Item No. 8
STAFF REPORT
DATE: July 27, 2026
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager i�^�
PREPARED BY: Hrant Manuelian, Director of Finance kK
Ryan Blackerby, Deputy Director of Finance 101V
SUBJECT: Budget Adjustment Report — July 2026
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); or
3. Provide further direction to staff.
BACKGROUND/DISCUSSION:
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.
StaffApproved Approved Budget Adjustments (Attachment 1) Attached is a summary of budget adjustments approved by staff, consistent with the authority levels that were approved and delegated by Council in the City's Budget Policy (Resolution 2026- 21). These types of adjustments are primarily movements between spending classifications and typically do not increase total spending authorizations. Technical budget adjustments are necessary to keep the system reconciled to the City Council adopted budget document. While technical budget adjustments occur throughout the year, they are technical in nature, do not alter previously authorized budget and therefore are not presented in the attachments.
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 FY 2025/2026 budget but not delivered until the subsequent fiscal year are systematically blocked from being paid in FY 2025/2026, consistent with accounting principles for financial reporting. To continue operations, budget is removed from FY 2025/2026 and "rolled over" to FY 2026/2027 to allow for payment. Rollover budget adjustments represent an increase in spending authorization in FY 2026/2027 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.
Attachment(s):
1. FY 2025/2026 Staff Approved Budget Adjustments
2. Rollover Budget Adjustments Requiring Council Approval
ATTACHMENT 1
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ATTACHMENT 2
City Council, July 27, 2026
Budget Adjustment Report
Attachment 2
Rollover Budget Adjustments
Decreasing in FY26 and increasing in FY27
General Fund
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Parks & Facilities Building Repair and Maintenance account by $28,026 for material delays that pertain to the partition wall replacement at the Community Center. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Economic Development Printing and Advertising account by $561 for city facility directional signs that are expected to be delivered in FY 2026-2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Parks & Facilities Lease Expense account by $14,817, and an increase to the Streets & Highways Lease Expense by $21,871, for three city vehicles expected to be delivered in FY 2026-2027 that pertain to the Vehicle Lease Program. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Aquatics Equipment Repair and Maintenance account by $7,301 for the mandatory ADA lift that is expected to be delivered in FY 2026-2027.
A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
• A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the YPAC General Supplies account by $3,342 for pallet racks expected to be delivered in FY 2026-2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Senior Services Special Supplies account by $4,188 for the repair of the Chrysler Voyager van used for the Golden Wheels Transportation program. Repairs were completed in FY 2026-2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
City Council, July 27, 2026
Budget Adjustment Report
Attachment 2
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Community Services Special Events Expense account by $131,383 for the July 4th Freedom Fest event expenditures. These expenditures were budgeted in FY 2025-2026 for planning and procurement purposes; however, the related services were performed in FY 2026-2027, and therefore, must be recorded in the current fiscal year. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
Public Safety Fund
A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Paramedic Services Special Supplies account by $7,779 for paramedic supplies that had an anticipated delivery date in FY 2025-2026 but were not received until FY 2026-2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
• A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Fire Protection Services Vehicles > $1 Ok account by $63,171 for the build of the Chief's truck that is expected to be completed in FY 2026- 2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
* A budget adjustment is necessary in the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Fire Protection Services Fire Incident Expense account by $28,195 for fire engine hoses that are expected to be delivered in FY 2026-2027. A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.
• That City Council authorize an amendment to the FY 2026-2027 Annual Operating Budget to increase the expense budget in the Fire Protection Services Special Supplies account by $906 for an air compressor that is expected to be delivered in FY 2026-2027.
A compensating decrease in the FY 2025-2026 Annual Operating Budget is also being requested.