REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF the following:
SAN BERNARDINO COUNTY
BOARD GOVERNED COUNTY SERVICE AREAS
SAN BERNARDINO COUNTY FLOOD CONTROL DISTRICT
AND RECORD OF ACTION
REPORT/RECOMMENDATION TO THE BOARD OF DIRECTORS
OF THE FOLLOWING:
Big bear Valley Recreation and Park District
IN-HOME SUPPORTIVE SERVICES PUBLIC AUTHORITY
INLAND COUNTIES EMERGENCY MEDICAL AGENCY
SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT
AND RECORD OF ACTION
October 6, 2026
FROM
LUTHER SNOKE, Chief Executive Officer, County Administrative Office
SUBJECT
Title
2025-26 Year-End Budget Adjustment Report and 2026-27 Budget Adjustments and Personnel Actions
End
RECOMMENDATION(S)
Recommendation
1. Acting as the governing body of San Bernardino County, Board Governed County Service Areas, Inland Counties Emergency Medical Agency, Big Bear Valley Recreation and Park District, and the San Bernardino County Fire Protection District, authorize the Auditor-Controller/Treasurer/Tax Collector to post the adjustments to Appropriation, Revenue, Operating Transfers Out, Use of Available Reserves and Use of Net Position required to finalize the budget for 2025-26, as detailed in the attached 2025-26 Year-End Budget Adjustment Report in Attachment A, allowing for minor technical changes limited to available budget within the budget unit (Four votes required).
2. Acting as the governing body of San Bernardino County, the Board Governed County Service Areas, the San Bernardino County Fire Protection District, San Bernardino County Flood Control District, In-Home Supportive Services Public Authority, and Inland Counties Emergency Medical Agency, accept the Performance Measures section of the Year-End Budget Adjustment Report in Attachment A.
3. Acting as the governing body of San Bernardino County:
a. Accept the 2025-26 Capital Improvement Program Year-End Budget Report included in Attachment A.
b. Approve an allocation of $2,000,000 from the 2026-27 First District’s Board of Supervisors Discretionary Fund - District Specific Priorities Program budget to provide additional funding to the Adelanto Senior Housing Project managed by the County Department of Community Development and Housing.
c. Approve an allocation of $3,300,000 from the Public Works Infrastructure Reserve to fund the Rosena Ranch ADA Ramps I & II Project.
d. Authorize the Auditor-Controller/Treasurer/Tax Collector to post the necessary budget adjustments, as detailed in the 2026-27 Budget Adjustments section of the Year-End Budget Adjustment Report in Attachment A (Four votes required).
e. Approve the following 2026-27 classification actions described in the Position Actions section of the Year-End Budget Adjustment Report in Attachment A:
i. Add new positions.
ii. Establish the classification and salary for the new classification.
iii. Approve Equity Adjustment for existing classification.
f. Direct the Clerk of the Board of Supervisors to amend the County Conflict of Interest Code List of Designated Employees to include the new classification.
g. Approve the recommendation to amend Ordinance No. 1904 by adding two new positions:
i. Consider proposed ordinance amending Ordinance No. 1904, adding Position Number 60499 for the County Chief Management Officer position and Position Number 60500 for the County Chief Operating Officer to the Unclassified Service of the County.
ii. Make alterations, if necessary, to proposed ordinance.
iii. Approve introduction of proposed ordinance.
• An ordinance of San Bernardino County, State of California, to amend Ordinance No. 1904 relating to classified and unclassified service.
iv. SCHEDULE ORDINANCE FOR FINAL ADOPTION ON TUESDAY, OCTOBER 20, 2026, on the Consent Calendar.
(Presenter: Matthew Erickson, County Chief Financial Officer, 387-5423)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally-Responsible and Business-Like Manner.
FINANCIAL IMPACT
The financial impact of this item is provided in detail in the 2025-26 Year-End Budget Adjustment Report (Attachment A), covering fiscal years 2025-26 and 2026-27.
For fiscal year 2025-26, the report facilitates the closing of the 2025-26 budget for multiple County and Board-governed entities, including the County, Inland Counties Emergency Medical Agency, Big Bear Valley Recreation and Park District, the San Bernardino County Fire Protection District, and the Board Governed County Service Areas. Adjustments associated with all entities included in this report are detailed in Attachment A, and include the following:
• The 2025-26 Year-End Budget Adjustment Report recommends increases in Requirements of $77.7 million, increases in Sources of $40.6 million resulting in the net use of Countywide Reserves, Contingencies and Net Position of $37.1 million. It also recommends the approval of transfers of appropriation within the same budget unit totaling $18.3 million.
• The General Fund portion of the requested changes includes increases in Requirements of $46.6 million, increases in Sources of $32.7 million, resulting in the use of $13.9 million of General Fund Reserves and Contingencies.
For fiscal year 2026-27, the Report includes one-time budget adjustments for high-priority projects identified subsequent to the Recommended Budget, including $2.0 million from the First District’s Board of Supervisors Discretionary Fund - District Specific Priorities Program budget for the Adelanto Senior Housing Project and $3.3 million from the Public Works Infrastructure Reserve for the Rosena Ranch ADA Ramps I & II Project.
