The council agreed to amend the budget to show about $200,000 less in expenditures required in the 2012-13 fiscal year.
"This has not been a one time budget. It's been a work in progress. It started several years ago with the realization we needed to make significant changes in how City Hall operated," said Councilman Brendan Brandt. "
City departments have made $310,150 in budget reallocation requests, which will only be funded if absolutely necessary, said City Manager Stephen Dunn.
"Myself and the city departments know our fiscal situation and we're committed to saving as much money as we possibly can," Dunn said.
The city's general fund reserves fell below $1 million from in the 2011-12 fiscal year, which has caused the City Council and Dunn to look for several ways to restore the reserves to the mandatory 10 percent of expenditures, or about $3.9 million.
"That's a situation we have a plan to correct," Dunn said. .
In November, Dunn made recommendations to the council to cut about $2 million from the city's budget annually.
"You took the task of making recommendations to this council and now they're coming into fruition," Brandt said to Dunn.
One of the recommendations was to transfer $1.1 million from a water fund in order to help cover legal costs.
Dunn said he is budgeting $1.9 million. He considers about $350,000 in annual legal costs about normal, he said.
"I'm happy to say that our most costly lawsuits are behind us," Dunn said. "It's only a matter of time before we get costs to what I consider to be normal. It's been years since we have see that. Our new city attorney will help tremendously with that. "
Employees have also made concessions that will save the city about $800,000 once fully implemented.
All seven of the city's employee groups have agreed to pay their own portion of their pension.
Tax revenue from the new colonies development and money that would have previously gone to the redevelopment agency are also expected to start showing up in the current fiscal year.
Reach Sandra via email, call her at 909-483-8555, or find her on Twitter @UplandNow.