Montclair City Council
June 26, 2025

CITY OF MONTCLAIR

PRELIMINARY BUDGET
FISCAL YEAR 2025-26

PRELIMINARY BUDGET
Fiscal Year 2025-26
City of Montclair
FY 2025-26 City of Montclair Preliminary Budget Page 2 of 741

CITY OF MONTCLAIR
FY 2025-26 PRELIMINARY BUDGET

TABLE OF CONTENTS
City Manager's Message .............................................................................................................................. i Budget Summaries
Combined Sources & Uses Statement .......................................................................................... 1 Fund Descriptions .......................................................................................................................... 3 Actual and Estimated Revenues ..................................................................................................12 Notes to Actual and Estimated Revenues ...................................................................................24 Comparative Operating Appropriations Budgets .........................................................................32 Operating Appropriations Budget by Fund ..................................................................................34 Budget Allocations by Department...............................................................................................36 Operating Appropriations Budget by Object Class ......................................................................39 Article 13-B Disclosures ...............................................................................................................41 Departmental Operating Budgets
City Council ................................................................................................................................ A-1 City Manager .............................................................................................................................. B-1 Administrative Services .............................................................................................................. C-1 Human Services ......................................................................................................................... D-1 Police ......................................................................................................................................... E-1 Fire ............................................................................................................................................. F-1 Public Works ............................................................................................................................. G-1 Community Development ........................................................................................................... H-1 Economic Development .............................................................................................................. I-1 City Attorney ............................................................................................................................... J-1 Citywide ...................................................................................................................................... K-1 CFD Operations ......................................................................................................................... L-1 Supplemental Information
Equipment Replacement Fund Analysis Funding Requirement ............................................... M-1 Glossary of Terms ..................................................................................................................... M-4 Acronyms .................................................................................................................................. M-7 FY 2025-26 City of Montclair Preliminary Budget Page 3 of 741

CITY OF MONTCLAIR
5111 Benito Street, P.O. Box 2308, Montclair, CA 91763 (909) 626–8571 FAX (909) 621–1584 Mayor Javier John Dutrey • Mayor Pro Tem Corysa Martinez • Council Members: Bill Ruh, Benjamin Lopez, Xavier Mendez • City Manager Edward C. Starr June 13, 2025
CITY OF MONTCLAIR FISCAL YEAR 2025–26 PROPOSED BUDGET
AND
CITY MANAGER'S FISCAL YEAR 2025–26 BUDGET MESSAGE
Honorable Mayor and City Council, presented for consideration is the proposed City of Montclair Fiscal Year 2025–26 Budget and City Manager’s Budget Message.

SECTION I. REVENUE, APPROPRIATIONS, RESERVE FUNDS—AN INTRODUCTION Fiscal Year 2025–26 Appropriations:
➢ Appropriations Budget.

Table 1, below, details the proposed Appropriations Budget for All Funds and the General Operating Fund:

Table 1
Appropriations Budget: All Funds and General Operating Fund Current and Prior Year
Current Year Prior Year Change
Appropriations:

All Funds $ 65,230,150 $ 62,049,111 $ 3,181,039
General Operating Fund $ 39,524,382 $ 37,693,425 $ 1,830,957 As indicated in Table 1, above, the proposed Fiscal Year 2025–26 Appropriations Budget demonstrates an approximate $3.18 million adjustment in appropriations across all funds, year–over–year when compared to Fiscal Year 2024–25, and a more modest $1.83 million adjustment, year–over–year, in General Operating Fund appropriations.

FY 2025-26 City of Montclair Preliminary Budget Page 4 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Fiscal Year 2025–26 Transfers:
➢ Proposed General Operating Fund Transfers.

Table 2, below, identifies Proposed General Operating Fund Transfers:

Table 2
Proposed General Operating Fund Transfers
Transfer
To From Purpose Amount
General Operating Fund Traffic Safety Fund Program Costs $ 100,000 Budgetary Contingency General Fund Increase Balance 120,179 Total Transfers $ 220,179
As indicated in Table 2, above, the Fiscal Year 2025–26 Budget proposes the following annual transfer into the General Fund Operating Fund for program– related costs—City Council approval of the Fiscal Year 2025–26 Proposed Budget completes the fund transfers as provided for in Table 2:
• Traffic Safety Fund. $100,000 from the Traffic Safety Fund to the General Operating Fund. This annual transfer reimburses the General Operating Fund for program–related costs.

The following transfer will be made from the General Operating Fund to the indicated Special Reserve Fund.
• Budgetary Contingency Reserve Fund. $120,179 from the General Fund to the Budgetary Contingency. This transfer increases funds available for unanticipated non–personnel expenditures during the fiscal year.

Fiscal Year 2025–26 Estimated Revenue:
➢ Estimated Revenue, All Funds and General Operating Fund.

Table 3, below, depicts estimated revenues for All Funds and the General Operating Fund:

Table 3
Estimated Revenue
All Funds and General Operating Fund
Current and Revised Prior Year
Current Year
Revised
Prior Year Change
Estimated Revenue:

All Funds $ 69,840,126 $ 72,981,466 $ (3,141,340)
General Operating Fund $ 40,085,115 $ 39,865,303 $ 219,812 Table 3 demonstrates only a minor adjustment in General Operating Fund revenue, year–over–year; however, there is a significant downward adjustment of FY 2025-26 City of Montclair Preliminary Budget Page 5 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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–$3,141,340 across All Funds, attributed to a variety of revenue related changes discussed in this Budget Message.

Depressed General Operating Fund receipts, as indicated in Table 3, are of particular concern because the General Operating Fund is the primary funding source for general government operations. This concern caused the City Manager to explore Factors Affecting Collection of Revenue, referenced below—factors that appear to be suppressing economic activity, and which have led to a high level of uncertainty affecting the national, state and local economies. ➢ Factors Affecting Collection of Revenue.

Depressed growth in General Fund tax revenue projections for Fiscal Year 2025– 26 is based on, but not limited to, the following areas of concern affecting the national, state, and local economies—these concerns are discussed at length in SECTION VIII. ISSUES AND FACTORS DIRECTLY AND INDIRECTLY AFFECTING

THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY, attached as a supplemental section to this Budget Message. • The International Monetary Fund’s Successive Warnings that the Global Economy Could Face Significant Challenges Stemming from “Reciprocal” Tariffs Imposed by the U.S. on more than 200 Nations. • Impacts of “Reciprocal” Tariffs on Product Inventory, Demand and Manufacturing.
• Federal Reserve Board Maintains Federal Funds Rate Range of 4.25%–

4.50%, Signaling No Immediate Shift in Policy or Lowering of Interest Rates.
• Declining Consumer Confidence.
• Global Bond Diversification Threatens U.S. Bond Markets. • California Home Sales Show Clear Signs of Slowing in 2025 as Consumers Grow Increasingly Concerned About Personal Financial Outlook.
• Growing Financial Burdens Related to Public Employee Pensions. • State Tax Laws and their Effect on County Pools and E–Commerce Sales.
• Downgrade to U.S. Creditworthiness.
• Fears of Recession.
• California and the Impacts of Declining Trade.

FY 2025-26 City of Montclair Preliminary Budget Page 6 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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• A Retreat in Inland Empire Logistics.

Of particular concern is the discussion under State Tax Laws and their Effect on County Pools and E–Commerce Sales, cited above and contained in SECTION VIII. ISSUES AND FACTORS DIRECTLY AND INDIRECTLY AFFECTING THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY. A component of this discussion is the shifting shopping trend among consumers to e– commerce transactions—a transition that is affecting the distribution of sales and transactions and use tax revenues, which is affecting California cities in several major ways:
• Traditional brick–and–mortar stores are seeing declining revenue, which translates to declining sales tax revenue;
• With rising e–commerce sales, an increasing share of tax revenue derived from transactions and use taxes is being directed to County Pools where it is distributed to each city in a county based on per capita sales tax performance;
• With major e–commerce vendors agreeing to tax sharing agreements with a limited number of cities in California (approximately 40), and the host city, in turn, receiving designation as the point of sale for all e–commerce transactions, the remaining cities (approximately 443) are seeing declining growth in sales and transactions and use tax revenues; and • City’s hosting major e–commerce vendors are seeing an increase in point– of–sale transactions, which translates to an increase in per capita sales tax performance, which translates to a greater share of the tax distribution from County Pools to these cities.

In addition to the above, drawing on data from 2024 and first quarter data in 2025, the HdL Companies, Montclair’s sales and property tax consultant, reports that store closures over the past year, coupled with shoppers spending less at local retailers netted general consumer goods payments at a 6 percent decline, while demand for specialized equipment showed a 12 percent reduction. Used car sales in Montclair did, however, rise 2 percent, and restaurants showed 5 percent growth due primarily to recent eatery openings and menu price increases.

Contractor project work was also up due to large building–construction filings.

Gasoline sales were down 14 percent, largely due to the decreased price of global crude oil. When adjusted for anomalies, Montclair’s sales and transactions and use tax revenues have decreased 3 percent.

In Fiscal Year 2023–24, Montclair’s audited revenues for sales and transactions and use taxes (Measures F and L) came in at $28,402,694. In comparison, projected sales and transactions and use tax earnings for Fiscal Year 2025–26 are estimated at $28,275,712—a projected decrease of $126,982.

FY 2025-26 City of Montclair Preliminary Budget Page 7 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Depressed sales and transactions and use tax earnings created difficult choices in preparing the Fiscal Year 2025–26 Budget. The City Manager and Finance Director took cautious measures to control growth in General Operating Fund appropriations, and those efforts are reflected throughout this Budget Message.

In reflection on this effort, it is important to keep in mind that personnel costs represent an estimated 61 percent of total appropriations. Labor agreements, alone, mandate General fund revenue growth in order to keep pace with the increasing cost of labor. Those labor agreement provisions are honored in the Fiscal Year 2025–26 Budget. However, adding new fiscal burdens related to personnel costs must be approached with circumspect.

The City Manager does anticipate the potential for minor year-over-year growth in sales and use tax earnings by mid–2026, provided U.S. economic and fiscal policies stabilize over the next several months, and immigration policies do not adversely affect the local economy. At the same time, state legislators need to demonstrate an intent to arrive at solutions to the state’s current sales tax practices. With those expectations in mind, there is a high level of confidence that the proposed Fiscal Year 2025–26 Budget will meet expectations and sustain the recommendations contained herein.

In overview of current economic conditions, HdL concludes that the economic outlook for the nation is characterized by uncertainty, due primarily to ambiguity in national public policy, leading to delays and curtailment in capital investment. “Tariff impositions fluctuate daily, often lacking specificity, with changing start dates and unclear product details.” Further, “prioritized day–to–day expenditures erode discretionary spending due to weakened consumer confidence.” Fiscal Year 2025–26 Estimated Revenue Debt Service:
➢ Debt Service.

The Proposed Fiscal Year 2025–26 Estimated Revenue Budget incorporates the following revenue set–asides for debt service:
• 2014 Issue of Lease Revenue Bonds. $2,591,513 in General Fund Revenue allocated for annual debt service payment on the 2014 Issue of Lease Revenue Bonds. Approximately $22.034 million in funds derived from the 2014 Issue were used for a variety of infrastructure projects throughout the City. Annual payments on the 2014 Issue will continue until maturity in 2045.
• 2021 Issue of Lease Revenue Bonds. $2,395,863 in General Fund Revenue allocated for annual debt service payment on the 2021 Issue of Lease Revenue Bonds. Approximately $47.563 million in funds derived from the 2021 Issue are committed to a variety of infrastructure projects throughout the City. Annual payments on the 2021 Issue will continue until maturity in June 2051.
• 2021 Issue of Pension Obligation Bonds. $4,438,996 in General Fund Revenue allocated for annual debt service payment on the 2021 Pension Obligation Bonds (POB). Approximately $63 million in funds derived from FY 2025-26 City of Montclair Preliminary Budget Page 8 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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the 2021 POB Issue were used to pay down the City's unfunded accrued lability (UAL) on pension obligations. POBs do not represent new debt; rather, POB funds were used to pay off an existing obligation at a lower annual interest rate, with a controlled annual payment obligation. Annual payments on the 2021 POB Issue will continue until maturity in June 2041.

Fiscal Year 2025–26 General Operating Fund Position:
➢ Producing a Balanced Budget.

The Proposed Fiscal Year 2025–26 Budget is balanced based on the following:
o General Operating Fund Revenue Estimate—$40,085,115
o General Operating Fund Appropriations—$39,524,482
o General Operating Fund Allocation to Budgetary Contingency Reserve Fund—$120,179
o Total General Operating Fund Appropriations, including General Fund Appropriations ($39,524,482) and General Operating Fund Reserves Allocation ($120,179)—$39,644,661.
➢ Measure L.

Measure L, the 1% transactions and use tax measure, was approved by Montclair voters on November 3, 2020. Beginning in April 2021 (the effective date for collection of Measure L by the California Department of Tax and Fee Administration – CDTFA), the City experienced growth in its General Fund Revenue earnings due to improved sales tax revenues derived from Measure L.

For Fiscal Year 2025–26, Measure L is projected to generate approximately $10.764 million in sales tax revenue, down from an estimated $11.12 million for Fiscal Year 2024–25 and an audited $10,888,857 in Fiscal Year 2023–24.

Tax earnings generated by Measure L are used to fund general government operations funded by the General Fund, including approximately $2,395,863 for annual debt service on the 2021 Issue of Lease Revenue Bonds which, in turn, is used to provide for a number of public works/infrastructure improvement projects in Montclair. Together, Measure L and funds provided through the 2021 Issue of Lease Revenue Bonds are used to produce a number of positive benefits for the Montclair community including, but not limited to, the following:
• Maintain a superior level of services to the community; • Achieve objectives of the Amended North Montclair Downtown Specific Plan (NMDSP), the Montclair Place District Specific Plan (MPDSP), the proposed General Plan Update, and the proposed Arrow Highway Mixed– Use District Specific Plan (AHMUD);
FY 2025-26 City of Montclair Preliminary Budget Page 9 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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• Promote development within the City's Transit Oriented District (TOD); • Promote integration of expanded transit services in the community; • Achieve infrastructure improvements throughout the community, including improvements to streets, alleyways and bridges; • Promote community–oriented improvements to public safety programs; • Achieve a safer community;
• Promote safe routes to schools;
• Achieve improvements to existing parklands;
• Promote expansion of parklands, green spaces and open spaces; • Promote competitive wages and benefits;
• Restore employee positions;
• Meet ongoing pension obligations;
• Produce balanced budgets;
• Facilitate annexation to the City of properties in the City's Sphere of Influence (SOI) and pursue economic development to further enhance the SOI and the City;
• Promote economic development, citywide;
• Develop special funds to achieve reserves that target defined interests of the City;
• Address affordable housing and homelessness; and
• Promote improvements to the General Operating Fund Reserve.

Revenue gains derived from Measure L have effectively been allocated into successive appropriations budgets to satisfy debt obligations, reverse budget reductions related to the COVID–19 pandemic, restore personnel levels across departments, improve personnel wages and benefits, satisfy Department needs for capital outlay, address a range of issues including affordable housing and homelessness, and plan for/achieve goals and objectives established by the City Council, including the above community objectives.

Over the past two years Measure L earnings, along with other tax sources, have been impacted by overall declines in revenue earnings triggered by an estimated

6.6 percent year–over–year decline in sales tax revenues in Fiscal Year 2023–34, FY 2025-26 City of Montclair Preliminary Budget Page 10 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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coupled with an estimated recovery of just under 4 percent, year–over–year, in sales tax revenues for Fiscal Year 2024–25.

Heading into Fiscal Year 2025–26, economies at every level of government are now staring into the headwinds of uncertainty stemming from a lack of clarity as to the course and direction of federal economic and fiscal policies. This uncertainty is producing real and negative impacts on nearly every economic sector, resulting in declining revenue projections.

In recognizing the above impacts on the local economy, and based on available revenue data, the City Manager and Finance Team anticipated a tight balance between General Fund revenue and appropriations for Fiscal Year 2025–26—a balance achieved only through careful monitoring of, and adjustments and reductions to, each Department’s appropriations budget. ➢ General Operating Fund Unassigned Reserve Fund.

As of June 30, 2026, the Fiscal Year 2025–26 General Operating Fund’s Unassigned Reserve Fund Balance estimate of $6,540,554 is projected to be approximately 16.55 percent of proposed General Fund Operating Appropriations—$39,524,482. The Fiscal Year 2025–26 year–end estimate remains short of the City Council’s minimum Operating Fund Unassigned Reserve Ratio of not less than 25 percent of the annual General Fund Operating Budget.

Further, the end of year estimate represents a decline of $2,059,446 from the previous year estimate of $8,600,000. The decline occurred for the following primary reasons:
• Revenue earnings for Fiscal Year 2024–25 underperformed, requiring use of Unassigned Reserve Funds to maintain a balanced budget for Fiscal Year 2024–25.
• Projected carryover of unspent revenue from Fiscal Year 2023–24 did not materialize, lowering the projected end of year allocation into the Unassigned Reserve Fund. Any carryover from the end of year audit for Fiscal Year 2024–25 will be allocated to the Unassigned General Fund Reserve with the intent of achieving or increasing the Fiscal Year 2025–26 end of year estimate of $6,540,554.
• Unanticipated liability claims, workers' compensation claims and Unemployment Benefit claims required a draw down on the Unassigned Reserve Fund.

The Government Finance Officers' Association (GFOA) recommends no less than a 25 percent General Fund Reserve threshold to provide for an agency's fiscal and operational integrity and stability; elevate an agency's municipal credit rating; provide liquidity; address local emergencies; and provide for other unanticipated local fiscal requirements.

Both the GFOA and the California State Auditor’s Office, however, encourage a 50 percent General Fund Reserve threshold target, vis–a–vis the General Operating FY 2025-26 City of Montclair Preliminary Budget Page 11 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Fund Budget. A 50 percent reserve-target-ratio provides for six-months of funds to meet expenditure obligations. City staff continues to work toward both the 25 percent and 50 percent reserve targets within the Unassigned Reserve Fund.

Despite the projected reduction to the Fiscal Year 2025–26 end of year estimate for the Unassigned Reserve Fund, City staff is pleased to note that Montclair’s total combined reserves, including the proposed General Operating Fund’s end of year Unassigned Reserve Fund balance of $6,540,554 and Special Purpose Reserve Funds balance of $31,936,097, together, equal $38,476,651. ➢ Managing Fiscal Risk.

According to the California State Auditor, California Cities without sufficient reserve may be considered high risk. In ranking the fiscal health of municipalities, the State Auditor considers a number of fiscal categories including liquidity, debt burden, General Fund reserves, revenue trends, pension obligations, pension funding, pension costs, future pension costs, overall risk, and Other Post Employment Benefit (OPEB) Obligations/OPEB funding—OPEBs are the benefits, other than pension distributions, that employees may begin to receive from their employer once they retire. OPEBs typically include life insurance and health insurance.

To provide clarity on factors related to fiscal risk, the California State Auditor operated a Local Government Dashboard. Unfortunately, for the present, the State Auditor’s Office suspended use of the dashboard, which functioned as a useful tool for cities to evaluate their fiscal operations, both internally and on a regional and statewide comparison basis. Cities at high risk could use the dashboard to identify their fiscal weaknesses, and then use the data to identify means to shore up their respective areas of fiscal risk.

The California State Auditor initiated the dashboard after three California cities filed for bankruptcy protection, one in 2008 and two in 2012. In addition, a number of other cities were demonstrating evidence of severe fiscal stress, while other cities were speculating on the likelihood of filing for bankruptcy.

By initiating a local government audit program, the State Auditor provided a tool for municipal self–examination. In the end, however, the resources required to audit every city in the state proved challenging and overwhelming for the State Auditor and, instead, the State Auditor refocused its attention to fulfilling its oversight role over the various state agencies.

In the State Auditor's last financial risk evaluation covering Fiscal Year 2019–20 to Fiscal Year 2020–21 (Table 4, below), Montclair ranked 78 out of 471 municipal agencies.

In Table 4, “Low” demonstrates low risk (the agency has a low risk of experiencing fiscal distress), “Moderate” demonstrates moderate risk (the agency has some risk of experiencing fiscal distress), and “High” demonstrates high risk (the agency has significant risk of experiencing fiscal distress).

Based on the comparative year–to–year data in Table 4, the State Auditor determined that residents of Montclair would experience the continuation of FY 2025-26 City of Montclair Preliminary Budget Page 12 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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essential services such as fire, police, road maintenance and parks. However, the dashboard suggested Montclair may need to increase revenue or reduce services or other expenses in order to deal with a major economic event, such as a recession.

Table 4
California State Auditor
City of Montclair Comparison of Fiscal Risk Rankings
Fiscal Year 2019–20 to Fiscal Year 2020–21
Liquidity Debt
Burden
General
Fund
Reserve
Revenue
Trends
Pension
Obligation
Pension
Funding
Pension
Costs
Future
Pension
Costs
OPEB
Obligation
OPEB
Funding
Overall
Ranking
Moderate
Improved
to
Low
High
Improved
to
Moderate
Low
Remains
at
Low
Moderate
Remains
at
Moderate
High
Remains
at
High
High
Improved
to
Moderate
High
Remains
at
High
High
Improved
to
Moderate
Low
Remains
at
Low
High
Remains
at
High
Moderate
Remains
at
Moderate
During the intervening years following release of the last State Auditor’s dashboard, Montclair continued pursuing a deliberative approach to achieve the following:
• Guarantee healthy General Fund Unassigned Reserve and Special Purpose Reserve Funds;
• Enhance tax revenues through the passage of Measure L; • Manage pension obligations through the 2021 Issue of Pension Obligation Bonds;
• Promote infrastructure improvements and address delayed maintenance through the 2021 Issue of Lease Revenue Bonds; and
• Limit Other Post–Employment Benefit (OPEB) obligations by maintaining caps on post–employment medical costs.

Together, the above deliberative efforts effectively addressed the State Auditor’s position that Montclair should increase revenue and otherwise control expenses in order to deal with any major economic event.

In using the State Auditor’s ranking criteria, City staff reconstructed the State Auditor’s local agency dashboard for the purpose of defining Montclair’s current fiscal risk ranking under the various evaluation criteria, as demonstrated in Table 5, below:

Table 5
City of Montclair Internal Fiscal Risk Rankings
Fiscal Year 2023–24 to Fiscal Year 2025–26
Liquidity Debt
Burden
General
Fund
Reserve
Revenue
Trends
Pension
Obligation
Pension
Funding
Pension
Costs
Future
Pension
Costs
OPEB
Obligation
OPEB
Funding
Overall
Ranking
Low
Maintained
at
Low
High
Improved
to
Moderate
Low
Remains
at
Low
Moderate
Improved
to
Low
High
Improved
to
Moderate
Moderate
Improved
to
Low
High
Improved
to
Moderate
Moderate
Improved
to
Low
Low
Remains
at
Low
High
Improved
to
Low
Moderate
Improved
to
Low
Even though Table 5 represents an internal evaluation of Montclair’s “Fiscal Risk Ranking,” it is useful in demonstrating the City Council's ongoing commitment to FY 2025-26 City of Montclair Preliminary Budget Page 13 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xi
not only address the myriad needs related to maintaining a vibrant community and improving infrastructure, but also to address the City's fiscal posture by lowering fiscal risk.

Establishing lower fiscal risk greatly improves the City's credit rating and ability to borrow at lower interest rates, as was the case when the City received favorable interest rates upon issuance of its 2021 Issue of Lease Revenue Bonds and 2021 Issue of Pension Obligation Bonds.

Based on available financial data, the tax revenue performance of Measure L and the annual expenditure controls related to issuance of the 2021 Issue of Pension Obligation Bonds have combined to enhance the City's ability to improve its risk profile across the board to effectively establish a Low– to Moderate–risk rating.

In relation to Montclair’s “OPEB funding,” according to the most recent City of Montclair Annual Financial Report for the Fiscal Year Ended June 30, 2024, the City’s OPEB Funding requirement has continued to decline steadily, from $12,199,974 in 2021, to $9,178,007 in 2023, to an ending balance of $8,827,534 for 2024.

The City elected to finance its OPEB on a “pay–as–you–go–basis” instead of placing OPEB funding in a Trust, where they become unavailable for general or emergency government operations; thus, the State Auditor maintained a “High” rating for the City’s OPEB obligation. However, as it turns out, decline in the City’s OPEB is evidence that the City has effectively maintained and managed the obligation over the past several decades (as indicated by the Annual Financial Report for the Fiscal Year Ended June 30, 2024 and Table 4’s “Low” rating for “OPEB Obligation”), despite the fact that the City did not place OPEB-designated funds into a restrictive Trust.

In lieu of placing OPEB funds in a Trust the City, instead, and in addition to the “pay–as–you–go–basis”, has incorporated $2 million into an OPEB Special Purpose Reserve Fund, effectively earmarking funds (similar to a Trust) for the stated purpose of demonstrating funding capacity for OPEB obligations. City staff is committed to increasing the OPEB Special Purpose Reserve Fund as funding is available.

Though Government Accounting Standard Board's (GASB's) Statement 75 recommends securing OPEB funds in a Trust; the City has determined that assigning liability for OPEBs to the Appropriations Budget on a “pay–as–you–go– basis” provides an effective means for managing the liability, and is reflective of the City’s normal business practice to annually budget for required appropriations.

To support the City’s fiscal operations, the City Council is reminded that, collectively, the General Operating Fund Unassigned Reserve Fund and Special Purpose Reserve Funds function as unscheduled funding sources for a variety of non–programmed appropriations including liability claims, workers' compensation claims and Unemployment Benefit claims.

The Unassigned Reserve Fund also serves as a self–insured retention (SIR) fund.

The SIR is a pre–determined maximum obligation limit the City is responsible for covering on each settled claim approved, or ordered for payment, by the City's FY 2025-26 City of Montclair Preliminary Budget Page 14 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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insurance provider. Under current policy provisions with the California Insurance Pool Authority (CIPA), the City is liable for the first $500,000 in liability coverage per claim. Draw-downs on reserve funds will ultimately be reflected in end-of-year reserve fund balances.

SECTION II. DEBT SERVICE ON BONDS
Debt Service Funds:

Over the past decade, the City Council has used debt service (see discussion, below) as a fiduciary tool to (i) promote operational excellence, (ii) continue responsible fiscal management, and (iii) facilitate infrastructure improvements throughout the community.

With minor variations year–over–year, these debt service obligations include the following:
• Approximately $2,591,513 annually for debt service on the 2014 Issue of Lease Revenue Bonds–with maturity in 2045;
• Approximately $2,395,863 annually for debt service on the 2021 Issue of Lease Revenue Bonds, with maturity through 2051; and
• Approximately $4,438,996 annually for debt service on the 2021 Issue of Pension Obligation Bonds, with maturity through 2041.

Together, the use of bonds has resulted in the annual commitment of General Fund Revenue as follows:
• Approximately $9,426,372 in General Fund Revenue to debt service obligations into Fiscal Year 2041–42, at which time debt service on the 2021 Issue of Pension Obligation Bonds will have matured. • Thereafter annual debt service on the remaining two bonds will be approximately $4,987,376 into Fiscal Year 2045–46, at which time debt service on the 2014 Issue of Lease Revenue Bonds will have matured. • Thereafter, annual debt service on the remaining 2021 Issue of Lease Revenue Bonds will be approximately $2,395,863 until maturity in Fiscal Year 2051–52.

The preceding allocation commitments are based on the presumption that the issue of bonds identified above have not been subject to refunding/refinancing, or otherwise achieve bond defeasance before bond maturity.

At each stage of completion of debt service on the above bonds, that portion of funds committed to debt service will be restored to the General Fund for general government operations, or be available for refinancing of any new issue of bonds, as determined by the then elected governing body of the City of Montclair.

FY 2025-26 City of Montclair Preliminary Budget Page 15 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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➢ 2014 Issue of Lease Revenue Bonds:

In November 2014, the City completed refinancing of its 2005 Issue of Lease Revenue Bonds through issuance of the 2014 Issue of Lease Revenue Bonds.

Refinancing the 2005 Issue allowed the City to take advantage of lower bond rates and produce capital for critical infrastructure projects. Refinancing allowed the City to retire the 2005 Issue of Lease Revenue Bonds and provided $22,083,979 in new bond fund resources for critical public works/infrastructure improvements.

Concurrent to establishing the Debt Service Fund for the 2014 Issue of Lease Revenue Bonds, the City Council made the decision to annually allocate approximately $2.6 million toward debt service for the 2014 Issue, including approximately $1.9 million± in General Fund Revenue and $750,000± in residual redevelopment revenue—representing the City's share of annual property tax increment distribution derived from the former Montclair Redevelopment Agency (the "RDA").

In Fiscal Year 2021–22, and in consideration of the improved overall projected health of the General Fund Revenue Budget, the City Council adopted a proposal from the City Manager to alter the funding structure for the 2014 Issue of Lease Revenue Bonds Debt Service Fund to reflect a general allocation of General Fund Revenue for annual bond payments, and remove the commitment of residual redevelopment property tax revenue to the Debt Service Fund for that purpose.

This adopted action increased the capacity of the Economic Development Agency Assets Fund (EDAAF) to finance Economic Development operations, acquire real property, and enhance the City's ability to support the Montclair Housing Authority and Montclair Housing Corporation, and the commitment of those entities to affordable housing programs.

The Fiscal Year 2025–26 proposed allocation to the 2014 Issue of Lease Revenue Bonds Debt Service Fund is $2,591,513—a sum sufficient to service debt on the 2014 Issue of Lease Revenue Bonds for Fiscal Year 2025–26.

Committing General Fund Revenue for debt service provides assurance to credit raters and bond holders of the City's fiscal capacity to meet its debt service obligations. Meeting debt service obligations with a commitment of funding is essential to maintaining and improving the City's bond rating, which in turn improves the City's creditworthiness, facilitates lower interest rates on future bond issues, and helps achieve lower fiscal risk.

Annually allocating General Fund Revenue to a separate Debt Service Fund, as outlined herein, effectively removes debt service for the 2014 Issue of Lease Revenue Bonds as an obligation of the General Fund Operating Budget. It is important to realize, however, that annual debt payment on the 2014 Issue of Lease Revenue Bonds continues to remain an obligation of the Total Operating Budget.

Segregating General Fund Revenue for annual debt service on the 2014 Issue of Lease Revenue Bonds should continue until the 2014 Issue of Lease Revenue Bonds FY 2025-26 City of Montclair Preliminary Budget Page 16 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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matures. The current year of maturity for the 2014 Issue of Lease Revenue Bonds is 2045.

The 2014 Issue of Lease Revenue Bonds became subject to refinancing in calendar year 2024. City staff recommends that the City Council only consider refinancing of the 2014 Issue of Lease Revenue Bonds under the following circumstances:
• Available interest rates at the time of refinancing would produce a lower annual repayment, and there is no net monetized increase to total debt service on the bonds—current refinancing rates exceed existing bond rates; and
• The City Council elects to refinance the 2014 Issue to finance a new series of infrastructure projects.
➢ 2021 Issue of Lease Revenue Bonds:

On September 20, 2021, the City Council adopted Resolution No. 21–20, approving the issuance of lease revenue bonds for public works/infrastructure projects. Issuance of the 2021 Issue of Lease Revenue Bonds provided $47,562,919 in new bond fund resources for critical public works/infrastructure improvements.

Concurrent to establishing the Debt Service Fund for the 2021 Issue of Lease Revenue Bonds, the City Council, at its meeting of September 20, 2021, directed City staff to annually allocate approximately $2.6 million in General Fund Revenue for payment on the 2021 Lease Revenue Bonds.

The Fiscal Year 2025–26 proposed allocation to the 2021 Lease Revenue Bond Debt Service Fund for debt service payment is $2,395,863. The current year of maturity for the 2021 Issue of Lease Revenue Bonds is 2051.

As indicated in Table 6, below, 2021 Issue of Lease Revenue Bond projects approved by the City Council represent a wide variety of targeted infrastructure improvements including the continuation of street pavement projects, rehabilitation of parks, improving safety along routes to schools, and a variety of facility improvements.

Projects listed in Table 6 were presented to the City Council for consideration at the September 20, 2021, City Council meeting, and were incorporated into the operating statement for the 2021 Issue of Lease Revenue Bonds. In addition, an update on listed projects was presented at an April 1, 2024, City Council workshop. The list of projects is subject to revision to address evolving needs of the City. For example, incorporated into the list is an allocation of $2 million to partially fund the City’s obligation to join the Animal Resources Center (ARC), a JPA founded jointly by the cities of Ontario, Chino, Chino Hills, and Montclair.

Animal control services provided through the ARC will also be provided to the west end unincorporated area of San Bernardino County.

Project costs identified in Table 6 exceed the availability of funds provided through the 2021 Issue of Lease Revenue Bonds; however, City staff has secured a number of grants to augment projects costs and continue working on securing additional grants. In addition, some projects on the list may not be achieved with FY 2025-26 City of Montclair Preliminary Budget Page 17 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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2021 Lease Revenue Bonds. Other projects will be subject to revision to accommodate scheduling, or their respective costs may be offset by other available funding. Updates on projects funded with 2021 Issue of Lease Revenue Bonds will be presented to the City Council on a periodic basis.

Table 6
2021 Issue of Lease Revenue Bonds Projects
Project Description Estimated
Construction Cost
Estimated Design Cost Right of Way
Acquisition Cost
Project Management
Cost
Median/Street
Improvements
Arrow Highway
Benson Avenue
Central Avenue
Holt Boulevard
Mills Avenue
Mission Boulevard
Monte Vista Avenue
Palo Verde Street
Richton Street
Moreno Street
Alleyways–Citywide
$28,675,000 $400,000 $5,900,000 $1,800,000
Parks
Eleven City–owned
parks
$13,100,000 $450,000 $0 $250,000
Infrastructure
Broadband
Central Avenue
Bridge
Fire Station 152
Public Parking
Garage
San Antonio Creek
Trail
Systemic Street
Analysis/
Safe Routes to
Schools
$55,300,000 $1,720,000 $1,000,000 $1,500,000
Other
Animal Resources
Center Capital
$1,600,000 $0 $0 $0
TOTALS $98,675,000 $2,570,000 $6,900,000 $3,550,000
TOTAL COMBINED: $111,695,000
Refinancing of the 2021 Issue of Lease Revenue Bonds is not available any earlier than November 2031. City staff recommends that refinancing be considered only under the following circumstances:
• Available interest rates at the time of refinancing would produce a lower annual repayment, and there is no net monetized increase to total debt service on the bonds—current refinancing rates exceed existing bond rates; and
• The City Council elects to refinance the 2021 Issue to finance a new series of infrastructure projects.

