For City Council Meeting June 10, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Scott Williams, Director of Finance
Title
Request City Council to Set a Public Hearing for June 24, 2025, to Approve and Adopt the Budget Plan for Fiscal Year 2025-2026.
Body
RECOMMENDATION:
Staff recommends that the City Council set a Public Hearing for June 24, 2025, to approve and adopt the Budget Plan for Fiscal Year 2025-26.
BACKGROUND:
In accordance with Section 2.04.140 of the Rialto Municipal Code, the City Manager must present the fiscal budget to the City Council for approval annually. Under the direction of the Director of Finance, the Budget Division is responsible for analyzing data and making the financial projections necessary to complete the annual budget document. This process begins in March and relies on input and collaboration from staff across all City departments.
The Director presented a draft of the Fiscal Year 2025-26 Budget to the City Manager, Assistant City Manager and City Department Heads. This budget document serves as a working tool and is amended as needed throughout the fiscal year through various City Council actions.
ANALYSIS/DISCUSSION:
Staff recommends City Council to establish a date for a public hearing regarding the proposed budget for the upcoming 2025-2026 Fiscal Year.
General Fund
The General Fund serves as the primary operating fund of the City. It accounts for all general tax receipts and fee revenues that are not legally, contractually, or by Council policy allocated to other specific funds. Expenditures from the General Fund support the core operations and services of the City that are not required to be funded through other designated funds.
Special Revenue Funds
The City’s various special revenue funds include grant program funds and other funds that by law are required to be segregated.
Enterprise Funds
The City has three Enterprise funds: Cemetery, Community Services, and Utility Services.
Internal Service Funds
The City has two internal service funds. These internal service funds centralize certain services that benefit all functions of the City. The expenditures of the internal service funds are allocated to all the City’s departments commensurate to the services provided.
The two internal service funds are:
• Workers’ Compensation
• General Liability
Rialto Utility Authority
The Rialto Utility Authority (RUA) accounts for Water and Wastewater Services provided by Rialto Water Services.
The Rialto Housing Authority
The Rialto Housing Authority (RHA) assumed the housing functions of the former Redevelopment Agency.
Capital Projects Funds
The Capital Projects Funds were added in fiscal year 2014-15 to enhance transparency by reporting one-time capital expenditures in a separate fund.
Debt Service Funds
The Debt Service Funds account for the accumulation of funds for the payment of principal and interest on financing instruments.
ENVIRONMENTAL IMPACT:
The action is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15378(b) (5) of the CEQA Guidelines because the preparation of a budget plan is a governmental administrative activity that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Goal 3-6: Require that all developed areas within Rialto are adequately served with essential public services and infrastructure.
Policy 3-6.1: Coordinate all development proposals with other affected public entities to ensure the provision of adequate public facilities and infrastructure services.
Policy 3-6.3: Require an increasing level of public safety infrastructure and service capability tied to population increase and increasing service demand.
Policy 3-6.4: Complete infrastructure master plans for sewer, water, and drainage.
Policy 5-3.7: Add service level capability and infrastructure to meet increasing demand of new development.
LEGAL REVIEW:
The City Attorney has reviewed and approved the staff report.
FINANCIAL IMPACT:
Appropriations for fiscal year 2025-26 for the City, Rialto Utility Authority, and Rialto Housing Authority provide the basis for City operations and capital expenditures.