BACKGROUND INFORMATION
County Budget Financing Policy No. 05-01 (Policy) states that departments are expected to maintain expenditures within their budget authority as adopted by the Board of Supervisors or Board of Directors (collectively the Board). Also provided in this Policy are rules for approval of appropriation changes. Certain transfers of existing appropriation within a budget unit can be approved by the County Administrative Office (CAO). Exceptions are noted in the Policy regarding transfers of appropriation in the Salaries and Benefits, Fixed Assets, and Operating Transfers Out appropriation units, which require Board approval.
These adjustments consist of the use of additional Discretionary General Funding (General Fund Reserves and Contingencies), the use of departmental Reserves, the use of Net Position, changes in Requirements (appropriation) offset by changes in departmental Sources, and appropriation transfers that cannot be approved by the CAO, per the Policy.
Additionally, the report provides year-end updates on 2025-26 adopted performance measures for the identified entities, 2025-26 Capital Improvement Program (CIP) year-end adjustments with a summary of program budgets, and 2026-27 budget and staffing adjustments for high-priority items.
Changes to Reserves and Net Position
All requests for increases to Requirements funded by the use of Reserves (both General Fund and departmental) or the use of departmental Net Position require approval by the Board. The 2025-26 Year-End Budget Adjustment Report recommends the net use of $13.9 million in General Fund Reserves and Contingencies, $188,800 in Net Position, and a net use of $23.0 million in departmental reserves (Attachment A).
Notable changes to the County General Fund Reserves and Contingencies: the 2025-26 Year-End Report reflects a net decrease to General Fund Reserves of $12.9 million and a net increase of $40,832 in General Fund Contingencies, as detailed below:
• Use of $7.5 million of the County’s Earned Leave Reserve is recommended to compensate General Fund departments for the Discretionary General Funding portion of costs incurred for departmental staff who separated from County employment in the second, third and fourth quarters of 2025-26.
• Use of $280,598 of the County’s Labor Reserve is recommended to fund one-time costs incurred in 2025-26 associated with approved Memorandum of Understanding agreements.
• A $2.0 million use of general fund reserves for Sheriff/Coroner/Public Administrator’s Department costs associated with countywide crime suppression efforts and operational enhancements incurred in 2025-26, funded with the use of the Countywide Crime Suppression and Pilot Program Reserve.
• Restricted Revenue Set-Aside Reserve (One-time Contribution of $975,142): An allocation is recommended to the Restricted Revenue Set-Aside Reserve, which represents 2025-26 funds received to be placed in the reserve for future use. This adjustment is funded by an increase in Sources.
• Fire Station Replacement (One-time Use of $1,592,444): An allocation from the Fire Station Replacement Reserve to reimburse eligible costs associated with the Fire Station 226 New Build Project to the San Bernardino County Fire Protection District.
• Children’s Assessment Center Facility Reserve (One-time Use of $2,500,000): An allocation from the Children’s Assessment Center Facility Reserve to replace the previously approved use of General Fund Contingencies for the Loma Linda University contract supporting medical, mental health, and evidentiary examination services, as approved by the Board of Supervisors on October 21, 2025 (Item No. 24).
• An adjustment of $1,369,514 to increase Services and Supplies in the Countywide Discretionary Fund to support the Innovation and Technology Department with Countywide Americans with Disabilities Act compliance efforts, specifically the remediation of documents, funded with General Fund Contingencies.
Changes in Requirements Using Departmental Sources
Where necessary, year-end adjustments may also include increases in Requirements funded by departmental Sources. It is requested the Board approve an increase to Requirements (appropriation) of $31.1 million funded with increases in departmental Sources (Attachment A).
Notable Changes to Requirements and Sources not discussed elsewhere in this item include:
• The Human Services Administrative Claim budget unit (501-1000) is requesting an increase in Requirements and Sources ($22,521,076) to reflect the use of Wraparound Reinvestment revenue to fund additional costs for Children’s and Family Services (CFS) primarily due to growth in the Complex Care program, one-time costs for children’s programs within the Department of Behavioral Health and other CFS programs, as well as slower growth in various revenue streams.
• Additionally, the Foster Care budget unit (505-1002) is requesting an increase ($7,000,000) in Requirements and Sources due to increased costs in the wraparound program and overall state funded programs. The adjustment reflects a slight increase in actuals compared to the budget and will be funded with State revenue.
Appropriation Transfers Within the Same Budget Unit
Appropriation transfers within a budget unit that require approval by the Board include transfers out of Salaries and Benefits, transfers of appropriation to or from Operating Transfers, and Fixed Asset appropriation transfers over specific amounts. Requested transfers of appropriation included in the 2025-26 Year-End Budget Adjustment Report total $18.3 million (Attachment A). Adjustments discussed in this section result in no net impact to Requirements or Sources.
