4 Cily of
Chino Hills
NOTICE OF SPECIAL MEETING
NOTICE IS HEREBY GIVEN that a Special Meeting of the City Council of the City of Chino Hills will be held on Monday, June 22, 2026, at 6:00 p.m., at the McCoy Recreation Center located at 14280 Peyton Drive, Chino Hills, California, to allow for Council Members to attend an informative presentation of the City of Chino Hills Budget.
PUBLIC COMMENTS: Members of the public may provide comments following the presentation.
DATED this 18th day of June 2026.
BRIAN S YOR
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Chino Hills
Join us for an informative presentation on the City of Chino Hills' budget.
Learn how the City is addressing a $4.3 million deficit. planning for long-term fiscal sustainability, where funding comes from, and how revenue is allocated.
MONDAY, SATURDAY9
the same exact
16 MCCOY RECREATION CENTER
: • PEYTON DRIVE
1 Hour 7 Free Giveaways
Presentation Q8�Session (While Supplies Last)
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Be part of the conversation!
Learn more: www.chinohills.org/CityBudget
City of
Chinn Hills
CITY OF CHINO HILLS
CITY COUNCIL
DECLARATION OF POSTING NOTICE
Jessica Contreras states and declares as follows:
I hereby certify under penalty of perjury under the laws of the State of California, that I posted the Notice of Special Meeting of the City Council scheduled for June 22, 2026, next to the Council Chambers, 14000 City Center Drive, Chino Hills, California, not less than 24 hours prior to the meeting.
I declare under penalty of perjury that the foregoing is true and correct, and that this declaration was executed on June 18, 2026, at Chino Hills, California.
CITY OF CHINO HILLS
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Jes ica Contreras
Deputy City Clerk 11
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CITY OF CHINO HILLS
CITY COUNCIL
DECLARATION OF POSTING NOTICE
Ana Nava states and declares as follows-
1 hereby certify under penalty of perjury under the laws of the State of California, that I posted the Notice of Special Meeting of the City Council scheduled for June 22, 2026, next to the Chino Hills McCoy Recreation Center, 14280 Peyton Drive, Chino Hills, California, not less than 24 hours prior to the meeting.
I declare under penalty of perjury that the foregoing is true and correct, and that this declaration was executed on June 18, 2026, at Chino Hills, California.
CITY OF CHINO HILLS
Ana Nava
Office Assistant
Chino Hills Fiscal Outlook &
Local Revenue Discussion
Protecting Essential Services &
Planning for the Future
Protecting What Residents Value Most
911 Response Times
Maintaining fast, reliable emergency response when every second counts.
Safe &Clean Public Areas
Keeping parks, streets, and public spaces safe and well-maintained.
Wildfire Preparedness
Protecting homes and families from the growing threat of wildfires.
Quality of Life
Preserving the character and livability that make Chino Hills exceptional.
Streets &Potholes
Repairing and maintaining roads for safe, smooth travel throughout the city.
Preventing Crime
Reducing thefts, burglaries, and keeping neighborhoods secure.
Drinking Water
Protecting the quality and reliability of the community's water supply.
Every budget decision directly impacts the services Chino Hills residents depend on every day.
FY 2026 –27 General Fund
Budget At –A–Glance
Chino Hills is facing a structural imbalance
between revenues and expenditures. While
reserves are currently covering the shortfall,
this approach is not a long-term solution.
56.4 Projected Deficit$4.3M
The gap between revenues and expenditures is currently
being covered by reserves.
About Reserves
Reserves are intended for emergencies, economic
downturns, and unexpected costs — not ongoing operations.
What 's Driving the Fiscal Pressure?
Public Safety costs
Have increased by approximately $2.4 million over the
last year due to increased contract costs.
Increased wildfire prevention costs
Due to heightened fire risk, expanded fuel reduction
efforts, rising maintenance and contractor costs, and an additional $1.5 million for tree maintenance.
Street sweeping contract costs Risk management and insurance costs Remain highly unpredictable and continue to create
budget uncertainty, with an increase of $357,000.
