Item No. 11
AGENDA REPORT
DATE: July 28, 2025
TO: Honorable Mayor and City Council
FROM: Phillip White, Director of Financ
SUBJECT: Budget Adjustment Report — July 2025
RECOMMENDATION:
That the City Council:
1. Receive and file the Staff Approved Budget Adjustments (Attachment 1); and
2. Approve the Budget Adjustments Requiring Council Approval (Attachment 2).
BACKGROUND/DISCUSSION:
The Finance Committee reviewed this item at its July 21 st meeting and approved forwarding to the City Council. Authority to allow adjustments to the adopted budget is described in the City of Yucaipa's Budget Policy (Policy). Adjustment authority follows two paths of approval, either staff or City Council.
Staff Approved Budget Adjustments (Attachment 1)
Adjustments made to the accounting system to align with the City Council's directives are considered "technical" adjustments. The Policy allows for staff to approve technical adjustments. Technical adjustments do not change the spending limits previously established by the City Council. Common technical adjustments typically include rolling over budget for capital improvement projects, which do not lapse at the end of each fiscal year, or connecting the project account strings within the system.
In addition to technical adjustments, staff is authorized to post a variety of budget adjustments to move spending authority between accounts. An example is moving the spending authority out of non - department contingency and into the City Clerk's election expense account. Interdepartmental movement such as this requires City Manager approval.
Pursuant to the Policy, staff approved items require City Council notification through a receive and file. Attachment 1 describes staff approved budget adjustments and acts as notification to the City Council.
Budget Adjustments Requiring City Council Approval (Attachment 2) Staff may, on a quarterly and as -needed basis, present a variety of budget adjustments requiring the approval of the City Council. When presented, these changes include an explanation and justification for each transaction. Adjustments are segregated by Fund and Department as appropriate.
Procurements near the end of the fiscal year can present challenges with budget maintenance.
Purchases ordered based on FY25 budget but not delivered until the subsequent fiscal year are systematically blocked from being paid in FY25 because the authorizing budget has lapsed. To continue operations, the transactions are removed from FY25 and "rolled over" to FY26 to allow for payment. Rollover budget adjustments represent an increase in spending authorization in FY26 and therefore require the City Council's approval. Attachment 2 details the rollover adjustments being requested.
FISCAL IMPACT:
The fiscal impact of each item to each Fund and Department is indicated within the attachments.
Attachments:
1. FY25 Staff Approved Budget Adjustments
2. Rollover Budget Adjustments Requiring Council Approval Approved by:
�r.
ATTACHMENT 1
Staff Approved Budget Adjustments
FY2S
Budget Adjustment Report -July 2025
Attachment 1
BA#
Fund
Department OR
CIP Name
Account Descri.tion
Rev/Ex.
Technical?
Emer:enc ?
Authority o
CM, DoF, or
DD
From Prior
FYBud :et?
Increase
(Decrease)
Amount
Description
5-17
Air Quality Improvement
Engineering
BUDGET ONLY - CIP
Carr over
Exp
Yes
No
DoF
Yes
$ 972,412.00
CIP Budget Carryover Clean -Up
5-17
Air Quality Improvement
Public Works
BUDGET ONLY - CIP
Carr over
Exp
Yes
No
DoF
Yes
$ 517,729.00
CIP Budget Carryover Clean -Up
S-17
Air Quality Improvement Total Net
Expense / (Revenue)
BUDGET ONLY - CIP
Carr over
Ex. Total
Exp
----
Yes
No
DoF
Yes
$ 1,490,141.00
$ 1,490,141.00
$ 1,071,126.00
CIP Budget Carryover Clean -Up
Capital Projects Fund
Community
Develo.ment
5-17
Capital Projects Fund