Committing General Fund Revenues for debt service provides assurance to credit raters and bond holders of the City's fiscal capacity to meet its debt service obligations. Meeting debt service obligations with a commitment of funding is essential to maintaining and improving the City's bond rating, which in turn improves the City's creditworthiness, facilitates access to lower interest rates on future bond issues, and helps achieve lower fiscal risk.

FY 2025-26 City of Montclair Preliminary Budget Page 18 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Annually allocating General Fund Revenue to a separate Debt Service Fund, as outlined herein, effectively removes debt service for the 2021 Issue of Lease Revenue Bonds as an obligation of the General Fund Operating Budget. It is important to realize, however, that annual debt payment on the 2021 Issue of Lease Revenue Bonds continues to remain an obligation of the Total Operating Budget.

Typically, Lease Revenue Bonds must be spent within five–years of the issuance date; however, working with bond counsel, City staff has identified alternative mechanisms for investing and holding residual bond funds for an extended period, ensuring that the capacity to use the funds into the future remains a viable option. This capacity to retain residual funds enhances the City’s ability to secure state and federal grants and, to the extent possible, use the 2021 Issue of Lease Revenue Bonds as a matching source. Combining grants and bond funds has greatly enhanced the City’s capacity to pursue many more infrastructure projects than could otherwise be achieved by use of just City-obligated bond funds. ➢ 2021 Issue of Pension Obligation Bonds:

On September 20, 2021, the City Council adopted Resolution No. 21–3321, approving the issuance of pension obligation bonds (POBs) and transferring debt from the City's California Public Employees' Pension System (CalPERS) Unfunded Accrued Liability (UAL) account to the POB—the UAL is a debt owed to CalPERS for pension liabilities that are not paid for either by CalPERS investments or through the normal cost rate payments made by employees and employers. CalPERS assigns UAL based on each agency's respective, unfunded pension liabilities. The value of the City's 2021 Issue of Pension Obligation Bonds was $62,190,000.

The Fiscal Year 2025–26 proposed allocation to the 2021 Issue of Pension Obligation Bonds Debt Service Fund for debt service payment is $4,438,996. The current year of maturity for the 2021 Pension Obligation Bonds is 2041.

Refinancing of the 2021 Issue of Pension Obligation Bonds is not available any earlier than November 2031. City staff recommends that refinancing be considered only under the following circumstances:
• Available interest rates at the time of refinancing would produce a lower annual repayment, and there is no net monetized increase to total debt service on the bonds—current refinancing rates exceed existing bond rates; and
• The City Council elects to refinance the 2021 Issue of Pension Obligation bonds to finance any unanticipated, significant increase in the UAL.

Committing General Fund Revenues for debt service provides assurance to credit raters and bond holders of the City's fiscal capacity to meet its debt service obligations. Meeting debt service obligations with a commitment of funding is essential to maintaining and improving the City's bond rating, which in turn improves the City's creditworthiness, facilitates access to lower interest rates on future bond issues, and helps achieve lower fiscal risk.

Annually allocating General Fund Revenue to a separate Debt Service Fund, as outlined herein, effectively removes debt service for the 2021 Issue of Pension FY 2025-26 City of Montclair Preliminary Budget Page 19 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Obligation Bonds as an obligation of the General Fund Operating Budget. It is important to realize, however, that annual debt payment on the 2021 Issue of Pension Obligation Bonds continues to remain an obligation of the Total Operating Budget.

Through the issuance of POBs, Montclair achieved the following:
• Improved its control over the level of annual payments required for UAL debt service;
• Enhanced local capacity to plan for the City's pension expenses for budgeting purposes, while concurrently producing short– and long–term savings vis–à–vis annual UAL payments to CalPERS; and
• Expanded the City's capacity to maintain and improve services, programs, working conditions, and the City's fiscal profile.

The City Council also adopted a Pension Policy that endorsed creation of a UAL/POB Amortization Fund to address any new UAL while the POBs remain outstanding. As adopted, the UAL/POBAF uses the Fiscal Year 2021–22 CalPERS UAL payment of $5,761,184 as its base year for defining UAL payments, minus the 2023 POB Debt Service payment of $4,342,705 to establish a minimum annual General Fund contribution to the UAL/POBAF.

Pursuant to City Council policy established with adoption of the Fiscal Year 2022– 23 Operating Budget, the UAL/POBAF will be used over the twenty–year POB payment cycle to achieve the following objectives:
• Annually service any new growth in the UAL;
• Reduce the amortization period on the POBs by paying off the bonds early; and/or
• Further reduce accruing interest that adds to the base UAL.

The 2021 Issue of Pension Obligation Bonds has greatly assisted the City in controlling unfunded pension liabilities; however, normal cost increases and new unfunded liabilities continue to accrue on an annual basis—increases that are projected to continue over the next fifteen to twenty years when lower pension costs related to PEPRA’s reduced pension formulas (2.7% @ 57 for public safety members and 2% @ 62 for miscellaneous members, both at three–year final compensation for calculating retiree annuities) for employees hired on or after January 1, 2013, dominate CalPERS’ active and annuitant participants. Strategic budget planning for known (and unknown) cost increases related to CalPERS’ normal and unfunded cost rates is essential to the City's long–term fiscal health and avoidance of penalties related to any inability to meet payment obligations.

While changes made to public employee pension formulas under PEPRA are considered important long–term pension reform features, an analysis of PEPRA impacts indicates that PEPRA has created shortfalls in CalPERS’ unfunded pension liabilities—in part because of diminished normal rate employer contributions under reduced formulas.

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Other PEPRA–related forms, including caps on retirement earnings and averaging final compensation over three years will reduce long–term costs and future unfunded liabilities over the next twenty years, but will have little impact on current unfunded liabilities for the near future.

The City Council’s decision to issue the 2021 Issue of Pension Obligation Bonds, was the correct decision because it provides the City the ability to control the interest on new, unfunded liabilities, and pay off those accruing liabilities on an annual basis without the accumulation of interest. Annual payments on the 2021 Issue of Lease Revenue Bonds are capped, at a lower interest rate, allowing the City the ability to pay down the accrued unfunded liability over twenty years, while providing potential capacity to pay off new unfunded liabilities, without accumulating interest, on an annual basis.

In order to provide for covering unanticipated increases in the UAL the City Council, in Fiscal Year 2021–22, established the UAL/POB Amortization Fund (UAL/POBAF), a Special Purpose Reserve Fund established as part of the City Council's adopted Pension Policy. The fund incorporates funds set aside pursuant to the following formula:
• The UAL/POBAF uses the Fiscal Year 2021–22 CalPERS UAL payment of $5,761,184 as its base year for defining UAL payments, minus the 2023 POB Debt Service payment of $4,342,705 to establish a minimum annual General Fund contribution of $1,418,479, deposited annually into the UAL/POBAF.
• The UAL/POBAF will, in turn, be used over the twenty–year POB maturity period to achieve the following objectives:
o Annually service any new growth in the UAL;
o Reduce the amortization period on the POB by paying off the bonds early; and/or;
o Further reduce accruing interest that adds to the base UAL.

The $3.1 million allocated to the UAL/POBAF for Fiscal Year 2025–26 represents current funding status pursuant to the UAL/POBAF Pension Policy. The City Council is advised, however, that, for the near future, the UAL/POBAF will likely require an additional fusion of General Fund Revenue annually to keep up with the growing pace of UAL increases stemming from losses and projected losses sustained by CalPERS related to the Fund’s investment portfolio. For Fiscal Year 2025–26, City staff projects the UAL/POBAF will require a payment of $2.4 million, followed by a projected, adjusted payment of $3.6 million in Fiscal Year 2026– 27—both payment estimates demonstrate significant and successive year-overyear increases. The City Council should expect successive, annual UAL increases at least through 2030.

FY 2025-26 City of Montclair Preliminary Budget Page 21 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Section III. GENERAL OPERATING FUND UNASSIGNED RESERVES FUND ➢ Achieving A Healthy General Operating Fund Unassigned Reserves Fund Ratio
The General Operating Fund is the City's primary funding source for day–to–day general government operations, services and supplies costs, personnel expenditures and capital improvement projects. It is, therefore, imperative that the General Operating Fund be managed with the highest standard of adherence to fiduciary responsibilities—a duty that includes maintaining unrestricted cash to sustain the organization on a day–to–day basis. In support of that high fiduciary standard, City staff continue to address a primary City Council objective: Maintain the General Operating Fund Unassigned Reserves Fund Balance at a healthy level for local government operations. The minimum “healthy level” standard recommended by GFOA is no less than 25 percent of the General Operating Fund Budget; i.e., the "General Operating Fund Reserve Ratio" or "Reserve Ratio".

As discussed above under "Managing Fiscal Risk", starting on page “ix”, City staff also recognize that GFOA and the California State Auditor’s Office recommend a 50 percent General Fund Unassigned Reserve ratio as the ideal threshold, vis–a– vis the General Operating Fund Appropriations Budget. Long-term, City staff will continue to work toward this larger, GFOA–recommended 50 percent reserve target for Montclair’s General Operating Fund Unassigned Reserves Fund.

In recent years, achieving a 25 percent Reserve Ratio proved difficult in the face of increasing personnel-related costs, driven primarily by significant annual increases to the City’s CalPERS UAL and employer contribution rates.

Table 7, below, compares the current fiscal year General Operating Fund Unassigned Reserves Fund Balance (Fiscal Year 2025–26) with that of the previous seven fiscal years.

As indicated in Table 7, as of June 30, 2026, the Fiscal Year 2025–26 General Operating Fund’s Unassigned Reserves Fund Balance estimate of $6,540,554 is projected to be approximately 16.55 percent of proposed General Fund Operating Appropriations—$39,524,482.

Table 7 shows that over the past eight fiscal years, inclusive of Fiscal Year 2025– 26, the Reserve Ratio has fluctuated with a low of 16.55 percent and a high of

22.82 percent.

Changes in the General Operating Fund’s Unassigned Reserve Balance are generally attributed to the following fiscal–related factors:
• A difference in General Fund Operating Appropriations between consecutive years—this general category reflects all expenditure categories including, but not limited to, personnel-related expenditures, services and supplies, capital outlay, and citywide costs; • Funding debt service funds that require adequate funding for annual payments:

FY 2025-26 City of Montclair Preliminary Budget Page 22 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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o 2021 Issue of Lease Revenue Bonds Debt Service Fund ─ funded with a transfer of monies from the General Fund Revenue Budget; o 2021 Issue of Pension Obligation Bonds Debt Service Fund ─ funded with a reallocation of General Fund Revenue previously committed to annual UAL payments; and
o UAL/POB Amortization Fund ─ funded with General Fund Revenue to address any new UAL growth in pension obligations.
• Adjustments to balances in Special Purpose Reserve Funds to address a variety of issues including, but are not limited to, the following:
o New equipment purchases;
o Evolving obligations to a variety of programs;
o Unanticipated personnel- and pension-related costs;
o Self–insurance retention liabilities stemming from litigation. • Funding allocations to the Economic Development Agency Assets Fund for real property acquisition and other operational responsibilities of the Montclair Economic Development Agency.

For Fiscal Year 2025-26, changes in the General Operating Fund’s Unassigned Reserve Balance are directly attributed to the following:
• Revenue earnings for Fiscal Year 2024-25 underperformed, requiring use of Unassigned Reserve Funds to maintain a balanced budget for Fiscal Year 2024–25, lowering the projected end-of-year allocation into the Unassigned Reserve Fund.
• Projected carryover of unspent revenue from Fiscal Year 2023-24 did not materialize; and
• Unanticipated liability claims, workers' compensation claims and Unemployment Benefit claims required a draw-down on the Unassigned Reserve Fund.

Table 7
General Operating Fund’s Unassigned Reserve Fund Balance Fiscal
Year
Operating
Fund Balance
Operating
Appropriations Percentage
Estimated 2025-26 $6,540,554 $39,524,382 16.55%
2024-25 $8,600,000 $37,693,425 22.82%
2023-24 $8,000,000 $35,641,007 22.46%
2022-23 $7,264,297 $32,591,823 22.29%
2021-22 $8,000,000 $32,064,243 24.95%
2020-21 $5,750,543 $28,730,780 20.02%
2019-20 $6,157,935 $30,786,656 20.00%
2018-19 $6,201,691 $30,013,635 20.66%
FY 2025-26 City of Montclair Preliminary Budget Page 23 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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➢ Maintaining a Healthy General Fund Operating Fund Unassigned Reserve Fund Balance.

In recent years, the City’s ability to maintain a relatively healthy General Fund Operating Fund Unassigned Reserve Fund Balance has been accomplished through commitment to the following coordinated objectives:
• Fiscal restraint achieved by implementation of sound economic policies and practices. The City Council and management team continue maintaining vigilance over all aspects of the budget process, carefully considering each expenditure request for personnel, services and supplies, capital outlay, equipment replacement, facility and infrastructure maintenance, and travel.
• Evaluating the distribution of personnel–related costs between the General Operating Fund, other City entities (Successor Agency) and other City Funds (Sewer Fund, Grant Funds, etc.). City staff annually review and redistribute percentages of shared personnel, services and supplies, and capital costs between the General Fund and other City Funds and grants capable of supporting re–assigned expenditure demands. • Maintaining an appropriate employee ratio. Over the past nineteen years the City experienced significant fluctuations in the numbers of personnel— fluctuations due primarily to fiscal decline related to the Mortgage Crisis and Great Recession of 2006 to 2009, the economic downturn related to the COVID–19 pandemic and, presently, uncertainty in the national and global economy created by the economic policies of the federal administration.

Over these past nineteen years, personnel totals declined from a high of 231 full–time employees in Fiscal Year 2007–08 to 172 full–time employees in 2017–18, but rebounded in recent years, climbing gradually to a recommended 204 full–time funded positions for the Fiscal Year 2025–26 Proposed Operating Budget.

The Fiscal Year 2025–26 Budget does incorporate temporary freezes on designated vacant positions—freezes that will remain in place until the City staff can identify economic improvements to General Fund Revenue earnings. The Proposed Budget also incorporates a number of personnel reorganization changes designed to equip the organization with the capacity to provide for succession, promote operational efficiencies, and better serve the public. The Fiscal Year 2025–26 Budget does not include, nor does it anticipate the layoff of any current employees. Personnel related reorganization impacts are discussed in SECTION VII. PERSONNEL SERVICES. Personnel Adjustments – Reorganization Element, starting on page xlii of this Budget Message.
• Require employees to pay a portion of the California Public Employee Retirement System (CalPERS) Member Contribution. Starting in 2009, the City Council impacted personnel–related costs by directing that employees pay a portion of their individual CalPERS Member contributions.

FY 2025-26 City of Montclair Preliminary Budget Page 24 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Employee–paid member contribution requirements now cover all full–time City employees and vary in contribution rates based on the following:
o Each employee’s pension formula;
o Employee group representation; and
o Pension status with CalPERS—this latter component is based on whether an employee is a classic member (a CalPERS member hired before January 1, 2013) or a post–classic member covered under the Public Employee Pension Reform Act (PEPRA) of 2012—PEPRA affects employees hired on or after January 1, 2013, and mandates what the employee contribution rate will be from year-to-year. • Implementation of revenue enhancement measures.
o Measure L. In November 2022, the City Council asked Montclair voters to enact Measure L, a District tax that authorized a 1 percent transactions and use tax on qualifying purchases. Measure L is projected to generate approximately $10.76 million in sales tax revenue in Fiscal Year 2025–26. Tax revenue generated by Measure L is used to fund general government operations funded by the General Fund, including approximately $2,591,513 for annual debt service on the 2021 Issue of Lease Revenue Bonds which, in turn, is used to provide for a number of public works/infrastructure improvement projects in Montclair.
o Commercial Cannabis Businesses. In Fiscal Year 2025–26, the City Council will be asked to consider adoption of a revenue raising ordinance for commercial cannabis activities. In 2022, Montclair voters approved a sales tax measure of up to 7 percent on the sale of commercial cannabis products in Montclair. Initial projections suggest that implementation of a commercial cannabis licensing program could generate in excess of $2 million in annual General Fund tax revenue for the City.
o Community Facilities Districts. With each new housing development, the City Council has directed creating Community Facilities Districts (CFDs) to generate funds to offset the cost of public safety and public works services generated by new residential development.

The City Manager will continue to evaluate for, and, when appropriate, present for City Council consideration, additional measures designed to enhance Montclair’s revenue profile.

FY 2025-26 City of Montclair Preliminary Budget Page 25 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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SECTION IV. GENERAL OPERATING FUND SPECIAL PURPOSE RESERVE FUNDS ➢ Special Purpose Reserve Funds
The Fiscal Year 2025–26 Budget, as proposed, maintains Special Purpose Reserve Funds to ensure long–term resiliency, fund extraordinary expenses, and facilitate maintenance of annual balanced budgets.

Prudent planning by the City Council and City staff has allowed Montclair to set aside a portion of the General Operating Fund’s Reserve Funds into Special Purpose Reserve Funds, including for specified and potential liabilities, equipment replacement, and City–facilities infrastructure repairs. The City Council's commitment to set aside and accrue funding for future liabilities, long–term planning, and extraordinary programs and projects minimizes the direct impact to annual General Operating Fund Budgets when Special Purpose Reserve Funds are available for eligible expenditures.

It is important to realize that Special Purpose Reserve Funds are not specifically tied to recurring revenue sources, and are refunded only through an allocation of funds from designated revenue sources, when available; therefore, Special Purpose Reserve Funds may show fluctuations from year–to–year, and should not be considered as revenue sources to meet recurring operating obligations.

For Fiscal Year 2025–26, Special Purpose Reserve Funds are set aside for the following purposes:
▪ Meet unbudgeted needs that fall under each specific, Special Purpose Reserve Fund category;
▪ Relieve the General Fund Operating Budget during times of fiscal stress;
▪ Establish an economic means to address extraordinary
liabilities;
▪ Plan for projected capital projects;
▪ Meet extraordinary expenses for long–term programs and projects;
▪ Provide a source of funds for emergencies;
▪ Ensure liquidity over extended periods; and
▪ Provide for the economic progress of the City.

Special Purpose Reserve Funds also contribute to the City's interest–earning investment portfolio. Interest earnings on Special Purpose Reserve Fund investments are allocated to the City's General Fund for General Government operations.

FY 2025-26 City of Montclair Preliminary Budget Page 26 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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For Fiscal Year 2025–26, the estimated portion of the General Revenue Fund Reserve Fund Equity representing reserves for Special Purposes is $31,936,097.

The following Special Purpose Reserve Funds are components of the General Fund's Reserves:
• Equipment Replacement Reserve—$2.41 million. This fund is utilized for the purchase of major equipment/rolling stock.

The proposed Fiscal Year 2025–26 General Operating Fund Budget contains a number of Equipment Replacement Reserve withdrawals for designated Departments, and incorporates a transfer of General Fund Revenue into the Equipment Replacement Reserve to replenish the fund for future and ongoing purchases.

How is the Equipment Replacement Reserve funded? Transfers into the Equipment Replacement Reserve have derived from two sources:
o General Fund Transfer. A General Fund transfer to bring net assets to the net funding requirement; and
o Proposition 172 Transfer. Transfers from the City’s annual Proposition 172/SB 509 allocation to partially fund eligible heavy rolling stock for public safety—Proposition 172 allocations to the Equipment Replacement Reserve have not occurred since Fiscal Year Fiscal Year 2015–16. Instead, this funding source has been used to support services and capital purchases within the respective Public Safety programs, leaving the General Fund as the primary, if not sole source for sustaining the Equipment Replacement Reserve for public safety equipment as well as for the equipment and vehicle requirements for all City Departments.

What is Proposition 172/SB 509? In 1998, California voters approved Proposition 98, a state constitutional amendment establishing an annual minimum, guaranteed funding level for K–14 education. The Proposition 98 funding guarantee comes from a combination of state General Fund revenue and local property taxes—the latter dedicated to the state’s Education Revenue Augmentation Fund (ERAF).

The ERAF was created by the state Legislature in 1992 to relieve pressure on the state’s General Fund while meeting the Proposition 98 minimum funding guarantee for K–14 education. The ERAF statute redirects a portion of property taxes from cities, counties and special districts to local school districts and community college districts, reducing demands on the state’s General Fund. When local ERAF revenue is more than enough to offset General Fund moneys for education, it creates “excess ERAF”, some of which would go to specific special education programs, with the remainder allocated back to the counties, cities, and special districts. There is no City record demonstrating that, to date, Montclair has received an “excess ERAF” allocation.

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Concurrent with the 1992 creation of ERAF, the state Legislature, in order to cushion the impact of ERAF property tax shifts, adopted a ½ cent sales and use tax (SB 509) dedicated to local public safety including sheriff, police, fire, county district attorneys, and corrections. In November 1993 California voters enacted Proposition 172, making the local public safety sales and use tax permanent. The purpose of Proposition 172 was not necessarily to increase public safety funding, but to maintain public safety funding levels in spite of ERAF property tax shifts. Each year, California cities are allocated a prorated share of Proposition 172 sales taxes. • Self–Insurance Retentions—$1.6 million. This fund was established to address City–related self–insurance retention liabilities. Annual withdrawals from Self–Insurance Retentions depend on litigation expenses, self–insured coverage requirements, and repair costs related to equipment/vehicles not covered by general liability insurance. The City regularly anticipates potential, significant costs to Self–Insurance Retentions due to ongoing and new litigation–related liabilities, worker's compensation claims generally related to public safety personnel, and liability exposure related to personnel claims.
• Technology Enhancements—$692,519. This Special Purpose Reserve is used to fund unanticipated and planned major technology upgrades including building and cybersecurity upgrades. Cybersecurity has become a central issue for businesses and governments as evidenced by recent major security breaches in private, federal, state and local government organizations. In 2023, for example, a security breach at the San Bernardino County Sheriff’s Department disrupted operations for approximately four weeks and required payment of a reported $1.1 million ransom to a hacker who uploaded malware to the Sheriff’s Department’s computer system. In a ransomware attack, data on a system is encrypted, leaving it inaccessible to the hacked entity. Cybersecurity is also essential to the evaluation process for bonds and credit ratings. Credit rating firms, such as Fitch Ratings, require comprehensive cybersecurity policies and coverage before issuing bond and credit ratings. The City of Montclair maintains and regularly updates its Cybersecurity Policies. • CalPERS' Unanticipated Normal Costs—$3.5 million. The 2021 Issue of Pension Obligation Bonds has greatly assisted the City in controlling unfunded pension liabilities. Normal cost increases and new unfunded liabilities, however, will continue to accrue on an annual basis over the next 15 to 20 years when lower pension costs related to the Public Employees’ Pension Reform Act’s (PEPRA’s) reduced pension formulas [2.7% @ 57 for public safety members and 2% @ 62 for miscellaneous members, both at three–year final compensation for calculating retiree annuities] for employees hired on or after January 1, 2013, fully dominate CalPERS’ active–class of members and begin dominating the inactive–class of annuitants. Strategic budget planning for known (and unknown) cost increases related to CalPERS’ normal and unfunded cost rates is essential to the City's long–term fiscal health and avoidance of penalties related to any inability to meet payment obligations.

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While changes made to public employee pension formulas under PEPRA are considered important long–term pension reform features, an analysis of PEPRA impacts indicates that PEPRA may have created shortfalls in CalPERS’ unfunded pension liabilities—in major part due to diminished normal rate employer contributions under reduced formulas. This factor raises concern that when active PEPRA employees achieve retirement, the pension system will continue to lack capacity to meet its long–term obligations without pushing costs onto member agencies.

Various actuary studies estimate CalPERS’ unfunded pension liabilities between $180 billion to $583 billion. As indicated in Chart 1, below, which represents the most recent available data from CalPERS, CalPERS’ states its net position, after payments stands at an estimated $506.6 billion.

Chart 1
Chart 2, below, demonstrates that, as of June 30, 2024, the fund’s UAL is estimated at $168 billion, placing total liabilities at an estimated $675 billion.

Chart 2
FY 2025-26 City of Montclair Preliminary Budget Page 29 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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Chart 3, below, shows that the funded status for CalPERS’ public agencies is 72.3 percent.

Chart 3
To reduce debt, CalPERS began to invest in private markets, a strategy that carries significant risks. Investing in private markets involves owning non– publicly traded assets such as private loans, real estate and private equity and venture capital business. Private investments are sold as a way to generate returns higher than the public market, with the offer of greater diversification. CalPERS’ objective has been to make private markets 40% of its portfolio. The trend towards private investment has been a common strategy among public employee pension plans, nationwide.

As discussed under SECTION VIII. ISSUES AND FACTORS DIRECTLY AND

INDIRECTLY AFFECTING THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY, attached as a supplemental section to this Budget Message, following the announcement of “reciprocal” tariffs private markets have been experiencing and forecasting steep losses in private capital and fixed income assets. Private equity thrives on the profitability of its portfolio companies, many of which are now grappling with trade– disrupted supply chains and shrinking global demand. An estimated 58% of public employee pension fund assets are invested in non–public equities—including private capital, real estate, and commodities. This exposure, under present market conditions, has created significant liability for public employee pension funds. Fixed income, which has also served as a dependable refuge of pension portfolios, is also seeing tariff–driven erosion of its returns.

In addition to recent losses in private markets, CalPERS’ assumed rate of earnings on investments has consistently underperformed, pushing rising liability costs onto member agencies. This factor, coupled with CalPERS’ high–valued “classic” pension formulas for public safety members, resulted in fund assets that continue to fall well below total liabilities.

Through bond funding of pension liabilities, Montclair reduced the impact of CalPERS’ assumed rate of earnings by pegging future increases in Montclair’s unfunded pension liabilities closer to CalPERS’ actual rate of earnings—this allowed the City to stabilize the annual cost of payment on the unfunded liability, and reduced excess growth of Montclair’s unfunded liability by effectively eliminating the difference between CalPERS’ actual and assumed rate of earnings. Thus, the City’s annual payment on the FY 2025-26 City of Montclair Preliminary Budget Page 30 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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2021 Issue of Pension Obligation Bonds has been stabilized, allowing Montclair to meet its annual obligation on the 2021 Issue of Pension Obligation Bonds and any new, annual unfunded liabilities.

Other PEPRA–related reforms, including caps on retirement earnings and averaging final compensation over three years will further reduce long– term costs and future unfunded liabilities over the next twenty years.

The City Council’s decision, then, to issue the 2021 Issue of Pension Obligation Bonds, was correct because it provides the City the ability to control the interest on new, unfunded liabilities, and pay off those accruing liabilities on an annual basis without the accumulation of added interest above the bond rate.
• Other Post Employee Benefits (OPEBs)/Retiree Medical Liability Reserve Fund—$2 million. Excluding public employee pension benefits, OPEBs are the benefits that an employee may receive from the City upon retirement. These benefits are based on specific provisions in the respective labor agreement the employee retired under, and may include health/life–related benefits; disability–related benefits that are not part of a pension plan; or long–term health care benefits.

The prevalent OPEB for Montclair retirees is health insurance, generally provided as part of the City's group plans. It is noted, however, that portability is now a feature of memorandums of understanding, allowing those retirees eligible for portability to leave group plan coverage areas and still receive the retiree medical benefit.

Available plans for retirees are either similar to plans offered to current employees, or represent separate plans that are specific to retirees. When a retiree enrolls in Medicare, the City–provided medical coverage is typically secondary to Medicare, with terms varying from plan–to–plan.

Since the late 1990s City staff, under City Council direction, has not increased the monthly retiree medical allowance paid to retirees of the City, and no increases are anticipated for the foreseeable future. This strict control over retiree medical costs ensures that, except for the increasing number of retirees, OPEB costs will not increase in relation to the value of the monthly allowance. However, as the City's post–employment population (retirees) increases, OPEB costs will also proportionately increase. Unlike CalPERS’ pension liability costs, however, the City has the capacity to control increases to OPEBs by restricting costs for post– employment medical benefits.

As indicated in the discussion above, under Managing Fiscal Risk on page “ix,” according to the most recent City of Montclair Annual Financial Report for the Fiscal Year Ended June 30, 2024, the City’s OPEB Funding requirement has continued to decline steadily, from $12,199,974 in 2021, to $9,178,007 in 2023, to and ending balance of $8,827,534 for 2024.

According to Governmental Accounting Standards Board (GASB) Statement No. 75, the City has a fiduciary responsibility to fund its OPEB obligation:

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This Statement requires the liability of employers and non–employer contributing entities to employees for defined benefit OPEB (net OPEB liability) to be measured as the portion of the present value of projected benefit payments to be provided to current active and inactive employees that is attributed to those employees’ past periods of service (total OPEB liability), less the amount of the OPEB plan’s fiduciary net position….The total OPEB liability generally is required to be determined through an actuarial valuation.

An OPEB liability is required to be recognized to the extent the liability is normally expected to be liquidated with expendable available financial resources. Notes to financial statements of an employer with a defined contribution plan are required to include descriptive information about the OPEB plan and benefit terms, contribution rates and how they are determined, and amounts attributed to employee service and forfeitures in the current period….

Relevant forms of financial support are contributions directly to an OPEB plan that is administered through a trust that meets the specified criteria, including benefit payments as OPEB comes due for OPEB provided through such a plan, or making benefit payments directly as the OPEB comes due in circumstances in which OPEB is provided through an OPEB plan that is not administered through a trust that meets the specified criteria….

GASB’s OPEB rules address a number of issues, including changes that affect how the long–term obligation and the annual costs of OPEBs are measured; a requirement to include in financial statements the net OPEB liability (the difference between the total OPEB liability and the value of assets set aside to make OPEB payments); and a requirement to present note disclosure and related schedules. Further, GASB opines that a government has an obligation for OPEBs that constitutes a liability for financial reporting purposes.

GASB does not specifically require that the OPEB liability of a government be funded. GASB has advised, however, that if an employer decides to fund its OPEB liabilities, in order to be considered funded in accordance with GASB the employer must transfer assets to a qualifying trust or equivalent arrangement in which OPEB assets are held in trust for the exclusive benefit of plan members. OPEB plan assets must be legally protected from creditors of the employer.

Presently, the City’s OPEB is processed on a “pay–as–you–go” basis (an allocation of funds in the annual budget), coupled with an allocation of General Fund Revenues to the Other Post Employee Benefits (OPEBs)/Retiree Medical Liability Reserve Fund Special Purpose Reserves Fund (currently $2 million).

City staff does not recommend funding a qualified OPEB Trust at this time.

As indicated above, funds deposited in a qualified OPEB trust are restricted for that purpose. Further, the City has successfully managed its OPEB obligatons.

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• Unanticipated Personnel Adjustments—$1 million. This fund is used to address unanticipated personnel–related cost adjustments; it does not, however, include unanticipated CalPERS employee rate increases discussed above under "CalPERS' Unanticipated Normal Costs" or OPEB–related costs as discussed above under "Other Post Employee Benefits (OPEB)/Retiree Medical Liability Reserve." This Special Purpose Fund may be used as a funding source for unanticipated wage/benefit increases not yet negotiated or included in the proposed Fiscal Year 2024–25 General Operating Fund Budget and other, unanticipated personnel costs. Use of this Special Purpose Fund for wage and/or benefit adjustments would create an ongoing liability to the General Fund.
• Building Maintenance—$1,944,107. This fund was established to facilitate required improvements to all City–owned facilities and related infrastructure that are not incorporated into the annual budget, or are not eligible for other available funding sources, including lease revenue bonds. • Contingency Reserve—$200,000. This fund is used for unanticipated non–personnel expenditures during each fiscal year that are not otherwise funded through other Special Purpose Reserve Funds.
• UAL/POB Amortization Fund (UAL/POBAF)—$4,030,959. This fund, established in Fiscal Year 2021–22 as part of the City Council's adopted Pension Policy, incorporates funds set aside pursuant to the following formula:
▪ The UAL/POBAF uses the Fiscal Year 2021–22 CalPERS UAL payment of $5,761,184 as its base year for defining UAL payments, minus the 2023 POB Debt Service payment of
$4,342,705 to establish a minimum annual General Fund
contribution of $1,418,479, deposited annually into the UAL/POBAF.

The UAL/POBAF will, in turn, be used over the twenty–year POB maturity period (2021 to 2041) to achieve the following objectives:
▪ Annually service any new growth in the UAL;
▪ Reduce the amortization period on the POB by paying off the bonds early; and/or
▪ Further reduce accruing interest that adds to the base UAL.

The $4,030,959 allocated to the UAL/POBAF represents proposed funding status pursuant to the UAL/POBAF Pension Policy.

For the current year (Fiscal Year 2025–26) and Fiscal Year 2026–27, CalPERS has advised that the City will see significant increases to its UAL, with payments do as follows: $2.4 million and $3.6 million, respectively.

These estimates are subject to revision based on CalPERS’ current loss experiences. Increases in the UAL can be anticipated over the next decade.

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• Public Parking Facility Development—$9,808,557. The North Montclair Downtown Specific Plan (NMDSP) provides for construction of a public parking garage on the south side of the Metrolink San Bernardino Line and future Gold Line ("L" Line) tracks, adjacent to the pedestrian underpass that leads to the Montclair Transit Center station platforms. The multi–story public parking garage, planned for construction following completion of the Village at Montclair mixed–use high–density development during Fiscal Year 2025–26, would accommodate approximately 300± vehicle parking spaces for transit and commercial users—the latter for mixed–use development projects at or near the Montclair Transit Center. The estimated project cost is $11 million, based on the following components:
▪ Purchase the land – approximately $1.7 to $2 million— acquisition of the land was completed in 2024 at a purchase price of approximately $1.7 million;
▪ Design and project management – $1 million;
▪ Construction costs – $10.5 million to $12 million, based on a construction cost of $35,000 to $40,000 per parking space.

City staff plans to submit Federal grant/Community Project Funding requests to offset public parking facility construction costs.

City staff anticipates that costs related to construction of the Transit Center–adjacent public parking facility will be fully funded in time for construction to begin in Fiscal Year 2026–27 to Fiscal Year 2028–29, with completion before arrival of the Gold Line light rail system to the Montclair Transcenter in Fiscal Year 2031–2032.

