Recent polling shows voters narrowly support Prop. 40 — the billionaire tax — and two measures designed to kill it.
Weekly police update also includes two teens detained in a vehicle burglary and two DUI arrests
After Grayson Davalos arrived at just 31 weeks, his parents leaned on the expertise and compassion of Redlands Community Hospital's NICU team during a month-long stay that changed their lives.
New labor costs are forcing the city to revisit a budget adopted in June, with reductions proposed across departments and another $4.5 million in annual cuts planned beginning in 2029.
REDLANDS, Calif. — Redlands is preparing another round of budget cuts after newly approved labor agreements added $1.2 million in recurring costs to the city's General Fund.
The City Council reviewed the city's financial outlook during a special meeting Sept. 21, less than three months into the two-year budget that took effect July 1.
Why it matters: When the council adopted its fiscal 2027-28 budget June 16, negotiations with the city's nine employee bargaining units had not been finalized. The latest proposal calls for additional cuts to public safety overtime, tree-trimming and some part-time staff positions. The proposed cuts follow approximately $4 million in cumulative reductions already made across fiscal years 2026, 2027 and 2028.
Without additional reductions, city projections show the General Fund balance falling to about $11 million over the six-year forecast, compared with roughly $20 million projected under the budget adopted in June.
"We are where we are because we made the decisions on the investment into our employees. We made the investment into these capital improvement projects," Mayor Marios Saucedo said. "And we, as a council, are going to have to do the hard work since we're the ones that approved this."
After labor negotiations were finalized, the agreements added $1.2 million in recurring General Fund costs beyond what had been budgeted for fiscal 2027. The additional cost grows to about $1.4 million in fiscal 2028.
To offset the additional labor costs, staff is recommending another $1.2 million in reductions for the current fiscal year, including:
The police and fire overtime reductions would come on top of reductions already included in the adopted budget.
City Manager Charles Duggan said he asked both departments whether they could absorb the latest reductions while continuing to provide current services, including public safety staffing for certain community events.
"Unless something else really big happens, homicide, natural disaster that forces a lot of overtime in the police or fire area, we think that while it's kind of razor thin that we can cover the in-kind services for this year," Duggan said.
A local wildfire or major criminal incident could consume those overtime resources, he said.
The overtime cuts also prompted questions about whether the city can continue providing city-funded police, fire and other services for community events.
In April, the City Council limited eligibility for in-kind city support to 38 established events after the annual cost reached about $534,000, including roughly $483,000 in direct costs largely driven by public safety overtime.
Council Member Paul Barich said he would support approaching nonprofit organizations about covering some of those costs, even if they were not asked to pay the full amount.
Saucedo warned that the city's financial outlook may require difficult decisions even about events council members personally support.
"Some of us have certain special events that are close to our heart, but at some point in time, we're going to have to make some hard decisions," Saucedo said.
No changes to the city's in-kind event policy were approved.
The city entered fiscal year 2027 in July, facing slower revenue growth, rising operating costs and new debt payments for several major capital projects.
The largest is the city's new police station at the former Kmart property on West Redlands Boulevard, estimated to cost approximately $78 million. About $58 million of the city's recently approved borrowing is earmarked for the project, with roughly $20 million coming from city reserves and another $500,000 from development impact fees.
The same financing package allocates approximately $15 million for the relocation of Fire Station 264 and $1.5 million for HVAC improvements at A.K. Smiley Public Library. Together, the projects are part of a financing package of up to $85 million approved in June, with annual debt payments expected to reach about $5 million beginning in fiscal year 2029.
To make room for those commitments and anticipated higher labor costs, officials made approximately $4 million in cumulative reductions across fiscal years 2026 through 2028, including cuts to tree trimming, police and fire overtime, contract code enforcement and departmental services and supplies.
At the same time, the adopted budget included about $3.18 million in material supplemental requests, including $1.1 million for new positions and reclassifications, $750,000 for city special events and decor, $402,624 to lease 17 Police Department vehicles, $400,000 for a paramedic squad vehicle, $295,230 for parks equipment and $237,877 in debt service for Fire Department equipment.
Some personnel costs were absorbed within departmental budgets, while funding for special events was reduced from an original $1.14 million request.
The latest cuts will not resolve the city's longer-term budget challenges.
The $1.2 million in fiscal 2027 reductions will generally carry forward into fiscal 2028, when the city expects to need roughly another $200,000 in savings as labor costs increase.
Another $4.5 million in ongoing reductions is planned beginning in fiscal year 2029 because the city is currently using reserves to cover about $4.5 million in recurring expenses.
"Unfortunately, that is a well that we cannot go to forever," Duggan said.
The city plans additional financial reviews before developing its next two-year budget, including an assessment of essential city services and a broader revenue review.
The budget constraints are already affecting other city plans. During the same meeting, staff recommended against moving forward with a proposed 140-space downtown parking lot after the city spent about $104,000 evaluating and designing the project. Construction was estimated at another $650,000, and purchasing the property would cost more than $1 million. Council members indicated they did not want staff to continue pursuing a lease for the property.
The council did not formally approve the proposed reductions Sept. 21. They will return for approval as a future budget adjustment.
Sign up for our weekly newsletter
