RANCHO CUCAMONGA -- The City Council has unanimously adopted a $65 million general fund budget for the fiscal year beginning July 1.

The budget represents a $1.8 million or 2.9 percent increase from the previous fiscal year.

Among highlights in the budget is $508,680 to replenish the city's capital reserve fund. With this move, officials hope to offset the impact of the previous year's dissolution of the Redevelopment Agency. The disollution had wiped out $150 million in reserves the city had saved over the past two decades.

"I am extremely happy that the city has taken very seriously its financial obligations by adding a reserve budget line item for the first time in the city's history of budgeting," said Councilman Marc Steinorth.

The economic downturn of the past five years also resulted in a 20 percent reduction of city staff, with remaining workers having to take on additional roles and work. This year's budget proposal includes an allocation of $694,400 to address reclassifications of employees, position upgrades, and staff development.

The budget also marks the end of full-time employee furloughs.

"The staff has been very understanding with budgets over the last three years with furlough and doing what we ask them to do, and now its time we make it right," said Councilman Sam Spagnolo.

The police budget increased by $1.4 million because of a rise in pension and labor costs.

Because of rising costs for policing, city officials will spend $60,000 this year for a cost-benefit analysis reviewing options. Among them: to keep services from the San Bernardino County Sheriff's Department, contracting with another department, or creating a new city police department.

"We want to make sure that we are getting the right amount of service for our dollar," Spagnolo said. "Without doing that survey, we won't know that."