Fontana City Council
July 22, 2025

27368 Via Industria, Suite 200
Temecula, California 92590-4856
800.755.6864 | Fax: 888.326.6864
951.587.3500 | Fax: 951.587.3510
www.willdan.com
730
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0416 Agenda Date: 7/22/2025
Agenda #: D. Category: Public Hearing
FROM:

Planning Department
SUBJECT:

Master Case No. 25-0019 and Municipal Code Amendment (MCA) No. 25-007: Fontana Municipal Code amendments to multiple sections of the Fontana Zoning and Development Code to revise signage regulations within the Downtown Core, streamline the approval process for various sign types and to prohibit feather and yard signs pursuant to the certified General Plan Environmental Impact Report (State Clearinghouse [SCH] No. 2016021099) and Public Resources Code Section 21083.3
RECOMMENDATION:

1. Determine that the proposed amendments in the Ordinance are consistent with the Fontana General Plan and certified General Plan Environmental Impact Report (EIR) (State Clearinghouse No. 2016021099) and so qualifies for an exemption from CEQA specifically Public Resources Code 20183.3 and CEQA Guidelines Section 15183 as the proposed amendments will have no new or more severe significant environmental effect “peculiarto”the Ordinance than discussed in the certified EIR and will have no significant off-site and cumulative impacts not discussed in that EIR as long as all applicable mitigation measures in the certified EIR will be undertaken; and

2. Read by title only and waive further reading of and introduce Ordinance No. 1974, an Ordinance of the City Council of the City of Fontana approving Master Case No. 25-0019 and Municipal Code Amendment No. 25-0007 to modify the sign code section to encourage attractive signage in the Downtown Core by allowing flexibility in design requirements and streamlining the approval process for creative signs, sign programs, wall signs, directional signage, awning signs, canopy signs, inlay signs, graphic projecting signs, projecting signs, holiday window signs and roof signage, and prohibiting feather and yard signs.

COUNCIL GOALS:
· Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by establishing a quick, consistent development process. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

Background:

1. The City of Fontana Zoning and Development Code regulates the development of commercial, industrial, and residential projects. Staff conducts ongoing reviews of the municipal code to City of Fontana Printed on 7/17/2025Page 1 of 4
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File #: 25-0416 Agenda Date: 7/22/2025
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industrial, and residential projects. Staff conducts ongoing reviews of the municipal code to determine where language within the code would benefit from updates, clarifications, and/or redefinition to help streamline zoning and facilitate the development process.

2. In 2018, the City adopted its current General Plan, which includes goals and objectives aimed at making a positive visual image of the Downtown Core area through new sign programs to allow attractive, creative signage.

3. In 2019, the City adopted the Form Based Code, which established mixed-use districts throughout the City to encourage residential and commercial uses with a focus on walkability and the pedestrian experience.

4. In 2023, the City amended Chapter 30 of the FMC (“the Zoning and Development Code”) for the Downtown Core Project under the SB2 Grant to focus on creating a more viable area through amendments to the Zoning and Development Code, including signage.

Analysis:

The amendments to the Zoning and Development code will add regulations for Sign Programs and allow creative signs within the Downtown Core. The amendments will align with the 2015-2035 General Plan goal of making a positive visual image of the Downtown Core and integrating clear way finding, artistic signage, scaled for the pedestrian visibility to help explore the Downtown area on foot.

Clear signage helps to attract local and regional visitors that would help drive economic growth for the city.

Municipal Code Amendment No. 25-0007 :

The Municipal Code Amendments will modify the sign section of the zoning code to allow for attractive signage in the Downtown Core. The amendments will regulate sign programs and allow creative signs for the district.

The sign types referenced below are currently regulated in the Zoning and Development Code. The following amendments are intended to provide greater flexibility and a more streamlined approval process.

The following is a summary of the sign code amendments:

Downtown
Core
Creative
Sign
: Allows for creative signage that deviates from the other regulations of the Zoning and Development Code. Signs must be creative in design and match or enhance the architecture of the building. Façade improvements are permitted in the design but must be in close proximity of the creative sign. Businesses may use commercial murals, which are considered as a Downtown Core Creative sign that reflect imagery of their brand, products or services that will create visual interest in the Downtown. High quality electronic signs are limited to businesses advertising live events and screenings such as movie theaters and event venues. A Minor Use Permit will be required for electronic signs to ensure no other types of businesses are advertised. All other creative signs will require a Design Review Sign Application which are reviewed ministerially without a public hearing.

Downtown
Core
Sign
Programs
: The Sign Program will allow commercial areas to set their own development standards for signage. Commercial sites must be at least one acre or be made up of a City of Fontana Printed on 7/17/2025Page 2 of 4
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File #: 25-0416 Agenda Date: 7/22/2025
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development standards for signage. Commercial sites must be at least one acre or be made up of a two-story building to qualify. Like the Downtown Core Creative Sign, signage is permitted to have façade changes in proximity of signage, electronic messages for screenings and live events and allow for commercial murals. The standards set for this signage must be attractive and compatible with the buildings and area.

Wall
Signs
: The current Zoning Code allows up to 100 square feet for a wall sign, which has commercial businesses flexibility in having larger signs. This amendment will allow commercial tenants the ability to build a secondary sign. Secondary signs are often used to add graphics or slogans which often enhance the character of the frontage. Similar to the signs mentioned above, wall sign applicants have the opportunity to modify facades to enhance the visual aesthetics of a building. Wall sign applicants will be required to provide extra signage such as a secondary sign or any sign listed in this amendment. This will ensure that attractive signage is built in the Downtown Core.

Projecting
Signs
: Projecting signs are popular in many historic Downtowns. These signs extend from building facades and extend vertically. The current code only allows fifteen square feet for projecting signs, but this amendment will allow them at one and a half square feet per adjacent building frontage.

Other changes to the sign requirements:
· Awning Signs
:
o Current
: Allowed 25% square footage of an awning area.
o Proposed
: Allowed 30% square footage coverage of awning area.
· Canopy Signs
:
o Current
: Allowed 25% square footage of surface area of canopy. o Proposed
: Allowed one square foot of sign area per each lineal foot of tenant frontage. · Driveway/on-site traffic directional sign
:
o Current
: Only allowed on driveways.
o Proposed
: Allowed along the right-of-way to help locate parking areas. · Floor Inlay Sign
:
o Current
: Must be located within tenant’s parcel.
o Proposed
: Allowed in right-of-way with City Engineer approval.
· Graphic Project Sign
:
o Current
: Allowed up to ten square feet.
o Proposed
: Allowed up to twenty square feet.
· Roof Sign
:
o Current
: Not permitted.
o Proposed
: Allowed for larger buildings and may only be used to name the local area or building.
· Yard and Feather Signs
:
o Current
: Permitted.
o Proposed
: Not permitted.

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File #: 25-0416 Agenda Date: 7/22/2025
Agenda #: D. Category: Public Hearing
Planning Commission:

On July 1, 2025 the Planning Commission voted 4-1 to recommend approval of the Zoning Code Amendment as recommended by Planning Department staff and approved Resolution 2025-023.

Planning Commissioner Dylan Keetle voted against the Resolution in favor of a motion that would require that Creative Signs and Sign Programs be reviewed by the Planning Commission instead of the Planning Director.

FISCAL IMPACT:

None.

MOTION:

Approve staff’s recommendation
ATTACHMENTS:

Attachment No. 1 - Planning Commission Resolution Recommendation for City Council Attachment No. 2 - Exhibit A
Attachment No. 3 - Planning Commission Minutes
Attachment No. 4 - Notice of Exemption
Attachment No. 5 - Public Hearing Notice
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ATTACHMENT NO. 1

ORDINANCE NO. 1974

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA, APPROVING AMENDMENTS TO MULTIPLE SECTIONS

OF THE FONTANA ZONING AND DEVELOPMENT CODE TO REVISE

SIGNAGE REGULATIONS WITHIN THE DOWNTOWN CORE,

STREAMLINE THE APPROVAL PROCESS FOR VARIOUS SIGN TYPES,

AND TO PROHIBIT FEATHER AND YARD SIGNS , PURSUANT TO THE

CERTIFIED GENERAL PLAN ENVIRONMENTAL IMPACT REPORT
(STATE CLEARINGHOUSE [SCH] NO. 20160210 99) AND PUBLIC
RESOURCES CODE SECTION 21083.3.

WHEREAS, pursuant to Government Code section 37100, the legislative body of a city may pass ordinances not in conflict with the Constitution and laws of the State or the United States; and
WHEREAS, Government Code sections 50022.1 to 50022.10 authorizes a city to codify and recodify its ordinances; and

WHEREAS, the City of Fontana (“City”) desires to restate without substantive revision, amend and recodify certain ordinances codified in the Fontan a Municipal Code (“Code”) through Municipal Code Amendment (“MCA”) No. 25-0007; and

WHEREAS, the City of Fontana General Plan (“General Plan”) includes policies and actions calling for numerous updates to the Code; and

WHEREAS, Use Table No. 30 -721.A. is amended to allow projecting and holiday window signs within the Downtown Core; and

WHEREAS, Use Table No. 30 -725.A. is amended to introduce two new categories of sign permits types, along with the designation of the bodies responsible for their review and process for appealing decisions; and

WHEREAS, Sections 30 -731 and 30 -731.1 is amended to establish comprehensive Downtown Core Sign Programs, specifically detailing requirements, standards and permitted uses; and

WHEREAS, Sections 30-732 and 30 -732.1 are amended to regulate Downtown Core Sign Programs, specifically detailing requirements, standards and permitted uses; and

WHEREAS, the Use Table 30 -742.A. is amended to incorporate Downtown Core regulations for Residential uses; and

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Ordinance No. 1974

WHEREAS, the Use Table and 30-743.A. is amended to incorporate Downtown Core regulations for nonresidential uses in commercial, mixed-use, and form -based zoning districts; and

WHEREAS, Sections 30-746(a)(2), (b)(2), (b)(3), (b)(4) and (f)(5) are amended to establish standards for permanent sign types within the Downtown Core; and

WHEREAS, Use Table 30 -747.A. is amended to inc orporate Downtown Core standards for permanent signs for specific uses for nonresidential uses within the Downtown boundary; and

WHEREAS, Use Table No. 30 -751.A. is amended to incorporate Downtown Core standards for nonresidential zoning districts; and

WHEREAS, State law requires zoning regulations to be consistent with the general plan and therefore updating the Code would contribute to consistency with the General Plan; and

WHEREAS, the amendments in MCA No. 25-0007 are consistent and compatible with the General Plan and are in line with goals, policies and objectives of the City , the Housing Element policies and the Zoning and Development Code; and WHEREAS, the amendments in MCA No. 25 -0007 are in conformity with appropriate land use practices and will establish appropriate development standards for the land use designations; and

WHEREAS, the amendments in MCA No. 25-0007 are attached hereto as Exhibit “A” and incorporated herein by this reference, will not be detrimental to the public health, safety and general welfare, nor will it adversely affect the orderly development of property; and

WHEREAS, the amendments in MCA No. 25 -0007 will better express the City’s policies and will generally promote good land use planning and regulation; and

WHEREAS, on July 1, 2025, the Planning Commission held a public meeting on MCA No. 25 -0007 where it received evidence and public testimony on the Code amendments and recommended that the Fontana City Council (“City Council”) determine that the proposed amendments are consistent with the Fontana General Plan and certified General Plan Environmental Impact Report (EIR) (State Clearinghouse No. 2016021099) and so qualifies for an exemption pursuant to the from California Environmental Quality Act (CEQA), specifically Public Resources Code 21083.3 and CEQA Guidelines Section 15183, as the proposed amendments in the Ordinance will have no new or more severe significant environmental effects “peculiar to” the Ordinance than discussed i n the certified EIR and will have no significant off -site and cumulative impacts not discussed in that EIR as long as all applicable mitigation measures in the certified EIR will be undertaken; and
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Ordinance No. 1974

WHEREAS, the Planning Commission carefully considered all evidence and testimony presented at its public hearing on Ju ly 1, 2025 regarding MCA No. 25 -0007 and approved Resolution No. 2025 -023 recommending that the City Council adopt the modifications to the Zoning and Development Code contained therein; and

WHEREAS, on July 22, 2025, the City Council held a public hearing on MCA No. 25-0007 where City Council received evidence and public testimony pertaining to the Zoning and Development Code amendments as well as documentation from the Planning Commission’s public hearing on July 1, 2025; and

WHEREAS, the City Council carefully considered all information pertaining to MCA No. 25-0007 presented at its public hearing on July 22, 2025; and

WHEREAS, all other legal prerequisites to the adoption of this Ordina nce have occurred.

NOW, the City Council of the City of Fontana, California, DOES ORDAIN as follows:

Section 1. Recitals. The recitals are true, correct and incorporated herein by this reference.

Section 2. CEQA. The City Council hereby finds that the proposed amendments in the Ordinance are consistent with the Fontana General Plan and certified General Plan Environmental Impact Report (EIR) (State Clearinghouse No. 2016021099) and so qualifies for an exemption from CEQA, specifically Public R esources Code 21083.3 and CEQA Guidelines Section 15183, as the proposed amendments will have no new or more severe significant environmental effects “peculiar to” the Ordinance than discussed in the certified EIR and will have no significant off-site and cumulative impacts not discussed in that EIR as long as all applicable mitigation measures in the certified EIR will be undertaken.

Section 3. Development Code Amendment Findings. The City Council hereby makes the following findings for Municipal Code Amendment No. 25-0007 accordance with Section 30-40 “Purpose” of the Fontana Zoning and Development Code:

Finding: A Zoning and Development Code may be amended by changing the dev elopment standards (text) or zoning designation map boundaries of any zone whenever such an amendment is
deemed necessary to protect or promote the public's health, safety or general welfare or when modification is viewed as appropriate in the context of g enerally accepted planning principles, surrounding land uses, and the General Plan.

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Ordinance No. 1974

Findings of Fact: The Municipal code amendments modify Article XII (Sign Regulations) of the Zoning Code and encourage attractive signage in the Downtown Core by allowing flexibility in design requirements and streamlining the approval process for creative signs, sign programs, wall signs, directional signage, awning signs, canopy signs, inlay signs, graphic projecting signs, projecting signs, holiday window signs and roof signage, and prohibiting feather and yard sign. These amendments would encourage visually attractive signage in the Downtown area as a local and regional destination.

The amendments are appropriate, aligning with generally accepted planning principles, com patible with surrounding land uses, and consistent with the General Plan.

Section 4. Development Code Amendment Approval. Based on the foregoing, the City Council hereby approves the amendments as set forth in MCA No. 25-0007, attached hereto as Exhibit “A” and incorporated herein by this reference as fully set forth herein.

Section 5. Effective Date/Publication. This Ordinance shall take effect thirty (30) days after the date of the adoption and prior to the expiration of fifteen (15) days from the passage thereof, shall be published by the City Clerk at least once in the Fontana Herald News, a local newspaper of the general circulation, published and circulated in the City of Fontana, and henceforth and thereafter the same shall be in full force and effect.

Section 6. Custodian of Records. The documents and materials that constitute the record of proceedings on which this Ordinance is based are located at the City Clerk’s office located at 8353 Sierra Avenue, Fontana, CA 92335. The custodian or records is the City Clerk.

Section 7. Certification. The City Clerk of the City Council shall certify to the adoption of this Ordinance.

Section 8. Severability. If any provision of this Ordinance or the application of any such provision to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Ordinance that can be given effect without the invalid provision or application.

APPROVED AND ADOPTED this 22nd day of July 2025

READ AND APPROVED AS TO LEGAL FORM:

______________________________
City Attorney

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Ordinance No. 1974

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing Ordinance is the actual Ordinance adopted by the City Council and was introduced at a regular meeting on the 22nd day of July 2025, and was finally passed and adopted not less than five days thereafter on the 9th day of September 2025, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
City Clerk of the City of Fontana

______________________________
Mayor of the City of Fontana

ATTEST:

______________________________
City Clerk

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AMENDMENT TO FONTANA MUNICIPAL CODE CHAPTER 30
(*Additions shown in underline, deletions shown in strikeout) (Divisions not referenced are to remain)

ARTICLE XII. SIGN REGULATIONS

DIVISION 2. APPLICABILITY

(Sections 30-719 to 30-721 to remain)

Table No. 30-721.A.

Exempt Signs with Limitations
Exempt signs do not require design review sign approval, but may require building permits Sign Type Maximum
Number
Maximum Sign
Area
Maximum Sign Height Additional Requirements

1. Permanent Signs
a. Projecting signs
(Downtown only)

In addition to
wall signs: 1 per
tenant space
15 sf Must be below eave line and
maintain a minimum vertical
clearance of at least eight feet
from bottom of such sign to
highest finished grade shall be
maintained
• Permitted within downtown
boundary only.
• A tenant space shall be allowed
either a Downtown Core Projecting
Sign or a Projecting Sign otherwise
permitted under the provisions of
this Section, but not both. (Refer to
the Table in Section 30-743.A(h) for
specific regulations pertaining to
Downtown Core Projecting Signs.)
• Such signs shall project no more
than four feet from the face of the
building wall upon which the sign is
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mounted.
• Any encroachment into City
right-of-way is subject to City
Engineer approval and requires an
encroachment permit.
• Such signs, including supporting
structures, shall be designed as an
integral design element of a
building's architecture and shall be
architecturally compatible with any
building to which the sign is to be
attached. Where more than one
sign is provided, all signs shall be
complementary to each other.
b. Suspended
signs
1 per each
street frontage
per
nonresidential
tenant
4 sf A minimum vertical clearance of at
least eight feet from bottom of
such sign to highest finished grade
shall be maintained
• Such signs shall be limited to
building frontages on the ground
floor of nonresidential buildings.
• Any encroachment into City
right-of-way is subject to City
Engineer approval and requires an
encroachment permit.
• Such signs, including supporting
structures, shall be designed as an
integral design element of a
building's architecture and shall be
architecturally compatible with any
building to which the sign is to be
attached. Where more than one
sign is provided, all signs shall be
complementary to each other.
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c. Window signs N/A 25 percent of
the total
window glass
area of the first
floor, including
glass doors, of
the building
frontage.

N/A • Such signs shall be placed so that
law enforcement and public safety
personnel have a clear and
unobstructed view of the interior
of the establishment, including
cash registers.
• Signs inside the building not
mounted to windows shall not be
located within three feet of the
window.
• Illuminated and electronic
message window signs shall comply
with Section 30-734.
• Perforated and/or transparent
window signs shall count towards
the cumulative allowable sign area.
• Window signs shall not be
located on any window above the
second story.
• Window signs shall be
maintained in good condition.
d. Downtown
Core Holiday
Window Signs
For all window
areas
Fifty percent of
window area
N/A  Only permitted in the
Downtown Core
 Windows signs as specified in
subsection (c) above are
permitted.
 Signs shall be positioned so as
to ensure a clear and
unobstructed view of the
interior of the establishment.
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 Signs located inside the
building, but not mounted on
windows, must be placed at
least three feet from the
window.
 Illuminated and electronic
message window signs shall
comply with Section 30-734.
 Sign display is restricted to
federal and state recognized
holidays
 Display of these signs are
limited to the period beginning
forty-five (45) days before a
federal or state recognized
holiday and ending fifteen (15)
days after that holiday.

DIVISION 4. DESIGN REVIEW SIGN REQUIREMENTS
Sec. 30-725. Reviewing bodies.

The following reviewing bodies shall make decisions on the design review sign applications provided for in this article. All reviewing bodies shall be responsible for the design review sign applications indicated in Table No. 30-725.A.

DCD—Director of Community Development—Approval Body
PC—Planning Commission—Approval Body
CC—City Council—Approval Body
X—Indicates the reviewing and/or the Approval Body
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Table No. 30-725.A.

Responsible Reviewing Bodies
Reviewing Body Appeal Body
Permit Type DCD PC CC PC CC
Design Review Temporary Sign X X
Design Review Permanent Sign—General X X
Design Review Permanent Sign—Freeway Sign X X
Design Review Permanent Sign—Electronic Message
Sign

X X
Design Review Creative Sign (Minor) X X
Design Review Creative Sign (PC) X X
Downtown Core Creative Sign X X
Downtown Core Sign Program X X

(Sections 30-726 to 30-730 to remain)

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Sec. 30-731. Design review creative sign (PC).
(a) Purpose. The purposes of design review creative sign (PC) approvals are to:
(1) Encourage signs of unique design and signs that exhibit a high degree of thoughtfulness, imagination, and inventiveness;
(2) Provide a process for the application of sign regulations in ways that will allow creatively designed signs that make a positive visual contribution to the overall image of Fontana, while mitigating the impacts of large or unusually designed signs; and (3) Provide a process for the approval of commercial murals and other emerging sign types that portray Fontana in a positive light and enhance the local aesthetic.

Figure No. 30-731.1

Examples of possible design review creative sign (PC) applications (b) Applicability.
(1) Location. An applicant may request design review creative sign (PC) approval to authorize one on-site permanent creative sign in the following areas:
a. Within the downtown boundary. For creative signs in the Downtown Core, Section 30-371.1 shall apply; or
b. On properties with frontage on Baseline Avenue, Foothill Boulevard, Sierra Avenue, or Valley Boulevard.

(The rest of Section 30-731 to remain)

Sec. 30-731.1. Downtown Core Creative Sign.

(a) Purpose. The purpose of this section is to :

(1) Encourage distinctive signage that demonstrates unique design and exhibits a high degree of thoughtfulness, imagination, and inventiveness thereby creating a dynamic and attractive Downtown Core;
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(2) Establish a process for implementing sign regulations that facilitate the approval of creatively designed signs that shall make a positive visual contribution to the overall image of the Downtown Core, while mitigating the impacts of large or unusually designed signs; and

(3) Provide a process for the approval of commercial or residential murals and other novel sign types that positively represent Fontana and enhance the local aesthetic.

(b) Applicability.

(1) Location. An applicant may seek approval to authorize the installation of one (1) on- site permanent creative sign within the Downtown Core.

(2) Requirements. An applicant may request approval to utilize standards that deviate from the requirements applicable to signs established in this Article, provided such deviation complies with the specific provisions of this Section, subject to the following conditions:

a. A Downtown Core Creative Sign may deviate from the applicable standards established in this article with façade modifications, when approved by the Director of Planning through a Design Review Sign Application. i. Only one Downtown Core Creative Sign may be requested per Design Review Sign Application.
b. This subsection shall not authorize general advertising where it is not otherwise allowed.
c. A Downtown Core Creative Sign approval shall not authorize any prohibited sign type or feature set forth in Section 30-722 except where specifically authorized.
d. Electronic message signs are only permitted to promote live events and screenings. The site must have a business associated with live events and/or screenings. In addition, the electronic message sign must comply with Section 30-734(c).
e. Applicants proposing an electronic message sign must have the approval of a Minor Use Permit to ensure compliance with the findings below.

