TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: LINDA REICH, CITY MANAGER AND KIM SAO, DIRECTOR OF FINANCE
SUBJECT
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Fiscal Year 2025-26 Proposed Budget.
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RECOMMENDATION
recommendation
Discuss and provide direction on the City of Chino Fiscal Year (FY) 2025-26 Proposed Budget and Five-Year Capital Improvement Program (CIP) Budget.
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FISCAL IMPACT
A copy of the FY 2025-26 Proposed Budget Package will be presented for review and approval by the City Council.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further 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
In June 2023, the City Council adopted its first Biennial Budget for FY 2023-24 and FY 2024-25, aiming to enhance long-term fiscal planning and align financial decisions with strategic priorities. The intent was to provide greater financial stability and predictability while allowing the City The Council and staff to focus on broader initiatives over a two-year cycle.
For the upcoming budget cycle, the City is reverting to a one-year budget format due to significant operational uncertainties that challenge the reliability of multi-year financial projections. Key factors influencing this decision include:
* Volatility in Revenue & Expenditures - Economic fluctuations, legislative changes, and evolving market conditions impact revenue streams and cost structures, making long-range forecasting less predictable for a growing City like Chino.
* Operational Adjustments - Departments require greater flexibility in adapting to shifting operational demands, regulatory updates, and service delivery expectations.
* Efficiency in Budgetary Oversight - A one-year budget allows for more precise financial monitoring, timely adjustments, and improved responsiveness to emerging fiscal ...
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