The City Council is advised that, in the event that the adjacent vacant Pep Boys Auto Service & Tires outlet becomes available for a high–density housing project, City staff will engage with the developer to determine potential options for a public–private–partnership for an expanded parking structure to serve each property: the Montclair Transit Center, the Village at Montclair, and future development at the former Pep Boys Auto Service & Tires site.
• Tariff–Recession–Inflation Fiscal Expenditure Control Account (TRIFECA)—$1 million. To guard against any fiscal concerns tied to current uncertainty regarding federal trade and other polices adversely impacting the national, state and local economies, the proposed Fiscal Year 2025–26 Budget retains $1 million in a Tariff–Recession–Inflation Fiscal Expenditure Control Account (TRIFECA) as a “shock absorber” in case of an economic slowdown and/or to address fiscal impacts that translate into services and expenditures that may cost more than estimated in Montclair’s proposed Fiscal Year 2025–26 Budget.

The TRIFECA shock absorber does not address, personnel– and compensation/benefit–related costs or un–programmed expenditures.

TRIFECA is only to be used to address unanticipated cost increases related to authorized expenditures—increases that are directly tied to tariff– recession– or inflationary–factors. All other allocations exceeding FY 2025-26 City of Montclair Preliminary Budget Page 34 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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budgeted authority would continue to require City Council consideration for additional funding at the Fiscal Year 2025–26 Midyear Budget Review, or by authorization through agenda requests asking City Council consideration for new or additional funding.
• Gold Line Betterment Reserve Fund—$1.75 million. The Gold Line Betterment Reserve Fund was established to achieve City Council directed infrastructure betterments to the Gold Line light rail corridor at Monte Vista Avenue and/or the Montclair Transcenter. The City Council will be requested to allocate additional funds to the Gold Line Betterment Reserve Fund in future years so that adequate funding capacity will be available to fund betterment–related construction improvements contiguous with construction of the Gold Line light rail system, projected to begin construction no earlier than the summer of 2026, with completion to the Montclair Transit Center in Fiscal Year 2030–2031.

Betterments are projected to include, but are not limited to, the following:
▪ Pedestrian bridge crossing between the west and east side of Monte Vista Avenue, leading directly to the proposed
Montclair Transcenter parking facility. The pedestrian bridge will be built either by the Gold Line alignment contractor or third–party contractor, and will be integral to the Gold Line light rail bridge that will cross at the same location—if constructed by the Foothill Gold Line Extension Construction Authority, or approximately 10 to 20 feet north of the
proposed Gold Line Bridge crossing if built by a third–party contactor.
▪ “Welcome to Montclair” signage and City of Montclair logo affixed to deck support girders on the north side of the Gold Line light rail bridge or pedestrian bridge if separate from the Gold Line Bridge.

Not reflected in the $1.75 million total is a $1 million allocation committed to the City by the office of Congresswoman Norma Torres through the Community Project Funding Program (CPFP). The CPFP allocation will be used to make improvements to the Montclair Transit Center compatible with the City’s collaborative work with the Foothill Gold Line Extension Construction Authority.
• Street Maintenance Fund—$1.35 million. The Street Maintenance Reserve Fund is used to provide for preventive maintenance of street assets before replacement or major rehabilitation becomes necessary. Following City Council approval of the 2014 Issue and 2021 Issue of Lease Revenue Bonds, Montclair committed to a successive series of infrastructure improvement projects costing an estimated $65 million in combined Lease Revenue Bonds. In addition, City staff has secured more than $20 million in grant funding to facilitate completion of infrastructure projects, and continues to seek additional grant funding. The Street Maintenance Program will provide for the long–term protection of infrastructure investments.

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• Homelessness–Outreach–Management & Elevation Center (HOMEC) Fund—$645,209. Included in the Fiscal Year 2025–26 Proposed Budget is an allocation of $645,209 toward establishing a Homelessness–Outreach– Management & Elevation Center (HOMEC) Fund to provide funding for homelessness advocacy and Navigation Center support services. Funds are to be administered by the Economic Development Agency in cooperation with the Community Development Department/Code Enforcement Special Operations Unit.

The County of San Bernardino, together with the cities of Montclair, Ontario, Chino, Chino Hills, Upland, Rancho Cucamonga, Fontana, Rialto and Colton are presently exploring opening a 200–bed navigation center in Fontana to serve the unhoused populations of the member agencies. San Bernardino County has agreed to commit $20 million toward transition of a warehouse in Fontana into a navigation center to house and treat unhoused persons in need of support services, including those with mental health and substance abuse issues. San Bernardino County will also commit $3 million annually toward support services and participating cities will be required to collectively contribute $3 million toward support services.

Montclair’s current, projected share of the cost is $250,000 annually.

Member agencies continue to work toward development of a ten–year Memorandum of Understanding (MOU) detailing responsibilities and commitments for each member agency.
• Animal Resources Center – Capital Fund (ARC–CF)—No Allocation. In February 2025, the Montclair City Council approved membership in the Animal Resources Center (ARC) Joint Powers Authority (JPA) for animal control and sheltering services.

Pursuant to terms of the governing JPA agreement between member agencies of the ARC, each member agency is responsible for its individual share of capital costs based on percentage of ownership. Table 8, below, details each member agency’s “percentage of ownership,” “capital contribution” and annual operational contribution, subject to change based on any additions or subtractions to ARC JPA membership:

Table 8
Animal Resources Center JPA Agency Contributions
Agency Percentage of
Ownership
Capital
Contribution
Annual
Operational
Contribution
Ontario 53% $23,850,000 $2,650,000
Chino 20% $ 9,000,000 $1,000,000
Chino Hills 15% $ 6,750,000 $ 750,000
Montclair 8% $ 3,600,000 $ 400,000
County 4% $ 1,800,000 $ 200,000
As indicated in Table 8, Montclair’s capital contribution is $3,600,000. On May 19, 2025, Montclair made a payment of $2 million to the ARC from the City’s 2021 Issue of Lease Revenue Bonds account, leaving a balance of $1.6 million payable over the next 10 years, but no later than June 30, 2035.

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For Fiscal Year 2025–26, the City Manager is not recommending an allocation of funds to the ARC–CF. Over the next decade, funds will be allocated to the ARC–CF based on funding availability.
• Economic Development Agency Assets Fund (EDAAF)—$5,882,701. The Economic Development Agency and Economic Development Agency Assets Fund (EDAAF) were established in Fiscal Year 2021–22.

Pursuant to policy direction, EDAAF funds are restricted for purposes related to economic development within the administrative jurisdiction of the City of Montclair.

Economic development activities engaged in by the Economic Development Agency may incorporate the following:
o The conduct of studies related to the economic development of Montclair, including patterns of development through the application of, and changes to, zoning and the implementation of state and federal legislation and City Council policy. The ongoing General Plan Update study is, for example, a qualifying expenditure of the EDAAF;
o Business–related financial assistance under agreements that establish clear, definitive and direct benefits to the City of Montclair; o Acquisition of land, and improvements related thereto, provided there is a direct benefit to the operations of the City of Montclair; o Practices related to the development of affordable housing; o Homeless outreach and housing assistance; and
o Other programs, activities, and policy initiatives directly related to the economic development of, and improvements to, the Montclair community.

The Economic Development Agency (EDA) effectively functions as an extension of the former Montclair Redevelopment Agency (RDA), except that the EDA is funded through sources other than former RDA property tax increment dollars, which no longer accrue to Montclair or the Successor RDA.

At the time the RDA was terminated in February 2012, pursuant to the California Supreme Court decision in California Redevelopment Assoc., et al. v. Matosantos, et al. (2011), the RDA annually received approximately $11 million in property tax increment revenue. If the Montclair RDA existed today, according to the City of Montclair Annual Financial Report For the Fiscal Year Ended June 30, 2024, the Montclair RDA’s annual property tax increment revenue would be approximately $15.5 million.

The EDAAF derives its current funds through the following fund sources:

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o The General Operating Fund. The General Operating Fund provides for day–to–day operations of the Economic Development Agency including, but not limited to, the following:
▪ Assigned personnel
▪ Property acquisition
▪ Economic development activities,
▪ Operation of an affordable housing program,
▪ Affordable housing maintenance
▪ Business engagement and provision of resources
▪ Community Facilities District oversight
▪ Marketing programs to attract and retain businesses
▪ Workshops for the business community
Funds that flow into the EDAAF serve as the primary fiscal resource for activities of the Economic Development Agency.
o Other funds derived from residual sources of the former Montclair RDA, including tax increment distributed to eligible taxing agencies.

Except as it may relate to affordable housing funds and assets that are directly tied to the former Montclair RDA, activities of the EDA are not regulated by the California community redevelopment law—legislation that oversaw the activities and fund assets of the former RDA. Nonetheless, the City Council has determined that the Economic Development Agency, and its oversight of the EDAAF, shall function in a manner comparable to the purpose and intent of the former Montclair RDA by serving the economic development and housing interests of the City of Montclair.

In addition to the $5,882,701 retained in the EDAAF, the EDA administers two, additional, non–renewable funding sources:
o Approximately $3,306,310 restricted for low–moderate income housing; i.e., affordable housing; and
o Approximately $13,713,972 in former Montclair RDA residual bond receipts—technically, residual bond receipts are restricted for use within the project areas administered by the former Montclair Redevelopment Agency.

The EDA also controls an estimated $75± million in real property assets.

In addition to its cash and bond receipts, The EDAAF is a funding source for operations of the EDA and, therefore, the EDAAF has a dissimilar function when compared to Special Purpose Reserve Funds; therefore the $22,902,983 in fund assets in the EDAAF and real property assets, are not identified in Table 9, below.

Table 9, below, summarizes Estimated Balances at year–end for Special Purpose Reserve Funds for Fiscal Year 2025–26:

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Table 9
Special Purpose Reserve Funds
Estimated Balances – June 30, 2026
Special Purpose Reserves:

Equipment Replacement $ 2,414,746
Self-Insurance Retentions 1,600,000
Technology Enhancements 692,519
CalPERS Unanticipated Normal Costs 3,500,000
OPEB/Retiree Medical Liability 2,000,000
Unanticipated Personnel Adjustment 1,000,000
Building Maintenance 1,944,107
Contingency 200,000
UAL/POB Ammortization 4,030,959
Parking Facility Development 9,808,557
Tarriff-Recession-Inflation Fiscal Expenditure Control Account 1,000,000 Goldline Betterment 1,750,000
Street Maintenance 1,350,000
Homelessness-Outreach-Management & Elevation Center 645,209 Total $ 31,936,097
SECTION V. ESTIMATED REVENUE CHANGES
General Operating Fund
Table 10, below, depicts Total Estimated Revenues for all funds and for the General Operating Fund:

Table 10
Total Estimated Revenues – All Funds and General Operating Fund Current Year
Revised
Prior Year Change
Estimated Revenue:

All Funds $ 69,840,126 $ 72,981,466 $ (3,141,340)
General Operating Fund $ 40,085,115 $ 39,865,303 $ 219,812 ➢ General Fund
Within the General Operating Fund sales taxes, transactions and use taxes, and property taxes (together, “sales and property taxes”) represent $32,073,720 of the estimated Fiscal Year 2025–26 General Fund Revenue total, broken down as follows:
▪ $14,820,712 in Bradley Burns Sales Tax revenue;
▪ $10,764,000 in Transactions and Use Tax revenue related to voter approval of Measure L;
▪ $2,691,000 in Transactions and Use Tax revenue related to Measure F; and
▪ $3,798,008 in Property Tax revenue.

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The above, combined General Fund tax revenue estimates reflect a total estimated adjustment of $357,106, year–over–year (between Fiscal Years 2024–25 and 2025–26)—the adjustment is primarily attributed to (i) a Midyear revised, downward estimate in tax earnings for Fiscal Year 2024–25—from an estimate of $33,073,801 to $31,716,614, and (ii) a minor, estimated improvement in property tax revenues for Fiscal Year 2025–26.

Of the $32,073,720 total in General Fund sales, transactions and use and property taxes, the following sums are set aside in the proposed Fiscal Year 2025–26 Budget for debt service on bonds:
o $2,591,513 in General Fund Revenue allocated for debt service payment on the 2014 Issue of Lease Revenue Bonds. Approximately $22.034 million in funds derived from the 2014 Issue were used for a variety of infrastructure projects throughout the City. Annual payments on the 2014 Issue will continue until bond maturity in Fiscal Year 2045–46.
o $2,395,863 million in General Fund Revenue allocated for debt service payment on the 2021 Issue of Lease Revenue Bonds.

Approximately $47.563 million in funds derived from the 2021 Issue are to be used for a variety of infrastructure–related projects throughout the City. Annual payments on the 2021 Issue will continue until bond maturity in Fiscal year 2051–52.
o $4,438,996 million in General Fund Revenue allocated for debt service payment on the 2021 Pension Obligation Bonds.

Approximately $62.190 million in funds derived from the 2021 POB Issue were used to pay down the City's unfunded accrued Liability (UAL) on pension obligations. POBs do not represent new debt; rather, POB funds were used to pay off an existing pension liability at a lower annual interest rate and a controlled annual payment obligation. Annual payments on the 2021 POB Issue will continue until bond maturity in Fiscal Year 2041–42.

The year–over–year (Fiscal Years 2024–25 and 2025–26) differences between estimated revenue funds identified in Table 10, above, are attributed to the following, significant adjustments:
• General Fund:
o $46,410 increase in taxes other than property, sales and use, and transaction and use taxes – due primarily to a projected increase in other tax sources;
o $100,000 reduction in licenses and permits – due primarily to a projected decrease in the issuance of building permits; o $15,000 reduction in fines and forfeiture – due primarily to a projected decrease in court fines;
o $177,500 increase in charges for services – due primarily to a projected increase in rubbish collection fees; and
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o $220,000 reduction in miscellaneous revenue – due primarily to a projected increase in reimbursed expenditures.
• All Other Fund Accounts
o $1,441,600 reduction in the Park Development Fund – due primarily to a projected decrease in contributions related to planned and approved housing development projects;
o $2,000,000 reduction in the Statewide Park Development Grant Fund – due primarily to the completion of the Reeder Ranch Park Project;
o $433,833 reduction in the After–School Program Fund – due primarily to a decrease in the number of schools covered under the contrast for Fiscal Year 2025–26; and
o $250,010 increase in the Safety Department Grants Fund – due primarily to the award of the SAFER Grant.

SECTION VI. OPERATING APPROPRIATIONS
Table 11, below, depicts proposed appropriations for all funds, and separately for the General Operating Fund:

Table 11
Appropriations – All Funds and General Operating Fund
Current Year Prior Year Change
Appropriations:

All Funds $ 65,230,150 $ 62,049,111 $ 3,181,039
General Operating Fund $ 39,524,382 $ 37,693,425 $ 1,830,957 ➢ Processing Appropriations Requests.

In developing the Fiscal Year 2025–26 Budget, each department was directed to submit expenditure requests demonstrating required growth for services, supplies and capital outlay. Department requests were then adjusted, as required, based on provided justification, historic expenditure data, program requirements, documented evidence, contractual requirements and funding availability.

Due to available evidence related to negative economic impacts stemming from federal economic policies, and data provided through HdL Consulting, the City’s tax consultant, the City Manager identified weaknesses in the local economy that were producing downward pressures on available revenue sources, including underperforming sales and transactions use tax revenues; probable elimination of Community Development Block Grant (CDBG) funding, as provided for in H.R. 1 – One Big Beautiful Bill Act; and other developing economic–related issues as discussed in SECTION VIII. ISSUES AND FACTORS DIRECTLY AND INDIRECTLY FY 2025-26 City of Montclair Preliminary Budget Page 41 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
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AFFECTING THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY, attached as a supplemental section to this Budget Message.

Following completion of the Budget preparation process with Department Heads, the City Manager and Finance Director complete the annual budget cycle by submitting to the City Council the proposed budget for each department, based on City Manager recommendations. Each Department is advised that program adjustments may be made at Midyear Budget Review to accommodate needed adjustments, within funding availability.
➢ Fiscal Year 2025–26 Budget Objectives:

Operating expenditures in the Fiscal Year 2025–26 Proposed Operating Budget reflect the following:
o A thorough examination of each Department's budget requests; o Adjustments to appropriation requests for travel, services and supplies, and capital outlay based on provided justification, historic expenditure data, program requirements, documented evidence, contractual requirements, and funding availability;
o Elimination of negative fund balances;
o Provision for annual bond payments on the following:
▪ 2014 Issue of Lease Revenue Bonds,
▪ 2021 Issue of Lease Revenue Bonds, and
▪ 2021 Issue of Pension Obligation Bonds.
o Maintaining the health of the City's General Fund Unassigned Reserve and Special Purpose Reserve Funds; and
o Allocating appropriate staff service charges to the Successor Redevelopment Agency, Sewer Fund, and designated grants.

During Fiscal Year 2025–26, the City Manager will explore establishing a new enterprise fund, the Solid Waste Fund, to function similar to the Sewer Fund. An enterprise fund is a self–supporting government fund that provides services for which the government autonomously collects usage charges from the public. Fees are accumulated in an enterprise fund to ensure the long–term sustainability of the service, to make the fund self–supporting, and to eliminate the requirement for the allocation of tax proceeds from the general operating fund to operate and maintain the service
Enterprise funds stand apart from other government activities, classifying them as proprietary funds, as mandated by statute.

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A defining feature of enterprise funds is their accounting methodology, which involves the separate maintenance of financial statements, revenues, and expenditures. This system operates on an accrual basis, recording expenses and income and adhering to generally accepted accounting principles (GAAP).

Proprietary fund budgeting is essential to establishing an enterprise fund, forming a significant income and expense stream supported by fees and other funds, as applicable. Government agencies overseeing proprietary funds can monitor the proportion of fund expenditures recoverable. Due to separate accounting, income earned is primarily allocated for the purpose of the enterprise fund. Separate budgeting can yield crucial insights into expenses and income, enhancing the fund’s cash management.

Government agencies can adjust user fees based on additional expenditures, such as increasing gas prices, equipment replacement, and other operating and maintenance expenditures.

The Governmental Accounting Standards Board stipulates criteria for a fund to qualify as significant: the total assets plus deferred outflows, total liabilities plus deferred inflows, revenues, and expenses of the governmental fund must either be at least 10% of the total assets and liabilities of all enterprise or governmental funds in that category, or at least 5% of all governmental funds combined. If these criteria are met, the enterprise fund attains major fund status.

Examples of common enterprise funds include the following programs: Utility services (such as water, sewer, electricity and gas); transportation services (such as public transit, airport operations, and parking facilities); solid waste and environmental services (such as solid waste collection and landfill operations and maintenance); health and social services (such as public hospital and ambulance services); telecommunications (such as municipal broadband and cable television); and other specialized services (such as marina operations, cemetery, stormwater management, arena, and convention center).
➢ Reductions to Department Requests:

Total Department submitted appropriation requests and City Manager Approved Appropriations are depicted in Table 12, below:

Table 12
Total Department Appropriation Requests
and
City Manager Approved Appropriations
Department's
Request
City Manager
Approved Change
Appropriations:

Total - All Funds (Exclusive of Debt Service) 60,417,005 $ $ 55,803,778 $ 4,613,227 Total - General Operating Fund $ 43,086,922 $ 39,524,382 $ 3,562,540 FY 2025-26 City of Montclair Preliminary Budget Page 43 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xli
SECTION VII. PERSONNEL SERVICES
➢ Full–Time Employment Positions.

The City's Fiscal Year 2025–26 Proposed Operating Budget includes funding for a total of 206 full–time positions, including the following:
o 203.71 full–time General City positions—many of these positions are funded through a variety of funds and revenue sources, including the following funds:
▪ General Fund
▪ Sewer Fund, and
▪ Grants
o 0.29 full–time employees paid by the Montclair Successor Redevelopment Agency.
➢ Part–Time Benefitted Employment Positions.

The proposed Fiscal Year 2025–26 Budget incorporates one part–time benefitted position—an Administrative Technician located in the Fire Department. City staff has determined that the incumbent would not be eligible to vest in CalPERS; therefore, the employee would be harmed by transitioning to a full–time position.

Part–time benefitted, entry–level positions were integrated into Montclair’s personnel program in 2012 as a means to exercise some forward control over long–term, CalPERS pension–related costs—employees in part–time benefitted positions are provided prorated benefits and are enrolled in Social Security as opposed to CalPERS.

However, ongoing analysis of cost savings related to Part–time benefitted positions were established to produce personnel–related cost savings during the Great Recession. An analysis of the program determined, however, that budgetary savings became less and less significant over time. Furthermore, the City's retention rate for part–time benefitted employees was less favorable when compared to full–time benefitted employees. Therefore, the City gradually decreased the use of part–time benefitted positions. The part–time benefitted program will be eliminated when the last incumbent leaves the program. ➢ Personnel Adjustments – Reorganization Element.

The proposed Fiscal Year 2025–26 Operating Budget anticipates several adjustments to personnel classifications for some or all of the following reasons:
• Ensure the effective and efficient operation of City Departments; • Provide for succession planning;
• Ensure adequate staffing;
FY 2025-26 City of Montclair Preliminary Budget Page 44 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlii
• Promote personnel retention, achieve depth of experience, and ensure the provision of City services;
• Address evolving needs and changes to organizational operations; • Respond to underperformance of sales and transactions and use tax earnings;
• Respond to the availability, or loss of grants; and
• Be responsive to potential shifts in the local economy due to the state of uncertainty regarding federal economic policies.

For Fiscal Year 2025–26, modifications to personnel staffing are reflected in Table 13, below. Personnel modifications are submitted to the City Personnel Committee for consideration prior to implementation of classification modifications and/or the appointment of qualified and appropriate personnel.

Table 13
Personnel Reorganization
Department Position
Classification
Proposed
Action
Cost
Estimate*
FY 2025–26
Savings
Estimate*
FY 2025–26
Information
Technology
Information
Technology Manager
In–house recruitment to establish
a management position for
succession planning, and to assist
the Director with supervision and
continued implementation of
advanced technology throughout
the organization. The position
vacated by the successful
candidate will not be filled.
$15,000
Finance Customer Services
Representative/Office
Specialist
Temporary hiring freeze on vacant
position.
$68,659
Administrative
Services
Human Resources
Manager
Outside recruitment to fill a re–
established Human Resources
Manager position to oversee
organizational matters related to
personnel and risk management.

Human Resources duties and
functions are currently performed
by the Assistant City Manager/
Human Services Director. Hiring a
Human Resources Manager
achieves succession planning;
provides the organization with an
employee well–versed in
personnel, risk management, and
labor negotiations practices; and
allows the Assistant City Manager/
Human Resources Director to
refocus back on issues related to
managing the Human Services and
Human Resources program, and
assisting the City Manager with
organizational operations.
$157,120
FY 2025-26 City of Montclair Preliminary Budget Page 45 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xliii
Table 13
Personnel Reorganization
Continued
Department Position
Classification
Proposed
Action
Cost
Estimate*
FY 2025–26
Savings
Estimate*
FY 2025–26
Human Services Junior Intern – Part–
time
Temporary hiring freeze on vacant
position.
$24,024
Police Police Officer
Police Cadet
In Fiscal Year 2024–25, the Police
Department reclassified a Police
Officer position to Police Sergeant
to enhance MPD’s supervisory
capabilities. This reclassification
reduced MPD’s street–level Police
Officers by one. In addition, a
second Police Officer was assigned
to special detail with San
Bernardino County. The proposed
action is to increase the number of
Police Officers back to 41 full–time
positions.

Temporary hiring freeze on two
vacant Police Cadet positions
($27,084 each).
$129,000
$54,168
Fire Firefighter/Paramedic Authorize application for a second SAFER Grant. Acquiring two more
SAFER grant funded firefighters
(three–year grant funding) will
enhance the Fire Department’s
capacity to field its new Rescue
Squad (due for delivery in fall
2025) on a 24–hour per day basis,
and save the City an estimated
$214,170 first year in General
Fund expenditures.

Anticipated grant funding:

Approximately $692,000,
reimbursed over three years.
$214,170
Community
Development
Senior Planner
Code Enforcement
Officer
Administrative
Specialist
Reserve Code
Enforcement Officer
Reclassify Senior Planner to City
Planner. Establishes a
management position to assist the
Director with planning–related
functions, and to provide technical
planning expertise for plan review.

Temporary hiring freeze on vacant
Code Enforcement Officer position
Temporary hiring freeze on
Administrative Specialist position.

Temporary hiring freeze on two
vacant Reserve Code Enforcement
Officer positions
$13,000
$83,911
$68,659
$7,200
FY 2025-26 City of Montclair Preliminary Budget Page 46 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xliv
Table 13
Personnel Reorganization
Continued
Department Position
Classification
Proposed
Action
Cost
Estimate*
FY 2025–26
Savings
Estimate*
FY 2025–26
Public Works Associate Engineer
Project Manager and
Environmental
Program Supervisor
Associate Engineer
Public Works
Inspector
Facilities Maintenance
Manager
Lead Worker
Irrigation Specialist
Maintenance Worker
Colt Landscaping
Reclassify Associate Engineer to
Senior Engineer. Establishes a
management position for succession
planning, and to assist the Director
with supervision, project
planning/management and
engineering duties.

Delete vacant Project Manager
($99,456) and vacant Environmental
Program Supervisor ($108,111),
reassign duties to Senior Engineer
and Associate Engineer (see below).

Recruit for new Associate Engineer
($120,814) to support the Public
Works Director and Senior Engineer
with the City’s expansive
infrastructure projects.

Add Public Works Inspector to assist
Senior Public Works Inspector with
inspection of the City’s expansive list
of infrastructure projects. Also
provides for line of succession.

Establish Facilities Maintenance
Manager class to assist Public Works
Facilities/Maintenance Assistant
Manager to maintain City–owned and
operated buildings equipped with
advanced technologies requiring
specialized skills. Conduct in–house
recruitment, appoint successful
candidate to position. Vacated
position of successful candidate may
or may not be eliminated—
determinative on position.

Retain Parks Program Lead Worker
and reassign to assist Public Works
Operations Assistant Manager.

Re–establish Irrigation Specialist
class. Conduct in–house recruitment,
appoint successful Maintenance
Worker ($61,862) to Leadworker–
level position ($69,633). Transfer
vacant Maintenance Worker position
to Streets program (6 Maintenance
Workers plus Lead Worker).

Add additional Maintenance Workers
($61,862) to Sewer Program and
Streets Program.

Streets – 5 +1 LW
Sewer – 3 + 1 LW
Maintaining Parks Maintenance with
Colt Landscaping expands the City’s
capability to manage and maintain
parks, medians and the grounds at
City facilities. Net savings is
equivalent to three Maintenance
Workers, while concurrently
expanding scope of work for the
City’s parks program.
$15,000
$120,814
$86,668
Not able to
determine at
this time.

Additional
annual cost not
expected to
exceed
$12,000.
$0.00
$7,771
$61,862
$207,567
$0.00
$185,586
FY 2025-26 City of Montclair Preliminary Budget Page 47 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlv
Table 13
Personnel Reorganization
Continued
Department Position
Classification
Proposed
Action
Cost
Estimate*
FY 2025–26
Savings
Estimate*
FY 2025–26
Economic
Development
Administrative
Analyst
Reclassify vacant Administrative
Analyst ($91,612) position to
Economic Development
Coordinator ($102,635). The title
change more accurately reflects
Department needs to focus on
developing programs designed to
attract, retain, and expand
businesses in the City; interact
with the business community and
commercial real estate brokers;
prepare marketing material;
maintain database for economic
development partners; follow–up
on business and economic leads;
organize and conduce information
forums for business partners;
coordinate major City events that
support economic development;
pursue innovative marketing
strategies; serve as liaison to the
Chamber of Commerce and IE
Small Business Development
Center, and develop strategic tools
and communications to promote
Montclair’s business community
and attract business relocation and
startup.
$11,023
Projected Total Cost/Savings All Programs: $629,258 $913,944 Total Net Savings All Programs: $284,686
*Cost and Savings Estimates include wages and benefits. All costs and savings are based on projected costs for Fiscal Year 2025–

26. ➢ Personnel Budget Appropriations.

The Proposed Fiscal Year 2025–26 Budget includes the following appropriations for Personnel Services for all funds, and separately for the General Operating Fund:
o All Funds. The Proposed Fiscal Year 2025–26 Budget includes $34,439,660 for Total Personnel Services, All Funds. Based on 204 full–time City positions and 1 part–time benefitted position, Personnel Services represent approximately 61.7 percent of the Proposed Fiscal Year 2025–26 Budget, Total Operating
Appropriations (exclusive of debt service) ($55,803,778). o General Fund. The Proposed Fiscal Year 2025–26 Budget includes $27,247,959 for Personnel Services, General Fund appropriations.

Based on full–time/part–time benefitted General Fund positions, Personnel Services represents approximately 68.9 percent of the Proposed Fiscal Year 2025–26 General Fund Operating
Appropriations Budget ($39,524,382).

FY 2025-26 City of Montclair Preliminary Budget Page 48 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlvi
➢ Budget Allocations by Department.

As indicated in Table 12, below, the Proposed Fiscal Year 2025–26 Budget includes personnel, services and supplies, and capital outlay funding allocations, by Department.

Individual components of Department operations can be found in the Budget Summary section of the Proposed Fiscal Year 2025–26 Budget.

Table 12
Budget Allocations, By Department
Personnel Services Capital
Services Supplies Outlay Total
$ 180,597 $ 259,900 $ - $ 440,497
2,418,414 4,408,319 233,000 7,059,733
973,182 867,538 - 1,840,720
Human Services 4,094,280 1,021,000 15,000 5,130,280
11,848,994 1,548,875 309,996 13,707,865
5,044,858 790,402 42,849 5,878,109
3,711,979 7,287,964 81,313 11,081,256
1,751,871 307,000 - 2,058,871
Economic Development 631,414 952,360 - 1,583,774
135,829 235,000 - 370,829
3,421,015 2,739,000 - 6,160,015
217,727 274,102 - 491,829
Total Operating Expenditures $ 34,430,160 $ 20,691,460 $ 682,158 $ 55,803,778 - - - 9,426,372
Total Expenditures $ 34,430,160 $ 20,691,460 $ 682,158 $ 65,230,150 Debt Service
City Council
City Attorney
Citywide
Community Facility Districts
Community Development
Public Works
Fire
City Manager
Administrative Services
Police
SECTION VIII. ISSUES AND FACTORS DIRECTLY AND INDIRECTLY AFFECTING THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY.

Attached to the City Manager’s Fiscal Year 2025–26 Budget Message is the following supplemental section:

CITY OF MONTCLAIR
FISCAL YEAR 2025–26 BUDGET MESSAGE
SUPPLEMENTAL SECTION NO. 1

ISSUES AND FACTORS DIRECTLY AND INDIRECTLY AFFECTING

THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY
Information contained in Supplemental Section No. 1 is important to understanding the impacts of current federal trade and economic policies on national, state and local economies. Supplemental Section No. 1 is also important to fully understanding the current, evolving economic issues that may produce significant fiscal consequences for FY 2025-26 City of Montclair Preliminary Budget Page 49 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlvii
the City of Montclair in Fiscal Year 2026–26 and beyond. However, the Fiscal Year 2025– 26 Budget Message is designed to be read separate from Supplemental Section No. 1.

SECTION IX. CONCLUSION
As presented to the City Council for consideration, the Proposed Fiscal Year 2025–26 Budget can be termed a successful budget that utilizes a number of funds and strategies to achieve balance and respond to a number of community and organizational needs.

Central to the Budget’s fiduciary commitment is the creation of debt service funds, including the following:
• The 2014 Issue of Lease Revenue Bonds Debt Service Fund ─ $2,591,513; • The 2021 Issue of Lease Revenue Bonds Debt Service Fund ─ $2,395,863; • The 2021 Issue of Pension Obligation Bonds Debt Service Fund ─ $4,438,996.

The Fiscal Year 2025–26 Budget, as proposed, also incorporates the allocation of $31,936,097 for Special Purposes.

The Economic Development Agency (EDA) manages $22,895,623 through the Economic Development Agency Assets Fund (EDAAF), distributed as follows:
• $5,875,341 in the Economic Development Agency Assets Fund; • $3,306,310 in restricted low–moderate income housing funds; and • $13,713,972 in residual bond receipts.

The passage of Measure L in 2020 greatly improved the City’s revenue profile, generating an estimated $10.76 million in transactions and use tax revenues for Fiscal Year 2025–26. However, sales and transactions and use tax receipts are presently underperforming. Both real world data and estimates provided by HdL Companies, the City’s tax consultant, suggests the City should expect a sustained decline of approximately 3 percent, at least until mid-2026 when tax receipt recovery may achieve a minor gain. However, any real improvement will be based on the direction and tenor of federal economic and fiscal policies over the next several months, and the impacts, generally, of a wide range of federal policies on each level of government, the nation, and global dynamics.

For Fiscal Year 2025–26, each City Department was provided flexibility in the preparation of their respective budget programs; however, after budgets were submitted it was necessary for the City Manager to reduce Department budget requests by $4,613,227 across All Funds, and $3,562,540 in relation to the General Operating Fund in order to produce a balance between appropriation requests and projected revenue. Reductions were made using historical data related to Department expenditures, actual and projected needs, and available funding detail. In addition to uncertainty in the economy, brought on by the federal governments trade and economic policies, the City had to again concern itself with a growing unfunded liability obligation to CalPERS. Other factors FY 2025-26 City of Montclair Preliminary Budget Page 50 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlviii
related to economic forecasting for Fiscal Year 2025–26 are contained in Supplemental No. 1 to this Budget Message.

In relation to the General Operating Fund Unassigned Reserve's Operating Reserve Ratio, the City saw a decline in its General Operating Fund Unassigned Reserve Fund, which is projected to have a fund balance of $6,540,554 at end of year 2026. This decline from a projected $8,600,000 at end of year 2025 is due to a number of factors, including a revised decrease in projected sales and transactions and use tax revenue at the February 2025 Midyear Budget Review; projections for underperforming sales and transactions and use tax earnings for Fiscal Year 2025–26; increases in liabilities related to insurance, Worker’s Compensation claims, and other settlement costs; and projected impacts of the Trump Administration’s economic, fiscal and other policies.

Under the current federal administration, the City is also seeing withdrawal of federal grant dollars, a significant decline in ongoing availability of grants, the proposed elimination of the Community Development Block Grant program, and the loss of more than $1 million in Community Project Funding—the latter representing a second allocation of funding that had been directed for the Montclair Transit Center.

The Gold Line light rail extension from Pomona to the Montclair Transit Center also faced additional delay when the bid on the project came in $300 million higher than available funds; further, a June 2025 increase in the U.S. tariff on steel and aluminum to 50 percent further complicates moving the project forward in a timely manner.