(c) Findings . The following findings are required to be made by the responsible reviewing body for the approval of a Downtown Core Creative Sign application:

(1) Design criteria.

The proposed creative sign shall meet the following design criteria:
a. The sign complies with the design principles set forth in Section 30-727; 746

b. The sign exhibits a unique design and a high degree of imagination, inventiveness, spirit, and thoughtfulness through the use of color, graphics, proportion, quality materials, scale, and texture;
c. The sign contributes a substantial aesthetic improvement to the site and has a positive visual impact on the surrounding area;
d. The sign utilizes or enhances the architectural elements of the building and is placed in an appropriate location in relation to the overall composition of the building's façade;
e. Any proposed façade modifications are demonstrably necessary for the structural integration of the sign or are located in the immediate vicinity of the sign to enhance its visual interest;
f. Any proposed commercial mural must depict imagery directly connected with the business and project a positive impression; and g. Electronic message signs may only be used for businesses to promote live events and screenings and must comply with Section 30-734.

(2) Contextual criteria. The creative sign shall be located and designed not to cause light and glare impacts on surrounding uses, especially residential uses. The sign shall also contain at least one of the following elements:
a. Creative image reflecting current or historic character of Fontana; or b. Inventive representation of the logo, name, or use of the structure or business.

Sec. 30-731.12. - Sign programs.
(a) Purpose. The purpose of the sign programs are to:
(1) Provide coordinated signage within a development project; (2) Create common design elements;
(3) Provide customed tailored site-specific standards; and (4) Integrate the design of signs with the overall building and landscape design to form an architectural statement.

(b) Applicability.
(1) Location. An applicant may submit a comprehensive sign program application (design review sign program) if they meet the following criteria:
a. A new or existing shopping center with a site area of six acres or more; b. Mixed-use or commercially zoned properties; and
c. On properties with frontage on Baseline Avenue, Foothill Boulevard, Sierra Avenue, or Valley Boulevard.; and
d. For sign programs within the Downtown Core, Section 30-732.1 shall apply.

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(c) Findings and decision. The following findings are required to be made by the responsible reviewing body for approval of a design review creative sign (PC) application, with or without conditions:
(1) Design criteria. The proposed creative sign:
a. Complies with the design principles set forth in Section 30-727; b. Has a unique design and exhibits a high degree of imagination, inventiveness, spirit, and thoughtfulness through the imaginative use of color, graphics, proportion, quality materials, scale, and texture;
c. Contributes a substantial aesthetic improvement to the site and has a positive visual impact on the surrounding area; and
d. Utilizes or enhances the architectural elements of the building and is placed in an appropriate location in relation to the overall composition of the building's façade.

(2) Contextual criteria. The creative sign shall be located and designed not to cause light and glare impacts on surrounding uses, especially residential uses. The sign shall also contain at least one of the following elements:
a. Creative image reflecting current or historic character of Fontana; or b. Inventive representation of the logo, name, or use of the structure or business.

Sec. 30-731.3. – Downtown Core Sign Program.
(a) Purpose. The purpose of Downtown Core Sign Program is to:
(1) Provide coordinated signage within a Downtown Core site; (2) Create common design elements;
(3) Provide custom tailored site-specific standards;
(4) Integrate the design of signs with the overall building and landscape design to form an architectural statement; and
(5) Allow façade improvements in direct vicinity of proposed signage.

(b) Applicability and Eligibility.
(1) Location. The Downtown Core Sign Program must pertain to sites situated within the Downtown Core.
(2) Eligibility. In addition to the general location requirement above, the site for which a Downtown Core Sign Program application is submitted must satisfy at least one of the following criteria:
a. The site is a commercial or mixed-use property with commercial or office space measuring one (1) acre or larger, excluding any stand-alone single- family residences (including ADU’s); or
b. The site is a commercial, mixed-use, or residential property that is two (2) stories or higher.
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(3) Requirements. An applicant may request Director’s approval of a Downtown Core Sign Program through a Design Review Sign Application, consistent with the following:
a. A site plan showing the location of buildings, parking lots, driveways, lot size, building height, and landscaped area;
b. The maximum total sign area, the maximum area for individual signs, the height of signs and the number of signs allowed;
c. An accurate indication on the site plan of the proposed location of each proposed sign and existing sign which is to remain;
d. Show areas of all façade changes including color and material which must be architecturally compatible with the proposed signage and close proximity to proposed signage;
e. Lighting and sign construction materials;
f. Sign dimensions (if tenants are not known, generic dimensions may be presented);
g. Where proposed signage does not meet the requirements of existing sign regulations, the sign program shall provide enhanced design or other elements;
h. Sites along Route 66 must meet the requirements of Section 30-727; and i. Electronic message signs are only permitted to promote live events and screenings. The site must have a business associated with live events and/or screenings. In addition, the electronic massage sign must comply with Section 30-734(c).
i. Applicants proposing an electronic message sign must have the approval of a Minor Use Permit to ensure compliance with this section.

DIVISION 6. PERMANENT SIGNS

Sec. 30-741. Permanent sign standards by zoning district/use.

All permanent signs shall comply with the standards set forth in this division. Additional permitted signs are included for specific uses listed under Section 30-747. Table No. 30-742.A, Table No. 30-743.A, Table No. 30-744.A, and Table No. 30-745.A identify the sign type, number, location, area, and height allowed within each zoning district, along with any applicable additional regulations. The standards contained in this section are maximums, unless otherwise stated.

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Sec. 30-742. Permanent sign standards for residential uses in all zoning districts.

Table No. 30-742.A.

Residential Uses in All Zoning Districts
Sign Type Maximum
Number
Maximum Sign
Area
Maximum Sign
Height
Additional
Regulations

1. Single-Family Residential Subdivision Development in Residential Zoning Districts a. Monument sign 1 per major
neighborhood
entrance
30 sf 5 ft (includes
decorative base
and cap)
• Permitted
only at major
neighborhood
entrances
• See
subsection 30-
746(d)
• See
subsection 30-
736(f)

2. Multiple-Family Uses
a. Monument sign 1 per street
frontage with
entrance
24 sf 5 ft (includes
decorative base
and cap)
• Permitted
only at major
neighborhood
entrances
• See
subsection 30-
746(d)
• See
subsection 30-
736(f)
b. Wall sign 1 per street
frontage
16 sf

Downtown Core:
16 sf for channel
letters and 16 ft
for logo

Shall not be
displayed above
second story and
shall not extend
above eave line
• See
subsection 30-
746(f)
• See
subsection 30-
736(g)

c. Driveway/on-
site traffic
directional sign
1 per driveway

Downtown Core:
8 sf 4 ft • Permitted
only for
developments
with more than
750

1 per frontage
and 1 per
driveway
12 dwelling
units
• See
subsections 30-
736(f) and 30-
736(g)

751

Sec. 30-743. Permanent sign standards for nonresidential uses in commercial, mixed use, and form-based zoning districts (C-1, C- 2, RMU, FBC).

Table No. 30-743.A.

Nonresidential Uses in Commercial, Mixed Use, and Form-Based Zoning Districts (C-1, C-2, RMU, FBC) and Specific Plans Without Sign Programs
Sign Type Maximum Number Maximum Sign Area Maximum Sign Height Additional Regulations a. Awning
sign
N/A 25 percent of the surface
area of the awning,
including all valances
Downtown Core:
30 percent of the surface
area of the awning,
including all valances

Awning shall not extend
above eave line
• See subsection 30-
746(a)
b. Canopy
sign
Single Tenant: 1 per
building frontage

Multiple Tenant: 1 per
tenant space
25 percent of the surface
area of the canopy
Downtown Core:
1 square foot of sign area
permitted per each lineal
foot of tenant frontage
24 inches, as measured
from the lowest point on
the sign
• See subsection 30-
746(b)
c. Monument
sign
1 for each 200 ft (lineal) of
street frontage
45 sf 6 ft (includes decorative
base and cap)
• See subsection 30-
746(d)
• See subsection 30-
736(f)
d. Pylon sign Single Tenant: 1 per street
frontage with a minimum
100 sf 25 ft (includes decorative
base and cap)
• Pylon signs permitted
only on lots with minimum
752

of 165 lineal ft of street
frontage

Multiple Tenant: 1 per
street frontage

Street frontages of 300 ft
or greater may have a
second pylon sign
area of two acres
• Pylon signs for single
tenants permitted only for
those lots with frontage
along Baseline Avenue,
Foothill Boulevard, Sierra
Avenue, or Valley
Boulevard
• See subsection 30-
746(e)
• See subsection 30-
736(f)
e. Wall sign Business frontages less
than 100 ft: 1 primary wall
sign per business frontage

Business frontages 100 ft
or more: 1 primary wall
sign and 2 optional
secondary wall signs per
business frontage.

Downtown Core:

Secondary wall signs are
permitted on every
frontage with a wall sign.

Business frontages less
than 100 ft: 1 sf of sign
area per lineal foot of
business frontage up to
100 sf.

Business frontages 100 ft
or more: 1 sf of sign area
per lineal foot of business
frontage up to 150 sf of
combined primary and
optional secondary wall
sign areas per business
frontage. Optional
secondary wall signs shall
not exceed 40 percent of
the total wall sign area per
business frontage.

Shall not extend above
eave line
• See subsection 30-
746(f)
• See subsection 30-
736(g)
• Downtown Core:

Secondary wall signs must
promote the primary
business. Can be located
below a canopy or façade,
but must have a minimum
vertical clearance of at
least eight feet from
bottom of the secondary
sign to highest finished
grade.
753

Downtown Core:

Secondary wall sign is
permitted up to 40 square
feet maximum
f.

Driveway/on-
site traffic
directional
sign
1 per driveway or drive-
through lane, plus:

• Single Tenant: 1 for
every 300 parking spaces

• Multiple Tenant: 1 for
every 200 parking spaces

Downtown Core:
1 per right-of-way
frontage

Single Tenant: 8 sf per sign
face

Multiple Tenant: 10 sf per
sign face
4 ft • Such signs may be in the
form of a monument sign,
pylon sign, projecting or
wall sign.
• See subsections 30-
736(f) and 30-736(g)
g. Freeway
sign
1 per parcel having a
minimum of 800 ft of
freeway frontage, and is
developed as a single
entity
150 sf for businesses
occupying less than
250,000 sf of building area
300 sf for businesses
occupying 250,000 sf or
more building area
50 ft (includes decorative
base and cap)
• See subsection 30-
746(c)
• See subsection 30-
736(f)
h. Projecting
signs
(Downtown
Core)
• 1 per tenant space with
50 feet of linear frontage
adjacent to the public
right-of-way and 5,000
square feet of floor space
Shall not exceed one and
one-half (1½) square feet
for each linear foot of
building frontage facing
the right-of-way (Area is
measured by maximum
N/A • Permitted within
Downtown Core only.
• Tenant spaces are not
permitted to have both a
Projecting Sign permitted
in Table 30-721.A and a
754

• May exist instead of,
but not in addition to, a
freestanding ground sign

width by maximum height
of the sign)
Projecting Sign
(Downtown Core).
• Must be located fifty
feet from any other
Projecting Signs
(Downtown Core)
• Such signs shall project
no more than six feet from
the face of the building
wall upon which they are
mounted.
• Any encroachment by a
Downtown Core Projecting
Sign into the City right-of-
way is subject to the
approval of the City
Engineer and shall require
an encroachment permit.
• Downtown Core
Projecting Signs, including
supporting structures,
shall be designed as an
integral architectural
element of the building
and must be
architecturally compatible
with the building to which
the sign is to be attached.
• The bottom edge of a
Downtown Core Projecting
Sign shall maintain a
755

minimum clearance of
nine (9) feet from ground
level.
• Downtown Core
Projecting signs must be
constructed with vertical
orientation.

(Sections 30-744 to 30-745 to remain)

756

Sec. 30-746. - Standards by permanent sign type.

(a) Awning sign. Awning signs are permitted pursuant to Section 30-743 and Section 30-744 and the following regulations:
(1) Location. Awnings that display signage shall be limited to building frontages on the ground floor of buildings.

Figure No. 30-746.1.

(2) Combined sign area. Combinations of signs on awnings, canopies, and walls are permitted but shall not exceed the maximum allowable sign area for wall signs per business frontage or building frontage. Awning signs may count as a primary wall sign or secondary wall sign.

Downtown Core: Awning signs within the Downtown Core are exempt from the maximum allowable sign area limitations that apply to wall signs.

(3) Vertical clearance. A minimum vertical clearance of at least eight feet from bottom of the awning, including valance, to highest finished grade shall be maintained.

Figure No. 30-746.2.

(4) Setback and projection into public right-of-way. A minimum of two feet between the edge of the awning and the outer curb face shall be maintained. Any encroachment 757

into City right-of-way is subject to City Engineer approval and requires an encroachment permit.

(b) Canopy sign. Canopy signs are permitted pursuant to Section 30-743 and Section 30-744 and the following regulations:
(1) Location. Canopies that display signage shall be limited to building frontages on the ground floor of buildings.
(2) Height. Canopy signs shall not project more than 24 inches above the highest point of any canopy, except for fueling station canopies pursuant to subsection 30-747(c).

Downtown Core: Signage located beneath a canopy is permitted, provided a minimum vertical clearance of eight (8) feet is maintained from the bottom of the sign to the highest finished grade. The maximum height of such signage shall not exceed twenty-four (24) inches..

Figure No. 30-746.3.

(3) Combined sign area. Combinations of signs on awnings, canopies, and walls are permitted but shall not exceed the maximum allowable sign area for wall signs per business frontage or building frontage (Does not apply to the Downtown Core).

Canopy signs may count as a primary wall sign or secondary wall sign. (4) Canopy signs prohibited in combination with projecting signs. Canopy signs shall not be permitted on street frontages with projecting signs, except for the Downtown Core.
(5) Setback and projection into public right-of-way. A minimum of two feet between the edge of the canopy and the outer curb face shall be maintained. Any encroachment into City right-of-way is subject to City Engineer approval and requires an encroachment permit.

(Subsections (c) to (e) to remain)

(f) Wall sign. Wall signs are permitted pursuant to Section 30-742, Section 30-743, Section 30- 744, and Section 30-745 and the following regulations:
758

(1) Location.
a. No wall sign shall cover, wholly or partially, any wall opening. b. Wall signs shall be placed flat against the wall of the structure and shall not project from the wall more than 12 inches.

(2) Letter height. Within multiple tenant commercial complexes, for tenants with less than 50 feet of business frontage, letter height shall be limited to 24 inches or 70 percent of the adjacent surface height, whichever is greater.

Figure No. 30-746.7.

(3) Roofs signs in lieu of primary wall signs. Where a roof sign is permitted due to a lack of available building mansard for a sign, such roof sign's allowable area shall be equivalent to the allowed sign area for wall signs. Roof signs shall count as primary wall signs.

(4) Exposed raceways. Exposed raceways for wall signs shall only be permitted by the Director of Community Development under the following circumstances:
a. The architecture of a building prevents the enclosure of a raceway within a wall (e.g., sign located on a pitched roof below the roofline of a building). In these cases, the area behind the sign shall not be visible to the public; or

b. Older complexes that extensively use cabinet signs may utilize exposed raceways, if the applicant can demonstrate that an enclosed raceway will require extensive structural changes to the exterior of a wall. 759

(5) Downtown Core: The area the wall sign is being constructed on (including the immediate adjacent area and plane surface area of the sign) may be modified when such changes enhance the visual quality of the sign. These modifications must be architecturally compatible with or enhance the aesthetic design of the attached building, including the materials, shapes and colors.

Sec. 30-747. Permanent signs for specific uses.
(All text before Table 30-747.A to remain)
760

Table No. 30-747.A.

Nonresidential Uses within the Downtown Boundary
Sign Type Maximum
Number
Maximum Sign
Area
Maximum Sign Height Additional Requirements
a. Floor Inlay
Sign
1 per tenant
entryway
25 sf Such signs shall be installed flush
with the pavement.

Such signs shall not be located
within the public right-of-way.

Downtown Core: May be approved
in the public right of way. Any
encroachment into City right-of-
way is subject to City Engineer
approval and requires an
encroachment permit.
b. Graphic
Projection Sign
1 per tenant
entryway

Downtown
Core:

One per
frontage
10 sf

Downtown
Core:
20 sf
A minimum vertical clearance of at
least eight feet from the bottom of
the device projecting the sign to
the highest finished grade shall be
maintained.
• Graphic projection shall not
blink, flash, flutter, or change light
intensity, brightness, or color.
• The illumination source of the
projector shall not be exposed to a
public right-of-way or adjacent
property.
• Sign projection shall not
interfere with the use and
enjoyment of adjacent properties,
create a public nuisance, or create
public safety hazards.
c. Holiday
Window Signs
For all window
areas
Fifty percent of
window area
N/A  Does not require permit
 For cultural holidays
 Limited display between forty-
five days prior and fifteen days
after holiday
761

d. Roof Sign 1 per building
over 20,000
square feet
Not exceed 3
square feet for
each linear foot
of building
frontage where
the sign is
located, or
two hundred
(200) square
feet in total,
whichever is
lesser.

The height of the sign can only be a
ratio of 2 feet of width to 1 foot of
height.
 The tenant area must be 20,000
square feet or more.
 The sign may contain the text
identifying the local area such as
the building, District, City,
Downtown or Street.
 The design of the sign must be
superior or equal to the
architecture of the building and
immediate area.

DIVISION 7. - TEMPORARY SIGNS

(Sections 30-748 to 30-750 to remain)

Sec. 30-751. Temporary sign standards for nonresidential zoning districts.

Temporary signs shall comply with the standards set forth in this division. Table No. 30-751.A identifies the sign type, number, location, area, and height allowed within nonresidential zoning districts, along with any applicable additional regulations.

The standards contained in Table No. 30-751.A are maximums, unless otherwise stated. The signs in Table No. 30-751.A are allowed in any combination unless otherwise noted in this division.

Table No. 30-751.A.

Nonresidential Zoning Districts
Sign Type Maximum Number Maximum Sign Area Maximum Sign Height Additional Regulations a. Banner sign 1 per business frontage 30 sf or 10 percent of business frontage on
N/A • For the purposes of
calculating allowed
762

which banner is placed,
whichever is greater
banner sign area, the
height of a business
frontage shall be eight
feet regardless of
existing conditions
• See subsection 30-
752(a)
b. Feather sign 1 per 25 linear feet of
street frontage up to 4
signs per street
frontage
12 sf 10 ft • See subsection 30-
752(b)
• Not permitted in the
Downtown Core
c. Yard sign 1 per business frontage 12 sf (lots < 1 acre) 6 ft (lots < 1 acre) • See subsection 30- 752(c)
• See subsection 30-
721(b)
• Not permitted in the
Downtown Core
32 sf (lots ≥ 1 acre) 8 ft (lots ≥ 1 acre)

(Section 30-752 to remain)
763

City of Fontana

Draft Planning Commission

Minutes

Idilio Sanchez, Chair
Ricardo Quintana, Vice Chair
Joe Armendarez, Secretary
Torrie Lozano, Commissioner
Dylan Keetle, Commissioner

Tuesday, July 1, 2025 6:00 P.M. Grover W. Taylor Council Chambers

…

PH-B Master Case No. 25-0019 and Municipal Code Amendment (MCA) No. 25- 0007: Fontana Municipal Code amendments to Chapter 30 (Zoning and Development Code) for amendments to multiple sections of the Fontana Municipal Code, Chapter 30 - Zoning and Development Code, to revise signage regulations within the Downtown Core, streamline the approval process for various sign types, and to prohibit feather and yard signs pursuant to the certified General Plan Environmental Impact Report (State Clearinghouse [SCH] No. 2016021099) and Public Resources Code Section 21083.3.

Chair Sanchez opened the Public Hearing.

No written correspondence was received.

Alejandro Rico, Associate Planner, presented the staff report.

The Commission and staff discussed signage regulations for downtown businesses, including whether secondary businesses (e.g., cigar vendors inside bars) can display their signage. Associate Planner Rico explained it must align with the primar y use of the business.
764
Planning Commission Minutes July 1, 2025

The discussion shifted to changes in the sign approval process. Staff explained that signage review would be guided by a downtown core design guidebook, emphasizing attractive, high -quality, and cohesive signage. The process would be managed by a designated planner, with ultimate sign -off from the Planning Director. However, if applicants disagree with a staff decision, they would have the right to appeal to the Planning Commission.

Commissioners raised concerns about the subjectivity of what is considered “attractive” or “creative” signage. They asked for clarification on who makes final decisions and requested more transparency. Staff emphasized use of visuals in the guidebook to help applicants understand expectations.

There were al so questions about restrictions on yard signs downtown, especially for political campaigns. Staff responded that political signs are generally exempt under a separate section of the code.

Commissioner Keetle asked who has the final authority on approving d owntown signage—whether it's the Planning Director (Director Nevins) or an individual planner.

Director Nevins responded that although final approval is technically h ers, most of the review and determinations will be handled by staff, specifically Planner Rico, who is assigned as the downtown planner.

Chair Sanchez acknowledged the answer and emphasized the importance of commissioners being involved in the process. He appreciated that there's an appeal process available if applicants disagree with staff dec isions and reiterated the need to maintain a consistent, attractive aesthetic in downtown—citing examples of well-designed signs in nearby cities like Rancho Cucamonga.

Commissioner Keetle initiated a discussion by proposing a motion to approve the item under consideration —related to signage approvals in the downtown area —with the condition that all creative sign designs and sign programs continue to be reviewed by the Planning Commission. He emphasized that since the Commission is a five -member voting body, it should retain decision -making authority to ensure public oversight and alignment with the community's vision for revitalizing downtown.

Secretary Armendarez offered a substitute motion. Rather than reverting all signage decisions to the Commission, h is motion supported the staff -led approval process as outlined, with the added stipulation that all applicants be explicitly informed about their right to appeal staff decisions to the Planning Commission. Secretary Armendarez explained that his intent was to streamline the development process while maintaining transparency and accountability. He expressed concern that requiring Commission review for every sign could slow progress and clarified that h is substitute motion was meant to ensure applicants were not left unaware of their options if dissatisfied with an outcome.
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Planning Commission Minutes July 1, 2025

After a brief procedural clarification, Vice Chair Quintana seconded Secretary’s Armendarez motion, leading to a broader discussion among the commissioners.

Commissioner Keetle reiterated that signs are subjective and argued that Commission review allows for a more democratic and community -driven evaluation, especially given the infrequent nature of such applications. He stressed the importance of elected and appointed officials—not just staff—steering the visual identity of the downtown area.

