The San Bernardino City Council unanimously OK’d the 2026-27 Operating Budget and 2027-2031 Capital Improvement Plan totaling $329.5 million with a deficit of more than $11 million between expected revenue and spending.
The council’s 7-0 vote on June 17 for the budget that will direct spending during the fiscal year that begins July 1 totals $318.2 million in revenues and $328.5 million in expenditures across all funds, according to a report by Tarik Rahmani, the director of the city’s Finance and Management Services Department. The budget also includes $9.9 million for infrastructure upgrades and repairs.
“The General Fund remains financially stable with projected spendable reserves of approximately $104.9 million, exceeding the City’s reserve policy requirements,” according to the report. “However, the budget continues to reflect structural challenges driven by slowing revenue growth, increasing personnel and operational costs, and the City’s reliance on economically sensitive revenue sources such as Sales and Use Tax and Measure S.”
Officials said the budget maintains essential services for residents, “invests in community priorities” and preserves the city’s strong financial position in spite of the current uncertain economic environment.
“San Bernardino continues to make responsible investments in the services and infrastructure our residents depend on every day while maintaining strong financial reserves,” Mayor Helen Tran said in a statement. “This budget reflects our commitment to public safety, streets, parks, libraries, homelessness solutions, and long-term fiscal sustainability. We are planning carefully for the future while continuing to deliver results for our residents.”
San Bernardino and many local governments statewide and throughout the nation continue to face long-term challenges related to increasing costs and revenue sources heavily dependent on retail activity and consumer spending.
Officials said San Bernardino’s budget continues funding for critical city services such as police, parks and recreation, library services, The Public Works Department, code enforcement, economic development and homelessness response efforts. Funding will support year-round recreation programming, special events and ongoing investments in quality-of-life initiatives for neighborhoods.
Council members also approved continued funding for the Capital Improvement Program, which includes approximately $165 million in active capital projects entering fiscal year 2026-27. CIP funds pay for infrastructure projects such as street rehabilitation, park improvements and shelter for city residents experiencing homelessness.
Officials said that despite the budget’s projected gap between recurring revenues and expenditures, the city’s level of reserve funds remain strong and Tran and council members “recognized the need for continued discipline and efforts to diversify and grow the City’s revenue base over time.”
During the budget hearing June 17, the council voted to appropriate $1 million from the Cultural Development Fund for arts initiatives, which demonstrated the a commitment to supporting arts and culture as part of San Bernardino’s ongoing revitalization efforts, officials said. Council members will consider future spending decisions and actions related to arts and cultural programs, including possibly establishing an Arts and Culture Committee.
The proposed Fiscal Year 2026-27 Budget and Budget in Brief are available on the city’s website via tinyurl.com/yur8a4mn with detailed information on revenues, expenditures, infrastructure spending and spending priorities for city departments. The finalized budget documents will be available online and in city libraries in August, officials said.
