City of Upland Finances Explained

When City finances are discussed, Upland residents often hear two documents mentioned: the City Budget and the Annual Comprehensive Financial Report (ACFR). Although the names sound similar, they serve very different purposes—and understanding the distinction helps residents better evaluate City decisions and long-term financial stability.

Each year, the Upland City Council adopts a City Budget before the fiscal year begins. The budget is a planning document that outlines how the City intends to fund essential services such as police patrols, emergency response, street maintenance, parks, recreation programs, and facility operations. It is built on projected revenues, including sales tax, property tax, and service fees, and reflects the policy priorities approved by the City Council. In short, the budget shows what the City plans to do and how it expects to pay for it.

The ACFR, by contrast, is prepared after the fiscal year ends and serves as the City’s financial report card. It shows what actually happened once the year is complete—how much revenue was truly collected, how funds were spent, whether emergency reserves were protected, and how the City is managing long-term responsibilities such as infrastructure needs and pension obligations. The ACFR is independently audited, meaning outside professionals review the City’s financial records to ensure accuracy, compliance, and transparency.

This distinction matters because even a carefully crafted budget cannot predict every outcome. Economic conditions change, costs rise, and unexpected expenses can occur during the year. A budget may appear balanced on paper, but only the ACFR confirms whether the City truly lived within its means while continuing to deliver essential services.

Together, these two documents tell the full financial story. The budget reflects intentions and priorities at the start of the year. The ACFR shows the results at the end. A financially responsible city needs both—a realistic budget going in and a strong, audited ACFR coming out.

A simple rule of thumb helps keep it clear:
The Budget is the plan. The ACFR is the proof.

By understanding how these documents work together, Upland residents can better interpret financial discussions, ask informed questions, and stay engaged in protecting the community’s long-term fiscal health.