ATTEST:
NATALIE GONZAGA, CITY CLERK
Attachment – Exhibit 1
STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO ) ss
CITY OF CHINO )
I, Natalie Gonzaga, City Clerk of the City of Chino, do hereby certify that the foregoing resolution was duly adopted by the City Council of the City of Chino at their regular meeting on the 1st day of April 2025, by the following votes:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said City on this 1st day of April 2025.
Natalie Gonzaga
City Clerk
179
Exhibit 1:
CDBG 2024-2025 Action Plan-Substantial Amendment
The proposed amendment will reallocate funding within the City’s CDBG program to enable sufficient funding for the completion of the project as described below.
Alley Improvement Project SN240:
The proposed project expands the limits of work for Alley Improvements Project (SN240) CDBG FY23-24 to fully capture the east-west alley between D Street and Chino Avenue (from Monte Vista Avenue to 5 th Street). This area is primarily residential and entir ely within CDBG LMI areas.
The scope of work includes pavement rehabilitation of the asphalt alley, installation of a concrete ribbon gutter to facilitate drainage and improved ADA access at alley driveway approaches. This project will enhance pedestrian access and remove barriers, allowing increased access to the western-adjacent Monte Vista Park.
The program performance categories for this project promote Availability/Accessibility and Livable or Viable Communities. The project targets the older part of the community, Census Tract 605, Block Group 1. Improvement of both the motorist and pedestrian travel ways will enhance the overall appearance of the neighborhood and will directly benefit 12 households that immediately abut the alleyway.
The City’s Public Works Department will administer and monitor the project design and construction. The estimated cost of design and construction to complete the project scope is $588,000.
Proposed Project Budget Increase over 25% CDBG Allocation FY 2023-24 Alley Improvement Project SN240 Original Budget Allocation
$219,256.00
Proposed Action Plan Reallocation of Funds
FY 202 4-25 Community Garden Pumpkin Patch Project -
(cancel and reallocate)
$298,868.65
FY 202 3-2024 Alley Improvement Project SN240 New
Allocation Total
$298,868.65
FY 202 3-24 Alley Improvement Project SN240 Total Budget Allocation
$518,124.65
180
MEMORANDUM
CITY OF CHINO
FINANCE DEPARTMENT
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TO: LINDA REICH, CITY MANAGER
FROM: KIM SAO, DIRECTOR OF FINANCE
SUBJECT
..titl e
Fiscal Year 2024-25 Midyear Budget Review.
..end
RECOMMENDATION
..recommendation
Adopt Resolution No. 2025-012, authorizing the Midyear Budget adjustments for FY 2024-25 as detailed in the attached Exhibits A, B, and C.
..body
FISCAL IMPACT
Following the City Council's approval of the FY 2024-25 Mid-Term Budget on January 21, 2025, staff conducted a midyear review. Based on this analysis, staff recommends additional adjustments to address updates in Revenues, Expenditures, and Transfers In/Out. Revenue Estimates (Exhibit A):
o Decrease the General Fund revenues estimate by $3,420,211 and all other funds by $12,839,480 for a total decrease of $16,259,691. (Exhibit A) Expenditure Appropriation (Exhibit B):
o Increase $811,256 to the General Fund budget
o Increase $250,000 to the Sewer Fund budget
o Transfer $2.5 million from the Employee Benefit s Fund and $4.5 million from the Equipment Management Fund to the General Fund for a total of $7.0 million to cover one-time costs
Decrease $3,280,949 to the current General Fund appropriation and other funds due to the elimination of allocated pension costs. (Exhibit C)
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Responsible Long-Range Planning
Revenue:
Expenditure: See Attached Schedule
Transfer In: Transfer Out:
181
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: FISCAL YEAR 2024-25 MIDYEAR BUDGET REVIEW.
PAGE: 2
BACKGROUND
The City Council adopted a biennial budget for FY 2023 -24 and FY 2024-25 in June 2023, with a mid -term update for FY 2024 -25 approved on January 21, 2025. This update reflected net revenues of $143 million, net expenditures of $142.8 million, and a surplus of $146,026.
In accordance with the City's budget policy, the adopted budget can be amended during t he fiscal year to address unforeseen circumstances or changes in service costs. The midyear review evaluates progress relative to the original budget projections and recommends adjustments to ensure financial alignment through June 30, 2025.
During the midyear budget process, Finance staff adjusted estimated beginning fund balances for FY 2024 -25 to align with the audited ending fund balances as of June 30, 2024. This ensures more accurate projections for the FY 2024 -25 budget and reflects the most conservative spendable resources available.
ISSUES/ANALYSIS
The midyear review involved a thorough analysis by each department and Finance staff. Staff identified additional operational changes since the adoption of the FY 2024-25 Mid-Term Budget update, w ith recommended adjustments for each fund, attached as Exhibits A through C to Resolution No. 2025-012.
