Riverside City Council
January 13, 2026

Fiscal Year EndedJune 30, 2025Fiscal Year EndedJune 30, 2025Financial Report(Major Funds)Financial Report(Major Funds)FY 2024/25FY 2024/25

Fiscal Year Ended
June 30, 2025
Fiscal Year Ended
June 30, 2025
Financial Report
(Major Funds)
Financial Report
(Major Funds)
FY 2024/25
FY 2024/25
Table of Contents
General Fund 2
Revenue 3
Revenues by Category 4
10-Year Revenue History 6
Expenditures 7
Expenditures by Category 9
Expenditures by Department 11
10-Year Expenditure History 12
Personnel 14
Fund Reserves 17
General Fund Reserves 18
General Fund Outlook 19
Measure Z Funds 20
Revenue 20
Expenditures 21
Unallocated Fund Reserves 21
Electric Fund 22
Revenue 22
Expenditures 23
Fund Reserves 24
Water Fund 25
Revenue 25
Expenditures 26
Fund Reserves 27
Refuse Fund 28
Revenue 28
Expenditures 29
Fund Reserves 30
Sewer Fund 31
Revenue 31
Expenditures 32
Fund Reserves 33
Public Parking Fund 34
Revenue 34
Expenditures 35
Fund Reserves 36
Appendix A – Carryover Recommendations 37
Appendix B – Measure Z Spending Plan 46
General Fund
The City adopts a biennial budget and five-year planning process to provide a more informative, long-term outlook on City finances. On June 25, 2024, the City Council adopted Resolution No. 24131 approving the Fiscal Year (FY) 2024-2026 Biennial Budget, which included a budget for FY 2024/25.

Revenue projections for the FY 2024-2026 Biennial Budget were initially based on early Spring 2024 performance. The City’s sales and property tax consultant, HdL, anticipated 3.1% growth in FY 2024/25 over FY 2023/24 projections, including 4.2% growth in property tax and 2.1% growth in sales tax. General Fund revenues were revised mid-year as additional data became available, informed by FY 2023/24 actual revenue performance and taking into account economic uncertainties associated with newly enacted federal policies including tariffs, immigration policies, and federal funding reductions. Actual revenues outperformed projections by 1.4%, with property tax and sales tax growth ending 6.4% and 2.7% above prior year actuals, respectively. This growth was partially offset by underperforming revenues in other categories, including business license tax, development fees and charges, and other revenue.

The adopted FY 2024/25 budget for the General Fund totaled $361.2 million (M). Budget adjustments throughout the fiscal year addressed rising costs and critical needs, such as newly approved labor agreements, public safety overtime, and various legal costs. As a result of lower projected revenue and increased costs, the City adopted various cost savings measures mid-year to ensure a balanced budget and ongoing fiscal sustainability.

1.4%Revenues AboveRevised Budget Projections1.4%Revenues AboveRevised Budget Projections1.6%Projected Expenditure Savings1.6%Projected Expenditure Savings$9.56MUnassigned Reserve$9.56MUnassigned ReserveThe General Fund’s unaudited results present a net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and other required governmental accounting adjustments.The General Fund’s unaudited results present a net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and other required governmental accounting adjustments.General Fund Results at a Glance (Unaudited)General Fund Results at a Glance (Unaudited)As a result of higher than projected revenues and expenditure savings in various categories, the City concluded the fiscal year with net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and other required governmental accounting adjustments.

1.4%
Revenues Above
Revised Budget Projections

1.4%
Revenues Above
Revised Budget Projections

1.6%
Projected Expenditure Savings

1.6%
Projected Expenditure Savings
$9.56M
Unassigned Reserve
$9.56M
Unassigned Reserve
The General Fund’s unaudited results present a net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and other required governmental accounting adjustments.

The General Fund’s unaudited results present a net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and other required governmental accounting adjustments.

General Fund Results at a Glance (Unaudited)
General Fund Results at a Glance (Unaudited)
Revenue
Revenue estimates for the FY 2024-2026 Biennial Budget were developed using a range of sources, including historical revenue analysis, economic data, input from the City’s sales and property tax consultants, City departments, and the County of Riverside. Approximately 80% of the General Fund revenue budget generally comes from sales tax, property tax, utility users tax, and General Fund transfers.

Sales tax is a major revenue source for the General Fund, accounting for approximately 26% of the overall revenue budget. The FY 2024-2026 Biennial Budget increased sales tax revenue projections by 2.1% over the revised FY 2023/24 budget forecast, estimating moderate growth. The FY 2024/25 sales tax estimate was revised downward by 2% midyear given lower actual performance and economic uncertainties associated with rapidly changing federal policies. However, FY 2024/25 sales tax actuals ended 3.3% above revised projections, in large part due to high performing vehicle sales.

Another primary source of General Fund revenue is property tax, accounting for approximately 26% of the overall revenue budget. The adopted budget increased property tax revenue estimates by 4.2%, largely based on updated projections from HdL that reflected continued growth in property values, high demand, and a housing shortage. Property tax revenue outperformed estimates by 2.1%, primarily driven by increases in Successor Agency revenue, which are outside the scope of HdL’s forecasts.

Other revenues in the FY 2024/25 adopted budget projected moderate growth, including higher Developer Fees from anticipated fee increases, increased business license tax revenue associated with a new discovery program, and projected land sale revenue associated with the March JPA revenue sharing agreement. However, most of these revenues significantly underperformed budgeted projections.

As part of mid-year adjustments, revenue projections were adjusted downward by $7.26M based on the results of FY 2023/24 actuals, performance during the first two quarters of FY 2024/25, updated estimates from the City’s sales tax consultants, and continued economic uncertainty for the remainder of the fiscal year. This reduction was partially offset by a $5.9M increase in transfers from Measure Z to offset public safety costs, as well as a $30.9 million American Rescue Plan Act revenue replacement adjustment and a $1.8M in Fire Mutual Aid revenue adjustment, both of which mostly netted with expenditures.

Actual revenues, excluding use of infrastructure reserve and prior year balances for encumbrances and carryovers, were above the revised budget by $5.58M, or 1.4%.

Revenues by Category

FISCAL YEAR REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$
Variance
%
Variance
Property Tax
$92.59
$92.59
$94.53
$1.94

2.1%
Sales Tax

93.84 91.93

94.93 3.00

3.3%
Cannabis Business Tax
.50
-
-
-
-
Utility Users Tax

34.94 34.94

35.28 .34

1.0%
Transient Occupancy Tax

8.71 8.71

9.11 .40

4.6%
Franchise Fees

6.91 6.91

6.30 (.61)
-8.8%
Licenses & Non-Developer Permits

11.96 11.96

10.20 (1.76)
-14.7%
Non-Development Charges for Services

12.04 12.04

12.30 .26

2.2%
Developer Fees & Charges for Services

8.46 8.46

6.52 (1.94)
-22.9%
General Fund Transfer

53.40 53.45

53.45 -
-
Measure Z Transfer

18.27 24.16

24.16 -
-
Other Revenues & Transfers In

14.84 54.60

58.55 3.9

6.7%
Use of Reserves

4.76 4.76

4.76 -
-
Total Revenues & Transfers In
$361.22
$404.51
$410.09
$5.58

1.4%
Explanation of Significant Budget Variances
Property Taxes – Property tax revenues increased by 6.4% over the prior year. The City of Riverside continued to experience substantial growth in assessed property values, as evidenced by the 5.3% increase in the 2024-25 assessment roll. This growth has translated into continued increases in the City’s property tax revenues. Additionally, property tax revenue from the successor agency (previously tied to redevelopment) grew by $1.49M (11.2%) compared to the prior year.

Sales Tax – In the second quarter, a $1.9M downward adjustment in projected revenues was made to account for continued economic uncertainties associated with the potential impact of rapidly changing federal policies. However, actuals ended 2.7% above prior year and 3.3% above revised FY 2024/25 projections, due in large part to high performing vehicle sales.

Licenses & Non-Developer Permits – Revenues came in under projections by $1.76M (14.7%) primarily due to lower than projected business license tax and animal license and permit revenue. Business license tax revenue projections were increased as part of the 2024-2026 biennial budget due to anticipated revenues from a newly implemented business discovery program; however, the higher level of revenue did not materialize.

Non-Development Charges for Services – Revenues exceeded projections by $255,084 (2.2%), primarily due to higher-than-expected revenues from various charges from the Police Department, which are partially offset by decreased revenue from fire inspections.

Developer Fees & Charges for Services – Revenues came in significantly under projections by $1.9M (22.9%) primarily due to anticipated developer fees and charges increases that were incorporated into revenue projections but did not come into effect until June 2025, compounded by a decreased volume of building permits compared to the prior year.

Other Revenues & Transfers In – Revenues exceeded projections by $3.9M (6.7%). This variance is largely due to a mix of unpredictable or volatile revenue sources and unbudgeted items. Key contributors to the increase include:
$1.7M increase associated with interest from investments. $1.23M increase in administrative civil penalties and citation revenue.

Furthermore, there are two main factors contributing to the $40 million budget adjustment in this category. On December 10, 2024, the City Council approved the allocation of all unexpended American Rescue Plan Act funds, approximately $30.9M, to Revenue Replacement – Provision of Government Services, supported by qualifying public safety expenditures, to allow the City to safely meet the obligation deadline for all unobligated funds and report all ARPA funding as fully expended well in advance of the expenditure deadline. Unobligated funds were transferred into the General Fund as an unappropriated revenue. These funds were mostly offset by expenditures for former ARPA programs that were shifted to the General Fund. Additionally, $10M was returned to the General Fund Infrastructure Reserve following Council approval of debt financing for the Museum project. Although that funding is recorded as revenue, it is a repayment to the General Fund Infrastructure Reserve.

The following table and chart present the 10-year history of General Fund revenues with the impact of General Fund restructuring and debt proceeds removed to accommodate year-over-year comparability. The following are excluded from this analysis for all fiscal years: Fire Bond property tax; Fire Mutual Aid revenue; debt proceeds; required non-operating accounting adjustments (such as adjusting investments to market value), Infrastructure Reserve adjustments, and items moved to other funds during General Fund restructuring in 2016 and 2017. 10-Year Revenue History
GENERAL FUND REVENUES – 10-YEAR HISTORY
(in millions)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Property Tax
$ 54.0
$ 57.8
$ 61.7
$ 67.4
$ 70.8
$ 73.6
$ 77.9
$ 82.8
$ 88.8
$ 94.5
Sales Tax

61.0 63.3

64.1 68.4

66.3 78.3

90.8 93.7

92.4 94.9
Utility Users Tax

27.8 28.0

27.5 28.0

29.0 30.6

32.5 35.0

32.2 35.3
General Fund Transfer

44.8 44.9

46.2 46.5

46.1 46.9

47.1 50.5

53.4 53.4
Measure Z Transfer

9.5 20.5

13.2 18.3

18.3 18.3

18.3 18.3

24.2 All Other Revenues

43.9 53.0

50.6 48.4

44.7 42.2

49.4 56.7

57.2 60.1
Total Revenues*
$ 231.5
$ 256.5
$ 270.6
$ 271.9
$ 275.2
$ 289.9
$ 316.0
$ 337.0
$ 342.4
$ 362.4
Growth over Prior Year
-2.1%

10.8%

5.5%

0.5%

1.2%

5.3%

9.0%

6.6%

1.6%

5.9%
*Excludes items that impair comparability from year-to-year, as previously described.