Secretary Armendarez countered that maintaining a consistent design vision is difficult if the composition of the Commission changes over time. He commented that allowing a rotating body to interpret aesthetics could cause inconsistency in applying the city’s long- term goals. Other commissioners voiced support for both sides, with some acknowledging that they had concerns about specific signs already installed downtown, which didn’t reflect the level of creativity envisioned during the general planning process.

Secretary Armendarez’s motion—to approve the process as proposed but require applicant notification of the appeal process —was the one actively under consideration, having received a second and moved into the discussion phase.

No individuals spoke in support or opposition of this item.

The Public Hearing was closed.

RECOMMENDATION:

Based on the information contained in this staff report staff recommends that the Planning Commission adopt Resolution No. PC 2025-023; and forward the recommendation to the City Council to:

1. Determine that the proposed amendments are consistent with the Fontana General Plan and certified General Plan Environmental Impact Report (EIR) (State Clearinghouse No. 2016021099) and so qualifies for an exemption from CEQA, specifically Public Resources Code 21083.3 and CEQA Guidelines Section 15183 and Section 7 of the Local 2019 Guidelines for implementing CEQA, as the proposed amendments will have no new or more severe significant environmental effects “peculiar to” the Ordinance than discussed in the certified EIR and will have no significant off-site and cumulative impacts not discussed in that EIR as long as all applicable mitigation measures in the certified EIR will be undertaken; and,

2. Approve a Resolution recommending that the City Council adopt an Ordinance for Municipal Code Amendment (MCA) No. 25-0007 and amend Chapter 30 of the Municipal Code.

ACTION: Motion was made by Secretary Armendarez and seconded by Vice Chair Quintana and passed by a vote of 4-1 to approve Public Hearing Item “B” and adopt Resolution No. PC 2025-023.

766
Planning Commission Minutes July 1, 2025

The motion carried by the following vote:

AYES: Chair Sanchez, Vice Chair Quintana, Secretary Armendarez and Commissioner Lozano NOES: Commissioner Keetle; ABSTAIN: None; ABSENT:

None

767
Notice of Determination 1 FORM “F”
Attachment No. 4

NOTICE OF DETERMINATION

TO:
☒:

Office of Land Use and Climate Innovation
State Clearinghouse
P. O. Box 3044, Room 113
Sacramento, CA 95812-3044
FROM: Public Agency/Lead Agency Name:

City of Fontana
Address:
8353 Sierra Ave, Fontana CA 92335

Contact: Alejandro Rico
Phone: (909) 350-6558
Email: [email protected]
TO:
☒
San Bernardino - County Clerk (Include County
name)
Address: 222 W Hospitality Lane 1st Floor, San
Bernardino, CA 92415

Lead Agency (if different from above)

Address:

Contact:

Phone:

SUBJECT: Filing of Notice of Determination in compliance with Section 21108 or 21152 of the Public Resources Code.

State Clearinghouse Number
(If submitted to SCH):
2016021099
Project Title: Master Case No. 25-0019 and Municipal Code Amendment No. 25-0007 Project Applicant (include address, telephone number and email address):

Alejandro Rico (Associate Planner), Planning Department, City of Fontana, 8353 Sierra Avenue, Fontana, CA 92335, (909) 350-6558, [email protected]
Specific Project Location – Identify street address and cross street or attach a map showing project site (preferably a USGS 15’ or 7 ½’ topographical map identified by quadrangle name):

City of Fontana: The boundaries are between Foothill Boulevard on the north, Randall Avenue on the south, Juniper Avenue on the east and Mango Avenue on the west.

General Project Location (City and/or County): City of Fontana, County: San Bernardino Project Description: Fontana Municipal Code amendments to Chapter 30 (Zoning and Development Code) to modify the sign code section to encourage attractive signage in the Downtown Core by allowing flexibility in design 768
Notice of Determination 2 FORM “F”
Attachment No. 4
requirements and streamlining the approval process for crea tive signs, sign programs, wall signs, directional signage, awning signs, canopy signs, inlay signs, graphic projecting signs, projecting signs, holiday window signs and roof signage, and prohibiting feather and yard signs Identify the person or entity undertaking the project, including any private applicant, any other person undertaking an activity that receives financial assistance from the Public Agency as part of the project, and any person receiving a lease, permit, license, certificate, or other entitlement of use from the Public Agency as part of the project.

This is to advise that the ( ☒ Lead Agency or ☐ Responsible Agency) has approved the above described project on June 3, 2025 and has made the following determinations regarding the above described project:

1. The project [ ☐ will ☒ will not] have a significant effect on the environment.

2. ☒ An Environmental Impact Report was prepared and certified for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency. Fontana General Plan and General Plan Environmental Impact Report (FEIR) (State Clearinghouse [SCH] No. 2016021099) was certified by City Council on November 13, 2018
☐ A Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency.
☐ A Mitigated Negative Declaration was prepared for this project pursuant to the provisions of CEQA and reflects the independent judgment of the Lead Agency.

3. ☐ Mitigation measures [ ☐ were ☒ were not ]made a condition of the approval of the project.

4. ☐ A Mitigation Monitoring or Reporting Plan [ ☐ was ☒ was not] adopted for this project.

5. ☐ A Statement of Overriding Considerations [ ☐ was ☒ was not] adopted for this project.

6. ☐ Findings [ ☒ were ☐ were not] made pursuant to the provisions of CEQA.

This is to certify that the Final EIR with comments and responses and record of project approval, or the Negative Declaration, is available to General Public at:

Custodian:

Location:

Date:

________________________________________
DiTanyon Johnson
Planning Manager

Clerk’s File Stamp:

Authority cited: Sections 21083, Public Resources Code.

Reference Section 21000-21174, Public Resources Code.
769

NOTICE PUBLIC HEARING

SI DESEA INFORMACION EN ESPAÑOL REFERENTE A ESTA NOTIFICACION O PROYECTO, FAVOR DE COMUNICARSE AL (909) 350-6728.

In compliance with Section 202 of the Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12132) and the federal rules and regulations adopted in implementation thereof, the Agenda will be made available in appropriate alternative formats to persons with a disability. Should you need special assistance to participate in this meeting, please contact the City Clerk’s Department by calling (909) 350 -7602. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this me eting.

A PUBLIC HEARING HAS BEEN SCHEDULED BEFORE THE CITY COUNCIL OF THE CITY OF FONTANA FOR THE FOLLOWING:

MASTER CASE NO. 25-0019: MUNICIPAL CODE AMENDMENT (MCA) NO. 25-007

Sign Code Amendments to Chapter 30, Article XII (Sign Regulations) of the Zoning and Development Code to encourage attractive signage in the Downtown Core by allowing flexibility in design requirements and streamlining the approval process for creative signs, sign programs, wall signs, directional signage, awning signs, canopy signs, inlay signs, graphic projecting signs, projecting signs, holiday window signs and roof signage, and prohibiting feather/yard signs.

Environmental
Determination:

Location of
Property:

Date of Hearing:

Place of Hearing:

Time of Hearing:

The project is consistent with the Fontana General Plan and certified General Plan Environmental Impact Report (EIR) (State Clearinghouse No. 2016021099) and qualifies for an exemption from California Environmental Quality Act ( CEQA) specifically Public Resources Code 20183.3, Section 7 of the Local 2019 Guidelines for Implementing CEQA , and CEQA Guidelines Section 15183 , as the proposed amendments will have no new or more severe significant environmental effect than discussed in the certified EIR and will have no signifi cant off-site and cumulative impacts not discussed in that EIR.

The Downtown Core area has six districts within it. The boundaries are between Foothill Boulevard on the north, Randall Avenue on the south, Juniper Avenue on the west and Mango Avenue on the east (Map of the Downtown Core area can be viewed at:
www.fontanaca.gov/2610/Public-Hearing-Notice.

July 22, 2025

City Hall Council Chambers
8353 Sierra Avenue
Fontana, CA 92335

2:00 PM

Should you have any questions concerning this project, please contact Alejandro Rico, Associate Planner, at (909) 350-6558 or email at [email protected].

Attachment No. 5
770

ANY INTERESTED PARTY MAY APPEAR AND PRESENT ANY INFORMATION WHICH MAY BE OF ASSISTANCE TO THE CITY COUNCIL . A COPY OF THE APPLICATION AND ENVIRONMENTAL DOCUMENTATION IS AVAILABLE FOR INSPECTION IN THE PLANNING DEPARTMENT, CITY HALL. PLEASE CONTACT THE PLANNER LISTED ABOVE.

IF YOU CHALLENGE IN COURT ANY ACTION TAKEN CONCERNING A PUBLIC HEARING ITEM, YOU MAY BE

LIMITED TO RAISING ONLY THOSE ISSUES YOU OR SOMEONE ELSE RAISED AT THE PUBLIC HEARING

DESCRIBED IN THIS NOTICE, OR IN WRITTEN CORRESPONDENCE TO THE CITY AT, OR PRIOR TO, THE PUBLIC HEARING.

Publish date: July 11, 2025 (¼ Page Size)
771
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0379 Agenda Date: 7/22/2025
Agenda #: E. Category: Public Hearing
FROM:

Administrative Services
SUBJECT:

Sika Corporation - Operating Covenant Agreement
RECOMMENDATION:

1. Adopt Resolution No. 2025-086, accepting the Economic Development Subsidy Report prepared pursuant to Government Code Section 53083.1 and approve the Operating Covenant Agreement and authorize the City Manager or his designee to execute the Agreement with Sika Corporation.

2. Direct City Staff to file a Notice of Exemption based upon the City Council’s finding that the impacts for this Agreement is not a project and subject to environmental review and that there is no possibility that the activity in question may have a significant effect on the environment.

COUNCIL GOALS:
· Promote economic development by concentrating on job creation. · Promote economic development by pursuing business attraction, retention, and expansion. · Promote economic development by being business friendly at all levels and striving to constantly improve the city's competitiveness.

DISCUSSION:

Sika Corporation, a manufacturer and retailer of adhesives and sealants for the construction and industrial industries primarily, has entered into a lease for a facility at 14090 Slover Ave, Fontana, CA 92335 for seven (7) years with an option to renew for two additional five (5) year terms, for a total of seventeen (17) years. Sika Corporation intends to package and distribute their products from this Fontana based facility.

Sika Corporation intends to employ approximately 40 full time employees at their new Fontana facility investing more than $30 Million over the term of their lease on facility improvements and employee wages and benefits.

In order to ensure Sika Corporation remains in business and maintains their operations in the City of Fontana, an Operating Covenant Agreement (OCA) has been proposed. To that end, Staff and representatives from Sika Corporation have negotiated an OCA with the following main deal points:

City of Fontana Printed on 7/15/2025Page 1 of 2
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772
File #: 25-0379 Agenda Date: 7/22/2025
Agenda #: E. Category: Public Hearing
· Sika Corporation intends to maintain operations at 14090 Slover Ave., in the City of Fontana for the duration of their lease, up to 17 years.
· Sika Corporation will be eligible to receive quarterly Operating Covenant payments based on the level of sales recorded as generated in the City of Fontana. · The Operating Covenant payment is contingent on Sika Corporation achieving and maintaining taxable sales at a minimum rate of $50 Million per year. Once the initial $50 Million in taxable sales is achieved, Sika Corporation will be eligible for retroactive Operating Covenant payments for the prior four (4) quarters. After this initial $50 Million in taxable sales is achieved Sika Corporation will be eligible for Operating Covenant payments quarterly as long as taxable sales is maintained at a $50 Million annual rate. · The Operating Covenant payment will be equal to 50% of the Bradley-Burns sales tax generated on sales made by Sika Corporation from within the City of Fontana.

Approval of the Operating Covenant Agreement will help ensure that the Sika Corporation will remain in business and maintain their operations in the City of Fontana for a period of up to seventeen (17) years.

FISCAL IMPACT:

At a minimum sales level of $50,000,000 annually the City will receive $500,000 in Bradley-Burns sales tax, 50% would be paid to Sika Corporation, making the City’s share $250,000 and Sika’s share $250,000. At a sales level of $125 Million annually the City and Sika would each receive $625,000 per year.

MOTION:

Adopt Staff’s recommendation.

City of Fontana Printed on 7/15/2025Page 2 of 2
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RESOLUTION NO. 2025-086

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FONTANA,

CALIFORNIA ACCEPTING THE ECONOMIC DEVELOPMENT

SUBSIDY REPORT PREPARED PURSUANT TO GOVERNMENT CODE
SECTION 53083 REGARDING AN OPERATING COVENANT

AGREEMENT BY AND BETWEEN THE CITY OF FONTANA AND SIKA
CORPORATION.

WHEREAS, the City of Fontana ("City") and Sika Corporation , a New Jersey Corporation (“Sika”) have negotiated an Operating Covenant Agreement ("Agreement") for the retention of a packaging and distribution facility within the City; and WHEREAS, pursuant to that Agreement, Sika is committed to continue operating a packaging and distribution facility in the City a period of up to seventeen (17) years; and WHEREAS, Sika has also covenanted to, among other things, designate the City as the point of sale for certain transactions; and
WHEREAS, the City has agreed to purchase those covenants in an amount equal to fifty percent (50%) of the one percent (1%) Bradley-Burns sales tax revenue provided Sika maintains a minimum of $50 Million in annual sales , subject to the limitations set forth in the Agreement. The agreement excludes all revenue from the Transaction and Use Tax approved by the passage of Measure T in 2024; and WHEREAS, based on information provided by City staff, and other such written and oral evidence, as presented to the City, the C ity finds and determines that the allocation of funds to Sika pursuant to the Agreement is reasonably related to a legitimate governmental purpose in that the retention of the packaging and distribution facility will provide numerous public benefits including:
 Generating substantial revenue for the City through additional Local Sales Tax Revenue which may be used by the City for the funding of necessary public services and facilities, including but not limited t o, public safety services and facilities, public improvements and recreational opportunities that otherwise may not be available to the community for many years; and  Sika is a highly successful manufacturer and retailer of sealant and adhesive products who will be committed to maintaining the facility in the City of Fontana which will ensure the retention and creation of jobs and provide opportunity for additional job growth throughout the term of this Agreement; and
 Entering into this Agreement and retaining the facility may attract additional businesses and investment in the community due to increased services and economic activity in the area; and
 Retaining this business within the City will create jobs, maintain economic diversity in the community and stimulate the economic recovery of the 774
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Inland Empire by generating new opportunities for economic growth within the region; and
 Retaining Sika’s operations within the City will generate substantial revenue for the City, allow for the retention of jobs, an d result in community and public improvements that might not otherwise be available to the community for many years; and
WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fontana, California as follows:

Section 1. The above recitals are true and correct and are a substantive part of this Resolution and findings of the City Council of the City of Fontana.

Section 2. Findings. The City Council additi onally finds and determines that (a) there are identifiable public purposes fulfilled by the Agreement, as set forth in the Recitals, that outweigh the benefit to private persons; and (b) the findings set forth in this Resolution are based upon substantial written and oral evidence presented to the City Council.

Section 3. CEQA. The City Council hereby finds that pursuant to the California Environmental Quality Act ("CEQA") (Pub. Res. Code, § 21000 et seq.) and the State CEQA Guidelines (Cal. Code Regs, tit. 14 § 15000 et seq.), approval of the Agreement and acceptance of th e Economic Development Subsidy Report is not a "project" for purposes of CEQA and therefore is not subject to CEQA review. The Agreement and acceptance of the Economic Development Subsidy Report is not a project pursuant to State CEQA Guidelines section 15378(b)(4), which states that government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant environmental impact are not subject to CEQA. Further, the Agreement and acceptance of the Economic Development Subsidy Report is not a project under State CEQA Guidelines section 15061(b)(3), which states that CEQA does not apply where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

In addition, the City Council will direct staff to file a categorical exemption with the County of San Bernardino for this location upon adoption of this Resolution.

Section 4 . Acceptance of Economic Development Subsidy Report. The City Council finds and determines that this Economic Development Subsidy Report is in compliance with applicable law and specifically Government Code Section 53083.

Section 5 . Severability. If any provision of this Resolution is held invalid, the remainder of this Resolution shall not be affected by such invalidity, and the provisions of this Resolution are severable.

Section 6 . Effective Date. This Resolution shall become effective immediately upon its adoption.

The City Clerk of the City of Fontana shall certify as to the adoption of this Resolution.
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APPROVED AND ADOPTED this 22nd day of July, 2025.

READ AND APPROVED AS TO LEGAL FORM:

______________________________
City Attorney

I, Germaine Key, City Clerk of the City of Fontana, and Ex-Officio Clerk of the City Council, do hereby certify that the foregoing resolution is the actual resolution duly and regularly adopted by the City Council at a regular meeting on th e 22nd day of July, 2025, by the following vote to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

______________________________
City Clerk of the City of Fontana

______________________________
Mayor of the City of Fontana

ATTEST:

______________________________
City Clerk

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EXHIBIT “A”

ECONOMIC DEVELOPMENT SUBSIDY REPORT
[Attached behind this cover page]
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ECONOMIC DEVELOPMENT SUBSIDY REPORT
Pursuant to Government Code Section 53083.1

FOR AN OPERATING COVENANT AGREEMENT

BY AND BETWEEN

CITY OF FONTANA
AND

SIKA CORPORATION

Pursuant to Government Code Section 53083.1, the City Council of the City of Fontana must hold a public hearing with adequate notice and, prior to that hearing, provide all required information regarding the proposed economic development subsidy in written form. This information must be made available to the public both physically and on the City ’s website. The economic development subsidy will be granted under an Operating Covenant Agreement (the “Agreement”) entered into between the City of Fontana and Sika Corporation.

Notice of the public hearing was published in the local newspaper, with the hearing scheduled for July 22 nd, 2025 , to comply with public transparency and participation requirements. The purpose of this report is to outline the necessary information regarding the Agreement between the City of Fontana and Sika Corporation in accordance with Government Code Section 53083.1.

This report will remain publicly accessible on the City ’s website until the subsidy period concludes, as further detailed below.

1. The name and address of all corporations, including members of a commonly controlled group or a combined reporting group, that are beneficiaries of the economic development subsidy:

The Agreement is with Sika Corporation. Sika Corporation serves as the beneficiary of the economic development subsidy provided by the City of Fontana.

Contact Information:

Sika Corporation
201 Polito Ave.

Lyndhurst, New Jersey 07071

2. The name and address of all warehouse and distribution centers that are beneficiaries of the economic development subsidy:

The primary facility will be located at:
14090 Slover Ave., Fontana, CA 92335

This facility serves as the operational hub for Sika Corporation packaging, distribution, and sales activities. Additional affiliate locations may be developed in accordance with the terms of the Agreement and subject to the approval of the Fontana City Council.

3. The start and end dates and schedule for the economic development subsidy:
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If the Agreemen t between the City of Fontana and Sika Corporation is approved by the City Council, the subsidy will commence on the Effective Date of the Agreement. The term of the subsidy will run concurrent with the lease agreement between Sika Corporation and the facility landlord, with a maximum duration of 17 years.

The first Covenant Payment will be made following the completion of the first Covenant Quarter, provided that Sika Corporation has met all covenants and obligations pursuant to the Agreement.

4. A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy.

The economic development subsidy for Sika Corporation consists of a revenue -sharing arrangement with the City of Fontana, as outlined in the terms of the agreement.

A. Job Creation Requirement:

A minimum of 40 full-time, permanent jobs must be created or transferred to the City of Fontana. Comprised of approximately 27 warehouse staff and 13 corporate staff.

B. Sales Tax Revenue Sharing:

For total sales generated under $50M , on an annual basis , there shall be no sales tax share to Sika Corporation.

For total sales generated above $50M annually, the sales tax share will be as follows:
50% to Sika Corporation
50% to the City of Fontana

Specific payment terms and conditions are detailed in Operating Covenant Agreement

C. Sales Tax Allocation:

Please note that all sales tax generated from Sika Corporation sales must be recorded to the City of Fontana. Any sales made outside of the city will not be included in the total sales generated for rebate purposes.

5. A statement of the public purposes for the economic development subsidy.

Sika Corporation, a manufacturer of construction adhesives and sealants, is relocating its operations to Fontana due to Sika’s need for additional operational space. Sika’s sales are growing throughout the country ne cessitating additional capacity . With this strategi c agreement, Sika Corporation will establish a state -of-the-art packaging and distribution facility in Fontana, providing a key operational base to better serve its commercial and municipal clients throughout the region.
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Under the terms of the agreement, Sika Corporation will lease a facility at 14090 Slover Ave., Fontana CA 92335. This facility will enable the company to scale operations, ensuring efficient production and delivery of its adhesive and sealant solutions, including products used in the const ruction industry, residential and home improvement industries, as well as industrial, manufacturing, automotive industries. Without this economic development agreement, Sika Corporation would likely have pursued alternative locations outside of Fontana—and possibly beyond California—due to high operating costs within the state.

The subsidy provides crucial support to ensure Sika Corporation establishes operations locally, creating long-term economic benefits for both the company and the community.

The partnership between the City of Fontana and Sika Corporation exemplifies a strategic alignment between public policy goals and private -sector growth. It promotes economic revitalization by creating new employment opportunities, generating public revenue, and stimulating additional business activity. The agreement demonstrates Fontana ’s commitment to sustainable economic development, positioning the city for future growth and innovation while reinforcing its reputation as a pro -business and environmentally conscious community.

Job Creation and Economic Revitalization
The new facility will generate significant employment opportunities, with 40 full-time positions created across warehouse operations, logistics , and administrative roles. This aligns with the City’s goals of job growth and economic recovery, especially in areas that experienced downturns during prior economic challenges. These jobs will provide competitive wages and comprehensive benefits, contri buting to both the financial stability and professional development of local residents. Additionally, the City anticipates that the project will attract indirect employment opportunities, further driving the local economy.

The establishment of Sika Corporation in Fontana positions the City as a hub for broadly used adhesive and sealant products used across numerous business sectors across the country. This agreement will foster a business -friendly environment that attracts further investments from co mpanies seeking access to Southern California ’s logistics networks and workforce. The presence of Sika Corporation is expected to spark ancillary economic activities, including partnerships with local suppliers, transportation services, and innovation hubs focused on construction and manufacturing industries.

Fiscal Impact
Sika Corporation is expected to generate substantial sales tax revenue, with projected sales ranging between $50 million and $125 million. As part of the economic development agreement, the City of Fontana will share 50% of the sales tax revenues from these operations. This revenue -sharing arrangement ensures that the City retains significant public funds to invest in infrastructure improvements, public services, and community programs.
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Through this collaboration, both Sika Corporation and Fontana stand to benefit from a long-term, mutually beneficial relationship, ensuring economic stability and sustainable progress for years to come.

