Governmental Processes Committee
TO: GOVERNMENTAL PROCESSES COMMITTEE DATE: AUGUST 6, 2025 FROM: FINANCE DEPARTMENT WARDS: ALL SUBJECT: RECONSIDERATION TO AMEND CHAPTER 2.90 SECTION 2.90.030 OF THE RIVERSIDE MUNICIPAL CODE TO REDUCE THE MEMBERSHIP OF THE BUDGET ENGAGEMENT COMMISSION ISSUE:
Review and discuss options to amend Chapter 2.90 Section 2.90.030 of the Riverside Municipal Code to reduce the membership of the Budget Engagement Commission.
RECOMMENDATIONS:
That the Governmental Processes Committee:
Consider options to amend Chapter 2.90 Section 2.90.030 of the Riverside Municipal Code to reduce the membership of the Budget Engagement Commission; and Recommend that City Council adopt an ordinance to amend Chapter 2.90 Section 2.90.030 of the Riverside Municipal Code.
BACKGROUND:
On January 10, 2017, the City Council adopted Ordinance 7363 establishing a Budget Engagement Commission by amending Title 2 of the Riverside Municipal Code by adding Chapter 2.90. Section 2.90.030 Membership states:
Number. The Budget Engagement Commission shall be composed of 18 members, consisting of:
Nine resident members, seven nominated by each of the Council members to represent each of the City's wards, and two Citywide nominations made by the Mayor; and Nine business members, seven nominated by each of the Council members to represent a business located in their respective City wards or an individual who resides in the respective City ward and who has a business located in any ward in the City, and two Citywide nominations made by the Mayor.
On June 8, 2023, the Budget Engagement Commission considered a staff recommendation to reduce the membership of the Budget Engagement Commission to 7 Ward seats and 4 Citywide seats for a total of 11 members with Resident and Business seat appointments at the discretion of the appointing elected official and forward recommendations to the Inclusiveness, Community Engagement and Governmental Processes Committee (ICEGPC) for consideration. The motion carried with 9 Aye votes, 1 Abstention, and 1 No vote.
On July 5, 2023, the ICEGPC considered the recommendations of City staff and the BEC to reduce the membership of the Budget Engagement Commission to 7 Ward seats and 4 Citywide seats for a total of 11 members with Resident and Business seat appointments at the discretion of the appointing elected official. The ICEGPC voted to continue the item for future consideration to assess whether quorum issues would persist.
On March 17, 2025, the Budget Engagement Commission reviewed and discussed the recommendation to amend Chapter 2.90 of the Riverside Municipal Code Section 2.90.030 to reduce the membership of the Budget Engagement Commission to 7 Ward seats and 4 Citywide seats for a total of 11 members with Resident and Business seat appointments at the discretion of the appointing elected official.
DISCUSSION:
Since the inception of the Budget Engagement Commission in 2017, there has been a consistent lack of applications in the pool to fill vacancies, specifically for the Business seats. Several meetings are cancelled due to lack of quorums because of vacancies and absences.
Although meeting attendance has improved since 2023, the BEC continues to struggle with achieving and maintaining full membership, resulting in a misalignment with quorum requirements. Under the Brown Act, a quorum requires more than half of the total membership to be physically present at a designated meeting location, meaning at least 10 commissioners must be present for the BEC to conduct business. Additionally, effective January 1, 2023, AB 2449 amended the Brown Act to specify that virtual attendance no longer counts toward quorum.
The Budget Engagement Commission has five vacancies as of July 1, 2025. Reducing the Budget Engagement Commission's membership would benefit the City of Riverside by lowering the quorum requirement, ensuring meetings can proceed as scheduled. Currently, the commission has 13 appointed members out of a total of 18 seats.
Importance of the BEC
The Budget Engagement Commission (BEC) serves a vital role in representing both citizen and business stakeholders in Riverside. As an advisory body to the City Council, the BEC advocates for budget decisions that align with the priorities of the community, particularly in the allocation of resources from the General Fund and Measure Z. Formed in 2017, the BEC was established “To advise the City Council on spending and policy priorities based on the information received through quarterly financial and performance reports, including revenues from transaction and use tax, to work with City staff to maximize public engagement on municipal budgetary issues and to provide input on performance measures and reporting programs.” Through its recommendations, the BEC has influenced key budget decisions, ensuring a more community-centered approach to resource allocation. Its input has been recognized by the City Council and other stakeholders, reinforcing the Commission's significance in promoting transparency and inclusivity in Riverside's financial management.
Impact of Meeting Cancellations
Meeting cancellations due to a lack of quorum have prevented the BEC from fulfilling its advisory role in some instances, resulting in missed opportunities to provide input on proposed Measure Z initiatives, and quarterly financial reports with supplemental appropriations.
Furthermore, the cancellation of BEC meetings results in an unnecessary drain on City resources. Accounting only for the BEC secretary and communications team, each BEC meeting requires an average of 25 labor hours and $1,250 in direct labor and material costs. Additional costs are incurred for other City staff at all levels of the organization to develop, review, and approve meeting content and to be present at the BEC meetings.
Additionally, BEC members routinely make employment, childcare, or other arrangements to attend meetings, yet may arrive and discover that a quorum is lacking.
Proposed BEC Membership Changes
To address the quorum issue and impacts of meeting cancellations, on March 17, 2025, the BEC approved a recommendation (6 aye and 4 no votes) to decrease the membership as follows:
Amend Chapter 2.90 Section 2.90.030 of the Riverside Municipal Code to reduce the membership of the Budget Engagement Commission to seven Ward seats and four Citywide seats for a total of eleven members, with Resident and Business seat appointments at the discretion of the appointing elected official; Consider a pathway to membership reduction as follows; (a) immediately eliminate vacant seats for Wards 4, 6, and 7, as well as one of the two vacant Ward 2 seats; (b) as terms expire or members resign, eliminate their seat provided that at least one representative remains for the respective ward; If the will of the Council is to reduce the mayoral appoints from four to two, the BEC recommends the Council follow a similar pathway to membership reduction such that the following occurs: (a) immediately eliminate vacant seats for Wards 4, 6, and 7, as well as one of the two vacant Ward 2 seats and one of the Citywide seats; (b) as terms expire or members resign, eliminate their seat provided that at least one representative remains for the respective ward and two representatives remain for the Citywide seats; and Forward the recommendation to the Governmental Processes Committee for consideration.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Sergio Aguilar, Deputy Finance Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/ Asst. Chief Financial Officer Approved by: Edward Enriquez, Assistant City Manager/ Chief Financial Officer/ City Treasurer
Approved as to form: Rebecca McKee-Reimbold, Interim City Attorney Attachments:
Code of Ordinances – Chapter 2.90 Section 2.90.030 (Budget Engagement Commission) Presentation
BEC Membership Reduction ● Page 2