707 and the provisions applicable to an “eligible legislative body” because the City is located in a county that exceeds a population of 600,000 people.
DISCUSSION:
SB 707 updates the City’s open meeting requirements to enhance public participation, transparency, and accessibility.
Teleconferencing and Remote Participation Requirements
• Mandatory Hybrid Meetings: By July 1, 2026, the City Council must provide for hybrid meetings (in-person plus a teleconference option). The teleconference option must be either a two-way telephonic or audiovisual platform (e.g., zoom). If using audiovisual platforms, a call-in option and active captioning (if available) are required.1
• Policy Regarding Broadcast Disruption: Prior to July 1, 2026, the City Council must adopt an open session policy regarding hybrid meetings that includes procedures for restoring service in the event of a broadcast disruption. The policy should include (i) steps to be taken if audio, video, or the entire platform fails, (ii) the appropriate personnel to take corrective action to restore service, and (iii) the procedure to notify the public and resume the meeting upon restoration of service.
In addition, the policy should also outline how the City Council will deal with a disruption or disturbance from a member of the public, either in-person or on teleconference, and restore decorum to the meeting. The policy should also address the procedures for accommodating disability requests by a Councilmember or a member of the public in participating in the meeting, as well as define “just cause” and “emergency circumstances” for purposes of remote participation by a Councilmember.
• One-Hour Recess Requirement: Starting July 1, 2026, if a disruption prevents the public from attending the meeting remotely, the City Council must take a recess and try to restore service. If service cannot be restored within one (1) hour, the City Council must conduct a roll call vote confirming that good faith efforts were made, and make a finding that public interest in continuing the meeting outweighs remote access.2
• Legal Basis for Remote Participation of Councilmember: Starting January 1, 2026, Councilmembers and commissioners who participate remotely must have their legal basis for remote participation recorded in the 1 Cal. Gov. Code § 54953.4(b)(1).
2 Cal. Gov. Code § 54953.4(b)(1).
meeting minutes.3
• Councilmember with Disability: Starting January 1, 2026, Councilmembers and commissioners with a disability may participate remotely as a reasonable accommodation, including participation via audio only (but only if their condition prevents participation on camera). Once an accommodation is granted for a disability, the Councilmember’s remote participation counts toward quorum at the in-person meeting site. Unlike the “just cause” or “emergency circumstance” reasons for
Councilmembers/commissioners to participate remotely, there are no restrictions on the number of meetings a Councilmember/commissioner may attend remotely and no geographic limits on participation, once a disability is established and accommodated. However, those attending remotely must still disclose any present adults and their relationship to them.4
• “Just cause” definition expanded and extended: Currently, Councilmembers and commissioners may participate remotely due to “just cause”. In addition to the existing reasons of childcare needs, a contagious illness, official City-related travel, and physical or family medical emergency, as of January 1, 2026 the definition of “just cause” will now include military service obligations. Previously sunsetting at the end of 2025, the allowance for remote participation via “just cause” has been extended to December 31, 2029.5
Enhancing Public Engagement (Starting July 1, 2026):
• Translation of meeting agendas: If 20% of the City’s population speaks an applicable foreign language and at the same time, that population speaks English less than “very well”6, then the City must translate meeting agendas (but not the entire agenda packet) into that applicable language. There is no need to verbally state how the foreign language translation of the agenda may be accessed during the applicable Council meeting. [Note that the 20% calculation must be based on data regarding foreign languages from the most recent American Community Survey.] 3 Cal. Gov. Code § 54953.8(b)(7).
4 Cal. Gov. Code § 54953(c).
5 Cal. Gov. Code § 54953.8.3(c).
6 Note that the term “very well” is not defined in the Govt. Code, but is a term of art used to identify individuals with limited English proficiency (LEP), and it refers directly to data from the U.S. Census Bureau's American Community Survey (ACS). The U.S. Census Bureau uses this specific phrasing in its survey to measure the level of English proficiency within households and communities. Individuals are considered LEP if they indicate on the ACS that they speak English "less than very well" (which includes responses such as "well", "not well", or "not at all").
• Translation of the City website: Similar to meeting agendas, the following information on the City’s website must also be translated if 20% of the City’s population speaks an applicable foreign language and at the same time that population speaks English less than “very well”. Each translation must be accessible through a prominent direct link posted on the City’s website home page.7
(A) An accessible internet webpage dedicated to public meetings that includes, or provides a link to, all of the following information:
(I) A general explanation of the public meeting process for the City Council.
(II) An explanation of the procedures for a member of the public to provide in-person or remote oral public comment during a public meeting or to submit written public comment .
(III) A calendar of all public meeting dates with calendar listings that include the date, time, and location of each public meeting.
(IV) The agenda posted online.
• Social Media Use: Existing law temporarily allows a Councilmember to participate in individual communications on an internet-based social media platform for specified purposes, provided that a majority of Councilmembers do not use the platforms to discuss or deliberate on matters within the City’s specific subject matter jurisdiction. This bill makes removes the sunset date and makes this exception permanent.8
• Brown Act Copy: The City must provide a copy of the Brown Act to each Councilmember of the City.9
• Oral Reporting of Compensation Decisions: SB 707 clarifies that the City is required to orally report, prior to final action, a summary of any recommendation of final action on compensation for the City Manager, any department heads, or other comparable administrative officer during an open meeting at which the final action is to be taken.
• Assistance in translation services: The City is required to reasonably assist members of the public who wish to translate a public meeting into any language or wish to receive interpretation provided by another member of 7 Cal. Gov. Code § 54953.4(b).
8 Cal. Gov. Code § 54952.2(b).
9 Cal. Gov. Code § 54952.7.
the public. The bill does not require the City to provide translation services, but only to reasonably assist others who choose to engage in translation/interpretation services. It is important to note that in providing any translation service, SB 707 limits the City’s liability in negligent translation and provides that the City will not be responsible for the contents or accuracy of any translation.10
• The bill states that the City Council shall publicize instructions on how to request assistance to the public.
• The “assistance” listed in the bill may include any of the following, as determined by the City Council: (i) Arranging space for one or more interpreters at the meeting location, (ii) Allowing extra time during the meeting for interpretation to occur, and/or (iii) Ensuring participants may utilize their personal equipment or reasonably access facilities for participants to access commercially available interpretation services.
Automated translation tools, such as Google Translate, may be used to satisfy these requirements, provided the other statutory obligations are met and a disclaimer is included noting that translations are automatically generated and may not be exact.
• Translation near posting sites: The City must also provide a freely accessible physical location near where the agendas are posted to allow the public to post additional translations of the agenda in that location.11 • Outreach requirements: The City must make reasonable efforts to invite groups that do not traditionally participate in public meetings to attend those meetings. Examples of such groups include the following:
• Media organizations providing news coverage within the City or region, including ethnic and language-specific outlets serving nonEnglish-speaking communities. • Civil-rights, civic-engagement, neighborhood, and community-based organizations, particularly those active in or serving multilingual or historically marginalized communities.12
C. Additional Key Requirements
• Teleconferencing for Eligible Subsidiary Bodies: SB 707 further standardizes teleconferencing procedures for eligible subsidiary bodies, 10 Cal. Gov. Code § 54953.4(b)(2).
11 Cal. Gov. Code § 54953.4(c)(3).
12 Cal. Gov. Code § 54953.4(b)(3)(C).
such as advisory boards and committees of the City. Before an eligible subsidiary body may use teleconferencing, the City Council must first formally authorize it by charter, ordinance, resolution or other formal action.13 If teleconferencing is authorized, members participating remotely must maintain real-time, two-way communication for the duration of the meeting, unless the member has a physical or mental condition meeting ADA disability criteria that results in a need to participate off camera.
Further, the bill removes the prior requirement to publicly notice each remote location. Also, SB 707 requires each legislative body to reauthorize an eligible subsidiary body’s use of teleconferencing every six months by majority vote, confirming that the practice continues to serve the public interest in accordance with Government Code section 54953.8.6.
The proposed policy sets forth the authority of the City Council to authorize advisory commissions to use teleconferencing, but a separate resolution(s) will need to be adopted by the City Council in the future if the City Council chooses to allow specific teleconferencing authorization. Costs of staffing and the technology for implementation of the hybrid format for each commission will need to be considered.
The policy, if adopted, will help to ensure compliance with Senate Bill 707. Further, the policy will support the City’s mission to ensure public meetings remain transparent, accessible, and inclusive, consistent with the City Council’s goal of proactive communication with all members of the community.
RECOMMENDATION:
1. Adopt the Attached Resolution to Adopt a Policy Entitled “Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings.”
2. Defer action and provide direction to staff.
ENVIRONMENTAL IMPACT:
No Environmental Impact.