Adjustments to Estimated Revenue (Exhibit A)
Adopting a conservative approach to revenue estimates is essential to avoid overstating potential income, which could lead to overcommitting resources. By preparing for the worst and relying on prudent, conservative assumptions, the City can maintain fisca l responsibility, allocate resources effectively, and be better equipped to address unforeseen challenges. This approach ensures resources are allocated wisely and mitigates the risk of budget shortfalls during uncertain economic climate. As part of this strategy, the midyear review and analysis has guided the proposed revenue adjustments to reflect the most realistic and achievable financial outlook.
Revenue adjustments across all funds reflect a net decrease of $16,259,691, driven largely by a $15.8 million reduction in development impact fees caused by delays in multi -unit development projects that generate user fees for construction, permits, and inspections. Included in the total, the General Fund's estimated revenue is reduced by $3,420,211, limitin g the availability of resources typically allocated to cover one -time costs, such as capital projects and other non - recurring expenditures.
Below is a summary of changes to the revenue estimates by fund. For a detailed description of the revenue adjustments within each fund, refer to Exhibit A.
182
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: FISCAL YEAR 2024-25 MIDYEAR BUDGET REVIEW.
PAGE: 3
Fund Description Revenue Inc/(Dec)
100 General Fund (3,420,211)
105 Traffic Safety Fund 43,159
220-341 Development Impact Fee Fund (15,853,229)
320 Transportation Fund 120,000
322 Measure I 2010-2040 (87,156)
324 Gas Tax (21,898)
327 SB1 RMRA (74,505)
330 Community Svc Fund 118,067
520 Water Fund (1,875,737)
530 Sewer Fund 719,641
540 Storm Drain Fund 100,716
550 Sanitation Fund 752,791
703 RDA 3,218,671
Total Revenue Adjustments ($16,259,691)
Adjustments to Expenditures (Exhibit B)
Staff requests $811,526 in General Fund appropriations as detailed below:
$620,000 - Increased obligation to the Chino Valley Fire District due to higher property tax receipts.
$150,000 - Contract adjustment for Inland Valley Humane Society, reflecting changes in revenue-sharing guarantees.
$34,326 - Additional costs for the 2024 General Election with the San Bernardino County Registrar of Voters.
$7,200 - Part-time special projects staff for Human Resources and Risk Management through December 2024.
Sewer Fund: An additional $250,000 is requested for sewage treatment services due to increased residential occupancy.
Appropriation Reduction for Pension Cost Allocation (Exhibit C)
During the recent annual City audit, corrections were identified that required revisions to the financial statements, leading to a restatement of the General Fund balance as of June 30, 2024.
These findings highlight the importance of closely monitoring th e General Fund this year to address the residual fiscal impact and ensure its health through June 30, 2025. As a result of this review, we recommend removing the appropriation for pension cost allocation, in the amount of $3,280,949. This reduction in costs results in a savings to the General Fund that will now be available for other uses.
Summary of the General Fund Operation for FY 2024-25
For FY 2024 -25, the revised General Fund operating revenues and ongoing transfers in total $135,119,658. Total ope rating expenditures and ongoing transfers out total $124,028,793 million, resulting in an estimated net operating surplus of $11,090,865. 183
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: FISCAL YEAR 2024-25 MIDYEAR BUDGET REVIEW.
PAGE: 4
After incorporating previously approved capital improvement projects of $15.6 million (Attachment 2) and other anticipated one-time expenditures of $2.5 million that will be presented to the City Council in separate agendas, the General Fund results in a budget deficit of $6,324,758. To address the budget deficit, staff recommends transferring $7 million from the Internal Service Funds to the General Fund to address immediate financial needs. This transfer results in a projected General Fund surplus of $675,242 as of June 30, 2025.
Internal Service Funds
It is not unusual for cities to tap into these internal ser vice funds to cover General Fund shortages as long as the fund continues to be replenished regularly. As shown in the table below, in June 2008, the City transferred $6,401,697 from various internal service funds to the General Fund to mitigate the fiscal impact of the recession. At that time, Council also approved the recommendation to maintain a minimum balance within each of the funds for future needs.
Staff has diligently applied cost allocations to replenish and maintain internal service fund s as part of the normal operating budget process to sustain them for future needs. The total available Internal Service available fund balances increased from $7.5 million in 2008 to $20.7 million in June 2024. The Employe Benefits Fund and the Equipment Managem ent Fund have a high balance of $6.4 million and $9.7 million, respectively. Therefore, staff recommends a transfer out of $2.5 million from the Employee Benefits Fund and $4.5 million from the Equipment Management Fund, totaling $7.0 million to the General Fund.
Table 1. Internal Service Fund Balance since 2008
Although this $7 million transfer addresses an urgent need, the City remains committed to evaluating the Internal Service fund balances and maintaining sufficient reserves to ensure long-term sustainability. Staff will continue to review these funds and prepare for future discussions on establishing updated fund balance policies.