Rising Costs and Aging Facilities
Rising costs associated with utilities, landscaping, park maintenance, and aging facilities.
More than 80% of Chino Hills is now designated in high or very high fire hazard zones following State map updates — dramatically increasing the cost of preparedness and vegetation management.
Have increased considerably in recent years, resulting in a $367,000 increase of General Fund support.
What the City has Done to Manage Costs
The City has taken responsible steps to manage public funds and create healthy Reserves.
Aggressively pursued and
secured millions in grant,federal,
and county funding
Regularly evaluated contracts and
operations to ensure competitive
pricing
Advocated for a fairer share of
property tax revenue from
county officials
Deferred or scaled back non-
essential street, park, and facility
maintenance projects
Invested in long-term efficiency through
drought-tolerant landscaping,recycled
water,and energy-saving upgrades
Kept City staff lean to manage
personnel costs
General Fund Unrestricted Reserves
$25 ,419 ,041
Unrestricted Reserves
Available reserves not legally
restricted for a specific purpose.
Recent budget deficits have required the use of reserves to balance the budget.
While the City currently maintains $25.4M in unrestricted reserves, ongoing deficits would reduce those reserves over time.
$25 .4 (55 %)
Unrestricted Reserves
$20 .6 (45 %)
Restricted Reserves
Total General Fund Reserves: $46 .0M
Current Trends Are Not Sustainable
$25 .4M
Projected Reserves
at June 30, 2027
-$28 .4M
Reserve Decline
Unrestricted reserves will be completely exhausted if trends continue -$3.0M
Projected Reserves
Without action, the City's financial reserves will continue to erode as expenditure growth outpaces revenue growth year after year.
Projected Reserves in 5 years
at June 30, 2031
General Fund Revenue Sources
The General Fund is the primary operating fund of the City and is supported by a variety of revenue sources, including:
•Property tax
•Sales tax
•Transient occupancy tax
•License fees
•Permit fees
•Charges for services
•Other sources
Where Local Revenue Goes
Most local revenue generated in Chino Hills gets sent
to the State, County, or other agencies.
How Much Property Tax Stays in Chino Hills?
Despite being a high-value community, Chino Hills receives one of the lowest city shares of property tax in all of San Bernardino County — leaving the City with limited flexibility to fund growing service demands.
$0.04
Of Every Property Tax Dollar
For every dollar of property tax
collected in Chino Hills, the City
receives only about 4 cents.
The City has sought a higher share of property tax revenue, but those efforts have not been successful.
How Much Sales Tax Stays in Chino Hills
Of approximately $83 million projected to be generated in local sales tax revenue, only about $10.7 million will stay in Chino Hills. The vast majority of revenue collected here flows out of the community.
The Reality of Local Sales Tax
$10.7M
is projected to stay in Chino Hills of $83M
collected locally
The remaining $72.3 million flows to the State and
County — funds that cannot be directed toward
local priorities.
Why Local Control Matters
When revenue is locally controlled, it can be directed to the priorities Chino Hills residents care about most — with full transparency and accountability to the community.
WITHOUT LOCAL CONTROL
Funds Spent Elsewhere
Less Local Flexibility
Less Accountability
WITH LOCAL CONTROL
Every dollar raised
locally is invested back
into the community.
Local Priorities
Addressed
Resources go directly to
what residents value
most.
Local Oversight &Transparency
Revenue flows to state and county priorities, not
Chino Hills needs.
City cannot direct funds to address community-
specific challenges.
Residents have no direct say in how their
tax dollars are spent.
Funds Stay in
Chino Hills
Community members can track
and verify how funds are used.
Preparedness Requires
Ongoing Investment
With more than 80% of Chino Hills now in high
or very high fire hazard zones, wildfire
preparedness is no longer optional — it is an
essential, ongoing municipal responsibility.
Weed Abatement
Tree Trimming
Fuel Reduction
Evacuation Readiness
2020 Blue Ridge Fire
Planning for Long -Term Stability
Chino Hills is committed to a calm, responsible, and forward-looking approach to fiscal planning — one that protects what residents value today while building a foundation for the future.