FISCAL IMPACT:
No Fiscal Impact.
ATTACHMENTS:
1) Resolution No. 2026-xx
13 Cal. Gov. Code § 54953.8.6. Note that the City Council is not required to authorize any of these teleconferencing procedures.
CC Reso No. 2026-xx Page 1 of 2 May 26, 2026
RESOLUTION NO. 2026-xx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAND
TERRACE, CALIFORNIA, ADOPTING A POLICY GOVERNING REMOTE
PARTICIPATION AND ENHANCEMENT OF PUBLIC PARTICIPATION IN
CITY COUNCIL AND COMMISSION MEETINGS FOR
IMPLEMENTATION OF NEW PROVISIONS OF THE RALPH M. BROWN
ACT AS ENACTED BY SENATE BILL NO. 707
WHEREAS, the Ralph M. Brown Act (“Brown Act”), California’s open meeting law, governs the conduct of public meetings by governmental bodies; and WHEREAS, on October 3, 2025, Governor Newsom signed Senate Bill No. 707 (“SB 707”) to revise the Brown Act’s open meeting laws by allowing greater flexibility in teleconferencing and accessibility requirements, including translation services in certain circumstances and real time captioning, effective July 1, 2026, and until January 1, 2030; and
WHEREAS, the City Council now desires to adopt a policy, entitled “Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings” to implement Senate Bill No. 707.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF GRAND TERRACE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
1. The foregoing Recitals are true and correct and are incorporated herein by this reference.
2. The City Council hereby adopts the “Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings” dated May 12, 2026, attached hereto, for purposes of implementing Senate Bill 707.
3. The City Manager or designee is authorized to implement and enforce the provisions of the Policy adopted herein.
4. The City Manager, or his/her designee, is hereby directed and authorized to make such modifications as may be necessary to the agenda templates of the City Council and City’s commissions, committees, and boards, along with any other agenda related materials, in order to implement the teleconferencing and related rules of SB 707.
5. If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Resolution. The City Council of the City of Grand Terrace hereby declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections,
CC Reso No. 2026-xx Page 2 of 2 May 26, 2026
subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional.
6. The City Clerk shall certify to the adoption of this Resolution, which, shall in turn, have immediate effect.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Grand Terrace at a regular meeting held on the 26th day of May 2026.
Bill Hussey
Mayor
ATTEST:
Daysi Alcocer
City Clerk
APPROVED AS TO FORM:
Adrian R. Guerra
City Attorney
Policy Governing Remote Participation and Enhancement of Public Participation in City Council Meetings
PURPOSE:
The purpose of this Policy Governing Remote Participation and Enhancement of Public Participation in City Council and Commission Meetings is to implement Senate Bill No. 707 (“SB 707”), signed into law on October 3, 2025, which revises and updates the Ralph M.
Brown Act’s open meeting laws to provide greater flexibility in teleconferencing and enhance public participation, transparency, and accessibility in public meetings of the City Council and authorized commissions approved by the City Council pursuant to this Policy.
POLICY:
For purposes of implementation of SB 707, the City Council hereby adopts the following requirements.
I. Hybrid meeting format.
Meetings of the City Council and commissions approved for teleconferencing pursuant to Section VII below shall be conducted in a hybrid-format, consisting of two-way telephonic or audiovisual platform, with a call-in option and automatic captioning activated if the platform provides this feature, pursuant to Government Code section 54953.4(b)(1), as may be amended.
II. Broadcast disruption procedures.
If audio, video, or the entire teleconference platform fails in a manner that prevents the public from observing or participating remotely, the presiding officer shall recess the meeting. The City Clerk or appropriate technical personnel shall take immediate corrective action to restore service. Notice of the disruption shall be posted on the City’s website and announced at the in-person meeting location, if feasible.
If remote access cannot be restored within one (1) hour, the City Council or approved commission shall conduct a roll call vote confirming that good faith efforts were made to restore service and shall make a finding that the public interest in continuing the meeting outweighs the need for remote access before proceeding in accordance with Government Code section 54953.8(b)(7).
If a disruption affects a Councilmember or a commissioner (for commissions approved for teleconferencing pursuant to Section VII below) participating remotely due to an authorized basis, including for just cause or as a reasonable accommodation for a disability, the presiding officer shall
determine whether quorum is maintained and shall recess the meeting if necessary to restore quorum or connectivity. All disruption procedures shall apply equitably whether the disruption affects the public, a Councilmember/ a commissioner (for commissions approved for teleconferencing pursuant to Section VII below), or a member participating remotely for disability accommodation. These procedures also apply to disruptions impacting individuals participating remotely as a reasonable accommodation under applicable law.
III. Disruptions by members of the public.
In addition to authority exercised pursuant to Government Code sections 54954.3 and 54957.9, the presiding officer or their designee may remove, or cause the removal of, an individual who is disrupting a meeting, including a teleconferenced meeting, consistent with Government Code section 54957.95.
For purposes of this Policy, “disrupting” means engaging in behavior during a meeting that actually disrupts, disturbs, impedes, or renders infeasible the orderly conduct of the meeting, including failure to comply with reasonable and lawful regulations governing public comment.
Prior to removing an individual for disruptive behavior, the presiding officer or their designee shall warn the individual that their behavior is disrupting the meeting and that failure to cease the behavior may result in removal. If the individual does not promptly cease the disruptive behavior, the presiding officer or their designee may remove the individual.
A warning is not required if the behavior constitutes use of force or a true threat of force, meaning a threat that a reasonable observer would perceive as an actual threat to use force.
IV. Remote participation by Councilmembers and Commissioners.1 (1) Just cause. A Councilmember or commissioner may participate remotely for “just cause” as defined by Government Code section 54953.8.3(c), including childcare or caregiving needs, a contagious illness, official City-related travel, a physical or family medical emergency, or military service obligations. The legal basis for remote participation shall be disclosed and recorded in the meeting minutes as required by law.
1 This section applies to the City Council and all commissions whether or not advisory commissions are approved for teleconferencing pursuant to Section VII below.
(2) Emergency circumstances. Remote participation due to emergency circumstances shall comply with applicable statutory requirements, including required findings and disclosures.
(3) Disability accommodation. A Councilmember with a qualifying disability may participate remotely as a reasonable accommodation consistent with state and federal law. Participation may occur via audio only if the disability prevents on-camera participation. Once granted, such remote participation shall count toward quorum at the in-person meeting location. Required disclosures regarding adults present at the remote location shall be made as required by law.
V. Translation and public access.
(1) If twenty percent (20%) or more of the City’s population speaks a single non-English language and speaks English less than “very well,” based on the most recent American Community Survey data, City Council meeting agendas (but not full agenda packets) shall be translated into that language and made accessible on the City’s website pursuant to Government Code section 54953.4(b). (2) When the applicable population threshold is met, the City shall provide translated versions of required public meeting information on a prominently linked webpage accessible from the City’s homepage, pursuant to Government Code section 54953.4(b), including:
(i) A general explanation of the public meeting process; (ii) Instructions for providing in-person or remote public comment;
(iii) A calendar of public meeting dates with date, time, and location; and
(iv) Posted meeting agendas.
(3) The City shall reasonably assist members of the public who wish to provide interpretation or translate public meetings. Assistance may include arranging space for interpreters, allowing additional time for interpretation, or permitting the use of personal equipment or commercially available interpretation services. The City shall publicize clear instructions for requesting such assistance in advance of or during meetings.
(4) The City shall also provide a freely accessible physical location near where the agendas are posted to allow the public to post additional translations of the agenda in that location pursuant to Government Code section 54953.4(c)(3).
(4) The City may use digital translation services, such as Google Translate or similar automated tools, to satisfy the translation requirements for agendas and the public meetings webpage, provided the other requirements of Government Code section 54953.4 are met. The City is not responsible for the content or accuracy of any translation provided by such tools, in accordance with Government Code section 54953.4(b)(2). The City may include a disclaimer noting that translations are automatically generated and may not be exact. The City shall make reasonable efforts to ensure translations are understandable to the public and may provide additional clarification upon request.
VI. Outreach efforts.
The City shall make reasonable, good-faith efforts to invite organizations that do not traditionally participate in public meetings to attend City Council meetings. The City retains discretion in determining what constitutes reasonable effort consistent with applicable law. Outreach efforts may include media organizations serving non-English-speaking communities and community groups that historically have lower participation in public meetings.
VII. Teleconferencing authorization for eligible subsidiary bodies.
Pursuant to Government Code section 54953.8.6, eligible subsidiary bodies of the City may be authorized by the City Council to use teleconferencing consistent with applicable law. This policy shall only apply to advisory commissions if authorized for use by the City Council.