The following table provides a final overview of the General Fund Budget for the FY 2024 -25.
Since July 1, 2024, the City Council has approved appropriations totaling $3,033,956, which were not included in the Mid -Term analysis. This total mainly includes $2 million for the Ayala Park project, $705,400 for pavement rehabilitation, and $620,440 for a Co-Op agreement on the State Route 60 landscape maintenance, along with smaller appropriations.
The FY 2024-25 General Fund Budget begins with an audited fund balance of $30,151,505 as of July 1, 2024. After accounting for a net surplus of $675,242, the projected June 30, 2025 ending fund balance is $30,826,747.
6/30/2024 6/30/2025 Recommended 6/30/2025
Internal Service Recommended Transferred To Avail Balance Avail Balance Transfer To Avail Balance Fund Fund Balance General Fund (audited) Projected General Fund Revised Projected Fund 610 Central Services 1,000,000$ 1,512,163 1,480,680$ 2,132,413$ -$ 2,132,413$ Fund 630 Liability Insurance 3,000,000 1,974,141 1,856,023 2,901,413 - 2,901,413 Fund 640 Employee Benefits 2,500,000 1,797,689 6,485,114 5,181,250 2,500,000 2,681,250 Fund 650 Building Maintenance 1,000,000 1,117,704 1,166,687 1,166,687 - 1,166,687 Fund 660 Equipment Maintenance - - 9,704,981 8,475,125 4,500,000 3,975,125 Total 7,500,000$ 6,401,697$ 20,693,485$ 19,856,888$ 7,000,000$ 12,856,888$ June 2008
184
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: FISCAL YEAR 2024-25 MIDYEAR BUDGET REVIEW.
PAGE: 5
Table 2. General Fund Summary
CONCLUSION
The Midyear Budget Review process is an essential part of managing the City’s evolving financial landscape. It represents a proactive effort to adapt to changing circums tances, using the best information available at the time of preparation. Recognizing that factors such as economic conditions, legislation, and local trends can rapidly alter planning assumptions, this review highlights the importance of flexibility and vigilance in fiscal management.
Approving the proposed midyear adjustments will provide staff with the budget authority to make needed adjustments and achieve a more accurate budget that align with current realities and provide a basis for developing the upcoming FY 2025-26 Budget.
Attachments: 1 - Resolution No. 2025-012, Exhibits A, B, C 2 - Measure V Funded and Other CIP Projects
General Fund
Adopted
(Mid-Term)
Council
Approved
Midyear
Adjustments
Revised
Budget
(1/21/25) (7/1/24-3/6/25) (4/1/25)
Total Fund Balance @ 7/1/24 (*audited) 37,730,604$ 30,151,505$ * Revenues/Other Sources:
Operating revenues 102,606,415 (3,420,211) 99,186,204 Measure V 26,000,000 26,000,000
Transfers In - Ongoing 9,933,454 9,933,454
Net revenues 138,539,869$ (3,420,211)$ 135,119,658$ Expenditures/Other Uses:
Operating expenditures 100,679,618 3,033,956 811,526 104,525,100 Anticipated budget savings (3,800,000) (3,800,000) Eliminate pension cost allocation (audit adj.) (3,280,949) (3,280,949) Transfers Out - Ongoing operations 26,584,642 26,584,642 Net expenditures 123,464,260$ 3,033,956$ (2,469,423)$ 124,028,793$ Net Operating Surplus/(Deficit) 15,075,609$ 11,090,865$ Add: Transfers In - one-time 664,722 7,000,000 7,664,722 Less: Transfers Out - CIPs (15,594,305) (15,594,305) Less: Anticipated one-time corrections - (2,486,040) (2,486,040) Total CIP and one-time costs (14,929,583)$ 4,513,960$ (10,415,623)$ Revised Net Surplus/(Deficit) 146,026$ 675,242$ Ending Fund Balance @ 6/30/25 (Est.) 37,876,630$ 30,826,747$ FY 2024-25 Budget
185
RESOLUTION NO. 2025-012
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHINO, CALIFORNIA, ADOPTING THE MID YEAR
BUDGET REVIEW ADJUSTMENTS FOR THE FISCAL
YEAR 2024-25
WHEREAS, on January 21, 2025, the City Council adopted the Mid-Term Budget Update for Fiscal Year 2024-25; and
WHEREAS, the adopted budget may be amended throughout the fiscal year with City Council approval subject to available resources; and WHEREAS, the budget is reviewed during a Mid year Budget Review process that results in recommended budget adjustments to reflect unforeseen changes in revenue or expenditure requirements that require City Council approval.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHINO
HEREBY RESOLVES AS FOLLOWS:
Section 1. The City Council does hereby approve the Mid year Adjustments to revenues, expenditures, and transfers in/out as detailed in Exhibit “A”, “B”, and “C”.
