
GASB31 Gain/Loss on Investment 1,615,994 (492,218) -130.5% Total Revenues $ 142,589,473 $ 159,797,458 12.1%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 142,589,473 $ 159,797,458 12.1%
Total Inflows (w/o GASB31) $ 139,222,528 $ 160,852,105 15.5% Enterprise Funds Projected Through Q4 %
Fund Type FY 2026 FY 2026 Received
Electric $ 20,796,533 $ 20,358,007 97.9%
GASB31 Gain/Loss on Investment - (239,322) N/A
Water* 89,921,557 97,826,585 108.8%
GASB31 Gain/Loss on Investment - (323,106) N/A
Sewer* 40,555,786 42,667,513 105.2%
GASB31 Gain/Loss on Investment - (492,218) N/A
Total Revenues $ 151,273,876 $ 159,797,458 105.6%
Transfers In - Electric - - N/A
Transfers In - Water - - N/A
Transfers In - Sewer - - N/A
Total Inflows $ 151,273,876 $ 159,797,458 105.6%
Total Inflows (w/o GASB31) $ 151,273,876 $ 160,852,105 106.3% *Projected amount excludes previously included loan bond proceeds. Per auditor recommendation, loan bond proceeds have been reclassed to long-term debt.
Water Sewer
Utilities Funds Outflows
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 Overall, the Electric utility expenditures through
Quarter 4 are up by 8.3% when compared to last fiscal
year. There is an increase in personnel services and
utilities and decreases in contractual services and
materials and supplies.
At Quarter 4, project expenditures are 19.3% of the
current expenditure budget. The operating budget
expenditures total 61.7% of the current FY 2026 budget.
When comparing the total of utility outflows, Quarter 4 of FY 2026 to FY 2025, outflows are higher by 17.1%, or $21.9 million.
Overall, the Water utility expenditures are up by 27.1% or $19.4 million when compared to Quarter 4 in FY
2026. There are increases in contractual, materials and supplies, and utilities and a decrease in personnel
services.
Through Quarter 4, project expenditures are 37.4% of
the current expenditure budget. The operating budget
transactions total 100.4% of the current FY 2026
budget.
The Sewer utility expenditures are up by 3.3%, or $1.5
million, when compared to Quarter 4 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 4, project expenditures total
19.4% of the cumulative budget. The operating budget
expenditures total 87.3% of the current FY 2026
budget.
Electric
Utilities Funds Outflows
Quarterly Budget Update | Quarter 4, FY 2026 | October 21, 2026 Utilities Funds Outflows
Expenditures + Transfers Out
Quarter 4, FY 2025 to FY 2026
Utilities Funds Outflows
Expenditures + Transfers Out
Budget to Actuals, Quarter 4, FY 2026
Enterprise Funds Through Q4 Through Q4 %
Expenditures By Category FY 2025 FY 2026 Change
Electric
Contractual $ 1,327,787 $ 1,080,402 -18.6%
Materials and Supplies 2,208,858 2,069,616 -6.3%
Personnel Services 575,909 1,168,375 102.9%
Utilities 8,770,168 9,631,829 9.8%
Electric Total 12,882,721 13,950,222 8.3%
Water
Contractual $ 11,029,552 $ 14,684,599 33.1%
Materials and Supplies 42,779,931 58,498,769 36.7%
Personnel Services 10,861,006 10,292,976 -5.2%
Utilities 6,788,740 7,360,188 8.4%
Water Total 71,459,229 90,836,532 27.1%
Sewer
Contractual $ 14,203,390 $ 12,303,003 -13.4%
Materials and Supplies 18,757,092 21,827,976 16.4%
Personnel Services 8,164,257 8,374,193 2.6%
Utilities 2,357,622 2,422,974 2.8%
Sewer Total 43,482,361 44,928,146 3.3%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 127,824,311 $ 149,714,901 17.1%
Enterprise Funds Cumulative Budget Through Q4 %
Expenditures By Department FY 2026 FY 2026 Spent
Electric
CIP / O&M Projects $ 3,281,166 $ 633,282 19.3%
Debt Service 87,574 79,230 90.5%
Public Works 137,763 76,694 55.7%
Utilities Department 21,361,319 13,161,016 61.6%
Electric Total 24,867,822 13,950,222 56.1%
Water
CIP / O&M Projects $ 73,118,761 $ 27,321,570 37.4%
Debt Service 1,434,176 1,433,252 99.9%
Planning & Development 58,768 59,103 100.6%
Public Works 645,940 507,610 78.6%
Utilities Department 61,104,091 61,514,997 100.7%
Water Total 136,361,736 90,836,532 66.6%
Sewer
CIP / O&M Projects $ 56,674,878 $ 10,996,838 19.4%
Debt Service 1,096,817 1,096,815 100.0%
Planning & Development 41,757 30,655 73.4%
Public Works 483,183 432,629 89.5%
Utilities Department 37,230,354 32,371,209 86.9%
Sewer Total 95,526,989 44,928,146 47.0%
Transfers Out - Electric - - N/A
Transfers Out - Water - - N/A
Transfers Out - Sewer - - N/A
Grand Total $ 256,756,547 $ 149,714,901 58.3%
What do you think?
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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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