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RiversideCA.govFY 2026-2028 Biennial Budget
City CouncilJune 23, 2026Finance Department
RiversideCA.gov2
CITYWIDE OPERATING BUDGET1
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CITYWIDE OPERATING BUDGETFY 2027/28$1.43 BillionFY 2026/27$1.41 Billion General Fund, $383.3M, 27%Measure Z Fund,$95.2M, 7%Other Funds, $190.2M, 14%Public Parking Fund, $11.2M, 1%Refuse Fund, $42.1M, 3%Sewer Fund, $74.9M, 5%Water Fund, $110.6M, 8%Electric Fund, $499.2M, 35% General Fund, $403.9M, 28%Measure Z Fund, $93.0M, 7%Other Funds, $202.9M, 14%Public Parking Fund, $11.5M, 1%Refuse Fund, $44.1M, 3%Sewer Fund, $77.4M, 5%Water Fund, $114.6M, 8%Electric Fund, $482.4M, 34% RiversideCA.gov4
CITYWIDE PERSONNELProposed FY 2027/28Proposed FY 2026/27Adopted FY 2025/26Fund1,582.26(4.00)1,578.26(-10.50)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 Garage2,746.01(4.00)2,742.01(2.00)2,740.01Total3 4 6/11/2026
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GENERAL FUND AND MEASURE Z
RiversideCA.gov6
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 5 6 6/11/2026
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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 Contributions3.59Infrastructure Reserve5.00Technology Reserve25.82Water GFT Escrow100.32Section 115 Trust9.56Unassigned $162.52Total$238.95Total ReservesMeasure ZBalance(in millions)$24.34Fund Balance*5.00Policy Reserve$29.34 Total*Projected FY 2025/26 year-end fund balance RiversideCA.gov8
WHY THE CITY IS FACING A GENERAL FUND DEFICITRevenues(Significant Changes from Previous Adopted Biennial Budget)In thousandsFY 2027/28FY 2026/27Category$(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)(1,935)(1,818)Other Baseline Adjustments$24,982$19,025Total Expenditure ChangesProjected DeficitFY 2027/28FY 2026/27$(34,034)$(27,127)Total 7 8
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WHY THE CITY IS FACING A MEASURE Z DEFICIT(Significant Changes from Previous Adopted Biennial Budget)In thousandsFY 2027/28FY 2026/27CategoryRevenues$(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 Deficit RiversideCA.gov10
Protect core servicesStrategically phase in reductionsMaximize one-time solutionsMinimize use of reservesMaintain long-term fiscal sustainabilityBALANCED BUDGET FRAMEWORK 9 10
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ADJUSTING TO A BALANCED BUDGETDeficit Reduction Measures(In thousands)General FundFY 2027/28FY 2026/27Category$10,742$8,007Cost 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$34,034$27,127Total General Fund Measure ZFY 2027/28FY 2026/27Category$11,533$9,935Cost Reductions$11,533$9,935Total Measure Z RiversideCA.gov12
Combined General Fund Budget – FY 2026/27Measure Z is tracked separately but is a part of the General Fund.TOTAL$460MGeneral Fund$383MMeasure Z*$77MCombinedGeneral Fund Budget by Department Type Non Departmental, -$5M, 1%Section 115 Trust,$3M, 1%Capital Projects, $12M, 3%Water GFT Escrow, $10M, 2%Community Service, $111M, 23%Police , $167M, 36%Fire, $92M, 19%Public Safety, $259M, 55%* Excludes service support transfer from Measure Z to General Fund 11 12
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Combined General Fund Budget – FY 2027/28Measure Z is tracked separately but is a part of the General Fund.TOTAL$479MGeneral Fund$404MMeasure Z*$75MCombinedGeneral Fund Budget by Department Type Non Departmental, $4M, 1%Capital Projects, $11M, 2%Water GFT Escrow, $11M, 2%Community Service, $115M, 24%Police , $173M, 36%Fire,$92M, 19%Public Safety, $266M, 55%* Excludes service support transfer from Measure Z to General Fund RiversideCA.gov14
GENERAL FUND OVERVIEW2026-2028 Proposed Biennial Budget(In thousands)FY 2030/31ProjectedFY 2029/30ProjectedFY 2028/29ProjectedFY 2027/28ProposedFY 2026/27Proposed$ 445,090$ 432,549$ 420,260$ 403,909$ 383,327Revenue/Transfers In(445,090)(432,549)(420,260)(403,909)(383,327)Expenditure/Transfers Out$ -$ -$ -$ -$ -Surplus/(Deficit)13 14 6/11/2026