Section 2. The City Clerk shall certify to the passage and adoption of this Resolution. This Resolution shall take effect upon its adoption.
APPROVED AND ADOPTED THIS 1st DAY OF APRIL, 2025.
By:
EUNICE M. ULLOA, MAYOR
ATTEST:
NATALIE GONZAGA, CITY CLERK
186
Resolution No. 2025-012
State of California )
County of San Bernardino )ss
City of Chino )
I, NATALIE GONZAGA, City Clerk of the City of Chino, California, do hereby certify that the foregoing Resolution was adopted by the City Council of said City at a regular meeting of said City Council held on the 1st day of April 2025, and that it was so adopted by called vote as follows:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
NATALIE GONZAGA, CITY CLERK
187
Fund and Description Account Number
Current Adopted
Revenue
Revenue
INC/(DEC)
Revised
Revenue
General Fund 100
Capital Adm. Fee 1007010-56400 2,139,976 (1,389,976) 750,000 Final Subdivision Map Fee 1007010-56440 45,000 (25,000) 20,000 Engineering Plan Check Fee 1007010-56450 600,000 (200,000) 400,000 Public Imp Inspections-Land Dev 1007010-56470 1,500,000 (650,000) 850,000 Engineering Plans Revison Fee 1007010-56500 25,000 30,000 55,000 Franchise Fees - Telecommuications 1001000-50230 650,000 (157,372) 492,628 Property Tax - Secured 1001000-51005 15,423,811 439,977 15,863,788 Property Tax - Unsecured 1001000-51015 799,825 28,039 827,864 Property Tax - Aircraft 1001000-51025 454,477 141,575 596,052 Property Tax - Unitary 1001000-51030 532,424 114,961 647,385 Property Tax - Supplemental 1001000-51035 350,000 (123,000) 227,000 Property Tax - Prior Years 1001000-51040 368,000 (39,000) 329,000 Property Tax - RDA Elimination 1001000-51041 3,700,000 (207,849) 3,492,151 Property Tax - In Lieu VLF 1001000-51050 15,474,580 365,088 15,839,668 Property Tax - RDA S.B. 211 1001000-51060 430,000 (45,722) 384,278 City Services Special Tax (2003-3 & 2020-1) 1001000-51200 2,790,166 (253,971) 2,536,195 City Services Special Tax (2005-1) 1001000-51205 2,235,048 (115,429) 2,119,619 Sales Tax 1001000-51300 36,157,996 356,927 36,514,923 Vehicle License Fee 1001000-51520 - 145,980 145,980 Real Property Transfer Tax 1001000-51105 - (316,144) (316,144) State Mandated Cost Reimbursement 1001000-51550 - 160,000 160,000 Rental Income 1001000-59305 - 120,000 120,000 Transient Occupancy Tax 1003000-51500 600,000 40,845 640,845 Reimbursement & Contributions 1003000-59355 30,000 (28,452) 1,548 Job Valuation 1006300-56300 176,255 (86,621) 89,634 Building Permits 1006300-56310 1,581,533 (495,904) 1,085,630 Plumbing Permits 1006300-56320 261,184 (133,545) 127,639 Electrical Permits 1006300-56330 266,497 (121,209) 145,288 Mechanical Permits 1006300-56340 270,395 (98,994) 171,401 Bldg Standards Fee 10 1006300-56345 1,344 (610) 734 Building Plan Check 1006300-56350 637,191 (127,954) 509,237 New Construction Fee 1006300-56360 693,561 (372,189) 321,372 New Home Security Fee 1006300-56370 99,400 (60,600) 38,800 Technology Fee * 10063001-56365 108,790 (55,191) 53,599 Legal Address Change 1006300-56390 271,609 (154,429) 117,180 General Plan Update 1006100-56000 199,357 (104,442) 94,915 Total Fund 100 88,873,419 (3,420,211) 85,453,208 Traffic Safety Fund 105
Motor Vehicle Fines 10541000-51515 70,000 43,159 113,159 Total Fund 105 70,000$ 43,159$ 113,159 (EXHIBIT A)
FY 2024-25 Midyear Budget Review
Adjustments to the Revenue Estimates
1 188
Fund and Description Account Number
Current Adopted
Revenue
Revenue
INC/(DEC)
Revised
Revenue
(EXHIBIT A)
FY 2024-25 Midyear Budget Review
Adjustments to the Revenue Estimates
Development Impact Fee Funds: Various