In this view, Property Tax, Sales Tax, Utility Users Tax, and the General Fund Transfer accounted for 74.7% of all General Fund revenues in 2025. In the past 10 years, the total of these revenue sources as a percent of total revenues has ranged from a low of 73.8% in 2018 to a high of 81.0% in 2016.

As illustrated in the chart, Property Tax has experienced strong, steady growth over the past decade, driven by increases in assessed property values. Sales Tax exhibited nominal growth until a surge in fiscal years 2021 through 2023, with revenues rising 37% over 2019 levels due to the pandemic, shifts in consumer spending, and inflationary pressures. In 2024, sales tax revenues declined by 1.4%, reflecting the economic slowdown prompted by the Federal Reserve's actions to curb inflation. Although sales tax revenue grew by 2.7% in 2025, significant uncertainties about future trends remain due to the potential lasting impacts of recently enacted federal policies.

After several years of stagnant revenue, Utility Users Tax (UUT) began increasing in 2020, showing a steady upward trend through 2022. A significant spike occurred in 2023, driven by rising natural gas prices. In 2024, natural gas prices returned to normal due to record-high production levels, leading to an oversupply in the market and a decline in revenues. In 2025, UUT increases are primarily due to higher electric consumption attributed to warmer temperatures and electric transmission revenue due to increased Southern California Edison transmission costs.

The General Fund Transfer experienced 0% growth on average until 2023, when rate increases in electric and water services offset declining consumption. In 2025, General Fund transfers experienced minimal growth. The Measure Z transfer to the General Fund was increased in 2025 by 32% to help offset increased public safety costs in the General Fund, such as Police and Fire overtime.

All Other Revenues will continue to fluctuate due to factors such as interest earnings, bad debt write-offs, and the sale of land and capital assets. The current year's increase compared to the prior year is primarily attributable to continued growth in investment interest earnings and lower bad debt write-offs that are recorded as a direct reduction to revenue.

Expenditures
The FY 2024/25 expenditure budget is comprised of the adopted budget of $361.2M, $15.06M of unexpended funds carried forward from the previous fiscal year, and $36.60M of other budget adjustments occurring during the fiscal year. Major budget adjustments posted during the fiscal year included:

Increased expenditures of approximately $25 million for previously funded ARPA programs, which are fully offset by ARPA revenue replacement transferred to the General Fund.

Increased overtime for Fire and Police Departments: $3.5M Revisions to various labor MOUs compensation and benefits package: $1.55M Cost savings measures to address a projected deficit totaling $1.26M including:

Various Parks Programs: $500,000
Police Radio Savings: $365,712
City Manager Professional Services: $300,000
Education Reimbursement: $100,000
Increased legal costs for various cases: $914,000
Decrease General Fund Transfer to the Section 115 Trust to adjust for an overpayment made in Fiscal Year 2023/24: -$794,000 Use of Infrastructure Reserves for capital project needs totaling $10.86M, including Solid Waste Loan for Solid Waste Collection Vehicles: $2.87M Northside Agriculture Innovation Center: $2.30M
Purchase of 9518 Magnolia Avenue: $2.19M
Airport Repair Loan: $2.00M
Bordwell Park Gymnasium Project: $600,000
Iowa Avenue Stormwater Facility Repairs: $490,00
Monticello Landscape Maintenance: $280,000
Cherry Bekeart Tax Credit Project: $133,750
The total adjusted budget for FY 2024/25 is $412.89M. Actual expenditures at fiscal year-end are $389.98M, before factoring in encumbrances and recommended carryovers totaling $17.35M. Encumbrances of $12.5M and project/grant carryovers of $.07M have been carried forward to FY 2025/26 in accordance with the Riverside Municipal Code. Staff is requesting Council approval of an additional $4.78M in discretionary and restricted carryovers, detailed in Appendix A of this report. If approved, total expenditure savings for FY 2024/25 will be $6.55M, or 1.6%, of the total adjusted budget.

Expenditures by Category

FISCAL YEAR EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Personnel
$241.35
$248.62
$253.65
$5.03

2.0%
CalPERS UAL – Safety

9.21 9.21

9.21 -
-
CalPERS UAL – Miscellaneous

2.18 2.18

2.18 -
-
Non-Personnel Costs

78.57 90.53

73.50 (17.03)
-18.8%
Special Projects

10.89 12.60

8.58 (4.02)
-31.9%
Minor Capital & Grants

3.71 10.70

5.04 (5.66)
-52.9%
Debt Service

29.26 29.26

29.26 -
-
Charges To/From
(20.29)
(20.39)
(22.64)
(2.25)
-11.0%
Cost Allocation Plan
(22.18)
(22.18)
(22.18)
-
-
Operating Transfers

12.00 36.05

36.40 .35

1.0%
Special Districts Fund Contribution

1.67 1.67

1.70 .03

1.8%
Convention Center Fund Contribution

3.51 3.51

3.47 (.03)
-1.1%
Entertainment Fund Contribution
.65
.65
.47
(.19)
-28.8%
Cheech Marin Center Fund Contribution

1.06 1.06
.91
(.15)
-14.2%
Parks Capital Fund
.91
.91
.91
-
-
Water GFT Escrow

8.52 8.52

8.52 -
-
Designated for Future Operations
.19
-
-
-
-
Encumbrances & Carryovers*
-
-

17.35 17.35
-
Total Expenditures & Transfers Out
$361.22
$412.89
$406.33
($6.55)
-1.6%
*Unaudited Actuals includes $12.50M in encumbrances and $.07M project/grant carryovers recorded as allowed by the Riverside Municipal Code; and $4.78M in other carryovers recommended for Council approval (refer to Appendix A).

Explanation of Significant Budget Variances
Personnel: Personnel costs are $5.03M, or 2%, higher than projected in the amended FY 2024/25 budget. Recognizing ongoing recruitment and hiring challenges, as well as natural savings, a 6% vacancy savings factor was included in the budget, freeing up funds for allocation to City priorities. Although the City ended the fiscal year with an 8% vacancy rate compared to an average of 9% annually, actual savings fell short of this projection. This is primarily attributable to unanticipated vacation and sick leave payouts due to retirements, staff departures, and leave cash outs allowed under MOU agreements, which are difficult to forecast and would otherwise be covered by vacancy savings. Additionally, overtime exceeded budget by $930,000, net of $1.82M in fire mutual aid reimbursements.

Non-Personnel: Non-personnel costs are $17.03M, or 18.8%, lower than projected in the amended FY 2024/25 budget. This is primarily due to savings in various professional services, maintenance contracts, water usage, software maintenance, and staff training. These savings will be partially offset by approximately $10.9M in encumbrances and carryovers for a total net savings of approximately $6.13M.

Special Projects: Special project costs are $4.02M, or 31.9%, lower than projected in the amended FY 2024/25 budget. Savings were experienced in various programs including but not limited to, Riverside County Animal Control, Citywide Fiscal Management accounts, Citywide Events, Citywide Employee Training, and Education Reimbursement. These savings will be partially offset by approximately $2.22M in encumbrances and carryovers for a total net savings of approximately $1.80M.

Minor Capital & Grants: Savings of $5.66M in this category is primarily attributable to unexpended funds of the Building and Structures Improvements budget in General Services and Automotive Equipment budget in Parks, Recreation & Cultural Services (PRCS). These savings will be partially offset by approximately $3.62M in encumbrances and carryovers.

Charges To/From: Charges to Departments that impact the General Fund were $2.25M, or 11.0%, above the total budget primarily attributed to additional charges to grants that offset otherwise General Fund costs.

Expenditures by Department

FISCAL YEAR DEPARTMENTAL RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
Enc. & Carryovers*
Overage/(Savings)
% Variance
Mayor
$1.00
$1.00
$0.97
$-
($0.03)
-2.7%
City Council

1.70 1.83

2.00 -

0.17 9.3%
City Manager

4.46 5.11

4.65 0.30
(0.16)
-3.2%
City Clerk

2.07 2.16

1.93 0.01
(0.22)
-10.2%
City Attorney

6.03 7.45

6.94 0.55

0.04 0.6%
Marketing and Comm

3.00 3.01

2.36 0.27
(0.38)
-12.5%
Human Resources

6.77 7.00

4.92 0.32
(1.76)
-25.1%
General Services

5.60 5.73

5.11 0.34
(0.28)
-4.8%
Finance

9.65 10.70

8.75 0.63
(1.32)
-12.3%
Innovation & Technology

14.38 16.06

13.70 1.26
(1.10)
-6.9%
Housing & Human Services

2.73 3.68

2.39 1.17
(0.12)
-3.2%
Community Development

17.87 22.22

15.78 2.55
(3.89)
-17.5%
Police
119.24
125.29
117.85

2.34 (5.10)
-4.1%
Fire

67.05 71.47

70.59 0.76
(0.12)
-0.2%
Public Works

25.72 27.94

22.04 2.07
(3.83)
-13.7%
Library

11.15 11.72

10.49 0.34
(0.89)
-7.6%
Parks, Rec, & Comm. Services

34.13 36.05

31.88 1.97
(2.20)
-6.1%
Museum

2.59 2.74

2.24 0.15
(0.35)
-12.8%
Non-Departmental

48.08 73.90

86.57 2.31

14.98 20.3%
Cost Allocation Plan
(22.18)
(22.18)
(22.18)
-
-
-
Total Expenditures & Transfers Out
$361.05
$412.89
$388.98
$17.35
($6.55)
-1.6%
* Includes $12.50M in encumbrances and $.07M project/grant carryovers recorded as allowed by the Riverside Municipal Code; and $4.78M in other carryovers recommended for Council approval (refer to Appendix A).

Explanation of Significant Budget Variances
City Council: The department exceeded personnel costs by $223,000, primarily due to staff salary adjustments related to a salary study and changes in employee demographics, such as benefit elections, which were partially offset by savings in non-personnel costs and additional charges to grant funds.

City Clerk: The department experienced $117,000 savings in professional services and $42,000 savings in personnel costs.

Marketing and Communications: The department experienced $178,000 in personnel savings due to vacancies and $71,000 savings in non-personnel costs, primarily associated with professional services. Additionally, the department charged approximately $73,000 more to other funds, which resulted in additional General Fund savings.

Human Resources: The department realized $842,000 savings in non-personnel costs including professional services, outside legal and consulting services related to labor negotiations, and a delay in purchasing a talent management system to avoid potential redundancy, as similar functions are being evaluated as part of the City’s broader Enterprise Resource Planning (ERP) system efforts. The department also experienced $353,000 savings in employee training and $211,000 savings in employee education reimbursements.

Finance: The department experienced $700,000 in personnel savings due to vacancies and $436,000 in professional services savings from various debt and treasury contracts that no longer require carryover, as ongoing funding is budgeted in FY 2025/26 to support future costs.

Community Development: The department experienced $2.6 million in personnel savings due to vacancies and $518,000 in savings for various professional services contracts.

