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RiversideCA.govFY 2026-2028 Biennial Budget
City CouncilMay 19, 2026Finance Department
RiversideCA.gov2
BUDGET DEVELOPMENT PROCESS Executive ReviewBaseline BudgetThe Starting PointCommunity EngagementMeetings & SurveyDepartment Critical Needs/Cost Reduction OptionsBudget adoption on June 23Engagement and feedback through public meeting bodies Proposed budget to Council on May 19
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BUDGET STRATEGYWhat do we need just to maintain?What can we afford?Where do we want to go? RiversideCA.gov4
YOUR MONEY. YOUR VOICE.
Online Budget SurveyJan 22 – Feb 233
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CITYWIDE OPERATING BUDGET
RiversideCA.gov6
CITYWIDE OPERATING BUDGETFY 2027/28$1.43 BillionFY 2026/27$1.41 Billion General Fund, $383.2M, 27%Measure Z Fund, $95.2M, 7%Other Funds, $190.3M, 14%Public Parking Fund, $11.2M, 1%Refuse Fund, $42.1M, 3%Sewer Fund, $74.9M, 5%Water Fund, $110.5M, 8%Electric Fund, $499.2M, 35% General Fund, $403.8M, 28%Measure Z Fund, $93.0M, 7%Other Funds, $203.0M, 14%Public Parking Fund, $11.5M, 1%Refuse Fund, $44.1M, 3%Sewer Fund, $77.4M, 5%Water Fund, $114.5M, 8%Electric Fund, $482.4M, 34%5 6 5/5/2026
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CITYWIDE PERSONNELProposed FY 2027/28Proposed FY 2026/27Adopted FY 2025/26Fund1,581.26(4.00)1,577.26(-11.50)1,588.76General Fund173.25173.25173.25Measure Z3.003.003.00Development4.004.00(-2.00)6.00Grants and Restricted4.004.004.00CDBG-Community Development2.002.002.00NPDES Storm Drain6.006.00(-1.00)7.00Housing Authority468.00468.00(-5.00)473.00Electric165.00165.00165.00Water8.008.008.00AirportProposed FY 2027/28Proposed FY 2026/27Adopted FY 2025/26Fund67.0067.0067.00Refuse122.00122.00(1.00)121.00Sewer42.0042.00(6.00)36.00Special Transit23.0023.0023.00Public Parking5.005.005.00Workers Compensation Trust23.5023.50(13.50)10.00Liability Insurance Trust9.009.009.00Central Stores39.0039.0039.00Central Garage2,745.01(4.00)2,741.01(1.00)2,740.01Total RiversideCA.gov8
GENERAL FUND AND MEASURE Z7
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FISCAL HEALTH AND OUTLOOKOverall, the City maintains a strong position with record reserve levelsSignificant uncertainty of future fiscal outlook remainsRecommend proactive measures to balance potential multi-year deficits Potential multi-year deficits due to rising costs/slower revenue growth RiversideCA.gov10
GENERAL FUND & MEASURE Z RESERVE BALANCESGeneral FundBalance(in millions)Policy Reserves$57.32Emergency Reserve (15%)19.11Contingency Reserve (5%)$76.43TotalOther Reserves$18.23Reserved for Section 115 Trust Contributions5.32Infrastructure Reserve5.00Technology Reserve25.82Water GFT Escrow97.25Section 115 Trust9.56Unassigned $161.18Total$237.61Total ReservesMeasure ZBalance(in millions)$24.34Fund Balance*5.00Policy Reserve$29.34 Total*Projected FY 2025/26 year-end fund balance 9 10