DIF-Bridges, Signals, T. Fares 2207005-56520 6,133,615 (5,398,175) 735,440 DIF-Law Enforce Facility/Vehicles/Equip 2317005-56590 286,810 (160,242) 126,568 DIF-Fire Facility 2327005-56660 289,449 (114,425) 175,024 DIF-General Facility Vehicle 2337005-56610 357,380 (341,492) 15,888 DIF-Water Storage Distribution 2537005-56560 1,413,720 (1,307,616) 106,104 DIF-Sewage Collection/Disposal 2547005-56570 271,657 (242,377) 29,280 DIF-Storm Drain Collection 2557005-56580 1,336,146 (1,283,586) 52,560 DIF-Bridges, Signals, T. Fares 2607005-56520 2,916,834 (2,594,414) 322,420 DIF-Water Storage Distribution 2617005-56560 1,771,662 (1,444,692) 326,970 DIF-Sewage Collection/Disposal 2627005-56570 709,276 (389,574) 319,702 DIF-Storm Drain Collection 2637005-56580 1,765,000 (1,471,280) 293,720 DIF-Community Facilities 2657005-56540 421,504 (255,744) 165,760 DIF-Misc Open Space (Residential) 2667005-56550 160,022 (97,092) 62,930 DIF-Park Development Fees - Preserve 3418300-56720 1,240,000 (752,520) 487,480 Total Various Citywide DIF Various 19,073,075$ (15,853,229)$ 3,219,846 Transportation Fund 320
Viramontes-Green Waste Temp.Containers 3207100-59343 - 120,000 120,000 -$ 120,000$ 120,000 Measure I 2010-2040 Fund 322
1/2 Cent Sales Tax 3271000-51610 2,425,650 (87,156) 2,338,494 2,425,650$ (87,156)$ 2,338,494 Gas Tax Fund 324
Gas Tax - Section 2103 3241000-51604 878,652 (21,898)$ 856,754 878,652$ (21,898)$ 856,754 SB1 RMRA Fund 327
SB1 Road Maintnenance 3271000-51610 2,412,207 (74,505)$ 2,337,702 2,412,207$ (74,505)$ 2,337,702 Community Services Fund 330
Social Services Donations 3308100-59380-N8011 15,000 29,500 44,500 Chino Hills Agreement 3308120-58040 306,787 54,582 361,369 TUPE Grant 33081204-59500-G8580 71,000 (21,482) 49,518
Hope Grant 33081208-59500 62,250 417,494 479,744
OmniTrans Grant 3308130-59500-G8953 127,816 37,562 165,378 SOAR Grant 33082201-59500-G8521 2,283,259 (433,259) 1,850,000 Sunrise Kids Fees 33082204-58000-N8050 71,000 (51,330) 19,670 Recreation Classes Fees 33082402-58000 175,000 (30,000) 145,000 Sports Facility Rental Fees 3308250-58015 375,000 115,000 490,000 3,487,112$ 118,067$ 3,605,179 Enterprise Funds:
Water Fund 520
Water Usage Consumption 5203100-52000 19,746,644 (1,277,919) 18,468,725 Water Availabilty Fee 5203100-52010 10,280,980 (155,574) 10,125,406 Water Meter Installation Fee 5203100-52050 290,000 (68,956) 221,044 Water Fire Services Fee 5203100-52060 1,643,000 (349,864) 1,293,136 Water Reinstatement Fee 5203100-52080 75,000 (23,424) 51,576 32,035,624$ (1,875,737)$ 30,159,887 2 189
Fund and Description Account Number
Current Adopted
Revenue
Revenue
INC/(DEC)
Revised
Revenue
(EXHIBIT A)
FY 2024-25 Midyear Budget Review
Adjustments to the Revenue Estimates
Sewer Fund 530
Sewer Service Fee 5303110-53000 6,589,064 (284,329) 6,304,735 Sewage Treatment IEUA 5303110-53010 9,215,790 1,003,970 10,219,760 15,804,854$ 719,641$ 16,524,495 Storm Drain Fund 540
Storm Drain Service Fee 5403120-54000 4,650,000 100,716 4,750,716 4,650,000$ 100,716$ 4,750,716 Sanitation Fund 550
Refuse Collection 5503130-55000 5,867,882 (79,423) 5,788,459 County Dump Fee 5503130-55010 1,955,961 638,678 2,594,639 Recycling Surcharge 5503130-55030 995,960 101,503 1,097,463 Billing Fee 5503130-55040 955,192 143,190 1,098,382 Franchise Fee 5503130-55050 1,020,126 (51,157) 968,969 10,795,121$ 752,791$ 11,547,912 RDA-RPTTF Fund 703
RPTTF 7039015-51041 - 3,218,671 3,218,671 -$ 3,218,671$ 3,218,671 Grand Total Revenue Adjustments - Inc/(Dec) 180,505,714$ (16,259,691)$ 164,246,023$ 3 190
Fund Expenditure Account
Expenditure
Amount
1003020-43650 620,000
1002020-43650 150,000
1002030-43650 34,326
1005000-41010 7,200
811,526$
-
5307320-43606 250,000
250,000$
1,061,526$
General Fund 100
Chino Valley Fire District
Humane Society of Pomona Valley
San Bernardino Cty Registar of Voters
HR-Special Projects Staff
Total General Fund
Sewer Fund 530
Inland Empire Utilities Agency
Total Sewer Fund
Total All Funds
Transfers In/Out
Internal Service Funds
Employee Benefits Fund Transfers Out 2,500,000
Equipment Management Fund Transfers Out 4,500,000
7,000,000
General Fund
General Fund Transfers In 7,000,000$
FY 2024-25 Midyear Budget Review
(EXHIBIT B)
Budgets Requests
4 191
Fund Amount to Reduce
Expense 100 2,659,343$
310 29,337
320 176,845
330 294,758
340 12,037
360 97,553
361 11,076
Total 3,280,949.00$
Revenue 640 Total 3,280,949.00$
Summary of Pension Repayment - Fund 640 Allocation Reversal (EXHIBIT C)
FY 2024-25 Midyear Budget Review
Appropriation Reduction for Eliminated Pension Cost
5 192