Notable transfers within the same budget unit include:
• Department of Behavioral Health is requesting a $10.0 million increase in Services and Supplies to account for higher-than-expected expenses related to provider services as the department negotiated a new memorandum of understanding with Arrowhead Regional Medical Center for acute psychiatric services that increased expenditures over $20 million. The increase will be supported by a decrease in Salaries and Benefits due to salary savings from hard to fill vacancies.
• Human Services Administrative Claim is requesting a $3.6 million increase in Operating Transfers Out to reclassify expenditures associated with the return of advanced funding to the Office of Homeless Services for the Housing and Disability Advocacy Program, resulting in no net impact to Requirements or Sources.
• The Preschool Services Department (PSD) is requesting a $2.5 million increase in Salaries and Benefits to address higher-than-anticipated personnel costs, funded by reimbursements from PSD’s operations fund. An associated adjustment in the PSD’s operations fund is requested to decrease Services and Supplies and increase Services and Supplies Transfers Out to facilitate the reimbursement.
Discretionary General Funding
Each year, General Fund departments are allocated Discretionary General Funding amounts (Net County Cost) to pay for costs not funded by other resources. The following General Fund budget units exceeded their allocation of Net County Cost for 2025-26:
• The Assessor/Recorder/County Clerk is reporting a net county cost overage of $1,260,867 due to continued declines in Recorder-related fee revenues that exceeded expenditure savings. Although the department achieved cost savings through vacancy management and other expenditure controls, improved hiring has reduced the level of vacancy-related salary savings available to offset ongoing revenue losses. As a result, sustained declines in key Recorder revenues have led to a year-end Net County Cost overage.
• County Counsel is requesting $644,319 in General Fund support to address its 2025-26 budget deficit. The deficit resulted from a combination of lower-than-anticipated fee revenue and increased costs, including staffing shortages that reduced revenue-generating activity, a higher volume of non-billable legal services, and one-time dual-fill costs associated with the County Counsel leadership transition. To address these budget pressures going forward, County Counsel has implemented Board-approved fee increases and is strengthening its financial monitoring of revenues and expenditures to identify and address potential funding gaps earlier.
Recommendation No. 2 recommends the Board accept the Performance Measures section of the Year-End Budget Adjustment Report. Year-End updates on achieving 2025-26 adopted performance measures are included in Attachment A for each County entity as follows: County - Pages 34-126, San Bernardino County Fire Protection District - Pages 127-128, San Bernardino County Flood Control District - Page 117 (within the County’s Department of Public Works section), Inland Counties Emergency Medical Agency - Pages 131-133, In-Home Supportive Services Public Authority - Pages 129-130, and Board Governed County Service Areas - Pages 119-120 (within the County’s Department of Public Works section).
Recommendation No. 3 recommends the Board accept the 2025-26 CIP Year-End Budget Report. The Capital Improvement Program is requesting a net increase of $6.6 million and the reallocation of existing sources.
• The Prado Regional Park RV Restroom Remodel (WBSE 10.10.1395) project requires an additional $578,731 to fund the replacement of previously unidentified electrical transformers serving the restroom facilities that were discovered during construction and were not identified during the design phase. The increase will be fully funded with available savings from the Lake Gregory Park Commerce Prefabricated Restroom project (WBSE 10.10.1397).
• The Probation Department is contributing an additional $6,613,351 toward the Probation Central Adult Field Operations Building project (WBSE 10.10.1643) to bring the project closer to full funding. This increase will be funded by Probation departmental savings.
Recommendation Nos. 4 and 5 recommend the Board approve budget adjustments and personnel actions. Budget and staffing adjustments identified in the 2026-27 Budget Adjustments section of the Report are presented below.
The Board of Supervisors - Discretionary Fund is requesting an allocation of $2.0 million from the 2026-27 First District’s Board of Supervisors Discretionary Fund - District Specific Priorities Program budget to provide additional funding to the Adelanto Senior Housing Project managed by the County’s Community Development and Housing Department. The Adelanto Senior Housing Project will provide approximately 92 homes for seniors, as well as a clubhouse and on-site manager’s unit, and expand the availability of senior-oriented housing in the High Desert. The allocation will promote housing stability, safety, health and quality of life for senior residents.
Additionally, the Department of Public Works is requesting $3.3 million from the Public Works Infrastructure Reserve for the Rosena Ranch ADA Ramps I & II Project. The project will update 145 non-compliant Americans with Disabilities Act ramps in the Rosena Ranch area to ensure compliance with applicable accessibility requirements. The project is currently at approximately 35% design, with the construction timeline to be determined.
Staffing adjustments include the addition of one County Chief Management Officer and one County Chief Operating Officer, which will be primarily offset by the deletion of two positions as part of the 2026-27 Mid-Year Budget process.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Julie Surber, Principal Assistant County Counsel, 387-5455) on September 3, 2026; County Finance and Administration (Paloma Hernandez-Barker, Deputy Executive Officer, 387-4883) on September 6, 2026; and coordinated with the Auditor-Controller/Treasurer/Tax Collector (Mima Ugbo, Deputy Chief Controller, 382-3195) on September 15, 2026.