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WHY THE CITY IS FACING A GENERAL FUND DEFICITRevenues(Significant Changes from Previous Adopted Biennial Budget)In thousandsFY 2027/28FY 2026/27Category$(2,186)$(297)Property Tax(1,213)(1,334)Sales Tax(1,765)(1,680)Utility Users Tax(1,217)(1,101)Franchise Fees(3,043)(2,778)Licenses and Non-Developer Permits(1,650)(1,650)Other Financing Sources2,021739Various Other Adjustments$(9,052)$(8,102)Total Revenue ChangesExpenditures(Significant Changes from Previous Adopted Biennial Budget)In thousandsFY 2027/28FY 2026/27Category$9,385$4,124Payroll, Health, Benefits6,0726,025CalPERS UAL2,8723,247Workers Comp/General Liability Trust3,7284,748Charges to/From & CAP(1,627)(1,908)Special Fund Subsidies6,4654,586Critical Needs (non personnel)(1,938)(1,809)Other Baseline Adjustments$24,979$19,033Total Expenditure ChangesProjected DeficitFY 2027/28FY 2026/27$(34,031)$(27,135)Total RiversideCA.gov12
WHY THE CITY IS FACING A MEASURE Z DEFICIT(Significant Changes from Previous Adopted Biennial Budget)In thousandsFY 2027/28FY 2026/27CategoryRevenues$(5,865)$(5,450)Transaction and Use Tax200200Interest$(5,665)$(5,250)Total RevenuesExpenditures$3,944$2,709Payroll, Health, Benefits804780CalPERS UAL1,9831,115New Programs/Critical Needs$6,731$4,604Total Expenditures$(12,396)$(9,854)Projected Deficit11 12 5/5/2026
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Protect core servicesStrategically phase in reductionsMaximize one-time solutionsMinimize use of reservesMaintain long-term fiscal sustainabilityBALANCED BUDGET FRAMEWORK RiversideCA.gov14
ADJUSTING TO A BALANCED BUDGETDeficit Reduction Measures(In thousands)General FundFY 2027/28FY 2026/27Category$10,739$8,016Cost Reductions3,9635,599Use of Unassigned Fund Balance-2,356General Liability Trust Fund Contribution True up1,191862Fees and Charges CPI increase18,13810,303Section 115 Trust/Set Aside$34,031$27,135Total General Fund Measure ZFY 2027/28FY 2026/27Category$11,533$9,935Cost Reductions$11,533$9,935Total Measure Z 13 14
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GENERAL FUND/MEASURE Z PROPOSED CUTS IN 2026-27AdditionsReductions2026-27Police, Fire, insurance, claim liabilities, animals, inflation - $17,951,254DollarsAdd one (Fire Marshall)- 38PersonnelLiving Within Our MeansCUTS NECESSARY TO MAINTAIN CURRENT LEVEL OF SERVICE RiversideCA.gov16
COST REDUCTIONS BY DEPARTMENT(General Fund in thousands)% of Budget*FY 27/28FY 26/27Department0.8%$3,099$1,094Police3.0%1,7381,088Parks, Recreation, and Community Services3.1%1,309779Public Works3.8%864740Community Development7.5%541498Human Resources3.0%392362Library6.3%345344City Manager1.8%314293Innovation and Technology2.6%296290Finance0.4%792284Fire3.7%258210City Attorney5.6%172165Marketing and Comms% of Budget*FY 27/28FY 26/27Department5.5%163163Museum4.9%150150Housing and Human Serv3.6%11191City Clerk1.1%19667General Services--1,400Various FY 25/26 Reductions2.1%$10,739$8,016Total Cost Reductions* Reflects FY 2026/27 cost reduction as a percent of the department’s pre reduction budget.15 16 5/5/2026
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COST REDUCTIONS BY DEPARTMENT(Measure Z in thousands)% of Budget*FY 27/28FY 26/27Department19.1%$3,175$2,675Public Works38.6%1,9001,700General Services37.0%2,1181,583Parks, Recreation, and Community Services3.5%1,2221,200Police8.5%1,1611,127Fire12.7%1,175870Housing and Human Services35.9%694692Innovation and Technology35.6%8080City Manager25.0%87Finance10.4%$11,533$9,935Total Cost Reductions* Reflects FY 2026/27 cost reduction as a percent of the department’s pre reduction budget.