Special Purpose Reserve Funds retain a balance of $31,936,097. Together the General Operating Fund Unassigned Reserve Fund balance of $6,540,544 and the Special Purpose Reserve Fund balance of $31,936,097 equal $38,476,641.

I am pleased to report that the City’s Other Post Employment Obligations (OPEBs) have declined from approximately $12.2 million in 2021 to an approximate ending balance of $8.828 million for 2024. This extraordinary decline was produced through concerted effort by the City Manager and City Council to control OPEB costs and obligations.

Starting in 2020, Montclair initiated an aggressive posture related to applying for grants.

To date, the City has applied for approximately $242.729 million in state and federal grants; approximately $40.639 million in grants have been awarded to Montclair; and an estimated $40.652 million in funding is pending notification of award or denial. The balance of approximately $161.438 million in grant funding has been either denied or suspended. Nonetheless, Montclair’s success rate in filing for, and receiving grants over the last five years has no parallel in the City’s 69–year history, and likely competes with or exceeds the grant-related experiences of many of the City’s neighboring jurisdictions.

Each year, City staff seeks to improve upon, or achieve new revenue enhancements. In November 2020, Measure L received 68.84 percent voter support, and is expected to generate an estimated $10.76 million in Fiscal Year 2025–26, with $2,395,863 allocated annually to the debt service fund for the 2021 Issue of Lease Revenue Bonds. Voter approval of Measure L presented the City Council the opportunity to bring critical infrastructure improvements to the community, enhance municipal services, and improve employee working conditions. Measure L is currently underperforming expectations, as are every tax revenue programs administered by the City.

During Fiscal Year 2022–23, the City Council agreed to place on the November 8, 2022 ballot two measures (Measure “R” and Measure “II”) asking voters to consider (i) the FY 2025-26 City of Montclair Preliminary Budget Page 51 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page xlix
legalization of commercial cannabis businesses in the City, and (ii) a maximum 7 percent cannabis sales tax on licensed commercial cannabis businesses—each measure was approved by the voters. City staff is currently finalizing development of a commercial cannabis ordinance for presentation to the City Council in the first quarter of Fiscal Year 2025–26. Revenue generated by a commercial cannabis program may generate $2 million± annually for the Montclair General Fund.

City staff is also contemplating other revenue producing measures to further enhance the City’s capacity to deliver programs, services and improvements to the Montclair community and Montclair organization.

Going forward, City staff will:
• Routinely look at fresh approaches for service delivery; • Continue to evaluate available grants and outside funding opportunities to defray General Fund–related expenditures;
• Seek to develop strategies to improve the appearance of the community and promote enhancements to its infrastructure;
• Identify new and creative revenue concepts to further bolster the City’s ability to weather economic downturns, enhance quality of life for residents, continue a pattern of infrastructure improvements, and advance on our capacity to promote a positive work environment;
• Pursue development designed to enhance the City's commercial and residential base;
• Promote Economic Development opportunities by drawing on the City's past and effective promotion of redevelopment as a tool to revitalize Montclair; • Continue to develop partnerships for investments not only in North Montclair, but throughout the City; and
• Work with regional, state, and federal representatives to promote efforts designed to move Montclair forward.

Based on discussions in the City Manager's Fiscal Year 2025–26 Budget Message, it is clear the City Council continues to develop its role as a responsive governing body that is focused on prudent fiscal management practices—practices that allow the City Council to function as architects of Montclair's fiscal destiny.

Through vibrant, visionary, and energetic projects like the Amended North Montclair Downtown Specific Plan, the Montclair Place District Specific Plan, and recent adoption of the General Plan Update, the Corridors Plan and the Arrow Highway Mixed–Use District Specific Plan it is evident that Montclair is a community shaping its destiny and trending toward an era of progress.

As the Montclair organization moves into the new fiscal year its leaders, as always, will confront the challenges before the community and cope with the economic policies that influence the local decision making process.

FY 2025-26 City of Montclair Preliminary Budget Page 52 of 741 City Manager's Fiscal Year 2025–26 Budget Message to the City Council June 13, 2025
Page l
Concurrent with the need to proactively address the economic realities of the day, the Montclair organization is committed to maintaining a balance between its commitment to the organization and its people, and its commitment to provide a superior level of services for the community.

On behalf of the Montclair City Council and the City's management team, I continue to thank each City of Montclair employee for providing exceptional service to the Montclair community. The individual service of Montclair employees has been instrumental in making Montclair a community in which residents are proud to live in, businesses are honored to operate in, children can safely play in, and employees are proud to work for.

I also thank the Finance Department and management team for their efforts in putting together the proposed Fiscal Year 2025–26 Budget, and helping to keep Montclair on a forward footing.

Honorable Mayor and City Council, the management team is at your disposal to answer any questions each of you may have regarding the proposed Fiscal Year 2025–26 Budget and the City's program of services.

ECS:JK/MF
Sincerely,
Edward C. Starr
City Manager
FY 2025-26 City of Montclair Preliminary Budget Page 53 of 741

CITY OF MONTCLAIR
FISCAL YEAR 2025–26 CITY MANAGER’S BUDGET MESSAGE
SECTION VIII.

ATTACHED AS SUPPLEMENTAL SECTION NO. 1

ISSUES AND FACTORS DIRECTLY AND INDIRECTLY AFFECTING

THE ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY
Factors feeding into concern over the local economy include the following major economic policies, occurrences and actions.

The City Council is advised that there is presently a state of flux at the federal level related to a variety of national economic policies. These shifting policies and changing data make any qualitative analysis related to local economic impacts a day–to–day practice subject to reversal, modification, obsolescence, or significant change.

In preparing the City Manager’s Fiscal Year 2025–26 Budget Message, every effort has been made to maintain currency of data, and the impacts of federal policies on the local economy, up to the time the Fiscal Year 2026–27 Budget is printed.

The below discussion is broad and encompasses a range of issues and factors that both directly and indirectly impact Montclair’s fiscal capabilities to deliver a service program that avoids reductions in services—they also largely fall outside the City’s ability to influence or control.

In consideration of the following factors, and based or actual analysis of local revenue trends by HdL Companies, Montclair’s sales tax consultant, the City Manager projects that Fiscal Year 2025–26 General Fund revenues will be down by an estimated 3.5%.

In order to cope with the projected decline in revenues for Fiscal Year 2025–26, the City Manager has implemented a number of measures discussed in the budget message to ensure the City Council is presented a balanced budget, and residents of Montclair will continue to enjoy an effective blend of services.

1. The International Monetary Fund’s Successive Warnings that the Global Economy Could Face Significant Challenges Stemming from “Reciprocal” Tariffs Imposed by the U.S. on more than 200 Nations. On April 2, 2025, the Trump Administration announced a series of "reciprocal" or “Liberation Day” tariffs” to correct what the administration perceived to be decades of unfair trading relationships that disadvantaged American manufacturers and workers.

The announcement triggered a global decline in stock values and declines in other economic indicators.

FY 2025-26 City of Montclair Preliminary Budget Page 54 of 741 Under the reciprocal tariffs, some countries were initially hit with extraordinarily high duties, such as the People’s Republic of China (PRC), with a 145% tariff on nearly all goods exported to the U.S. The PRC responded in early April with 125% tariffs on U.S. products—Chinese goods represent an estimated 40% of the imports that pass through the Port of Los Angeles. Duties on the PRC were later lowered to 30% under a 90–day pause, with Chinese officials responding by lowering tariffs on U.S. imports to 10% (see Chart 1, below). Despite the reductions, the tariffs sharply reduced trade between the world’s two largest economies, with the ports of Los Angeles and Long Beach reporting the processing of shipping containers down by as much as 30% from the Asian market, and U.S. exports down by 10%.

Chart 1
U.S. and PRC Duties
February through May 2025
Federal tariff policies are also producing a disproportionate impact on small businesses in the U.S., many of which have been forced to adopt radical measures including layoffs, inventory liquidation and bankruptcy. Small businesses represent 99.9% of all businesses in the U.S., with more than 34.8 million, compared to 19,688 large businesses according to USAFacts. Small businesses also employ 45.9% of all private sector employees.

Import duties are common components of each nation’s complex trade policies and practices; however, current U.S. trade policy is marked by a number of factors that are creating inconsistencies, confusion, and uncertainty in how other nation’s respond, and how American businesses plan for future operations. The following features of current trade policy are major drivers related to uncertainty among U.S. businesses and trading partners, and this uncertainty has transferred down FY 2025-26 City of Montclair Preliminary Budget Page 55 of 741 to the local level where it is impacting near–term prospects for revenue enhancement:
o American trade policy is evolving on almost a weekly, if not daily basis.

According to the U.S. Tax Foundation, under the tariffs currently in effect, the weighted average applied tariff rate on all imports will rise to 15.0%, and the average effective tariff rate, reflecting how much tariff revenue the new tariffs will raise after incorporating behavioral responses will rise to

12.1%—the highest average rate since 1941. The Tax Foundation estimates tariffs will cause imports to fall by about $542 billion in 2025, or 16% overall.
o Economists opine that the current pause in “reciprocal” tariffs is probably not enough to avoid short– and long–term economic impacts on the economy. Tariffs are effectively leaving many small U.S. manufacturers and companies in survival mode, and may cause larger retailers to cope with shortages and the imposition of higher prices. o The 145% tariff on the PRC has been paused, not canceled; however, President Trump, in late May, announced that the PRC is in violation of the outline of trade provisions reached between the two countries—a statement that may foretell reconsideration of the current pause. In any event, it is uncertainty regarding the scope and up–and–down fluctuation in tariffs that is at least as important as the level of the duties. o The current 30% PRC tariff is significant, especially when combined with 10% tariffs imposed on the imports from America’s other trading partners, 25% tariffs on imports from global suppliers of steel and aluminum manufacturers, and a 25% tariff on imported cars and auto parts—the tariff on steel and aluminum has since been increased to 50% as of June 4, 2025.

In relation to the 25% tariff on steel and aluminum, the February 2025 bid response by Kiewit Corp. for extension of the Gold Line light rail system from Pomona to the Montclair Transit Center points to (i) the added cost related to the steel and aluminum tariffs, and (ii) long–term risk and uncertainty related to evolving trade policies, as key factors in the vendor’s projected cost to build the project. Kiewit’s bid on the project exceeded engineer estimates, and available funds, by more than $300 million.

The Foothill Gold Line Extension Construction Authority determined to rebid the project using the Construction Management at Risk (CMAR) construction process in an effort to bring costs down; however, the Trump Administration has since increased the steel and aluminum tariffs to 50% effective June 4, which is expected to further increase the cost to build the project from Pomona to Montclair, making a successful bid under the CMAR construction process unlikely.
o 2025 tariffs are near, and could exceed, historical highs. In 2024, the average U.S. tariff rate was 2.5%, marginally lower than duties imposed by FY 2025-26 City of Montclair Preliminary Budget Page 56 of 741 the European Union, PRC, and several other nations. As indicated in Chart 2, below, the average effective tariff rate on imports to the U.S. in 2025 stands at 14.5% (up from 3% in January 2025)—the highest since 1938 when the U.S. tariff rate reached 15.5%. During the Great Depression, in an effort to protect domestic jobs and industries, adoption of the Smoot– Hawley Tariff Act of 1930 caused the U.S. tariff rate to reach 19.8%.

Chart 2
Average U.S. Tariff Rate—1890 to 2025
In the late 19th century, tariff rates climbed as high as 29.6% under the McKinley Tariff Act of 1890. However, at the time, tariffs were used to protect U.S. industry and generate revenue for the U.S. government. Use of the income tax, as a formal revenue raising tool of the federal government, did not exist until (i) adoption of the Sixteenth Amendment to the U.S. Constitution in February 1913, followed by (ii) enactment of the Revenue Act of 1913, and (iii) the U.S. Supreme Court decision in Brushaber v. Union Pacific Railroad Company (1916), where the Court held that the Revenue Act was constitutional.

While the Trump Administration has lowered or placed temporary pauses on many of the “reciprocal” tariffs, the U.S. economy continues to demonstrate directional uncertainty. In response, the International Monetary Fund (IMF) has forecast that growth in the global economy would decline to 2.8% in 2025, down from 3.3% in 2024. Additionally, the IMF lowered its 2025 prediction for U.S. economic growth to 1.8%, a decrease from the 2.8% forecasted in January 2025. For 2026, the IMF FY 2025-26 City of Montclair Preliminary Budget Page 57 of 741 projects economic growth to rebound to an annualized 3% but that, too, is down from the earlier prediction of 3.3%.

According to the IMF, the global economic system that has operated for the last 80–years is being reset and heading into uncertain territory.

2. Impacts of “Reciprocal” Tariffs on Product Inventory, Demand and Manufacturing. Goods from the PRC faced tariffs of 145%, later lowered to 30% on a 90–day pause. Nonetheless, the duties brought trade between the world’s two largest economies to a steep decline, followed by a minor recovery when the pause was implemented. Tariffs are leaving many U.S. manufacturers and companies in survival mode as they face uncertainty regarding product price and delivery, and many companies are cancelling or facing cancellation of orders due to the cost of goods and supply shortages
The GEP Global Supply Chain Volatility Index, a key measure tracking trade– related demand conditions, shortages, transportation costs, inventories, and backlogs revealed a steep decline in global manufacturers’ demand for inputs in April and May, signaling a broad–based contraction across multiple regions, particularly for global manufacturers. As a result, stockpiling of product accelerated at a concerning rate and the first signs of manufacturers anticipating slower demand and supply shortages emerged.

The GEP Index reports that in the U.S., manufacturers boosted inventory and stockpiled product to counter tariff concerns and enhance supply chain resilience.

In Asia, factory slowdowns hit major markets like the PRC, Taiwan, and South Korea. Europe, too, has seen a downturn in industrial production, with supply chain underutilization reaching COVID–19 pandemic–level lows. The United Kingdom also realized manufacturing weakness, with production reportedly down to levels rarely seen in 20 years of reported data.

Ahead of a July 9 deadline for negotiating trade deals before the return of “reciprocal” tariffs, the Trump Administration reportedly has been considering tariffs by global region, and that the nation’s trading partners would be advised by letter as to what the tariff would be in order to maintain open trade with the U.S.

Further, in late May the U.S. Administration announced a recommended 50% tariff on the European Union (EU), effective June 1, citing frustration over stalled trade negotiations—shortly after the announcement, the Administration rejected a revised EU proposal; however, the Administration later changed course and moved the effective date to July 9, 2025.

The Administration also advised Apple to expect a 25% tariff on iPhones not made in the U.S. In response, Apple argued it would not be cost effective for the company to move its production to the U.S., even under a high import tax.

The Apple and EU announcements briefly triggered a broader market reaction, dragging down U.S., European and Asian stocks, U.S. Treasury yields, the euro, crude oil prices, and bitcoin. However, after the Administration extended the FY 2025-26 City of Montclair Preliminary Budget Page 58 of 741 implementation date for the new tariffs to July 9, the markets experienced a minor recovery; however, investors demonstrated continued concern that a long period of economic volatility will remain, adding to market anxiety and concern over U.S. fiscal credibility.

In response to the evolving impact of tariffs on the nation’s economy, California, in April, became the first state to file a U.S. District Court lawsuit against the Administration, claiming the Administration lacked authority to unilaterally tax imports under the International Emergency Economic Powers Act (IEEPA) California also joined in an amicus brief with eleven other states on a separate claim filed with the U.S. Court of International Trade to halt the Administration’s tariffs. The U.S. Court of International Trade is a federal court that deals specifically with civil lawsuits involving international trade law.

On May 28, 2025, in considering the claim from the twelve states, the Court of International Trade blocked much of the Administration's tariffs, ruling the President inappropriately used the IEEPA to declare a national emergency to justify the tariffs.

The administration had argued that courts had approved then–President Richard Nixon’s emergency use of tariffs in a 1971 economic and financial crisis that arose when the U.S. government devalued the dollar by ending a policy that linked U.S. currency to the price of gold. The Nixon administration successfully cited its authority under the 1917 Trading With Enemy Act, which preceded and supplied some of the legal language later used to construct the IEPPA.

In the May 28 IEEPA ruling, the court disagreed, deciding that the Trump Administration’s sweeping tariffs exceeded Presidential authority to regulate imports under the IEEPA. The court also said the tariffs are not actually intended to resolve problems they were supposed to address.

The states argued that the nation’s trade deficits did not represent a sudden emergency, particularly when the U.S. has carried trade deficits for 49 straight years, in both good and difficult economic times.

The Court of International Trade did observe, however, that the Administration retains limited power to impose tariffs to address trade deficits under Section 122 of the Trade Act of 1974. That law, however, restricts tariffs to 15% for up to 150 days with countries with which the United States runs large trade deficits.

The ruling left in place tariffs the Administration put in place using Section 232 powers from the Trade Expansion Act of 1962. The Administration had put a 25% tax on most imported autos and parts, as well as on all foreign–made steel and aluminum. Those tariffs are reportedly tied to a Commerce Department investigation that reveals national security risks from imported products.

The Administration quickly appealed the Court of International Trade ruling; and, upon appeal, the Court of Appeals for the Federal Circuit issued an order granting “an immediate administrative stay” of the ruling by the U.S. Court of International Trade, temporarily reimposing Trump’s 10 percent global tariffs and the paused FY 2025-26 City of Montclair Preliminary Budget Page 59 of 741 “reciprocal” tariffs imposed on more than 60 U.S. trading partners. It also applies to the 25 percent duties on Canadian and Mexican products and a 20 percent tariff on Chinese products in response to a purported national emergency on drug trafficking.

The appeals court said the temporary stay would remain in place until it rules on the administration’s motion for a longer–term pause of the lower court decision.

The stay is expected to run through at least mid–June.

In the separate case where a federal district judge also ruled against the Administration's tariffs, the judge placed a 14–day hold on his decision to give the Administration time to appeal, and restricted the effect of his decision to the two companies that filed the lawsuit.

California’s lawsuit was dismissed on June 2, 2025, when the U.S. District Court judge concluded that the case belonged in an out–of–state court specializing in trade disputes; i.e., the U.S. Court of International Trade. By dismissing the case, rather than transferring it to the Court of International Trade, the judge opened a path for California to appeal the ruling to the U.S. 9th Circuit Court of Appeals. The ruling against California had been expected, as the District Court judge previously signaled that the court lacked jurisdiction, noting the trade court has authority over tariff cases.

While the tariff matter is likely to continue on up to the U.S. Supreme Court, questions around the duties are likely to continue destabilizing global trade systems, and various aspects of the nation’s economy are likely to remain under clouds of uncertainty, including within the following areas of concern:
 Industries and businesses must determine if they are to (i) continue operating; (ii) absorb all, some, or none of the tariff–related costs; (iii) reduce or maintain levels of staffing; and (iv) ramp up or decrease production, and when to do so;
 Developers, businesses and consumers must plan to cope with sustained, higher interest rates that may suppress economic activity; and
 Consumer confidence in the economy is likely to continue to slide, and stands as the lowest confidence reading in 52 months, dating back to mid–pandemic December 2020; although, a late May 2025 study did show a 14% climb in confidence as the U.S. Administration softened its tariff stances, the stock market recovered a significant share of its losses, and wealthier taxpayers expected tax cuts from legislation advancing through Congress.

If the Court of International Trade’s ruling is ultimately upheld, it could require the U.S. government to refund an estimated $13.7 billion in tariffs collected under IEEPA through April 30, 2025, per U.S. Customs and Border Protection data, with $7.9 billion tied to goods from China and Hong Kong.

FY 2025-26 City of Montclair Preliminary Budget Page 60 of 741

3. Federal Reserve Board Maintains Federal Funds Rate Range of 4.25%–4.50%, Signaling No Immediate Shift in Policy or Lowering of Interest Rates.

Refusal by the Fed to cut rates stems from heightened inflation concerns, driven by recent data indicating rising price pressures. The Atlanta Fed's Business Inflation Expectations Survey for April 2025 reported that businesses expect year– ahead inflation to reach 2.8%, the highest since July 2023 and up from 2.4% in December 2024. As a result, the Fed is not expected to consider rate cuts any earlier than September 2025 due to the tariff–driven inflation risks, unclear economic data, and a still resilient labor market. In addition, it is important to point out that, due to economic uncertainty, volatility and policy shifts, the U.S. economy can expect to see varying economic data that makes it difficult to navigate and predict ups and downs for emerging economic quarters.

The Fed continues to caution that the scale of the “reciprocal” tariffs exceeded the Fed’s expectations, signaling potentially significant economic consequences.

While the Fed has generally downplayed the long–term inflationary impact of tariffs—referencing the relatively muted effects during the first Trump administration—the current wave of 2025 tariffs appear broader, deeper, and more durable. Further, trade actions are accompanied by tighter immigration policies that could further strain labor markets. With fewer workers in key sectors, structural inflationary pressures may build, even if tariffs eventually ease. At the same time, growth risks are intensifying, and the combination of tariffs, a substantial increase in the federal deficit, and economic uncertainty are combining to create a drag on the economy. Though these effects are not yet fully visible in hard data, the Fed remains concerned about forward–looking indicators and is signaling caution.

The Fed asserts that tariffs are poised to drive at least a temporary spike in inflation, which could lead to slower economic growth, complicating the Fed’s dual mandate of price stability and maximum employment. Further, even in a scenario where tariffs are substantially reduced or eliminated, it would take months for U.S. companies to recover and order supplies from foreign markets; concurrently, it would probably take foreign manufacturers even longer to restore manufacturing capacity to meet U.S. demand. Effectively, residual effects of the tariffs will likely produce prolonged reductions in manufactured goods that parallel what occurred during the COVID–19 pandemic.

At the same time, the Fed sees multiple tracks that could develop over the next months:
a. The Fed argues that it has a commitment to prevent tariff–induced price spikes from becoming entrenched; i.e., the Fed’s “obligation is to keep longer–term inflation expectations well anchored to ensure a one–time price level increase does not evolve into a persistent inflation problem.” Due to trade policy uncertainties, the Fed is taking a wait–and–see approach to determine how the tariffs will ultimately impact the nation’s economy. In the meant time, the Feds larger concern is that that tariffs may lead to both higher inflation and slower growth.

FY 2025-26 City of Montclair Preliminary Budget Page 61 of 741 b. In a scenario of rapid economic slowdown paired with elevated inflation, the risk of recession could take precedence over inflation concerns, causing the Fed to implement interest rate cuts if tariffs significantly increase unemployment.
c. Finally, if rising short–term inflation expectations are incorporated into longer–term expectations for the economy (sustained, higher inflation), it raises the possibility of maintaining high interest rates or even hiking them further in the face of continue inflation.

Despite all the economic uncertainties, the May Consumer Price Index data did show inflation cooling marginally across the U.S. CPI rose just 2.3% in April. While still above the Fed’s 2% target, it marked the slowest rise in inflation since February of 2021. The Fed attributes this slower inflation to the calm before the tariff storm. Many goods on the shelf were ordered pre–tariff, and consumers are rushing to stock up before prices in stores increase. Effectively, temporary tariff pauses, preemptive inventory stockpiling by businesses, and consumer stockpiling of household goods likely delayed price hikes.

The CPI report, while positive, apparently does not provide clear guidance to the Fed on the timing or extent of its future policy moves. The Fed is cautious that tariff–related inflationary pressures may not fully materialize until the May through October 2025 period, particularly if the temporary pauses on tariffs are lifted. From this perspective, it is anticipated that Fed will likely not introduce an interest rate cut any earlier than September 2025, and it is certainly probable that there will be no more than one or two rate cuts for the year.

In Southern California, inflation numbers have told a different story. A recent comparison of 23 major MSAs (Metropolitan Statistical Areas) shows that Southern California’s major cities are struggling with inflationary pressures. According to a WalletHub analysis, the following 10 MSAs lead the nation in inflation:
 Los Angeles–Long Beach–Anaheim, CA
 San Diego–Carlsbad, CA
 New York–Newark–Jersey City, NY–NJ–PA
 Baltimore–Columbia–Towson, MD
 St. Louis, MO–IL
 Riverside–San Bernardino–Ontario, CA
 Chicago–Naperville–Elgin, IL–IN–WI
 Washington–Arlington–Alexandria, DC–VA–MD–WV
 Philadelphia–Camden–Wilmington, PA–NJ–DE–MD
 Tampa–St. Petersburg–Clearwater, FL
Los Angeles–Long Beach–Anaheim had the biggest inflation increase in California (1.20%), tied with St. Louis, MO for the largest increase nationwide. The third– largest increase nationally was Riverside–San Bernardino–Ontario (1%).

The same WalletHub stud found the following five MSAs to have the nation’s smallest inflation increase:

FY 2025-26 City of Montclair Preliminary Budget Page 62 of 741  San Francisco–Oakland–Hayward, CA
 Atlanta–Sandy Springs–Roswell, GA
 Minneapolis–St. Paul–Bloomington, MN–WI
 Phoenix–Mesa–Scottsdale, AZ
 Dallas–Fort Worth–Arlington, TX
The Fed maintains that “unusually elevated” uncertainty surrounds the U.S. economic outlook, particularly for employment and inflation. Year–over–year, the Core Personal Consumption Expenditure (PCE) Index, excluding food and energy, increased 2.5%, and food and energy grew 2.1%. However, consumer purchasing power strengthened, rising 0.8%, and the personal saving rate climbed to 4.9%, the latter and indication that some consumers are holding back. While inflation has not accelerated, the direction is still not toward the Fed’s 2% target.

4. Declining Consumer Confidence. The latest survey of consumer sentiment by the University of Michigan (see Chart 3, below) is noting steep declines in how people feel about the future of the economy, as anxiety rises over tariffs' impact on prices. The data shows one–year inflation expectations surging to

6.7%, the highest since 1981, far exceeding the Fed’s 2% target. Inflation fears, however, were muted by pre–tariff data that showed people spending on building and gardening supplies, sporting goods, automobiles, big ticket items, and going out to eat. Tariff fears have also been tempered by a job market remaining strong and incomes increasing—the two main factors that drive consumer spending.

Chart 3
In contrast to declining consumer confidence, the Treasury market’s 5–year breakeven inflation rate, which measures expected inflation over the next five years, remained relatively stable at 2.33%—roughly unchanged from January FY 2025-26 City of Montclair Preliminary Budget Page 63 of 741 2025, and the lowest level of inflation since 2021—close to the Fed's 2% target.

In fact, consumer products have not seen excessively large increases due to tariff levies, and the price of some goods have decline; instead, however, housing remains the principal driver of inflation.

This divergence between consumer sentiment and market–based measures suggests mixed signals about the inflation outlook, complicating the Fed’s decision–making. The Fed Chairman has consistently emphasized a data– dependent approach, prioritizing evidence that inflation is under control before considering rate cuts. Meanwhile, CEOs from Walmart, Target, and Home Depot have stated tariffs are driving up prices.

Recent data points to a slowing U.S. economy, which could naturally dampen price pressures. The median forecast for Q1 2025 real GDP growth has fallen to 1.2% (annualized), a sharp decline from the 2.5% growth recorded in Q4 2024 by the Bureau of Economic Analysis. Additionally, the S&P Global US Composite PMI for April 2025 registered at 50.9, down from 52.1 in March, indicating a continued slowdown in business activity across manufacturing and services.

The critical question is whether slowing growth will counterbalance tariff–driven inflation. If neither trend prevails, stagflation—slow growth paired with persistent inflation—could emerge.

Even if Americans had been feeling gloomy about the economy over the past year, they continued to spend ahead of tariff impacts, particularly on cars, trucks and auto parts. Nonetheless, the payback has been increasing prices for goods; reduced spending by consumers; declining exports, globally, to the U.S., with the ports of Los Angeles and Long Beach reporting the processing of shipping containers down by as much as 45% from the Asian market early in the second quarter, followed by projected and sustained declines of at least a 10% in incoming cargo in the second half of the year—a prediction that is materializing in the port’s import volumes.

Before implementation of the tariffs, the U.S. was seeing some progress on prices and core inflation, with inflation down the lowest it had been in four years, and retail spending — one of the key drivers in the economy — seeing its biggest jump in more than two years during March 2025, as more people rushed to buy cars and other big–ticket items ahead of new tariffs. Spending at stores, restaurants and car dealerships grew 1.4% in March compared to February, according to May 2025 data released by the U.S. Department of Commerce.

To entice consumers, automakers offered discounts and shoppers rushed to auto lots in anticipation of prices in April. The car data group Cox Automotive had reported March as delivering the hottest new car sales in four years; however, Cox Automotive also predicted the car–buying slowdown resulting from tariff–fueled price increases.

Major retailers and big brands manufacturers also implemented price increases, reduced manufacturing, and have scaled back their financial forecasts for the year.

FY 2025-26 City of Montclair Preliminary Budget Page 64 of 741

5. California Home Sales Show Clear Signs of Slowing in 2025 as Consumers Grow Increasingly Concerned About Personal Financial Outlook. April 2025’s statewide median home price was $910,160, up 2.9% from the previous month, and up 0,7% from $904,010 in April 2024, according to the California Association of Realtors. Existing, single–family home sales were down 3.4% month–to–month, and down 0.2% from April 2024—the lowest in three consecutive months. The decrease in home sales is attributed to economic uncertainty triggered by tariffs, causing California’s housing market to retreat over consecutive months. At the same time, the state’s median home price reached an all–time high—marking the 22nd consecutive month of year–over–year increases. With consumers concerned about their financial outlook and the Fed holding interest rates steady until there is more clarity in the economy, home sales are projected to remain on decline for the near term, and certainly through the current buying season.

Chart 4, below, shows sales and price activity statewide, by region and by county in Southern California.

Chart 4
Median Sold Price of Existing Single–Family Homes
May 2024 Median Sold Price of Existing Single–Family Homes Sales Statewide/Region/County
April March April Price
MTM%
Chg
Price YTY%
Chg
Sales
MTM%
Chg
Sales
YTY%
Chg 2025 2025 2024
Statewide
Calif. Single–family homes $910,160 $884,350 $904,010 2.9% 0.7% –3.4% –0.2% Calif. Condo/Townhomes $670,000 $680,630 $688,000 –1.6% –2.6% 5.2% –2.2% Region
Central Coast $1,090,000 $1,107,500 $1,077,500 –1.6% 1.2% 23.1% 10.5% Central Valley $495,000 $495,000 $493,000 0.0% 0.3% 9.6% 3.4% Far North $380,500 $385,000 $364,950 1.2% 4.3% 3.9% –2.8% San Francisco Bay Area $1,419,000 $1,400,000 $1,444,000 1.4% –1.7% 16.2% –1.4% Southern California $887,000 $877,750 $880,000 1.1% 0.8% 11.1% 1.6% Los Angeles Metro Area 850,000 834,830 840,000 1.8% 1.2% 8.3% –0.5% Inland Empire $611,990 $609,230 607,000 0.5% 0.8% 5.8% 4.6%

FY 2025-26 City of Montclair Preliminary Budget Page 65 of 741 Chart 4
Median Sold Price of Existing Single–Family Homes Continued Southern California Counties
Imperial $405,000 $407,500 $377,500 –0.6% 7.3% 19.6% 34.1% Los Angeles $850,270 $829,260 $825,970 2.5% 2.9% 12.9% –2.6% Orange $1,417,450 $1,450,000 $1,440,000 –2.2% –1.6% 6.1% –4.1% Riverside $645,000 $638,810 $642,000 1.0% 0.5% 0.5% 0.5% San Bernardino $499,500 $522,700 $500,000 –4.4% –0.1% 12.7% 13.5% San Diego $1,015,000 $1,040,000 $1,047,500 –2.4% –3.1% 22.5% 9.4% Ventura $944,500 $940,000 $940,000 0.5% 0.5% 0.3% –4.2%

6. Global Bond Diversification Threatens U.S. Bond Markets. After years of limited investor interest for global bond diversification, 2025 has become a turning point, driven by an emerging lack of confidence in the U.S. dollar and shifting global economic dynamics introduced by U.S. tariff policies. In May 2025, fixed–income securities outside the U.S. outperformed the U.S. investment–grade bond benchmark; e.g., in May, the International Government Inflation–Protected Bond gained 7.6% year–to–date, exceeding the minimal 1.5% rise in the U.S. bond benchmark represented by the Vanguard Total U.S. Bond Index. It is noted, however, that entering into June, U.S. Treasury reported a stronger than expected auction on $69 billion in 2–year notes, but at a higher yield (3.955%) when compared to the previous month (3.695%).

Close behind, short–maturity foreign government bonds in both developed and emerging markets each rose approximately 7%. The weakest–performing foreign bond segment—high–yield bonds from emerging markets still managed a 2.1% increase, surpassing Vanguard’s 1.5% gain.

A primary driver of foreign gains is uncertainty related to the strength of the U.S. dollar and U.S. trade policies. Long–term, the prognosis is that the U.S. dollar will remain first in global finance, primarily because nothing is poised to fully replace it at this time; the nation will, however, experience a decline in dependence from other nations as they look toward other global markets for both trade and defense.

7. Growing Financial Burdens Related to Public Employee Pensions. The current trade conflict has created significant financial burdens for public pension funds, including the California Public Employees’ Pension System (CalPERS). Following announcement of the “reciprocal” tariffs, the nation’s top 25 public employee pension funds saw more than $250 billion vanish from their public equity portfolios in the first few months of 2025, with a staggering $169 billion lost in just five days—from April 3 to April 8, 2025. According to the Equable Institute, a research group focused on retirement systems, the true damage across all U.S. public pension funds is likely far greater, given the ripple effects that carried over to multiple investment platforms.

FY 2025-26 City of Montclair Preliminary Budget Page 66 of 741 CalPERS is the nation’s largest public pension fund, with a total estimated market value of $539 billion. In the days following announcement of the tariffs, the stock market lost $6.6 trillion in value, and CalPERS’ losses hovered around $25 billion.

In the weeks that followed, the pension fund bounced back from a $508 billion– low on April 7, attributed to a pause on tariffs with China for 90–days. Despite the recovery, the CalPERS Board anticipates more volatility and uncertainty ahead, requiring the Board to prepare for serious impacts on CalPERS’ investment returns into next year.

It is the speed of the collapse of public pension funds, in particular, that highlights how sensitive these portfolios are to sudden market shocks. Stocks of companies exposed to international trade—including manufacturers, retailers, and tech giants—plunged as investors fled riskier assets, dragging down the diversified equity holdings that pension funds depend on for growth.