6. The projected tax revenue to the local agency as a result of the economic development subsidy.

The economic development agreement between the City of Fontana and Sika Corporation is structured to generate significant sales tax revenue over its 1 7-year term. Based on projected sales of $50 million to $ 125 million annually, the following fiscal outcomes are expected:

Sales Tax Sharing Structure
For total sales of $50 million and above, the City and Sika Corporation will each receive 50% of the sales tax revenue generated.

Revenue Estimates (assuming a 1% local sales tax rate).

Assuming $50 million in annual taxable sales:
- Sales Tax Revenue: Approximately $500,000 per year
- City Share: $250,000 annually.

Assuming $125 million in annual taxable sales:
- Sales Tax Revenue: $1.25 million per year.
- City Share: $625,000 annually.

Cumulative Revenue Impact
Over the 17-year term, the total sales tax revenue to the City of Fontana is projected at approximately $ 10.6 million, assuming steady sales growth and reaching peak performance under the revenue -sharing tiers. Even with the subsidy agreement, this results in a positive net fiscal gain for the City, enabling investments in public services, infrastructure, and community development.

This agreement aligns with the City ’s economic development objectives, fostering sustainable growth through increased public revenue and long -term job creation while enhancing Fontana's appeal as a business-friendly community.

7. The estimated number of jobs created by the economic development subsidy, including wage scale, broken down by full-time, part-time, and temporary positions.

Sika Corporation will employ approximately 40 full-time employees at its new Fontana facility. The company will offer competitive wages, aligning compensation levels with industry benchmarks and comparable positions within the San Bernardino County region.

This approach ensures that Sika Corporation remains attractive to skilled labor and competitive within the local employment market.

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In addition to wages, Sika Corporation will provide a comprehensive benefi ts package, including health insurance and paid leave, reinforcing its commitment to employee well- being and retention. Over the duration of the agreement, the company anticipates investing more than $30 million in wages, underscoring its substantial contribution to the local economy and its dedication to creating high-quality jobs in the community.

8. The estimated number of workers employed through temporary age.

At this time, Sika Corporation has not identified any plans to hire temporary or seasonal employees. Should such roles become necessary in the future, these positions will not be counted toward the company ’s full-time workforce obligations unless they are officially converted to full -time status. This approach ensures that only permanent positions contribute toward the company ’s employment targets, reinforcing Sika Corporation commitment to creating sustainable, long-term job opportunities in the region.

9. Whether any benefit package is offered, including health benefits, fringe benefits, and defined benefit pensions.

Sika Corporation will provide a comprehensive benefits package to its full -time employees. This package will include health insurance, paid leave, and additional fringe benefits designed to promote employee well -being and job satisfacti on. However, the benefits package will reflect industry best practices, ensuring competitiveness within the San Bernardino County labor market. Sika Corporation ’s commitment to offering competitive benefits aligns with its broader strategy of attracting and retaining top talent, fostering a stable workforce, and supporting long-term professional growth. 782
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OPERATING COVENANT AGREEMENT

between

THE CITY OF FONTANA
a California municipal corporation and general law city,

and

Sika Corporation,
a New Jersey Corporation

[Dated as of July 1, 2025, for reference purposes only]

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RECITALS

WHEREAS, Sika Corporation ("Sika"), in connection with the incentives provided here, is leasing a facility of approximately 294,000 square feet in distribution space, to be occupied as a p ackaging and distribution facility ("Facility"), within the City of Fontana ("City"); and
WHEREAS, the incentives provided in this Agreement are intended to incentivize Sika to lease the new Facility of approximately 294,000 square feet for purposes of the Facility within the City and remain in the City for a period of a maximum of 10 years (120 months), comprised of an initial 5 -year term (60 months) and one (1) 5 -year extension (60 months) subject to the terms contained herein; and
WHEREAS, entering into this Agreement will generate substantial revenue for the City, create and/or maintain approximately 40 at will jobs and generate a minimum of $50 Million in taxable sales revenue annually over the first five (5) years of Facility operation that will revitalize an underserved area of the City, and result in community and public improvements that might not otherwise be available to the community for many years; and WHEREAS, Sika wishes to locate in the City because of the operational advantages including, but not limited to, a qualified workforce, cost advantages, access to customers, and capacity to staff a certain number of jobs in said City; and WHEREAS, the incentives herein are intended exclusively to reward and encourage Sika for job creation within the City of Fontana. The incentives are available to Sika for job creation regardless of where within the City the jobs are located (excluding jobs created at retail storefronts).

NOW, THEREFORE, in consideration of the mutual promises contained herein, and for such other good and valuable consideration, the receipt of which is hereby acknowledged, Sika and City agree as follows:

ARTICLE 1. EFFECTIVE DATE; PARTIES; DEFINITIONS

1.1 Effective Date of Covenant Agreement. This Sika Corporation and City Operating Covenant Agreement ("Covenant Agreement") is dated July 1, 2025, for reference purposes only. This Covenant Agreement will not become effective until the date ("Effective Date") on which all of the following are true:

1.1.1 This Covenant Agreement has been approved and executed by the appropriate authorities of Sika, as defined herein, and delivered to the City;

1.1.2 Following all legally required notices and hearings, this Covenant Agreement has been approved by the City Council of the City of Fontana;

1.1.3 This Covenant Agreement has been executed by the appropriate authorities of the City and delivered to Sika.
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If all of the foregoing conditions precedent have not been satisfied by December 1, 2025 (or another date mutually agreed upon by the Parties) , then this Covenant Agreement may not thereafter become effective and any prior signatures and approvals of the Parties will be deemed void and of no force or effect.

1.2 Parties to Covenant Agreement.

1.2.1 The City. The address of the City is 8353 Sierra Avenue, Fontana, CA 92335, Attention: Ray Ebert, Deputy City Manager ; telephone 909 -350-6739, [email protected]; with copies to Ruben Duran, City Attorney, 2855 E Guasti Rd, Fontana, CA, 91761, Telephone: (909) 989-8584.

The City represents and warrants to Sika that, to the best of City's actual current knowledge:
(a) The City is a public body, corporate and politic, exerc1smg governmental functions and powers and organized and existing under the laws of the State of California;
(b) The City has taken all actions required by law to approve the execution of this Covenant Agreement;
(c) The City's entry into this Covenant Agreement and/or the performance of the City's obligations under this Covenant Agreement does not violate any contract, agreement or other legal obligation of the City; (d) The City's entry into this Covenant Agreement and/or the performance of the City's obligations under this Covenant Agreement does not constitute a violation of any state or federal statute or judicial decision to which the City is subject;
(e) There are no pending lawsuits or other actions or proceedings which would prevent or impair the timely performance of the City's obligations under this Covenant Agreement;
(f) The City has the legal right, power and authority to enter into this Covenant Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of this Covenant Agreement has been duly authorized and no other action by the City is requisite to the valid and binding execution, delivery and performance of this Covenant Agreement, except as otherwise expressly set forth herein; and
(g) The individual executing this Covenant Agreement is authorized to execute this Covenant Agreement on behalf of the City.

The representations and warranties set forth above are material consideration to Sika and the City acknowledges that Sika is relying upon the representations set forth above in undertaking Sika's obligations set forth in this Covenant Agreement. 785
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As used in this Covenant Agreement, the term "City's actual current knowledge" shall mean, and shall be limited to, the actual current knowledge of the City Manager as of the Effective Date, without having undertaken any independent inquiry or investigation f or the purpose of making such representation or warranty and without any duty of inquiry or investigation.

All of the terms, covenants and conditions of this Covenant Agreement shall be binding on and shall inure to the benefit of the City and its nominees, successors and assigns.

1.2.2 Sika. The US address of Sika Corporation for purposes of this Covenant Agreement is 201 Polito Ave. Lyndhurst, New Jersey 07071;

Sika represents and warrants to the City that, to the best of its actual current knowledge:

(a) Sika is a duly formed New Jersey corporation, qualified and in good standing to do business under the laws of the State of California; (b) The individual(s) executing this Covenant Agreement is/are authorized to execute this Covenant Agreement on behalf of Sika;
(c) Sika has taken all actions required by law to approve the execution of this Covenant Agreement;
(d) Sika's entry into this Covenant Agreement and/or the performance of its obligations under this Covenant Agreement does not violate any contract, agreement or other legal obligation of Sika;
(e) Sika's entry into this Covenant Agreement and/or the performance of it s obligations under this Covenant Agreement does not constitute a violation of any state or federal statute or judicial decision to which Sika is subject; (f) There are no pending lawsuits or other actions or proceedings which would prevent or impair the timel y performance of Sika's obligations under this Covenant Agreement;
(g) Sika has the legal right, power and authority to enter into this Covenant Agreement and to consummate the transactions contemplated hereby, and the execution, delivery and performance of th is Covenant Agreement have been duly authorized and no other action by Sika is requisite to the valid and binding execution, delivery and performance of this Covenant Agreement, except as otherwise expressly set forth herein; and
(h) Sika and its managerial pe rsonnel possess sufficient experience and qualifications necessary to conduct Sika's Sales Activities (hereinafter defined) as required by this Covenant Agreement.
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(i) Sika covenants that nothing in this Agreement or the implementation thereof shall violate the provisions or intent of Government Code Section 53084.5.

The representations and warranties set forth herein are material consideration to the City and Sika acknowledges that the City is relying upon the representations set forth above in undertaking the City's obligations set forth above.

As used in this Covenant Agreement, the term "actual current knowledge of Sika" shall mean, and shall be limited to, the actual cu rrent knowledge of the Executive Vice President, Operations of Sika Corporation as of the Effective Date, without having undertaken any independent inquiry or investigation for the purpose of making such representation or warranty and without any duty of inquiry or investigation.

All of the terms, covenants and conditions of this Covenant Agreement shall be binding on and shall inure to the benefit of Sika and its permitted nominees, successors and assigns. Wherever the term " Sika" is used herein, such term shall include any permitted nominee, assignee or successor of Sika.

The qualifications and identity of Sika are of particular concern to the City, and it is because of such qualifications and identity that the City has entered into this Covenant Agreement with Sika. No voluntary or involuntary successor -in-interest of Sika shall acquire any rights or powers under this Covenant Agreement except as expressly set forth herein.

1.2.3 The City and Sika are sometimes individually referred to as "Party" and collectively as "Parties."

1.3 Definitions.

1.3.1 "Affiliate" means, as defined by the Internal Revenue Code (IRC) Section 1504, any corporation included in Sika Corporation affiliated group.

1.3.2 "CDTFA" means the California Department of Tax and Fee Administration.

1.3.3 "City" means the City of Fontana, a California municipal corporation, and any nominee, assignee of, or successor to, its rights, powers and responsibilities.

1.3.4 "Computation Quarter" means each calendar qua rter beginning on January 1, April 1, July 1, or October 1, as applicable, and ending on the succeeding March 31, June 30, September 30, or December 31, as applicable. The first Computation Quarter within the Eligibility Period shall commence up City Counc il approval and execution of this agreement, and is referred to herein as "Computation Quarter 1," with each succeeding Computation Quarter within the Eligibility Period being consecutively numbered, concluding with Computation Quarter 46 unless the lease for the Facility is extended, or any additional option to extend is approved by the Parties, in which instance the Computation Quarters will extend sequentially after Computation Quarter 46. In the event the lease of the Facility is terminated or expires after Computation Quarter 22 or before Computation Quarter 46, the final Computation Quarter shall be appropriately adjusted subject to the terms and obligations of 787
6 INTERNAL
this Agreement.

1.3.5 "Covenant Payment(s)" means those contingent payments to be made by the City to Sika pursuant to Section 3.2 of this Covenant Agreement for the purchase of the Covenants and Sika's timely and faithful performance thereunder.

1.3.6 "Covenant Term" means, a period of a maximum of 12 years (120 months), comprised of an initial 7-year term (84 months) and two (2) 5-year extensions (60 months each) commencing upon the first day of the first Computation Quarter (unless terminated sooner pursuant to specific provisions of this Covenant Agreement). Sika will have the option to extend this Agree ment past the Covenant Term in concert with the underlying lease of Facility.

1.3.7 "Covenants" means those five (5) covenants described in Section 3.1 herein.

1.3.8 "Eligibility Period" means the period commencing as of the first ( 1st) day of the calendar year and ending the last day of the calendar year, for the duration contemplated by the lease of the Facility as set forth in 1.3. 4, subject to extension pursuant to the terms of this Agreement.

1.3.9 "Facility" means that certain facility of approximately 294,000 square feet in distribution space, located at 14090 Slover Avenue , Fontana, CA 9233 5, to be leased within the City of Fontana, that Sika will lease for 7-years (84 months) with an option to renew two (2) additional 5-year (60 months) terms with capital investments being made to improve the facility. Facility, at Sika's option and upon prior notice to City, may also include other distribution type facilities leased or owned by Sika within the City from which Sika and/or affiliate product is sold including through Sika's and/or its affiliates' internet websites and sold directly to an end -user consumer so long as such affiliate sales are completed in compliance with Sections 1.3.12 and 4.27.

1.3.10 "Liquidated Damages" means, for purposes of Section 3.6, as follows:

If the breach occurs during Computation Quarters 1 through 20, an amount equal to fifty percent (50%) of the Covenant Payments paid to Sika during the Computation Quarter in which the uncured breach occurs.

1.3.11 "Sika" means and refers to Sika Corporation a New Jersey Corporation, and its successors and assigns, cumulatively.

1.3.12 "Sika's Sales Activities" means the commercially reasonable business practices and activities associated with the sale of products from the Facility directly to end - user consumers, whether at the Facility or over the internet that results in Sales Tax Revenues relating to personal property which is shipped or distributed from Facility, but excluding sales occurring within Sika's retail stores in other physical locations or any facilities o ther than Facility, and pursuant to the terms contained herein. "Sika's Sales Activities" also include any of the above-described activities at the Facility which are conducted by a parent, subsidiary or wholly or partially owned affiliate of Sika, provided that such parent, subsidiary or affiliate did not previously conduct such activities in the City.
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1.3.13 "Penalty Assessments" means and refers to penalties, assessments, collection costs and other costs, fees or charges resulting from late or underpaid payments of Sales Tax and which are levied, assessed or otherwise collected from Sika.

1.3.14 "Sales Tax" means and refers to all sales and use taxes levied under the authority of the Sales Tax Law attributable to the Facility in City and Sika's Sales Activities excluding that which is to be refunded to Sika because of an overpayment of such tax.

1.3.15 "Sales Tax Law" means and refers to: (a) C alifornia Revenue and Taxation Code Section 7200 et seq., and any successor law thereto; (b) any legislation allowing City or other public agency with jurisdiction in City to levy any form of local Sales Tax on the operations of Sika; and (c) regulations o f the CDTFA and other binding rulings and interpretations relating to (a) and (b) of this Section 1.3.14.

1.3.16 "Sales Tax Revenues" means the net Sales Tax actually received by the City from the CDTFA pursuant to the application of the Sales Tax Law (as such st atutes may hereafter be amended, substituted, replaced, re-numbered, moved or modified by any successor law) attributable to the Facility in City in a particular Computation Quarter. Sales Tax Revenues shall not include: (i) Penalty Assessments; (ii) any Sales Tax levied by, collected for or allocated to the State of California other than the Bradley B urns tax, the County of San Bernardino, or a district or any entity (including an allocation to a statewide or countywide pool); (iii) any administrative fee charged by the CDTFA; (iv) any Sales Tax received by the City which is thereafter subject to any sharing, rebate, offset or other charge imposed pursuant to any applicable provision of federal, state or local (except City's) law, rule or regulation; (v) any Sales Tax attributable to any transaction not consummated within the Eligibility Period; (vi) the Transactions and Use Tax approved by the passage of Measure T in 2024; or (vii) any Sales Tax (or other funds measured by Sales Tax) required by the State of California to be paid over to another public entity (including the State) or set aside and/or pledged to a specific use other than for deposit into or payment from the City's general fund.

ARTICLE 2. ADDITIONAL RECITALS

2.1 The previously stated Recitals are incorporated herein and made a part hereof as though fully set forth.

2.2 The City has determined that the long -term operation of the Facility will result in substantial benefits to the City, and its citizens including, without limitation, the creation of significant new numbers of employment opportunities, property tax revenues, sales tax revenues and other ancillary benefits. Accordingly, the City has also determined that its entry into this Covenant Agreement and its purchase of the Covenants serve a sig nificant public purpose, while providing only incidental benefits to a private party.

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ARTICLE 3. COVENANTS UPON SIKA ; COVENANT PAYMENTS; REMEDIES FOR BREACH.

3.1 Covenants Upon Sika.

3.1.1 Operating and Use Covenant. Sika covenants and agrees that for the Covenant Term Sika shall operate, or cause to be operated upon the Property, the Facility in City in a commercially reasonable business manner, consistent with all applicable provisions of federal, state and local laws and regulations including City’s approved permits for the Facility. (a) Sika will operate its business in a commercially reasonable and prudent manner, with the effect of generating a reasonable amount of Sales Tax Revenues. Sika's obligations pursuant to the immediately preceding sentence include, without limitation, the obligation to obtain all federal, state and local licenses and permits required for the operation of the business and to advertise, market and promote the business in a commercially reasonable fashion. For the term of this Operating Covenant, Sika may use the Property only for the purposes of the operation of the Facility, related business uses and conducting Sika's Sales Activities in accordance with this Covenant Agreement.

3.1.2 Covenant to Designate City as Point of Sale. Sika covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 3.1.1, Sika shall maintain such licenses and permits as may be required by any governmental agency to conduct Sika's Sales Activities related to the Facility and shall consummate at the Facility all taxable sales transactions resulting from Sika's Sales Activities at the Facility and identify the City as such in all reports to the CDTFA in accordance with the Bradley -Burns Uniform Local Sales and Use Tax Law ( Revenue and Taxation Code 7200, et seq.), as it may be amended or substituted. Sika shall designate City as the sole point of sale for all of Sika’s products sold, including but not limited to, through Sika's internet website, which are fulfilled from the Facility and sold directly from the Facility to an end-user customer within California. Sika shall maintain the appropriate master sales permits applicable to and required for the operation of the Facility.

Sika shall consummate all taxable sales transacti ons for Sika's Sales Activities at the Facility consistent with all applicable statutory and CDTFA regulatory requirements applicable to Sika's Sales Activities and the designation of the City as the "point of sale" for all Sika's taxable sales occurring as a result of Sika's Sales Activities at the Facility.

3.1.3 Sika's Additional Obligations Regarding Repairs and Alterations to Facility. Sika covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 3.1.1, Sika shall maintain, or cause to be maintained, the Facility in good condition, ordinary wear and tear excepted, and free from the accumulation of trash or other debris and agrees to promptly remove, or cause the removal of, all graffiti upon the Facility.

3.1.4 Covenant Against Solicitation and Acceptance of Economic Incentives During the Term of the Operating Use Covenant. Sika covenants and agrees that, for the term of the Operating and Use Covenant as described in Section 3.1.1, Sika will not directly or indirectly solicit or accept any "Financial Assistance" related to the Facility from any 790
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other public agency, if such Financial Assistance is given for the purpose of causing or would result in Sika's moving the operations from the Facility to outside of Fontana, California. For purposes of this Section 3.1.4 the term "Financial Assistance" means any direct or indirect payment, subsidy, rebate, or other similar or dissimilar monetary or non -monetary benefit, including, without implied limitation, payment of land su bsidies, relocation expenses, public financings, property or sales tax relief, rebates, exemptions or credits, relief from public improvement obligations, and payment for public improvements to or for the benefit of Sika.

Financial Assistance does not include any property tax challenges or reduction in taxes resulting from such challenges nor any rebates or incentives related to solar or other environmental incentives or adjustments.

3.1.5 Use of Property. Sika covenants and agrees that Sika will not use the Facility for any purpose other than those uses specified in the City's General Plan, the Specific Plan, zoning ordinances, and this Covenant Agreement as the same may be amended from time to time. Nothing in this Section 3.1.5 shall limit, expand, modify or o therwise affect any right of Sika to continue any legal nonconforming use upon the real property upon which the Facility sits following changes in the City's General Plan or zoning ordinances.

3.2 Covenant Payments.

3.2.1 Statement of Intent. The consideration to be paid to Sika by the City in exchange for the Covenants and Sika meeting total annual sales generated of $50 Million will be a fifty percent (50%) share of the city’s one percent (1%) of all such sales tax reported to the State of California as being fulfilled from Fontana, California. Obligations set forth in this Covenant Agreement, and subject to satisfaction of all conditions precedent thereto, shall consist of City's payment to Sika for each Computation Quarter during the Eligibility Period that the City receives Sales Tax Revenue ("Covenant Payment"), an amount equal to the sum of the Sales Tax Revenues attributable to annual taxable sales at the Facility received by the City. The City's obligations under this Section 3.2 are contingent on a Compu tation Quarter-to-Quarter basis and, for each Computation Quarter, City's obligations to make any payments hereunder are expressly contingent upon Sika having, for the entirety of such Computation Quarter, completely fulfilled its material obligations unde r this Covenant Agreement, including, without limitation, the Covenants. Should such condition precedent not be satisfied for each Computation Quarter, then City shall have no obligation under this Section 3.2 to make any Covenant Payments to Sika in such Computation Quarter. There shall be no sales tax revenue share unless Sika's total sales generated at least $50 Million on an annual basis. Sika has not guaranteed any minimum amount of sales and there shall be no penalty or breach of this Agreement for failure to meet any sales amounts from the Facility though it will affect Sika’s eligibility for the sales tax revenue share.

For the purposes of determining eligibility for Covenant Payments, cumulative ta xable sales by Sika shall be measured beginning on the Effective Date of this Agreement, based on sales reported to the California Department of Tax and Fee Administration (CDTFA) as fulfilled from a location within the City of Fontana. No Covenant Payment shall be owed or due unless and until Sika has achieved at least Fifty Million Dollars ($50,000,000) in cumulative taxable sales as reported to CDTFA. Once such sales threshold is met, as reason ably determined by the City, the City shall calculate Covenant Payments in accordance with Section 3.2.2, and shall include in its calculation on all qualifying sales occurring in the preceding four (4) Computation Quarters (or less in the event Sika meets the threshold prior to four (4) Computation Quarters from the Effective Date) in 791
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which the threshold is first met. So long as Sika has achieved or is on target to achieve the $50,000,000 cumulative taxable sales threshold , Sika shall be entitled to Coven ant Payments as described herein.

