Upland, CA — With a projected $1.7 million drop in sales tax revenue, Upland city officials on April 28 began deliberating over $676,000 in proposed budget cuts and revenue increases for the upcoming 2025-26 fiscal year.
The adjustments, first presented at a special City Council meeting, stem from an updated forecast provided by the consulting firm HDL and reflect declining economic activity in key sectors like auto sales, fuel and construction.
The revised forecast comes just months after city departments were directed in February to find areas for potential savings or increased income to reallocate toward infrastructure needs.
Instead, the new revenue shortfall means those proposals will now be used to help balance the city’s general fund.
Finance Manager Staci Sullivan told the council, “We received updated sales tax projections from HDL, which are estimating our sales tax will decrease by approximately $1.7 million compared to our original budget.” She added, “Staff is recommending that the proposed reductions and revenue increases be applied to closing the current gap between revenue and expenditures.”
Assistant City Manager Stephen Parker said the total adjustments would improve the city’s financial position by $676,306. That would leave approximately $1 million still to be accounted for before the final budget is adopted in June.
While most of the proposed savings came from administrative and departmental cutbacks,including reductions in advertising, travel, equipment and legal services, some council members raised concerns about recommendations that would impact public safety.
One proposition was to end the city’s contract with Allied Universal, a private service that transports arrestees to jail, freeing police officers to stay on patrol.
Eliminating the contract would save $243,860, but Police Chief Darren Goodman said it would be equivalent to removing 2.5 officers from the streets.
Mayor Bill Velto echoed that sentiment, noting, “The health, safety, and well-being of the community is the most important thing. We should keep that in mind as we’re looking at the budget.”
The council ultimately decided to delay taking action until a May 19 workshop, allowing more time for review and public input.
Among the proposed changes were significant cutbacks in the Police Department’s legal and professional services, which Chief Goodman explained include DNA testing and misdemeanor prosecutions not handled by the District Attorney’s office.
Goodman also said that the department routinely returns unspent funds to the city, nearly half a million dollars last year, as evidence of fiscal responsibility.
The Recreation Department also recommended scrapping National Night Out, the Summer Family Campout, and elements of the Hometown Holiday event, which together would save over $24,000.
In total, city departments submitted proposals amounting to over $450,000 in expenditure cuts and nearly $225,000 in new revenue, largely through development fees, parking fees and adjustments to recreation program pricing.
Meanwhile, some additional suggestions, such as cutting the body-worn camera program, were listed but not recommended due to their potential impact on safety and quality of life.
“I think what has changed since February is now we know we’re in a deficit,” Councilmember Rudy Zuniga said. “This list is not optional anymore. It’s become critical to balance our budget.”
Finance officials said further adjustments will be considered based on revenue performance and reserve policy changes.
The mayor directed staff to continue refining the budget ahead of the May 19 workshop and explore alternatives to cutting key services.
“We have to be real careful as we go through the entire list,” Velto said. “We still have to come up with a million dollars, and we can’t do that at the expense of the public’s safety.”
The council is expected to adopt a final mid-cycle budget by June 23.
