Item No. 1
STAFF REPORT
DATE: June 8, 2026
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
, I Al
PREPARED BY: Ryan Blackerby, Interim Director of Finance (�d SUBJECT: Fiscal Year 2026-27 Budget Workshop
RECOMMENDATION:
That the City Council:
1. Review and discuss the City of Yucaipa Fiscal Year 2026-27(FY 26/27) Draft Budget; and
2. Provide further direction to staff.
BACKGROUND/DISCUSSION:
On Monday, April 6, 2026, the City Council held a budget workshop at the Yucaipa Performing Arts Center for the purpose of discussing the upcoming FY 26/27 Draft Budget. The direction to staff was to present a balanced budget and provide additional resources for Public Safety and Road Maintenance.
At the May 11, 2026 City Council Meeting, Councilmember Miller suggested an additional Budget Workshop to allow additional time for Council to review and discuss the FY 26/27 Draft Budget.
After months of preparation, staff presents the FY 26/27 Draft Budget, with a focus on the City's primary operating funds: the General Fund and the Public Safety Fund. In this Draft Budget, the General Fund is currently presented as balanced, with projected inflows and outflows totaling $46.6 million. The Public Safety Fund includes $34.2 million in projected inflows and $35.5 million in projected outflows, reflecting the use of fund balance to support major capital purchases. The inflows to the Public Safety Fund do include, however, a $5.7 million transfer -in from the Fire Fund which is needed to meet additional operating and capital needs, resulting in a continued reduction in the Fire Fund balance as well.
Attached for review are: (1) a FY 26/27 Draft Budget Summary page, which presents all budgetary inflows and outflows for each of these primary operating funds, and (2) a 3-Year Original Budget Comparison for each Revenues and Expenses (does not include transfers) for the same funds.
FISCAL IMPACT:
The recommendations do not result in a fiscal impact.
Attachment:
1. FY 26/27 Draft Budget Summary page
2. 3-Year Original Budget Comparison for each Revenues and Expenses
ATTACHMENT 1
FISCAL YEAR 2026-27 DRAFT BUDGET SUMMARY
General Fund & Public Safety Fund I by Character Code
City of Yucaipa Draft Budget Workshop I June 8, 2026
FY27 DRAFT Budget
GENERAL FUND
FY27 DRAFT Budget
PUBLIC SAFETY FUND
Inflows (as negatives)
$
(46,633,169)
Inflows (as negatives)
$
(34,237,661)
40 Property Taxes
$
(10,555,000)
40 Property Taxes
$
(6,423,000)
41 Sales and Use Taxes
$
(14,800,000)
45 Licenses & Permits
$
(15,000)
42 Franchise Fees
$
(3,760,000)
47 Charges for Services
$
(615,000)
43 Documentary Transfer
$
(200,000)
48 Intergovernmental
$
(156,498)
44 Other Taxes
$
(230,000)
60 Transfer -In (Rev)
$
(27,028,163)
45 Licenses & Permits
$
(1,210,880)
46 Fines & Forfeitures
$
(50,197)
Outflows
$
3S,486,295
47 Charges for Services
$
(3,206,225)
50 Salary Expenses
$
1,298,343
48 Intergovernmental
$
(7,860,000)
51 Other Operating Exp
$
1,875,820
49 Investment Income
$
(1,012,318)
54 Contracted Services
$
26,409,030
4B
Other Revenue
$
(3,313,611)
57 Cost Allocation
$
3,143,102
60 Transfer -In (Rev)
$
(434,938)
58 Capital Expenses
$
2,760,000
Net (Inflows) / Outflows
$
1,248,634
Outflows
$
46,633,169
50 Salary Expenses