Public Works: The department experienced $1.2 million in personnel savings due to vacancies, $850,000 in savings associated with planned citywide irrigation replacement projects, $550,000 in savings for various professional services contracts, and $473,000 in savings for construction maintenance materials.

Museum: The department experienced $240,000 in personnel savings due to vacancies and $108,000 in savings from various non personnel costs.

Non-Departmental: The $14.98M overage is primarily due to a $15.25M budget adjustment for vacancy savings, which allowed for the reallocation of funds to other spending needs. This amount was not allocated at the departmental level to avoid being perceived as a specific savings target. Excluding unanticipated vacation and sick leave payouts due to retirements, staff departures, and leave cash-outs, vacancy savings were approximately $13.38M and are reflected in departmental budget savings. Offsetting this adjustment within the Non-Departmental budget, savings were realized in several areas:
$480,000 in savings from various professional services contracts. $374,000 in savings associated with General Fund subsidies to the Convention Center Fund, Entertainment Fund, and Cheech Marin Center Funds. 10-Year Expenditure History
The following table and chart show the 10-year history of General Fund expenditures, excluding Operating Transfers. The FY 2024/25 actuals in the following table will differ from the previous charts as the actuals below do not include operating transfers of $36.6M and carryovers and encumbrances totaling $17.35M. FY 2024/25 expenditures increased by 13.1% as compared to the prior year.

GENERAL FUND EXPENDITURES – 10-YEAR HISTORY
(in millions)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Personnel Costs
$ 191.3
$ 197.0
$ 185.2
$ 193.8
$ 196.0
$ 196.0
$ 195.1
$ 213.1
$ 232.0
$ 253.6
CalPERS UAL – Safety

11.4 14.3

17.2 7.2

9.5 11.2

8.7 9.2
CalPERS UAL – Misc

6.8 8.6

9.8 3.9

4.8 5.0
-

2.2 Non-Personnel Costs

62.9 58.6

48.5 50.3

47.1 46.6

53.1 58.0

66.1 73.5
Special Projects

14.6 16.8

7.3 6.8

6.2 4.5

5.4 7.4

7.8 8.6
Minor Capital

8.0 3.9

2.9 2.1

0.8 0.4

0.3 0.7

0.2 3.6
Grants

5.5 4.1

4.9 0.4

0.2 0.8

0.1 0.3
-

1.5 Debt Service

61.8 62.2

24.3 24.5

21.6 30.2

32.8 32.9

22.7 23.1
Charges To/From
(17.2)
(16.7)
(17.4)
(19.5)
(17.2)
(20.6)
(18.6)
(19.3)
(20.7)
(22.6)
Cost Allocation Plan
(20.2)
(19.9)
(18.9)
(24.1)
(26.3)
(23.4)
(23.5)
(21.7)
(24.1)
(22.2)
Fund Subsidies

10.3 9.9

11.9 13.2

12.7 12.0

11.5 13.6
Total Expenditures
$ 306.7
$ 306.0
$ 265.3
$ 267.1
$ 267.3
$ 258.8
$ 269.9
$ 299.6
$ 304.2
$ 344.1
Growth over Prior Year

5.6%
-0.2%
-13.3%

0.7%

0.1%
-3.2%

4.3%

11.0%

1.5%

13.1%
Explanation of Significant Trend Variations
Personnel Costs: In 2018 and 2019, the Partnership Compensation Model led to maximum salary increases under MOU provisions. The 6.0% reduction in 2018 was due to balancing measures addressing the General Fund’s structural deficit and the reallocation of some personnel to Measure Z. The $18M (9.2%) increase in 2023 is attributed to a lower average annual vacancy rate as compared to the previous year, $11.6M in employee stipends, and increases in compensation and benefits. The $18.9M increase in 2024 and $21.7M increase in 2025 reflects MOU-approved salary and benefit adjustments, additional budgeted positions, continued increase in Police and Fire Overtime, and a continued decline in the average annual vacancy rate.

CalPERS UAL: CalPERS separated the Unfunded Actuarial Liability (UAL) from normal retirement costs in 2018 and established a UAL payment methodology to address unfunded retirement costs. In 2021, the City issued a Pension Obligation Bond which shifted some CalPERS UAL costs to the Debt Service category. The reduction in 2024 costs is attributable to CalPERS exceeding its investment target in 2021, resulting in lower required UAL payments for 2024. The increase in 2025 is attributed to both CalPERS’ underperforming investment targets and increased city payroll costs.

Debt Service: Through 2017, citywide activity related to outstanding Pension Obligation Bonds were passed through the General Fund for accumulation before sending the resources to the Debt Service Fund to make the annual debt payment. This intermediate step was discontinued in 2018. In 2023, the 2004 Safety Pension Obligation Bond was paid off, resulting in a reduction in debt service costs in future years.

Fund Support and All Other Expenses: The entertainment venues that are now housed in the Convention Center and Entertainment Funds were moved into the General Fund in 2015 (reflected in All Other Expenses) and later removed and established as enterprise funds in 2018. General Fund support of these funds is recorded as Fund Support for transparency. All Other Expenses further declined with restructuring that moved activities funded by restricted funds to the new Grants and Restricted Programs Fund. In 2023, All Other Expenses increased due to a $1.30M increase in Animal Control, which is a service contracted through the County of Riverside, and the resumption of the Festival of Lights following a 2-year hiatus during the pandemic. In 2025, costs increased primarily due to increased costs in the convention center and to capture a subsidy being provided to the Parks Special Capital Improvement Fund.

Personnel
Explanation of Actual Personnel Expenditures
During the fiscal year, the personnel budget was increased by approximately $7.3M, including $3.5M for Fire and Police Department overtime, $1.4M to accommodate approved MOU salary and benefit increases, and $1.8M in Fire Mutual aid which is offset by revenue.

By the end of FY 2024/25, the General Fund saw a continued improvement in its vacancy rate, decreasing from 11% at the beginning of the fiscal year to 7.8%. This reduction reflects significant progress in filling vacant positions. The Human Resources Department continues its efforts to fill vacant positions through extended job postings and, in some cases, maintained continuous postings; bolstered advertising efforts; and actively participated in hiring and career fair events.

The following chart depicts the average vacancy rate for each department in the General Fund in FY 2023/24 and FY 2024/25, as well as the General Fund overall. 10-Year Personnel Cost History
GENERAL FUND PERSONNEL COSTS – 10-YEAR HISTORY
(in millions)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Salaries
$ 117.9
$ 115.6
$ 116.7
$ 122.2
$ 124.4
$124.7
$122.3
$140.5
$150.8
$162.0
Leave Payoffs

3.4 4.0

4.7 5.5

6.1 7.0

6.2 6.7

4.1 9.8
Overtime

13.2 12.3

14.7 15.0

15.4 17.1

17.4 16.1

18.8 21.0
Insurances

19.0 19.0

19.1 20.6

19.7 18.1

21.4 21.6

24.0 25.3
Retirement

40.8 42.6

44.9 49.8

53.6 37.5

38.5 40.5

37.5 42.0
Payroll Accruals
(5.9)

0.6 0.4

0.3 1.1

0.3 0.7

0.5 1.8

1.1 Other

2.9 2.9

3.0 3.2

2.7 2.4

2.8 3.5

3.6 3.8
Total Personnel & CalPERS UAL Costs
$ 191.3
$ 197.0
$ 203.5
$ 216.6
$ 223.0
$ 207.1
$ 209.4
$ 229.3
$ 240.6
$265.0
Growth over Prior Year

7.6%

3.0%

3.3%

6.4%

3.0%
-7.1%

1.1%

9.5%

4.9%

10.1%
Explanation of Significant Trend Variations
Salaries:

In 2018 and 2019, the Partnership Compensation Model produced maximum salary increases under MOU provisions. The 2018 impact was partially offset by the shifting of some personnel to Measure Z.

In 2023, renegotiation of MOUs resulted in salary increases and employee stipends, leading to a significant growth in salary costs.

In 2025, salaries increased primarily due to the addition of 56 FTEs included in the 2024/25 budget and renegotiation of MOUs.

Leave Payoffs: The 139% increase reflects vacation and sick leave payouts resulting from retirements, staff departures, and leave cash outs allowed under MOU agreements.

Overtime: The 7.5% reduction in overtime in 2023 is attributable to a $1.57M decrease in Fire Mutual Aid overtime compared to the previous year. In 2025, overtime costs increased primarily due to an increase in overtime hours and employee compensation from labor agreements for the Police and Fire Departments.

Retirement: Retirement costs declined $16.20M in 2021 due to a lump sum paydown with the issuance of a Pension Obligation Bond (POB). The 12% increase is primarily associated with additional FTEs added in FY 2024/25 as part of the 2024-2026 Biennial Budget.

Maintaining ReservesThe City’s policy reserve level is 20%, comprised of a 15% Emergency Reserve and a 5% Contingency Reserve.At each fiscal year end, fund reserves are calculated as a percentage of the following year’s adopted budget. Since adopted appropriations typically increase from year to year, a 20% corresponding increase in reserves is required to maintain the reserve level ($200,000 for each $1M increase in appropriations). However, this annual increase in the reserve requirement is not formally incorporated into the adopted budget, due to the timing of budget adoption. Therefore, General Fund savings is typically needed at the end of each fiscal year to ensure that the reserve level is maintained. The required increase in the 20% General Fund policy reserve based on the adopted FY 2025/26 budget is $4.19 million.The FY 2025/26 adopted budget totals $382.16 million, requiring 20% reserves of $76.43 million.Maintaining ReservesThe City’s policy reserve level is 20%, comprised of a 15% Emergency Reserve and a 5% Contingency Reserve.At each fiscal year end, fund reserves are calculated as a percentage of the following year’s adopted budget. Since adopted appropriations typically increase from year to year, a 20% corresponding increase in reserves is required to maintain the reserve level ($200,000 for each $1M increase in appropriations). However, this annual increase in the reserve requirement is not formally incorporated into the adopted budget, due to the timing of budget adoption. Therefore, General Fund savings is typically needed at the end of each fiscal year to ensure that the reserve level is maintained. The required increase in the 20% General Fund policy reserve based on the adopted FY 2025/26 budget is $4.19 million.The FY 2025/26 adopted budget totals $382.16 million, requiring 20% reserves of $76.43 million.Fund Reserves Maintaining Reserves
The City’s policy reserve level is 20%, comprised of a 15% Emergency Reserve and a 5% Contingency Reserve.

At each fiscal year end, fund reserves are calculated as a percentage of the following year’s adopted budget. Since adopted appropriations typically increase from year to year, a 20% corresponding increase in reserves is required to maintain the reserve level ($200,000 for each $1M increase in appropriations). However, this annual increase in the reserve requirement is not formally incorporated into the adopted budget, due to the timing of budget adoption. Therefore, General Fund savings is typically needed at the end of each fiscal year to ensure that the reserve level is maintained.

The required increase in the 20% General Fund policy reserve based on the adopted FY 2025/26 budget is $4.19 million.

The FY 2025/26 adopted budget totals $382.16 million, requiring 20% reserves of $76.43 million.