Engineering
BUDGET ONLY - CIP
Carr over
Exp
Yes
No
DoF
Yes
$ 623,717.00
CIP Budget Carryover Clean -Up
S-17
Capital Projects Fund
Public Works
BUDGET ONLY - CIP
Carr over
Exp
Yes
No
DoF
Yes
$ 1,388,137.00
CIP Budget Carryover Clean -Up
S-17
Capital Projects Fund Total Net Expense
Ex. Total
----
$ 3,082,980.00
/ (Revenue)
Exp
$ 3,082,980.00
CDBG - Capital
Public Works
BUDGET ONLY - CIP
Carr over
Yes
No
DoF
Yes
$ 123,951.00
CIP Budget Carryover Clean -Up
5-17
CDBG - Capital Total Net Expense /
Ex. Total
_---
$ 123,951.00
(Revenue)
$ 123,951.00
Drainage Facilities (DIF)
Engineering
BUDGET ONLY - CIP
Carr over
Exp
Yes
No
DoF
Yes
$ 6,467,993.00
CIP Budget Carryover Clean -Up
5-23
Drainage Facilities (DIF) Total Net Expense
Emergency Mgmt. Assistance
Ex. Total
----
$ 6,467,993.00
/ (Revenue)
Exp
DoF
No
$ 6,467,993.00
$ 16,873.00
City Manager
Staff Labor Buy-Interfund-
NonCIP
No
No
Grant Award
Ex. Total
----
$ 16,873.00
5-23
Emergency Mgmt. Assistance
City Manager
Fed - Dept. Homeland
Securit
Rev
No
No
DoF
No
$ 16,873.00
Grant Award
S-17
Emergency Mgmt. Assistance
Total Net Expense / (Revenue)
Fire Fund Capital Replacement
Rev Total
Exp
----
$ 16,873.00
$
Fire Protection
Services
BUDGET ONLY - CIP
Carr over
Yes
No
DoF
Yes
$ 200,000.00
CIP Budget Carryover Clean -Up
Fire Fund Capital Replacement Total
Ex. Total
Exp
----
$ 200,000.00
Net Expense / (Revenue)
Yes
No
DoF
Yes
$ 200,000.00
$ 915,000.00
S-17
General Capital Projects
Engineering
BUDGET ONLY - CIP
Carr over
CIP Budget Carryover Clean -Up
Ex. Total
Exp
_---
No
No
CM
No
$ 915,000.00
$ 915,000.00
$ 18,100.00
Increased election expense cost
5-22
General Capital Projects Total Net
Expense / (Revenue
General
Services/City Clerk
Election Expense
General Fund
5-22
General Fund
Non-
De.artmental
Contingency
Exp
No
No
CM
No
$ (18,100.00)
Increased election expense cost
Revenue)
Ex. Total
_---
Yes
No
DoF
Yes
$ -
$ -
$ 100,000.00
General Fund Total Net Expense /
5-17
General Fund Capital Replacement
City Manager
BUDGET ONLY - CIP
Carr over
Exp
CIP Budget Carryover Clean -Up
5-17
General Fund Capital Replacement
General
Services/City Clerk
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 150,000.00
CIP Budget Carryover Clean -Up
Ex. Total
---- $ 250,000.00
$ 250,000.00
General Fund Capital Replacement
Total Net Expense /
(Revenue)
Staff Approved Budget Adjustments
FY25
Budget Adjustment Report - July 2025
Attachment 1
S-17
Low Water Crossings
Engineering
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 933,092.00
CIP Budget Carryover Clean -Up
Low Water Crossings Total Net Expense
/ (Revenue)
Ex. Total
$ 933,092.00
$ 933,092.00
S-17
Park Capital Replacement Fund
Public Works
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 205,098.00
CIP Budget Carryover Clean -Up
Park Capital Replacement Fund Total
Ex. Total
$ 205,098.00
$ 205,098.00
Net Expense / (Revenue)
5-17
Park Facilities (DIF)
Public Works
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 1,360,426.00
CIP Budget Carryover Clean -Up
S-17
Park Facilities (DIF) Total Net Expense
/ (Revenue)
Engineering
BUDGET ONLY - CIP
Carryover
Ex. Total
$ 1,360,426.00
CIP Budget Carryover Clean -Up
DoF
Yes
$ 1,360,426.00
$ 97,056.00
Public Facilities (DIF)
Exp
Yes
No
Ex. Total
5-21
Public Facilities (DIF) Total Net Expense
/ (Revenue)
Public Safety
Veicles >$10keach
DoF
No
$ 97,056.00
$ 97,056.00
$ 252,162.00
Increase for Fire Engine Purchase -
Correction to purchase option 2
Exp
Yes
no
Public Safety Fund
5-18
Public Safety Fund
FY23 JAG Grant
Special Supples <10k each
Exp
Yes
No
DoF
No
$ 11,874.00
Assign Project to previously authorized
budget for FY23 JAG Grant.
5-18
Public Safety Fund
Public Safety
Special Supples <10k each
Exp
Yes
No
DoF
No
$ (11,874.00)
Assign Project to previously authorized
budget for FY23 JAG Grant.