Members participating remotely shall maintain real-time, two-way communication for the duration of the meeting unless participating remotely due to a qualifying disability. The City Council shall adopt resolutions authorizing such teleconferencing and, if so adopted, may reauthorize teleconferencing for eligible subsidiary bodies every six (6) months by majority vote confirming that such practice serves the public interest.
VIII. Social media use.
Councilmembers may participate in individual communications on internet-based social media platforms for specified purposes, provided that a majority of Councilmembers do not use the platform to discuss or deliberate on matters within the City’s subject matter jurisdiction. This exception is now permanent pursuant to SB 707 and consistent with Government Code section 54952.2(b).
IX. Brown Act copies.
The City Clerk shall provide a copy of the Brown Act to each Councilmember as required by Government Code section 54952.7.
X. Oral reporting of compensation decisions.
Prior to final action on compensation for the City Manager, any department head, or other comparable administrative officer, the City Council shall orally report, during the open meeting at which the final action is to be taken, a summary of any recommendation for final action, consistent with SB 707.
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Introduction of the FY2026-27 Proposed Budget
PRESENTED BY: Christine Clayton, Finance Director
RECOMMENDATION: REVIEW THE PROPOSED BUDGET FOR FISCAL YEAR 2026-27; AND
BEGIN BUDGET DELIBERATIONS FOR THE PROPOSED BUDGET FOR
FISCAL YEAR 2026-27; AND
CONTINUE BUDGET DELIBERATIONS ON JUNE 9, 2026, FOR BUDGET
ADOPTION
2030 VISION STATEMENT:
This staff report supports City Council Goal #1 "Ensure of Fiscal Viability" through the continuous monitoring of revenue receipts and expenditure disbursements against approved budget appropriations.
BACKGROUND:
In prior years, staff has submitted, for City Council’s review and approval, the proposed budget for the upcoming year. Once approved, this document has served as the City's financial plan for the following year and acts as the basis for budgetary control.
For Fiscal Year (FY) 2025-26, City Council approved a one-year budget, with any adjustments submitted for the FY2025-26 budget, during the current year.
An annual budget allows the city to:
1. Improve financial management,
2. Greater flexibility to respond to our confusing and uncertain environment,
3. Greater ability to shift resources because of service level demands; and
4. Quickly Reallocation and redeploy resources.
DISCUSSION:
GENERAL FUND
FISCAL YEAR 2025-26
Table 1 reflects the FY2025-26 Year-End Revenue and Expenditure projections.
City of Grand Terrace
FY 2025-26 General Fund Revenue and Expenditure Report
Revenues 2025-26 2025-26
Adj. Budget 05-26-26 Projections 03-18-2026
Property Tax $5,190,000 $6,478,224
Proceeds from Sale of
Property
$0 $0
Franchise Fees $675,000 $708,466
Licenses, Fees & Permits $505,320 $470,509
Sales Tax $1,600,000 $1,372,682
Intergovernmental
Revenue/Grants
$58,500 $43,791
Charges for Services $132,500 $47,914
Fines & Forfeitures $41,000 $21,591
Miscellaneous $33,624 $144,065
Use of Money & Property $72,660 $200,463
Wastewater Receipts $401,500 $481,800
Transfers In $0 $0
Total Revenues $8,710,104 $9,969,505
Expenditures
Salaries $2,186,753 $1,974,924
Benefits $1,642,959 $1,571,925
Materials & Supplies $455,175 $434,991
Professional/Cont. Services $4,552,992 $4,974,117
Equipment $50,400 $411,946
Lease of Facility/Equipment $3,750 $5,316
Utilities $257,620 $256,777
Overhead Cost Allocation ($281,950) ($90,145)
Capital Projects $0 $56,000
Debt Service $0 $3
Transfers Out $208,152 $479,946
Total Expenditures $9,075,851 $10,075,800
Revenues $8,710,104 $9,969,505
Expenditures ($9,075,851) ($10,075,800)
Projected Surplus ($365,747) ($106,295)
FISCAL YEAR 2026-27
The City continues to receive optimistic sales tax projections that build on the success from prior and current year sales tax growth. Staff continues to meet with our property and sales tax consultants (HdL) to monitor quarterly sales tax trends.
Revenues:
1. Property Tax projections: Were provided by HdL with funds being received in the amount of $4,1450,000; and
2. Property Tax VLF swap projections: Were provided by HdL in the amount of $2,370,000; and
3. Sales Tax projections: HdL projects sales tax revenue for FY2026-27 in the amount of $1,350,000.
Expenditures:
1. For the Sheriff’s Department, the proposed contract amount is $3,061,144, which is a 13.6% increase from fiscal year 2025-26, which equates to $366,766. The contract proposes the addition of a Sheriff's Service Specialist and in personnel liability and bonding.
2. Under Public Works, the addition of a Senior Management Analyst with costs ranging from $140,000 to $163,200.
3. General Fund Maintenance of Effort: The City receives Measure “I” funds (1/2 cent sales tax collected throughout San Bernardino County for transporation improvements - $332k) and Road Maintenance and Rehabilitation Program (RMRP) funds ($330k) into the RMRA Fund for use on local street and road systems. The term “Maintenance of Effort” (MOE) generally refers to a requirement placed upon state and federally funded grant programs that requires local cities and counties to maintain general fund spending for streets and roads either through a certain percentage or formula, which may include the local agency’s history of past spending on street rehabilitation and/or maintenance.
Table 2 summarizes the FY2026-27 Proposed General Fund Budget:
City of Grand Terrace
FY 2026-27 Proposed General Fund Revenue and Expenditure Report Revenues Proposed
05/26/2026
Property Tax $6,515,000
Franchise Fees $710,000
Licenses, Fees & Permits $665,300
Sales Tax $1,350,000
Intergovernmental Revenue/Grants $60,000
Charges for Services $58,400
Fines & Forfeitures $35,000
Miscellaneous $25,000
Use of Money & Property $219,200
Wastewater Receipts $481,800
Transfers In $13,000
Total Revenues $10,132,700
Expenditures Proposed
05/26/2026
Salaries $2,344,229
Benefits $1,741,021
Materials & Supplies $508,975
Professional/Contractual Services $5,031,625
Equipment $86,500
Lease of Facility/Equipment $4,850
Utilities $273,530
Overhead Cost Allocation ($90,145)
Capital Projects $1,250
Transfers Out $229,052
Total Expenditures $10,130,887
Revenues $10,132,700
Expenditures ($10,130,887)
Fund Balance $1,813
There is no liquidation of assets that will impact the Fund Balance. The projected revenues are greater than the projected expenditures. This is consistent with the City Council’s policy to not fund ongoing expenses with one-time revenue.
CITY-WIDE PROPOSED FY2026-27 BUDGET
The total Proposed Budget for FY2026-27 is $13,536,431 in revenues and $14,544,305 in expenditures.
