The city of Riverside’s proposed 2026-2028 budget, including millions of dollars in proposed spending cuts designed to offset drops in revenue, will be reviewed next week by the city’s Budget Engagement Commission.
The commission is scheduled to meet Thursday. The City Council is scheduled to consider the budget on May 19, with budget approval scheduled for June 23.
City officials said the proposed budget includes a series of cost-cutting measures in response to slowing revenue growth — including property taxes, sales taxes, utility users’ taxes, franchise fees and other sources of revenue.
“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 Manager Mike Futrell said in a statement. “City finances remain strong, and the measures proposed in this budget will keep them that way.”
General Fund revenues are projected to decrease by $8.1 million in 2026-27 and $9.1 million in 2027-28. At the same time, expenditures are projected to increase by $19 million in 2026-27 and $25 million in 2027-28, according to the city.
“The current outlook marks a reversal from several years of robust revenue growth from both one-time and ongoing revenue sources. Revenue growth has slowed; expenses continue to escalate. To respond, staff has recommended total cost reductions of $17.95 million in 2026/27 and $22.27 million in 2027/28 across the General Fund and Measure Z, all while mitigating service interruptions,” city officials announced.
City officials stressed that the city remains in a strong overall financial position with record reserves.
“Reserves are largely untouched to safeguard against a potentially more severe economic downturn, while maintaining flexibility to adjust spending in future years should revenue exceed current projections,” according to the city.
More detailed information on the proposed budget and spending cuts can be found on the Budget Engagement Commission agenda at riversideca.legistar.com/Calendar.aspx.