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SECTION 115 TRUST
•Reaches $100M goal in FY27•Begins Section 115 Trust Drawdown in FY28•Smooths annual payments not to exceed $40.7M•Offsets annual fiscal impact >$11M 17 18
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GENERAL FUND OVERVIEW2026-2028 Proposed Biennial Budget(In thousands)FY 2030/31ProjectedFY 2029/30ProjectedFY 2028/29ProjectedFY 2027/28ProposedFY 2026/27Proposed$ 444,923$ 432,390$ 420,108$ 403,763$ 383,193Revenue/Transfers In(444,923)(433,390)(420,108)(403,763)(383,193)Expenditure/Transfers Out$ -$ -$ -$ -$ -Surplus/(Deficit) RiversideCA.gov20
GENERAL FUND REVENUESGeneral Fund (in thousands)% ChangeFY 2027/28Proposed BudgetFY 2026/27Proposed BudgetFY 2025/26Adopted BudgetRevenue CategoryFY28FY273.2%5.5%$105,000$101,784$96,473Property Taxes3.4%4.6%101,72198,41194,092Sales Tax0.0%0.0%1,0001,0001,000Cannabis Tax3.5%0.6%38,64737,34537,121Utility Users Tax2.1%3.9%9,4649,2718,927Transient Occupancy Tax3.8%-9.9%6,6976,4507,160Franchise Fees1.9%0.6%11,38311,17511,106Licenses & Non-Developer Permits2.7%3.3%12,96512,62112,214Non-Development Charges for Services2.9%-12.8%8,7348,4909,735Development Fees & Charges7.2%7.4%64,70160,37856,199General Fund Transfer0.0%-28.7%18,26618,26625,633Measure Z Transfer81.7%-34.0%14,3937,91912,003Section 115 Set Aside/Trust7.0%-3.9%10,79410,08510,495Other Revenues & Transfers In5.4%0.3%$403,763$383,193$382,157Total Revenues & Transfers In19 20 5/5/2026
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GENERAL FUND EXPENDITURESGeneral Fund (in thousands)% ChangeFY 2027/28Proposed BudgetFY 2026/27Proposed BudgetFY 2025/26Adopted BudgetExpenditure CategoryFY28FY275.9%3.3%$303,137$286,225$277,141Personnel5.0%-3.8%(16,055)(15,287)(15,891)Vacancy Factor8.3%27.9%18,01316,63012,999Cal PERS UAL-Safety17.9%34.8%10,4608,8746,582Cal PERS UAL-Misc6.1%-15.2%71,49967,37679,496Non-Personnel4.1%6.1%11,58511,13210,492Special Projects0.8%-43.0%521517908Minor Capital Outlay2.5%2.0%23,06922,49622,048Debt Service5.4%-3.1%(21,576)(20,461)(21,125)Charges To/From5.0%-14.2%(20,564)(19,590)(22,831)Cost Allocation Plan-100%-68.3%-2,8539,000Section 115 Trust Transfer8.1%7.0%10,6249,8269,183Water GFT Escrow3.5%-11.0%13,04912,60214,157Other Funds Subsidy5.4%0.3%$403,763$383,193$382,157Total Expenditures & Transfers Out RiversideCA.gov22
GENERAL FUND EXPENDITURES BY PROGRAM AREA(FY 2026/27 in millions) Internal Services, $59.4M, 15%Public Safety, $214.2M, 56%Community Services, $96.0M, 25%Other, $13.6M, 4%21 22 5/5/2026
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GENERAL FUND EXPENDITURES BY DEPARTMENTGeneral Fund (in millions)% ChangeFY 27/28Proposed BudgetFY 26/27Proposed BudgetFY 25/26Adopted BudgetExpenditure CategoryFY28FY276.4%12.7%$1.46$1.37$1.21Mayor6.2%14.8%2.602.452.14City Council3.8%-5.5%5.325.135.43City Manager17.6%8.4%2.812.392.21City Clerk5.4%-13.7%5.805.506.37Office of City Attorney2.4%-8.4%2.822.763.01Marketing and Comms14.3%-0.820.71-Office of Inspector Gnrl5.8%-5.3%6.456.106.44Human Resources5.1%3.7%6.235.935.72General Services7.1%7.5%11.7310.9610.19Finance5.6%6.0%16.9916.0915.17Innovation and Tech7.3%0.3%3.142.932.92Housing and Human Svcs7.3%-1.9%19.9218.5618.93Community DevelopmentGeneral Fund (in millions)% ChangeFY 27/28Proposed BudgetFY 26/27Proposed BudgetFY 25/26Adopted BudgetExpenditure CategoryFY28FY272.7%7.3%138.39134.82125.64Police1.8%9.2%80.7879.3972.71Fire3.1%-2.3%25.4124.6425.21Public Works6.2%-0.4%12.4211.7011.75Library2.4%0.0%36.2635.4135.41Parks, Rec, Com Svcs58.6%3.3%4.402.782.69Museum28.2%-45.3%29.9323.3542.66Non-Deptl5.0%-14.2%(20.56)(19.59)(22.83)Cost Allocation Pln8.1%7.0%10.629.839.18Water GFT5.4%0.3%$403.76$383.19$382.16Total Expenditures & Transfers Out RiversideCA.gov24