The City’s Proposed Budget, which is presented for City Council’s review and consideration, • Supports the City’s mission, vision, core values and goals by preserving and protecting the community and its exceptional quality of life; and
PROPOSED BUDGET BY FUND FY 2026-27
The next two tables show the Citywide Proposed Revenues and Expenditure budgets by fund:
Table 3 (Proposed Revenues)
City of Grand Terrace
FY 2026-27 Proposed Revenue Summary by Fund
2024-25 2024-25 2025-26 2025-26 2026-27
Fund Type Adjusted
Budget
Actuals Adjusted
Budget
Year-End
Projections
Proposed
Budget
GENERAL FUNDS
10 GENERAL FUND $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700 61 COMMUNITY
BENEFITS FUND
$20,000 $22,498 $20,000 $20,000 $20,000
62 LIGHT UP GRAND
TERRACE
$33,000 $31,272 $33,000 $35,434 $33,000
63 GT ILLEGAL
FIREWORKS
ENFORCEMENT
$2,000 $6 $0 $0 $0
64 PUBLIC SAFETY
FUND
$0 $716 $0 $0 $0
69 COMMUNITY DAY
FUND
$22,000 $8,805 $20,000 $20,000 $20,000
68 40TH YEAR
BIRTHDAY
CELEBRATION FND
$0 $0 $0 $0 $0
70 EQUIP $0 $5 $0 $180,728 $0
REPLACEMENT
RESERVE FUND
71 FIRE STATION
PROCEEDS
$0 $819,780 $0 $0 $0
DEVELOPMENT
IMPACT FEES (DIF)
11 STREET FUND $88,000 $24,808 $58,000 $4,801 $0
12 STORM DRAIN FUND $800 $12,771 $3,500 $3,423 $0
13 PARK FUND $800 $70,066 $800 $775 $0
19 FACILITIES FUND $1,800 $5,811 $3,300 $3,253 $2,500
SPECIAL REVENUE
FUNDS
14 SLESF (AB3229
COPS)
$185,500 $196,718 $196,100 $202,733 $201,100
15 AIR QUALITY
IMPROVEMENT
FUND
$16,400 $19,664 $17,200 $17,178 $17,400
16 GAS TAX FUND $438,400 $456,807 $441,000 $440,898 $441,000 17 TRAFFIC SAFETY
FUND
$5,000 $6,127 $4,000 $3,993 $4,500
20 MEASURE "I" FUND $330,400 $349,658 $342,500 $342,500 $332,500 25 SPRING MOUNTAIN
RANCH
$2,000 $30,134 $0 $30,000 $0
26 LNDSCP & LGTG
ASSESSMENT DIST
$60,732 $71,507 $72,219 $72,219 $72,219
56 ROAD MAINT &
REHAB ACCT
$305,000 $370,614 $325,000 $324,900 $330,000
67 PUBLIC,
EDUCATIONAL &
GOVT ACCESS
$19,300 $21,552 $19,300 $26,247 $22,000
76 EIFD - ENHANCED
INFRAST FIN DIST
$0 $0 $0 $0 $0
85 OPIOID SETTLEMENT
PAYMENTS
$3,400 $28,231 $3,400 $9,549 $8,000
90 COVID-19 FEMA
REIMBURSEMENT
FUND
$0 $0 $0 $0 $0
91 SB COUNTY COVID19 $0 $0 $0 $0 $0
93 COVID –
INFRASTRUCTURE
$0 $0 $0 $0 $0
94 ARPA $0 $0 $0 $0 $0
ENTERPRISE FUND
21 WASTEWATER
DISPOSAL FUND
$4,000 $52,605 $10,000 $9,578 $10,000
GRANT FUNDS
22 CDBG - COMM DEV
BLOCK GRANT
$90,000 $73,929 $138,678 $128,678 $124,998
65 SENIOR BUS
PROGRAM FUND
$114,996 $72,623 $109,334 $269,334 $109,514
66 CAL RECYCLE
GRANT
$0 ($20,880) $0 $0 $0
73 ACTIVE
TRANSPORTATION
PRGRM FUND
$0 $0 $0 $0 $0
74 HIGHWAY SAFETY
IMPROV PROGRAM
$0 $0 $0 $0 $0
75 EMERMGMT PREP
GRANT
$0 $0 $27,216 $0 $0
77 SO CAL INCENTIVE
PROJ (SCIP) GRANT
$0 $0 $0 $0 $0
92 CDBG – COVID $0 $0 $0 $0 $0
SUCCESSOR
AGENCY
31 S/A RDA REVENUE
FUND
$0 $0 $0 $0 $0
32 S/A CAPITAL
PROJECTS FUND
$0 $0 $0 $0 $0
33 S/A DEBT SERVICE
FUND
$0 $0 $0 $0 $0
36 2011 TABS A & B
BOND PROCEEDS
$0 $0 $0 $0 $0
CAPITAL PROJECT
FUNDS
45 CIP - COMMERCE
WAY
$0 $26,283 $0 $0 $0
46 CAPITAL
IMPROVEMENTS -
STREETS
$664,833 $896,749 $650,000 $750,000 $1,655,000
47 CAP.PRJ.
BARTON/COLTON
BRIDGE
$0 $0 $0 $0 $0
48 CAPITAL PROJECTS
FUND
$0 $0 $0 $0 $0
49 CAPITAL PROJECTS
FUND- PARKS
$0 $207,723 $0 $0 $0
50 CAPITAL PROJECT
BOND PROCEEDS
$0 $819,403 $0 $0 $0
52 HOUSING
AUTHORITY
$0 $108,638 $0 ($365) $0
95 DOG PARK
ENDOWMENT FUND
$0 $0 $0 $0 $0
Table 4 (Proposed Expenditures)
City Of Grand Terrace
FY 2026-27 Proposed Expense Summary by Fund
2024-25 2024-25 2025-26 2025-26 2026-27
Fund Type Adjusted
Budget
Actuals Adjusted
Budget
Year-End
Projections
Proposed
Budget
GENERAL FUNDS
10 GENERAL FUND $8,918,863 $10,688,561 $9,075,851 $10,075,800 $10,130,887 61 COMMUNITY
BENEFITS FUND
$20,000 $20,000 $20,000 $20,000 $20,000
62 LIGHT UP GRAND
TERRACE
$33,000 $23,795 $33,000 $35,434 $33,000
63 GT ILLEGAL
FIREWORKS
ENFORCEMENT
$2,000 $0 $0 $0 $0
64 PUBLIC SAFETY
FUND
$0 $0 $0 $0 $0
69 COMMUNITY DAY
FUND
$22,000 $16,552 $20,000 $20,000 $20,000
68 40TH YEAR
BIRTHDAY
CELEBRATION
FND
$0 $0 $0 $0 $0
70 EQUIP
REPLACEMENT
RESERVE FUND
$0 $70,852 $0 $180,728 $0
DEVELOPMENT
IMPACT FEES
(DIF)
11 STREET FUND $0 $0 $0 $0 $0
12 STORM DRAIN
FUND
$0 $0 $0 $0 $0
13 PARK FUND $0 $0 $0 $0 $0
19 FACILITIES FUND $0 ($2,742) $0 $0 $0
SPECIAL
REVENUE FUNDS
14 SLESF (AB3229
COPS)
$185,550 $194,820 $195,000 $195,000 $200,550
15 AIR QUALITY
IMPROVEMENT
FUND
$0 $0 $20,000 $20,000 $25,000
16 GAS TAX FUND $484,400 $503,726 $436,198 $436,198 $431,042 $10,659,850 $13,698,330 $11,204,651 $12,865,361 $13,536,431
17 TRAFFIC SAFETY
FUND
$4,000 $0 $4,000 $4,000 $4,000
20 MEASURE "I"
FUND
$330,000 $335,598 $340,000 $340,000 $330,000
25 SPRING
MOUNTAIN RANCH
$0 $0 $0 $0 $1,041,000
26 LNDSCP & LGTG
ASSESSMENT
DIST
$52,325 $35,252 $41,545 $41,899 $40,315
56 ROAD MAINT &
REHAB ACCT
$305,000 $525,391 $325,000 $325,000 $330,000
67 PUBLIC,
EDUCATIONAL &
GOVT ACCESS
$16,800 $9,910 $16,800 $23,889 $22,000
76 EIFD - ENHANCED
INFRAST FIN DIST
$0 $0 $0 $0 $0
85 OPIOID
SETTLEMENT
PAYMENTS
$0 $0 $0 $0 $0
90 COVID-19 FEMA
REIMBURSEMENT
FUND
$0 $0 $0 $0 $0
91 SB COUNTY
COVID-19
$0 $0 $0 $0 $0
92 CDBG – COVID $0 $0 $0 $0 $0
93 COVID –
INFRASTRUCTURE
$0 $0 $0 $0 $0
94 ARPA $0 $69,717 $0 $0 $0
ENTERPRISE
FUND
21 WASTEWATER
DISPOSAL FUND
$0 $88,570 $0 $0 $0
GRANT FUNDS
22 CDBG - COMM
DEV BLOCK
GRANT
$90,000 $45,563 $138,678 $128,678 $124,998
65 SENIOR BUS
PROGRAM FUND
$114,996 $101,590 $109,334 $109,430 $109,514
66 CAL RECYCLE
GRANT
$0 $0 $0 $0 $0
73 ACTIVE
TRANSPORTATION
PRGRM FUND
$0 $0 $0 $0 $0
74 HIGHWAY SAFETY
IMPROV
PROGRAM
$1,691 $0 $0 $0 $0
75 EMER MGMT PREP
GRANT
$0 $0 $27,216 $0 $0
77 SO CAL $0 $0 $0 $0 $0
INCENTIVE PROJ
(SCIP) GRANT
SUCCESSOR
AGENCY
31 S/A RDA REVENUE
FUND
$0 $0 $0 $0 $0
32 S/A CAPITAL
PROJECTS FUND
$0 $0 $0 $0 $0
33 S/A DEBT SERVICE
FUND
$0 $0 $0 $0 $0
36 2011 TABS A & B
BOND PROCEEDS
$0 $0 $0 $0 $0
CAPITAL
PROJECT FUNDS
45 CIP - COMMERCE
WAY
$0 $0 $0 $0 $0
46 CAPITAL
IMPROVEMENTS -
STREETS
$868,825 $896,749 $650,000 $684,852 $1,655,000
47 CAP.PRJ.
BARTON/COLTON
BRIDGE
$0 $0 $0 $0 $0
48 CAPITAL
PROJECTS FUND
$0 $33,810 $0 $0 $0
49 CAPITAL
PROJECTS FUNDPARKS
$0 $29,373 $0 $45,194 $0
50 CAPITAL
PROJECTS BOND
PROCEEDS
$0 $945 $0 $0 $0
52 HOUSING
AUTHORITY
$19,567 $22,338 $24,017 $44,637 $26,999
95 DOG PARK
ENDOWMENT
FUND
$0 $0 $0 $0 $0
$11,469,017 $13,710,370 $11,476,639 $12,730,739 $14,544,305 Budget Schedule
The proposed schedule leading to adoption of the FY2026-27 is as follows:
Description Date
Budget Workshop Tuesday, May 12th
Budget Introduction and Deliberations Tuesday, May 26th Continue Budget Deliberations and Budget
Adoption
Tuesday, June 9th
ENVIRONMENTAL IMPACT:
N/A
FISCAL IMPACT:
Fiscal impacts of the FY2026-27 Proposed Budget are identified in the FY2026-27 Proposed Budget Summary (which is being made available in the City Clerk’s office).
CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 1 FY 2026-27 Proposed Budget
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 10 R10 General Fund Rev $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700 E 10 E10 General Fund Exp 8,918,863 10,688,561 9,075,851 10,075,800 10,130,887 $(667,374) $(1,774,854) $(365,747) $(106,295) $1,813
R 11 R11 Street Fund Rev 88,000 24,808 58,000 4,801 -
E 11 E11 Street Fund Exp - - - - -
$88,000 $24,808 $58,000 $4,801 $-
R 12 R12 Storm Drain Fund Rev 800 12,771 3,500 3,423 -
E 12 E12 Storm Drain Fund Exp - - - - -
$800 $12,771 $3,500 $3,423 $-
R 13 R13 Park Fund Rev 800 70,066 800 775 -
E 13 E13 Park Fund Exp - - - - -
$800 $70,066 $800 $775 $-
R 14 R14 SLESF (AB3229 COP S) Rev 185,500 196,718 196,100 202,733 201,100 E 14 E14 SLESF (AB3229 COP S) Exp 185,550 194,820 195,000 195,000 200,550 $(50) $1,898 $1,100 $7,733 $550
R 15 R15 Air Quality Improvement Fund Rev 16,400 19,664 17,200 17,178 17,400 E 15 E15 Air Quality Improvement Fund Exp - - 20,000 20,000 25,000 $16,400 $19,664 $(2,800) $(2,822) $(7,600)
R 16 R16 Gas Tax Fund Rev 438,400 456,807 441,000 440,898 441,000 E 16 E16 Gas Tax Fund Exp 484,400 503,726 436,198 436,198 431,042 $(46,000) $(46,919) $4,802 $4,700 $9,958
R 17 R17 Traffic Safety Fund Rev 5,000 6,127 4,000 3,993 4,500 E 17 E17 Traffic Safety Fund Exp 4,000 - 4,000 4,000 4,000 $1,000 $6,127 $- $(7) $500
R 19 R19 Facilities Fund Rev 1,800 5,811 3,300 3,253 2,500 E 19 E19 Facilities Fund Exp - (2,742) - - -
$1,800 $8,553 $3,300 $3,253 $2,500
R 20 R20 Measure “I” Fund Rev 330,400 349,658 342,500 342,500 332,500 E 20 E20 Measure “I” Fund Exp 330,000 335,598 340,000 340,000 330,000 $400 $14,060 $2,500 $2,500 $2,500
R 21 R21 Waste Water Disposal Fund Rev 4,000 52,605 10,000 9,578 10,000 E 21 E21 Waste Water Disposal Fund Exp - 88,570 - - -
$4,000 $(35,965) $10,000 $9,578 $10,000
2 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed Budget (continued)
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 22 R22 CDBG - Comm Dev Block Grant Rev 90,000 73,929 138,678 128,678 124,998 E 22 E22 CDBG - Comm Dev Block Grant Exp 90,000 45,563 138,678 128,678 124,998 $- $28,366 $- $- $-
R 25 R25 Spring Mountain Ranch Rev 2,000 30,134 - 30,000 - E 25 E25 Spring Mountain Ranch Exp - - - - 1,041,000
$2,000 $30,134 $- $30,000 $(1,041,000)
R 26 R26 LNDSCP & LGTG Assessment Dist Rev 60,732 71,507 72,219 72,219 72,219 E 26 E26 LNDSCP & LGTG Assessment Dist Exp 52,325 35,252 41,545 41,899 40,315 $8,407 $36,255 $30,674 $30,320 $31,904
R 31 R31 S/A RDA Obligation Retirement Fund Rev - - - - - E 31 E31 S/A RDA Obligation Retirement Fund Exp - - - - - $- $- $- $- $-
R 32 R32 S/A Capital Projects Fund Rev - - - - -
E 32 E32 S/A Capital Projects Fund Exp - - - - -
$- $- $- $- $-
R 33 R33 S/A Debt Service Fund Rev - - - - -
E 33 E33 S/A Debt Service Fund Exp - - - - -
$- $- $- $- $-
R 36 R36 2011 Tabs A & B Bond Proceeds Rev - - - - -
E 36 E36 2011 Tabs A & B Bond Proceeds Exp - - - - -
$- $- $- $- $-
R 45 R45 Capital Improvements - Commerce
Way Rev - 26,283 - - -
E 45 E45 Capital Improvements - Commerce
Way Exp - - - - -
$- $26,283 $- $- $-
R 46 R46 Capital Improvements - Streets Rev 664,833 896,749 650,000 750,000 1,655,000 E 46 E46 Capital Improvements - Streets Exp 868,825 896,749 650,000 684,852 1,655,000 $(203,992) $- $- $65,148 $-
R 47 R47 Cap. Prj. Barton/Colton Bridge Rev - - - - -
E 47 E47 Cap. Prj. Barton/Colton Bridge Exp - - - - -
$- $- $- $- $-
R 48 R48 Capital Projects Fund Rev - - - - -
E 48 E48 Capital Projects Fund Exp - 33,810 - - -
$- $(33,810) $- $- $-
CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 3 FY 2026-27 Proposed Budget (continued)
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 49 R49 Capital Projects Fund - Parks Rev - 207,723 - - - E 49 E49 Capital Projects Fund - Parks Exp - 29,373 - 45,194 - $- $178,350 $- $(45,194) $-
R 50 R50 Capital Project Bond Proceeds Rev - 819,403 - - - E 50 E50 Capital Project Bond Proceeds Exp - 945 - - -
$- $818,458 $- $- $-
R 52 R52 Housing Authority Rev - 108,638 - (365) -
E 52 E52 Housing Authority Exp 19,567 22,338 24,017 44,637 26,999 $(19,567) $86,300 $(24,017) $(45,002) $(26,999)
R 56 R56 Road Maintenance & Rehab Acct
Fund Rev 305,000 370,614 325,000 324,900 330,000
E 56 E56 Road Maintenance & Rehab Acct
Fund Exp 305,000 525,391 325,000 325,000 330,000
$- $(154,777) $- $(100) $-
R 61 R61 Community Benefits Fund Rev 20,000 22,498 20,000 20,000 20,000 E 61 E61 Community Benefits Fund Exp 20,000 20,000 20,000 20,000 20,000 $- $2,498 $- $- $-
R 62 R62 Light Up Grand Terrace Rev 33,000 31,272 33,000 35,434 33,000 E 62 E62 Light Up Grand Terrace Exp 33,000 23,795 33,000 35,434 33,000 $- $7,477 $- $- $-
R 63 R63 GT Illegal Fireworks Enforcement Rev 2,000 6 - - - E 63 E63 GT Illegal Fireworks Enforcement Exp 2,000 - - - - $- $6 $- $- $-
R 64 R64 Public Safety Fund Rev - 716 - - -
E 64 E64 Public Safety Fund Exp - - - - -
$- $716 $- $- $-
R 65 R65 Senior Bus Program Rev 114,996 72,623 109,334 269,334 109,514 E 65 E65 Senior Bus Program Exp 114,996 101,590 109,334 109,430 109,514 $- $(28,967) $- $159,904 $-
R 66 R66 Cal Recycle Grant Rev - (20,880) - - -
E 66 E66 Cal Recycle Grant Exp - - - - -
$- $(20,880) $- $- $-
R 67 R67 Public, Educational, & Govt Access Rev 19,300 21,552 19,300 26,247 22,000 E 67 E67 Public, Educational, & Govt Access Exp 16,800 9,910 16,800 23,889 22,000 $2,500 $11,642 $2,500 $2,358 $-
4 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed Budget (continued)
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 68 R68 40TH Year Birthday Celebration Fnd Rev - - - - - E 68 E68 40TH Year Birthday Celebration Fnd Exp - - - - - $- $- $- $- $-
R 69 R69 Community Day Fund Rev 22,000 8,805 20,000 20,000 20,000 E 69 E69 Community Day Fund Exp 22,000 16,552 20,000 20,000 20,000 $- $(7,747) $- $- $-
R 70 R70 Equip Replacement Reserve Fund Rev - 5 - 180,728 - E 70 E70 Equip Replacement Reserve Fund Exp - 70,852 - 180,728 - $- $(70,847) $- $- $-
R 71 R71 Firestation Proceeds Rev - 819,780 - - -
E 71 E71 Firestation Proceeds Exp - - - - -
$- $819,780 $- $- $-
R 73 R73 Active Transportation Prgm Fund Rev - - - - -
E 73 E73 Active Transportation Prgm Fund Exp - - - - -
$- $- $- $- $-
R 74 R74 Highway Safety Improv Program Rev - - - - -
E 74 E74 Highway Safety Improv Program Exp 1,691 - - - - $(1,691) $- $- $- $-
R 75 R75 Emer Mgmt Prep Grant (EMPG) Fund Rev - - 27,216 - - E 75 E75 Emer Mgmt Prep Grant (EMPG) Fund Exp - - 27,216 - - $- $- $- $- $-
R 76 R76 Eifd - Enhanced Infrast Fin Dist Rev - - - - - E 76 E76 Eifd - Enhanced Infrast Fin Dist Exp - - - - - $- $- $- $- $-
R 77 R77 So Cal Incentive Proj (Scip) Grant Rev - - - - - E 77 E77 So Cal Incentive Proj (Scip) Grant Exp - - - - - $- $- $- $- $-