Exp Total
$ 252,162.00
S-18
Public Safety Fund
FY23 JAG Grant
Trans -IN Frm Misc.Special
Rev
Rev
Yes
No
DoF
No
$ 11,874.00
Assign Project to previously authorized
budget for FY23 JAG Grant,
S-18
Public Safety Fund
Public Safety
Trans -IN Frm Misc.Special
Rev
Rev
Yes
No
DoF
No
$ (11,874.00)
Assign Project to previously authorized
budget for FY23 JAG Grant.
Rev Total
$ -
Public Safety Fund Total Net Expense
/ (Revenue)
$ 252,162.00
S-20
Street Maintenance (PMP)
Engineering
DNUBudgetOnly - CIP Cap
Prjcts
Exp
Yes
No
DoF
Yes
$ (1,371,791.00)
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 2,099,250.00
Increase for previously authorized FY25
PMP Projects
5-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 1,120,964.00
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 134,279.00
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIF' - Construction
Exp
Yes
No
DoF
Yes
$ 1,364.00
Increase for previously authorized FY25
PMP Projects
5-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 125,000.00
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 7,679.00
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 37,856.00
Increase for previously authorized FY25
PMP Projects
S-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 1,364.00
Increase for previously authorized FY25
PMP Projects
5-20
Street Maintenance (PMP)
Engineering
CIP - Construction
Exp
Yes
No
DoF
Yes
$ 1,023.00
Increase for previously authorized FY25
PMP Projects
S-17
Street Maintenance (PMP)
Public Works
DNUBudgetOnly - CIP Cap
Prjcts
Exp
Yes
No
DoF
Yes
$ 4,157,388.00
CIP Budget Carryover Clean -Up
5-17
Street Maintenance (PMP)
Public Works
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 986,135.00
CIP Budget Carryover Clean -Up
Street Maintenance (PMP) Total Net
Expense / (Revenue)
Ex. Total
$ 7,300,511.00
$ 7,300,511.00
Staff Approved Budget Adjustments
FY25
Budget Adjustment Report - July 2025
Attachment 1
5-17
Traffic Facilities (DIF)
Engineering
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF 1
Yes
$ 10,000.00
CIP Budget Carryover Clean -Up
5-19
Traffic Facilities (DIF)
Engineering
CIP-Capital Projects
Exp
Yes
No
DoF
Yes
$ 250,000.00
Increase Project Funding for SBCTA
Reimbursement Agreement - Wildwood
Canyon Rd
5-17
Traffic Facilities (DIF)
Public Works
BUDGET ONLY - CIP
Carryover
Exp
Yes
No
DoF
Yes
$ 11,675,252.00
CIP Budget Carryover Clean -Up
Exp Total
$ 11,935,252.00
S-19
Traffic Facilities (DIF)
Engineering
CIP-Capital Projects
Rev
Yes
No
DoF
Yes
$ 250,000.00
Increase Project Funding for SBCTA
Reimbursement Agreement - Wildwood
Canyon Rd
Rev Total
$ 250,000.00
$ 11,685,252.00
Traffic Facilities (O1F) Total Net Expense
/ (Revenue)
ATTACHMENT 2
City Council, July 28, 2025
Budget Adjustment Report
Attachment 2
Rollover Budget Adjustments
Decreasing in FY25 and Increasing in FY26
General Fund
• A budget adjustment is necessary to increase the YPAC operating expense budget by $13,000 in FY26 for the refinishing of the flooring that wasn't performed until FY26. A compensating decrease in FY25 is being requested as well. • A budget adjustment is necessary in FY25 to decrease the Parks and Facilities Maintenance operating expense budget by $174,276 and increase the transfer -out budget by the same amount to the General Capital Projects Fund, where the capital outlay budget is to be increased in FY26 by the same amount. Chillers ordered in FY25 will not be delivered until FY26 when they will be spent out of the General Capital Projects Fund. • A budget adjustment is necessary in FY25 to increase the transfer -out budget in the amount of $198,786, to the General Capital Projects Fund where the Parks and Facilities Maintenance capital outlay expense budget will be increased in FY26 by the same amount. The generator that was authorized for purchase in FY25 will not be delivered until FY26 when it will be spent out of the General Capital Projects Fund.
General Capital Projects Fund
• A budget adjustment is necessary in FY26 to increase the Parks and Facilities Maintenance capital outlay budget by $174,276 for chillers ordered in FY25 that will not be delivered until FY26 (mentioned above under "General Fund"). • A budget adjustment is necessary in FY26 to increase the Parks and Facilities Maintenance capital outlay expense budget by $198,786 for the generator authorized in FY25 that won't be delivered until FY26 (mentioned above under "General Fund").