3.2.2 Computation Quarter Covenant Payments. Within forty -five (45) days following the end of each Computation Quarter, Sika shall submit to City that portion of Schedule C (information not relevant and limited to Fontana will be redacted before submission) of its quarterly reports to the CDTFA which sets forth the amount of sales taxes paid to the CDTFA during the Computation Quarter arising from Sika's Sales Activities conducted at the Facility. Within one hundred twenty (120) days following the end of each Computation Quarter, City shall pay to Sika any Computation Quarter Covenant Payment due for such Computation Quarter based upon quarterly state filings submitted to the CDTFA by Sika . Additionally, City will pay to Sika all Covenant Payments for previous Computation Quarters once the $50,000,000 cumulative taxable sales threshold is met to the extent those Covenant Payments were not previously paid to Sika. By way of example, if Sika does not meet the $50,000,000 cumulati ve taxable sales threshold by the end of Q4 of 2025 but does meet the $50,000,000 cumulative taxable sales threshold by the end of Q1 of 2026, the Covenant Payment to Sika for Q1 of 2026 shall include payment for Q1 of 2026, Q4 of 2025, and Q3 of 2025 . By further example, if Sika achieves the following sales, the Covenant Payments shall be calculated as follows:

Time Period Facility Taxable Sales Cumulative (for previous four quarters)
Q3 2025 $5,000,000 $5,000,000
Q4 2025 $20,000,000 $25,000,000
Q1 2026 $26,000,000 $51,000,000
In the above example, no Covenant Payments would be due until 120 days after the end of Q1 2026.

However, the Covenant Payments would calculated based upon 50% of the tax received by the City for the full $51,000,000.

3.2.3 No Carry Forward or Back. The determination of the Covenant Payment(s) shall be determined and calculated on a Computation Quarter to Computation Quarter basis. Except as provided in Section 3.2.4, no Sales Tax Revenue which is generated in a Computation Quarter other than the Computation Quarter for which the Covenant Payment is being determined shall be used or considered in the calculation of any Covenant Payment which may be due for that Computation Quarter.

3.2.4 CDTFA Determination of Improperly Allocated Local Sales Tax Revenues. If, at any time during or after the Eligibility Period of this Covenant Agreement, the CDTFA determines that all or any portion of the Sales Tax Revenues received by the City were improperly allocated and/or paid to the City, and if the CDTFA requires repayment of, offsets against future sales tax payments, or otherwise recaptures from the City those improperly 792
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allocated and/or paid Sales Tax Revenues, will be adjusted by the City in the following quarter unless Sika vacates the Fa cility in which case Sika shall, within sixty (60) calendar days after written demand from the City, repay all Covenant Payments (or applicable portions thereof) theretofore paid to Sika which are attributable to such repaid, offset or recaptured Sales Tax Revenues. Sika may instead provide to City information supporting Sika’s belief of any error on the part of CDTFA and Sika and City will thereafter work together in good faith. If Sika provides sufficient information to support the CDTFA error, the Parties shall work together to seek a correction from CDTFA. If Sika does not provide such information or does not dispute the CDTFA determination and thereafter fails to make such repayment within sixty (60) calendar days after the City's written demand, then Sika shall be in breach of this Covenant Agreement and such obligation shall accrue interest from the date of the City's original written demand at the then-maximum legal rate imposed by the California Code of Civil Procedure on prejudgment monetary obligations, compounded monthly, until paid. Additionally, the City may deduct any amount required to be repaid by Sika under this Section 3.2.4 from any future Covenant Payments otherwise pa yable to Sika under this Covenant Agreement. This Section

3.2.4 shall survive the expiration or termination of this Covenant Agreement.

3.2.5 Not a Pledge of Sales Tax. Sika acknowledges that the City is not making a pledge of Sales Tax Revenues, or any other pa rticular source of funds; the definition of Sales Tax Revenues, as used herein, is used merely as a measure of the amount payment due hereunder and as means of computing the City's payment in consideration for the Covenants. It is acknowledged by Sika that the City's obligation to make payments is specifically contingent upon receipt by the City of the Sales Tax Revenues derived from operation of the Facility.

3.3 Default.

3.3.1 Sika Default. City shall provide Sika with written notice of Sika's failure ("Sika Default") to strictly abide by any material provision of this Covenant Agreement, including, without limitation, the Covenants. Sika shall have thirty (30) days from the date of such notice to either cure such Sika Default, or, if such Sika Default cannot be reasonably cured during such thirty (30) day period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter.

3.3.2 City Default. Sika shall provide City with written notice of City's failure ("City Default") to strictly abide by any material provision of this Covenant Agreement. City shall have thirty (30) days from the date of such notice to either cure such City Default, or, if such City Default cannot be reasonably cured during such thirty (30) da y period, to commence to cure within said thirty (30) day period and diligently prosecute such cure to completion thereafter.

3.4 General Remedies for Default. Except as provided in Section 3.6, upon either a City or a Sika Default (as defined in Section 3.3), Sika or City (as applicable) shall have the right to seek all available legal and equitable remedies, including, without implied limitation, direct damages, unless otherwise expressly provided to the contrary herein. Under no circumstances will either Sika or City be liable for indirect, consequential, special or punitive damages other than as set forth in Section 3.6 below . Unless prohibited by law or otherwise provided by a specific term of this Covenant Agreement, t he rights and remedies of the City 793
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and Sika under this Covenant Agreement are nonexclusive and all remedies hereunder may be exercised individually or cumulatively, and the City may simultaneously pursue inconsistent and/or alternative remedies. Either Party may, upon the Default and failure to cure of the other Party and in addition to pursuing all remedies otherwise available to it, terminate this Covenant Agreement and all of its obligations hereunder without cost, expense or liability to itself.

3.5 The City's Rights to Terminate its Obligations under Section 3.2. The City's obligations under Section 3.2 shall automatically terminate without cost, expense, or liability to City, upon the occurrence of any one or more of the following: (i) uncured Sika Default; (ii) the end of the Eligibility Period; or (iii) upon the final determination by a court of competent jurisdiction that any one or more of the Covenants are void, voidable, invalid, or even unenforceable for any reason whatsoever, including, without limitation, legal infirmity.

3.6 Liquidated Damages.

3.6.1 Sika Default With Respect to Obligations Under Sections 3.1.1 through 3.1.5. The Parties acknowledge that the consideration to the City for its entry into this Covenant Agreement and the performance of its obligations hereunder include the City's receipt of Sales Tax Revenues, employment and other payroll taxes, property taxes, and other direct and indirect financial and non -financial benefits arising from the operation Sika's Sales Activities and the location o f the Facility in the City in accordance with Article 3 of this Covenant Agreement. Sika agrees that the City will suffer damages if Sika commits any Sika Default and fails to cure the same with respect to any of its obligations arising under Sections

3.1.1 through 3.1.5. The Parties agree that the exact determination of such damages would be impracticable and extremely difficult to quantify. Accordingly, the Parties have determined that Liquidated Damages (as determined pursuant to Section 1.3.9) represents a reasonable estimate of the damages which would be suffered by the City if Sika commits any Sika Default with respect to any of its obligations set forth in Sections 3.1.1 through 3.1.5. Accordingly, as its sole and exclusive remedy for an Sika Default with respect to any of its covenants and obligations set forth in Sections 3.1.1 through 3.1.5, the City shall be entitled to (1) terminate this Covenant Agreement and the entirety of its obligations hereunder, including any accrued and unpaid Covenant Payments, and (2) receive from Sika the applicable amount of Liquidated Damages only for that period of time during which there was an uncured Default as provided by Section

1.3.10. 3.6.2 ACKNOWLEDGEMENT OF REASONABLENESS OF
LIQUIDATED DAMAGES. UPON AN UNCURED SIKA DEFAULT WITH RESPECT TO ANY OF ITS OBLIGATIONS SET FORTH IN SECTIONS 3.1.1 THROUGH 3.1.5, FOLLOWING NOTICE AND OPPORTUNITY TO CURE PURSUANT TO SECTION 3.3.1,

THE CITY AND SIKA ACKNOWLEDGE AND AGREE THAT IT WOULD BE

EXTREMELY DIFFICULT AND IMPRACTICAL TO A SCERTAIN THE AMOUNT OF

DAMAGES THAT WOULD BE SUFFERED BY THE CITY WITH RESPECT TO SUCH DEFAULT. HAVING MADE DILIGENT BUT UNSUCCESSFUL ATTEMPTS TO ASCERTAIN THE ACTUAL DAMAGES THE CITY WOULD SUFFER; THE PARTIES

AGREE THAT THE LIQUIDATED DAMAGES AMOUNT AS DE TERMINED IN ACCORDANCE WITH SECTION 1.3. 10 REPRESENTS A REASONABLE ESTIMATION OF THOSE DAMAGES. THEREFORE, UPON A SIKA DEFAULT WITH RESPECT TO 794
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ANY OF ITS OBLIGATIONS SET FORTH IN SECTIONS 3.1.1 THROUGH 3.1.5, AS ITS

SOLE AND EXCLUSIVE REMEDY FOR SUCH DEFAU LT, THE CITY SHALL BE ENTITLED TO (1) RECEIPT OF THE LIQUIDATED DAMAGES AMOUNT CALCULATED IN ACCORDANCE WITH SUBSECTION 1.3. 10, WHICH SIKA SHALL PAY WITHIN SIXTY (60) DAYS FOLLOWING WRITTEN DEMAND FROM THE CITY, AND (2) TERMINATE THIS AGREEMENT AND THE ENTIRETY OF ITS OBLIGATIONS

HEREUNDER, INCLUDING A NY ACCRUED BUT YET UNPAID COVENANT PAYMENTS.

Initials of Authorized City Representative ____

Initials of Authorized Sika Representative ____

ARTICLE 4. GENERAL TERMS

4.1 Tax Consequences. Sika acknowledges that it may experience tax consequences as a result of its receipt of the payments provided for in this Covenant Agreement and it is Sika’s responsibility to determine the appropriate tax treatment of such payments as applicable to Sika. The City may also have tax responsibilities with respect to the payments under this Covenant Agreement and it is the City’s responsibility to determine the appropriate treatment as applicable to the City..

4.2 Rights Not Granted Under Covenant Agreement. This Covenant Agreement is not, and shall not be construed to be, a Development Agreement under Government Code Section 65864 et seq., or a disposition and development agreement under Health and Safety Code Section 33000 et seq. This Covenant Agreement is not, and shall not be construed to be, an approval or an agreement to issue permits or a granting of any right or entitlement by the City concerning the Facility, Sika's Sales Activities or any other project, development, or construction by Sika in the City. This Covenant Agreement does not, and shall not be construed to, exempt Sika from the application and/or exercise of the City's or City's power of eminent domain or its police power, including, but not limited to, the regulation of land uses and the taking of any actions necessary to protect the health, safety, and welfare of its citizenry.

4.3 Consent. Whenever consent or approval of any party is required under this Covenant Agreement, that party shall not unreasonably withhold, delay or condition such consent or approval unless otherwise allowed by a specific provision of this Covena nt Agreement.

4.4 Notices and Demands. All notices or other communications required or permitted between the City and Sika under this. Covenant Agreement shall be in writing, and may be (i) personally delivered, (ii) sent by United States registered or certifi ed mail, postage prepaid, return receipt requested, (iii) sent by telecopier, or (iv) sent by nationally recognized overnight courier service (e.g., Federal Express), addressed to the Parties at the addresses provided in Article 1, subject to the right of either party to designate a different address for itself by notice similarly given. Any notice so given by registered or certified United States mail shall be deemed to have been given on the second business day after the same is deposited 795
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in the United States mail. Any notice not so given by registered or certified mail, such as notices delivered by telecopier or courier service (e.g., Federal Express), shall be deemed given upon receipt of the same by the party to whom the notice is given.

4.5 Nonliability of Individuals. No board member, official, contractor, consultant, attorney or employee of the City or City shall be personally liable to Sika, any voluntary or involuntary successors or assignees, or any lender or other party holding an interest in the Property, in the event of any default or breach by the City, or for any amount which may become due to Sika or to its successors or assignees, or on any obligations arising under this Covenant Agreement. No officer, director, representative, consultant, attorney or employee of Sika shall be personally liable to City, any voluntary or involuntary successors or assignees, or any lender or other party holding an interest related to the City, in the event of any default or breach by Sika, or for any amount which m ay become due to the City or to its successors or assignees, or on any obligations arising under this Covenant Agreement.

4.6 Conflict of Interests. No board member, official, contractor, consultant, attorney or employee of the City or City shall have any personal interest, direct or indirect, in this Covenant Agreement nor shall any such board member, official or employee participate in any decision relating to this Covenant Agreement which affects his/her personal interests or the interests of any corporation, partnership or association in which he/she is directly or indirectly interested.

4.7 Pledge or Hypothecation of Covenant Payments. Sika may assign any Covenant Payment(s) due in accordance with the terms of this Covenant Agreement (but not any other right or obligation of this Covenant Agreement) upon thirty (30) days' prior written notice to City as collateral for any loan or financing obtained by Sika in connection with the Facility; provided that nothing in this Section 4.7 shall be deemed to limit the operation of Section 4.16. Without limiting the general applicability of the foregoing, Sika acknowledges that Sika's lender and any transferee of Sika's lender shall be subject to the transfer restrictions of Section 4.16.

4.8 Entire Agreement; Good Faith Ne gotiations. This Covenant Agreement contains all of the terms and conditions agreed upon by the Parties and supersedes any previous agreements between the Parties concerning the subject matter of this Covenant Agreement. No other understanding, oral or oth erwise, regarding the subject matter of this Covenant Agreement shall be deemed to exist or to bind any of the parties hereto. All prior written or oral offers, counteroffers, memoranda of understanding, proposals and the like are superseded by this Covenant Agreement.

The Parties acknowledge that this Covenant Agreement is the product of mutual arms- length negotiations and that each party has been, or has had the opportunity to have been, represented by legal counsel in the negotiation and drafting of thi s Covenant Agreement.

Accordingly, the rule of judicial construction which provides that ambiguities in a document are to be construed against the drafter of that document shall have no application to the interpretation or enforcement of this Covenant Agre ement. In any action or proceeding to interpret and/or enforce this Covenant Agreement, the trier of fact may refer to extrinsic evidence not in conflict with any specific provision of this Covenant Agreement to ascertain 796
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and give effect to the intent of the Parties hereto.

4.9 Time Deadlines Critical; Extensions and Delays; No Excuse Due to Economic Changes. Time is of the essence in the performance of the City's and Sika's obligations under this Covenant Agreement. In addition to specific provisions of this Covenant Agreement providing for extensions of time, times for performance hereunder shall be extended where delays or defaults are due to war; insurrection; any form of labor dispute; lockouts; riots:
floods: earthquakes; fires; acts of God or of third parties; third party litigation; acts of a public enemy; referenda; acts of governmental authorities (except that the failure of the City to act as required hereunder shall not excuse its performance); moratoria; epidemics; quarantine restrictions; and freight embargoes (collectively, "Enforced Delays") provided, however, that the Party claiming the extension notify the other Party of the nature of the matter causing the default; and, provided further, that the extension of time shall be only for the period of the Enforced Delays. However, deadlines for performance may not be extended as provided above due to any inability of Sika to obtain or maintain acceptable financing for the operation of the Facility.

ANYTHING IN T HIS COVENANT AGREEMENT TO THE CONTRARY

NOTWITHSTANDING, SIKA EXPRESSLY ASSUMES THE RISK OF

UNFORESEEABLE CHANGES IN ECONOMIC CIRCUMSTANCES AND/OR

MARKET DEMAND/CONDITIONS AND WAIVES, TO THE GREATEST LEGAL

EXTENT, ANY DEFENSE, CLAIM, OR CAUSE OF ACTION BASED IN WHOLE OR

IN PART ON ECONOMIC NECESSITY, IMPRACTICABILITY, FRUSTRATION OF PURPOSE, CHANGED ECONOMIC CIRCUMSTANCES OR SIMILAR THEORIES.

SIKA EXPRESSLY AGREES THAT ADVERSE CHANGES IN ECONOMIC

CONDITIONS, EITHER OF SIKA SPECIFICALLY OR THE ECONOMY

GENERALLY, OR CHANGES IN THE MARKET CONDI TIONS OR DEMANDS,

SHALL NOT OPERATE TO EXCUSE OR DELAY THE STRICT OBSERVANCE OF

EACH AND EVERY OF THE OBLIGATIONS, COVENANTS, CONDITIONS AND REQUIREMENTS OF T HIS COVENANT AGREEMENT. SIKA EXPRESSLY

ASSUMES THE RISK OF SUCH ADVERSE ECONOMIC OR MARKET CHANGES ,

WHETHER OR NOT FORESEEABLE AS OF SIKA'S EXECUTION OF T HIS COVENANT AGREEMENT.

SIKA'S INITIALS ____

4.10 Attorneys' Fees. In the event of the bringing of an arbitration, action or suit by a Party hereto against another Party hereunder by reason of any breach of any of the covenants or agreements or any intentional inaccuracies in any of the representations and warranties on the part of the other Party arising out of this Covenant Agreement or any other dispute between the Parties concerning this Covenant Agreement or the Property, then, in that event, the prevailing party in such action or dispute, whether by final judgment or arbitration award, shall be entitled to have and recover of and from the other Party all costs and expenses of suit or claim, including actual attorneys' fees. Any judgment, order or award entered in any final judgment or award shall contain a specific provision providing for the recovery of all costs and expenses of suit or claim, including actual attorneys' fees (collectively, the "Costs") incurred in enforcing, perfecting and executing such judgment or award. For the purposes of this Section 797
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4.10, "Costs" shall include, without implied limitation, attorneys' and experts' fees, costs and expenses incurred in the following: (i) post judgment motions and appeals, (ii) contempt proceedings, (iii) garnishment, levy and debtor and third-party examination, (iv) discovery; and (v) bankruptcy litigation. This Section 4.10 shall survive any termination of this Covenant Agreement.

4.11 Amendments to This Covenant Agreement. Any amendments to this Covenant Agreement must be in writing and signed by the appropriate authori ties of both the City and Sika. The City Manager is authorized on behalf of the City to approve and execute minor amendments to this Covenant Agreement, including, but not limited to, the granting of extensions of time to Sika, not to exceed ninety (90) days in the aggregate.

4.12 Jurisdiction and Venue. Any legal action or proceeding concerning this Covenant Agreement shall be filed and prosecuted in the appropriate California state court in the County of San Bernardino, California. Both Parties hereto irrevocably consents to the personal jurisdiction of that court. The City and Sika each hereby expressly waive the benefit of any provision of federal or state law or judicial decision providing for the filing, removal, or change of venue to any other court or jurisdiction, including, without implied limitation, federal district court, due to any diversity of citizenship between the City and Sika, due to the fact that the City is a party to such action or proceeding or due to the fact that a federal question or federal right is involved or alleged to be invol ved. Without limiting the generality of the foregoing, the City and Sika specifically waive any rights provided to it pursuant to California Code of Civil Procedure Section 394. Sika acknowledges that the provisions of this Section

4.12 are material consid eration to the City for its entry into this Covenant Agreement, in that the City will avoid the potential cost, expense and inconvenience of litigating in a distant forum.

4.13 Interpretation. The City and Sika acknowledge that this Covenant Agreement is the product of mutual arms-length negotiation and drafting and that both Parties have been represented by legal counsel in the negotiation and drafting of this Covenant Agreement.

Accordingly, the rule of construction which provides that ambiguities in a documen t shall be construed against the drafter of that document shall have no application to the interpretation and enforcement of this Covenant Agreement. In any action or proceeding to interpret or enforce this Covenant Agreement, the finder of fact may refer to any extrinsic evidence not in direct conflict with any specific provision of this Covenant Agreement to determine and give effect to the intention of the Parties.

4.14 Counterpart Originals; Integration. This Covenant Agreement may be executed in duplicate o riginals, each of which is deemed to be an original, but when taken together shall constitute but one and the same instrument. This Covenant Agreement and any exhibits represent the entire understanding of the Parties and supersedes all negotiations, letters of intent, memoranda of understanding or previous agreements between the parties with respect to all or any part of the subject matter hereof.

4.15 No Waiver. Failure to insist on any one occasion upon strict compliance with any of the terms, covenants or conditions hereof shall not be deemed a waiver of such term, covenant or condition, nor shall any waiver or relinquishment of any rights or powers hereunder at any one time or more times be deemed a waiver or relinquishment of such other right or 798
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power at any other time or times.

4.16 Successors and Assigns. The terms, covenants and conditions of this Covenant Agreement shall be binding upon and inure to the benefit of the Parties hereto and their successors and assigns. Except as provided in this Section 4.16, Sika shall neither transfer nor convey Sika's interest in the Facility without the express written consent of the City, which shall not be unreasonably withhe ld, conditioned or delayed. In determining whether to approve of such a sale, transfer, conveyance or assignment of Sika's interest in the Property, the City shall evaluate: (i) the financial ability of the proposed transferee to own and operate the Facili ty, or portion so transferred, and to meet Sika's obligations under this Covenant Agreement; (ii) the fitness and experience of the proposed transferee and its managerial personnel to own and operate the Facility or portion so transferred thereof; and (iii ) the ability of the proposed transferee to maintain a level of quality and service comparable to that maintained by Sika for the Facility. Upon the permitted sale, transfer or conveyance by Sika of its interest therein, such Sika shall thereupon be reliev ed of its obligations under this Covenant Agreement from and after the date of sale, transfer or conveyance except with respect to any defaults in the performance of its obligations hereunder or thereunder which occurred prior to such sale, transfer or con veyance, and the transferee shall thereafter be solely responsible for the performance of all of the duties and obligations of Sika under this Covenant Agreement.

4.17 No Third-Party Beneficiaries. The performance of the respective obligations of the City and Sika under this Covenant Agreement are not intended to benefit any party other than the City or Sika, except as expressly provided otherwise herein. No person or entity not a signatory to this Covenant Agreement shall have any rights or causes of action ag ainst any party to this Covenant Agreement as a result of that party's performance or non -performance under this Covenant Agreement, except as expressly provided otherwise herein.

4.18 No Effect on Eminent Domain Authority. Nothing in this Covenant Agreement shall be deemed to limit, modify, or abridge or affect in any manner whatsoever the City's or City's eminent domain powers with respect to the Facility, or any other property owned by the Facility.

4.19 Warranty Against Payment of Consideration for Covenant Agree ment.

Sika warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Covenant Agreement. Third parties, for the purposes of this Section 4.19, shall not include persons to whom fee s are paid for professional services if rendered by attorneys, financial consultants, accountants, engineers, architects and the like when such fees are considered necessary by Sika.

4.20 Severability. The City and Sika declare that the provisions of this Covenant Agreement are severable. If it is determined by a court of competent jurisdiction that any term, condition or provision hereof is void, voidable, or unenforceable for any reason whatsoever, then such term, condition or provision shall be severed from this Covenant Agreement and the remainder of the Covenant Agreement enforced in accordance with its terms.

4.21 Further Acts and Releases. The City and Sika each agree to take such additional acts and execute such other documents as may be reasonable and necessary in the 799
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performance of their obligations hereunder.