R 85 R85 Opiod Settlement Funds Rev 3,400 28,231 3,400 9,549 8,000 E 85 E85 Opiod Settlement Funds Exp - - - - -
$3,400 $28,231 $3,400 $9,549 $8,000
R 90 R90 COVID-19 Reimbursement Funds Rev - - - - -
E 90 E90 COVID-19 Reimbursement Funds Exp - - - - -
$- $- $- $- $-
CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 5 FY 2026-27 Proposed Budget (continued)
Type Fund Comb 1 Fund Type
2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
R 91 R91 SB County Corona Virus Relief Rev - - - - -
E 91 E91 SB County Corona Virus Relief Exp - - - - -
$- $- $- $- $-
R 92 R92 CDBG - Covid Rev - - - - -
E 92 E92 CDBG - Covid Exp - - - - -
$- $- $- $- $-
R 93 R93 Covid - Infrastructure Rev - - - - -
E 93 E93 Covid - Infrastructure Exp - - - - -
$- $- $- $- $-
R 94 R94 ARPA (American Rescue Plan Act) Rev - - - - -
E 94 E94 ARPA (American Rescue Plan Act) Exp - 69,717 - - - $- $(69,717) $- $- $-
R Total Revenue $10,659,850 $13,698,330 $11,204,651 $12,865,361 $13,536,431 E Total Expense $11,469,017 $13,710,370 $11,476,639 $12,730,739 $14,544,305 $(809,167) $(12,040) $(271,988) $134,622 $(1,007,874)
6 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed Revenue Summary by Fund
Fund Fund Title
2023-24
Actual
2024-25
Actual
2025-2026
Projected
2026-27
Proposed
Budget
General Funds
10 General Fund $11,197,404 $8,913,707 $9,969,505 $10,132,700 61 Community Benefits Fund 22,481 22,498 20,000 20,000
62 Light Up Grand Terrace 33,920 31,272 35,434 33,000
63 GT Illegal Fireworks Enforcement 6 6 - -
64 Public Safety Fund 719 716 - -
69 Community Day Fund 28,097 8,805 20,000 20,000
70 Equip Replacement Reserve Fund 64,287 5 180,728 -
71 Firestation Proceeds - 819,780 -
Development Impact Fees
11 Street Fund $70,646 $24,808 $4,801 $-
12 Storm Drain Fund 9,896 12,771 3,423 -
13 Park Fund 4,330 70,066 775 -
19 Facilities Fund 7,550 5,811 3,253 2,500
Special Revenue Funds
14 SLESF (AB3229 COP S) $188,355 $196,718 $202,733 $201,100 15 Air Quality Improvement Fund 20,144 19,664 17,178 17,400 16 Gas Tax Fund 534,061 456,808 440,898 441,000
17 Traffic Safety Fund 7,666 6,127 3,993 4,500
20 Measure “I” Fund 351,743 349,658 342,500 332,500
25 Spring Mountain Ranch 31,039 30,134 30,000 -
26 LNDSCP & LGTG Assessment Dist 71,039 71,507 72,219 72,219 56 Road Maintenance & Rehab Acct Fund 359,920 370,614 324,900 330,000 67 Public, Educational, & Govt Access 7,969 21,552 26,247 22,000 85 Opiod Settlement Funds 5,740 28,231 9,549 8,000
94 ARPA (American Rescue Plan Act) 747,544 - - -
Enterprise Fund
21 Waste Water Disposal Fund $64,578 $52,605 $9,578 $10,000 Grant Funds
22 CDBG - Comm Dev Block Grant $3,142 $73,929 $128,678 $124,998 65 Senior Bus Program 162,377 72,623 269,334 109,514
66 Cal Recycle Grant 562 (20,880) - -
75 Emer Mgmt Prep Grant (EMPG) Fund 29,212 - - -
Successor Agency
Capital Project Funds
45 Capital Improvements - Commerce Way $26,388 $26,283 $- $- 46 Capital Improvements - Streets 851,878 896,749 750,000 1,655,000 49 Capital Projects Fund - Parks 89 207,723 - -
50 Capital Project Bond Proceeds - 819,403 -
Housing Authority
52 Housing Authority $44,932 $108,638 $(365) $-
Dog Park Endowment Fund
$14,947,714 $13,698,331 $12,865,361 $13,536,431
7 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed Expenditure Summary by Fund
Fund Fund Title
2023-24
Actual
2024-25
Actual
2025-2026
Projected
2026-27
Proposed
Budget
General Funds
10 General Fund $7,981,623 $10,688,561 $10,075,800 $10,130,887 61 Community Benefits Fund 11,350 20,000 20,000 20,000
62 Light Up Grand Terrace 26,626 23,795 35,434 33,000
69 Community Day Fund 20,266 16,552 20,000 20,000
70 Equip Replacement Reserve Fund 35,598 70,852 180,728 - Development Impact Fees
19 Facilities Fund 5,000 (2,742) - -
Special Revenue Funds
14 SLESF (AB3229 COP S) $186,851 $194,820 $195,000 $200,550 15 Air Quality Improvement Fund 11,000 - 20,000 25,000
16 Gas Tax Fund 336,092 503,726 436,198 431,042
17 Traffic Safety Fund 6,571 - 4,000 4,000
20 Measure “I” Fund 299,336 335,598 340,000 330,000
25 Spring Mountain Ranch 50,000 - - 1,041,000
26 LNDSCP & LGTG Assessment Dist 47,093 35,252 41,899 40,315 56 Road Maintenance & Rehab Acct Fund 625,794 525,391 325,000 330,000 67 Public, Educational, & Govt Access 9,142 9,910 23,889 22,000 94 ARPA (American Rescue Plan Act) 785,989 69,717 - -
Enterprise Fund
21 Waste Water Disposal Fund $88,570 $88,570 $- $-
Grant Funds
22 CDBG - Comm Dev Block Grant $43,526 $45,563 $128,678 $124,998 65 Senior Bus Program 306,027 101,590 109,430 109,514
75 Emer Mgmt Prep Grant (EMPG) Fund 29,212 - - -
92 CDBG - Covid 22,995 - - -
Successor Agency
Capital Project Funds
46 Capital Improvements - Streets 916,682 896,749 684,852 1,655,000 48 Capital Projects Fund - 33,810 - -
49 Capital Projects Fund - Parks 27,426 29,373 45,194 - 50 Capital Project Bond Proceeds 207,000 945 -
Housing Authority
52 Housing Authority $38,325 $22,338 $44,637 $26,999
$12,118,094 $13,710,370 $12,730,739 $14,544,305
8 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed Citywide Revenue and Expenditure Report 2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
REVENUES
$4,970,732 $5,253,219 $5,262,219 $6,550,443 $6,587,219
- - - - -
- 1,325 - - -
675,000 737,287 675,000 708,466 710,000
758,970 693,033 575,520 487,709 681,700
1,690,000 1,697,739 1,940,000 1,712,682 1,680,000
749,007 1,017,161 791,876 927,139 744,460
135,500 101,065 132,500 47,914 58,400
49,400 91,971 48,400 35,140 47,000
42,710 66,420 49,624 157,725 39,000
84,060 559,302 101,860 258,397 239,800
318,349 401,500 401,500 481,800 481,800
818,122 2,704,188 858,152 1,129,946 871,052
- - - - -
368,000 374,121 368,000 368,000 368,000
- - - - -
Property Tax
Residual Receipts - RPTTF
Proceeds from Sale of Property
Franchise Fees
Licenses, Fees & Permits
Sales Tax
Intergovernmental Revenue/Grants
Charges for Services
Fines & Forfeitures
Miscellaneous
Use of Money & Property
Waste Water Receipts
Transfers In
Residual Receipts - Sr Ctr
Gas Tax
Bond Proceeds
Capital Projects - - - - 1,028,000
Total Revenues $10,659,850 $13,698,331 $11,204,651 $12,865,361 $13,536,431
EXPENDITURES BY CATEGORY
Salaries $2,123,159 $2,136,812 $2,410,151 $2,198,322 $2,612,746 Benefits 1,532,638 1,342,104 1,746,015 1,674,697 1,857,521 Materials & Supplies 489,880 406,052 457,825 437,641 511,635 Professional/Contractual Services 5,509,657 5,670,586 5,167,101 5,581,887 5,581,341 Equipment 7,100 168,372 50,400 539,138 86,500
Lease of Facility/Equipment 8,700 8,473 3,750 5,316 4,850 Utilities 360,645 333,519 372,195 371,352 393,005
Overhead Cost Allocation (248,400) - (248,400) (56,595) (56,595) Capital Projects 879,516 940,256 659,450 849,032 1,656,250 Debt Service - 8 - 3 -