Maintaining Reserves
The City’s policy reserve level is 20%, comprised of a 15% Emergency Reserve and a 5% Contingency Reserve.

At each fiscal year end, fund reserves are calculated as a percentage of the following year’s adopted budget. Since adopted appropriations typically increase from year to year, a 20% corresponding increase in reserves is required to maintain the reserve level ($200,000 for each $1M increase in appropriations). However, this annual increase in the reserve requirement is not formally incorporated into the adopted budget, due to the timing of budget adoption. Therefore, General Fund savings is typically needed at the end of each fiscal year to ensure that the reserve level is maintained.

The required increase in the 20% General Fund policy reserve based on the adopted FY 2025/26 budget is $4.19 million.

The FY 2025/26 adopted budget totals $382.16 million, requiring 20% reserves of $76.43 million.

The beginning fund balance includes all amounts available to spend at the end of the previous fiscal year and 20% policy reserves. Current year activity, including new encumbrance and carryover balances, required accounting changes in other fund reserves, and recomputed policy reserves are subtracted or added to the beginning fund balance to arrive at the projected ending available reserve balance. This amount is available for allocation per Council direction.

FUND BALANCE
(in millions)
Beginning Fund Balance (Audited)
$ 145.77
FY 2024/25 Activity
Revenues
$ 405.33
Expenditures
(380.64)
Encumbrances/Projects/Grants
(12.57)
Restricted Carryovers*
(.74)
Discretionary Carryovers*
(4.04)
Other Adjustments
(3.55)
Subtotal
$ 3.79
Policy Reserves
15% Emergency Reserve
$ (57.32)
5% Contingency Reserve
(19.11)
Total Policy Reserves
$ (76.43)
Other Reserves
Water GFT Escrow
($16.63)
Infrastructure Reserve
(11.71)
Technology Reserve
(5.00)
Section 115 Trust Set-Aside
(30.24)
Total Other Reserves
$ (63.27)
Projected Unassigned Reserves
$ (9.56)
*Subject to Council approval – refer to Appendix A
General Fund Reserves
The General Fund is projected to end FY 2024/25 with a net unassigned reserve of $9.56M, after encumbrances, carryovers, required transfers to reserves, and various other prior year and required governmental accounting adjustments. Projected General Fund Reserves are comprised of the following:

GENERAL FUND RESERVES (UNAUDITED)
(in millions)
Amount
Subtotal
Nonspendable
Inventories, prepaids, deposits
$ .91
Advances and Notes

5.66 Land & Improvements held for resale
.17
$ 6.74
Committed
20% Policy Reserves

76.43 Reserved for Section 115 Trust Contributions

30.24 Infrastructure Reserve

11.71 Technology Reserve

5.00 Water GFT Escrow

16.63 Section 115 Trust

76.85 Other required reserves

6.93 $ 223.79
Assigned
Encumbrances/Projects/Grants

12.50 Carryovers*

4.84 Special Deposit Funds

1.67 $ 19.01
Unassigned
Available Reserves

9.56 $ 9.56
Total General Fund Reserves
$ 259.10
*Subject to Council approval – refer to Appendix A
The General Fund’s Unassigned fund balance is projected to be $9.56M, pending completion of the City’s financial audit. Staff recommend applying the audited unassigned fund balance toward addressing potential deficits in the next budget and will present a plan for the use of these funds as part of the FY 2026-2028 Biennial Budget development process.

Section 115 Trust
Section 115 Trust assets are accounted for in a separate fund and are legally restricted for the payment of pension-related obligations. This reserve will help the City smooth fluctuations in the required annual CalPERS UAL payments and minimize the fiscal impact of significant increases that could disrupt the City’s ability to maintain service levels and fund ongoing operations. As of 6/30/2025, the unaudited reserve balance is $76.85M.

General Fund Outlook
Although the future remains uncertain and potential risks, including the effects of rapidly changing federal policies, continue to present challenges to the City’s financial outlook in the current year and future years, overall General Fund revenues grew in FY 2024/25. In the short term, the City must prepare for potential impacts in both sales and property tax revenues as slower economic growth and rising unemployment may present challenges. While these factors were considered in the FY 2025/26 revenue projections, the extent of their impact on the City’s outyear revenues remains uncertain. Additionally, in the long term, the General Fund faces several financial challenges that could pose risks to its fiscal health:

Water General Fund Transfer: The Water General Fund Transfer (GFT) accounts for approximately 2.5% of budgeted FY 2025/26 General Fund revenues. On September 19, 2023, the City Council directed that all future Water GFT collections be placed in a reserve account pending the outcome of litigation. The potential revenue loss ranges from $9.18M to $12.05M annually over the next five years, or $52.84M over the next five years.

Deferred Maintenance and Infrastructure: Following several years of structural deficits in the General Fund, the City struggled to allocate funding toward capital needs. Historically, capital investments have largely been funded through debt financing, such as the issuance of 2008 Certificates of Participation for street improvements, and Riverside Renaissance Tax Allocation Bonds for new facilities and capital improvements. However, debt financing does not provide a sustainable method to fund annual and ongoing needs for infrastructure repairs and maintenance and the added debt service reduces the amount of funding available for ongoing deferred maintenance. Although the City has made additional deferred maintenance and infrastructure investments through Measure Z and American Rescue Plan Act funds, significant ongoing needs remain to support these activities in the future.

Rising Pension Costs: The financial markets influenced the CalPERS retirement fund, which yielded a 11.6% return for the fiscal year ended June 30, 2025, exceeding the 6.8% forecasted rate. While this marks continued improvement, pension costs are expected to continue to rise due to increased payroll and CalPERS’ methodology of smoothing investment gains over several years to minimize significant year-to-year fluctuations. Additionally, future returns below expectations could further increase unfunded liabilities and required annual payments.

Labor Costs: MOU contracts were updated in 2025 and have continued to result in increased salary and benefits costs. Balancing the competing needs of providing competitive salary increases to recruit and retain highly qualified employees and maintaining long-term financial sustainability will remain an ongoing challenge for the City.

Measure Z Funds
The financial reporting of Measure Z focuses on a Spending Plan format, which is a different presentation method than the financial reporting of other funds. The spending plan methodology provides a transparent and accessible illustration of Measure Z activity without the “noise” of formal accounting requirements and debt-funded capital projects:

Measure Z activity is tracked in two funds as required by accounting rules: the Measure Z operating fund and the Measure Z capital fund. The capital fund includes all major capital activity, while the operating fund includes all other activity. Fund resources are transferred from the operating fund to the capital fund as needed to fund approved capital projects. These interfund transfers have a net zero impact and are not reported in the Spending Plan.

Some Measure Z capital items are funded by debt, such as Library and Museum construction, Fire vehicle replacement, and Police helicopters. Measure Z’s current resources are used to pay the related annual debt obligations, and those debt payments are reported in the Spending Plan. The spending of debt proceeds on capital projects does not represent a use of Measure Z tax revenue, so these expenditures are not reported in the Spending Plan.

Revenue
MEASURE Z REVENUES SINCE 2018
(in millions)
2018
2019
2020
2021
2022
2023
2024
2025
Transaction & Use Tax (TUT)
$ 56.20
$ 62.29
$ 62.38
$ 72.00
$ 83.16
$ 84.02
$ 81.90
$ 81.33
Interest Revenue

0.04 0.53

0.76 0.65

0.75 1.82

2.30 2.35
Total Revenues
$ 56.24
$ 62.82
$ 63.14
$ 72.65
$ 83.91
$ 85.84
$ 84.20
$ 83.67
TUT Growth over Prior Year
345.9%

10.8%

0.2%

15.4%

15.5%

1.0%
(2.5%)
(.7%)
The adopted FY 2024/25 budget projected revenues of $84.52M, which includes $83.72M for transaction and use tax. Due to a decline in consumer spending and updated projections from the City’s sales tax consultant, HdL, transaction and use tax revenue projections were reduced to $80.51M in the second quarter report. However, actual revenues exceeded budgeted expectations by $0.82M (1%) for transaction and use tax and $1.55M (193%) for interest revenue.

Since its approval in 2017, the Measure Z Transaction and Use Tax (TUT) has grown steadily, peaking at $84.02M in FY 2022/23. In FY 2023/24, revenues declined 2.5% to $81.90M from the prior fiscal year, marking the first revenue drop since Measure Z's inception. In FY 2024/25, revenues continued to decline, falling by 0.7% to $81.33M. Previous years’ significant growth was driven by post-pandemic shifts in consumer spending patterns and rising inflation.

The following table reports the revenue history for Measure Z since 2018:

Expenditures
Measure Z expenditures fluctuate significantly due to the timing of long-term capital initiatives and projects. This creates an accumulation of unspent resources and carryover balances in spending categories for those projects. Actual expenditures at fiscal year-end are $100.9M before encumbrances and carryovers of $44.44M. Encumbrances of $22.1M and capital carryovers of $16.5M have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $5.83M in discretionary carryovers, detailed in Appendix A of this report.

For inception-to-date expenditure reporting by funded item, refer to the Measure Z Spending Plan in Appendix B of this report.

Unallocated Fund Reserves
Actual Measure Z revenues of $83.67M and expenditures of $100.9M produced a net decrease of fund reserves of $17.23M. The projected available fund balance (unaudited) is anticipated to total $44.05M net of encumbrances and recommended carryovers totaling $44.44M. These funds are intended to be drawn down over the next several years. Staff recommend that available reserves remain intact pending the completion of the FY 2026-2028 Biennial Budget.

MEASURE Z ACTIVITY AND PROJECTED FUND RESERVES
(in millions)
2019
2020
2021
2022
2023
2024
2025
Revenue
$ 62.82
$ 63.14
$ 72.65
$ 83.91
$ 85.84
$ 84.20
$ 83.67
Expenditures
(40.99)
(49.57)
(50.85)
(67.45)
(69.61)
(86.10)
(100.90)
Encumbrances & Carryovers
-
-
-
-
-
(44.44)
Net Change in Fund Balance
$ 21.83
$ 13.57
$ 21.80
$16.46
$ 16.24
$ (1.90)
$ (61.67)
Beginning Available Fund Balance
$ 22.73
$ 39.56
$ 53.14
$ 74.94
$ 91.40
$ 107.63
$ 105.72
Net Change in Fund Balance

21.83 13.57

21.80 16.46

16.24 (1.90)
(61.67)
Fund Balance Reserve Policy
(5.00)
-
-
-
-
-
-
Ending Available Fund Balance
$ 39.56
$ 53.13
$ 74.94
$ 91.40
$ 107.63
$ 105.72
$ 44.05
Permanent Policy Reserve Set-Aside: $5M
The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

Electric Fund
The FY 2024/25 adopted operating budget for the Electric Fund included a programmed $9.4M operating gain, excluding bond proceeds and capital project allocations. Unaudited fiscal year end results present an operating surplus of $48.01M including encumbrances and carryovers of $18.40M.

The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include encumbrances and carryovers to reflect budgetary savings.

Revenue
Total revenues at fiscal year-end are $38.60M (8.5%) greater than revenue projections in the total budget.

FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Retail Sales
$ 379.56
$ 379.56
$ 395.61
$16.05

4.2%
Transmission Revenue

26.27 26.27

32.75 6.48

24.7%
Other Operating Revenue

26.17 26.17

33.95 7.78

29.7%
Miscellaneous Revenue

16.76 16.76

21.16 4.40

26.2%
Capital Contributions

4.85 4.85

8.75 3.90

80.4%
Total Revenues
$ 453.62
$ 453.62
$ 492.22
$38.60

8.5%
Explanation of Significant Budget Variances
Retail Sales: Electric revenues were $16.05M above projections, primarily due to increased electric consumption from warmer temperatures throughout the fiscal year and a $11.00M year-end accounts receivable adjustment reflecting implementation of a more precise unbilled accounts receivable methodology. While residential revenues exceeded budget expectations, they were partially offset by declines in commercial categories.

Transmission Revenue Requirements: Revenue exceeded projections by $6.48M, or 24.7%, due to a higher rate reflective of an increase in Southern California Edison transmission costs for operating and maintaining the transmission system.

Other Operating Revenue: Revenues exceeded projections by $7.78M, or 29.7%, primarily driven by increased outside sales of excess resource adequacy, the capacity commitments the City procures to meet state reliability requirements.

Miscellaneous Revenue: Revenue exceeded projections by $4.40M, or 26.2%, primarily driven by higher than anticipated interest earnings on investments and bond proceeds.

Capital Contributions: Revenue exceeded projections by $3.90M, or 80.4%, primarily due to increased developer activity (construction) and donated underground electrical conduit, donated street lighting, and donated land rights and easements. Revenue from the latter is not budgeted, as it is highly unpredictable.

Expenditures
The FY 2024/25 total expenditure budget for the Electric Fund is $465.26M, which includes the adopted budget of $444.25M, $19.75M in unexpended funds carried forward from the previous fiscal year, and other budget adjustments made during the normal course of business. The table below shows year-end savings of $21.06M after accounting for $18.40M in encumbrances and carryovers.

FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Personnel
$ 76.90
$ 76.90

70.04 $ (6.86)
-8.9%
Power Supply
237.07
237.14
225.62
(11.51)
-4.9%
Operating & Maintenance

25.70 46.23

31.14 (15.10)
-32.7%
Debt Service

59.69 59.78

53.79 (5.98)
-10.0%
General Fund Transfer

44.88 45.22

45.22 -

0.0%
Carryovers & Encumbrances*
-
-

18.40 18.40

0.0%
Total Expenditures & Transfers Out
$ 444.25
$ 465.26
$ 444.21
$ (21.06)
-4.5%
*Includes $9.64M in encumbrances as allowed by the Riverside Municipal Code; and $8.76M in other carryovers recommended for Council approval (refer to Appendix A Explanation of Significant Budget Variances
Personnel: Personnel costs were $6.86M, or 8.9%, less than total budget due to a high average annual vacancy rate of 11% during the fiscal year. At June 30, 2025, the Electric Fund had 56 vacant positions.

Power Supply: Power supply costs were $11.51M, or 4.9%, less than total budget. Lower transmission and capacity costs were partially offset by higher energy charges.

Operating & Maintenance: Operating and maintenance costs were $15.1M, or 32.7%, below total budget, primarily due to carryover of professional services, building maintenance, heavy vehicle purchases, and software costs , which will be utilized on an 'as-needed' basis or as technology projects are implemented.

Debt Service: Savings of $5.98M, or 10.0%, were primarily due to the planned delay of issuing the 2024A Electric Revenue Bonds, which resulted in lower interest and related debt service costs for the year.

Actual operating expenditures at fiscal year-end totaled $425.81M before encumbrances and carryovers of $18.40M. Encumbrances of $9.64M have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $8.76M in operating carryovers, detailed in Appendix A of this report. If the carryovers are approved, the operating expenditure savings for FY 2024/25 will be $21.06M, or 4.5%, of the total budget.

Capital expenditures totaling $355.43M were recorded during the fiscal year; this amount includes $90.66M of encumbrances and $209.85M of unexpended capital project funds that have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Fund Reserves
The fund reserve level at fiscal year-end is expected to be within established policy levels; final results are pending the completion of the financial audit.

Water Fund
The FY 2024/25 adopted operating budget for the Water Fund included a projected operating gain of $3.0M. Unaudited fiscal year end results present a budgetary operating gain of $6.81M after encumbrances and carryovers of $9.84M.

The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds, and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include encumbrances and carryovers to reflect budgetary savings.

Revenue
Total revenues at fiscal year-end are $6.90M (7%) greater than revenue projections in the total budget.

FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Retail Sales
$ 81.59
$ 81.59
$ 89.07
$ 7.49

9.17%
Conveyance/Wholesale

5.92 5.92

3.73 (2.91)
-37.04%
Other Operating Revenue

2.87 2.87

3.08 0.21

7.3%
Miscellaneous Revenue

8.48 8.75

10.14 1.39

15.9%
Total Revenues
$ 98.85
$ 99.12
$106.02
$6.90

7.0%
Explanation of Significant Budget Variances
Retail Sales: Water revenues were $7.49M, or 9.2% above projections primarily due to increased water consumption from warmer temperatures and below average precipitation. This drove increases in both residential and non-residential consumption compared to budget forecasts. Additionally, a $3.0M year-end accounts receivable adjustment reflected implementation of a more precise unbilled accounts receivable methodology.

Conveyance/Wholesale: Revenues fell short of projections by $2.91M, or 37%, entirely attributable to reduced demand from external entities in the wholesale water market.

Miscellaneous Revenue: Revenue exceeded projections by $1.39M, or 15.9%, due to increased settlement recovery, bond interest, and increased developer activity (construction), partially offset by decreased property rental income.

Expenditures
The FY 2024/25 total expenditure budget for the Water Fund is $99.21M, which includes the adopted budget of $95.85M, $7.08M of unexpended funds carried forward from the previous fiscal year, and other budget adjustments made during the normal course of business. The following table shows budgetary savings of $3.70M after $9.84M of encumbrances and carryovers.

FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Personnel
$26.51
$26.51
$24.77
($1.71)
-6.6%
System Operations

35.50 42.82

34.51 (8.30)
-19.4%
Debt Service

25.33 25.36

21.86 (3.50)
-13.8%
General Fund Transfer

8.52 8.23

8.23 -

0.0%
Carryovers & Encumbrances*
-
-

9.84 9.84

0.0%
Total Expenditures & Transfers Out
$95.85
$102.9
$99.21
$(3.70)
-3.6%
*Includes $2.94M in encumbrances and $.07M in grant carryovers recorded as allowed by the Riverside Municipal Code, and $6.82M in other carryovers recommended for Council approval (refer to Appendix A).

Explanation of Significant Budget Variances
Personnel: Personnel costs were $1.7M, or 6.6%, less than total budget due to an average annual vacancy rate of 5.4% during the fiscal year. On June 30, 2025, the Water Fund had 14 vacant positions.

System Operations: Savings of $8.30M, or 19.4%, were realized in the budgets for professional services and software maintenance, which are used on an 'as-needed' basis. These savings will be partially offset by carryovers and encumbrances, which generally fall within this expenditure category but are reported separately in the table above.

Debt Service: Savings of $3.5M, or 13.8%, were primarily attributable to debt-related costs coming in below budget, and lower costs associated with the Hillwood Enterprise Project.

Actual operating expenditures at fiscal year-end are $89.37M before encumbrances and carryovers of $9.84M. Encumbrances of $2.9M and grant carryovers of $.07M have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $6.82M in operating carryovers, detailed in Appendix A of this report. If the carryovers are approved, operating expenditure savings for FY 2024/25 will be $3.70M, or 3.6% of the total budget.

Capital expenditures totaling $77.56M were recorded during the fiscal year; this amount includes $13.78M of encumbrances and $59.13M of unexpended capital project funds that have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Fund Reserves
The Water Fund is expected to end the fiscal year with reserves within required policy levels; final results are pending the completion of the financial audit.

Refuse Fund
The adopted operating budget for the Refuse Fund projected a draw on fund reserves of $3.1M, primarily due to rising disposal costs, compliance with state mandates, and operational challenges related to fleet maintenance and staffing shortages. Unaudited fiscal year end results present an operating deficit of $9.68M, including encumbrances and carryovers of $6.84M. This deficit primarily reflects a budgetary timing variance related to solid waste vehicle purchases. Revenue to fund these purchases was recognized in FY 2022/23 and allocated to fund reserves; however, the actual expenditures for vehicle purchases (initiated in FY2023/24) will be drawn upon receipt of the vehicles, which has been delayed due to extended supplier timelines. Excluding this impact, the Refuse Fund's adjusted operating result is near break-even.

The Total Budget in the following chart and tables includes the carryover of the previous fiscal year’s unexpended funds totaling $9.48M and adjustments to revenue and expenditure budgets made during the normal course of business. Actual expenditures include $6.84M in encumbrances and carryovers.

Revenue
Total revenue at fiscal year-end is $3.64M, or 10.2%, greater than revenue projections in the total budget.

FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
City Service
$ 18.77
$ 18.77
$ 19.73
$ 0.96

5.1%
Contracted Service

7.04 7.04

7.68 0.64

9.1%
Administrative Fees

7.40 7.40

8.74 1.34

18.1%
Street Sweeping Fines

1.46 1.46

1.29 (0.17)
-11.5%
Miscellaneous Revenue

0.24 0.06

0.93 0.87
1,382%
Charges To/From Others
-

1.10 1.10
-

0.0%
Total Revenues
$ 34.90
$ 35.83
$39.47
$3.64

10.2%
Explanation of Significant Budget Variances
City Services: Revenues exceeded projections by $961,000, or 5.12%, primarily due to increased curbside residential, automated waste, and multi-family unit city service revenue.

Contracted Services: Revenues exceeded projections by $640,000, or 9.1%, primarily due to increased service levels provided by the City’s private hauler.

Street Sweeping Fines: Revenues were $169,000 below budget primarily due to delays in new street sweeper deliveries that have affected operational efficiency and fine collection.

Miscellaneous Revenue: This category included interest income that exceeded projection by approximately $367,000 and refunds and reimbursement of $185,000 for fuel rebates.

Expenditures
The FY 2024/25 total expenditure budget for the Refuse Fund is $48.88M, which includes the adopted budget of $38.04M, $9.48M of unexpended funds carried forward from the previous fiscal year, and budget adjustments made during the normal course of business. The following table shows a net budgetary overage of $0.27M after $6.84M in encumbrances and carryovers. Further, on September 17, 2024, the City Council approved a $2.87 million loan from the General Fund Infrastructure Reserves to the Refuse Waste Fund to purchase additional solid waste collection vehicles that is expected to be repaid by 2028.

FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Personnel
$ 7.80
$ 7.20
$ 6.04
$ (1.16)
-16.1%
Non-Personnel

15.75 14.33

14.24 (0.08)
-0.6%
Special Projects

7.47 9.83

10.01 0.18

1.9%
Minor Capital & Equipment

1.57 12.08

6.86 (5.22)
-43.2%
Debt Service

0.62 0.62

0.69 0.06

10.1%
Charges To/From Others

4.82 4.82

4.47 (0.36)
-7.4%
Carryovers & Encumbrances*
-
-

6.84 6.84

0.0%
Total Expenditures & Transfers Out
$ 38.04
$ 48.88
$49.15
$0.27

0.5%
*Includes $6.76M in encumbrances recorded as allowed by the Riverside Municipal Code, and $.08M in other carryovers recommended for Council approval (refer to Appendix A).