FY 2030/31ProjectedFY 2029/30ProjectedFY 2028/29ProjectedFY 2027/28ProposedFY 2026/27ProposedFY 2025/26Revised(in millions)$ 99.12 $ 94.45 $ 90.42 $ 86.98 $ 84.55 $ 83.88 Revenue(99.02)(96.65)(95.66)(93.01)(95.20)(103.95)Expenditures$ 0.10$ (2.20)$ (5.23)$ (6.03)$ (10.65)$ (20.08)Net Change in Fund Balance$ 0.22 $ 2.43 $ 7.66 $ 13.69 $ 24.34 $ 44.41 Beginning Available Balance0.10(2.20)(5.23)(6.03)(10.65)(20.08)Net Change in Fund Balance$ 0.32 $ 0.22 $ 2.43 $ 7.66 $ 13.69 $ 24.34 Ending Available BalanceMeasure Z Spending PlanThe Measure Z Policy Reserve of $5M is maintained outside of the Spending Plan. 23 24
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MEASURE Z EXPENDITURESMeasure Z (in thousands)% ChangeFY 2027/28Proposed BudgetFY 2026/27Proposed BudgetFY 2025/26Adopted BudgetExpenditure CategoryFY 28FY 275.5%12.2%$32,412$30,736$27,390Personnel8.8%34.5%3,0202,7762,064Cal PERS UAL-Safety18.7%37.5%649547397Cal PERS UAL-Misc-5.8%-23.2%6,8557,2769,468Non Personnel-1.2%-31.5%6,8606,94310,133Special Projects-26.8%1.0%1,2111,6541,637Minor Capital Outlay-8.1%-23.0%11,30012,30015,975Capital Outlay-15.4%-0.7%12,43614,70214,806Debt Service0.0%-28.7%18,26618,26625,633Transfer to General Fund-2.3%-11.4%$93,009$95,200$107,503Total Expenditures & Transfers Out RiversideCA.gov26
MEASURE Z EXPENDITURES BY PROGRAM AREA(FY 2026/27 in millions) Internal Services, $4.73M, 5%Public Safety, $69.12M, 72%Community Services, $19.67M, 21%Other, $1.67M, 2%25 26 5/5/2026
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MEASURE Z EXPENDITURES BY DEPARTMENTMeasure Z(in thousands)% ChangeFY 27/28Proposed BudgetFY 26/27Proposed BudgetFY 25/26Adopted BudgetExpenditure CategoryFY28FY277.4%3.8%$35,087$32,668$31,471Police-4.3%9.0%11,66912,19911,192Fire--27%18,26618,26625,633Service Support Transfer-4.4%-30.5%10,85011,35016,325Public Works-21.1%-2.8%4,7285,9896,162Housing and Human Svcs-0.1%28.5%2,8862,8882,248Museum-0.1%-2,7342,7372,737Library-19.7%-17.2%2,1652,6973,258Parks, Rec, Com Svcs6.0%-25.8%2,5422,7043,642General Services1.0%-46.5%1,2461,2332,305Innovation and Tech5.8%4.0%465440423Office of City Attorney5.4%-0.1%198188188Human Resources4.7%-34.1%152145220City Manager0.3%-16.3%222227Finance---1,6731,673Non-Departmental-2.3%-11.4%$93,010$95,200$107,503Total Expenditures & Transfers Out RiversideCA.gov28
WHO PROVIDES THE SERVICES?
- 100.00 200.00 300.00 400.00 500.00 600.00 700.00Public Safety Community Service Internal Service628.2535.9%($112.3M)261.0014.9%($54.4M)143.258.2%($20.1M)174.7110.0%($15.3M)108.506.2%($15.6M)74.504.3%($7.2M)39.502.3%($4.5M)16.500.9%($1.9M)66.503.8%($9.4M)36.002.1%($4.9M)63.003.6%($10.6M)24.001.4%($5.1M)38.002.2%($5.6M)16.000.9%($3.9M)19.551.1%($2.6M)17.501.0%($2.1M)13.000.7%($1.8M)7.750.4%($1.1M)3.000.2%($0.6M) Budgeted PositionsFY 2026/27 POSITIONS BY DEPARTMENT GENERAL FUND & MEASURE ZTotal 1,750.51 Budgeted Positions889.2550.8%($166.7M)556.9631.8%($64.6M)304.3017.4%($47.7M) 27 28
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ENTERPRISE FUNDS