Transfers Out 806,122 2,704,188 858,152 1,129,946 1,897,052 Total Expenditures $11,469,017 $13,710,370 $11,476,639 $12,730,739 $14,544,305 Revenues 10,659,850 13,698,331 11,204,651 12,865,361 13,536,431 Expenditures by Category (11,469,017) (13,710,370) (11,476,639) (12,730,739) (14,544,305) Surplus or Approved Use of Fund Balance $(809,167) $(12,039) $(271,988) $134,622 $(1,007,874)
CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 9 FY 2026-27 Proposed General Fund Revenue and Expenditure Report 2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
REVENUES
Property Tax $4,910,000 $5,187,316 $5,190,000 $6,478,224 $6,515,000 Proceeds from Sale of Property - 1,325 - - -
Franchise Fees 675,000 737,287 675,000 708,466 710,000
Licenses, Fees & Permits 658,770 606,030 505,320 470,509 665,300 Sales Tax 1,360,000 1,365,441 1,600,000 1,372,682 1,350,000 Intergovernmental Revenue/Grants 58,500 74,018 58,500 43,791 60,000 Charges for Services 132,500 101,065 132,500 47,914 58,400 Fines & Forfeitures 39,000 59,664 41,000 21,591 35,000
Miscellaneous 26,710 53,326 33,624 144,065 25,000
Use of Money & Property 72,660 257,018 72,660 200,463 219,200 Waste Water Receipts 318,349 401,500 401,500 481,800 481,800 Transfers In - 69,717 - - 13,000
Total Revenues $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700
EXPENDITURES BY CATEGORY
Salaries $1,983,894 $1,982,956 $2,186,753 $1,974,924 $2,344,229 Benefits 1,468,901 1,289,221 1,642,959 1,571,925 1,741,021 Materials & Supplies 489,280 403,412 455,175 434,991 508,975 Professional/Contractual Services 4,849,769 5,022,581 4,552,992 4,974,117 5,031,625 Equipment 7,100 97,520 50,400 411,946 86,500
Lease of Facility/Equipment 8,700 8,473 3,750 5,316 4,850 Utilities 251,880 224,562 257,620 256,777 273,530
Overhead Cost Allocation (281,950) (90,145) (281,950) (90,145) (90,145) Capital Projects - 12,251 - 56,000 1,250
Debt Service - 8 - 3 -
Transfers Out 141,289 1,737,722 208,152 479,946 229,052 Total Expenditures $8,918,863 $10,688,561 $9,075,851 $10,075,800 $10,130,887 Revenues 8,251,489 8,913,707 8,710,104 9,969,505 10,132,700 Expenditures by Category (8,918,863) (10,688,561) (9,075,851) (10,075,800) (10,130,887) Surplus or Approved Use of Fund Balance $(667,374) $(1,774,854) $(365,747) $(106,295) $1,813
10 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 FY 2026-27 Proposed General Fund Revenue and Expenditure Report 2024-25
Adjusted
Budget
2024-25
Actuals
2025-26
Adjusted
Budget
2025-26
Year-End
Projections
2026-27
Proposed
Budget
REVENUES
Property Tax $4,910,000 $5,187,316 $5,190,000 $6,478,224 $6,515,000 Proceeds from Sale of Property - 1,325 - - -
Franchise Fees 675,000 737,287 675,000 708,466 710,000
Licenses, Fees & Permits 658,770 606,030 505,320 470,509 665,300 Sales Tax 1,360,000 1,365,441 1,600,000 1,372,682 1,350,000 Intergovernmental Revenue/Grants 58,500 74,018 58,500 43,791 60,000 Charges for Services 132,500 101,065 132,500 47,914 58,400 Fines & Forfeitures 39,000 59,664 41,000 21,591 35,000
Miscellaneous 26,710 53,326 33,624 144,065 25,000
Use of Money & Property 72,660 257,018 72,660 200,463 219,200 Waste Water Receipts 318,349 401,500 401,500 481,800 481,800 Transfers In - 69,717 - - 13,000
Total Revenues $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700
EXPENDITURES BY DEPARTMENT
City Council $115,650 $117,662 $110,522 $109,088 $124,294 City Manager 1,026,316 972,575 1,014,832 1,133,740 1,298,871 City Clerk 355,978 347,842 309,618 305,113 364,485
Finance 682,162 666,857 838,726 759,139 807,302
City Attorney 185,000 219,259 207,500 294,887 235,000
Planning & Dev. Svcs 1,366,671 1,269,801 1,168,324 1,096,673 1,126,266 Public Works 1,648,797 1,847,078 1,537,477 1,987,846 1,595,412 Non-Departmental 787,089 2,579,004 947,602 1,406,918 1,243,057 Public Safety 2,751,200 2,668,483 2,941,250 2,982,396 3,336,200 Total Expenditures $8,918,863 $10,688,561 $9,075,851 $10,075,800 $10,130,887 Revenues $8,251,489 $8,913,707 $8,710,104 $9,969,505 $10,132,700 Expenditures by Department (8,918,863) (10,688,561) (9,075,851) (10,075,800) (10,130,887) Surplus or Approved Use of Fund Balance $(667,374) $(1,774,854) $(365,747) $(106,295) $1,813
11 CITY OF GRAND TERRACE ► Adopted ANNUAL BUDGET. 2025-2026 Summary of Positions
Class Title 2021-22 2022-23 2023-24 2024-25 2025-26
Proposed
Requests 2026-27
Annual
Minimum
Annual
Maximum
1 Assistant City Manager 1.0 - - - - - - $172,839 $210,087 2 Assistant Planner 1.0 1.0 1.0 1.0 - 1 1.0 66,732 81,113 3 Assistant to CM - - - - - - - 77,433 94,120
4 Associate Planner 1.0 - - - 1.0 - 1.0 77,249 93,896
5 Building Permit Tech 1.0 1.0 1.0 1.0 1.0 (1) - 58,339 70,911 6 Bus Driver 1.0 1.0 1.0 1.0 1.0 - 1.0 48,845 59,372
7 City Clerk 1.0 1.0 1.0 1.0 1.0 - 1.0 103,744 126,102
8 City Manager 1.0 1.0 1.0 1.0 1.0 - 1.0 253,050 253,050 9 Code Enf/Animal Ctrl Off 1.0 1.0 1.0 1.0 1.0 (1) - 63,057 76,646 10 Community Development
Director - - - - - 1 1.0 181,153 220,193
11 Department Secretary 2.0 2.0 2.0 2.0 2.0 1 3.0 51,689 62,828 12 Executive Assistant - - - - - - - 57,698 70,132
13 Finance Director - 1 1.0 1.0 1.0 - 1.0 152,177 184,972 14 Finance Manager 1 1 1.0 1.0 1.0 0.0 1.0 103,744 126,102 15 Finance Technician - - 1.0 1.0 - - - 43,439 52,799
16 Grants & Government Affairs
Manager - - - - - 1 1.0 108,493 131,874
17 Intern-1 (P/T) 0.5 0.5 0.5 0.5 0.5 - 0.5 18,200 22,122 18 Maintenance Crew Leader 1.0 - 1.0 1.0 2.0 - 2.0 61,247 74,446 19 Maintenance Crew Leader (PT) - - - - - - - 61,247 74,446 20 Maintenance Project Manager - - - - 1.0 1.0 104,797 127,382 21 Maintenance Worker I 1.0 1.0 2.0 2.0 1.0 (1) - 45,703 55,553 22 Maintenance Worker II 2.0 3.0 1.0 1.0 1.0 1.0 2.0 52,907 64,309 23 Management Analyst 1.0 1.0 1.0 1.0 2.0 - 2.0 77,052 93,657 24 Office Specialist 1.0 - - 1.0 1.0 (1.0) - 44,650 54,273 25 Planning & Development Svcs Dir 1.0 - 1.0 1.0 1.0 (1.0) - 149,035 181,153 26 Planning Technician - - - - - - - 54,899 66,731
27 Senior Accountant 2.0 1.0 - 1.0 1.0 - 1.0 77,258 93,907 28 Senior Finance Tech - - - - - - - 51,415 62,495
29 Sr. Code Enforcement Off 1.0 1.0 1.0 1.0 2.0 72,993 88,723 30 Sr. Maint Crew Leader
- 1.0
- 1.0 1.0 1.0 - - - 74,597 90,673
31 Sr. Management Analyst 1.0 1.0 2.0 2.0 2.0 0 2.0 89,257 108,493 32 Sr. Planner 0.0 1.0 0 0.0 0 - - 89,824 109,182
TOTAL 21.5 20.5 21.5 23.5 23.5 1.0 24.5
AGENDA REPORT
MEETING DATE: May 26, 2026
TITLE: Consideration of a Special Transactions and Use Tax at a Rate of Up to
1.00%
PRESENTED BY: Adrian Guerra, City Attorney
RECOMMENDATION: PROVIDE DIRECTION WHETHER TO PREPARE SPECIAL TRANSACTIONS AND USE TAX MEASURE FOR THE NOVEMBER 3,
2026 GENERAL MUNICIPAL ELECTION
2030 VISION STATEMENT:
This staff report supports City Council Goal #1, “Ensure Our Fiscal Viability” by identifying additional revenue sources.
