8/7/2025
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RiversideCA.govFY 2024/25 & 2025/26 Financial and Economic Update City CouncilAugust 19, 2025Finance Department
RiversideCA.gov2
Fiscal Health and OutlookSignificant uncertainty of future fiscal outlook remains Overall, the City maintains a strong financial position1 2 8/7/2025
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•Ongoing federal negotiations and policy statements continue to influence consumer and capital markets.•Major U.S. banks report mixed outlooks on tariffs, noting consumer and business resilience alongside risks from inflationary pressures and cautious spending. •Auto sales continue to increase.•Driving up local procurement and private sector costs.Tariffs RiversideCA.gov4
•Inflation–Increased from 2.8% in May to 2.9% in June•Interest Rates–Unchanged for 8 months•Housing Market and Property Taxes–Projected 2%–3% growth in prices with less salesEconomic Indicators3 4 8/7/2025
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•City Building & Safety –Experienced a modest overall 10.79% decrease in operational volume and revenue in FY 2024/25•Unemployment–Increased from 4.8% to 5.9% in June•Gas Prices on the declineEconomic Indicators RiversideCA.gov6
•Reduced Federal Spending–May result in direct or indirect impact to local governments•Immigration Policies–May contribute to local workforce and labor shortages, decreased local consumer spending, reduced population growth and tax base, and potentially strain local resources.Other Federal Policies5 6 8/7/2025
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•There remains risk of having a net deficit for FY 2024/25 year-end–Revenue likely to be aligned with mid-year budget–Personnel cost exceeding budget–Non personnel savings•Approximate $4.19 million year-end surplus is needed to maintain the City’s 20% policy reservesFY 2024/25 Budget RiversideCA.gov8
1. Receive and provide input on the Fiscal Year 2024/25 & 2025/26 Financial &Economic Update;2. With at least five affirmative votes, authorize the Chief Financial Officer, ordesignee, to record:a. An increase of $1,976,457 in revenue and appropriate an equal amount in expenditures in the General Fund, Fire Operations-Mutual Aid revenue and expenditure accounts for FY 2024/25;b. A supplemental appropriation in the Parking Fund, Professional Services account in the amount of $182,932 to pay for invoices for services provided in FY 2024/25;RECOMMENDATIONSThat the City Council:7 8 8/7/2025
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c. An interdepartmental transfer of 1.0 FTE and related budget transfer of $164,525 for the move of one Principal Management Analyst from Human Resources to the Community and Economic Development Department for FY 2025/26; d. A supplemental appropriation of $90,979 in the General Fund, Fire Administration Professional Services account and increase 1.0 FTE for a Fire Community Preparedness Instructor in the Fire Department for FY 2025/26.3. Approve a reduction of 4.0 FTEs and related budget of $602,009 in theGeneral Fund, Housing & Human Services Department, and Community &Economic Development Department, for FY 2025/26.RECOMMENDATIONS9