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PROPOSED OPERATING BUDGETSMAJOR ENTERPRISE FUNDS – OPERATING Surplus / (Deficit)Outgoing ResourcesIncoming Resources (in millions)FY 2026/27$ 11,295,900 $ 499,199,712 $ 510,495,612 Electric11,272,421 110,527,067 121,799,488 Water(2,072,982)42,102,46340,029,481 Refuse(679,374) 74,936,059 74,256,685 Sewer681,134 11,248,515 11,929,649 Public Parking$ 20,497,687$ 738,013,816$ 758,510,915TotalFY 2027/28$ 32,083,326 $ 482,331,309 $ 514,414,635 Electric9,193,112 114,492,509 123,685,621 Water(1,822,441)44,119,77342,297,332 Refuse(2,443,244)77,426,64474,983,400 Sewer547,162 11,532,430 12,079,592 Public Parking$ 37,557,915 $ 729,902,665 $ 767,460,580 Total 29 30
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ELECTRIC FUNDBudget Highlights•Operating Gain–FY 26/27: $11.3M–FY 27/28: $32.1M•Use of Bond Proceeds–FY 26/27: $33.2M–FY 27/28: $49.0M•Reserves–Will fall below minimum levels in FY 26/27 – recovers in FY 27/28 $510.5M$514.4M$499.2M$482.3M$79.7M$75.6M$0.0M$100.0M$200.0M$300.0M$400.0M$500.0M$600.0MFY 27 FY 27 FY 28 FY 28PROPOSED BIENNIAL BUDGETOperating RevenueOperating ExpenseCapital Projects RiversideCA.gov32
WATER FUNDBudget Highlights•Operating Gain–FY 26/27: $11.3M–FY 27/28: $9.2M•Use of Bond Proceeds–FY 26/27: $37.5M–FY 27/28: $30.8M•Reserves–Will remain within policy levels $121.8M$123.7M$110.5M$114.5M$45.3M $37.5M$0.0M$20.0M$40.0M$60.0M$80.0M$100.0M$120.0M$140.0M$160.0MFY 27 FY 27 FY 28 FY 28PROPOSED BIENNIAL BUDGET Operating RevenueOperating ExpenseCapital Projects
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REFUSE FUNDBudget Highlights•Operating Projection–FY 26/27: $2.1M deficit–FY 27/28: $1.8M deficit•SB 1383 Compliance•Continued Vehicle Replacement•Reserves–Drawdown in both budget years–Net gain projected in FY 28/29 (three years) $40.0M$42.3M$42.1M$44.1M$0.0M$5.0M$10.0M$15.0M$20.0M$25.0M$30.0M$35.0M$40.0M$45.0MFY 27 FY 27 FY 28 FY 28PROPOSED BIENNIAL BUDGETOperating RevenueOperating Expense RiversideCA.gov34
SEWER FUNDBudget Highlights•Operating Deficit–FY 26/27: $670,000–FY 27/28: $2.4M•Rising Costs–Chemical supplies–Capital Needs•Reserves–Will fall below policy reserve levels in FY 27/28–Requires organic increase in revenue or rate increases to meet minimum reserve level $74.3M$75.0M$74.9M$77.4M$0.2M$10.0M$0.0M$10.0M$20.0M$30.0M$40.0M$50.0M$60.0M$70.0M$80.0M$90.0MFY 27 FY 27 FY 28 FY 28PROPOSED BIENNIAL BUDGETOperating RevenueOperating ExpenseCapital Projects 33 34
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PUBLIC PARKING FUNDBudget Highlights•Operating Gain–FY 26/27: $681,000–FY 25/26: $547,000•“Parking Your Way” program–Presents both higher revenues and higher costs•Reserves–FY 26/27: $512,000 drawdown–FY 27/28: $1.75M increase $11.9M$12.1M$11.3M$11.5M$1.2M$2.3M$0.0M$2.0M$4.0M$6.0M$8.0M$10.0M$12.0M$14.0MFY 27 FY 27 FY 28 FY 28PROPOSED BIENNIAL BUDGETOperating RevenueOperating ExpenseCapital Projects RiversideCA.gov36
Capital Budget35
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Proposed Biennial Capital BudgetFY 2027/28$161.18 MillionFY 2026/27$167.06 Million Parks, Recreation, & Comm Svc, $1.5M, 1%Electric, $75.6M, 47%Municipal Building and Facilities, $1.5M, 1%Public Parking, $2.3M, 2%Transportation , $32.2M, 20%Storm Drain, $0.6M, 0%Sewer, $10.0M, 6%Water, $37.5M, 23% Parks, Recreation, & Comm Svc, $2.0M, 1%Electric, $79.7M, 48%Municipal Building and Facilities, $1.5M, 1%Public Parking, $1.2M, 1%Transportation , $35.3M, 21%Storm Drain, $2.0M, 1%Sewer, $0.2M, 0%Water, $45.3M, 27% RiversideCA.gov38
That the City Council:1. Receive and provide input on the proposed Fiscal Year 2026-2028Biennial Budget; and2. Set a public hearing date for adoption of the proposed Fiscal Year2026-2028 Biennial Budget on June 23, 2026.Recommendations37 38