Riverside officials announced on Apr. 13 that the city’s general fund is expected to face a significant shortfall over the next two fiscal years, with revenues projected to decrease by $8.1 million and $9.1 million respectively.
The anticipated drop in revenue comes as Riverside also expects spending to increase by $19 million in fiscal year 2026/27 and $25 million in 2027/28, according to a statement posted on the city’s website. This situation raises concerns about how the city will balance its budget while maintaining essential services.
The city’s statement said, “Riverside maintains a strong financial position with record reserves, but faces increasing uncertainty driven by slowing revenues and rising costs, calling for prudent but immediate action.” The proposed budget includes reductions across several revenue sources such as property taxes, sales taxes, utility users’ taxes and franchise fees. At the same time, Riverside must address higher payroll expenses along with increased healthcare and benefits costs, pensions obligations, claim liabilities and other critical needs.
Despite these challenges, officials say reserve funds will mostly remain untouched as a safeguard against more severe economic downturns. City Manager Mike Futrell said in the statement: “This budget represents hundreds of hours of work by city staff and reflects important input from our community, both in person and through an online survey. City finances remain strong, and the measures proposed in this budget will keep them that way.”
The Riverside City Council is scheduled to consider the proposed budget on May 19 before holding a final vote on June 23.