At the start of 2025, U.S. public employee pension funds were already fragile, with an average funded ratio of just 80.2%, while saddled with a collective pension debt of $1.37 trillion—CalPERS’ funded ratio is closer to 72%, with an estimated pension debt of $1 trillion. Average funded ratio, which measures assets against promised payouts, signals that most public pension funds are only partially equipped to cover their long–term liabilities. The massive shortfall in public employee pension funds has intensified cash flow concerns, which could worsen dramatically if the U.S. economy suffers a deepening crisis in the months ahead.

Current economic trends in the economy extend well beyond the stock market, which is why public employee pension funds are not likely to fully recover, even if stock trading returns to or exceeds pre–tariff levels. Public pension funds holdings are diverse, with significant investments in private markets, where pension funds have increasingly turned for higher yields. These private markets have been experiencing and forecasting steep losses in private capital and fixed income assets. For example, at this writing, share prices of giant private capital asset management firms like Apollo Global Management and The Carlyle Group tumbled in excess of 22% since April 2025. Private equity thrives on the profitability of its portfolio companies, many of which are now grappling with trade–disrupted supply chains and shrinking global demand. An estimated 58% of public employee pension fund assets are invested in non–public equities— including private capital, real estate, and commodities. This exposure, under present market conditions, has created significant liability for public employee pension funds. Fixed income, which has also served as a dependable refuge of pension portfolios, is also seeing tariff–driven erosion of its returns.

Prior to announcement of the “reciprocal” tariffs in April 2025 private equity markets were experiencing a surge in popularity among financial advisors and investors, with forecasts for significant growth over the next several years. The trend toward private equities, particularly among public employee pension fund administrators, reflects a broader diversification and pursuit of higher returns beyond traditional markets, according to Adams Street Partners – Advisor Outlook 2025. An estimated 92% of private equity asset holders projected superior performance over public markets over the long term. However, these markets have proven particularly volatile during this current period of uncertainty; FY 2025-26 City of Montclair Preliminary Budget Page 67 of 741 furthermore, private equity markets lack a base of expertise, with only 23% of clients and 47% of investors claiming adequate knowledge of how these markets perform.

Even real estate, which presently comprise an estimated 9% of public employee pension fund assets, has also devolved into an investment risk. The FTSE NAREIT All Equity Real Estate Investment Trust (REIT) Index is significantly below 2024 earnings, and dropped 7.4% since early 2025. Long–term, tariffs on materials like steel, aluminum and lumber are inflating construction costs, which could potentially make new construction significantly higher over time.

Within the framework of an economic slowdown, federal tariff policy has contributed toward a decline in demand for offices, stores, and new homes, which may drag down rents and ultimately affect property values.

The longer–term impact of federal economic policies will ultimately determine how public employee pension funds balance out. In the short–term, certain public employee pension systems are being hit harder than others; e.g., the New York City Public Pension Funds, Florida Retirement System, and CalPERS, which were already grappling with average funded ratio status and other performance concerns, are now grappling with a potential national crisis, creating an urgency for the funds and local governments to grapple with. Weak balance sheets will ultimately trigger larger payments from member agencies, and these state and local government are already coping with shrinking revenues, limiting their ability to contribute toward pension fund increases.

On September 20, 2021, in an effort to control its PERS–related costs, the City Council adopted Resolution No. 21–3321, approving the issuance of pension obligation bonds (POBs) and transferring debt from the City's California Public Employees' Pension System (CalPERS) Unfunded Accrued Liability (UAL) account to the POB—the UAL is a debt owed to CalPERS for pension liabilities that are not paid for either by CalPERS investments or through the normal cost rate payments made by employees and employers. CalPERS assigns UAL based on each agency's respective, unfunded pension liabilities. The value of the City's 2021 Issue of Pension Obligation Bonds was $62,190,000.

The Pension Bonds allowed the City to stabilize its annual payment to CalPERS, while at the same time providing the opportunity for the City to annually payoff any accrual to unfunded liabilities in future years. However, CalPERS has advised that for Fiscal Year 2025–26, Montclair’s adjusted unfunded liability payment will be approximately $2.25 million, rising to a projected $3.6 million in Fiscal Year 26–27—increases the City did not anticipate (see the below discussion on the UAL/POB Amortization Fund).

The Fiscal Year 2025–26 proposed allocation to the 2021 Issue of Pension Obligation Bonds Debt Service Fund is $4,438,996. Annualized payments on the 2021 Pension Obligation Bonds will be similar to previous year payments, and will continue thru maturity in June 2041.

FY 2025-26 City of Montclair Preliminary Budget Page 68 of 741 Refinancing of the 2021 Issue of Pension Obligation Bonds is not available any earlier than November 2031. City staff recommends that refinancing be considered only under the following circumstances:
 Available interest rates at the time of refinancing would produce a lower annual repayment and there is no net increase to the debt service; and  The City Council intends to refinance the 2021 Issue of Lease Revenue Bonds to finance any unanticipated, significant increase in the UAL.

Committing General Fund Revenues for debt service provides assurance to credit raters and bond holders of the City's fiscal capacity to meet its debt service obligations. Meeting debt service obligations with a commitment of funding is essential to maintaining and improving the City's bond rating, which in turn improves the City's creditworthiness, facilitates access to lower interest rates on future bond issues, and helps achieve a lower fiscal risk rating by the California State Auditor’s Office.

Annually allocating General Fund Revenue to a separate Debt Service Fund, as outlined herein, effectively removes debt service for the 2021 Issue of Pension Obligation Bonds as an obligation of the General Fund Operating Budget. It is important to realize, however, that annual debt payment on the 2021 Issue of Pension Obligation Bonds continues to remain an obligation of the Total Operating Budget.

Through the issuance of POBs, Montclair achieved the following:
 Improved its control over the level of annual payments required for UAL debt service;
 Enhanced local capacity to plan for the City's pension expenses for budgeting purposes, while concurrently producing short– and long–term savings vis–à–vis annual UAL payments to CalPERS; and
 Expanded the City's capacity to maintain and improve services, programs, working conditions, and the City's fiscal profile.

The City Council also adopted a Pension Policy that endorsed creation of a UAL/POB Amortization Fund to address any new UAL while the POBs remain outstanding. As adopted, the UAL/POBAF uses the Fiscal Year 2021–22 CalPERS UAL payment of $5,761,184 as its base year for defining UAL payments, minus the 2023 POB Debt Service payment of $4,342,705 to establish a minimum annual General Fund contribution to the UAL/POBAF.

Pursuant to City Council policy established with adoption of the Fiscal Year 2022– 23 Operating Budget, the UAL/POBAF will be used over the twenty–year POB payment cycle to achieve the following objectives:

FY 2025-26 City of Montclair Preliminary Budget Page 69 of 741  Annually service any new growth in the UAL;
 Reduce the amortization period on the POB by paying off the bonds early; and/or
 Further reduce accruing interest that adds to the base UAL.

The 2021 Issue of Pension Obligation Bonds has greatly assisted the City in controlling unfunded pension liabilities; however, normal cost increases and new unfunded liabilities continue to accrue on an annual basis—increases that are projected to continue over the next fifteen to twenty years when lower pension costs related to PEPRA’s reduced pension formulas (2.7% @ 57 for public safety members and 2% @ 62 for miscellaneous members, both at three–year final compensation for calculating retiree annuities) for employees hired on or after January 1, 2013, dominate CalPERS’ active and annuitant participants. Strategic budget planning for known (and unknown) cost increases related to CalPERS’ normal and unfunded cost rates is essential to the City's long–term fiscal health and avoidance of penalties related to any inability to meet payment obligations.

While changes made to public employee pension formulas under PEPRA are considered important long–term pension reform features, an analysis of PEPRA impacts indicates that PEPRA has created shortfalls in CalPERS’ unfunded pension liabilities—in part because of diminished normal rate employer contributions under reduced formulas.

Other PEPRA–related forms, including caps on retirement earnings and averaging final compensation over three years will reduce long–term costs and future unfunded liabilities over the next twenty years, but will have little impact on current unfunded liabilities for the near future. The City Council’s decision, then, to issue the 2021 Issue of Pension Obligation Bonds, was the correct decision because it provides the City the ability to control the interest on new, unfunded liabilities, and pay off those accruing liabilities on an annual basis without the accumulation of interest. Annual payments on the 2021 Issue of Lease Revenue Bonds are capped, at a lower interest rate, allowing the City the ability to pay down the accrued unfunded liability over twenty years, while paying off new unfunded liabilities, without accumulating interest, on an annual basis.

In order to provide for covering unanticipated increases in the UAL the City Council, in Fiscal Year 2021–22, established the UAL/POB Amortization Fund (UAL/POBAF), a Special Purpose Reserve Fund established as part of the City Council's adopted Pension Policy. The fund incorporates funds set aside pursuant to the following formula:
 The UAL/POBAF uses the Fiscal Year 2021–22 CalPERS UAL payment of $5,761,184 as its base year for defining UAL payments, minus the 2023 POB Debt Service payment of $4,342,705 to establish a minimum annual General Fund contribution of $1,418,479, deposited annually into the UAL/POBAF.

FY 2025-26 City of Montclair Preliminary Budget Page 70 of 741  The UAL/POBAF will, in turn, be used over the twenty–year POB maturity period to achieve the following objectives:
o Annually service any new growth in the UAL;
o Reduce the amortization period on the POB by paying off the bonds early; and/or;
o Further reduce accruing interest that adds to the base UAL.

The $4,030,959 allocated to the UAL/POBAF allocated to the UAL/POBAF for Fiscal Year 2025–26 represents current funding status pursuant to the UAL/POBAF Pension Policy. The City Council is advised, however, that going forward, the UAL/POBAF will require an additional fusion of General Fund Revenue annually to keep up with the growing pace of UAL increases stemming from losses and projected losses sustained by CalPERS related to the Fund’s investment portfolio.

For Fiscal Year 2025–26, City staff projects that the UAL/POBAF will require a payment of $2.4 million, followed by a projected, adjusted payment of $3.6 million in Fiscal Year 2026–27. The City Council should expect additional UAL increases at least through 2030.

8. State Tax Laws and Their Effect on County Pools and E–Commerce Sales.

Seven years ago, after the U.S. Supreme Court issued its 2018 landmark decision in South Dakota v. Wayfair, Inc. (“Wayfair”), clearing the way for states to collect taxes from online (e–commerce) sales, cities throughout the nation celebrated the ruling, anticipating revitalization of local businesses and recaptured sales tax revenues that dried up when e–commerce shopping captured consumer interest.

Prior to the “Wayfair” decision, the Supreme Court had ruled that states may not require an e–commerce business that has no physical presence in the State to collect its sales taxes.

The celebration, at least in California, did not last long. Due to a quirk in California law that determines the “sourcing” and distribution of sales and use tax revenues, fewer than 10% of California cities (approximately 40) are reaping significant tax revenue benefits from e–commerce sales at the expense of the rest of the state’s 482 cities and towns.

Under California law, sales and use taxes are distributed to cities based on point of sale (POS); i.e., the location at which a customer makes a payment in exchange for goods—also known as destination–based sourcing. For example, when goods are physically purchased at a Montclair store, Montclair becomes the POS and the state distributes to Montclair its 1% share of sales taxes from the purchase. Under California’s 1% local share Bradley–Burns sales tax formula, of the state’s 7.25% standard sales tax rate, 1% is distributed back to the community where the sales tax was paid as a local source tax. Most states use destination–based sourcing rules for sales and use tax transactions—both brick–and–mortar and online sales.

A separate provision of California law, however, allows that in relation to e– commerce transactions conducted within the state, the designated POS can be the FY 2025-26 City of Montclair Preliminary Budget Page 71 of 741 city in which the warehouse or fulfillment center is located—even though the warehouse/fulfillment center serves as nothing more than a product storage site or as a center for shipping products to buyers both inside and outside the host community.

Under the POS process, when a Montclair resident buys a product online and has it delivered to their home, the sales tax from the e–commerce purchase goes to the city where the warehouse/fulfillment center is located, even though the purchase and delivery of goods both occur in Montclair.

Large warehouse/fulfillment centers require huge tracts of land to construct their facilities—land that is available in only a handful of California’s cities. To date, there are an estimated 40 cities out of the 482 municipalities in California that have entered into sales tax sharing agreements with various e–commerce vendors, providing these cities with extraordinary tax benefits that will continue to grow as shoppers trend toward e–commerce purchases over traditional brick– and–mortar.

In order to entice e–commerce retailers to relocate their sales offices to, or open warehouse/fulfillment centers in, their communities, cities with available land tracts, and supporting logistics and infrastructure, entice these businesses to locate within their borders by offering financial incentives through the use of sales tax sharing agreements—agreements that promise to share with the targeted e– commerce business up to 75% of sales tax revenues for a designated period of years—often up to 25– to 50–years—with options for extensions.

In effect, tax sharing agreements allow host cities to partner with e–commerce retailers to dominate the online retail marketplace and share billions in tax dollar revenues with these highly capitalized companies, all at the expense of the vast majority of California cities and their populations.

Unfortunately, the dominance of these 40± cities in the e–commerce market is only expected to grow as online sales continue to expand and encroach on the retail marketplace traditionally held by brick–and–mortar stores. This e– commerce dominance is drawing away billions in annual tax dollars from the vast majority of California’s municipalities.

To make matters worse, use tax revenue generated by online sales from state–to– state are allocated into county pools where, under a defined formula based on each cities per capita share of total sales tax revenues within each county, the funds are distributed to cities. As it turns outs, the per capita share of total sales tax formula benefits those very same cities that are already seeing their sales tax revenues increase because of existing sales tax sharing agreements and the location of fulfillment centers within their administrative boundaries; i.e., those cities are also seeing their distribution share of use taxes from county pools increase at the expense of those cities without fulfillment centers.

While the use of tax sharing agreements is legal under authority granted to local governments in the California State Constitution to manage municipal affairs, they FY 2025-26 City of Montclair Preliminary Budget Page 72 of 741 represent special deals for wealthy companies at the expense of cities that may lose tax revenues due to archaic California tax sourcing rules.

Tax sharing agreements typically (i) apply only to the 1% local share of California’s

7.25% Bradley Burns sales tax rate—although they could also apply to any local district tax rate specified in a tax sharing agreement between the host city and company; and (ii) split the 1% Bradley Burns local share between the governing agency and the company based on an agreed to formula, for an agreed period of time.

The emerging dominance of online sales is adversely impacting brick–and–mortar stores, many of which are permanently closing due to a realignment by shoppers who are shifting heavily to an online economy for professional, personal and family purchases. As a result, the majority of California’s local municipal treasuries are seeing declining sales tax revenues—revenues that are relied upon to serve residents of their respective communities.

According to the U.S. Census Bureau, in 2024, nationwide e–commerce sales totaled $1.340 trillion—the fourth quarter, alone, surpassed $309 billion in e– commerce sales, representing 16.4% of total U.S. retail sales—the highest quarterly sales earnings in history.

As indicated in Chart 5, below, online sales are expected to reach $1.839 trillion in 2029.

Chart 5
Revenue of the e–commerce industry in the U.S. 2019–2029 Chart provided by Statista, an online platform specializing in data gathering and visualization California cities entering into sales tax sharing agreements argue that they are providing services to e–commerce businesses locating to their communities, and therefore warrant the reallocation of sales tax revenues. However, when it comes FY 2025-26 City of Montclair Preliminary Budget Page 73 of 741 to e–commerce, every California city must provide services to the vast network of trucks, vans and cars that use public facilities for both the large shipment of goods and the direct delivery of products to homes and businesses—and approximately 90% of cities do it without the benefit of tax receipts to maintain that service infrastructure. Furthermore, many cities not sharing in e–commerce sales tax revenues continue to host, and provide services to, ancillary support facilities connected to the e–commerce businesses lured away by tax sharing agreements. Montclair, for example, is traversed by the Union Pacific Railroad (UPR) and its fleet of rail cars that deliver packages and goods to area fulfillment centers. UPR train cars routinely stop in Montclair at railroad spurs, where they become the target of vandals and thieves; which in turn requires nearly daily responses from Montclair’s Police and Code Enforcement personnel.

While the use of tax sharing agreements is legal under authority granted to local governments in the California State Constitution to manage municipal affairs, their use to entice e–commerce businesses to locate in land–rich communities typically represent “special deals” between wealthy companies and their host cities.

In reviewing the issue of tax sharing agreements that incorporate “special deals”, the California Fair Political Practices Commission (FPPC) has opined that large e– commerce operators benefit from the very policy they assist local government agencies in developing, and for which they provide advice—a financial relationship that casts doubt on the legality of the tax sharing agreements.

The California Legislature recognized this conflict when it banned cities from using tax sharing agreements to lure big–box retailers and car dealers to their communities with the use of financial incentives. In 1999, the Legislature passed Chapter 462, Statutes of 1999 (AB 178), which required a community that uses financial incentives to lure a big–box retailer or auto dealer from a neighboring community to offer the other community a contract apportioning the sales taxes generated by the business between the two jurisdictions. The provisions of Chapter 462 were replaced by tougher restrictions in 2003, with the enactment of Chapter 781, Statutes of 2003 (SB 114). This measure prohibits a community from providing any form of financial assistance to a vehicle dealer or big–box retailer relocating from a neighboring community.

However, because SB 114 did not address e–commerce businesses, California’s nonpartisan Legislative Analyst’s Office has opined that, for now, cities can use financial incentives to encourage other types of businesses to relocate within their borders. Through these “special deal” arrangements, the e–commerce companies agree to direct e–commerce–related sales taxes to their host cities in exchange for a percentage share of those same tax dollars.

It is clear that California’s Legislature must reform the state’s hybrid or blended methodology that determines local sourcing for e–commerce taxes. A revised tax sourcing policy should take into consideration the extraordinary growth in e– commerce by directing sales tax revenues derived from online purchases to the communities where buyers live—this is the tax sourcing methodology used by nearly every other U.S. state.

FY 2025-26 City of Montclair Preliminary Budget Page 74 of 741 While there have been several legislative attempts at reform, they have either not garnered the necessary support or are only half–way measures.  In 2019 Assembly Bill 485 became law, requiring public disclosure related to tax sharing agreements.
 In 2019 Senate Bill 531, which would have banned future tax–revenue– sharing deals, was vetoed.
 Introduced in 2021, Senate Bill 792 targeted tax sharing agreements, but it too was vetoed.
 In 2024 S.B. 1494 promised to ban sales tax sharing agreements starting retroactively on January 1, 2024, and require existing agreements to end by 2030—the bill was ordered to inactive file by the author.  Signed into law in 2024, A.B. 2854 focuses on the transparency of information that’s now accessible to the state, local districts, cities, and residents related to monies that are part of shared agreements between a few dozen California cities and either large retail chains or other businesses. The law requires California cities and counties to annually provide specified information to the California Department of Tax and Fee Administration (CDTFA) and on their respective websites relating to each agreement that results in the direct or indirect payment, transfer, diversion, or rebate of “Bradley–Burns” sales and use tax revenues, as specified.

The League of California Cities (Cal Cities) recently presented a prospective plan that targets sales tax sharing agreements in order to reduce competition for situs– based sales tax revenue between cities. Key elements to the plan include the following:
 20–year cap on the duration of sales tax sharing agreements.  50% cap on rebates to participating businesses entering into sales tax sharing agreements.
 Enhanced transparency and public review.
 Changes to county pool allocation.
 Preservation of the existing situs–bases sales tax under the Bradley Burns 1% baseline. Includes a 50/50 split of Bradley Burns sales and use tax revenues generated from e–commerce transactions, plus or minus 10% to allow for flexibility. Revenues presently derived from existing sales tax sharing agreements would not be subject to 50/50 split. In modeling the 50/50 split, the California Department of Tax and Fee Administration (CDTFA) determined that, presently, it can only capture 61% of online sales FY 2025-26 City of Montclair Preliminary Budget Page 75 of 741  County pools’ use tax dollars redirected to destination city—where the package is delivered.
 Five–year phase–in, post CDTFA implementation.
 Strive for prospective, fair, and equitable sales tax revenue sharing practices and policies that benefit the sustainability of all cities.  Consider the regional impact to infrastructure, land use, environmental quality, and public health stemming from e–commerce, as well as the financial dependence of communities on resulting revenues.

Based on modeling from the CDTFA, the Cal Cities proposal presents the following areas of concern:
 Of the 483 cities in California:
o 255 are projected to gain revenue.
o 105 are projected to lose revenue.
o 123 lack sufficient data to make a determination.
o Cities with few storefronts (rural communities) gain the most. o Higher income and lower income cities tend to receive more. o Cities with fulfillment centers tend to lose.
o Cities with retailers with a large percentage of online sales shipped to, or delivered by the store may gain.
o County pool distributions based on destination agency are more equitable; however, agencies presently receiving skewed pool shared due to e–commerce fulfillment would likely not benefit.

Whether or not the state Legislature takes up the Cal Cities proposal, tax reform related to online sales is necessary. Montclair has long advocated a simple fix— amending state law to move the point of taxation for online sales from where the business operates to where the buyer lives (where the product purchase online is shipped to)—the way most other states already apply remote sales taxes because it is considered fair, particularly in relation to the rise in e–commerce transactions.

In October 2021, the State Comptroller of Texas implemented a similar fix (changing the point of taxation for e–commerce to where the buyer lives) when it adopted Rule 3.334, changing the source sales tax revenue from online purchases to the buyer’s location instead of the seller’s place of business. The City of Round Rock. Texas sued, arguing the rule change conflicted with the plain language of the Texas Tax Code, which states: “A sale of a taxable item occurs within the FY 2025-26 City of Montclair Preliminary Budget Page 76 of 741 municipality in which the sale is consummated. A sale is consummated as provided by this section regardless of the place where transfer of title or possession occurs.”
More significantly, the Texas Tax Code states, “If a retailer has only one place of business in this state, all of the retailer’s retail sales of taxable items are consummated at that place of business.”
In December 2024, the 250th Civil District Court of Travis County issued a final judgment in a consolidated lawsuit brought by Round Rock and five other Texas cities challenging the Texas Comptroller. The court largely ruled in favor of the cities because the rule changes would have altered the definition of where sales tax revenue is sourced for certain internet orders. In addition, the court ruled that the Comptroller failed to comply with procedural requirements and did not provide sufficient evidence that fulfillment centers can be declared places of businesses.

The Texas Comptroller intends to address the procedural issues, redo the process of publishing the rule to offer sufficient public notice and opportunities for comment, and further analyze the economic impacts associated with the rule change.

As discussed above, the transition to remote sales tax collection has come into conflict with sales tax–sharing agreements elsewhere in the country, particularly in California. It is important to realize, however, that while chilling, the decision in Round Rock is not precedent setting, but does offer observational lessons for any challenge in California. It is also noted that California’s tax code does not contain the same language found in the Texas Tax Code. Nonetheless, California Legislators have demonstrated reluctance in forcefully addressing the matter.

In the meantime, as many as 433 California cities, including Montclair, are now preparing for potential revenue losses while the issue of local tax sourcing remains unresolved. Without change, the vast majority of state taxpayers are paying local sales taxes that are not going to their local communities and, instead, are going to other cities and, through sales tax sharing agreements, to the bottom–line profit of businesses like Amazon.

In order to ensure the public health and safety of cities throughout California, the State Legislature must resolve to address the issue of local sourcing and/or tax sharing agreements and restore equity among cities.

What if there is no Legislative fix? Online retailing in the United States has always been dominated by domestic companies, with Amazon holding an estimated two– fifths of the online shopping market, while its competitors have shares ranging from one to six percent; e.g., in 2023, Amazon generated approximately $135 billion via retail e–commerce sales in the U.S., compared to Walmart, which generated an estimated $65 million U.S. dollars. Apple, The Home Depot, and Target are other top–tier companies for online sales.

FY 2025-26 City of Montclair Preliminary Budget Page 77 of 741 Two emerging foreign companies, Temu and Shein, could represent a growing e– commerce market threat to Amazon’s dominance, particularly for those shoppers looking for affordable options. Temu emerged as the most downloaded shopping app in the U.S. in 2023, with nearly 123 million downloads, surpassing Amazon by a fivefold margin. Shein, a fast–fashion marketplace, ranked second, with around 37 million app downloads.

Despite their popularity in terms of app downloads, Temu and Shein have not yet outperformed the top U.S. companies in terms of e–commerce revenue. Further, sells from both Temu and Shien recently fell victim to the Trump Administration’s tariffs on overseas orders. A century old de minimis exemption rule, increased in 2016 from $200 to $800, that allowed packages worth under $800 to be shipped into the U.S. duty–free has been eliminated. That rule had allowed for the recent, massive growth of the two retailers, which had gained popularity from their offering of rock bottom prices on everything from designer knockoff clothing to gaming monitors shipped directly to consumers from overseas warehouses.

The change to the de minimis exemption rule allowed for a surge in shipments to the U.S. from 139 million shipments in 2015 to more than 1.36 billion shipments in 2024 according to the U.S. Customs and Border Protection, accounting for 90% of all shipments to the U.S. In an effort to keep up with the competition, Amazon built its own shipping from China marketplace to mixed results.

The de minimis rule had received bipartisan scrutiny in recent years, with members of Congress alleging that it was used to aid drug traffickers to move small packages containing chemicals used to produce fentanyl, with the number of packages too great for careful inspection. However, the rule was also opposed by U.S. based businesses, arguing it represented an unfair loophole exploited by foreign competitors. The Biden Administration proposed rules to significantly narrow the de minimis exception, but the new tariff rules under the Trump Administration have closed it entirely.

Ending the de minimis exemption is potentially harmful for online discounters due to the tariffs and new administrative fees which can average over $20 per package, costing consumers an estimated $11.4 billion in new fees. The tariffs and fees are presently subject to lawsuits.

Temu, Shein and similarly situated companies are expected to create a U.S. presence to continue direct sales of their discounted products to online shoppers seeking a more affordable experience than what is available through Amazon.

City staff intends to explore the potential for attracting Temu or Shein to warehouse facilities in Montclair.

For comparison purposes, recent data for the San Bernardino County Use Tax Pool saw both Temu and Shein up by 16% and 24% respectively, while Amazon Fulfillment Centers saw a 6% decrease. Other online vendors contributing to the San Bernardino County Pool also saw significant increases in comparison to Amazon.

FY 2025-26 City of Montclair Preliminary Budget Page 78 of 741 Though stores like Walmart and Target do not have the same, robust online sales enjoyed by Amazon, capturing a store like Walmart can also increase both brick– and–mortar and online sales tax revenues for Montclair. In that regard, City staff will explore areas in Montclair’s sphere of influence for redevelopment and annexation potential where a Walmart or similar store could potentially locate.

Pursuant to state law (discussed above), big box stores like Walmart and Costco are prohibited from entering into sales tax sharing agreements with local governments; therefore, online Bradley Burns sales/use tax revenues go to the state and county pools where they are distributed proportionately to local agencies; however, in–store sales taxes, plus district taxes for both online and in– store, remain with the host city.

Walmart and Target enjoy a marriage of e–commerce with their brick–and–mortar locations, which has growing appeal to shoppers. This change in consumer shopping is forcing Amazon to invest heavily in its own store network, with more than 3,600 locations according to the International Council of Shopping Centers (ICSC). Following Target and Walmart, Amazon is also migrating to a click–and– collect option for small and medium–sized businesses. Shoppers can buy selected items on Amazon’s site and pick them up the same day at a local store, or sellers may offer same–day delivery using their own drivers and equipment.

Despite Amazon’s migration to a “click–and–collect” option, both Target and Walmart are finding traction with the one thing Amazon lacks—a brick–and– mortar network. Targets click–and–collect business had been booming at its almost 1,900 U.S. stores. Walmart has the advantage that its fulfillment/distribution infrastructure is much bigger than Amazon’s (an estimated 150–plus centers versus 110 for Amazon), and it has 4,700 retail locations where click–and–collect orders can be collected. Target fulfills nearly all of its online orders at stores.

Neither Target nor Walmart represent an imminent e–commerce threat to Amazon, which still dominates e–commerce with a market share of about 40 percent versus 7 percent for Walmart, and 2.2 percent for Target. What is notable, however, is that their e–commerce businesses are growing faster than Amazon’s, or any other of the top 10 U.S. retail ecommerce companies. Amazon’s e– commerce business has been growing at about 15 percent a year. Walmart’s is up 21 percent and Target grew its online sales by 23 percent.

Amazon has also been closing or scaling back locations across California and other states. In California, the company has also had to deal with labor unions and a number of employment law violations, leading to the closure of even more facilities. Many of the facilities closing also represent moves to larger, more advanced facilities, particularly facilities ringed around major cities. The Inland Empire, for example, has been a primary focus by Amazon for warehouses and fulfillment centers, with the City of Ontario being a significant draw because of cargo airlines operating out of the airport.

FY 2025-26 City of Montclair Preliminary Budget Page 79 of 741

9. Downgrade to U.S. Creditworthiness. For the first time in a century, Moody's Rating Service, in mid–May 2025, announced that it downgraded the U.S.'s creditworthiness to Aa1 from Aaa—the latter representing Moody’s highest rating—citing the growing burden of financing the federal government’s budget deficit and the rising cost of rolling over existing debt amid high interest rates.

Moody projected federal deficits to widen, reaching nearly 9% of Gross Domestic Product (GDP) by 2035, up from 6.4% in 2024, driven mainly by increased interest payments on debt, entitlement spending, and relatively low revenue generation.

The U.S. had previously reached that level of debt only during times of global crisis—e.g., World War 2, the 2008 financial crisis and the COVID–19 pandemic.

Moody’s also anticipates that the federal debt burden will rise to about 134% of GDP by 2035, compared to 98% in 2024. According to Moody's, “Successive US administrations and Congress have failed to agree on measures to reverse the trend of large annual fiscal deficits and growing interest costs;” further, the bill for the Trump Administration’s domestic agenda is projected to add $2.4 trillion to the national debt over the next 10 years, according to a new estimate from the nonpartisan Congressional Budget Office.

Moody’s had been a holdout in keeping U.S. sovereign debt at the highest credit rating possible, and brings the rating service into line with its rivals: Standard & Poor’s downgraded the U.S. to AA+ from AAA in August 2011, and Fitch Ratings also cut the U.S. rating to AA+ from AAA, in August 2023. Moody’s rated U.S. bonds in 1993 for the first time, and has assigned a “country ceiling rating” of Aaa since 1949.

The decision, aligning Moody’s with Fitch Ratings and S&P Global Ratings reflects deepening concerns over the U.S.’s current $36 trillion debt and rising interest payment burdens, which Moody’s notes are significantly higher than those of similarly rated nations.

Further, a weak 20–year auction on bonds generated concern that a retreat in foreign demand for U.S. debt would make it difficult for the U.S. to manage its debt burden over the long–term. The U.S. is running a massive budget deficit as interest costs for Treasury debt continued to rise due to a combination of higher rates and more principal debt to finance. The fiscal deficit in the year that began October 1 is already running at $1.05 trillion, 13% higher than a year ago. Revenue from tariffs will, however, offset some of that increase.

While the Aa1 rating remains a sign of economic strength, it is the loss of triple– A status that may serve as a potential warning of declining U.S. fiscal health. The economic size of the U.S. and the dollar’s global dominance may, however, continue to serve as counterbalance to what might otherwise be perceived as a U.S. assets market in a state of decline.

Nonetheless, Moody’s decision to lower the United States’ credit profile is expected to lift the yield that investors demand in order to buy U.S. Treasury debt—lifting the yield reflects more risk, and could dampen sentiment toward owning U.S. assets. This concern demonstrated itself in late May 2025 when the U.S. stock market took a sudden drop when the 10–year Treasury yield FY 2025-26 City of Montclair Preliminary Budget Page 80 of 741 approached 4.6% over concerns related to U. S. tariff policy and passing of the "One, Big, Beautiful Bill" by the House of Representatives.

According to findings from the CBO, the bill, if approved intact in the Senate, would also achieve the following major changes:
o Expand the special depreciation allowance to spur U.S. manufacturing investment and extend it, for the first time, to commercial real estate; o Increase to the state and local tax (SALT) deduction cap, currently written as $30,000;
o Expand a tax break known as a bonus or special depreciation allowance to spur U.S. manufacturing investment.
o Decrease household resources for the poorest Americans by 2% in the short term, and 4% by 2033 as additional GOP cuts take effect; o Increase household resources for the wealthiest Americans by 4%, due almost entirely to tax breaks contained in the bill;
o Increase the budget deficit by $3.8 trillion over the decade, while changes to Medicaid, Supplemental Nutrition Assistance Program (SNAP) and other services would tally $1 trillion in reduced spending—budget bill accounting seeks to address the $3.8 trillion deficit increase by assuming $2.5 trillion in assumed economic growth—however, tax cuts passed in President Trump’s first term failed to produce projected earnings; o Cut roughly $700 million from Medicaid—which could cause an estimated 8 million people to lose health insurance coverage, and number that could rise to 15 million based on other provisions in the bill; and o Cut $267 billion from SNAP, affecting an estimated 42 million low–income people.

The CBO analysis has determined that the bill's addition to the deficit would trigger a process known as sequestration under the Statutory Pay–As–You–Go (PAYGO) Act of 2010, a law that requires spending cuts equal to the legislation's average deficit impact. Unless lawmakers offset the deficit impact or agree to waive the PAYGO requirements—which the bill presently does not do—the Office of Management and Budget (OMB) “would be required to issue a sequestration order not more than 14 days after the end of the current session of Congress (excluding weekends and holidays) to reduce spending by $230 billion in fiscal year 2026,” according to the CBO. Under PAYGO, automatic Medicare cuts are capped at 4%. The CBO estimates that the legislation would trigger roughly $45 billion in Medicare cuts in 2026 and a total of $490 billion in cuts to the program between 2027 and 2034. The official figure that CBO confirms is $535 billion in cuts to Medicare.

FY 2025-26 City of Montclair Preliminary Budget Page 81 of 741 Moody’s also downgraded the long–term senior unsecured debt ratings of Fannie Mae and Freddie Mac to Aa1 from Aaa, acknowledging that their credit profiles are explicitly tied to a weakened federal credit standing. Moody’s noted that both Government Sponsored Enterprises (GSEs) continue to play outsized roles in housing finance, guaranteeing an estimated 20–25% of newly originated single– family mortgages and holding roughly a quarter of outstanding single–family mortgage debt. What has changed with the downgrade is the federal government’s ability to stand behind them with a previously unquestioned Aaa rating. The GSE downgrade also extended to the Federal Home Loan Bank System and its 11 regional banks.

Similar to the downgrade in U.S. Creditworthiness, Moody’s is not the first to take action. After Fitch downgraded the U.S. sovereign rating in August 2023, it quickly followed with downgrades to certain Fannie Mae and Freddie Mac Credit Risk Transfer (CRT) securities, citing their reliance on federal backing. S&P’s historic U.S. downgrade in 2011 didn’t directly affect GSE ratings; it did, however, highlight how tightly intertwined the markets are.