BACKGROUND:
A transactions and use tax measure was previously considered by the City Council and placed before the voters but was not approved in 2024. Most recently, on March 10, 2026, the City Council considered resolutions and an ordinance relating to a proposed general transactions and use tax measure for the November 3, 2026 General Municipal Election; however, the measure did not receive City Council approval to move forward.
This item is being presented for City Council consideration regarding whether to proceed with preparation of a proposed special transactions and use tax measure for the November 3, 2026 General Municipal Election.
The current city-wide tax rate is 7.75%, which is composed of State, County and City sales tax rates.
The City’s component is only 1.00% as shown below:
Taxing Jurisdiction Rate
California state sales tax 6.00%
San Bernardino County sales tax 0.25%
Grand Terrace sales tax 1.00%
Special tax (San Bernardino County) 0.50%
Combined Sales Tax: 7.75%
State law caps the total cumulative sales tax rate at a maximum rate of 10.25% for the jurisdiction of Grand Terrace. Because 7.75% has already been allocated toward this maximum, 2.50% remains
available.
To utilize a portion of this remaining 2.50%, the City would need to adopt an ordinance establishing a transactions and use tax with a specified tax rate. Pursuant to Revenue and Taxation Code sections 7285.92 and 7251.1, a maximum of 2.00% of the remaining 2.50% may be adopted by the City.
By this staff report, City staff seeks direction from the City Council regarding whether staff should prepare the resolutions, ordinance, and related election materials necessary to submit a proposed transactions and use tax measure as a special tax (versus a general tax) with a rate of 1.00% to the voters at the November 3, 2026, General Municipal Election.
If directed to proceed, staff will return to the City Council with proposed ballot materials identifying the specific purposes for which the special tax revenues may be used. If approved by the voters, the measure is estimated to generate approximately $1 million annually.
DISCUSSION:
City Council Procedures
To place a special tax ordinance on the ballot in the City of Grand Terrace, the City Council must approve the action by a two-thirds vote of the total membership of the Council pursuant to California Government Code § 53724(b). Because the City Council consists of five members, this requires at least four affirmative votes.
Revenues derived from a special tax must be used only for the purposes identified in the measure and may not be used for unrestricted general governmental purposes. Accordingly, if the City Council desires to proceed with a special tax, the City Council must clearly identify the specific purposes for which the tax revenues may be used, which will be incorporated into the ballot measure.
If placed on the ballot by the City Council, a special tax is subject to voter approval under Article XIII C of the California Constitution (Proposition 218) and must be approved by a two-thirds vote of the electorate casting ballots on the measure.
It is important to point out that, if the special tax is proposed by a citizen initiative, only simple majority voter approval (50% + 1) is required for approval by the voters, according to the Fifth District Court of Appeal’s recent decision in City of Fresno v. Fresno Building Healthy Communities (2020) 59 Cal.App.5th 220. In reversing the trial court decision, the court found that the requirement under articles XIII A and XIII C of the California Constitution to obtain two-thirds does not apply where the special tax is proposed by citizen initiative. Article XIII C, section 2(d) of the California Constitution was added by Proposition 218. Similar to Proposition 13, Section 2(d) states that a special tax imposed, extended or increased by a “local government” must be approved by a two-thirds vote. On the contrary, the court concluded that the plain language of Section 2(d) shows that citizen initiative power was not intended to be similarly limited.
Potential Election Resolutions
If the City Council desires to proceed with placing a special transactions and use tax measure before the voters at the November 2026 General Municipal Election, staff will return at a future meeting with the necessary election resolutions and ordinance for City Council consideration.
Potential future actions may include consideration of the following:
1. A resolution submitting the proposed transactions and use tax measure to the voters at the November 3, 2026 General Municipal Election and requesting consolidation with the County
election.
2. A resolution establishing priorities for written ballot arguments and directing the City Attorney to prepare an impartial analysis of the proposed measure.
3. A resolution authorizing rebuttal arguments, if desired by the City Council.
Additionally, the City Council would be required to consider the introduction and first reading, by title only, of a proposed ordinance establishing the special transactions and use tax. Per the City Clerk and relevant County requirements, adopted election materials must be submitted to the San Bernardino County Elections Office no later than August 7, 2026.
Ballot Label Considerations
If the City Council directs staff to proceed, the proposed ballot label would be limited to 75 words or fewer and would be required to comply with the following State law requirements:
1. “If the proposed measure imposes a tax or raises the rate of a tax, the ballot shall include in the statement of the measure to be voted on the amount of money to be raised annually and the rate and duration of the tax to be levied.” (Elec. Code § 13119(b).)
2. “The statement of the measure shall be a true and impartial synopsis of the purpose of the proposed measure, and shall be in language that is neither argumentative nor likely to create prejudice for or against the measure.” (Elec. Code § 13119(c).)
3. “The ballot label must be in the form of “Shall the measure...be adopted?” (Elec. Code § 13119(a).)
Because the proposed measure would impose a special transactions and use tax, the ballot label and measure text should clearly identify the specific purposes for which the tax revenues may be used.
Revenues derived from the tax must be used only for the purposes identified in the measure and may not be used for unrestricted general governmental purposes.
Ballot Arguments and Rebuttals
If the City Council ultimately elects to proceed with a ballot measure, future resolutions may authorize Councilmembers to submit written arguments in favor of the measure. If three or more Councilmembers jointly prepare a ballot argument, the Brown Act would require that collaboration to occur during a properly noticed public meeting.
Rebuttal arguments are optional under State law and may be authorized at the discretion of the City Council.
Collection of Tax Revenue
The transactions and use tax would be collected by the California Department of Tax and Fee Administration (CDTFA) and distributed to the City. Pursuant to Revenue and Taxation Code section 7265, the CDTFA may begin collecting the tax on the first day of the calendar quarter that is at least 110 days following adoption of the ordinance.
If ultimately approved by the voters and adopted by the City Council, staff anticipates the operative date of the tax would be April 1, 2027, depending on the timing of ordinance adoption and CDTFA processing requirements.
The CDTFA will review any proposed ordinance and related election materials to confirm legal and administrative compliance. If CDTFA identifies required revisions, staff would return to the City Council with updated documents for consideration.
RECOMMENDATION:
City staff recommends that the City Council:
1. Determine whether to proceed with preparation of a proposed special transactions and use tax measure for placement on the November 3, 2026 General Municipal Election ballot; and
2. Direct staff to prepare the necessary resolutions, ordinance, and related election materials for future City Council consideration; and
3. Provide any additional direction to staff, as appropriate.
ENVIRONMENTAL IMPACT:
None.
FISCAL IMPACT:
Costs anticipated include city attorneys’ fees to prepare the necessary impartial analysis and costs associated with reviewing and preparing written arguments and rebuttals.