Explanation of Significant Budget Variances
Personnel: Personnel costs were $1.16M, or 16.1%, below total budget due to personnel vacancies, which averaged 25% throughout the fiscal year. On June 30, 2025, the Refuse Fund had 15 vacant positions.

Minor Capital & Equipment: Expenditures were $5.22M, or 43.2% lower than the total budgeted, primarily due to delays in replacement of solid waste vehicles. Associated costs are encumbered and will be carried forward to FY2025/26.

Actual operating expenditures at fiscal year-end are $42.3M before encumbrances and carryovers. Encumbrances and carryovers of $6.76M have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code. Staff is requesting Council approval of an additional $78,525.64 in operating carryovers, detailed in Appendix A of this report.

Capital expenditures totaling $1.63M were recorded during the fiscal year; this amount includes $0.07M of encumbrances and $1.19M of unexpended capital project funds that have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Fund Reserves
The Refuse Fund is expected to end the fiscal year with positive reserves levels; final results are pending the completion of the financial audit.

Sewer Fund
The adopted budget for the Sewer Fund projected a net operating gain of approximately $9.5M to support planned capital projects. Unaudited fiscal year end results present a budgetary operating surplus of $25.76M after encumbrances and carryovers.

The Total Budget in the following chart and tables includes $2.5M in unexpended funds carried forward from the previous fiscal year and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include $2.55M in encumbrances to reflect budgetary savings.

Revenue
Total operating revenues at fiscal year-end are $3.02M, or 3.3%, higher than revenue projections in the adopted budget.

FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$ Variance
% Variance
Residential Rate Revenue
$ 46.54
$ 46.54
$ 47.94
$ 1.40

3.0%
Commercial Rate Revenue

11.49 11.49

12.51 1.02

8.9%
Industrial Rate Revenue

4.16 4.16

3.78 (0.39)
-9.3%
Community Service Districts

4.09 4.09

5.51 1.43

34.9%
Connection Fees

3.88 3.88

1.36 (2.51)
-64.8%
Other Fees & Charges

0.73 0.73

0.93 0.19

26.5%
Miscellaneous Revenue

11.74 21.78

23.65 1.87

8.6%
Total Revenues
$ 82.64
$ 92.67
$95.69
$3.02

3.3%
Explanation of Significant Budget Variances
Residential Rate Revenue: Revenue from residential services exceeded projections by $1.4M, or 3.0%, due to an increase in the total number of customers paying sewer service charges.

Community Service Districts: Revenue from Wastewater Service Contracts with the Rubidoux, Jurupa, and Edgemont Community Service areas exceeded projections by $1.43M, representing a 34.9% increase. This increase was primarily driven by surcharges on higher volumes of wastewater processed at the Regional Water Quality Control Plant.

Connection Fees: Revenue from connection fees were $2.51M, or 64.8%, below budget primarily due to a slowdown in new development and sewer hookups.

Miscellaneous Revenue: This category exceeded projections by $1.87M, or 8.6%, primarily due to higher revenue from other agencies and interest from investments.

Expenditures
The FY 2024/25 total expenditure budget for the Sewer Fund is $76.76M, which includes the adopted budget of $73.17M, $2.5M of unexpended funds carried forward from the previous fiscal year, and budget adjustments made during the normal course of business. The following table shows a net budgetary savings of $6.83M after $2.55M in encumbrances and carryovers.

FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals*
$ Variance
% Variance
Personnel
$ 16.84
$ 17.11
$ 14.39
$ (2.71)
-15.9%
Non-Personnel

21.03 24.38

20.93 (3.45)
-14.1%
Special Projects

2.39 2.39

2.24 (0.15)
-6.1%
Minor Capital & Equipment

1.17 1.15

0.91 (0.24)
-20.7%
Debt Service

28.10 28.10

25.85 (2.25)
-8.0%
Charges To/From Others

3.63 3.63

3.04 (0.59)
-16.3%
Carryovers & Encumbrances
-
-

2.55 2.55

0.0%
Total Expenditures & Transfers Out
$73.17
$76.76
$69.93
$(6.83)
-8.9%
*Includes $2.06M in encumbrances recorded as allowed by the Riverside Municipal Code, and $0.49M in other carryovers recommended for Council approval (refer to Appendix A).

Explanation of Significant Budget Variances
Personnel: Personnel costs were $2.71M, or 15.9%, less than total budget due an average annual vacancy rate of 19% during the fiscal year. On June 30, 2025, the Sewer Fund had 18 vacant positions.

Non-Personnel: Non-personnel costs were $3.45M, or 14.1% less than budget, primarily due to savings from professional and legal services and chemical supplies. However, most of this amount will be carried over into the next fiscal year.

Debt Service: Savings of $2.25M, or 8.0%, were primarily due to non-cash debt-related accounting adjustments that spread certain financing costs over the life of the debt.

Capital expenditures totaling $70.46M were recorded during the fiscal year; this amount includes $20.28M of encumbrances and $26.90M of unexpended capital project funds that have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Actual operating expenditures at fiscal year-end are $67.38M before encumbrances and carryovers of $2.06M. Staff is requesting Council approval of an additional $488,813.28 in operating carryovers, detailed in Appendix A of this report.

Fund Reserves
The Sewer Fund is expected to end the fiscal year with reserves within required policy levels; final results are pending the completion of the financial audit.

Public Parking Fund
The FY 2024/25 adopted operating budget for the Public Parking Fund included a projected $1.0M net gain. Unaudited fiscal year end results present a budgetary operating surplus of $3.16M after encumbrances of $250,000.

The Total Budget in the following chart includes the carryover of $212,000 in unexpended funds carried forward from the previous fiscal year and adjustments to the revenue and expenditure budgets made during the normal course of business. Actual expenditures include encumbrances to reflect budgetary savings.

Revenue
On April 18, 2023, the City Council approved a new Parking Rate and Hour Schedule effective July 1, 2023. These adjustments, along with other related expenditure adjustments, were incorporated into the adopted budget for FY 2024/25.

Total operating revenues at fiscal year-end are $1.15M or 11.1%, higher than revenue projections. The downtown parking operation has continued to experience a significant turnaround in utilization due to the implementation of the Parking Your Way program. This program includes more accessible free parking, new parking rates, expanded hours, new monthly parking programs, the Park Riverside app, and the installation of Parking Access Revenue Control Systems (PARCS) in garages.

FISCAL YEAR OPERATING REVENUE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals
$
Variance
% Variance
User Fees
$9.43
$9.43
$10.25
$0.83

8.8%
Miscellaneous Revenue

1.00 1.00

1.33 0.32

32.2%
Total Revenues
$10.43
$10.43
$11.58
$1.15

11.0%
Explanation of Significant Budget Variances
User Fees: Parking revenues exceeded projections by $0.83M, or 8.8%, primarily due to increases in parking garage revenue and parking fines.

Miscellaneous Revenue: Revenues exceeded projections by $0.32M, or 32.2%, primarily driven by increased revenue from leased office space in Garage 6.

Expenditures
The FY 2024/25 total expenditure budget for the Public Parking Fund is $10.20M, which includes the adopted budget of $9.44M, $212,000 of unexpended funds carried forward from the previous fiscal year, and budget adjustments made during the normal course of business. The following table shows budgetary savings of $1.77M after $250,000 of encumbrances.

FISCAL YEAR OPERATING EXPENDITURE RESULTS
(in millions)
Adopted Budget
Total Budget
Unaudited Actuals*
$ Variance
% Variance
Personnel
$1.88
$1.88
$1.74
($0.14)
-7.2%
Non-Personnel

6.03 6.42

5.00 (1.43)
-22.2%
Minor Capital & Equipment

0.11 0.11

0.11 0.00

0.1%
Debt Service

1.76 2.04

1.61 (0.43)
-21.0%
Charges To/From Others
(0.34)
(0.25)
(0.28)
(0.03)

13.0%
Carryovers & Encumbrances
-
-

0.25 0.25

0.0%
Total Expenditures & Transfers Out
$9.44
$10.20
$8.42
($1.77)
-17.4%
*Includes $0.25M in encumbrances recorded as allowed by the Riverside Municipal Code.

Explanation of Significant Budget Variances
Non-Personnel: Expenditures were $1.43M, or 22.2%, below budget, primarily due to $1.07M in savings from professional services that were underutilized (budgeted on an 'as-needed' basis). Encumbrances carried forward to FY 2025/26 partially offset this savings.

Actual operating expenditures at fiscal year-end are $8.42M after $250,000 in encumbrances, which have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Capital expenditures totaling $3.7MM were recorded during the fiscal year; this amount includes $219,000 of encumbrances and $2.66M of unexpended capital project funds that have been carried forward to FY 2025/26 as provided for in the Riverside Municipal Code.

Fund Reserves
The Parking Fund is expected to end the fiscal year with positive reserves levels; final results are pending the completion of the financial audit.

Appendix A – Carryover Recommendations
Restricted Carryovers represent appropriations of funding designated for a specific use per a third-party agreement, including donations, endowments, and grant matches.

Discretionary Carryovers include amounts appropriated for a specific purpose in previous periods, but unexpended due to timing or for other reasons.

CARRYOVER SUMMARY BY FUND
Restricted
Discretionary
Total
General Fund
$736,735.15
$4,039,261.96
$4,775,997.11
Measure Z Fund
-
5,825,526.98
5,825,526.98
Grants and Restricted Programs Fund
9,294,980.76
-
9,294,980.76
Gas Tax Fund
-
153,088.89
153,088.89
Housing Authority Fund
1,209,546.98
-
1,209,546.98
Special Districts Fund
445,676.18
-
445,676.18
Riverwalk Landscape Maintenance District Fund
-
333,734.46
333,734.46
Storm Drain Fund
-
140,030.30
140,030.30
Regional Park Special Capital Fund
-
50,161.49
50,161.49
Measure A Fund
-
700,022.51
700,022.51
Redevelopment Successor Agency 2007 Bonds
550,498.23
-
550,498.23
Electric Fund
-
8,757,800.55
8,757,800.55
Electric Public Benefits Programs Fund
-
2,590,030.00
2,590,030.00
Water Fund
-
6,823,366.34
6,823,366.34
Water Conservation Fund
-
1,199,439.00
1,199,439.00
Refuse Fund
78,525.64
-
78,525.64
Sewer Fund
-
488,813.28
488,813.28
Entertainment Fund
-
1,115,721.40
1,115,721.40
Cheech Marin Fund
-
100,000.00
100,000.00
Central Stores Fund
-
59,481.30
59,481.30
CFD 90-1-Highlander Fund
191,816.00
-
191,816.00
Total Recommended Carryovers
$12,507,778.94
$32,376,478.46
$44,884,257.40
101 – GENERAL FUND
Department
Description
Amount
Restricted
Cmmty & Econ Dev
SB-1186 Certified Access Specialist Training
$628,408.77
Housing & Hum Svcs
Donations for Hulen Pet Shelter