PROJECT NUMBER PROJECT TITLE
FY24-25
MID-TERM
BUDGET
Miscellaneous Projects
MS236 Traffic Signal Synchronization 20,000
20,000
Park Projects
PK223 Walnut Park Playground Improvements-Surface/Shade/Equip 630,000 PK231 Ayala Park Improvements-Softball Fields 1-4 2,756,400 N/A City Park Restroom Restoration 315,074
3,701,474
Public Facility Projects
PF210 City Hall & City Hall South Interior and Accessibility Improvements 1,100,000 PF233 Cultural Arts Building- Purchase of Property & Rehab. 70,410 1,170,410
Sanitation Projects
SN231 Alley/Sanitation Rehab FY2022-23-12th St 641,234
641,234
Street Projects
ST252 Local Street Rehabilitation Project FY2025 268,750 ST233 Yorba Ave Street Improvements 317,151
ST241 Local Street Rehabilitation Project FY2024 4,292,352 ST243 Euclid Ave Bridge Project 5,177,936
ST244 Kimball Avenue Median Improvements Project 4,999
10,061,188
Total Measure V Funded and Other CIP Projects 15,594,306 (Attachment 2)
Measure V Funded and Other CIP Projects
193
MEMORANDUM
CITY OF CHINO
PUBLIC WORKS DEPARTMENT
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TO: LINDA REICH, CITY MANAGER
FROM: HYE JIN LEE, PE, DIRECTOR OF PUBLIC WORKS
SUBJECT
..titl e
Abatement Payment - California Department of Transportation (CalTrans) for the Pine Avenue Connector Project ST061.
..end
RECOMMENDATION
..recommendation
1) Appropriate $985,421 to the Transportation Fund backfilled by General Fund; 2) approve the abatement payment to the California Department of Transportation (Caltrans) for the Pine Avenue Connector Project ST 061 in the amount of $1,529, 549; 3 ) establish a new Capital Improvement Project No. ST 261 for the Pine Avenue Connector / Bridge Project, formally closing out Pine Avenue Connector Project ST061; and 4) authorize the City Manager to execute all necessary documents on behalf of the City.
..body
FISCAL IMPACT
This appropriation will reduce the available fund balance in the General Fund 100 by $985,421.
There is sufficient available General Fund balance for this transaction. There is sufficient project budget in ST061 for the Fund 328 and Fund 260 expenses. This appropriation will not increase the project budget but replaces the funding source for expenditures that did not qualify for reimbursement from the SAFETEA-LU Grant.
The total abatement payment of $1,529,549 will be funded through the following allocations:
Fund Amount
Measure I Arterial Fund (Fund 328) $ 328,000
Transportation Fund 320 backfilled with Preserve Circulation Development Impact Fees (Fund 260)
$ 216,128
Transportation Fund 320 backfilled with General Fund (Fund 100) $ 985,421 Total $1,529,549
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Financial Stability
Responsible Long-Range Planning
194
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: ABATEMENT PAYMENT - CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR THE PINE AVENUE CONNECTOR PROJECT ST061.
PAGE: 2
Revenue:
Expenditure: 3207100-ST061 & 3287103-ST061
Transfer In: 3201000-50000 Transfer Out:2601000-40001
195
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: ABATEMENT PAYMENT - CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR THE PINE AVENUE CONNECTOR PROJECT ST061.
PAGE: 3
BACKGROUND
Project Overview
The Pine Avenue Connector Project (Project) is included in the Federal Transportation Improvement Program (FTIP), which identifies transportation projects planned for implementation in alignment with regional transportation planning efforts / priorities and air quality standards. The Project consists of widening Pine Avenue from two to four lanes between Euclid Avenue and El Prado Road and constructing a new four-lane extension from El Prado Road to State Route 71 (SR -71). The Project has remained in the preliminary engineering and design phase for over a decade due to significant regulatory review challenges. Those challenges include but not limited to the following major issues.
1. The interchange improvements required at SR -71 and Pine Avenue which requires Caltrans and City of Chino Hills review and collaboration.