$
12,196,308
51 Other Operating Exp
$
5,342,703
PUBLIC SAFETY FUND TRANSFER DETAIL
54 Contracted Services
$
3,790,566
57 Cost Allocation
$
1,472,955
Transfer -Ins (as negatives)
58 Capital Expenses
$
90,000
General Fund
$
(21,272,463)
59 Contingency Expense
$
816,955
Fire Fund
$
(5,743,826)
70 Transfer -Out (Exp)
$
$
22,923,681
-
Misc. Special Revenue Fund
Total Transfer -Ins
$
$
(11,874)
(27,028,163)
Net (Inflows) / Outflows
e1�►1�:L1■iq►IDIN I.T1►&194.904r-11II
Transfer -Ins (as negatives)
Gas Tax Fund $ (399,505)
EIP Fund (subfund, nets to $0) $ (35,433)
Total Transfer -Ins $ (434,938)
Transfer -Outs
Public Safety Fund
$
21,272,463
Self -Insurance Fund
$
1,474,996
Low Water Crossings Fund
$
100,000
Misc. Special Revenue Fund
$
25,790
Street Maintenance Fund
$
15,000
EIP Fund (subfund, nets to $0)
$
35,433
Total Transfer -Outs
$
22,923,681
ATTACHMENT 2
3-Year Original Budget Comparison: REVENUES
General Fund & Public Safety Fund I by Service Line & Character Code City of Yucaipa Draft Budget Workshop I June 8, 2026
Revenues are displayed as negativ nc,
FY25 Original
V$Ch.nge
FY26 Original
$Change
FY27 DRAFT
Budget
FY25 to FY26
Budget
FY26 to FY27
Proposed Budget
General Fundjjjjjj�
$
(35,315,604)
($8,596,956)
$
(43,912,559)
($2,285,671)
$
(46,198,231)
Community
Services
$
(5,776,275)
$3,686,450
$
(2,089,825)
$330,325
$
(1,759,500)
47 Charges for Services
$
(5,776,275)
$3,686,450
$
(2,089,825)
$330,325
$
(1,759,500)
General Government
$
(26,749,582)
($12,552,993)
$
(39,302,575)
($2,685,234)
$
(41,987,809)
40 Property Taxes
$
(9,646,000)
($606,000)
$
(10,252,000)
($303,000)
$
(10,555,000)
41 Sales and Use Taxes
$
(5,605,327)
($6,094,673)
$
(11,700,000)
($3,100,000)
$
(14,800,000)
42 Franchise Fees
$
(1,738,000)
($2,227000)
$
(3,965,000)
$205,000
$
(3,760,000)
43 Documentary Transfer
$
(200,000)
$0
$
(200,000)
$0
$
(200,000)
_
_ 44
Other Taxes
$
(175,000)
$0
$
(175,000)
($55,000)
$
(230,000)
45 Licenses & Permits
$
(166,295)
$130,025
$
(36,270)
$390
$
(35,880)
46 Fines & Forfeitures
$
(46,500)
($4,500)
$
(51,000)
$3,000
$
(48,000)
47 Charges for Services
$
(344,758)
$170,808
$
(173,950)
$450
$
(173,500)
48 Intergovernmental
$
(7,240,000)
($310,000)
$
(7,550,000)
($310,000)
$
(7,860,000)
49 Investment Income
$
(16,000)
($1,073,000)
$
(1,089,000)
$76,682
$
(1,012,318)
413
Other Revenue
$
(1,571,702)
($2,538,653)
$
(4,110,355)
$797,245
$
(3,313,111)
Public
Safety
$
(2,197)
$0
$
(2,197)
$0
$
(2,197)
46 Fines & Forfeitures
$
(2,197)
$o
$
(2,197)
$0
$
(2,197)
Development Services
$
(2,787,549)
$269,587
$
(2,517,962)
$69,237
$
(2,448,725)
45 Licenses & Permits
$
(1,408,119)
$22,779
$
(1,385,340)
$210,340
$
(1,175,000)
47 Charges for Services
$
(1,374,430)
$246,808
$
(1,127,622)
($145,603)
$
(1,273,225)
4B
Other Revenue
$
(5,000)
$o
$
(5,000)
$4,500
$
(500)
Public�ifety Fund
$
(6,070,000)
($668,000)
$
(6,738,000)
W($471,498)
$
209,498)
$
(6,070,000)
($668,000)
$
(6,738,000)
($471,498)
$
(7,209,498)
Public Safety
40 Property Taxes
$
(6,070,000)
($220,000)
$
(6,290,000)
($133,000)
$
(6,423,000)
45 Licenses & Permits
$
-
($18,000)
$
(18,000)
$3,000
$
(15,000)
47 Charges for Services
$
-
($250,000)
$
(250,000)
($365,000)
$
(615,000)
48 Intergovernmental
$
-
($130,000)
$
(130,000)
($26,498)