According to Moody’s, the downgrade to Fannie and Freddie sends the message that, as the government’s fiscal credibility evolves, so too does the perception of its ability to support the mortgage market’s most critical institutions.

10.Fears of Recession. As the U.S. economy grapples with shifting trade policies, economic uncertainty, and market volatility, concerns about the potential for recession or stagflation have cycled up and down from week to week. Economists have pointed to various economic indicators as the source of recession–concern, including declining consumer confidence, rising unemployment forecasts, the impact of recent tariff policies, and the potential for retaliation from U.S. trading partners. President Trump, in early May, said he would not rule out the possibility of a recession.

The latest Federal Reserve Board – Beige Book underscores a key tension facing Federal Reserve policymakers: inflationary pressures tied to tariffs are rising, even as broader economic activity softens and labor market conditions cool.

With price hikes increasingly expected by businesses and a resurgence in cost pass–through, the Fed may find it harder to justify rate cuts in the near term— especially if tariff–driven inflation proves persistent. At the same time, stagnating employment and soft consumer spending bolster the case for policy accommodation to cushion growth risks.

U.S. economic activity declined slightly since the Federal Reserve’s last Beige Book, with six of 12 districts reporting modest slowdowns and the remainder showing either no change or slight growth, based on data collected through May 23, 2025.

Uncertainty surrounding the Trump Administration’s evolving tariff policy weighed heavily across all districts, with businesses and consumers alike exhibiting caution.

FY 2025-26 City of Montclair Preliminary Budget Page 82 of 741 Although the national outlook remains slightly pessimistic overall, several districts reported marginal improvement, while others signaled a worsening outlook. Consumer spending, which drives more than two–thirds of GDP, was largely flat or slightly down, though some districts reported consumers accelerating purchases of goods and large purchase items like cars—products likely to be affected by new tariffs.

Price pressures increased moderately across most regions, driven by rising input costs linked to tariffs. Businesses responded in varied ways, including selective or broad–based price hikes, margin compression, and temporary surcharges.

Several districts characterized these cost increases as “substantial,” and many firms expect to pass on higher prices within the next three months.

The labor market remained subdued, with employment largely flat across most districts. Three reported slight–to–modest increases, and two saw slight declines.

All districts pointed to weakening labor demand, citing reduced hours, hiring freezes, and planned layoffs.

The central bank is likely to stay on hold in the coming meetings, adopting a wait– and–see approach until it can better gauge the impact of policy uncertainty and trade actions on the inflation–growth tradeoff. A protracted period of “higher–for– longer” interest rates could persist unless labor weakness broadens, or financial conditions tighten abruptly.

While the above indicators point to a slowdown, others suggest resilience.

Recession, itself, is defined as a significant decline in economic activity that lasts for an extended period, typically two consecutive quarters of negative Gross Domestic Product (GDP) growth, and is commonly triggered by financial crises, high interest rates, or significant drops in consumer confidence, and often follow periods of expansion. A weakening housing market, rising bankruptcies, and tightening credit markets also raise red flags.

Stagflation, on the other hand, is an economic condition that combines stagnant economic growth, high inflation, and high unemployment. It is a rare phenomenon where inflation rises even as economic growth slows, leading to a challenging environment for policymakers. Stagflation is often caused by supply shocks or poor economic policies that lead to increased money supply without corresponding economic growth.

Are current economic indicators predictive of recession?  GDP Growth Concern. The U.S. just recorded its first quarter of negative GDP growth (–2.4%) since 2022. Economists could argue the nation will have entered a recession if the second quarter of 2025 registers a negative GDP. However, the National Bureau of Economic Research is the most commonly cited determiner of recessions, and it defines recession as a “significant decline in economic activity that is spread across the economy and lasts more than a few months.” That means the U.S. economy could FY 2025-26 City of Montclair Preliminary Budget Page 83 of 741 technically avoid sinking into an all–out recession, even if Q2 GDP is negative, or if it recovers quickly. Typical indicators of a recession are declines in consumer spending, business investment, and employment rates. Unemployment rises because businesses cut back on hiring, or they lay off workers due to decreased demand.
 Consumer Confidence. Perhaps the most concerning signal is a breakdown in everyday Americans’ conviction in the economy. The Conference Board’s Consumer Confidence Index closely watched consumer confidence survey dropped in April 2025 to its lowest level since 2020, and the University of Michigan’s consumer sentiment survey registered its largest three–month decline since 1990 from January to April. But spending has held up, as March retail sales grew by 1.4% from January to February, according to a report released April 16 by the Census Bureau—better than the 1.2% month–over–month increase projected by economists. However, economists argue that spending was up because consumers were buying ahead of tariffs. Nonetheless, a decline in confidence can lead to reduced consumer spending, further slowing economic growth.
 Unemployment rates. The nation’s unemployment rate has remained relatively stable. Rising unemployment is often a key indicator of economic downturns because it generally leads to decreased consumer spending.

Nonetheless, employers added more jobs than forecasted in April as unemployment rate stood at 4.2%. Goldman Sachs forecasts unemployment will rise to 4.7% by year’s end; however, the jobless rate has ranged between 4% and 4.2% since May 2024. One key labor market recession indicator is the Sahm rule, which holds that when the three– month average of the unemployment rate rises by 0.5% compared to the lowest of three–month average from the previous year, a recession has begun. But so far, that gauge flashes a far lower likelihood of a recession than it did when it peaked mid–2024.

Economists remain divided on the likelihood of a recession. What concerns them is the ongoing trade tensions and tariff policies. These policies have led to market volatility and the generation of warning signs, including the following:
o Fluctuations in the market that raised concerns about the overall health of the economy;
o Rising bankruptcies, suggesting financial stress among households and businesses; and
o Trading in gold and oil, which point to the prospect of global recession. Gold prices are up more than 20% this year to a record $3,400 per troy ounce as investors flood into the historic safe haven asset, while prices for international benchmark crude sank in May to their lowest point since 2021 as traders braced for a potential global weakening in oil demand as economic activity slows.

FY 2025-26 City of Montclair Preliminary Budget Page 84 of 741 Based on the above discussion, while some indicators point to a slowdown, others suggest resilience; thus, the debate over whether the U.S. is heading for a recession or period of stagflation remains unsettled.

Economists generally agree, however, that increased risks from trade policies can portend concerning economic headwinds—a perspective supported by leading economic indicators—the Conference Board's index of leading economic indicators has declined for three consecutive months, signaling potential economic deterioration.

June economic reports will offer further insight into the economy's trajectory, including the U.S. employment report and core inflation data. If these numbers confirm weakening labor markets or higher–than–expected inflation, concerns about an impending recession will likely grow.

In addition, federal tariff policies remain a key variable. Should the Administration escalate trade restrictions, the risk of an economic contraction may increase, especially as businesses struggle to adapt to shifting supply chains and rising costs.

11.California and the Impacts of Declining Trade. Governor Gavin Newsom’s revised state budget assumes California will see a sharp decline in projected revenue, creating a $12 billion deficit, largely because of a projected slow–down in the nation’s economy due to current federal tariff policies and unanticipated increases in spending on Medi–Cal, California’s medical program for low–income residents. Earlier this year, the administration revealed Medi–Cal costs were outpacing expectations by more than $6 billion, mostly due to the coverage expansion.

The Newsom Administration argues that the on–again, off–again tariffs are putting many California businesses, jobs and the state budget at risk. Even after implementing a temporary pause on the 145% tariffs on Chinese imports (reduced to 30% for 90 days), the Trump Administration announced a new series of notices to countries regarding tariff adjustments. State officials argue that the trade war is affecting not only long–term relationships with trading partners, but an intricate web of ecosystems and supply chains that are affecting California’s strong ties to Asian markets through its major ports up and down the state.

The Ports of Los Angeles and Long Beach, the busiest ports in North America, both saw first–quarter increases in imports, which acted as a front–loading hedge ahead of tariffs. At the same time, the ports saw declines in U.S. exports, year– over–year, suggesting global tariffs are taking their toll on U.S. manufacturing.

A slowdown in Cargo Operations at the Port of Los Angeles (see Chart 6, below) started in May 2025 and continues to sustain itself with a projected 10% drop in volume into next year (2026).

FY 2025-26 City of Montclair Preliminary Budget Page 85 of 741 Chart 6
CalMatters reports that declining vessel calls, or cancellations, at California ports have started to exceed the numbers associated with the COVID–19 pandemic; e.g., the Port of Los Angeles saw 17 cancellations out of an anticipated 80 cargo ships in May, with 10 cancellations already for June. As early as April, the Port of Oakland saw a 15% month–over–month decline in container activity.

The ports are also handling fewer agricultural–related exports, primarily due to decreased overseas demand for U.S. products as nation’s seek product from other countries. A USDA Foreign Agricultural Service report would typically detail U.S. agricultural exports; however, the latest report fails to include an "Exports Products", section, making any analysis difficult.

The decline in vessels arriving at California ports could, of course, change depending on the pace of agreements with other trading nations and evolving tariff policies.

Further, data for the state’s three biggest ports confirm that jobs are dwindling for longshore workers (gangs) up and down the state. Part–time workers are not presently assigned any hours, and many full–time employees are receiving fewer than 40 hours per week (see Chart 7, below). More than 1.5 million jobs are tied to the two Southern California ports.

FY 2025-26 City of Montclair Preliminary Budget Page 86 of 741 Chart 7
The slowdown at the ports will also impact other workers along the supply chain, from truck drivers to the staff at warehouses to rail workers and those who work in retail. Similar to the longshoremen, it is reported that many truck drivers are working fewer than 40 hours per week.

Port of Long Beach officials suggest that a 10% decline in cargo could translate to a 10% decline in jobs throughout the supply chain. More than 1.5 million jobs are tied to the two Southern California ports.

In this mix of uncertainty, California’s Fiscal Year 2025–26 Budget, as proposed by Governor Newsom in his May Revise, does reflect the state’s downward economic trend.

It is, however, necessary to point out a recent trend in state budgets that project both income and expenditures that have often missed the mark, sometimes by several billions of dollars, and typically due to new commitments, suggesting that California’s revenue problem can be attributed, in part, to a program of costly expenditures.

California has seen some significant revenue spikes over recent years, although not to the level the state expected; e.g., the budget acts of 2021 and 2022 were based on forecasts that projected substantially greater revenues than what occurred. The 2024–25 budget revision acknowledged the error, which led to last year’s projected $38 billion deficit.

California may also be dealing with a structural deficit of $10 billion to $30 billion—a chronic gap between income and expenditures. The Legislative Analyst’s Office (LAO) says the structural deficit could reach $42 billion by 2028– 29 unless corrective measures are taken, or unless the state’s economy shows a FY 2025-26 City of Montclair Preliminary Budget Page 87 of 741 particularly robust period of revenue gains. For Fiscal Year 2025–26, the LAO projects a $14 billion deficit, and considers Governor Newsom’s proposed spending reductions appropriate contained in his May Revise appropriate.

12.A Retreat in Inland Empire Logistics. Over the past two decades, the Inland Empire has seen tremendous growth in logistics. This growth has created an estimated 4,000± warehouses and fulfillment centers (some exceeding one million square feet) scattered across Riverside and San Bernardino Counties, allowing the region to function as the nation’s warehouse for many of the goods coming from the Asian market through the ports of Los Angeles and Long Beach.

The confluence of events that built this center of logistics stems from the following:
 Available land;
 An international airport (ONT);
 Proximity to the ports of Los Angeles and Long Beach—an estimated 40% of all containers entering the U.S. from Asia are handled by the ports of Los Angeles and Long Beach;
 Multiple freeways serving the region; and
 Rail access (the Alameda Corridor), with multiple spurs for unloading cargo.

During this growth in logistics, the Inland Empire became an economic engine for jobs and regional prosperity, as evidenced by the region’s rapid recovery following the COVID–19 pandemic, when the Inland Empire regained jobs lost during the pandemic one year ahead of Orange County and two years ahead of Los Angeles County.

Over the past year, however, and excluding the COVID–19 pandemic years, warehousing in the Inland Empire, along with warehouse associated jobs, have declined for the first time in two decades.

During COVID, truck transportation, the backbone of logistics, struggled to recover and continues to do so; but now, the logistics industry faces an even greater challenge as cargo container arrivals at the ports of Los Angeles and Long Beach have dropped as much as 40% due to current U.S. trade policies. The decline in port activity is affecting the region’s wholesale trade employment according to year–over–year data from the U.S. Bureau of Labor Statistics. Industrial building vacancies are also up, and rents are heading downward.

National logistics businesses are also downsizing due to declines in freight volume; e.g., UPS, so far in 2025, has laid off 20,000 employees. The company cites (1) reductions in Amazon shipments, (2) operational restructuring and cost FY 2025-26 City of Montclair Preliminary Budget Page 88 of 741 cutting, (3) the impact of U.S. tariffs, and (4) technological advancements as reasons for the downsizing.

The region’s logistics industry has also been impacted by transportation gridlock, oversupply at warehouses, increasing operating costs, and environmental regulations—the Inland Empire has some of the least healthful air in the U.S., raising significant environmental concerns.

The Inland Empire has become overly dependent on warehousing jobs, and has devoted a significant share of land and resources to that purpose. This lack of economic diversification, when coupled with the current decline in trade with Asian nations, is generating difficulties for the region’s economy and causing harm to the logistics industry. Over the past year, changes within the industry have caused a number of warehouse and distribution center closures in cities throughout the region, including the neighboring cities of Rialto, Fontana, Jurupa Valley, and Chino. The trucking firm, Yellow Corp., has also closed several terminals in the Inland Empire, some of which are related to consolidation to improve profit margins and migration to more efficient spaces that rely on advanced technology.

This transition towards consolidation and technology is reflected in reports that Riverside County is considering a number of massive warehouse projects that would stretch from Cathedral City, south to Temescal Valley; plus, the World Logistics Center is adding approximately 40 million square feet of warehouses to eastern Moreno Valley—an unprecedented effort to create the largest, most efficient and advanced logistics center in the U.S. Collectively, this migration toward consolidation will create upheaval within the Inland Empire’s widely–distributed logistics operations.

The consolidation and downturn in logistics are spreading to other industries too, including finance and real estate. Prologis, the nation’s largest warehouse developer, reported a 7% drop in rents in the fourth quarter for Southern California. The company also reports that its construction pipeline in the Inland Empire is half of what it was at year–end 2022.

The logistics industry must now also cope with Assembly Bill 98, signed into law last year by Governor Newsom. AB 98, which goes into effect in January 2026, will prohibit cities and counties from approving new or expanded distribution centers unless they meet specified standards. New warehouse developments will need to be located on major thoroughfares or local roads that mainly serve commercial uses. And warehouses will need to be set back several hundred feet from so– called “sensitive sites” such as homes, schools and healthcare facilities.

Additionally, if a developer demolishes housing to make way for a warehouse, the bill will require two new units of affordable housing for each unit that is destroyed. The developer will have to provide displaced tenants with 12 months’ rent.

FY 2025-26 City of Montclair Preliminary Budget Page 89 of 741 AB 98 will not apply to the following:
 Existing developments, facilities, or expansions so long as an application was filed prior to September 30, 2024;
 New expansion or development that is subject to a local entitlement process prior to September 20, 2024, and a new sensitive receptor is constructed, established, or permitted after January 1, 2025; or  Development that requires a rezoning and the entitlement process for that rezoning began prior to the entitlement process for a sensitive receptor.

Environmental advocates are, however, concerned about the bill’s setback requirements for projects involving warehouses 250,000 square feet and larger that are within 900 feet of homes, schools, parks or healthcare facilities. In those cases, the bill requires that truck loading bays are located at least 300 feet from the property line in areas zoned for industrial use, and 500 feet from the property line in areas not zoned for industrial use. Warehouses would also need to comply with design and energy efficiency standards.

Together, the above forces, along with tariffs, may accelerate the pace of warehouse consolidation, job layoffs, and migration of certain logistics operations to other regions. The void left behind could create serious economic concerns for local agencies struggling to find solutions that address not just large empty buildings, but the economic decline these vacancies will create.

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CITY OF MONTCLAIR
FISCAL YEAR 2025-26 CITY MANAGER’S BUDGET MESSAGE

SUPPLEMENT EXTRA

BUILDING A BETTER MONTCLAIR
Building a better Montclair requires a team of dedicated leaders committed to excellence and the pursuit of ideas and ideals. To achieve this blend of municipal achievement, the City Manager regularly challenges the organization with new objectives designed to:
• Promote improvements to the overall quality of life in Montclair; • Facilitate infrastructure improvements throughout the City including street and alleyway improvements, safe routes to school improvements, ADA improvements, and other infrastructure enhancements;
• Promote and achieve strategic objectives as established by the City Council;
• Promote commercial and residential development throughout the City; • Establish an effective grants program to secure state, federal and county grants for a variety of physical and economic improvements for the community;
• Promote extension of light rail transit to, and development of, the Montclair Transcenter;
• Develop solutions to community issues, including homelessness and affordable housing;
• Address long–term issues requiring dedicated funding for specific purposes—e.g., pension liabilities, bond obligations, infrastructure improvements and capital requirements;
• Promote and enhance community service and public safety programs; • Produce revenue for employee working condition enhancements; • Address state and federal legislative priorities that affect organizational operations;
• Strengthen and harden Montclair against adverse fiscal conditions; and • Address City Council–directed priorities and objectives.

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➢ Pursuing Grants for Infrastructure Improvements.

Central to the effort to build a Better Montclair is the capacity to identify funds necessary to achieve a robust program of improvements.

In 2021, the City Council approved the 2021 Issue of Lease Revenue Bonds, generating approximately $45 million to fund a variety of infrastructure improvements for the Montclair community. This effort was greatly enhanced when the Biden Administration passed the the $1 trillion Infrastructure Investment and Jobs Act (IIJA), creating historic levels of funding opportunities for American cities to rebuild their infrastructure. The IIJA incorporates $450 billion in renewed funding for existing programs and $550 billion in new federal funding.

On a funding level, the IJAA achieves the following:
• The largest federal investment in public transit in U.S. history, including the largest investment in passenger rail since the startup of Amtrak. • The nation’s single largest dedicated bridge investment since construction of the interstate highway system.
• The nation’s largest investment in clean drinking water and waste water infrastructure in U.S. history.
• Bringing access to reliable high–speed internet to every part of the nation. • Tackling the climate crisis by making the largest investment in clean energy transmission and EV infrastructure in U.S. history.
• Creating a Grid Deployment Authority to build a clean electric grid for the 21st Century.

With 452 unique funding programs, the IIJA provided funding capacity to every part of the nation, as indicated in the Federal government’s interactive Investing in America Map.

In fact, between the IIJA and the Inflation Reduction Act (IRA)—the latter representing the nation’s first major federal response to climate change—the Biden Administration committed to investing $1.254 trillion across transportation, energy, water resources, and broadband sectors through the end of the current decade.

Heading into 2025, federal agencies retained considerable IIJA and IRA funding to assist cities with a variety of infrastructure improvement opportunities, including energy programs to reduce greenhouse gas emissions, of which many Montclair– related projects are geared toward. The bulk of IIJA programs, however, represent spending on roads and other forms of transportation and transit, and thus continue to incentivize driving, particularly through the $240 billion Federal–Aid Highway Program and $27 billion program for bridges—both of which are formula FY 2025-26 City of Montclair Preliminary Budget Page 92 of 741

programs, with state governments being the primary beneficiaries. Formula programs make it easier for local governments to apply for funding without going through more difficult federal funding criteria. Funds going to states were also scheduled for increase as the $42.5 billion Broadband Equity, Access, and Deployment (BEAD) formula funding became available.

Within days after taking office, the Trump Administration froze IIJA and IRA grants and other formula grant programs, denying access to more than $425 billion in grant funding.

Up until the suspension of substantial grant components of the IIJA and IRA, funding, Montclair has been largely successful in many of its grant applications.

Starting in 2020, Montclair initiated an aggressive posture related to applying for grants. To date, the City has applied for approximately $242.729 million in state and federal grants; approximately $40.639 million in grants have been awarded to Montclair; and an estimated $40.652 million in funding is pending notification of award or denial. The balance of approximately $161.438 million in grant funding has been either denied or suspended. Nonetheless, Montclair’s success rate in filing for, and receiving grants over the last five years has no parallel in the City’s 69–year history, and likely competes with or exceeds the grant-related experiences of many of the City’s neighboring jurisdictions.

City staff continue to work on grant applications, with commitment from federal administrators that some grants will be forthcoming; e.g., the SAFER grant for the hiring of firefighters remains a viable grant, and the City will be submitting a new application to hire two additional firefighter/paramedic personnel.

Community Project Funding through local members of Congress also remain viable. From this source, the City received two awards through the Office of Congresswoman Norma Torres (one for improvements to the Montclair Transit Center and one for Police body cameras—a third grant for additional Transit Center improvements was revoked), and anticipates the award of a grant in Fiscal Year 2025-26, to be applied toward purchase of a tiller truck for the Fire Department. A fourth Community Project Funding grant will be applied for in calendar year 2026 for acquisition of new handheld and in-vehicle radios for both public safety departments.

Grants related to infrastructure, particularly those projects that incorporate a “green” or climate action component remain uncertain, and are likely terminated.

It is also apparent that other annual, remaining funding sources for state local governments may also be in jeopardy. H.R. 1 – One Big Beautiful Bill Act has language that suggests Community Development Block Grant Funding (CDBG) will be terminated. CDBG has been a staple of direct return of federal tax dollars to local governments since termination of General Revenue Sharing in 1986— General Revenue Sharing, introduced by the State and Local Fiscal Assistance Act of 1972, was a fiscal arrangement where the federal government allocated a portion of its tax revenues to state and local governments with minimal restrictions on usage.

FY 2025-26 City of Montclair Preliminary Budget Page 93 of 741

State grants, such as California’s Proposition 1 funding for housing assistance for those persons facing or experiencing unhoused conditions, requires partnerships with a regional body. The City is presently in discussion with San Bernardino County officials and 9 cities in the western region of San Bernardino County regarding the opening of a navigation center in Fontana. The navigation center is planned as a 200 beds facility (100 for recuperative care and 100 for referral use by member agencies), and will offer temporary housing, medical care, counseling and referral services, and mental health and substance abuse services. Montclair has been instrumental in development of the Memorandum of Understanding now under consideration by agencies considering participation in the proposed navigation center. Montclair has also urged San Bernardino County’s Office of Homeless Services to apply for a Proposition 1 grant to offset costs for operation of the navigation center and for the provision of transitional housing.

There are, however, factors that make access and use of grant awards challenging.

Inflation in the construction sector, the growing cost of municipal debt, a tight labor market, and a general downturn in state and local government revenues could, for many agencies, limit the forward movement of projects from both planning to physical construction. Further, the majority of available grants require either matching public funding, private investment (such as those incentivized by tax credits) or both. As to matching funds, Montclair has been able to capitalize on the 2021 Issue of Lease Revenue Bonds by using bond funds to function as a match to federal and/or state grants.

Earlier in 2025, the Finance and Economic Development Agency Directors engaged with Hilltop Securities to extend utilization, control and management of the 2021 Issue of Lease Revenue Bonds by placing the remaining balance in a State and Local Government Series (SLGS) securities account. SLGS securities accounts were established in 1972 in response to federal legislation that restricted state and local governments from earning arbitrage profits by investing bond proceeds in higher yielding investments. SLGS securities are offered for sale to issuers of state and local government tax exempt debt to assist with compliance of the arbitrage yield restriction provisions of the Internal Revenue Code. Subscribers can invest in time deposit or demand deposit type of securities, and interest on the securities will be paid for a maximum of 40 years. Investment of the balance in SLGS will provide the City with (i) sufficient time to continue pursing grants, and (ii) using bond proceeds to meet any match requirements. The interest rate on SLGS securities is currently 3.33 percent. Utilizing SLGS securities will allow Montclair to continue pursuing grant funding when and where it is available to rebuild and reimagine the Montclair community.

The Economic Development Agency Director is also in conversation with the County of San Bernardino to secure a $5 million grant for transitional housing.

The City has been evaluating potential sites, either owned by the City or available for purchase, for development of a transitional/affordable housing project. Once concept under evaluation utilizes innovative, modular units complete with sleeping, living, cooking and bathing quarters, and capable of expansion into larger units. One vendor of particular interest is BOXABL, a modular home manufacturer specializing in designing and building fully functional homes that can be shipped to the construction site and deployed. BOXABL homes are reportedly made using high-quality, sustainable materials that are customizable FY 2025-26 City of Montclair Preliminary Budget Page 94 of 741

to meet specific needs, and use a folding technology that allows for easy transportation and assembly, with a purchase price point between $20,000 to $50,000 per unit, depending on product. Units are fully insulated, and complete with all internal wiring, plumbing and other essential features. At the building site, each unit’s panels are assembled in just hours using a folding technology. ➢ The Gold Line and North Montclair Development
Montclair has applied, and will continue applying, for grants to sponsor improvements to the community. Other agencies, too, however are the recipients of funds that are projected to have beneficial effects for the Montclair community.

Of particular note, the California State Transportation Agency (CalSTA), through Los Angeles County Metropolitan Transportation Authority (LA Metro), awarded $798 million in State funds to the Foothill Gold Line Extension Construction Authority (Construction Authority) for completion of the Gold Line light rail system from Pomona to Montclair. The San Bernardino County Transportation Authority (SBCTA) has allocated $80 million to complete the extension from Claremont to Montclair.

In February 2025, the Construction Authority received one bid proposal that came in approximately $300 million above the engineer’s estimated cost for construction, with much of the excess cost pushed to risk-related calculations, primarily related to long-term uncertainties in the economy and the Trump Administration imposing a 25 percent tariff on steel and aluminum, coupled with a base tariff of 10 percent. The tariff has since been increased to 50 percent, plus the base tariff. As of June 2025, the Administration has indicated that the tariffs will remain in place indefinitely.

In order to manage and bring down construction costs, the Construction Authority, with consent of LA Metro, has determined to rebid the project under a Construction Management @ Risk (CMAR) proposal. Using CMAR, which breaks design and build into separate contracts, and pushes future risk on to the contractor, the Construction Authority anticipates multiple contractors will bid on the project, pushing costs down within authorized funding.

Should the Construction Authority be successful with CMAR, construction on the Pomona to Montclair segment is expected to begin in summer 2026, with construction completed in 2030-31.

Extension of Gold Line light rail service to the Montclair Transcenter is considered to be a transformational project. Light rail is considered a true transit service, with train headways every five minutes during peak hours and twelve to 15 minutes in off peak hours. Within the Montclair segment, SBCTA is asking that headways be maintained at 15 minutes throughout the day to control long-term operation and maintenance costs. Regulating headway frequency is a matter that SBCTA must negotiate with LA Metro, which functions as the regional transportation authority authorized by the state to operate the light rail system within the counties of Los Angeles and San Bernardino.

Capitalizing on planning for light rail, the Montclair City Council, in 2006, adopted the North Montclair Downtown Specific Plan (NMDSP), a form–based code FY 2025-26 City of Montclair Preliminary Budget Page 95 of 741

approach to re–imaging development in the City’s northern sphere. The NMDSP also triggered development of a transit-oriented district around the Montclair Transit Center and Montclair Place. In 2017, the City Council adopted the 2017 amendment to the NMDSP and the Montclair Place District Specific Plan (MPDSP), the latter also a form–based code designed to master plan development at and around Montclair Place.

Promoting development in North Montclair is designed to improve the overall quality of life in the community; create new housing, office, and mixed–use projects; move forward the City's vision for a transit–oriented district; and improve Montclair's property and sales tax base.

Since adoption of the NMDSP in 2006, its 2017 amendment and the MPDSP, projects within North Montclair include high–density residential and mixed–use development, with plans for office space, additional retail, entertainment and adaptive re–use of existing spaces.

The MPDSP calls for re-imaging Montclair Place with multi-story, high-density residential and mixed-use projects, increasing total commercial space by approximately 450,000 square feet.

To date, NMDSP development projects include the 385–unit "The Paseos at Montclair", the 129–unit "The District at Arrow Station", the 212–unit "The Alexan– Kendry", and the 23–unit "Vista Court". Other projects now under development in North Montclair, include the following:
• Village at Montclair. The 360 mixed–unit "Village at Montclair" received entitlement in December 2020 and is now nearing end of construction, with most if not all units expected to be available for tenancy in the latter half of 2025. Ten of the ground floor units at Village at Montclair are available as commercial units, with twenty of the project's flex units to come on line as commercial units within approximately five years after construction is completed and certificates of occupancy are issued. • Montclair Kendry Expansion. This high–density residential project is now nearing end of construction, with most if not all units expected to be available for tenancy in the latter half of 2025. The project has been developed in association with the existing Alexan–Kendry development, and will utilize shared amenities and office leasing space. The four–story podium buildings incorporate 137 units configured in a mix of studio units and one– and two–bedroom apartment townhomes.
• Marlowe. This project was entitled in 2024 and remains in the early stages of construction. The residential project is being constructed on the former Vulcan property site, and will consist of 302 residential units utilizing a combination of three– and four–story buildings, configured in a mix of studio units and one, two and three–bedroom apartment townhomes. Units are expected to be available in late 2026 to early 2027. The project also features the second leg of the San Antonio Creek Trail to enter into construction—the first leg recently opened as part of the Sunset Park project.

FY 2025-26 City of Montclair Preliminary Budget Page 96 of 741

• Montclair Place. CIM Group submitted plans for a 606 residential unit, mixed–use development that includes 41,290 square feet of commercial space, 623,550 square feet of residential space, and 352,460 square feet of podium parking service (941 parking spaces provided). The project, as proposed, consists of two main buildings, configured to represent 6 different architectural styles, with a pedestrian–paseos dividing the two main buildings—the two main buildings would be connected by a pedestrian bridge. The project will also feature a Rambla—a tree–lined pedestrian, bicycle and vehicular street used for outdoor events and commercial activities. The project is currently stalled, as CIM Group awaits a more favorable lending market for large, expensive construction projects. The City’s economic team helped to facilitate potential financial backing by meeting with foreign lenders interested in the project.

The construction sector is dealing with significant price inflation, especially for input goods. Two infrastructure–specific commodity indexes within the Producer Price Index (PPI) have come down from their peak in June 2022 when they were up approximately 25 percent from January 2021. In succeeding months, the indexes remained relatively high; however, as indicated in Table 1, below, in the past few months the PPI has been climbing back up toward its peak June 2022 level, suggesting a continuing and worsening tight market for construction.

Table 1
Producer Price Index
o Main Event Entertainment. Main Event Entertainment, a chain of family entertainment centers, opened at Montclair in April 2025. The entertainment center features bowling alleys, arcades, laser tag, virtual reality games, gravity rope courses, billiards, karaoke, and a restaurant—the latter offering appetizers, pizza, hamburgers, salads, and desserts. Main Event also offers a full–service bar with a separate bar menu. The venue also offers services for birthday parties and meeting and event space, with accommodations for corporate meetings or group gatherings and event facility rental services. Since its opening, Main Event has proven to be a popular destination for area residents.

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o The Canyon - Montclair. The Canyon – Montclair venue closed in early 2025, reportedly due to leasing issues. CIM Group continues to evaluate and consider a number of uses for the site, which remain undisclosed.

While not on the radar, one potential option for the site is a premium-level cardroom, operating in compliance with the California Gambling Control Act of 1998. California cardrooms allow patrons to play poker and table games. In California, cardroom operators are prohibited from having a stake in the outcome of the table games; instead, under California law, cardrooms offer all players the opportunity to be the “player-dealer” and wager on the dealer’s position or hand.

Licensed California cardrooms cannot offer casino-style games, slot machines, or sports betting—recent attempts to legalize online and in-person sports betting through voter initiatives (Propositions 26 and 27) failed in 2022.

Cardroom operators typically earn revenue by charging a nominal entry fees, plus a set fee to each player, typically for 30 minutes to one-hour of play, with a minimum play period, often of one hour, depending on demand. Some cardrooms may also have a minimum buy-in amount per game.

California currently has an estimated 88 licensed cardrooms that employ more than 23,000 individuals across the state, in what are considered to be good, living-wage jobs. In Los Angeles County, alone, more than 10,000 people are employed by cardrooms in living-wage jobs.

According to the California Cardroom Alliance, as of June 2025, salaries typically range from $97,766 to $128,036 annually.

Individual salaries can vary significantly based on factors such as job role, experience, education level, certifications, and more.

California cardrooms generate more than $2 billion in economic activity, and in cities with cardrooms, tax revenue from the cardrooms often serves as the largest source of revenue for the host city—funds that are used for public safety, park maintenance, and local streets and road maintenance.

Cardrooms can also stimulate local businesses including restaurants, shopping centers and entertainment venues, further supporting additional jobs and generating additional tax revenues.

Cardroom operators are also known for investing in their host communities by participating in, and hosting various charities, scholarship programs, local beautification projects and other community-oriented activities.

FY 2025-26 City of Montclair Preliminary Budget Page 98 of 741

California card rooms are subject to a variety of laws (Penal Code § 330) and extensive regulatory scrutiny in public meetings before the California Gambling Control Commission. Tribal casinos, on the other hand, are authorized under the Indian Gaming Regulatory Act, which grants them independent sovereignty with limited oversight by state regulators.

California card rooms are required to strictly enforce age requirements—individuals must be at least 21 years of age to play in licensed card rooms. Enforcing a minimum age of 21 ensures a safer and more regulated venue. Underage and illegal gambling is considered a serious offense in the state. Both are classified as a misdemeanor and can result in a jail term of up to six months and a fine ranging from $100 to $1,000. Courts can impose probation for underage offenses, allowing for a tailored approach to punishment.

The Compliance and Enforcement Section (CES) within the California Department of Justice investigates gambling activities in the state, with responsibilities including:
▪ Investigating illegal gambling rings, including unlicensed venues, and unlawful sports betting operations.
▪ Monitoring licensed establishments, such as card rooms. ▪ Collaborating with local and federal agencies to dismantle gambling fraud operations and money laundering schemes.

