TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER
SUBJECT
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Fiscal Year 2026-2027 Budget Adoption.
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RECOMMENDATION
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1) Adopt Resolution No. 2026-039, approving the Fiscal Year (FY) 2026-27 Proposed Budget and 5-Year Capital Improvement Program; 2) adopt Resolution No. 2026-040, approving the Appropriations Limit for Fiscal Year 2026-27; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Refer to the FY 2026-27 Proposed Budget document (Attachment 1).
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Financial Stability
• Responsible Long-Range Planning
BACKGROUND
On June 2, 2026, the City Council held a Budget Workshop where staff presented an in-depth review of the FY 2026-27 Proposed Budget. The budget review will continue on June 16, 2026, presenting any modifications made to the budget and a final recap of the Proposed Budget for FY 2026-27.
ISSUES/ANALYSIS
During the Budget Workshop on June 2, 2026, staff informed the City Council that revisions to the Development Impact Fee (DIF) revenue projections were necessary to avoid overstating anticipated revenues. The original estimate of $20,052,689 reflected projected development activity for the year; however, after applying $16,492,441 in anticipated developer credits and adjusted interest earnings, the revised revenue projection for DIF is $3,560,248. These adjustments are summarized in the table below.
Estimated Revenue Adjustments
Carryover for Incomplete and Ongoing Projects
As of June 30, 2026, many multiyear projects are expected to remain incomplete, and the unused budget for those projects will be carried into the next fiscal year. The budget includes an estimated $126,421,484 in carryover funding for ongoing project work, all of which will be supported by available fund balance rather than the FY 2026-27, operating budget. The carryover process returns unused appropriations to fund balance at year-end, making those resources available again in the following year so capital and operational projects can continue without interruption. As part of the year-end closeout, and once all current-year invoices have been processed, staff will roll forward the actual remaining project balances into FY 2026-27, to ensure seamless continuation of work without requiring additional Council action.
Appropriations (GANN) Limit
Article XIII-B of the State Constitution (as amended by Proposition 111) requires the City to adopt an annual limit on the appropriation of tax proceeds, which defines the amount of tax revenues the City can allocate in a given year. For FY 2026-27, the City’s appropriations limit has been calculated in accordance with State guidelines. This calculation was made by using the Per Capita Personal Income change at 4.95% and the City’s annual population change of .42%, which is in accordance with the provisions of Article XIII-B of the State Constitution.
The appropriations limit for FY 2026-27, for the City of Chino is $3,983,521,495.78. Tax revenue budgeted for this fiscal year that is subject to the appropriations limit is $120,555,758.40, which places the FY 2026-27, City budget $3,862,965.737.38 under the limit. The difference represents the amount of tax revenue that the City could appropriate if the revenue is available. Resolution No. 2026-040 sets the City’s Appropriations Limit (Gann Limit) for FY 2026-27.
Tonight, staff is pleased to present the FY 2026-27 Budget for City Council's consideration.
Attachments:
1. FY 2026-27 Budget
2. Budget Resolution No. 2026-039
3. GANN Limit Resolution No. 2026-040