14.99 Museum
Endowment Fund for Botany Exhibitions
67,401.49
Police
Donations for K-9s
2,274.73
Police
Evidence Trust Funds - Renovation of Police Facilities
38,635.17
Total Restricted
$736,735.15
Discretionary
Cmmty & Econ Dev
Magnolia Specific Plan
$30,000.00
Fire
Clothing/ Linen/Safety Supplies - Turnout Gear
55,693.39
Fire
Hazmat Team Required Annual Physicals
8,034.38
General Services
Annual Deferred Maintenance
160,791.00
Housing & Hum Svcs
Access Center Remodel Furniture Fixtures Equipment
360,049.99
Housing & Hum Svcs
Senior Supplemental Rental Assistance
632,167.92
Innov & Tech
Citywide Security Cameras
21,817.42
Innov & Tech
Emergency Outage Staff Augmentation Services
32,708.99
Finance
Arlington BID Improvement Funding & Public Notice Printing Costs 100,000.00
Finance
Payment Streamlining
51,000.00
Finance
Treasury Payment Processing Assessment
100,000.00
Parks & Recreation
Low Income Mobile Home Repair Program
35,516.28
Parks & Recreation
Sport Parks Landscape Maintenance
245,869.24
Parks & Recreation
Work Trucks for Parks Maintenance
155,000.00
Parks & Recreation
Childcare Support
62,366.35
Police
Land Purchase
1,895,000.00
Public Works
Public Works Vehicles & Equipment
93,247.00
Total Discretionary
$4,039,261.96
Total Carryover Recommendations – General Fund
$4,775,997.11
110 - MEASURE Z
Department
Spending Item & Description
Amount
Discretionary
Fire
#14 - Fire Vehicle Replacement
$431,809.03
Fire
#63 - Fire Table Command Incident Mgmt Software
51,087.92
Fire
#65 - Fire Personal Protective Equipment (PPE)
9,234.23
General Services
#58 - Community Safety - Security Guards Expansion
245,757.65
Innov & Tech
#33 - Technology Improvements
3,498,950.35
Museum
#26 - Museum Rehabilitation - Grand Opening
60,000.00
Police
#46 - Park and Neighborhood Specialist (PANS) Program
25,680.00
Police
#54 - Police K9
52,956.25
Police
#62 - Real-Time Crime Center
50,792.58
Public Works
#29 - Maximize Roads/Streets (Pavement Condition Index) 1,399,258.97
Total Discretionary
$5,825,526.98
Total Carryover Recommendations – Measure Z
$5,825,526.98
215 - GRANTS AND RESTRICTED PROGRAMS
Department
Description
Amount
Restricted
City Manager
Non-Profit Revolving Loan Funds
$1,000,000.00
Cmmty & Econ Dev
Downtown Safety Ambassador Program
9,715.75
Cmmty & Econ Dev
Historic District Sign Program
135,292.00
Cmmty & Econ Dev
One Stop Shop Refresh
431,813.50
Fire
California Fire and Rescue Training Authority Task Force Mobilization Training 140,861.39
Fire
Certified Unified Program Agencies
1,282,023.00
Fire
CFFJAC Firefighter Joint Apprentice
64,548.71
Fire
Rancho Santiago/Riverside Community College Moreno Valley Inter-Agency Instructional Services Agreement 131,679.55
Housing & Hum Svcs
Homeless Campus (Department of Public Social Services)
280,971.33
Housing & Hum Svcs
Hulen Campus Rehab Sponsorship
16,225.00
Housing & Hum Svcs
Hulen Place-Access Center
111,777.23
Housing & Hum Svcs
Hulen Rehabilitation
684,218.80
Housing & Hum Svcs
Opioid Abatement Settlement
264,187.31
Housing & Hum Svcs
Opioid Distributor Settlement
2,548,060.00
Housing & Hum Svcs
Opioid Janssen Settlement
1,372,739.00
Housing & Hum Svcs
PSET Riverside County Flood Control MOU
130,331.42
Human Resources
Donations for the Wellness Program
114,480.35
Library
Donations, Gifts, and Trust Funds
106,526.69
Mktg & Comm
PEG (Public, Educational, or Governmental Access)
270,148.78
Museum
Donations from The Riverside Museum Associates for Museum Projects 13,107.00
Parks & Recreation
Donation for Special Events
7,931.70
Parks & Recreation
Donation for Aquatics
14,168.01
Parks & Recreation
Donation for Recreational Services
2,485.00
Parks & Recreation
Donation for Recreational Supplies
2,017.21
Parks & Recreation
Donation for Riverside Arts Academy
38,584.82
Parks & Recreation
Donation for Senior Programming
840.00
Parks & Recreation
Donations from LA84 Foundation for Learn-to-Swim Lessons 169.09
Parks & Recreation
Sycamore Canyon Endowment Fund
121,486.35
Police
Asset Forfeiture
(4,408.23)
Police
Donations for Shop With a Cop
3,000.00
Total Restricted
$9,294,980.76
Total Carryover Recommendations – Grants and Restricted Programs $9,294,980.76
230 – GAS TAX
Department
Description
Amount
Discretionary
Public Works
Pavement Management Program
$54,825.03
Public Works
Surplus Property Disposal
98,263.86
Total Discretionary
$153,088.89
Total Carryover Recommendations – Gas Tax
$153,088.89
280 – HOUSING AUTHORITY
Department
Description
Amount
Restricted
Housing & Hum Svcs
Housing Authority Projects (Multiple)
$1,209,546.98
Total Restricted
$1,209,546.98
Total Carryover Recommendations – Housing Authority
$1,209,546.98
291 – SPECIAL DISTRICTS
Department
Description
Amount
Restricted
Parks & Recreation
Loving Homes Landscape Maintenance District
$93,668.97
Parks & Recreation
Village at Canyon Crest Landscape Maintenance District
352,007.21
Total Restricted
$445,676.18
Total Carryover Recommendations – Special Districts
$445,676.18
292 – RIVERWALK LANDSCAPE MAINTENANCE DISTRICT FUND
Department
Description
Amount
Discretionary
Parks & Recreation
Riverwalk Trail Fencing / Playground
$333,734.46
Total Discretionary
$333,734.46
Total Carryover Recommendations – Riverwalk Landscape Maintenance District Fund $333,734.46
410 – STORM DRAIN
Department
Description
Amount
Discretionary
Public Works
Miscellaneous Drainage Studies
$134,532.48
Public Works
Sycamore Canyon Business Park Habitat Restoration
5,497.82
Total Discretionary
$140,030.30
Total Carryover Recommendations – Storm Drain
$140,030.30
413 – REGIONAL PARK SPECIAL CAPITAL FUND
Department
Description
Amount
Discretionary
Parks & Recreation
Sycamore Canyon Trail Development
$50,161.49
Total Discretionary
$50,161.49
Total Carryover Recommendations – Regional Park Special Capital Fund $50,161.49
432 – MEASURE A
Department
Description
Amount
Discretionary
Public Works
Railroad Project Management
$639,805.97
Public Works
Railroad Quiet Zone Maintenance
60,216.54
Total Discretionary
$700,022.51
Total Carryover Recommendations – Measure A
$700,022.51
480 - REDEVELOPMENT SUCCESSOR AGENCY 2007 BONDS
Department
Description
Amount
Restricted
Cmmty & Econ Dev
Unprogrammed 2007 Taxable Bonds
$443,516.41
Cmmty & Econ Dev
Villegas Park Brown Room Renovation
51,996.86
Cmmty & Econ Dev
Villegas Park Construction
54,034.39
Cmmty & Econ Dev
Ward 3 Street Improvements
950.57
Total Restricted
$550,498.23
Total Carryover Recommendations – Redevelopment Successor Agency 2007 Bonds $550,498.23
510 - ELECTRIC
Department
Description
Amount
Discretionary
RPU - Administration
311 Upgrade Project
$469,422.12
RPU - Administration
Capital Repairs at Mission Square Building
2,003,215.72
RPU - Administration
Capital Repairs at Public Utility Buildings
39,085.73
RPU - Administration
Printer leases and maintenance services
33,000.00
RPU - Administration
Customer Information System (CIS) Disaster Recovery Project 500,000.00
RPU - Administration
Customer Web Portal
750,000.00
RPU - Administration
Electric Fund Cost of Service Analysis
814,859.88
RPU - Administration
Physical Security Projects
210,346.67
RPU - Administration
Proportional Share of Technology Projects
1,358,309.92
RPU - Administration
Workforce Development Internal Training
176,054.49
RPU - Electric
Training for Linework Power Line Technicians
86,132.97
RPU - Electric
Grounding (Earthing) and Electromagnetic Analysis Software 73,000.00
RPU - Electric
Integrated Resource Plan
268,890.44
RPU - Electric
Legal fees related to power supply and generation projects 330,527.00
RPU - Electric
Public Utilities Vehicles and Equipment
368,000.00
RPU - Electric
Publicly Accessible Electric Vehicles Charging Stations 500,000.00
RPU - Electric
Vehicle Capital Leases
776,955.61
Total Discretionary
$8,757,800.55
Total Carryover Recommendations – Electric
$8,757,800.55
511 – ELECTRIC PUBLIC BENEFITS PROGRAM
Department
Description
Amount
Discretionary
RPU - Administration
Implement Energy Efficient Measures at Medium and Small Sized Businesses $250,000.00
RPU - Administration
Program Enhancements For Low Income Energy Efficiency Program. 101,401.00
RPU - Administration
Program Enhancements For Mobile-Home & Multi-Family Energy Efficiency Program. 238,629.00
RPU - Administration
Unprogrammed Funds
2,000,000.00
Total Discretionary
$2,590,030.00
Total Carryover Recommendations – Electric Public Benefits Program $2,590,030.00
520 - WATER
Department
Description
Amount
Discretionary
RPU - Water
Advanced Metering Infrastructure Project
$353,067.00
RPU - Water
Heavy Equipment Purchases
4,518,539.00
RPU - Water
Non-Capital Paving Expenses
672,200.00
RPU - Water
Proportional Share of Measure Z Technology Projects
491,537.38
RPU - Water
Seven Oaks Dam Operations and Maintenance
188,022.96
RPU - Water
Weed Abatement and Arc Flash Studies
600,000.00
Total Discretionary
$6,823,366.34
Total Carryover Recommendations – Water
$6,823,366.34
521 – WATER CONSERVATION
Department
Description
Amount
Discretionary
RPU - Water
Water Conservation Surcharge Programs Enhancements
$476,945.00
RPU - Water
Water Energy Community Action Network's Turf Removal Program 722,494.00
Total Discretionary
$1,199,439.00
Total Carryover Recommendations – Water Conservation
$1,199,439.00
540- REFUSE
Department
Description
Amount
Restricted
Public Works
Landfill Regulatory Compliance Requirement
$78,525.64
Total Restricted
$78,525.64
Total Carryover Recommendations – Refuse
$78,525.64
550 – SEWER
Department
Description
Amount
Discretionary
Public Works
Backhoe and Coupler Bucket
$147,329.47
Public Works
Environmental Compliance Tracking Database Software
9,256.30
Public Works
Outside Legal Services
70,000.00
Public Works
Public Works Chemical Purchases
262,227.51
Total Discretionary
$488,813.28
Total Carryover Recommendations – Sewer
$488,813.28
581 - ENTERTAINMENT
Department
Description
Amount
Discretionary
Parks & Recreation
Maintenance & Repair
$1,115,721.40
Total Discretionary
$1,115,721.40
Total Carryover Recommendations – Entertainment
$1,115,721.40
582 – CHEECH MARIN CENTER
Department
Description
Amount
Discretionary
Parks & Recreation
Maintenance & Repair
$100,000.00
Total Discretionary
$100,000.00
Total Carryover Recommendations – Cheech Marin Center
$100,000.00
640 - CENTRAL STORES
Department
Description
Amount
Discretionary
Finance
Inventory Vending Machine and Barcode Scanning System
$59,481.30
Total Discretionary
$59,481.30
Total Carryover Recommendations – Central Stores
$59,481.30
753 – CFD 90-1-HIGHLANDER
Department
Description
Amount
Restricted
Finance
Community Facilities District 90-1 Irrigation Maintenance $191,816.00
Total Restricted
$191,816.00
Total Carryover Recommendations – CFD 90-1 – Highlander $191,816.00
Appendix B – Measure Z Spending Plan
The Measure Z Spending plan includes only those expenditures and carryovers that utilize current revenues. Carryovers in the table below include both encumbrances and discretionary carryovers. Expenditures and carryovers related to the use of debt proceeds are not included in the Spending Plan. Refer to the description of the Measure Z Spending Plan on page 20.