4.22 Estoppels. At the request of Sika or any holder of a mortgage or deed of trust secured by all or any portion of the Property, the City shall promptly execute and deliver to Sika or such holder a written statement of the City as to any of the following matters as to which Sika or such holder may inquire: (i) that no default or breach exists, or would exist with the passage of time, or giving of notice, or both, by Sika pursuant to this Covenant Agreement, if such be the case; (ii) the total amount of Covenant Payments made by the City to Sika pursuant to this Covenant Agreement prior to the date of such written statement; (iii) the amount of any Covenant Payments earned by or due and owing to Sika pursuant to this Covenant Agreement as of the date of such written statement; (iv) the Covenant Payments for a particular Computation Quarter; (v) if the City has determined that Sika is in default or breach hereunder, the nature of such default and the action or actions required to be taken by Sika to cure such default or breach; and (vi) any other matter affecting the rights or obligations of Sika hereunder as to which Sika or such holder may reasonably inquire. The form of any estoppel letter shall be prepared by Sika or such holder at its sole cost and expense and shall be reasonably acceptable in form and content to the City and Sika. The City may make any of the representations described above based on the actual current knowledge of the then-current City Manager.

4.23 Indemnity.

4.23.1 Sika shall defend (using counsel of City's reasonable choosing), indemnify and hold harmless the City, its elected officials, officers, employees and agents from and against any and all third party claims, losses, proceedings, damages, causes of action, liability, cost and expense (including reasonable attorney's fees) arising from Sika’s actions in connection with or related to this Agreement or the functions or operations of the Facility (other than to the extent arising as a result of the City's negligence or willful misconduct). The City shall fully cooperate in the defense of any such actions and upon written request of Sika shall provide to Sika such documents and records in possession of the City that are relevant to such actions and not otherwise protected by law. Notwithstanding the foregoing, should any third party bring any such action or proceeding Sika shall have the right to terminate this Agreement, and as of such date of termination, all unaccrued liabilities of the parties under this Agreement shall cease except for Sika's obligation of indemnity owned to the City as provided in this Section 4.23.1. For purposes of clarific ation, should Sika exercise its termination right as provided in this Section 4.23.1, the same shall not be considered a Default and the City shall have no claims against Sika for liquidated damages.

4.24 Public Benefits.

4.24.1 Community Participation. As additional consideration for the benefits conferred under this Agreement, Sika will use commercially reasonable efforts to participate in supporting community benefit events and activities consistent with Sika's practices and policies.

4.24.2 State of Californ ia Legislation Impact on Covenant Payment. Sika acknowledges that the California Legislature has in the past adopted certain legislation which diverted to the State of California a portion of the Sales Tax Revenues which were otherwise payable to the City. Sika acknowledges that it is possible that the legislature may enact similar 800
19 INTERNAL
legislation in the future which would cause a corresponding reduction of and/or delay in the payment of the Sales Tax Revenues and that such reduction will cause Sika a corresponding reduction and/or delay in the payment of the Covenant Payments due to Sika during such time as such legislation is in effect. Furthermore, Sika acknowledges that it is possible that the legislation described above, or some variant thereof, may be enacted and effective during one or more subsequent times during the Eligibility Period and may materially and negatively impact the amount of Sales Tax Revenues and, accordingly, Covenant Payments. The City does not make any representation, warranty or commitment concerning the future actions of the California legislature with respect to the allocation of Sales Tax Revenues to the City. Sika agrees that it is undertaking its obligations under this Covenant Agreement after having considered, and is expressly assuming the risk of, the possibility of the enactment of such legislation. (a) The foregoing paragraph notwithstanding, City acknowledges that the California legislature may provide for the payment to City of other revenues for the purpose of offsetting any losses in Sales Tax Revenues resulting from the enactment of legislation of the type described in the immediately preceding paragraph. City agrees that, should the California legislature provide for such offsetting revenues, then for purposes of this Covenant Agreement and the computation of any Covenant Payments which may become due to Sika hereunder, City will consider any such offsetting revenues which are (i) indexed to Sales Tax and offset the loss of Sales Tax Revenues to the City on a dollar for dollar basis, (ii) actually received by the City, and (iii) not subject to any restrictions on use beyond those which are otherwise generally applicable to sales tax revenues received by California municipalities, to be Sales Tax Revenues within the meaning of this Covenant Agreement.

4.24.3 Anti-Bribery. City and its representatives, including but not limited to its elected officials, officers and directors: (i) have complied and will comply with all applicable anti-bribery and anti -corruption laws and regul ations in connection with this Agreement; (ii) have not directly or indirectly offered, paid, promised, requested, or accepted a bribe, kickback, or other improper benefit in connection with this Agreement; and (iii) will not directly or indirectly offer, pay, promise, request, or accept a bribe, kickback, or other improper benefit in connection with this Agreement. If City or its representatives become aware of any violation of the foregoing provisions or any anti-bribery or anti-corruption laws or regulation in connection with this Agreement, City shall give notice to Sika. City has undertaken and will undertake reasonable measures to ensure compliance with the foregoing provisions by City and its representatives, including but not limited to its executive officers and directors. The above representations are an inducement to Sika to enter into this Agreement. In the event City breaches the representations in this clause or violates applicable law related thereto, Sika may terminate this Lease without penalty or prejudice to any of its rights under law.

4.24.4 Addition of Affiliates. At such time as an Affiliate of Sika desires to locate an e- commerce distribution facility in the City of Fontana, Sika shall request approval in writing from the City to have any sales tax generated by the Affiliate included in the Sales Tax Revenues attributable to Sika for calculation of the Covenant Payment. Said written request shall be submitted to the City Manager for review and consideration by the City Council, following any legally required noticing and public hearings. Said review shall be in the City's sole and unfettered discretion. As condition precedent to the City consideration of the request, Sika and 801
20 INTERNAL
the Affiliate shall make and attest to all representation and warranties required by this Agreement, including but not limited to that inclusion of the Affiliate in this Agreement or the implementation thereof will not violate Government Code Section 53084.5. Additionally, City shall only make a Covenant Payment to Sika. Sika shall be prohibited from sharing the Covenant Payment with Affiliate and Affiliate shall be prohibited from requesting the City enter into a separate Operating Covenant Agreement with Affiliate directly. City shall have no liability to Affiliate for the distribution of Covenant Payments.

[Signatures on the following pages]

802
21 INTERNAL

SIGNATURE PAGE TO THE SIKA CORPORATION OPERATING COVENANT

AGREEMENT

CITY OF FONTANA Sika Corporation,
a California Municipal Corporation a New Jersey Corporation

_______________________________ ________________________________ Matthew C. Ballantyne
City Manager Authorized Sika Representative

Sika Corporation,
a New Jersey Corporation

________________________________

Authorized Sika Representative

APPROVED AS TO FORM:

By: ____________________________
Ruben Duran
City Attorney
803
City of Fontana
Action Report
City Council Meeting
8353 Sierra Avenue
Fontana, CA 92335
File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
FROM:

Finance
SUBJECT:

Fiscal Year 2024-25 Fourth Quarter Budget Status Report RECOMMENDATION:

Approve the recommended Fiscal Year 2024-25 Fourth Quarter Budget adjustments and organizational changes.

COUNCIL GOALS:
· Operate in a businesslike manner by ensuring that the public debate is based on accurate information.
· Practice sound fiscal management by producing timely and accurate financial information. · Practice sound fiscal management by living within our means while investing in the future. · Practice sound fiscal management by fully funding liabilities and reserves. · Practice sound fiscal management by developing long-term funding and debt management plans.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by maintaining and improving the city's existing infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
· Invest in the City’s infrastructure (streets, sewers, parks, etc.) by utilizing Measure-I Funds wisely.

DISCUSSION:

The City’sbudget is an important policy document, serving as the annual financial plan that identifies the spending priorities for the organization. Quarterly budget status reports are developed and presented to the City Council to provide the most current information on the financial activities of the City upon which to base decisions. Additionally, quarterly reports assist City departments in communicating their financial operations throughout the fiscal year including any program changes and significant impacts to their annual budgets, as well as gauging the City’s budget plan as compared to actual revenue and expenditures. This report includes requested departmental budget adjustments and preliminary year-to-date actuals through Fourth Quarter of Fiscal Year 2024-25, covering the period through June 30, 2025.

The current citywide Fiscal Year 2024-25 budget is comprised of a total of 202 funds including the General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise City of Fontana Printed on 7/17/2025Page 1 of 6
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File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
General Fund, Other General Funds (10 funds), Special Revenue Funds (135 funds), Enterprise Funds (5 funds), Capital Project Funds (38 funds), a Debt Service Fund, an Internal Service Fund, and Other Agency Funds (11 funds). The current total citywide Fiscal Year 2024-25 budget (excluding other agency funds) includes total uses (expenditures and transfers out) for all City funds of $688.1 million and total sources (revenues and transfers in) of $571.7 million. The Recommended Budget includes an increase in total sources of $36.4 million for a total of $608.1 million and an increase in total uses of $29.3 million for a total of $717.4 million. 2024-25 Budget
All City Fund
Proposed
Current Revisions Recommended
Revenues 501,493,617$ 12,534,526$ 514,028,143$ Transfers In 70,198,853$ 23,840,298$ 94,039,151$ Total Sources 571,692,470$ 36,374,824$ 608,067,294$ Expenditures (617,873,270)$ (5,452,375)$ (623,325,645)$ Transfers Out (70,198,852)$ (23,840,298)$ (94,039,150)$ Total Uses (688,072,122)$ (29,292,673)$ (717,364,795)$ Results from Operations (116,379,652)$ 7,082,151$ (109,297,501)$

GENERAL FUND
The current Fiscal Year 2024-25 General Fund Operating Budget includes total uses of $183.8 million and total sources of $170.7 million. The Recommended Budget includes an increase in total sources of $10.3 million for a total of $181.0 million and an increase in total uses of $6.2 million for a total of $190.0 million. 2024-25 Budget
General Fund (Fund 101)
Proposed
Current Revisions Recommended
Revenues 157,677,841$ 10,322,200$ 168,000,041$ Transfers In 13,004,057$ -$ 13,004,057$ Total Sources 170,681,898$ 10,322,200$ 181,004,098$ Expenditures (143,912,200)$ (1,022,200)$ (144,934,400)$ Transfers Out (39,933,449)$ (5,150,000)$ (45,083,449)$ Total Uses (183,845,649)$ (6,172,200)$ (190,017,849)$ Results from Operations (13,163,751)$ 4,150,000$ (9,013,751)$ City of Fontana Printed on 7/17/2025Page 2 of 6
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File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
Notable Changes
· Revenue Adjustments - a net increase in revenues of $10.3 million primarily due to updated revenue TUT forecasts.
· One-time Requests - Increase appropriations in various operating accounts of $6.2 million to fund one-time expenditures. Notable requests include:
o Increase in Transfers Out of $5.2 million for forecasted Use Tax revenues to the infrastructure and equipment fund (Fund 604).
o Increase in one-time expenditures of $1.0 million to fund FY25-26 one-time departmental operating requests.

Fund Balance Analysis
The recommended 2024-25 ending fund balance of $55.8 million reflects an increase of $4.2 million.

Included in the fund balance are total operating reserves of $35.9 million (which reflects 25% of recurring annual expenditures).

The recommended ending fund balance reserves and designations reflect an increase in Unappropriated reserves.
2024-25 Budget
General Fund Balance
Proposed
Current Revisions Recommended
Reserved 512,764$ -$ 512,764$ Designated
PERS Rate Stability 11,651,142$ -$ 11,651,142$ Contingencies 35,888,470$ -$ 35,888,470$ Annual Shelter JPA 582,570$ -$ 582,570$ Operating Contingencies 3,000,000$ -$ 3,000,000$ Future Projects & Resv. -$ -$ -$ Unappropriated -$ 4,150,000$ 4,150,000$ Ending Fund Balance 51,634,946$ 4,150,000$ 55,784,946$

OTHER GENERAL FUNDS
Other General Funds includes a total of 10 funds which are funded by the General Fund for services that support the City’sgeneral operations. The most notable funds include City Technology, Facility Maintenance, Self-Insurance, Retiree Medical Benefits, and General Fund Operating Projects.

The current 2024-25 Other General Funds Operating Budget includes total uses of $45.5 million and total sources of $43.1 million. The Recommended Budget includes an increase in total sources of $10.0 million for a total of $53.1 million.
2024-25 Budget
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File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
Other General Funds
Proposed
Current Revisions Recommended
Revenues 16,575,227$ -$ 16,575,227$ Transfers In 26,494,422$ 10,000,000$ 36,494,422$ Total Sources 43,069,649$ 10,000,000$ 53,069,649$ Expenditures (39,714,862)$ -$ (39,714,862)$ Transfers Out (5,770,197)$ -$ (5,770,197)$ Total Uses (45,485,059)$ -$ (45,485,059)$ Results from Operations (2,415,410)$ 10,000,000$ 7,584,590$ Notable Changes
· Self-Insurance - Increase Transfers In by $10.0 million to fund reserves for workers compensation and risk liability.

OTHER CITY FUNDS
Other City Funds includes a total of 181 funds which Special Revenue Funds, Debt Service Funds, Capital Project Funds, Enterprise Funds, and an Internal Service Fund.

The current 2024-25 Other City Funds Operating Budget includes total uses of $458.7 million and total sources of $375.9 million. The Recommended Budget includes an increase in total sources of $16.1 million for a total of $374.0 million and an increase in total uses of $23.1 million for a total of $481.9 million.
2024-25 Budget
Other City Funds
Proposed
Current Revisions Recommended
Revenues 327,240,549$ 2,212,326$ 329,452,875$ Transfers In 30,700,374$ 13,840,298$ 44,540,672$ Total Sources 357,940,923$ 16,052,624$ 373,993,547$ Expenditures (434,246,208)$ (4,430,175)$ (438,676,383)$ Transfers Out (24,495,206)$ (18,690,298)$ (43,185,504)$ Total Uses (458,741,414)$ (23,120,473)$ (481,861,887)$ Results from Operations (100,800,491)$ (7,067,849)$ (107,868,340)$ City of Fontana Printed on 7/17/2025Page 4 of 6
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File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
Notable Changes
· Special Revenue Funds - decrease in uses of $542,901, an increase in sources of $2.2 million, resulting in an increase in fund balance of $2.8 million primarily due to:
o Measure I (Local) - decrease in appropriations of $379,681 for various capital improvement project close outs and defunding.
o Road Maintenance & Rehab - decrease in appropriations of $151,654 due to a project close out and an increase in revenues of $2.2 million due to receipts to date. · Capital Project Funds - increase in uses of $23.5 million and sources of $14.7 million primarily due to:
o Capital Reinvestment (Fund 601) - increase in uses of $1.7 million due to numerous requests for various projects most notably:
• Reversing FY24-25 Q3 loan transfer to Stage Red Fund #720 ($1.0 million) to accurately record the transaction as an advance
• Jurupa Ave. Landscape Median completion (-$149,417)
• Randall Ave Improvements completion (-$346,578)
• Southridge Pavement Rehab (Grid 53) completion (-$126,422) o Future Capital Projects (Fund 603) - increase in uses of $14.1 million due to the following:
• Transfer Out to Fund #106 for workers compensation and general liability reserves ($10.0 million)
• Transfer Out to Fund #630 to remove advance obligation ($4.1 million) o Capital Project - Use Tax (Fund 604) - increase in sources of $5.2 million due to Transfer In from General Fund #101
o Circulation Mitigation (Fund 630) - increase in uses of $2.9 million and an increase in sources of $7.1 million primarily due to:
• Transfers In from Fund #630 to remove advance obligations ($4.1 million) • Increase in Transfers In and appropriations from Funds #672, 676 for developer reimbursement charges.
o Parks Development (Fund 635) - increase in transfers in and appropriations of $1.4M from Funds #672, 676 for development reimbursement charges. o CFD Capital Funds - increase of uses of $6.43 million primarily due to Transfers out/contributions for developer reimbursement charges, cost of issuance charges, and bond defeasance charges.
· Enterprise Funds - increase in uses of $160,611 and decrease in sources of $839,389 primarily due to a Transfer In/appropriation from Funds #672, 676 for developer reimbursement charges and reversing the $1.0 million Stage Red loan from Fund #601.

FISCAL IMPACT:

The fiscal impact associated with this item is summarized below and details are provided in Fourth Quarter Budget Status Report.

Sources
Inc/(Dec)
Uses
(Inc)/Dec
Fund Bal Impact
Icr/(Dec)
General Fund 10,322,200$ (6,172,200)$ 4,150,000$ Other General Funds 10,000,000$ -$ 10,000,000$ Other City Funds 16,052,624$ (23,120,473)$ (7,067,849)$ Total 36,374,824$ (29,292,673)$ 7,082,151$
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File #: 25-0373 Agenda Date: 7/22/2025
Agenda #: A. Category: New Business
Sources
Inc/(Dec)
Uses
(Inc)/Dec
Fund Bal Impact
Icr/(Dec)
General Fund 10,322,200$ (6,172,200)$ 4,150,000$ Other General Funds 10,000,000$ -$ 10,000,000$ Other City Funds 16,052,624$ (23,120,473)$ (7,067,849)$ Total 36,374,824$ (29,292,673)$ 7,082,151$
The General Fund projected ending fund balance reflects an increase of $4.2 million to a total of $55.3 million due to the net impact of the recommended budget adjustments.

MOTION:

Approve staff recommendation.

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Fourth Quarter Budget Status Report
Fiscal Year 2024/2025
*
Compared to same period prior fiscal year
Quick Look Indicators Fourth Quarter* See Page
Revenues 7
Expenditures 8
Fund Balance 9

810
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Table of Contents
Report Objectives .................................................................................................................................................................. 3 Summary of Key Points ....................................................................................................................................................... 4 Significant Economic Trends .............................................................................................................................................. 5 Summary of Proposed General Fund Adjustments .................................................................................................... 6 General Fund Revenues ...................................................................................................................................................... 7 General Fund Expenditures ................................................................................................................................................ 8 Fund Balance Review ........................................................................................................................................................... 9 Organizational Changes .................................................................................................................................................... 10 Liability Claims ..................................................................................................................................................................... 11 American Rescue Plan Act Expenditure Plan ............................................................................................................. 12 Treasury Report ................................................................................................................................................................... 13 Conclusion ............................................................................................................................................................................ 23

Schedules:

General Fund – Fund Balance Reconciliation.......................................................................................... 24 Fund Balance – Other Funds ....................................................................................................................... 25 Recommended Adjustments – General Fund ........................................................................................ 31 Recommended Adjustments – Other Funds .......................................................................................... 32

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Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Report Objectives
The purpose of the Fourth Quarter Budget Status Report is to:
• Provide the City Council with an overview of all funds; • Comment on significant economic trends;
• Recommend budget changes to address known budget deficiencies which will materially impact fund balance;

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Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Summary of Key Points
General Fund:
• Net increase in General Fund inflows of $10,322,200:
o Increase to Transaction Use Tax of $10,300,000
o Increase to Miscellaneous Revenues of $22,200
• Net increase in General Fund outflows of $6,172,200:
o Offsetting Adjustments of $22,200
o New Requests (One-Time) of $6,150,000

Other Funds:
• This report increases appropriations in several capital CFD Funds by $5,613,525 to cover development reimbursement charges. • Defund several projects in the amount of $1.6 million as projects have been completed and all available balances returned to fund balance.

813
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Significant Economic Trends
Nationally:
• The GDP decreased at an annual rate of 0.5 percent according to the third estimate by the U.S. Bureau of Economic Analysis; primarily reflecting an increase in imports and decrease in government spending. Decreases in government spending were partly offset by increases in investment and consumer spending. Real GDP was revised up 0.2 percentage point from the previous estimate, reflecting downward revisions to exports partly offset by imports.
• The US unemployment rate has increased and remains unchanged at 4.2 percent. Total nonfarm payroll employment increased by 139,000 in May and employment continued to trend up in health care, leisure and hospitality, and social assistance. According to the Bureau of Labor Statistics, Federal government continues to lose jobs.

The State of California:
• California continues to thrive as the 4th largest economy in the world with a totaled GDP of about $4.1 trillion. The unemployment rate within the state is held at a stable 5.3% with an upward trend of nearly 6% throughout the year. Beacon/California Forecast projects an estimated 1.4% of overall economic growth in 2025 with health care standing as the only private sector still expanding and an increase of 17.7k of jobs led by health and hospitality in the month of May.

City of Fontana
• At the end of June 2025, 583 single family dwelling permits have been issued compared to 701 permits for the prior fiscal year. • Fourth Quarter 24/25 sales were 3% lower than the same quarter one year ago. This is primarily due to the State being behind on sales tax processing.
• The Local Agency Investment Fund (LAIF) is currently paying 4.27% (daily rate) on City investments as of June 30, 2025, down from 4.52% for the same time last year. The 2-year treasury benchmark rate as of June 30, 2025, is 3.72% down from 4.71% last year.

814
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Summary of Proposed General Fund Adjustments
The Fourth Quarter Budget Report recommends the following General Fund budget adjustments:

Revenues Expenditures
Increase to Transactional Use Tax 10,300,000
Increase to Miscellaneous Revenue 22,200
10,322,200
Development Services IEUA Water Connection Fee 22,200
22,200$
Finance FY25-26 One-Time request reserve 1,000,000
1,000,000$
10,322,200$ 1,022,200$
Transfers: To Fund #604 for estimated TUT revenues 5,150,000 Reserves: Unnapropriated 4,150,000
10,322,200$ 10,322,200$
Fund Balance
Impact
Adjust revenue estimates to reflect third quarter collections:

Offsetting Adjustments:

New requests (one-time):

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Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
General Fund Revenues
Revenues continue to be monitored on a monthly basis. Staff recommends a net increase in revenues of $10,322,200 as part of the Fourth Quarter Budget Status Report. See page 31 for details of the revenue adjustments.

NOTE: Property Tax in-lieu of VLF collections are lagging due to the State’s distribution which provides for lump-sum payments in January and May. Interest revenue is received starting in October and is followed by a year-end accrual for a full twelve months of interest. A large number of Business Licenses are renewable in December. A large share of Franchise revenues is received annually in the month of April.