1Maintain Services
Preserve the high-quality public safety, parks,
and infrastructure services residents depend on.
2 Protect Infrastructure
Invest in roads, facilities, and systems before
deferred maintenance becomes a crisis.3Prepare for Challenges Build resilience against wildfires, economic
downturns, and unforeseen emergencies.4 Preserve Quality of Life Protect the community character, open spaces,
and amenities that define Chino Hills.5Ensure Local Control Keep revenue decisions and accountability in
the hands of the Chino Hills community.
Evaluating Long –Term Financial Strategies
A comprehensive overview of potential strategies to address the City's fiscal challenges and ensure long-term stability.
Restrictions or ChallengesCan Fund Ongoing ServicesPotential Revenue ImpactOption Requires voter approvalLimitedLow–Moderate ($1M - $3M)Business License Tax Requires voter approvalYesHigh ($11.5M)Local Transaction and Use Tax (Sales Tax)
Paid by all property
owners/Specific purposeLimitedModerate (varies)Parcel Tax Requires LegislationLimited/YesModerate-High ($3M - $5M)Property Tax Must relate to service
providedVery LimitedLow (<$1M)Increasing User Fees /
Cost Recovery
What Does a 1 %Sales Tax Mean ?
Residents may have heard or read about the City discussing a sales tax measure lately.
A 1% local sales tax means one additional penny for every dollar spent on taxable purchases.
AN ADDITIONAL
ONE PENNY
Sales Tax Rates Compared to Other Cities
Chino :
8.75%
Chino Hills :
7.75%
Ontario:
8.75%
Corona :
8.75%
Pomona :
10.5%
PER $1 SPENT
ON QUALIFYING
PURCHASES
Shared Responsibility
A local sales tax is not paid by residents alone. The burden is shared broadly — with visitors, commuters, and shoppers from outside Chino Hills contributing every time they make a purchase in the City.
Who Pays ?
ResidentsLocal households shopping in
the city
Visitors
People from neighboring cities
shopping locally
Businesses
Commercial activity and business purchases
Research shows that about two-thirds, or 65%, of visitors to the City’s largest retail destinations come from outside of Chino Hills.
Transparent &Accountable
Any local revenue measure would come with strong accountability protections — ensuring funds are used exactly as promised and that residents can verify how every dollar is spent.
Independent Audits
Regular independent financial audits
to verify proper use of all funds.
Funds Remain Local
All revenue raised locally stays in Chino Hills — it cannot be taken by the State.
Transparent Budgeting
Open budget process with public hearings and
community input at every stage.
Public Reporting
Annual public reports detailing how
revenue is collected and spent.
Community Priorities
Maintaining the services, spaces, and community character residents value.
Streets & Infrastructure
Maintaining local streets,
sidewalks, and
infrastructure that support
daily life and mobility.
Wildfire Preparedness
Preparing for and
responding to wildfires and
reducing fire risk through
vegetation management.
Public Safety
Helping prevent crime,
theft, and burglaries while
maintaining emergency
response services
residents rely on.
Residents consistently ranked public safety, wildfire preparedness, and infrastructure maintenance among the City's highest priorities.
Community Education &Budget Discussions Continue
The City of Chino Hills is committed to an open, transparent process — engaging residents at every step as budget decisions are developed and evaluated.
Budget Adopted
City Council adopted the FY 2026-27
budget on June 9 and directed staff to
explore revenue enhancement options.
Public Engagement
The City has engaged the public through
community surveys, budget videos, and
increased outreach and communication.
Community Outreach
Understanding the Budget presentations
provides opportunities for residents to
learn, ask questions, and share input.
July 14 City Council Meeting
The City Council will discuss potential
long-term financial strategies which may
include a sales tax measure.
Questions ?
Visit chinohills.org/CityBudget for more
information and updates as we continue
conversations with the community.
Comment cards are also available for anyone
who does not want to ask a question publicly.