Spending Items
Actual
FY 2018/19
Actual
FY 2019/20
Actual
FY 2020/21
Actual
FY 2021/22
Actual
FY 2022/23
Actual
FY 2023/24
Actual
FY 2024/25
Carryover
FY 2024/25

REVENUE
Transaction & Use Tax
$ 62,283,444
$ 62,380,085
$ 71,999,092
$ 83,156,696
$ 84,015,703
$ 81,892,623
$ 81,326,418
$ -
Interest Earnings
532,684
755,392
654,898
752,491
1,825,380
2,303,372
2,346,185
-
Total Revenues
$ 62,816,128
$ 63,135,477
$ 72,653,990
$ 83,909,187
$ 85,841,083
$ 84,195,995
$ 83,672,603
$ -

EXPENDITURES
1 20% General Fund Reserve
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
2 Payoff of the Balloon $32 million Pension Obligation Bond 1,673,554
1,674,490
1,674,500
1,679,490
1,673,080
1,673,530
1,673,370
-
3 Funding for Workers' Compensation and General Liability 2,500,000
-
-
-
-
-
-
-
4 Measure Z Spending Contingency - General Fund Balancing Measure -
-
-
-
-
-
-
-
5 Additional Sworn Police Positions
5,588,853
7,639,210
10,163,726
10,745,658
13,751,855
14,278,338
15,480,597
65,589
5a
RPD Drones
-
-
-
-
-
-
77,225
-
6 Public Safety Non-Sworn Positions and Recruitment Costs 795,676
877,104
913,458
897,576
952,016
981,520
1,210,158
-
7 Police Officer Lateral Hire Incentives and Recruitment Costs 30,049
9,994
300
46,856
73,986
133,853
90,967
-
8 Additional Public Safety Dispatchers
477,694
566,809
656,263
857,136
1,407,570
1,372,577
1,359,674
-
9 Maintain Firefighter Staffing Level
992,571
1,291,460
1,406,709
4,137,516
2,178,353
2,135,230
2,599,851
-
10 Reinstatement of Fire Captains (Training and Arson)
559,538
556,919
469,733
507,235
657,475
693,595
1,175,619
-
11 Reinstatement of Fire Battalion Chief
368,948
390,025
611,747
396,056
416,987
405,715
493,392
-
12 Police Vehicle Replacement and Maintenance Plan
1,738,555
1,199,786
627,585
3,735,056
2,143,480
2,063,080
2,918,718
292,228
13 Refurbish Police Vehicles (Pilot Program)
-
-
-
-
-
-
-
-
14 Fire Vehicle Replacement and Maintenance Plan
1,607,452
3,143,742
2,521,600
1,572,275
1,706,747
1,939,520
1,948,531
9,611,357
15 Fleet Facility Capital Repairs
-
-
-
-
-
-
-
-
16 Additional Fleet Mechanics for Police Department
173,230
202,610
219,713
225,454
149,860
184,487
219,299
-
17 Additional Fleet Mechanics for Fire Department
221,068
231,352
237,262
244,309
297,025
280,007
285,832
-
18 General Fund Support - Maintain Existing Services
13,238,623
18,266,026
18,266,026
18,266,026
18,266,026
18,266,026
18,266,026
-
18a
Public Safety Support
5,889,969
-
19 General Plan Update
33,419
9,525
300,069
37,534
279,886
30,249
1,472,085
2,834,885
20 Homeless Services
184,619
528,954
4,197
693,012
503,743
434,065
391,820
666,699
21 Principal Management Analyst - City Manager's Office 148,684
161,803
175,948
180,941
170,144
126,740
-
-
22 Budget Engagement Commission Support
27,000
8,365
23,364
15,648
10,868
15,384
12,469
85 23
New Downtown Main Library & Archives
3,386,205
5,119,500
(434,155)
2,751,200
2,738,151
2,738,750
2,737,000
-
24 SPC Jesus S. Duran Eastside Library
-
-
18,900
75,600
-
1,117,999
188,211
699,290
25 New Police Headquarters
-
26,394
43,556
-
-
-
333
25,671
26 Museum Expansion and Rehabilitation
-
89,053
175
-
1,474
44,801
120,769
463,208
27 New Downtown Parking Garage
-
-
-
-
-
-
-
-
28 Annual Deferred Maintenance (Existing Facilities)
1,111,923
1,025,461
838,450
959,363
1,859,493
1,630,681
1,067,835
2,219,230
29 Maximize Roads/Streets (Pavement Condition Index)
2,276,844
460,494
4,825,070
12,974,269
7,219,089
16,927,952
15,845,567
9,374,130
30 Tree Trimming
890,259
2,018,472
994,585
983,450
1,842,682
3,956,958
3,794,742
5,448
31 Ward Action Team - City Attorney's Office
263,704
295,205
303,967
326,426
388,006
343,233
369,037
-
32 Ward Action Team - City Manager's Office
-
-
-
-
-
-
-
-
33 Technology Improvements
433,629
679,248
2,792,116
1,686,690
1,470,850
1,033,871
920,172
4,163,859
34 4-Person Staffing on Fire Trucks
202,119
1,284,098
1,244,499
1,006,903
979,106
1,017,827
877,192
35 Fire Equipment and One-Time Operating Needs
60,473
64,019
52,466
89,769
-
-
-
-
36 Fire Radios
1,931,769
45,920
-
-
-
-
-
16,270
37 Recreation – Summer Pools
50,000
50,000
-
3,006
-
-
-
-
38 Bourns Family Youth Innovation Center – Furnishing & Operating Costs -
183,961
49,536
342,145
(2,808)
-
-
-
39 Public Safety & Engagement Team (PSET) – Urban
21,691
1,226,821
1,518,578
1,126,665
2,657,537
2,731,728
1,997,644
1,130,253
40 Library Security Guards
-
121,809
339,822
380,393
-
-
-
-
41 Homeless Temporary Housing
-
112,204
(112,204)
-
-
-
-
-
42 Orangecrest Fire Station Dormitory Improvements
-
427
108,384
-
-
-
-
-
43 Public Works Streets Vehicle & Equipment Needs
-
-
-
-
490,337
1,578,114
2,248,589
912,935
44 Parks, Recreation & Community Services Infrastructure, Vehicles, and Equipment -
-
-
11,735
189,894
288,277
567,185
980,120
45 Motorhome Removal & Disposal
-
-
-
5,000
9,000
12,000
3,000
5,400
46 Park and Neighborhood Safety (PANS) Program
-
-
-
493,808
1,296,852
1,692,713
1,831,236
25,680
47 Police Helicopter Capital Lease
-
-
-
-
1,238,158
1,238,158
1,238,200
-
48 Office of Homeless Solutions Expansion
-
-
-
-
47,454
147,518
133,561
-
49 Public Safety & Engagement Team (PSET) - Wildlands
-
-
-
-
613,870
3,443,270
3,007,392
761,512
50 Public Safety Enterprise Communication System (PSEC) Radios -
-
-
-
343,438
456,456
343,438
-
51 Office of Sustainability
-
-
-
-
13,402
53,809
130,177
-
52 Sidewalk Repair
-
-
-
-
371,776
20,238
-
1,407,986
53 Mt Rubidoux Trail Resurfacing
-
-
-
-
1,198,947
404,350
22,635
154,068
54 Police K9
-
-
-
-
-
21,556
65,487
52,957
55 Parks Capital Improvement Projects
-
-
-
-
-
186,897
3,131,890
6,439,471
56 Fire - Analog Simulcast Communication System
-
-
-
-
-
3,788
753,118
809,535
58 Community Safety - Security Guards Expansion
-
-
-
-
-
-
169,353
330,647
59 Police Radios Replacement
-
-
-
-
-
-
3,296,344
-
60 Senior & Disabled Programming
-
-
-
-
-
-
197,041
45,864
62 Real-Time Crime Center
-
-
-
-
-
-
149,207
50,793
63 Fire Table Command Incident Mgmt Software
-
-
-
-
-
-
110,336
780,977
65 Fire SCBA & PPE
-
-
-
-
-
-
18,791
116,209
Total Expenditures
$ 40,988,149
$ 49,561,260
$ 50,855,945
$ 67,454,200
$ 69,605,809
$ 86,104,860
$100,901,083
$44,442,355
Five-Year Financial Plan Surplus/(Deficit)
$ 21,827,979
$ 13,574,217
$ 21,798,045
$ 16,454,987
$ 16,235,274
$ (1,908,865)
$(17,228,480)
$(44,442,355)

FUND RESERVES
Beginning Measure Z Available Balance
$ 22,735,372
$ 39,563,351
$ 53,137,568
$ 74,935,613
$ 91,390,600
$ 107,625,874
$ 105,717,009
$88,488,529
Five-Year Financial Plan Surplus/(Deficit)
21,827,979
13,574,217
21,798,045
16,454,987
16,235,274
(1,908,865)
(17,228,480)
(44,442,355)
Permanent Policy Reserve Set-Aside
(5,000,000)
Ending Measure Z Available Balance
$ 39,563,351
$ 53,137,568
$ 74,935,613
$ 91,390,600
$ 107,625,874
$ 105,717,009
$88,488,529
$44,046,174
Permanent Policy Reserve Set-Aside: $5M
The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

The Measure Z Reserve Policy adopted by City Council on April 2, 2019, requires a minimum $5M contingency reserve level. This amount was removed from available fund balance in 2019 and is held intact, separately of the available fund balance reported in the Spending Plan.

FISCAL YEAR END REVIEW | 39
FISCAL YEAR END REVIEW | 39