San Bernardino to Appoint New City Manager, Vote on 2025-26 Budget at June 4 Meeting

In a pivotal moment for city leadership, the San Bernardino City Council is scheduled to appoint its next permanent city manager and adopt the 2025-26 operating budget during its June 4 public meeting at the Norman F. Feldheym Central Library.

The meeting opens to the public at 5 PM following closed-session negotiations earlier that afternoon, where council members will finalize the employment contract with the selected city manager candidate. If approved, the appointment will mark a long-awaited decision after more than a year of turnover, interim leadership, and multiple city manager interviews conducted without a full council present; which sparked public outrage in April 2025. 

The meeting will also serve as the public hearing for adoption of the city’s proposed $348.7 million budget for fiscal year 2025-26 — a financial blueprint that includes $253.8 million in General Fund expenditures and $94.7 million in other funds.

“This budget represents the next chapter for San Bernardino — addressing key infrastructure and essential city services,” Mayor Helen Tran said in a June 2 phone call. “We need our residents to come out, be heard, and weigh in on the priorities that impact every neighborhood.”

Budget Details: Staffing, Pension Costs, and Major Allocations

The 2025-26 budget reflects cost-cutting and fiscal balancing strategies to address ongoing economic pressures. To control costs, departments implemented a 5% reduction in operating expenditures and initiated a six-month hiring freeze for non-safety positions, resulting in approximately $8.1 million in savings. The city will also use $31.2 million from fund balance reserves for infrastructure investments, vehicle fleet replacement, and technology upgrades.

Revenue projections estimate $228.2 million in General Fund revenue, driven largely by:

• Measure S: 23%
  
• Sales and Use Tax: 23%
  
• Utility Users Tax: 14%
  
• Property Tax in Lieu of VLF: 11%

Key rising fixed costs include:

• $1.5 million for employee salary step advancements
  
• $2.9 million in healthcare cost increases
  
• $4 million in unfunded pension liabilities
  

Legal Costs: BB&K Receives Nearly $3.15 Million

Legal services remain one of the city’s significant contractual expenses. The proposed budget allocates $3,147,000 to Best Best & Krieger LLP (BB&K) for legal counsel. An additional $710,000 is budgeted for other legal services, including litigation and labor negotiations — bringing total legal spending to approximately $3.86 million.

Capital Improvement Projects: Navigation Center, Streets, and Facilities

The proposed five-year Capital Improvement Program (CIP) includes a $45.7 million investment for 2025-26 to advance numerous infrastructure priorities:

• $17.4 million for the SB Hope Campus Navigation Center, a major homelessness response hub.
  
• $7.35 million for arterial street rehabilitation through Measure I and SB1 funds.
  
• $6.3 million to revitalize the Feldheym Central Library.
  
• $3.37 million for California Theater renovations.
  
• $2.47 million for upgrades to the Animal Shelter regional partnership.
  

Public Comment Procedures

The city is encouraging residents to actively participate in Wednesday’s decision-making process. Public comment can be submitted in several ways:

• In-person: Attend the meeting and submit a speaker slip to the City Clerk before the 5 p.m. start.
  
• Email: Send written comments to publiccomments@sbcity.org no later than 2:30 p.m. on June 4.
  
• Online speaker registration: Tap here to register in advance.
  
• Full agenda access: All materials are available here.
  

Over a Year Without Permanent Leadership

The June 4 vote comes after a turbulent year of leadership transitions following the controversial firing of former city manager Charles Montoya, who was terminated in May 2024 after only eight months on the job. His brief tenure was marred by allegations of financial mismanagement, retaliation against whistleblowers, and hostile work environment claims.

Montoya’s ouster was preceded by the abrupt firing of Finance Director Barbara Whitehorn, who had raised concerns over ballooning City Hall renovation costs, which grew from $80 million to roughly $120 million. Whitehorn alleged the city could not afford the additional debt service required.

Montoya’s termination also followed community concerns over his prior history, which included multiple terminations from previous positions in Florence, Watsonville, and Avondale.

After Montoya’s removal, Deputy City Manager Rochelle Clayton was appointed acting city manager, but she ultimately departed for Barstow, where she now serves as city manager. Clayton’s tenure in San Bernardino also became entangled in legal controversy after she filed a legal claim alleging corruption, retaliation, and interference by elected officials and legal counsel in city operations.

Interim Leadership Before New Appointment

In February, the council appointed the renowned Bill Gallardo as interim city manager. Gallardo, who previously retired as Brea’s city manager, stepped in to stabilize operations while the council conducted its extensive recruitment for a permanent hire.

The council has since worked with executive search firm Ralph Anderson & Associates to identify the final candidate now under consideration for the permanent role.