The Montclair City Council would have to approve a zoning change authorizing card rooms in the City.
• Arrow Highway and Fremont Avenue Improvements. In order to enhance the attractiveness of streets in North Montclair the City Council, in 2019, authorized roadway and median improvements on Arrow Highway between Central and Monte Vista Avenue (now extended west to Mills Avenue), and on Fremont Avenue between Arrow Highway and Moreno Street. City staff has completed final construction and engineering design, and segment improvements have already started with installation of new signals at the Arrow Highway and Fremont Avenue intersection. Roadway improvements will enter construction phase once Village at Montclair street access cuts are completed and necessary agreements are completed with residents on the west side of Fremont Avenue.
• NMDSP/Montclair Place District Street Design and Engineering. In June 2022, the City Council approved a contract with Moule & Polyzoides (M&P) to design and engineer roadway improvements for the following NMDSP/Montclair Place District streets:
o Moreno Street, between Central and Monte Vista Avenues—to be coordinated with CIM Group improvements at Montclair Place; FY 2025-26 City of Montclair Preliminary Budget Page 99 of 741

o Central Avenue, from the Interstate 10 Freeway, north to Richton Street—to be coordinated with CIM Group improvements at Montclair Place;
o Monte Vista Avenue from the Interstate 10 Freeway, north to Arrow Highway, to be coordinated with CIM Group improvements at Montclair Place;
o La Rambla, an internal commercial and pedestrian/vehicle roadway that will interconnect internal streets at Montclair Place to a central downtown hub of mixed–use properties—to be coordinated with improvements at Montclair Place.
o Richton Street, between Central and Monte Vista Avenues—to be coordinated with acquisition of the Montclair Transit Center parking fields from Caltrans, and the planned extension of the Gold Line light rail system to the Montclair Transit Center; o Huntington Drive, from Claremont Boulevard to Monte Vista Avenue—to be coordinated with Trammel Crowe Residential and construction of the Marlowe residential project; and
o Arrow Highway, between Monte Vista and Mills Avenues—to be coordinated with other improvements on Arrow Highway.

Proposed roadway improvements will create complete street designs (vehicle, pedestrian and bicycle friendly corridors) for targeted streets, create open spaces, build safe bike paths, and promote project development within the NMDSP area and Montclair Place District Specific Plan area.
➢ Montclair Transcenter–related projects:
• Montclair Transcenter ─ Property Acquisition. City staff continue to advocate for transfer of the Caltrans–owned parcels at the Montclair Transit Center to the City for development through a public–private partnership. A 2022 appraisal ordered by the City indicated a value of approximately $32 million—City staff estimates the current market cost is approximately $35 million. The cost to construct a parking facility to support an estimated 1,100 vehicles is approximately $44 million, based on per parking space cost of $40,000. The Foothill Gold Line Extension Construction Authority’s environmental review for the Montclair Transit Center presupposes that vehicle parking at the Montclair Transcenter would be maintained at approximately 1,600 spaces; however, a 2024 analysis requested and paid for by Montclair and conducted by the Construction Authority revises the parking demand to approximately 1,100 spaces.

In April 2022, City staff submitted to the office of State Senator Susan Rubio a detailed analysis that justified a request from Montclair to transfer the Caltrans–owned property at the Transcenter to the City. Included in the justification for transfer was the City's support for construction of high– FY 2025-26 City of Montclair Preliminary Budget Page 100 of 741

density residential development, including affordable housing, in compliance with Governor Gavin Newsom's promotion of high–density residential development near high–quality public transit facilities. The Montclair Transcenter is ranked as a high–quality public transit facility. A revised report will be prepared for the office of Assemblywoman Michelle Rodriguez.

In January 2023 and January 2024, City staff submitted to the then office of Assemblymember Freddie Rodriguez, separate requests to author legislation that would declare the Montclair Transcenter as surplus property and authorize its transfer to Montclair. Assemblymember Rodriguez indicated in 2024 that he could not carry the bill until the property is re-declared as surplus by Caltrans.

The Montclair Transcenter was, in fact, placed on Caltrans’ “excess” property list in late 2023, but has since been removed from the list.

Nonetheless, the City continues to pursue efforts to acquire the property from Caltrans for development purposes, including retention of the transit function to serve the Metrolink San Bernardino Line and future Gold Line light rail system.

To support acquisition of the Caltrans–owned property at the Montclair Transcenter, City staff has twice submitted $25 million grant requests under the competitive federal Rebuilding American Infrastructure with Sustainability and Equity (RAISE) program, now renamed Better Utilizing Investments to Leverage Development (BUILD), administered by the U.S.

Department of Transportation (USDOT). Consideration of the second grant application is pending, and the City would be required to provide matching funds of approximately $10 million—funding is available through the 2021 Issue of Lease Revenue Bonds.
• Montclair Transit Center Master Project Site Plan. In October 2023 City staff engaged Moule & Polyzoides (M&P) to develop a Master Site Plan for the 26-acre Montclair Transit Center—the plan is currently nearing completion. The Master Site Plan would incorporate designs for the following:
▪ Market–rate and affordable housing site plans on the three parcels located on the north side of Richton Street and the southeast parcel located south of Richton Street.
▪ An 1,100–space parking structure to be constructed on the southwest parking field, south of Richton Street—the ground floor of the parking structure would incorporate a bus
terminal, bus parking, and transit passenger service terminal.

The transit passenger terminal would incorporate covered waiting space, food service, bicycle storage,
ticket/information center, restrooms, child care services and commercial spaces.

FY 2025-26 City of Montclair Preliminary Budget Page 101 of 741

▪ A secured station platform for both the Metrolink San Bernardino Line and Gold Line light rail service.
▪ Central Plaza, parkland and green spaces, and street and grid–block design.

The Master Project Site Plan for the Montclair Transit Center will be used by the Foothill Gold Line Extension Construction Authority as a planning document to guide and inform planning for extension of the Gold Line light rail system to the Montclair Transcenter.
➢ Promoting a stronger economic foundation.
• Evaluate Service Contracting. Service programs offered by the City are occasionally evaluated to determine if service contracting, subject to labor group provisions, provides the City with viable and affordable options for delivering public services.

Fire code inspections, solid waste service, tree trimming, and parks, median and City facilities landscape maintenance have been contracted to outside vendors. Where appropriate, the City Manager will continue to evaluate outsourcing of services to promote cost efficiencies and enhance services for the community.
• Implement a Proposition 64 Compliance Program. In 2019 the "Medicinal and Adult–Use Cannabis Regulation and Safety Law of the City of Montclair," or the "MAUCRSL, and its companion ordinances were presented to the Montclair Planning Commission for consideration.

Following extensive review, the Planning Commission recommended City Council adoption of the MAUCRSL and its companion ordinances.

Due to the diversion of staff time to cope with the COVID–19 pandemic and the need to address certain revenue and licensing policy issues, presentation of the MAUCRSL to the City Council was delayed. In the interim, the City Council directed City staff to poll residents regarding the legalization of commercial cannabis businesses in the Montclair community.

In March 2022, the City Council approved the hiring of FM3 to poll residents for their support or opposition to legalized commercial cannabis activity in Montclair. Polling of residents occurred from April 24 to May 16, 2022. The polling data demonstrated that regardless of whether or not respondents to polling questions were aware that commercial cannabis activity in Montclair is legal or illegal, support for legalization hovered at or around 70 percent of likely voters. Among those respondents who support legalizing commercial cannabis activity in the City, approximately 90 percent stated they would support a gross receipts tax on the selling of cannabis products. Based on the polling data, the City Council approved placing on the November 8, 2022, General Municipal Election Ballot two measures:

FY 2025-26 City of Montclair Preliminary Budget Page 102 of 741

o Measure “R” (Ordinance 22–999) would enact a general business license tax on cannabis businesses in an amount not to exceed seven percent (7%) of gross receipts of cannabis businesses licensed to operate in the City of Montclair. On August 1, 2022, the City Council voted to place Measure “R” on the November 8, 2022 general municipal election ballot. Measure “R” passed by 70.22 percent of the vote.
o Advisory Measure “II” was for advisory purposes only and did not, in any manner, amend City law or permit cannabis businesses to operate within the City. Measure “II” established that Cannabis business may only be permitted by future City Council ordinance, state or federal law requirements, or by a future binding measure approved by Montclair voters. If enacted by a majority (50% plus 1) vote, the Advisory Measure served to inform the City Council on whether or not the voters desire to amend the Montclair Municipal Code to allow legalizing and licensing medical and adult–use cannabis businesses to operate within the City. A “yes” vote on Advisory Measure “II” would recommend that cannabis businesses be allowed to operate within the City; a “no” vote on Advisory Measure “II” would recommend that cannabis businesses not be allowed to operate within the City. Measure “II” passed by 51.91 percent of the vote.

The City Manager and Economic Development Agency Director are now in the process of completing a successor ordinance to the “Medicinal and Adult–Use Cannabis Regulation and Safety Law of the City of Montclair” for presentation to the City Council in the latter half of 2025. City staff projects that a regulatory system for commercial cannabis will produce $2 million± annually, subject to the approved tax rate and the number of license agreements and types of commercial cannabis activity permits issued by the City. The revised ordinance will provide applicants business opportunities in designated zones of the City, subject to provisions of state and local law.

Revenue from a Proposition 64 compliance program would be deposited in the City's General Fund and used to support a variety of general government functions and services including, but not limited to, the following:
o Public safety and enforcement programs;
o Code Enforcement services;
o Proposition 64–related programs;
o Homeless assistance programs;
o Affordable housing;
o Economic Development Activities;
FY 2025-26 City of Montclair Preliminary Budget Page 103 of 741

o Infrastructure improvements; and
o Other priorities identified by the City Council.

Approval and implementation of a commercial cannabis ordinance would also make the City eligible to apply for a range of state grants supportive of the above governmental functions.
• Redevelopment of Montclair Place.

The ongoing redevelopment of Montclair Place is intended to address the changing nature of the retail industry, particularly as those changing dynamics affect major retail shopping centers throughout the nation. The initial step toward redevelopment of Montclair Place included completion of a specific plan for the Montclair Place District (the "Montclair Place District Specific Plan" or "MPDSP")—an area that falls between Moreno Street to the north, the Interstate–10 Freeway to the south, Central Avenue to the east, and Monte Vista Avenue to the west.

City staff presented the MPDSP to the City Council for adoption in November 2021. As designed, the MPDSP focuses on developing a central downtown warren of blocks, streets, parks, and open spaces populated with residential, mixed–use, office, entertainment, restaurant, civic, commercial, and educational uses. The MPDSP also calls for increasing existing commercial uses by up to 500,000 square feet.

Promoting development of the Montclair Place District pursuant to the vision of the MPDSP would improve the overall quality–of–life in the community, and enhance the City's sales and property tax base. • Economic Development Agency and its Role in Promoting Economic Development and Promotion of Affordable Housing Development.

In the Fiscal Year 2025–26 Proposed Operating Budget, the Economic Development Agency Assets Fund (EDAAF) retains a fund balance of $5,882,701, plus $3,306,310 in low–moderate income housing funds and $13,713,972 in residual bond funds. The EDA also controls an estimated $75± million in real property assets.

The purpose of the EDAAF is to provide and enhance funding within the Economic Development Agency (EDA) for real property acquisition, affordable housing development, homeless assistance, and economic development activities. Re–transitioning of the Economic Development Department into the Economic Development Agency (EDA) in Fiscal Year 2022–23 emphasized the EDA’s evolving role as an extension of the former Montclair Redevelopment Agency (RDA).

Excluding housing–related real property assets assigned to the Montclair Housing Corporation, real property purchased through the EDAAF will be held by the EDA for future development, either through a public–private– FY 2025-26 City of Montclair Preliminary Budget Page 104 of 741

partnership (PPP), or by sale to a private entity for development purposes.

Receipts from the sale of real property held by the EDA will be transferred to the EDAAF for future real property acquisition and other projects of the EDA.

The EDA has assumed the role of the former RDA in the promotion of economic development activity in the City and the pursuit of funding to develop affordable housing in the community.
o Sphere of Influence. The City Manager and Economic Development Agency Director engaged with San Bernardino County's Fourth District Supervisor to discuss cooperative objectives related to economic development in Montclair’s Sphere of Influence (SOI) and work towards transitioning the SOI to the City's administrative management through annexation. The City Manager has
conditioned this effort with the need for San Bernardino County to restore to the City the property tax increment share of the former Montclair RDA that is transferred annually to the County. San Bernardino County receives an estimated $2.4 million as its annual distribution from the former Montclair RDA's property tax increment.

In the event that the County agrees to restore the property tax increment to the City, the funds are recommended for annual allocation to the EDAAF for future project development within the SOI.

As part of this joint effort, the City Council agreed to use the consultant for the General Plan Update to perform an SOI development capacity study that will evaluate development patterns for the SOI, and consider infrastructure improvement costs. San Bernardino County’s Fourth District Supervisor committed to contribute $200,000 toward the $480,000 estimated cost of the study.
o Inclusionary Housing Ordinance. The EDA has oversight responsibility of the City's Inclusionary Housing Ordinance (IHO).

The EDA is currently finalizing a revised inclusionary housing ordinance for City Council consideration in the latter half of 2025.

In–lieu fees derived from Inclusionary Housing fees paid by developers, and any IHO real property assets transferred to the City by developers, will be retained by the EDA for development of affordable housing projects. Affordable Housing assets associated with administration of the IHO would be held by, and administered through, the Montclair Housing Corporation (MHC).
o Affordable Housing. In April 2022, the EDA and the Montclair Housing Authority (the "MHA") became the beneficiary of approximately $3.2 million in repaid residual receipt loans, plus interest, that had been provided to Augusta Communities, an IRS 501(c)(3) Corporation established by the City in 1998 to provide FY 2025-26 City of Montclair Preliminary Budget Page 105 of 741

affordable housing (through rent control) at mobile home parks in the City managed by Augusta Communities.

In late 2021, Augusta Communities sought to refinance its 2012 Issue of Mobile Home Park Revenue Bonds. In order to refinance its 2012 Bonds, Augusta Communities required the approval and cooperation of the Montclair City Council. As part of the 2022 Bond refinancing proposal, the City negotiated a package requiring Augusta Communities to extend affordability covenants on each of its three Montclair mobile home parks for thirty years, and pay to the MHA the RDA residual receipt loans, with interest.

The Montclair Housing Corporation (MHC) holds and manages 106 affordable housing units and other properties in the City that may serve as the location for future affordable housing development.

The City is also committed to acquiring Caltrans–owned property at the Montclair Transcenter, and pursuing a public–private partnership for development of market rate and affordable housing at the Transcenter.

As discussed at the beginning of this Supplement, the Economic Development Agency Director is also in conversation with the County of San Bernardino to secure a $5 million grant for transitional housing. The City has been evaluating potential sites, either owned by the City or available for purchase, for development of a transitional/affordable housing project that utilizes innovative, modular units complete with sleeping, living, cooking and bathing quarters, and capable of expansion into larger units. One vendor of particular interest is BOXABL, a modular home manufacturer specializing in designing and building fully functional homes that can be shipped to the construction site. BOXABL homes are reportedly made using high-quality, sustainable materials that are customizable to meet specific needs, and use a folding technology that allows for easy transportation and assembly, with a purchase price point between $20,000 to $50,000 per unit, depending on product. Units are fully insulated, and complete with all internal wiring, plumbing and other essential features. At the building site, each unit’s panels are assembled in just hours using a folding technology. The EDA will evaluate if the “BOXABL” concept can lend itself to development of an affordable housing project in Montclair. o San Bernardino Council of Governments Housing Trust Fund. In 2022, the San Bernardino County Council of Governments (SBCOG) initiated the process of exploring opportunities for establishing a County administered Housing Trust Fund. The COG is now soliciting municipal agency involvement to refine the parameters of the Housing Trust Fund and move forward with implementation. o Homelessness. Homelessness remains a serious issue in Montclair, the region and throughout California and the nation. In May 2024, FY 2025-26 City of Montclair Preliminary Budget Page 106 of 741

the City Council received a workshop presentation on the City’s outreach efforts related to homelessness.

The EDA, along with the Montclair Code Enforcement Special Operations Team, has been tasked to develop grant funding to facilitate development of temporary housing. To that end, the EDA is working with San Bernardino County’s Fourth District Supervisor to develop approximately $5 million in grant funding to acquire property for development into a temporary housing facility for persons at risk of homelessness.

As discussed above, the Economic Development Agency Director is evaluating potential sites, either owned by the City or available for purchase, for potential development of a transitional/affordable housing project that utilizes innovative, modular units complete with sleeping, living, cooking and bathing quarters, and capable of expansion into larger units. One vendor of particular interest is BOXABL, a modular home manufacturer specializing in designing and building fully functional homes that can be shipped to the construction site. BOXABL homes are reportedly made using highquality, sustainable materials that are customizable to meet specific needs, and use a folding technology that allows for easy transportation and assembly, with a purchase price point between $20,000 to $50,000 per unit, depending on product. Units are fully insulated, and complete with all internal wiring, plumbing and other essential features. At the building site, each unit’s panels are assembled in just hours using a folding technology.

The County of San Bernardino, together with the cities of Montclair, Ontario, Chino, Chino Hills, Upland, Rancho Cucamonga, Fontana, Rialto and Colton are presently exploring opening a 200–bed navigation center in Fontana to serve the unhoused populations of the member agencies. San Bernardino County has agreed to commit $20 million toward transition of a warehouse in Fontana into a navigation center to house and treat unhoused persons in need of support services, including those with mental health and substance abuse issues. San Bernardino County will also commit $3 million annually toward support services, and participating cities will be required to collectively contribute $3 million toward support services. Montclair’s current, projected share of the cost is $250,000 annually.

Member agencies continue to work toward development of a ten– year Memorandum of Understanding (MOU) detailing
responsibilities and commitments for each member agency.

The EDA is also working collaboratively with the City's Code Enforcement Special Operations Unit and non–profit agencies to promote, establish and pursue programs designed to address Montclair's homeless problem. Set-Free Ministry recently located to the former Montclair Kids’ Station at the Montclair Transit Center to FY 2025-26 City of Montclair Preliminary Budget Page 107 of 741

providing expanded outreach services to unhoused members of the community.
• Promoting Housing, Commercial and Industrial Development, and Healthy Montclair Projects Throughout the Community. Promoting development throughout the Montclair community pursuant to guidelines established through an updated General Plan is expected to improve the overall quality-of-life throughout the community, and improve the City's sales and property tax base. A number of projects currently underway in Montclair include the following:
o Citywide development. A number of housing, commercial and logistics projects have been completed in the City's southern sector.

Other projects are under development, or have been proposed to the City and are under consideration and review.
o Tiki Drive–In/Mission Project. Development in the City's southern sphere includes the site of the former Montclair Tiki Drive–In Theater. The site, now at the end of its construction phase, will accommodate a mix of light industrial/manufacturing and logistics support in a "campus" environment. The Mission Project consists of eight buildings on 27.4 acres located at the northwest corner of Mission Boulevard and Ramona Avenue. The project is bounded by State Street to the north, Ramona Avenue to the east, Mission Boulevard to the south, and a mix of residential and industrial improvements to the west.

Closure of the Mission Tiki Drive–in to accommodate the Mission Project adversely impacted the City’s sales tax revenue base and available forms of leisure entertainment—the Tiki Drive-in offered four outdoor movie theater screens and shopping experiences through weekly swap meets. To redress these losses to the Montclair community, the City and Mission Tiki developer negotiated terms that required future annual Community Benefit Fee payments to the City, equal to one and one–quarter cent ($0.0125) per month for every square foot of the building area leased for each month of the year. Based on 513,295 square feet of total lease space available, the annual remittance to the City would be $76,994.25.

The Community Benefit Fee, with first payment expected no sooner than Fiscal Year 2026–27, shall be deposited in the City’s General Fund to be used for community benefit purposes determined by the City. Eligible programs will include, but not be limited to, youth sports programs, the Montclair to College program, league sport programs and school–related programs and activities.

City staff is evaluating extension of the Community Benefit Fee concept to other projects, particularly those that declare their situs for sales tax collection in a community other than Montclair. This latter practice not only reduces Montclair’s tax base; it also imposes on the City the burden to provide a range of supportive public services the City is not compensated for.

FY 2025-26 City of Montclair Preliminary Budget Page 108 of 741

As discussed in the City Manager’s Fiscal Year 2025-26 Budget Message and SUPPLEMENTAL SECTION NO. 1, ISSUES AND

FACTORS DIRECTLY AND INDIRECTLY AFFECTING THE

ECONOMIC HEALTH OF MONTCLAIR AND THE LOCAL ECONOMY,
City staff are actively engaged with the growing concern related to fulfillment centers and sales tax sharing agreements. An estimated 40 cities in California have entered into sales tax sharing agreements with major online retailers. A major aspect of tax sharing agreements is that, in exchange for a business declaring the host city the point-of-sale for all products shipped out of its fulfilment facility, the city, in turn, would share sales taxes generated by the business for a set period of time—typically 50- years, with extensions. City staff has engaged with local legislators to seek revisions to the State’s tax code to change the point-of-sale for e-commerce purchases to the point of delivery. This change will create a fair distribution of use tax revenues from online sales to all cities in the state.
o Reeder Ranch Park. Construction on the Reeder Ranch Park on Holt Boulevard, adjacent to the historic Reeder Heritage Ranch, has been completed and City staff will designate a date for the planned grand opening. In 2020, the City was awarded a $5.137 million grant from the Proposition 68 Statewide Park Program (Round 3) Grant Awards Program. The total cost of the project is estimated at $5.5 million.

The project features a new 2,500 square feet recreation center, natural playground, walking trails, fitness stations, picnic tables with shade structure, restroom facilities, public art, parking lot, secure fencing, and landscaping throughout the park. A portion of Reeder Ranch Park construction (approximately $400,000) was offset by use of the 2021 Issue of Lease Revenue Bonds. o Saratoga Park. In 2022, the City received $2 million in Community Project Funding from the office of Congresswoman Norma Torres for improvements to Saratoga Park, the City’s Little League Sports Field. City staff had also applied for an Urban Greening Program Grant in the amount of $4.313 million, however, the grant had been rescinded; accordingly, the City has applied for additional grant funding, including the Outdoor Recreation Legacy Partnership Grant through the state of California for approximately $8.641 million. City staff also anticipate receiving a $1 million grant from the office of San Bernardino County’s Fourth District Supervisor.

Grant funds, coupled with 2021 Issue of Lease Revenue Bond Funds will be used to redesign and reconstruct Saratoga Park’s sports fields into a state–of–the–art sports complex for Little League play.

The Project is currently in its design–engineering phase (60%) and, if funding is fully developed, is expected to begin construction in 2026.
o San Antonio Creek Trail and Sunset Park. The vision for Montclair’s future San Antonio Creek Trail consists of a vibrant, connected, and safe multi–use greenway path that will run north– FY 2025-26 City of Montclair Preliminary Budget Page 109 of 741

south through the entire City from its northern limits at the Pacific Electric Trail near Monte Vista Avenue and Richton Street, and continuing three miles south to Montclair’s city limits at Mission Boulevard.

When completed, the entire length of the San Antonio Creek Trail will provide new connections between neighborhoods and to parks, recreation centers, schools, transit areas, job centers, and other community destinations.

In March 2022, Montclair was notified by the California Department of Transportation that it was awarded approximately $4.2 million from the nearly $300 million available in Clean California Grants for improvements to Sunset Park, including for a pilot segment of the San Antonio Creek Trail adjacent to Sunset Park. Construction on the pilot segment and other improvements to Sunset Park were completed in May 2025 and is now open to the public. Sunset Park includes improved trails adjacent to the San Antonio Creek Channel, two self–cleaning restrooms, two play areas, exercise equipment, and an amphitheater.

Building the San Antonio Creek trail will bring a number of quality– of–life improvements to the Montclair community—Montclair is identified by various state agencies as a disadvantaged community.

An investment in the San Antonio Creek trail will improve public health, economic opportunity, and environmental and
transportation benefits for the Montclair community and surrounding cities.

From an environmental and health perspective, construction of the trail will encourage area residents to shift from the use of personal vehicles to other forms of transportation, including walking, cycling, and the use of public transit, resulting in lower traffic congestion, lower greenhouse gas emissions, improved air quality and higher levels of physical activity, thereby improving the health and wellbeing of area residents.

The trail provides opportunities for residents making trips across the region to get to work or school, run errands, or visit friends and family through an active transportation network. Proximity of the trail to the Montclair Transcenter, a major transit hub with connections to rail and bus service, will create an important link for commuters connecting to other parts of the Southern California region and other forms of public transit.

Additionally, because modes such as walking and biking provide some of the lowest–cost forms of transportation, constructing the trail is projected to produce positive economic, transportation, and equity benefits for those disadvantaged communities adjacent to the San Antonio Creek trail, including Montclair.

FY 2025-26 City of Montclair Preliminary Budget Page 110 of 741

In order to achieve funding for the entire length of the San Antonio Creek Trail project, the San Antonio creek corridor has been split into five segments, as demonstrated in Illustration 1, below.

Segments break at the locations of major barriers (Metrolink Railway, I–10 Freeway, and Union Pacific Railway) and/or logical construction phases that connect to existing or planned active transportation facilities or key community destinations.

Illustration 1
San Antonio Creek Trail Segments
FY 2025-26 City of Montclair Preliminary Budget Page 111 of 741 Budget Summaries
FY 2025-26 City of Montclair Preliminary Budget Page 112 of 741

SOURCES
Estimated Estimated
Fund Balance/ Transfers Transfers Fund Balance/
Retained Earnings Estimated In TOTAL Operating Out TOTAL Retained Earnings July 1, 2025 Revenue (Descriptions Follow) SOURCES Appropriations (Descriptions Follow) USES June 30, 2026 1001 General Operating Fund 6,000,000 (1) 40,085,115 100,000 46,185,115 39,524,382 120,179 39,644,561 6,540,554 Special Revenue Funds
1102 Gas Tax Fund 72,380 1,076,707 - 1,149,087 1,161,140 - 1,161,140 (12,053) 1103 Road Maintenance Rehabilitation Fund 3,143,391 1,022,444 - 4,165,835 - - - 4,165,835 1104 Measure I Fund 8,045,995 1,050,000 - 9,095,995 - - - 9,095,995 1110 Traffic Safety Fund 361,027 85,000 - 446,027 - 100,000 100,000 346,0271112 Disability Access Fee 72,420 9,000 - 81,420 - - - 81,420 1130 Park Maintenance Fund - 40,000 40,000 42,600 - 42,600 (2,600) 1131 Park Development Fund 1,543,307 300,000 - 1,843,307 - - - 1,843,307 1132 CDBG Fund - 248,457 - 248,457 87,269 - 87,269 161,188 1135 Air Quality Improvement Fund 90,451 51,000 - 141,451 - - - 141,451 1138 Senior Nutrition Fund - 235,000 - 235,000 326,181 - 326,181 (91,181) 1140 Asset Forfeiture Fund- State 110,448 11,000 - 121,448 - - - 121,4481141 Prop 30/SB 109 Fund 46,994 500 - 47,494 17,750 - 17,750 29,7441143 Public Safety Fund - 573,132 - 573,132 772,392 - 772,392 (199,260) 1144 Federal Asset Forfeiture Fund- DOJ 349,463 105,000 - 454,463 1,000 - 1,000 453,463 1146 State Asset Forfeiture 15% Set-aside Fund 23,203 1,600 - 24,803 - - - 24,803 1147 Federal Asset Forfeit. Fund- Treasury 136,315 15,500 - 151,815 - - - 151,8151148 School District Grant Fund 89,928 208,050 - 297,978 208,050 - 208,050 89,928 1149 Citizens Option for Public Safety (COPS) Grant 290,641 196,000 - 486,641 200,000 - 200,000 286,6411150 Local Law Enforcement Block Grant 19 50,000 - 50,019 - - - 50,019 1151 Crime Prevention Fund 2,638 110 - 2,748 - - - 2,7481152 Recycling Block Grant Fund 173,417 43,100 - 216,517 31,000 - 31,000 185,5171155 Statewide Park Development Grant Fund - - - - - - - - 1156 Homeless Housing Assistance & Prevention Fund 11,664 194,100 - 205,764 194,100 - 194,100 11,664 1157 LEAP Grant Fund 6,214 - - 6,214 - - - 6,2141160 After-School Program Grant Fund 26,390 2,517,400 - 2,543,790 2,797,048 - 2,797,048 (253,258) 1162 City of Hope 1,286 - - 1,286 - - - 1,286
1163 Safety Department Grant Funds - 268,010 - 268,010 250,010 - 250,010 18,000 1164 OMSD Immunization Grant 1,371 - - 1,371 - - - 1,371 1166 Kaiser Permanente Grant - - - - - - - -
1167 Resource Center Grant - OMSD 17,227 - - 17,227 - - - 17,227 1168 Title IIIB Sr Support Services - 15,600 - 15,600 15,600 - 15,600 - 1169 Healthy Communities Strategic Plan - - - - - - - - 1180 EMS- Paramedic Fund - 39,850 - 39,850 55,848 - 55,848 (15,998)1181 Contributions & Donations 1,700 500 - 2,200 - - - 2,2001704 Sewer Expansion Fee Fund 1,292,968 110,000 - 1,402,968 - - - 1,402,968 1740 Developer Impact Fees - Local 1,733,974 150,000 - 1,883,974 - - - 1,883,974 1741 Developer Impact Fees - Regional 853,651 250,000 - 1,103,651 - - - 1,103,6511742 Burrtec Pavement Impact Fees 455,270 90,000 - 545,270 - - - 545,2701744 Utility Undergrounding In Lieu 383,397 - - 383,397 - - - 383,397 1745 General Plan Update Fees 120,614 12,000 - 132,614 55,000 - 55,000 77,614 1746 Housing Trust Fund 1,572,108 750,000 - 2,322,108 - - - 2,322,108 1748 Public-Education-Gov't Fees (PEG) 175,978 27,000 - 202,978 - - - 202,978 Total 21,205,849 9,746,060 - 30,951,909 6,214,988 100,000 6,314,988 24,636,921 Capital Project Funds
1206 Economic Development Agency 2, 5,917,375 100,000 - 8,017,375 350,975 - 350,975 7,666,400 1250 & 51 Successor Agency Bond Proceeds 13,678,663 350,000 - 14,028,663 550,000 - 550,000 13,478,663 1252 2014 Lease Revenue Refunding Bond Proceeds 651 - - 651 - - - 651 1253 2021 Lease Revenue Refunding Bond Proceeds 25,832,487 1,500,000 - 27,332,487 283,518 - 283,518 27,048,969 1743 PUC CalTrans Reimbursement Fund 158,473 - - 158,473 - - - 158,473 Total 45,587,649 3,950,000 - 49,537,649 1,184,493 - 1,184,493 48,353,156 Special Assessment Funds
1601 Community Facilities District 2011-1 143,471 223,064 - 366,535 220,564 - 220,564 145,971 1602 Community Facilities District 2011-2 113,565 64,235 - 177,800 62,735 - 62,735 115,065 1603 Community Facilities District 2025-1 - 156,692 - 156,692 156,192 - 156,192 500 1604 Community Facilities District 2025-2 - 52,588 - 52,588 52,338 - 52,338 250 Total 257,036 496,579 - 753,615 491,829 - 491,829 261,786 Debt Service Funds
1302 2014 Refunding Bonds - 2,591,513 - 2,591,513 2,591,513 - 2,591,513 - 1303 2021 Lease Revenue Bonds - 2,395,863 - 2,395,863 2,395,863 - 2,395,863 - 1304 Pension Obligation Bonds - 4,438,996 - 4,438,996 4,438,996 - 4,438,996 - Total - 9,426,372 - 9,426,372 9,426,372 - 9,426,372 -
Enterprise Funds
1501 & 03 Sewer Operating Fund 2,763,897 5,880,000 - 8,643,897 5,843,490 - 5,843,490 2,800,407 1502 Sewer Replacement Fund 2,949,530 256,000 - 3,205,530 10,000 - 10,000 3,195,530 Total 5,713,427 6,136,000 - 11,849,427 5,853,490 - 5,853,490 5,995,937 Reserve Funds
Reserve Funds 30,699,998 (1) - 120,179 30,820,177 2,534,596 - 2,534,596 28,285,581Total 30,699,998 - 120,179 30,820,177 2,534,596 - 2,534,596 28,285,581TOTAL - ALL FUNDS 109,463,959 69,840,126 220,179 179,524,264 65,230,150 220,179 65,450,329 114,073,935 Notes:
(1) Fund Balance has been estimated utilizing the fiscal year 2023-24 midyear general fund approved amounts. 1 USES
FY 2025-26 City of Montclair Preliminary Budget Page 113 of 741

TRANSFERS IN AND OUT DETAILED DESCRIPTIONS

SOURCES & USES STATEMENT

FROM TO AMOUNT PURPOSE
Traffic Safety General Operating $100,000 Reimbursement for traffic safety enforcement Fund costs. State law provides that CVC fines and
forfeitures be initially recorded in a "Traffic Safety
Fund". Since costs associated with these
activities exceed this amount, annual allocations
are transferred to the General Operating Fund.

General Fund Contingency Reserve $120,179 Increase the funds available for unanticipated Fund non-personnel expenditures.

TOTAL $220,179
2 FY 2025-26 City of Montclair Preliminary Budget Page 114 of 741

CITY OF MONTCLAIR
FISCAL YEAR 2025-26 BUDGET

FUND DESCRIPTIONS
Unlike the private sector, governmental budgeting and financial reporting is based upon fund accounting. A fund is a "fiscal and accounting entity with a self-balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations." Not all governmental funds are required to be budgeted; some are small or don't receive annual revenue and/or expenditures. All significant operations of the City are included in this budget; however, for those accounting funds that are not present expenditures will be approved by the governing board.

BASIS OF ACCOUNTING
The budgets of the City’s governmental funds (General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds) are prepared on a modified accrual basis and flow of financial resources principle where revenues are realized only if they are converted into cash within the budget cycle or sixty days thereafter, and expenditures are recorded when incurred and payable from available financial resources.

Budgets for the City’s proprietary fund (Sewer Fund) are prepared on a full accrual basis where revenues are recognized when earned, and expenses are recognized when they are incurred.

Below are descriptions for the funds included in the City’s Budget.

GOVERNMENTAL FUNDS

GENERAL FUND
The General Fund is used to account for all financial resources except those required to be accounted for in another fund. Typically, the general fund is the primary operating fund of a governmental entity. The General Fund has two components, the Operating Fund (1001) and various reserve funds.

Major revenue sources include property taxes, sales tax, and utility users tax. Detail information related to revenue sources is included in the Statement of Estimated Revenues and related notes thereto.

The City Council has established minimum threshold target polices for the City's General Operating Fund. The policy sets a target level of available funding at $6.0 million which should be comprised of assets that are available for immediate appropriation, i.e., current financial resources. Use of monies present in this fund requires specific authorization from the City Council.