$
(156,498)
413
Other Revenue
$
-
1 ($50,000)
1 $
(50,000)1
$50,000
1 $
-
Total Revenues
1 $ (41,385,604)
($9,264,956)
1 $ (50,650,559)
($2,757,169)
1 $
(53,407,729)
(p) = is considered "program income" for net cost calculations (P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
(P)
3-Year Original Budget Comparison: EXPENSES
General Fund & Public Safety Fund I by Service Line & Character Code City of Yucaipa Draft Budget Workshop I June 8, 2026
FY25 Original
$Change
FY26 Original
$Change
FY27 DRAFT
Budget
FY25 to FY26
Budget
FY26 to FY27
Proposed Budget
General Fund
$ 23,238,801
($1,043,406,
$
22,195,395
$1,514,092
$
23,709,487
$
7,668,094
$715,071
$
5,208,069
Community Services
($3,175,096)
$ 4,492,998
50 Salary Expenses
$
4,464,228
($1,961,462)
$
2,502,766
$474,948
$
2,977,714
_
51 Other Operating Exp
$
2,118,525
($1,191,425)
$
927,100
$155,096
$
1,082,196
_
54 Contracted Services
$
726,600
$105,600
$
832,200
($47200)
$
785,000
57 Cost Allocation
$
358,741
($127809)
$
230,932
$132,227
$
363,159
General Government
$
6,633,954
$1,182,904
$
7,816,858
($1,282504)
$
6,534,354
50 Salary Expenses
$
3,764,332
($267595)
$
3,496,737
$148,269
$
3,645,006
51 Other Operating Exp
$
1,012,865
($228,432)
$
784,433
$98,971
$
883,404
54 Contracted Services
$
1,275,440
($88,280)
$
1,187,160
($364,280)
$
822,880
57 Cost Allocation
$
381,317
($32,789)
$
348,528
$17,581
$
366,109
59 Contingency Expense
$
200,000
$1,800,000
$
2,000,000
($1,183,045)
$
816,955
Development Services
$
8,936,753
$948,786
$
9,885,539
$2,081,525
$
11,967,064
50 Salary Expenses
$
3,929,284
$190,044
$
4,119,328
$1,454,260
$
5,573,588
51 Other Operating Exp
$
2,168,205
$832,505
$
3,000,710
$376,393
$
3,377,103
_
54 Contracted Services
$
2,099,529
($47,543)
$
2,051,986
$130,700
$
2,182,686
_
57 Cost Allocation
$
739,735
($86220)
$
653,515
$90,172
$
743,687
58 Capital Expenses
$
-
$60,000
$
60,000
$30,000
$
90,000
Public Safety Fund
$
23,520,956
$6, 1
$
30,437,687
08 ($91,432)
$
$
35,486,295
2,895,961
General Government
$ 457,414
$2,529,979
$ 2,987,393
50 Salary Expenses
$
252,684
$39,666
$
292,350
($66,925)
$
225,425
51 Other Operating Exp
$
14,600
$3,600
$
18,200
($4,000)
$
14,200
54 Contracted Services
$
-
$0
$
-
$10,000
$
10,000
57 Cost Allocation
$
190,130
$2,486,713
$
2,676,843
($30,507)
$
2,646,336
Public
Safety
$
22,780,682
$4,383,952
$
27,164,634
$5,086,550
$
32,251,184
50 Salary Expenses
$
138,475
$725,540
$
864,015
$208,903
$
1,072,918
51 Other Operating Exp
$
811,000
$277,674
$
1,088,674
$525,626
$
1,614,300
54 Contracted Services
$
20,971,087
$1,342,467
$
22,313,554
$3,993,646
$
26,307,200
57 Cost Allocation
$
860,120
($494,471)
$
365,649
$131,117
$
496,766
58 Capital Expenses
$
-
$2,532,742
$
2,532,742
$227,258
$
2,760,000
Development Services
$
282,860
$2,800
$
285,660
$53,490
$
339,150
51 Other Operating Exp
$
202,160
$0
$
202,160
$45,160
$
247,320
54 Contracted Services
$
80,700
$2,800
$
83,500
$8,330
$
91,830
Grand Total
$ 46,759,757
$5,873,325
$
52,633,082
$6,562,700
$
59,195,782
(1) $2.4 million in Public Safety Capital Expenditures was budgeted in FY26 but will not be spent until FY27.
This $2.4 million is reflected in both FY26 and FY27 in this report but will only be spent once, in FY27. (1)