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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%101,71998,40994,092Sales 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 Permits2.8%4.4%13,11712,75712,214Non-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%$403,910$383,327$382,157Total Revenues & Transfers In RiversideCA.gov16
GENERAL FUND EXPENDITURESGeneral Fund (in thousands)% ChangeFY 2027/28Proposed BudgetFY 2026/27Proposed BudgetFY 2025/26Adopted BudgetExpenditure CategoryFY28FY275.9%3.3%$303,286$286,361$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%-15.1%71,59967,48279,496Non-Personnel4.1%6.1%11,58311,13010,492Special Projects2.4%-54.7%421411908Minor Capital Outlay2.5%2.0%23,06922,49622,048Debt Service5.5%-3.4%(21,512)(20,398)(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 Escrow3.6%-11.4%12,98512,53914,157Other Funds Subsidy5.4%0.3%$403,910$383,327$382,157Total Expenditures & Transfers Out 15 16
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GENERAL FUND EXPENDITURES BY DEPARTMENTGeneral Fund (in millions)% ChangeFY 27/28Proposed BudgetFY 26/27Proposed BudgetFY 25/26Adopted BudgetExpenditure CategoryFY28FY276.4%12.4%$1.45$1.37$1.21Mayor6.2%14.7%2.602.452.14City Council3.7%-5.6%5.315.125.43City Manager17.6%8.3%2.812.392.21City Clerk5.5%-14.0%5.785.486.37Office of City Attorney2.4%-8.5%2.822.753.01Marketing and Comms14.3%-0.820.71-Office of Inspector Gnrl5.8%-5.7%6.436.076.44Human Resources5.1%3.6%6.235.935.72General Services7.2%7.3%11.7310.9410.19Finance5.4%9.6%17.5216.6315.17Innovation and Tech7.3%0.1%3.142.932.92Housing and Human Svcs7.3%-2.1%19.9018.5418.93Community DevelopmentGeneral Fund (in millions)% ChangeFY 27/28Proposed BudgetFY 26/27Proposed BudgetFY 25/26Adopted BudgetExpenditure CategoryFY28FY272.7%7.3%138.34134.76125.64Police1.8%9.1%80.7579.3572.71Fire3.1%-2.4%25.3824.6125.21Public Works6.3%-1.3%12.3211.6011.75Library2.4%0.0%36.2835.4235.41Parks, Rec, Com Svcs58.7%3.1%4.402.782.69Museum28.2%-45.4%29.8623.2942.66Non-Deptl5.0%-14.2%(20.56)(19.59)(22.83)Cost Allocation Pln8.1%7.0%10.629.839.18Water GFT5.4%0.3%$403.91$383.33$382.16Total Expenditures & Transfers Out RiversideCA.gov18
FY 2030/31ProjectedFY 2029/30ProjectedFY 2028/29ProjectedFY 2027/28ProposedFY 2026/27ProposedFY 2025/26Revised(in millions)$ 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 OVERVIEWThe Measure Z Policy Reserve of $5M is maintained outside of the Spending Plan. 17 18
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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.gov20
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%-46.3%1,2511,2382,305Innovation and Tech5.8%4.0%465440423Office of City Attorney5.4%-0.1%198188188Human Resources4.7%-34.1%147140220City Manager0.3%-16.3%222227Finance---1,6731,673Non-Departmental-2.3%-11.4%$93,009$95,200$107,503Total Expenditures & Transfers Out 19 20
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ENTERPRISE FUNDS
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PROPOSED OPERATING BUDGETSMAJOR ENTERPRISE FUNDS – OPERATING Surplus / (Deficit)Outgoing ResourcesIncoming Resources (in millions)FY 2026/27$ 11,296,591 $ 499,199,021 $ 510,495,612 Electric11,193,865 110,605,623 121,799,508 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$ 20,419,254$ 738,091,681$ 758,510,935TotalFY 2027/28$ 32,054,537 $ 482,360,098 $ 514,414,635 Electric9,089,265 114,596,376 123,685,641 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$ 37,425,279 $ 730,035,321 $ 767,460,600 Total 21 22
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Capital Budget
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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%23 24 6/11/2026
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That the City Council:1. Conduct a public hearing on the proposed Fiscal Year 2026-2028Biennial Budget and proposed Fiscal Year 2026-2028 CapitalImprovement Plan; and2. With at least five affirmative votes, adopt a resolution approving theProposed Annual Budget for Fiscal 2026-2027 totaling $1,573,871,838and for Fiscal Year 2027-2028 totaling $1,591,086,507; and3. Delegate investment authority to the City’s Chief FinancialOfficer/Treasurer for a period of one year beginning July 1, 2026,and ending June 30, 2027.RECOMMENDATIONS25