Revenue Source Adopted Budget
Current Budget
Before
Adjustments
Received as of
6/30/2025
Percent of Current
Budget Received

Recommended
Fourth Quarter
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Received
Sales Tax 58,638,140$ 57,928, 710$ 44,791,638$ 77.32% -$ 57,928,710$ 77.32% Transaction Use Tax - 78,297 2,807,877 3586.19% 10,300,000 10,378,297 27.06% Property Tax 41,290,060 43,563,830 44,670,182 102.54% - 43,563,830 102.54% Interest and Rentals 3,636,180 4,669,895 3,800,321 81.38% - 4,669,895 81.38% Franchises 10,237,950 11,782,010 10,178,171 86.39% - 11,782,010 86.39% Business Related 10,066,170 10,914,289 11,259,714 103.16% - 10,914,289 103.16% Development Related 10,381,130 11,947,650 9,084,732 76.04% - 11,947,650 76.04% Recreation 4,176,200 4,176,200 4,591,594 109.95% - 4,176,200 109.95% Motor Vehicle in-Lieu 200,000 250,000 337,767 135.11% - 250,000 135.11% Miscellaneous Revenues 2,411,030 2,553,730 2,077,770 81.36% 22,200 2,575,930 80.66% Reimbursables 2,129,440 3,003,540 1,605,180 53.44% - 3,003,540 53.44% From Other Agencies 5,916,550 6,809,690 6,074,049 89.20% - 6,809,690 89.20% Total General Fund 149,082,850$ 157,677,841$ 141,278,995$ 89.60% 10,322,200$ 168,000,041$ 84.09%

816
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
General Fund Expenditures
General Fund expenditures for Fourth Quarter are on track and within budget. Staff recommends a net increase in appropriations of $1,022,000. See page 31 for details of the expenditure adjustments.

NOTE: The above amounts do not include projects.

Department Adopted Budget
Current Budget
Before
Adjustments
Spent as of
06/30/2025
Percent of Current
Budget Spent

Recommended
Fourth Quarter
Adjustments
Recommended
Budget After
Adjustments
Percent of
Recommended
Budget Spent
City Administration 4,745,090$ 4,436,464$ 3,653,708$ 82.36% - 4,436,464$ 82.36% Human Resources 1,405,380 1,995,565 1,412,206 70.77% - 1,995,565 70.77% Administrative Services 623,230 735,753 625,818 85.06% - 735,753 85.06% City Clerk 883,420 1,521,746 1,122,664 73.77% - 1,521,746 73.77% Community Services 15,517,660 15,351,267 13,834,424 90.12% - 15,351,267 90.12% Innovation & Technology 4,848,200 5,403,863 5,038,909 93.25% - 5,403,863 93.25% Finance 4,587,160 5,277,422 4,683,745 88.75% 1,000,000 6,277,422 74.61% Development Services 1,578,290 3,579,869 2,155,911 60.22% 22,200 3,602,069 59.85% Building and Safety 3,400,150 4,228,270 3,783,884 89.49% - 4,228,270 89.49% Planning 3,372,090 3,692,998 3,214,430 87.04% - 3,692,998 87.04% Public Works & Engineering 12,388,550 16,926,922 15,000,050 88.62% - 16,926,922 88.62% Police 78,327,180 80,762,061 76,778,790 95.07% - 80,762,061 95.07% Total General Fund $ 131,676,400 $ 143,912,200 $ 131,304,539 91.24% $ 1,022,200 $ 144,934,400 90.60%

817
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Fund Balance Review
The City Council has established an Undesignated General Fund Balance goal of 40% (currently funded at 25%) of adopted recurring annual appropriations.

The Fourth Quarter Report recommendations maintain this balance. The City’s Undesignated General Fund Balance represents the available resources to provide funding for future contingencies such as earthquakes, economic fluctuations, major infrastructure repairs and investment in capital for improved productivity and efficiencies.

The Fourth Quarter Budget Report recommends the following:
• $4,150,000 Increase to Unappropriated

Fund Balance Reserves After Adjustments
25% Contingency Reserve $35,888,470
Animal Shelter JPA Reserve $582,570
Operating Contingencies Reserve $3,000,000
PERS Rate Stability Reserve $11,651,142
Unappropriated $4,150,000
Total $55,272,182

818
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Organizational Changes
Quarterly Budget Reports are routinely used to recommend organizational and/or personnel changes within a fiscal year. Upon approval, the total recurring costs for these organizational changes will be added to the department’s target numbers. The changes have been reviewed by Human Resources and comply with City personnel rules.

There are no organizational changes recommended as part of the Fourth Quarter Budget Status Report.

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Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Liability Claims
The City Council has authorized the Director of Human Resources and the City Manager to settle liability claims within specified dollar amounts as follows:

City Manager with the concurrence of the City Attorney $25,000 Director of Human Resources/Risk Management with concurrence of the City Attorney $10,000

The City Council has directed staff to report claim settlements as part of each quarterly budget report. There were no claims settled during the Fourth Quarter of Fiscal Year 2024/2025.

820
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
American Rescue Plan Act (ARPA) Expenditure Plan

Approved Projects by Federal Use Category Amount Expended Available Public Health & Economic Response 22,633,152 22,246,066 387,086 Fontana Forward Grant Program 190,786 190,786 - Homelessness Prevention Resources and Care Center 6,442,229 6,302,687 139,542 Leveraged Project: Support Government Employment 9,842,763 9,842,763 - Metrolink Station Security Cameras 66,411 66,411 - Park Improvements 3,241,828 2,994,284 247,544 Vaccine Bonus 526,986 526,986 - Ventilation Upgrade for City Facilities 2,322,150 2,322,150 - Revenue Loss 10,000,000 9,999,606 394
Parking Structure 10,000,000 9,999,606 394 Uniform Administrative Requirement, Cost Principles, and Audit Requirements for Federal Awards (2 CFR Part 200)
51,433 51,433 -
Administrative Costs 51,433 51,433 - Water, Sewer, and Broadband Infrastructure 16,531,692 10,200,426 6,331,266 Cypress Storm Drain Project 7,340,000 2,426,990 4,913,010 Data Security & Threat Detection 157,927 157,927 - Endpoint Detection & Response Solution 154,806 154,806 - Fiber to City facilities 1,773,968 776,794 997,174 Network Detection & Response Solution - - - Leveraged Project: Accela 3,406,636 3,406,636 - Leveraged Project: Fontana 311 2,398,355 1,995,165 403,190 Septic to Sewer 500,000 482,197 17,803 Sewer and Storm Drain Infrastructure Masterplan 375,130 375,130 - Update Master Infrastructure Plans 424,870 424,781 89 Premium Pay 1,040,837 1,040,837 -
Part-Time Employee Retention 152,936 152,936 - Public Safety Premium Pay 887,901 887,901 - Total 50,257,114 43,538,367 6,718,747

CITY OF FONTANA

AMERICAN RESCUE PLAN ACT (ARPA) EXPENDITURE PLAN
ESTIMATED AS OF June 30, 2025

821
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report

822
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report – continued

823
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report – continued

824
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

825
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

826
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

827
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

828
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

829
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

830
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Treasury Report - continued

831
Fourth Quarter Budget Status Report – 2024/2025 City of Fontana July 22, 2025
Conclusion
The City Council has provided fiscal policy direction that has laid the foundation for the 2024/2025 Operating Budget's conservative approach to revenues and expenditures. The recommended budget changes included in the Fourth Quarter Budget Report continue to adhere to City Council Policy.

As stated by the City Council’s Mission Statement below, the City of Fontana embraces every opportunity to enrich the lives of those who reside in this community, and this is possible due to its committed elected leadership and the talents and ingenuity of the individuals in this community and organization.

The key is through a well-planned, long-term fiscal plan, based upon economic development that will continue to generate high paying long-term employment opportunities, bring in new and stable sales tax revenue sources, and maintaining intergovernmental relations. Though there are still great challenges ahead, the City is firmly committed to meeting each and every challenge that comes our way. “We seek and embrace every opportunity to enrich the lives of those who live, work, play and invest in the City of Fontan a.” Mission Statement Adopted April 26, 2022

832
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
2020/21 2021/22 2022/23 2023/24
Audited Audited Audited Audited Adopted Adjusted Proposed Proposed Actuals Actuals Actuals Actuals Budget Budget Adjustments Budget 128,044,517$ 135,371,657$ 146,743,017$ 151,466,541$ 149,082,850$ 157,677,841$ 10,322,200$ 168,000,041$ 100,324,532 111,341,793 118,017,538 128,062,185 131,676,400 143,912,200 1,022,200 144,934,400 27,719,985 24,029,864 28,725,479 23,404,356 17,406,450 13,765,641 9,300,000 23,065,641 Other sources & uses:
10,455,858 12,073,139 11,585,264 11,566,054 12,422,520 13,004,057 0 13,004,057 (27,553,964) (26,313,909) (26,336,232) (43,805,438) (28,333,200) (39,933,449) (5,150,000) (45,083,449) (17,098,107) (14,240,770) (14,750,968) (32,239,384) (15,910,680) (26,929,392) (5,150,000) (32,079,392) 10,621,878 9,789,094 13,974,511 (8,835,028) 1,495,770 (13,163,751) 4,150,000 (9,013,751) 38,692,079 47,728,351 57,517,445 72,639,194 61,055,857 64,798,697 (0) 64,798,697 Fund Balance Adjustment 1,147,238 994,531
41,009
49,354,966$ 57,517,445$ 72,639,194$ 64,798,697$ 62,551,627$ 51,634,946$ 4,150,000$ 55,784,946$ 253,532$ 375,878$ 407,053$ 512,764$ 375,878$ 512,764$ 512,764$ 2,500,000 0 0 0 0 0 0 0
2,753,532 375,878 407,053 512,764 375,878 512,764 0 512,764 8,514,643 9,469,586 0 0 0 0 0
0 0 0 0 2,357,937 0 0
5,869,393 10,886,393 10,694,317 12,204,822 10,886,393 11,651,142 11,651,142 Annual Shelter JPA 0 0 0 800,000 0 582,570 582,570
Operating Contingencies 0 0 0 3,000,000 0 3,000,000 3,000,000 Future projects and reserves 0 0 0 750,000 0 0 0
16,333,398 20,280,588 38,595,914 14,443,275 15,385,254 0 4,150,000 4,150,000 33,470,966$ 41,012,445$ 49,697,284$ 31,710,861$ 29,005,462$ 15,746,476$ 4,150,000$ 19,896,476$ 15,884,000$ 16,505,000$ 22,941,910$ 33,087,836$ 33,546,165$ 35,888,470$ 35,888,470$ Operating transfers in
Operating transfers out
General Fund - Fund Balance Reconciliation
Revenues
Expenditures
Revenues over (under) expenditures
(Five-Year Summary)
2024/2025
Designated
Unappropriated
Total available for contingencies
Economic Uncertainty
CALPERS UAL Forecased Increases
PERS Rate Stability
Jr. Lien Bonds
Total reserved
Inventories
Reserved
Fund balance, end of year

FUND BALANCE
Total other sources & uses
Revenues & other sources over (under) expenditures and
other uses
Fund balance, beginning of year
GASB 31 Adjustment

833
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other General Funds:
102 City Technology 3,508,359$ -$ 7,315,290$ (10,678,904)$ -$ 144,745$ 144,745$ 103 Facility Maintenance 11,177 0 9,823,832 (9,777,120) 0 57,889 57,889 104 Office of Emergency Services 1,291,877 62,603 0 (219,877) 0 1,134,603 - 1,134,603 105 KFON 1,832,888 250,000 0 (250,000) 0 1,832,888 1,832,888 106 Self Insurance 3,872,719 10,038,741 4,000,000 (11,720,721) 0 6,190,739 10,000,000 16,190,739 107 Retirees Medical Benefits 2,395,853 260,000 2,600,000 (2,863,380) 0 2,392,473 2,392,473 108 Supplemental Retirement 32,517 0 840,620 (840,620) 0 32,517 32,517 110 General Fund Operating Projects 1,292,256 3,900 1,884,680 (3,014,396) (98,818) 67,622 67,622 115 Lease-Fire 15,898 5,655,483 0 0 (5,671,379) 2 2
125 Storm Water Compliance 578,674 304,500 30,000 (349,844) 0 563,330 563,330 Total Other General Funds 14,832,218$ 16,575,227$ 26,494,422$ (39,714,862)$ (5,770,197)$ 12,416,808$ 10,000,000$ 22,416,808$ Special Revenue Funds:
201 Muni Svcs Fiscal Impact Fee 24,640,404$ 1,250,000$ -$ -$ (1,290,590)$ 24,599,814$ -$ 24,599,814$ 221 Federal Seizure Treasury 165,661 0 0 ( 75,000) 0 90,661 90,661 222 Crime Prev Asset Seizure 45,734 10,000 0 (33,300) 0 22,434 22,434 223 Federal Asset Seizure 12,011,232 3,
050,000 0 (6,574,517) 0 8,486,715 8,486,715
224 State Asset Seizure 580,422 78,000 0 (71,626) 0 586,796 586,796 225 PD Traffic Safety 2,927,454 400,000 0 (343,251) 0 2,984,203 2,984,203 226 Opioid Settlement 415,697 630,337 0 (898,088) 0 147,946 147,946 241 Air Quality Mgmt District 985,492 304,000 0 (628,340) (12,090) 649,062 22,081 671,143 243 Traffic Safety 79,510 45,000 0 (45,020) 0 79,490 79,490 244 Prop 1B 141,441 0 0 0 0 141,441 141,441
245 Measure I Reimb 2010-2040 (10,579,721) 24,415,625 0 (13,761,705) 0 74,199 74,199 246 Measure I Local 2010-2040 17,289,968 5,618,200 0 (21,291,533) (450,220) 1,166,415 379,681 1,546,096 281 Gas Tax (State) 2,179,297 6,042,980 0 (7,252,522) (385,440) 584,315 (1,878) 582,437 282 Solid Waste Mitigation 6,633,933 3,000,000 0 (5,403,326) (320,230) 3,910,377 5,098 3,915,475 283 Road Maintenance & Rehab 6,622,575 5,129,440 0 (11,298,628) 0 453,387 2,341,645 2,795,032 301 Grants (7,794,034) 77,625,695 1, 733 (69,781,359) (58,490) (6,455) 6,455 0 302 ARPA 2021 19,827,902 0 0 (19,827,902) 0 0 0
303 TDA/Article 3 (76,733) 634,068 0 (
557,335) 0 0 0
304 ARPA - County (707,359) 2,001,676 0 (1,294,317) 0 0 0 322 State COPS AB 3229 1,107,155 645,000 0 (497,874) 0 1,254,281 1,254,281 Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025

834
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025
Special Revenue Funds:
362 CDBG (51,048)$ 4,850,992$ -$ (4,326,360)$ (35,043)$ 438,541$ -$ 438,541$ 363 Home Program 81,284 6,930,415 0 (6,725,481) 0 286,218 - 286,218 365 Down Pymt Assistance Prgm 11,721 0 0 0 0 11,721 11,721 385 After School Program (162,279) 4,407,400 0 (3,872,821) (372,300) 0 0 386 ASES ELO-P Grant (989,465) 14,914,350 0 (13,552,585) (372,300) 0 0 395 LMD #1 City Wide 1,222,910 914,510 0 (1,864,081) (244,440) 28,899 28,899 396 LMD #2 Village of Heritage 924,168 2,584,930 2,174,140 (5,114,816) (499,720) 68,702 68,702 397 LMD #3 Empire Center 264,050 62,170 0 (76,271) (12,830) 237,119 237,119 398 LMD #3 Hunter's Ridge 2,267,714 797,960 107,140 (1,340,789) (161,950) 1,670,075 1,670,075 399 LLMD #3 Hunter's Ridge 74,619 35,140 0 (34,620) (7,000) 68,139 68,139 401 CFD #1 Southridge Village 4,065,447 5,803,020 0 (6,458,559) (2,646,979) 762,929 762,929 403 CFD #6-3A Bellgrove II 461,513 229,460 0 (188,282) (55,650) 447,041 447,041 404 CFD #6-2 N Morningside 336,314 91,180 0 (101,895) (15,280) 310,319 310,319 405 CFD #6-1 Stratham 550,378 184,300 0 (146,600) (124,270) 463,808 463,808 406 C
FD #6 The Landings 3,012,235 413,330 105,430 (777,509) ( 88,650) 2,664,836 2,664,836
407 CFD #7 Country Club Estates 295,317 112,150 13,100 (182,122) (33,310) 205,135 205,135 408 CFD #8 Presley 627,561 72,590 106,600 (520,492) (57,150) 229,109 229,109 409 CFD #9M Morningside 69,625 231,701 0 (177,314) (123,490) 522 522 410 CFD #10M Jurupa Industrial 268,576 37,610 0 (77,198) (9,390) 219,598 219,598 412 CFD #12 Sierra Lakes 1,505,617 912,800 218,480 (1,580,839) (199,480) 856,578 856,578 413 CFD #13M Summit Heights 518,756 625,300 105,980 (1,006,234) (125,690) 118,112 118,112 414 CFD #14M Sycamore Hills 164,891 486,150 0 (343,670) (234,320) 73,051 73,051 415 CFD #15M Silver Ridge 207,649 293,510 0 (167,533) (220,880) 112,746 112,746 416 CFD #16M Ventana Pointe 90,573 43,030 0 (43,977) (36,730) 52,896 52,896 418 CFD #18M Badiola Homes 46,227 6,810 0 (2,950) (7,080) 43,007 43,007 420 CFD #20M 82,516 33,600 0 (36,410) (23,400) 56,306 56,306 421 CFD #21M 238,102 39,660 0 (25,770) (25,630) 226,362 226,362 423 CFD #23M 31,902 7,460 0 (2,950) (13,410) 23,002 23,002 424 CFD#24M 186,879 44,570 0 (20,650) (31,180) 179,619 179, 619 425 CFD #25M 288,584 81,480 0 (
57,660) (58,080) 254,324 254,324
427 CFD #27M (21,031) 122,420 0 (70,330) (30,690) 369 369 428 CFD #28M 493,128 144,540 0 (103,680) (112,090) 421,898 421,898 429 CFD #29M 13,259 27,833 10,000 (37,110) (13,400) 582 582

835
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025
Special Revenue Funds:
430 CFD #30M 756,051$ 234,170$ -$ (139,808)$ (156,360)$ 694,053$ -$ 694,053$ 431 CFD #31 Citrus Heights North 777,604 480,630 0 (289,923) (187,300) 781,011 781,011 432 CFD #32M 103,430 17,800 0 (3,490) (17,400) 100,340 100,340 433 CFD #33M Empire Lighting 198,310 41,220 0 (44,291) (6,140) 189,099 189,099 434 CFD #34 Empire Detention Basin 271,865 21,140 0 (14,154) (4,580) 274,271 274,271 435 CFD #35M 1,178,538 533,930 0 (953,490) (166,170) 592,808 592,808 436 CFD #36M 40,803 22,010 0 (28,790) (18,190) 15,833 15,833 437 CFD #37 Montelago 214,362 87,000 0 (200,253) (45,010) 56,099 56,099 438 CFD #38M 866,175 176,810 0 (80,489) (114,980) 847,516 847,516 439 CFD #39M 40,573 21,360 0 (33,120) (15,310) 13,503 13,503 440 CFD #40M 73,770 10,530 0 (980) (7,530) 75,790 75,790 441 CFD #41M 119,314 15,070 0 (12,320) (7,480) 114,584 114,584 442 CFD #42M 261,698 43,710 0 (105,680) (4,350) 195,378 195,378 444 CFD #44M 29,411 8,910 0 (7,750) (5,570) 25,001 25,001 445 CFD #45M 345, 360 99,960 0 (87,537) (52,740) 305, 043 305,043 446 CFD #46M 309,114 48,440 0 (40,610) (21,000) 295,944 295,944 447 CFD #47M 6,340 11,460 0 (15,790) (990) 1,020 1,020
448 CFD #48M 422,249 74,400 0 (61,024) (26,050) 409,575 409,575 449 CFD #49M 30,853 12,750 0 (13,830) (4,150) 25,623 25,623 450 CFD #50M 82,771 35,520 0 (29,740) (27,850) 60,701 60,701 451 CFD #51M 101,418 65,810 0 (82,880) (35,630) 48,718 48,718 453 CFD #53M 79,325 8,820 0 (4,710) (4,850) 78,585 78,585 454 CFD #54M 46,874 24,960 0 (40,650) (13,060) 18,124 18,124 455 CFD #55M 57,998 7,110 0 (5,670) (2,930) 56,508 56,508 456 CFD #56M 121,456 26,040 0 (440) (25,270) 121,786 121,786 457 CFD #57M 61,268 14,960 0 (17,160) (5,750) 53,318 53,318 458 CFD #58M 16,928 4,410 0 (550) (120) 20,668 20,668
459 CFD #59M 10,633 2,400 0 (2,280) (40) 10,713 10,713
460 CFD #60M 81,978 12,560 0 (10,210) (5,290) 79,038 79,038 461 C FD #61M 378,410 54,870 0 (28,100) ( 28,100) 377,080 377,080 462 CFD #62M 48,501 5,580 0 (2,170) (160) 51,751 51,751 463 CFD #63M 571,134 54,780 0 (36,690) (1,590) 587,634 587,634 464 CFD #64M 77,583 4,920 0 0 0 82,503 82,503
465 CFD #65M 196,589 19,900 0 (12,700) (10,270) 193,519 193,519

836
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025
Special Revenue Funds:
467 CFD #67M 189,693$ 42,180$ -$ (26,620)$ (23,820)$ 181,433$ -$ 181,433$ 468 CFD #68M 143,022 24,610 0 (17,030) (12,090) 138,512 138,512 469 CFD #69M 636,405 164,440 0 (211,753) (98,670) 490,422 490,422 470 CFD #70M Avellino 219,484 78,080 0 (55,663) (37,730) 204,171 204,171 471 CFD #71M Sierra Crest 387,355 117,110 0 (119,437) (44,370) 340,658 340,658 472 CFD #72M 29,232 10,740 0 (8,950) (5,910) 25,112 25,112 473 CFD #73M 280,446 65,720 0 (32,431) (36,140) 277,595 277,595 474 CFD #74M 499,670 84,850 0 (41,327) (900) 542,293 542,293 475 CFD #75M 55,841 14,360 0 (7,970) (8,260) 53,971 53,971 476 CFD #76M 81,288 33,540 0 (49,308) (14,730) 50,790 50,790 477 CFD #77M 49,071 12,900 0 (8,480) (6,270) 47,221 47,221 478 CFD #78M 251,128 69,880 0 (33,329) (53,170) 234,509 234,509 479 CFD #79M 181,026 21,500 0 (340) (20) 202,166 202,166 480 CFD #80M 455,451 212,440 0 (191,256) (120,090) 356,545 356,545 481 CFD #81M 92, 249 109,200 0 (109,157) (53,920) 38, 372 38,372 482 CFD #82M 173,980 28,650 0 0 0 202,630 202,630
483 CFD #83M 195,217 61,970 0 (38,552) (29,650) 188,985 188,985 484 CFD #84M 41,445 19,500 0 (9,950) (9,490) 41,505 41,505 485 CFD #85 THE MEADOWS 922,459 419,280 0 (333,652) (124,380) 883,707 883,707 486 CFD #86 ETIWANDA RIDGE 182,184 63,750 0 (67,577) (31,650) 146,707 146,707 487 CFD #87 El Paseo 214,032 73,560 0 (27,989) (59,090) 200,513 200,513 488 CFD #88 SIERRA CREST II 282,247 113,670 0 (62,970) (39,260) 293,687 293,687 489 CFD #89 BELROSE 232,393 61,100 0 (29,745) (28,990) 234,758 234,758 490 CFD #90 SUMMIT @ ROSENA PH i 1,348,086 353,040 0 (297,531) (114,190) 1,289,405 1,289,405 491 CFD #91M 30,254 6,080 0 0 0 36,334 36,334
492 CFD #92M 79,109 16,720 0 (11,020) (5,140) 79,669 79,669 493 CFD #93M 52,721 11,250 0 (20,040) (4,100) 39,831 39,831 494 CFD #94M 9,116 2,100 0 0 (1,620) 9,596 9,596
495 CFD #95 SUMMIT @ ROSENA PH II 445,969 162,700 0 (239,329) (27,760) 341,580 341,580 496 C FD #96M Tr. 19957 42,361 11,110 0 (6,420) 0 47, 051 47,051 497 CFD #97M 23,004 5,200 0 0 (3,520) 24,684 24,684
498 CFD #98M 22,199 6,030 0 0 0 28,229 28,229