2. The initial design proposed a raised bridge approach with fill dirt as high as 60’. The United States Army Corps of Engineers (USACE) raised concerns with the amount of soil import required to raise the proposed road and the environmental impacts associated with creating a dam structure in a flood prone inundation area.
3. Concerns by Southern California Edison (SCE) associated with access to its distribution towers for maintenance.
4. Santa Ana Watershed Project Authority (SAWPA) having its brine line buried under the proposed earth filled structure.
5. Establishing consensus among multiple agencies on a sa fe design speed and posted speed necessary for a regionally critical mobility route.
To address these challenges, City staff has extensively collaborated with the City of Chino Hills, the San Bernardino County Transportation Authority (SBCTA), and Caltrans to develop a bridge concept that aligns with regional planning efforts and agency requirements. This preliminary concept has the support of the key stakeholders, allowing the City to advance to the next phases of preliminary design and environmental clearance.
In October 2024, Public Works presented a revised Project design to the Infrastructure Committee, proposing a bridge structure to minimize environmental impacts and provide a clear path forward. Due to this design pivot, a new Request for Proposals ( RFP) is necessary to procure updated design services.
Staff is actively advancing the RFP process to align with the Project’s revised scope, which now includes the preparation of an Environmental Impact Report (EIR). The EIR will provide a comprehensive analysis of Project impacts and mitigation measures, ens ure greater opportunities for community input, and establish a legally defensible environmental document.
Under the California Environmental Quality Act (CEQA), challenges to the Project can only be pursued through litigation following the EIR’s certification.
Funding History
The Project was authorized in 2009 to utilize federal funding under the Safe, Accountable, Flexible, Efficient Transportation Equity Act (SAFETEA -LU), with a maximum allocation of $6.1 million and a federal reimbursement ratio coverin g 80% of eligible costs. To date, the City has utilized and earmarked over $5.0 million for preliminary engineering and design. 196
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: ABATEMENT PAYMENT - CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR THE PINE AVENUE CONNECTOR PROJECT ST061.
PAGE: 4
As part of the Project’s early development, in 2012, the City entered into a professional engineering services agreement with Hu itt-Zollars, for preliminary engineering and design services. Over the years, the City submitted multiple requests to Caltrans to extend the Project timeline and secure additional SAFETEA -LU funding as the Project scope evolved under the Huitt-Zollars agre ement. Each request required a review and audit by Caltrans to ensure compliance with federal funding requirements. In 2024, during one such review, Caltrans discovered that the agreement with Huitt -Zollars had expired due to multiple missed contract renewals by City staff since 2020. As a result, costs incurred under the contract during this period were deemed ineligible for reimbursement under SAFETEA-LU.
Following this discovery, City staff conducted a full reconciliation of all costs incurred under the Project. This review determined that the City must repay approximately $1,529,549 in SAFETEA-LU reimbursements received from January 2020 to 2024.
Additionally, the reconciliation process identified accounting discrepancies. Specifically, expenditures rela ted to federal advocacy efforts and the Pine Avenue Repair Project were incorrectly charged to the Pine Avenue Connector Project between 2022 and 2024.
Given the Project’s reliance on specialized funding sources, staff has actively worked to resolve all discrepancies, develop a funding plan for the repayment, and ensure proper cost allocation moving forward.
ISSUES/ANALYSIS
Since the City is deviating from the original Project scope and proceeding with a bridge concept, a new RFP must be issued, and a full environmental review completed. Additionally, the abatement amount required a comprehensive review of invoicing from 2020 onward to identify salvageable costs that can be incorporated into the revised scope and offset through Development Impact Fees and Measure I Arterial funds.
Following this review, staff has determined that the abatement payment of $1,529,549 to Caltrans will be offset using the following funding sources:
$985,421 – General Fund
$216,128 – Preserve Circulation Development Impact Fees (DIF) $328,000 – Measure I Arterial Funds
Moving forward, a new Project number will be assigned to the Pine Avenue Connector/Bridge Project to ensure that all financial tracking aligns with the updated scope and funding structure.
This will provide a fresh start once the funding plan is finalized.
In a related effort, the City Manager and staff met with Congresswoman Norma Torres and her team to seek an exemption from the repayment obligation. Due to the age of the grant, an exemption was deemed infeasible. Ho wever, at the City's request, Congresswoman Torres’ office has submitted an additional request to Caltrans to allow the repayment amount to be reinstated into the available SAFETEA -LU fund balance. This request is based on the fact that the issue arose fro m the extension process related to the agreement with Huitt -Zollars rather than financial mismanagement.
Caltrans is currently consulting with Headquarters to determine whether this adjustment is possible. The City remains optimistic that these efforts will yield a favorable outcome. 197
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: ABATEMENT PAYMENT - CALIFORNIA DEPARTMENT OF TRANSPORTATION (CALTRANS) FOR THE PINE AVENUE CONNECTOR PROJECT ST061.
