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1 RiversideCA.gov1
RiversideCA.govFY 2025/26 Second Quarter Financial Update City CouncilApril 14, 2026Finance Department
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Fiscal Health and OutlookSignificant uncertainty of future fiscal outlook remains Overall, the City maintains a strong financial positionRisk that expenditure will continue to outpace revenue growth 1 2
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2 RiversideCA.gov3
GENERAL FUND & MEASURE Z RESERVE BALANCESGeneral FundBalance(in millions)Policy Reserves$ 57.32Emergency Reserve (15%)19.11 Contingency Reserve (5%)$ 76.43 TotalOther Reserves$ 18.23Reserved for Section 115 Trust Contributions6.37 Infrastructure Reserve5.00 Technology Reserve25.82Water GFT Escrow96.77Section 115 Trust9.56 Undesignated$ 161.75Total$ 238.18Total ReservesMeasure ZBalance(in millions)$ 24.34 Available Fund Reserves*5.00 Policy Reserve$ 29.34 Total* Reflects projected fund balance as of the end of the second quarter including encumbrances, carryovers, and recommended adjustments.* Measure Z fund balance is anticipated to be drawn down over the adopted five-year plan.
RiversideCA.gov4
GENERAL FUND & MEASURE Z OVERVIEWFY 2025/26 SummaryFinal Adjusted BudgetQ2 Recommended AdjustmentsCouncil Approved Adjustments*Adopted BudgetGeneral Fund$ 386,723,926 $ 4,566,713 $ -$ 382,157,213 Revenue/Transfers In386,723,926 3,404,9001,161,813 382,157,213 Expenditure/Transfers Out$ -$ 1,161,813$ (1,161,813) $ -Surplus/(Deficit)Measure Z$ 83,876,000 $ (220,000)$ -$ 84,096,000 Revenue/Transfers In103,952,623(3,955,941)655,077 107,253,487 Expenditure/Transfers Out(20,076,623)$ 3,735,941$ (655,077) $ (23,157,487) Surplus/(Deficit)*** Excludes encumbrances and carryovers and various net zero adjustments, which do not have a net impact on the surplus/deficit calculation.** Reflects continued strategic draw on available Measure Z fund balance as adopted in the FY 2025/26 budget. 3 4
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3 RiversideCA.gov5
GENERAL FUND REVENUESGeneral Fund (in millions)% ChangeYear End ProjectionProposed AdjustmentsAdopted BudgetRevenue Category1.6%$ 97.97$ 1.50 $ 96.47 Property Taxes0.9%94.97.88 94.09 Sales Tax-75.0%.25(.75)1.00 Cannabis Tax-2.2%36.32(.80) 37.12 Utility Users Tax-8.93-8.93 Transient Occupancy Tax-14.0%6.16(1.00)7.16 Franchise Fees9.0%12.111.0011.11 Licenses & Non-Developer Permits-12.21-12.21 Non-Development Charges for Services-25.0%7.74(2.00)9.74 Development Fees & Charges5.6%59.333.1356.20 General Fund Transfer0%18.27-18.27 Measure Z Transfer0%7.37-7.37 Public Safety Support(Measure Z)11.6%25.112.6122.50Other Revenues & Transfers In1.19%$ 386.72$ 4.57 $ 382.16 Total Revenues & Transfers In RiversideCA.gov6
GENERAL FUND EXPENDITURESAmended Budget includes prior fiscal year encumbrances and carryovers.$382.2 $382.2 $383.1 $410.7 $125.4 (32.7%)$200.0 (48.7%) $- $50.0 $100.0 $150.0 $200.0 $250.0 $300.0 $350.0 $400.0 $450.0Revenue Expenditure(in millions)AdoptedAmendedQ2 Actuals5 6 4/2/2026
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MEASURE Z SPENDING PLANProjectedActuals20262025202420232022(in millions)$ 83.88$83.67$ 84.20$ 85.84$ 83.91Revenue(103.95)100.90(86.10)(69.61)(67.45)Expenditures(44.44)Encumbrances & Carryovers$(64.52)$(17.23)$(1.91)$16.24$ 16.46Net Change in Fund Balance$ 88.49$ 105.72$ 107.63$ 91.40$ 74.94Beginning Fund Balance(64.52)(17.23)(1.91)16.2416.46Net Change in Fund Balance$ 23.97$ 88.49$ 105.72$ 107.63$ 91.40Ending Fund Balance RiversideCA.gov8
Electric FundAmended Budget includes prior fiscal year encumbrances and carryovers.Excludes bond proceeds and capital expenditures $485.5 $472.1 $485.5 $491.5 $264.4 (54.5%)$245.5 (49.9%) $- $100.0 $200.0 $300.0 $400.0 $500.0 $600.0Revenue Expenditure(in millions) Adopted
Amended
Q2 Actuals7
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Water FundAmended Budget includes prior fiscal year encumbrances and carryovers.Excludes bond proceeds and capital expenditures $106.5 $94.8 $106.5 $106.7 $80.9 (76.0%)$47.7 (44.7%) $- $20.0 $40.0 $60.0 $80.0 $100.0 $120.0Revenue Expenditure(in millions) Adopted
Amended
Q2 Actuals
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Refuse FundAmended Budget includes prior fiscal year encumbrances and carryovers.Excludes capital expenditures $37.6 $39.3 $36.9 $45.4 $19.1 (51.9%) $19.7 (43.4%) $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0Revenue Expenditure(in millions) Adopted
Amended
Q2 Actuals9
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Sewer FundAmended Budget includes prior fiscal year encumbrances and carryovers.Excludes capital expenditures $78.3 $77.4 $78.3 $80.3 $31.7 (40.4%)$41.4 (51.5%) $- $15.0 $30.0 $45.0 $60.0 $75.0 $90.0Revenue Expenditure(in millions) Adopted
Amended
Q2 Actuals
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Public Parking FundAmended Budget includes prior fiscal year encumbrances and carryovers.Excludes capital expenditures $11.7 $10.0 $11.7 $10.3 $5.5 (46.6%)$3.9 (37.8%) $- $3.0 $6.0 $9.0 $12.0 $15.0Revenue Expenditure(in millions) Adopted
Amended
Q2 Actuals11
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7 RiversideCA.gov13
1. Receive and provide input on the Fiscal Year 2025/26 Second QuarterFinancial Update;2. With at least five affirmative votes, authorize the Chief Financial Officer, ordesignee, to record:a) An overall net increase in revenue in the General Fund in the amount of $4,566,713 in various revenue categories and an overall net decrease in revenue in the amount of $220,000 in the Measure Z Fund;b) A supplemental appropriations in the amount of $2,630,000 in the General Fund for various programs, designate $744,900 to the Water General Fund Transfer Escrow, and a supplemental appropriation in the amount of $250,000 in the Measure Z Fund;RECOMMENDATIONSThat the City Council:
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c) A supplemental appropriation and interfund transfer in the amount of $781,533 from General Fund Infrastructure Reserves to the Capital Outlay Fund, Bordwell Park Project;d) Various interdepartmental transfers in the amount of $2,052,951;e) Supplemental appropriations, operating transfers, revenue adjustments, and all other accounting entries from the General, Capital Outlay, CFD Riverwalk Vista, and Redevelopment Successor Agency (RDSA) Bond Funds in the amount of $426,355 to support a pending receivable in RDSA 2007 Bond fund. This operating transfer will be offset by available CFD bond proceeds that will offset the costs of an existing Parks capital project and result in a net zero impact to the General Fund; RECOMMENDATIONS13 14