837
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025
Special Revenue Funds:
500 CFD #100M 191,692$ 83,190$ -$ (29,169)$ (160)$ 245,553$ -$ 245,553$ 501 CFD #101M 29,263 8,110 0 0 0 37,373 37,373
502 CFD #102M 18,813 5,010 0 0 (1,620) 22,203 22,203
503 CFD #103M Estrada 16,035 4,500 0 0 (1,350) 19,185 19,185 504 CFD #104M 38,637 13,780 0 (5,820) 0 46,597 46,597
505 CFD #105M 96,367 46,180 0 (21,819) (26,260) 94,468 94,468 506 CFD #106M 208,608 92,090 0 (23,472) (36,000) 241,226 241,226 507 CFD #107M 46,387 15,670 0 (7,430) (28,910) 25,717 25,717 509 CFD #109M 398,271 45,610 0 (199,900) (128,760) 115,221 115,221 510 CFD #510M 12,776 17,420 0 0 (4,870) 25,326 25,326
511 CFD #111M 38,715 72,470 0 (10,210) (53,500) 47,475 47,475 512 CFD #112M 37,955 343,280 0 (210,179) (137,730) 33,326 33,326 Total Special Revenue Funds 110,634,064$ 181,950,902$ 2,842,603$ (213,646,305)$ (10,945,172)$ 70,836,092$ 2,753,082$ 73,589,174$ Debt Service Funds:
580 General Debt Service 9,447$ 1,125,300$ 2,869,050$ (3,994,350)$ -$ 9,447$ -$ 9,447$ Total Debt Service Funds 9,447$ 1,125,300$ 2,869,050$ (3,994,350)$ -$ 9,447$ -$ 9,447$ Capital Project Funds:
601 Capital Reinvestment 42,938,501$ 10,300,984$ 7,438,635$ (60,330,597)$ (1,000,000)$ (652,477)$ 1,661,267$ 1,008,790$ 602 Capital Improvements 7,677,865 5,407,007 13,903,875 (26,681,788) (306,959) 0 927 927 603 Future Capital Projects 19,426,013 0 0 (344,883) (151,420) 18,929,710 (14,076,773) 4,852,937 604 Capital Project -TUT 0 0 0 0 0 0 5,150,000 5,150,000 620 San Sevaine Flood Control 2,600,304 805,800 0 (9,049) (8,320) 3,388,735 - 3,388,735 621 Upper Etiwanda Flood Control 47,845 0 0 0 0 47,845 47,845 622 Storm Drain 22,471,309 3,555,000 0 (12,047,490) (98,460) 13,880,359 - 13,880,359 623 Sewer Expansion 1,539,860 2,500,000 0 (2,910,621) (19,280) 1,109,959 1,109,959 630 Circulation Mitigation 23,516,714 4,651,000 0 (14,461,901) (73,880) 13,631,933 4,076,773 17,708,706 631 Fire Assessment 742,012 260,000 0 (423,922) (281,570) 296,520 - 296,520 632 G
eneral Government 13,554,511 430,000 0 (12,068,888) 0 1,915,623 - 1,915,623 633 Landscape Medians 2,552,973 650,000 0 (2,343,210) (11,720) 848,043 482,741 1,330,784 634 Library Capital Improvement 1,370,483 200,000 0 0 (6,440) 1,564,043 - 1,564,043 635 P
arks Development 16,609,232 2,100,000 0 (9,257,277) (123,970) 9,327,985 166,366 9,494,351 636 Police Capital Facilities 4,179,598 400,000 0 (461,285) (38,880) 4,079,433 - 4,079,433 637 Underground Utilities 851,587 0 0 0 0 851,587 851,587

838
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Unaudited
Fund Balance
July 1, 2024
Revenues Transfers In Expenditures Transfers Out Available Net
Proposed
Adjustments
Estimated
Fund Balance
June 30, 2025
Other Funds - Unreserved Fund Balances
Budget
Fiscal Year 2024/2025
Capital Project Funds:
653 CFD #7 Club Estates 5,573$ -$ -$ -$ -$ 5,573$ (5,573)$ -$ 654 CFD #11 Heritage West 905 0 0 0 0 905 (905)$ 0 655 CFD #12 Sierra Lakes 8,153 0 0 0 0 8,153 (8,153)$ 0 658 CFD #31 7,491 0 0 0 0 7,491 (1,439)$ 6,052 659 CFD #70 Avellino 1,197 0 0 0 0 1,197 (399)$ 798 660 CFD #71 Sierra Crest 2,686 0 0 0 0 2,686 2,686
661 CFD #80 Bella Strada 11,501 0 0 0 0 11,501 11,501
663 CFD #74B Citrus/Summit 184,859 0 0 0 0 184,859 184,859 664 CFD #86 Etiwanda Ridge 975,717 0 0 0 0 975,717 975,717 665 CFD #85 The Meadows 5,904 0 0 0 0 5,904 5,904
666 CFD #88 Sierra Crest II 98,635 0 0 0 0 98,635 98,635 667 CFD #89 Belrose 91,566 0 0 0 0 91,566 91,566
668 CFD #90 Summit @ Rosena Ph I 10,600,446 0 0 0 (19,680) 10,580,766 10,580,766 669 CFD #95 Summit @ Rosena II 5,938,090 0 0 0 ( 80,498) 5,857,592 5,857,592 670 CFD #87 El Paseo 972,593 0 0 0 (
97,130) 875,463 875,463
671 CFD #106 Mountain View 100,406 0 0 0 (75,070) 25,336 25,336 672 CFD #99 The Retreat 3,358,852 0 0 0 (28,300) 3,330,552 (3,299,494) 31,058 673 CFD #100 Victoria 3,863,529 0 0 0 (7,772) 3,855,757 3,855,757 674 CFD #111 Monterado 7,186,664 0 (14,600) (1,910,560) 5,261,504 5,261,504 675 CFD#107 Highland 0 3,653,668 0 (275,456) (671,660) 2,706,552 2,706,552 676 CFD#109 Narra Hills 0 37,059,417 0 (20,080,986) (5,455,660) 11,522,771 (2,930,703) 8,592,068 677 CFD #112 The Gardens Phase One 0 30,989,616 0 (1,593,227) (553,645) 28,842,744 (35,500) 28,807,244 Total Capital Project Funds 196,525,584$ 102,962,492$ 21,342,510$ (163,305,180)$ (11,020,874)$ 146,504,532$ (8,820,865)$ 137,683,667$ Enterprise Funds:
701 Sewer Maintenance & Operations 10,913,811$ 31,165,000$ -$ (28,341,298)$ (2,266,640)$ 11,470,873$ -$ 11,470,873$ 702 Sewer Capital Projects 2,812,692 300,000 0 (370,014) (155,350) 2,587,328 - 2,587,328 703 Sewer Replacement 8,260,896 1,000,000 146,210 (8,567,569) (107,170) 732,367 732,367 710 Water Utility 854,085 0 0 0 0 854, 085 854,085
720 Stage Red 1,258,953 150,000 1,000,000 (1,350,200) 0 1,058,753 (1,000,000) 58,753 Total Enterprise Funds 24,100,437$ 32,615,000$ 1,146,210$ (38,629,081)$ ( 2,529,160)$ 16,703,406$ (1,000,000)$ 15,703,406$ Internal Service Fund:
751 FLEET OPERATIONS 19,109,563$ 8,586,855$ 2,500,001$ (14,671,292)$ -$ 15,525,127$ (66)$ 15,525,061$ Total Internal Service Funds 19,109,563$ 8,586,855$ 2,500,001$ (14,671,292)$ -$ 15,525,127$ (66)$ 15,525,061$ 365,211,313$ 343,815,776$ 57,194,796$ (473,961,070)$ (30,265,403)$ 261,995,412$ 2,932,151$ 264,927,563$ TOTAL ALL FUNDS

839
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Fund
Organization
Project #
Dept
Organization/Project
Description
Object Object Description Appropriations Revenues
Transfers
In
Transfers
Out
FB Impact Reason
101 General Fund 1,022,200 10,322,200 - 5,150,000 4,150,000 Revenue Adjustments
10128000 FN Management Services 5062 Transaction Use Tax 10,300,000 10,300,000 Increase revenues for FY24-25 Transactional Use Tax (TUT) Forecast Offsetting Adjustments
10130100 DS DS Adm-Admin & Finance 6450 Miscellaneous Income 22,200 22,200 10130100 DS DS Adm-Admin & Finance 8010 Departmental Expense 22,200 (22,200) New Requests (One-Time)
10128000 FN Management Services 8790 Operating Transfer Out 5,150,000 (5,150,000) Xfer to Fund #604 for forecasted TUT revenues 10128200 FN Accounting 8090 Managed Savings 1,000,000 (1,000,000) Increase appropriations for FY25-26 One-Time request funding General Fund - Recommended Adjustments
Fiscal Year 2024/2025
Increase revenues and appropriations for IEUA Water Connection fee compensation

840
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Fund
Organization
Project #
Dept
Organization/Project
Description
Object Object Description Appropriations Revenues
Transfers
In
Transfers
Out
FB Impact Reason
104 Office of Emergency Svcs - - - - - 10420010 AS Office of Emergency Svcs 6835 Contribution From FFD (22,414) (22,414) } 20000002-104-A AS Line Fire 2024 6480 Miscellaneous Reimb 22,414 22,414 } 106 Self-Insurance - - 10,000,000 - 10,000,000 10615001 HR Workers' Compensation 6900 Operating Transfers In 10,000,000 10,000,000 Xfer from Fund #603 for workers compensation & risk liability reserves
241 Air Quality Mgmt Dist (22,081) - - - 22,081 37304338-241-A PW&E EV Charging Station (EE) 8331 Construction Contingency (22,081) 22,081 Project complete, return remaining funds to FB 246 Measure I 2010-2040 Local (379,681) - - - 379,681 37500012-246-A PW&E Local Roadway Safety Plan 8113 Design/Architect Service (717) 717 Project complete, return remaining funds to FB 37600048-246-A PW&E Randall Ave Improvements Various Operating Accounts (21,951) 21,951 Project complete, return remaining funds to FB 37603341-246-A PW&E Cherry/Live Oak Traffic Signal Mod Various Operating Accounts (86,116) 86,116 Project complete, return remaining funds to FB 37603355-246-A PW&E Citrus/Ceres Traffic Signal Various Operating Accounts (63,218) 63,218 Project complete, return remaining funds to FB 37603382-246-A PW&E Mango/So Highland TS Various Personnel Accounts (3,260) 3,260 } 37603382-246-A PW&E Mango/So Highland TS Various Operating Accounts (113,316) 113,316 } 37603384-246-A PW&E FS 78 Citrus/Chase TS Various Operating Accounts (91,103) 91,103 Project complete, return remaining funds to FB 281 Gas Tax (State) 1,878 - - - (1,878) 37600056-281-A PW&E Village of Heritage Pavement Rehab 8329 Other Construction 1,878 (1,878) Move appropriation to alternative project fund 282 Solid Waste Mitigation (5,098) - - - 5,098 37600055-282-A PW&E Southridge Pave Rehab -Jur: Hem-Sie Various Operating Accounts (6,032) 6,032 Project complete, return remaining funds to FB 37600065-282-A PW&E Pave Rehab (Sierra: SB to Valley) 8329 Other Construction 934 (934) Move appropriation to alternative project fund 283 Road Maintenance & Rehab (151,645) 2,190,000 - - 2,341,645 37600055-283-A PW&E Southridge Pave Rehab -Jur: Hem-Sie Various Operating Accounts (151,645) 151,645 Project complete, return remaining funds to FB 37604130-283-H PW&E Pavement Rehabilitation - RMRA 5364 Gasoline Tax RMRA 2,190,000 2,190,000 Increase revenues for receipts to date 301 Grants (6,455) - - - 6,455 37500012-301-A PW&E Local Roadway Safety Plan 8113 Design/Architect Service (6,455) 6,455 Project complete, return remaining funds to FB 362 CDBG 16,197 16,197 - - - 30200006-363-A DS Home Project TBD 5338 Program Income 16,197 16,197 } 30200006-363-A DS Home Project TBD 8329 Other Construction 16,197 (16,197) } 363 HOME 3,984 3,984 - - - 03020004-363-A DS HOME-ARP TBD 5328 CDBG Grant Reimbursement 3,984 3,984 } 03020004-363-A DS HOME-ARP TBD Various Operating Accounts 3,984 (3,984) } Other Funds - Recommended Adjustments
Fiscal Year 2024/2025
Decrease contribution for Red Cross receipts to date
Increase revenues and appropriations for program income spent
Increase revenues and appropriations for HOME-ARP grant increase
Project complete, return remaining funds to FB

841
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Fund
Organization
Project #
Dept
Organization/Project
Description
Object Object Description Appropriations Revenues
Transfers
In
Transfers
Out
FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2024/2025
601 Capital Reinvestment (659,056) 2,211 - (1,000,000) 1,661,267 60130000 DS Special Projects 8790 Operating Transfer Out (1,000,000) 1,000,000 Reverse FY24-25 Q3 Xfer to Fund #720 28001008-601-A FN Miscellaneous Project 6480 Miscellaneous Reimb 2,211 2,211 Increase revenues for property tax refund 37600013-601-A PW&E Pave Rehab ( Rose Ave) 8112 Engineering Services (33,827) 33,827 Project complete, return remaining funds to FB 37600020-601-A PW&E Jurupa Ave. Landscape Median Various Operating Accounts (149,417) 149,417 Project complete, return remaining funds to FB 37600048-601-A PW&E Randall Ave Improvements 8329 Other Construction (346,578) 346,578 Project complete, return remaining funds to FB 37600061-601-A PW&E Southridge Pavement Rehab (Grid 53) Various Operating Accounts (126,422) 126,422 Project complete, return remaining funds to FB 37600056-601-A PW&E Village of Heritage Pavement Rehab 8329 Other Construction (1,878) 1,878 Move appropriation to project Fund #281 37600065-601-A PW&E Pave Rehab (Sierra: SB to Valley) 8329 Other Construction (934) 934 Move appropriation to project Fund #282 602 Capital Improvement (927) - - - 927 37304338-602-A PW&E EV Charging Station (EE) 8330 Construction Contracts (927) 927 Project complete, return remaining funds to FB 603 Future Capital Projects - - - 14,076,773 (14,076,773) 60328100 FN Project Advances Admin 8790 Operating Transfer Out 10,000,000 (10,000,000) Xfer to Fund #106 for workers compensation reserves 60328100 FN Project Advances Admin 8790 Operating Transfer Out 4,076,773 (4,076,773) Xfer to Fund #630 to remove advance obligation 604 Capital Project -TUT - - 5,150,000 - 5,150,000 60437000 PW&E PW Admin - TUT 6900 Operating Transfers In 5,150,000 5,150,000 Xfer from GF #101 for forecasted TUT revenues 620 San Sevaine Flood Control 58,744 - 58,744 - - 62037000 PW&E San Sevaine Eng Admin 6900 Operating Transfers In 58,744 58,744 } 62037000 PW&E San Sevaine Eng Admin 8097 Reimbursements-Developers 58,744 (58,744) } 622 Storm Drain 273,368 - 273,368 - - 62237424 PW&E S/D Master I-10 North 6900 Operating Transfers In 273,368 273,368 } 62237424 PW&E S/D Master I-10 North 8097 Reimbursements-Developers 273,368 (273,368) } 630 Circulation Mitigation 2,940,227 - 7,017,000 - 4,076,773 63028100 FN Project Advance 6900 Operating Transfers In 4,076,773 4,076,773 Xfer from Fund #603 to remove advance obligation 63037000 PW&E Circulation Mitigation 6900 Operating Transfers In 2,940,227 2,940,227 } 63037000 PW&E Circulation Mitigation 8097 Reimbursements-Developers 2,940,227 (2,940,227) } 631 Fire Assessment 102,396 - 102,396 - - 63134105 PL Fire Assessment Projects 6900 Operating Transfers In 102,396 102,396 } 63134105 PL Fire Assessment Projects 8097 Reimbursements-Developers 102,396 (102,396) } 632 General Government 221,490 - 221,490 - - 63234105 PL Public Fac DIF-CDA/PLN 6900 Operating Transfers In 221,490 221,490 } 63234105 PL Public Fac DIF-CDA/PLN 8097 Reimbursements-Developers 221,490 (221,490) } 633 Landscape Medians (332,288) - 150,453 - 482,741 63337000 PW&E Landscape Medians 6900 Operating Transfers In 150,453 150,453 } 63337000 PW&E Landscape Medians 8097 Reimbursements-Developers 150,453 (150,453) } 37600020-633-A PW&E Jurupa Ave. Landscape Median Various Operating Accounts (482,741) 482,741 Project complete, return remaining funds to FB Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges

842
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Fund
Organization
Project #
Dept
Organization/Project
Description
Object Object Description Appropriations Revenues
Transfers
In
Transfers
Out
FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2024/2025
634 Library Cap Improvement 66,844 - 66,844 - - 63434105 PL Library DIF-CDS/SP 6900 Operating Transfers In 66,844 66,844 } 63434105 PL Library DIF-CDS/SP 8097 Reimbursements-Developers 66,844 (66,844) } 635 Parks Development 1,241,680 - 1,408,046 - 166,366 63537000 PW&E Parks Dev Cap Fd-Eng 6900 Operating Transfers In 1,408,046 1,408,046 } 63537000 PW&E Parks Dev Cap Fd-Eng 8097 Reimbursements-Developers 1,408,046 (1,408,046) } 37600045-635-A PW&E Miller Park Fence Various Personnel Accounts (1,834) 1,834 } 37600045-635-A PW&E Miller Park Fence Various Operating Accounts (164,532) 164,532 } 636 Police Capital Facilities 231,346 - 231,346 - - 63634105 PL Police Fac DIF-CDA/SP 6900 Operating Transfers In 231,346 231,346 } 63634105 PL Police Fac DIF-CDA/SP 8097 Reimbursements-Developers 231,346 (231,346) } 653 CFD #7 Club Estates 5,573 - - - (5,573) 65337000 PW&E CFD #7 Club Estates 8720 Bond Defeasance 5,573 (5,573) Increase appropriations for receipts to date 654 CFD #11 Heritage West 905 - - - (905) 65437000 PW&E CFD #11 Heritage West 8720 Bond Defeasance 905 (905) Increase appropriations for receipts to date 655 CFD #12 Sierra Lakes 8,153 - - - (8,153) 65537000 PW&E CFD #12 Sierra Lakes 8720 Bond Defeasance 8,153 (8,153) Increase appropriations for receipts to date 658 CFD #37 Montelago 1,439 - - - (1,439) 65837000 PW&E CFD #37 Montelago 8720 Bond Defeasance 1,439 (1,439) Increase appropriations for receipts to date 659 CFD #70 Avellino 399 - - - (399) 65937000 PW&E Cap Proj-Avellino CFD #70 8720 Bond Defeasance 399 (399) Increase appropriations for receipts to date 672 CFD #99 The Retreat 134,861 - - 3,164,633 (3,299,494) 67237000 PW&E CFD #99 The Retreat 8743 Contribution To FHA 134,861 (134,861) Contribution to Fund #698 and increase appropriations for developer reimbursement charges
67237000 PW&E CFD #99 The Retreat 8790 Operating Transfer Out 3,164,633 (3,164,633) Xfer to Fund #620,622,630,631,632,633,634,635,636,702
and increase appropriations for developer reimbursement charges
676 CFD#109 Narra Hills 481,811 - - 2,448,892 (2,930,703) 67637000 PW&E CFD #109 Narra Hills 8721 Costs Of Issuance 98,000 (98,000) Increase appropriations for trustee cost of issuance 67637000 PW&E CFD #109 Narra Hills 8743 Contribution To FHA 383,811 (383,811) Contribution to Fund #698 and increase appropriations for developer reimbursement charges
67637000 PW&E CFD #109 Narra Hills 8790 Operating Transfer Out 2,448,892 (2,448,892) Xfer to Fund #620,622,630,631,632,633,634,635,636,702
and increase appropriations for developer reimbursement charges
677 CFD #112 The Gardens Phase One 35,500 - - - (35,500) 67737000 PW&E CFD #112 The Gardens Phase I 8721 Costs Of Issuance 35,500 (35,500) Increase appropriations for trustee cost of issuance 702 Sewer Capital Projects 160,611 - 160,611 - - 70237000 PW&E Eng Sewer Improvement Ad 6900 Operating Transfers In 160,611 160,611 } 70237000 PW&E Eng Sewer Improvement Ad 8097 Reimbursements-Developers 160,611 (160,611) } Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Xfer from Fund #672, 676 and increase appropriations for developer reimbursement charges
Project complete, return remaining funds to FB

843
Fourth Quarter Budget Status Report - 2024/2025 City of Fontana July 22, 2025
Fund
Organization
Project #
Dept
Organization/Project
Description
Object Object Description Appropriations Revenues
Transfers
In
Transfers
Out
FB Impact Reason
Other Funds - Recommended Adjustments
Fiscal Year 2024/2025
720 Stage Red - - (1,000,000) - (1,000,000) 72030104 DS Stage Red 6900 Operating Transfers In (1,000,000) (1,000,000) Reverse FY24-25 Q3 Xfer from Fund #601 751 Fleet Operations - (66) - - (66) 75137305 PW&E Fleet Maintenance 6710 Motorpool Charges (66) (66) Adjust motorpool charges based on O&M expenditures

844