Waive the full reading and adopt by title only, "Joint Resolution of the City Council of the City of Banning, the Banning Utility Authority, and the Successor Agency of the City of Banning Approving and Adopting the Annual Operating Budget for Fiscal Year 2026/2027" and Approve the Authorized Position List
The City of Banning must adopt an operating budget each fiscal year. The Fiscal Year 2026-27 budget covers the period July 1, 2026, to June 30, 2027. Pending adoption of the budget, the City Council adopted Resolution 2026-89, which authorized the continuation of City expenditures through September 30, 2026.
On May 14, 2026, the City Council held a workshop on Banning's Workout Plan to Fiscal Sustainability. On June 23, 2026, the City Council adopted Resolution 2026-102 declaring a fiscal emergency. The Fiscal Year 2026-27 budget has been developed in conjunction with the Workout Plan to Fiscal Sustainability.
Duly noticed public budget workshops were held on August 18, 2026, August 20, 2026, August 26, 2026, and September 10, 2026, to discuss the development of the Fiscal Year 2026-27 budget.
Budget Overview
The Fiscal Year 2026-27 Operating Budget includes the City's General Fund, its Enterprise funds, and its other funds. Revenues and expenditures for Fiscal Year 2026-27 are as follows:
| Fund Group | Revenues | Expenditures |
| General Fund | $33,025,659 | $33,013,822 |
| Enterprise Funds | $111,211,136 | $88,380,774 |
| Other Funds | $26,133,837 | $24,567,960 |
| All Funds | $170,370,633 | $145,962,556 |
In addition to the General Fund, many funds support operations. The other funds are segregated into separate funds, and must be used for specific purposes. These other funds include Enterprise funds, grant funds, and restricted funds. Most of these funds support programs and may be transferred into the funds that make the expenditures.
Adoption of the annual budget establishes the City's legal authority to appropriate and expend funds for operations and services during the fiscal year. Until the City adopts a budget, its authority to make expenditures rests on Resolution 2026-89, which expires on September 30, 2026. Adoption of Resolution 2026-131 provides for the orderly continuation of City services without interruption.
Because the Fiscal Year 2026-27 budget has been developed in conjunction with Banning's Workout Plan to Fiscal Sustainability, its adoption also provides the framework within which the City Council and staff will monitor and manage the City's finances during the declared fiscal emergency.
Adoption of the Fiscal Year 2026-27 Operating Budget of Expenditures establishes the City's legal expenditure authority for operations and services for the fiscal year. The adopted budget provides for total expenditures (all funds, including transfers) of $145,962,556, as stated in Resolution 2026-131. Expenditures made under the continuing resolution since July 1, 2026, will be applied against the appropriations adopted by the resolution and do not increase the total appropriated.
The City Manager, through the Finance Department, will report to the City Council on revenues, expenditures, and estimated year-end fund balances throughout the fiscal year, and will recommend any financial actions necessary to meet the adopted budget's financial planning and goals.
Staff will present the Capital Improvement Plan Budget to the City Council for adoption consideration next month.