PAGE: 5
The Pine Avenue Connector / Bridge Project remains a critical infrastructure initiative for the City and the region, enhancing regional mobility, safety, and flood resilience. Despite past challenges and missed opportunities, current staff has taken proactive measures to address financial discrepancies, strengthen Project oversight, and secure continued regional stakeholder support. By implementing stronger contract management practices and aligning funding strategies with Project needs, the Public Works team is committed to successfully delivering this Project while maintaining transparency and fiscal re sponsibility. Staff will continue to provide updates to the Infrastructure Committee and City Council as progress is made, ensuring that this vital Project moves forward efficiently and effectively.
Therefore, it is staff’s recommendation that the City Cou ncil approve the abatement payment to Caltrans for the Pine Avenue Connector Project (ST061) in the amount of $1,529,549 and establish a new Capital Improvement Project No. ST261 for the Pine Avenue Connector / Bridge Project, formally closing out Project ST061 Pine Avenue Connector.
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MEMORANDUM
CITY OF CHINO
ADMINISTRATION DEPARTMENT
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: COUNCIL MEMBER COMSTOCK
SUBJECT
..titl e
Community Support Fund – Council Member Comstock.
..end
RECOMMENDATION
..recommendation
Approve a community support fund contribution of $250 to Boy Scout Troop 201, $500 to Chino American Little League, $250 to Chino Boxing Club, $500 to Chino Girls Fastpitch Softball, $250 to Chino Neighborhood House, $250 to Chino Police Officers’ Foundati on for the Run for Russ 5K/Walk, $250 to Chino Police Explorer Post #211, $250 to Chino Pop Warner, $250 to Isaiah’s Rock, $250 to Chino Kiwanis Club for the Kiwanis Corn Feed Run, and $250 to UCHOOZ Positive Youth.
..body
FISCAL IMPACT
Sufficient funds have been included in the Fiscal Year 2024-25 Operating Budget.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
Positive City Image
Superior Customer Service
Exemplary Leadership
Public Service Excellence through Internal and External Partnerships
Revenue:
Expenditure: 1002000 43300 N2031
Transfer In: Transfer Out:
199
CITY COUNCIL MEETING DATE: APRIL 1, 2025
TITLE: COMMUNITY SUPPORT FUND - COUNCIL MEMBER COMSTOCK.
PAGE: 2
BACKGROUND
The City of Chino is fortunate to have multiple non -profits and community groups dedicated to serving the public and preserving Chino’s unique history. To assist in their ongoing efforts, the City Council from time to time authorizes expenditures from the City’s community support fund.
These expenditures serve a valid public purpose by helping to continue the outstanding services that these organizations provide to our community.
ISSUES/ANALYSIS
To con tinue this tradition, Council Member Comstock recommends that the City Council approve the following contributions:
Boy Scout Troop 201 - $250: Supports a local boy scout troop which supports local volunteer efforts while developing character, discipline, integrity, and leadership skills. Chino American Little League - $500: Helps teach Chino’s youth the importance of teamwork, leadership, hard work, and humility through an organized baseball league. Chino Boxing Club – $250: Through hard work and developing boxing skills, this group helps Chino youth build their self -esteem, self -respect, character, discipline, and confidence.
Chino Girls Fastpitch Softball - $500: Provides an opportunity for growth and development of softball and life skills to the highest level achievable through competitive softball.
Chino Neighborhood House - $250: Offers low to moderate income families food and resources.
Chino Police Officers’ Foundation (Run for Russ 5K/Walk) - $250: The Chino Police Officers’ Foundation is dedicated to offer support to families and youth in the community. Chino Police Officers’ Foundation (Chino Police Explorer Post #211) - $250: Provides our community’s youth the opportunity to build their c haracter and learn about the many aspects of law enforcement. Likewise, the program allows our community’s youth to give back to their community through supporting community services events. Chino Pop Warner - $250: Teaches our community’s youth the values of leadership, teamwork, responsibility, and work ethic through an organized football and cheerleading program.
Isaiah’s Rock - $250: Provides food, clothing, and other vital resources to those in need. Kiwanis Club of Chino ( Kiwanis Corn Feed Run) - $250: The Kiwanis Club is dedicated to serving the Chino community through various service and fundraising projects. UCHOOZ Positive Youth - $250: Provides positive activities and support for youth in and around the Downtown Chino area.
By approving these contributions, these groups will be better equipped to provide services to the Chino community. Therefore, as proposed by Council Member Comstock, staff recommends that the City Council approve the community support contributions to: Boy Scout Troop 201, Chino American Little League, Chino Boxing Club, Chino Girls Fastpitch Softball, Chino Neighborhood House, Chino Police Officers’ Foundation (Run for Russ 5K/Walk), Chino Police Explorer Post #211, Chino Pop Warner, Isaiah’s Rock, Kiwanis Club of Chino ( Kiwanis Corn Feed Run), and UCHOOZ Positive Youth.
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