For the reserve component, monies are segregated (assigned) into separate individual funds which represent the reserve portion of the General Fund. These provide future resources to fund those activities. The total fund equity of the General Fund is composed of the operating portion and these reserves.

SPECIAL REVENUE FUNDS
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditure for specified purposes. Like the general fund, the budget for a special revenue fund includes only those revenues which are expected to be received in the current fiscal year or shortly thereafter, and expenditures are recognized only if they are expected to be liquidated with current financial resources.
3 FY 2025-26 City of Montclair Preliminary Budget Page 115 of 741 Gas Tax Fund and SB1 Fund (1102 & 1103) Gas Tax monies allocated to local governments in accordance with California Streets and Highways Code Sections 2032, 2105, 2106, 2107 and 2107.5 are required to be deposited in a special revenue fund. By law, the funds are restricted to expenditures for the construction, improvement and maintenance of the public streets and roads system.

Measure I Fund (1104) San Bernardino County voters approved passage of Measure I authorizing the San Bernardino County Transportation Authority to impose a one-half cent sales tax to finance transportation improvement and traffic management programs. Cities are apportioned the "local share" of Measure I monies on a per capita basis and in accordance with a transportation plan and capital improvement program adopted by the local jurisdiction.

Cities may also receive funding for regional projects pursuant to San Bernardino County Transportation Authority’s (SBCTA) five-year and twenty-year plans. In the past, Montclair was allocated regional monies for the Montclair Multi-Modal Transit Center and the Monte Vista Avenue Extension projects.

Traffic Safety Fund (1110) Vehicle Code Section 42200 provides that fines and forfeitures which a city receives as a result of arrests by city officers for Vehicle Code violations must be deposited in a special fund entitled the "Traffic Safety Fund." Monies credited to the Traffic Safety Fund can only be used for traffic control devices, the maintenance thereof, equipment and supplies for traffic law enforcement and traffic accident prevention, and for the maintenance, improvement, or construction of public streets, bridges and culverts within the city. Monies deposited to the fund cannot be used to pay police officer salaries. It is City policy to transfer all Traffic Safety Fund revenues at year-end to the General Fund as expenditures there, for the above prescribed uses, far exceed the annual revenues of the Traffic Safety Fund.

Disability Access Fund – Business License (1112) SB 1186 imposed, on and after January 1, 2013, and until December 31, 2018, an additional state fee of $1 on business licenses for the purposes of increasing disability access and compliance with construction-related accessibility requirements and developing educational resources for businesses to facilitate compliance with federal and state disability laws, as specified. AB 1379 extended this fee indefinitely and on or after January 1, 2018, and until December 31, 2023 increase the amount from $1 to $4. AB 2164 repealed the provision reducing the fee to $1 on January 1, 2024 extending the fee at $4 indefinitely. The monies collected are divided between the local entity that collected the monies and the Division of the State Architect, pursuant to specified percentages.

Park Maintenance Fund (1130) Park development monies collected cannot be used for maintenance of parks. However, additional revenues collected from cell tower rentals, etc. are not restricted. This fund accounts for these additional monies and their uses for maintenance of parks within the City.
"Quimby" Park Development Fund (1131) Government Code Section 66477 provides that a city may, by ordinance, require the dedication of land or impose an in-lieu fee for park and/or recreational purposes as a condition for new residential development. Resolution No. 824, adopted in October 1982, established the current land dedication and in-lieu fees imposed upon new residential development in Montclair.

C.D.B.G. Fund (1132) The Federal Community Development Block Grant (CDBG) program provides cities with grant monies which generally must be expended for essential community development and housing purposes. Montclair receives its share of CDBG monies via the San Bernardino County's Department of Economic and Community Development in accordance with a cooperation agreement.

Air Quality Improvement Trust Fund (1135) In September 1990, Assembly Bill 2766 was signed into law which provided for an increase in the motor vehicle registration fee for the purpose of financing programs designed to reduce mobile source air pollution. Cities are allocated approximately 40 percent of the revenues collected, provided a resolution has been adopted setting forth the city's intention to spend the monies on air pollution reduction programs which are consistent with the California Clean Air Act of 1988, or with a plan proposed pursuant to Article 5 of Chapter 5.5 of Part 3 of the California Health and Safety Code. 4 FY 2025-26 City of Montclair Preliminary Budget Page 116 of 741 Older Americans Act Fund – Senior Nutrition Fund (1138) The Older Americans Act of 1965 provides for assistance to state and local agencies to develop social supportive services to meet the needs of older persons. Montclair receives grant monies pursuant to the Act via contract with the County of San Bernardino. The funds are used to help pay for health care services in the Medical Clinic for senior citizens, ages 60 and over, for "Senior Sitter", a program to provide in-home supportive services, and the senior nutritional meals program.

State Asset Forfeiture Fund (1140) State law generally provides for the confiscation of money and property arising from the manufacture or sale of illegal controlled substances.

Monies distributed to Montclair pursuant to the asset forfeiture laws may only be used for law enforcement programs.

Prop 30/AB 109 (1141) Proposition 30, passed in November of 2012, provides local law enforcement with a portion of a State income tax increase which is to be utilized for costs associated with parolees and probationers.

Public Safety Fund (1143) Passage of Proposition 172, in November 1993, provided for a one-half cent sales tax to be distributed to local governments for public safety expenditures.

Cities in San Bernardino County are allocated a portion of the tax based upon their proportionate share of the net property tax loss resulting from the State's Budget. Current law provides that cities must maintain expenditure levels to be allocated Proposition 172 monies.

Federal Asset Forfeiture Fund – DOJ (1144) & Treasury (1147) Federal law generally provides for the confiscation of money and property arising from the manufacture or sale of illegal controlled substances. Monies distributed to the City are pursuant to the asset forfeiture laws and are only available for purposes of financing the Police Department's annual budget.

Current law requires that Federal asset forfeiture monies received from the Department of Justice be segregated from forfeiture monies received from the United States Treasury Department and all other resources of the Police Department, including monies/assets received pursuant to State asset forfeiture laws.

State Forfeiture – 15% set-aside (1146) Health & Safety Code Section 11489 provides that fifteen percent of State asset forfeiture monies/assets be deposited to a special fund which shall be used for the sole purpose of funding programs designed to combat drug abuse and divert gang activity. The monies deposited to this fund shall not be used to supplant any state or local funds that would normally be used for the same purpose.

School District Grant Fund (1148) The Ontario-Montclair School District finances a portion of the salaries and benefits for the Drug Abuse Resistance Effort (D.A.R.E.) officer through its annual agreement with the City. Prior to Fiscal Year 2002-03, Chaffey Joint Union High School District has financed a portion of salaries and benefits for the Safe School Zone officers program. It is City policy to transfer all School District Grant Fund revenues upon receipt to the General Fund to offset this portion of the salaries of police officers assigned to these programs.

Citizens Option for Public Safety (COPS) Fund (1149) The State Budget Act of 1996 (AB 3229) added Government Code Sections 30061 et. seq. to require the State Controller to allocate funds to each county which redistributes the funds to each city that has established a supplemental law enforcement fund to be expended exclusively for police services.

Justice Assistance Grant Fund (1150) The U. S. Department of Justice, Bureau of Justice Assistance provides grants to local agencies that establish an advisory board that reviews the application for funding and is authorized to make nonbinding recommendations to the local government. These funds are used to supplement local agency funding.

Penal Code Section 1202.5 Fund (1151) The courts can order a defendant convicted of certain offenses to pay an additional fine of $10 to be transferred to the local law enforcement agency where the offense took place. All monies collected shall implement, support, and continue local crime prevention programs.
5 FY 2025-26 City of Montclair Preliminary Budget Page 117 of 741 Recycling Block Grant Fund (1152) The California Oil Recycling Enhancement Act provides funds to cities for establishing and maintaining local used oil collection programs that encourage recycling or appropriate disposal of used oil. The California Integrated Waste Management Board has been delegated to administer the program on behalf of the State for cities.

Homeless Housing, Assistance and Prevention Grant Program (1156) A State of California grant program designed to provide direct assistance to cities to address the homelessness crisis throughout the state.

After-School Program (1160) This fund administers the After-School Program at eight local schools. Primary funding (92.5%) is provided by the Ontario-Montclair School District with the remainder of the costs covered by the City of Montclair.

Safety Department Grant Fund (1163) This fund segregates various grants received by the Fire and Police Departments that require specific matching and tracking of revenues and expenditures as required by the granting agency.

OMSD Immunization Grant Fund (1164) Ontario-Montclair School District provides funding which supports the operation of the City of Montclair Clinic.

Human Services Grant Funds (1162; 1166 – 1169; & 1171) These are smaller grant funds used to augment operation of various programs and projects undertaken by the Human Services Department. Current funding entities include: Healthy Communities Strategic Plan, Resource Center Grant-OMSD, Title IIIB Senior Support Services, and ASES Supplemental Grant.

EMS Paramedic Fund (1180) This fund accounts for revenue received in connection with a contract with the local ambulance provider and through subscription payments from residents to subsidize the expense of enhancing the Fire Department’s current level of emergency medical service.

Sewer Expansion Fee Fund (1704) Ordinance No. 12-928 of the Montclair City Council amended the Regional Sewage Supplemental Capital Outlay Fee effective July 1, 2012. These fees are collected on new connections and ultimately will be disbursed to the IEUA upon their request. In addition to the amounts specified by IEUA, a Sanitary Sewer Expansion Fee was established. These amounts are in addition to the Capital Outlay Fee of IEUA and would be used to fund future expansions of the City of Montclair’s Sewer System.

Developer Impact Fees (Local and Regional – 1740 & 1741) These funds segregate the amount collected from developers to fund local and regional improvements. These monies can only be used on specified approved projects and will accumulate until an amount is present to fund those projects.

Burrtec Pavement Impact Fees (1742) As part of the current agreement with the City's waste hauler, a fee was established to provide monies to compensate the City for a portion of its expenditures for street and road repairs.

PUC CalTrans Reimbursement Fund (1743) As part of the infrastructure improvement project for the Monte Vista Grade Separation, $5,000,000 of PUC grants were obtained. This amount will be utilized to fund a portion of the costs of this project. Since these monies were a one time reimbursement of prior year costs there is no revenue budgeted. Instead this fund it utilized to account for the portion of the grade separation current costs funded with this grant.

Utility Undergrounding In-Lieu (1744) In lieu of performing undergrounding projects, developers can provide monies to the City for use in accomplishing future utility undergrounding projects. This fund accounts for the collection and utilizations of those monies.

General Plan Update Fees (1745) A portion of fees collected from developers are utilized to provide funding for updating the City's general plan and this fund accounts for those fees and the cost of these services.
6 FY 2025-26 City of Montclair Preliminary Budget Page 118 of 741 Housing Fund – (1746) Under Redevelopment Law, inclusionary and other requirements exist for developing affordable housing. With the elimination of redevelopment, existing resources were transferred to other taxing entities. However, remaining bond proceeds and repayments under prior agreements applicable to housing developments have provided resources which will be utilized to meet these housing requirements.

Public-Education-Gov’t Fees (PEG) – (1748) Contributions are received from cable companies to provide resources for public educational programming and equipment.

CAPITAL PROJECT FUNDS
Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by proprietary funds, Special Assessment Funds, and Trust Funds).

Economic Development Agency Fund (1206) Due to the elimination of the City's redevelopment agency, the City receives a property tax share of monies paid by the Successor Agency (accomplishing the liquidation of the former redevelopment agency) to the various taxing entities and from future tax increment that is redistributed to the various taxing entities in excess of enforceable obligations. Since the City will have to perform economic development utilizing its own resources in the future, these monies have been segregated for the purpose of economic development within the City.

Successor Agency Bond Proceeds – (1250 & 1251) Due to the elimination of the City’s redevelopment agency and unspent bond proceeds could be utilized for the purpose intended with the Department of Finance approval. This approval was obtained and the proceeds will be utilized by the City for the purposes authorized in their official statements. 2021 Lease Revenue Bond Proceeds – (1253) Proceeds from the issuance of the 2021 Lease Revenue Bonds are held pending utilization for infrastructure projects. These monies are on deposit with a separate trustee. Major capital outlay for these projects will be budgeted separately in the City’s Capital Improvement Program Budget.

SPECIAL ASSESSMENT FUNDS
Special Assessment Funds are used to account for direct assessments against property owners for maintenance and future costs associated with public improvements benefiting those properties.

Community Facilities District 2011-1 (1601) This assessment district was established to account for the property assessments and corresponding costs associated with maintenance and public safety services provided to the Paseos and Alexan projects.

Community Facilities District 2011-2 (1602) This assessment district was established to account for the property assessments and corresponding costs associated with maintenance and public safety services provided to the Arrow Station project.

Community Facilities District 2025-1 (1603) This assessment district was established to account for the property assessments and corresponding costs associated with maintenance and public safety services provided to the Village at Montclair project.

Community Facilities District 2025-2 (1604) This assessment district was established to account for the property assessments and corresponding costs associated with maintenance and public safety services provided to the Alexan Kendry Expansion project.

DEBT SERVICE FUNDS
Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The City has three active debt service funds established for the Montclair Financing Authority Lease Revenue Refunding Bonds (Public Facilities Projects) Issue of 2014, Montclair Financing Authority Lease Revenue Bonds Issue of 2021, and Pension Obligation Bond Issue of 2021.
7 FY 2025-26 City of Montclair Preliminary Budget Page 119 of 741 2014 Lease Revenue Refunding Bonds Debt Service Fund (1302) In November 2014, the City, through the Montclair Financing Authority, refunded the $31,300,000 in Lease Revenue Bonds which were used for the construction of a new police station, senior center, and youth center by issuing $45,000,000 Refunding Bonds. The additional proceeds received through this issuance were budgeted in the City’s Capital Improvement Program budget. This action committed the City to make annual lease payments until October 2045.

For Fiscal Year 2025-26, the annual principal and interest lease payment is $2,591,513, payable from General Fund resources. Internally, in prior fiscal years, the City had committed up to $750,000 of taxes (RPTTF) it receives from the elimination of its redevelopment agency and the remainder from its transaction and use tax revenues for this debt service payment.

Therefore, effective Fiscal Year 2015-16, the City had budgeted only transaction and use taxes and RPTTF taxes in excess of the annual debt service requirement in the General Operating and Economic Development Agency Funds and has budgeted the remainder of these taxes in the 2014 Lease Revenue Refunding Bonds Debt Service Fund. Beginning with Fiscal Year 2021-22 the City began to utilize only Measure F transaction and use tax revenues for debt service and in turn allocated the entire RPTTF revenue to the Economic Development Agency Fund. The annual principal and interest lease payments will continue to be approximately $2.6 million dollars annually for the remaining life of this bond issue. 2021 Lease Revenue Bonds Debt Service Fund (1303) In October 2021, the City, through the Montclair Financing Authority, issued $45,000,000 in Lease Revenue Bonds. The proceeds received through this issuance are budgeted in the City’s Capital Improvement Program budget. This action committed the City to make annual lease payments until April 2051.

For Fiscal Year 2025-26, the annual principal and interest lease payment is $2,395,863, payable from General Fund resources. As part of the bond issuance process, the City’s Measure L transaction and use tax was designated to be the source of funding to accomplish this repayment. Therefore, effective Fiscal Year 2021-22, the City has budgeted only Measure L transaction and use taxes in excess of the annual debt service requirement in the General Operating Fund and has budgeted the remainder of these taxes in the 2021 Lease Revenue Bonds Debt Service Fund. The annual principal and interest lease payments will continue to be approximately $2.4 million dollars annually for the remaining life of this bond issue. 2021 Pension Obligation Bonds Debt Service Fund (1304) In October 2021, the City issued $62,190,000 in Pension Obligation Bonds. The proceeds received through this issuance were utilized to pay off the CalPERS Unfunded Accrued Liabilities (UAL). This action committed the City to make annual lease payments until June 2041.

For Fiscal Year 2025-26, the annual principal and interest lease payment is $4,438,996, payable from General Fund resources. As part of the bond issuance process, the City’s sales and use tax was designated to be the source of funding to accomplish this repayment.

Therefore, effective Fiscal Year 2021-22, the City has budgeted only sales and use taxes in excess of the annual debt service requirement in the General Operating Fund and has budgeted the remainder of these taxes in the 2021 Pension Obligation Debt Service Fund. The annual principal and interest payments will continue to be approximately $4.4 million dollars annually for the remaining life of this bond issue.

PROPRIETARY FUNDS

ENTERPRISE FUNDS
Enterprise funds are used to account for the operations of programs which are primarily financed by user fees. Because the determination of net income is essential, enterprise fund accounting is based on the measurement of all economic resources, including the depreciation of fixed assets.

Sewer Maintenance Fund (1501, 1502 & 1503) The Sewer Maintenance Fund was established to account for all activities related to the repair and maintenance of the City's sewer 8 FY 2025-26 City of Montclair Preliminary Budget Page 120 of 741 system. In addition, interest earnings on sewer connection fees due the Inland Empire Utilities Agency have been allocated to the fund to provide for sewer main construction in accordance with the City's capital improvement program.

FIDUCIARY FUNDS

TRUST AND AGENCY FUNDS
Trust and agency funds are used to account for assets held by a governmental unit in a trustee capacity or as an agent for individuals, private organizations, other governments units, and/or other funds. The City uses expendable trust funds to account for assets, generally transferred in from the General Fund, which have been earmarked for specific programs. Since these amounts are held in trust and do not represent revenue, these are not included in the attached operational budget of the City of Montclair.

Inland Empire Utility Agency Fund (1703) A portion of the Sewer connection fees collected by the City from its commercial and residential customers relates to a Capital Outlay Fee assessed by the Inland Empire Utility Agency (IEUA). These monies are held by the City in trust and are payable to IEUA upon their demand.

Asset Seizure Fund (1745) Financial resources seized during criminal investigations, etc. are held in trust in this fund awaiting disbursement instructions from the courts. Once received, amounts seized together with interest earning will be disbursed to the respective parties which could also include the City of Montclair.
9 FY 2025-26 City of Montclair Preliminary Budget Page 121 of 741 Revenues
FY 2025-26 City of Montclair Preliminary Budget Page 122 of 741

CITY OF MONTCLAIR

SUMMARY SCHEDULE OF REVENUE BY FUND
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026
2025-2026 Increase
Estimate (Decrease)

GENERAL FUND
1001 GENERAL FUND 39,879,107 39,865,303 19,102,908 39,865,303 40,085,115 219,812 1102 GAS TAX FUND 1,044,412 1,100,000 746,621 1,100,000 1,076,707 (23,293) 1103 ROAD MAINT REHAB FUND - SECT 2032 1,046,247 975,622 530,450 975,622 1,022,444 46,822 1104 MEASURE I FUND 1,134,020 1,020,000 493,911 1,020,000 1,050,000 30,000 1110 TRAFFIC SAFETY FUND 95,985 80,000 107,976 80,000 85,000 5,000 1112 DISABILITY ACCESS FEE FUND 8,935 9,000 5,616 9,000 9,000 - 1130 PARK MAINTENANCE FUND 39,475 40,000 30,657 40,000 40,000 - 1131 PARK DEVELOPMENT FUND 386,400 1,741,600 - 1,741,600 300,000 (1,441,600) 1132 C.D.B.G. FUND 53,554 266,647 15,524 266,647 248,457 (18,190) 1135 AIR QUALITY IMPROVEMENT FUND 91,681 51,000 24,436 51,000 51,000 - 1138 SENIOR NUTRITION FUND 257,928 237,970 146,740 237,970 235,000 (2,970) 1140 ASSET FORFEITURE FUND - STATE 2,449 10,150 5,833 10,150 11,000 850 1141 PROP 30/SB 109 1,222 300 - 100 500 200
1143 SB 509 PUBLIC SAFETY FUND 564,726 605,000 380,000 605,000 573,132 (31,868) 1144 FEDERAL ASSET FORFEITURE FUND - DOJ 290,967 103,000 89,845 103,000 105,000 2,000 1146 STATE FORFEITURE - 15% SETASIDE 698 1,600 1,029 1,600 1,600 - 1147 ASSET FORFEITURE - TREASURY 16,142 15,500 - 15,500 15,500 - 1148 SCHOOL DISTRICT GRANT FUND 35,076 208,050 87,381 208,050 208,050 - 1149 COPS ELEAS GRANT 188,542 166,000 194,820 166,000 196,000 30,000 1150 LLE BLOCK GRANT FUND 48,178 50,000 18,962 50,000 50,000 - 1151 P.C. 1202.5 CRIME PREVENTION FUND 164 110 23 110 110 - 1152 RECYCLING BLOCK GRANT FUND 102,470 117,284 - 117,284 43,100 (74,184) 1155 STATEWIDE PARK DEVELOPMENT GRANT 1,443,262 2,000,000 2,040,578 2,000,000 - (2,000,000) 1156 HOMELESS HOUSING ASSISTANCE PREVEN FUND 72,986 54,600 - 54,600 194,100 139,500 1157 LEAP GRANT FUND 25,154 34,000 8,711 34,000 - (34,000) 1159 COPS HIRING GRANT - - - - - -
1160 AFTER-SCHOOL PROGRAM GRANT FUND 2,681,875 2,951,283 1,629,225 2,951,283 2,517,400 (433,883) 1163 SAFETY DEPARTMENT GRANT FUND 49,373 18,000 15,958 18,000 268,010 250,010 1168 TITLE IIIB SR SUPPORT SERVICES 33,894 15,600 17,323 15,600 15,600 - 1169 HEALTHY COMMUNITIES STRATEGIC PLAN - 14,000 - 14,000 - (14,000) 1180 E.M.S. - PARAMEDIC FUND 43,516 39,850 28,377 39,850 39,850 - 1181 CONTRIBUTIONS/DONATIONS FUND 700 500 500 500 500 - 1704 SEWER EXPANSION FEE FUND 137,439 52,500 263,480 52,500 110,000 57,500 1740 DEVELOPER IMPACT FEES - LOCAL 289,982 150,000 130,906 150,000 150,000 - 1741 DEVELOPER IMPACT FEES - REGION 657,261 200,000 295,150 200,000 250,000 50,000 1742 BURRTEC PAVEMENT IMPACT FEES 105,456 90,000 54,626 90,000 90,000 -

SPECIAL REVENUE FUNDS
2023-2024
Audited
2024-2025
Revised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
Revised
Budget or
Annualization
of Actual
10 FY 2025-26 City of Montclair Preliminary Budget Page 123 of 741

CITY OF MONTCLAIR

SUMMARY SCHEDULE OF REVENUE BY FUND
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026
2025-2026 Increase
Estimate (Decrease)
2023-2024
Audited
2024-2025
Revised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
Revised
Budget or
Annualization
of Actual
1745 GENERAL PLAN UPDATE FEES 12,713 12,000 9,566 12,000 12,000 - 1746 HOUSING TRUST FUND 323,400 1,432,000 693,000 1,432,000 750,000 (682,000) 1748 PUBLIC-EDUCATION-GOV'T FEES (PEG) 27,988 30,000 12,348 30,000 27,000 (3,000)

CAPITAL PROJECTS FUNDS
1206 ECONOMIC DEVELOPMENT FUND 2,023,734 1,900,000 1,321,153 1,900,000 2,100,000 200,000 1250/51 SA BOND PROCEEDS 526,204 250,000 316,261 250,000 350,000 100,000 1253 2021 LEASE REVENUE BOND PROCEEDS 2,121,791 1,400,000 1,134,310 1,400,000 1,500,000 100,000

SPECIAL ASSESSMENT FUNDS
1601 CFD 2011-1 PASEOS/ALEXAN 174,856 187,302 93,547 187,302 223,064 35,762 1602 CFD 2011-2 ARROW STATION 52,977 54,785 28,790 54,785 64,235 9,450 1603 CFD 2025-1 VILLAGE AT MONTCLAIR - - - - 156,692 156,692 1604 CFD 2025-2 ALEXAN KENDRY EXPANSION - - - - 52,588 52,588

DEBT SERVICE FUND
1302 2014 REFUNDING BONDS 2,587,763 2,585,263 1,403,849 2,585,263 2,591,513 6,250 1303 2021 LEASE REVENUE BONDS 2,397,413 2,394,513 2,394,513 2,394,513 2,395,863 1,350 1304 PENSION OBLIGATION BONDS 4,437,327 4,435,334 4,435,334 4,435,334 4,438,996 3,662

ENTERPRISE FUND
1501 SEWER OPERATING FUND 5,962,535 5,770,000 4,147,005 5,770,000 5,880,000 110,000 1502 SEWER REPLACEMENT FUND 279,524 246,000 - 246,000 256,000 10,000

RESERVE FUNDS
GENERAL FUND RESERVES - - 11,526 - - -
TOTAL REVENUE - ALL FUNDS 71,757,501 72,981,666 42,468,768 72,981,466 69,840,126 (3,141,540) 11 FY 2025-26 City of Montclair Preliminary Budget Page 124 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
GENERAL FUND - 1001
Taxes Property - Secured 3,507,613 3,700,000 2,048,401 3,700,000 3,625,000 (75,000) Property - Unsecured 132,843 250,000 128,622 250,000 173,008 (76,992) Property Tax in Lieu of VLF (HdL) 4,994,517 5,200,322 2,600,161 5,200,322 5,353,732 153,410 Sales & Use (HdL) 10,356,496 10,186,860 $ 2,925,337 10,186,860 10,381,716 194,856 Transaction & Use Tax Measure "F" (HdL) 132,253 75,843 - 75,843 99,487 23,644 Transaction & Use Tax Measure "L" (HdL) 8,491,444 8,088,801 3,239,450 8,088,801 8,368,137 279,336 Prop Tax Pass Thru from SRED 532,996 490,000 267,723 490,000 500,000 10,000 Transient Occupancy 67,508 55,000 33,655 55,000 68,000 13,000 Document Transfer 97,795 130,000 24,022 130,000 100,000 (30,000) Franchise 998,031 990,000 227,172 990,000 990,000 -
Business License 914,429 900,000 608,772 900,000 900,000 - Utility Users 2,336,896 2,500,000 1,584,413 2,500,000 2,400,000 (100,000) Total Taxes 32,562,821 32,566,826 13,687,728 32,566,826 32,959,080 392,254 Licenses and Permits Alarm Permits 475 1,000 450 1,000 1,000 - Building Permits 438,755 500,000 402,868 500,000 400,000 (100,000) Moving Permits 9,550 10,000 6,850 10,000 10,000 -
Yard Sale Permits - - - - - -
Construction Permits 150,747 120,000 94,694 120,000 120,000 - Encroachment Permits 35 300 105 300 300 -
Gun Dealer Permits 25 25 25 25 25 -
Total Licenses and Permits 599,587 631,325 504,992 631,325 531,325 (100,000) Intergovernmental Revenues Motor Vehicle In-Lieu Tax 47,016 59,942 59,942 59,942 50,000 (9,942) Property Tax Loss Relief 20,546 25,000 9,915 25,000 20,000 (5,000) Police Officer Training Reimbursement 38,023 25,000 8,489 25,000 25,000 - SB 90 Claim Reimbursement 1,038 40,000 40,186 40,000 40,000 - OES Reimbursements - 130,000 60,051 130,000 130,000 -
Greyhound Transcenter Lease 21,600 21,600 16,200 21,600 21,600 - Total Intergovernmental Revenues 128,223 301,542 194,783 301,542 286,600 (14,942) Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
12 FY 2025-26 City of Montclair Preliminary Budget Page 125 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
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Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
Fines and Forfeitures Court Fines 32,442 55,000 41,000 55,000 40,000 (15,000) Parking Citations 152,692 150,000 114,539 150,000 150,000 - False Alarms 15,445 16,000 9,850 16,000 16,000 -
Restitution 681 1,000 341 1,000 1,000 -
Evidence Forfeitures - 500 - 500 500 -
Auto Repo Fees 1,485 1,700 1,380 1,700 1,700 -
Vehicle Release Fees 78,750 75,000 64,500 75,000 75,000 - Administrative Citations 4,490 900 - 900 900 - OPTS Vehicle Impound Fees 65,400 65,000 55,179 65,000 65,000 - PD Citations - 900 - 900 900 - PW/CD Citations - 200 - 200 200 - Total Fines and Forfeits 351,385 366,200 286,789 366,200 351,200 (15,000) Charges for Services Sale of Printed Materials 719 1,000 540 1,000 1,000 - Special Police Services 10,699 10,000 7,338 10,000 10,000 - Fingerprints (3,603) - (1,454) - - -
Fire Department Service Fees 30,420 30,000 18,788 30,000 30,000 - Credit Card Convenience Fee 5,110 5,000 4,247 5,000 5,000 - Rubbish Collection Fees 3,521,373 3,100,000 2,450,872 3,100,000 3,300,000 200,000 General Sanitation Fee 397,892 400,000 - 400,000 400,000 - Burrtec Contract Maintenance Fee 250,000 250,000 135,417 250,000 250,000 - Zoning/Subdivision Fees 73,460 70,000 47,515 70,000 70,000 - Plan Checking Fees 243,915 500,000 413,513 500,000 500,000 - Recreation Fees 11,514 15,000 13,498 15,000 15,000 -
Service Center Fees 585 500 330 500 500 -
Program Costs - Reimbursed 61,190 40,000 19,020 40,000 40,000 - Country Fair Jamboree 24,300 50,000 - 50,000 30,000 (20,000) Human Services Classes (763) 7,500 3,812 7,500 5,000 (2,500) Total Charges for Services 4,626,811 4,479,000 3,113,436 4,479,000 4,656,500 177,500 13 FY 2025-26 City of Montclair Preliminary Budget Page 126 of 741 Increase
(Decrease)
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2025-2026 Rev ised
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Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
Miscellaneous Revenue Interest Income 1,093,065 800,000 906,355 800,000 800,000 - Library Rentals 62,112 68,000 51,609 68,000 68,000 - Cash Over/Short (192) 10 505 10 10 - Police Auction - 5,000 - 5,000 5,000 -
EV Charging Stations 918 800 610 800 800 - Reimbursed Expenditures 50,288 260,000 51,003 260,000 50,000 (210,000) Special Event Reimbursement 383 500 51 500 500 -
Emergency Response Reimb 27,792 25,000 23,315 25,000 25,000 - Donations & Contributions 290 500 - 500 500 - Senior Birthday Donations - 500 - 500 500 - Subpoena Witness Reimbursement - 400 - 400 400 - Cell Tower Rental 142,230 150,000 112,973 150,000 140,000 (10,000) Other Miscellaneous Revenue 224,846 200,000 162,635 200,000 200,000 - Police Range Revenue 6,525 7,500 4,000 7,500 7,500 -
Youth Center Snacks 977 1,000 488 1,000 1,000 -
Basketball Snacks 1,046 1,200 1,636 1,200 1,200 -
Total Miscellaneous Revenue 1,610,280 1,520,410 1,315,180 1,520,410 1,300,410 (220,000) TOTAL - 1001 39,879,107 39,865,303 19,102,908 39,865,303 40,085,115 219,812 14 FY 2025-26 City of Montclair Preliminary Budget Page 127 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
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Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
GAS TAX FUND - 1102 Section 2106 148,706 156,042 105,863 156,042 150,941 (5,101) Section 2107 312,553 309,510 211,165 309,510 330,289 20,779 Section 2107.5 6,000 6,000 6,000 6,000 6,000 -
Section 2103 - Fuel Tax Swap 346,245 377,179 261,013 377,179 345,967 (31,212) Section 2105 230,908 249,769 162,580 249,769 242,010 (7,759) Interest Income - 1,500 1,500 1,500 -
TOTAL - 1102 1,044,412 1,100,000 746,621 1,100,000 1,076,707 (23,293) ROAD MAINT REHABILITATION - 1103 Section 2032 Road Maint Rehab 982,256 974,122 530,450 974,122 997,444 23,322 SB1 - San Antonio Creek Trail - - - - - -
Interest Income 63,991 1,500 - 1,500 25,000 23,500
TOTAL - 1103 1,046,247 975,622 530,450 975,622 1,022,444 46,822 MEASURE I FUND - 1104 Measure I Sales - Local 975,125 1,000,000 493,911 1,000,000 1,000,000 - Interest Income 158,895 20,000 - 20,000 50,000 30,000
TOTAL - 1104 1,134,020 1,020,000 493,911 1,020,000 1,050,000 30,000 TRAFFIC SAFETY FUND - 1110 C.V.C. Parking Citations 74,080 55,000 86,953 55,000 60,000 5,000 Other C.V.C. Fines 21,905 25,000 21,023 25,000 25,000 - TOTAL - 1110 95,985 80,000 107,976 80,000 85,000 5,000
DISABILITY ACCESS FEE FUND - 1112 Disability Access Fee 8,935 9,000 5,616 9,000 9,000 - TOTAL - 1112 8,935 9,000 5,616 9,000 9,000 -
PARK MAINTENANCE FUND - 1130 Cellular Antenna Site Rental 39,475 40,000 30,657 40,000 40,000 - TOTAL - 1130 39,475 40,000 30,657 40,000 40,000 -
15 FY 2025-26 City of Montclair Preliminary Budget Page 128 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
PARK DEVELOPMENT FUND - 1131 "Quimby Act" Fees 386,400 1,741,600 1, - 741,600 300,000 (1,441,600) TOTAL - 1131 386,400 1,741,600 1, - 741,600 300,000 (1,441,600) C.D.B.G. FUND - 1132 CDBG Revenue 53,554 266,647 15,524 266,647 248,457 (18,190) TOTAL - 1132 53,554 266,647 15,524 266,647 248,457 (18,190)AIR QUALITY IMPROVEMENT FUND - 1135 AB 2766 Motor Vehicle Fees 50,434 50,000 24,436 50,000 50,000 - AB 2766 Discretionary Fund 40,000 - - - - - Interest Income 1,247 1,000 - 1,000 1,000 - TOTAL - 1135 91,681 51,000 24,436 51,000 51,000 -SENIOR NUTRITION FUND - 1138 Nutritional Meals IIIC1/NSIP 222,002 198,970 124,578 198,970 200,000 1,030 Contributions/Donations 35,926 39,000 22,162 39,000 35,000 (4,000) TOTAL - 1138 257,928 237,970 146,740 237,970 235,000 (2,970) FORFEITURE FUND - STATE - 1140 Forfeited Money/Property 10,000 - 5,833 10,000 10,000 - Interest Income 2,449 150 - 150 1,000 850
TOTAL - 1140 2,449 10,150 5,833 10,150 11,000 850PROP 30/AB 109 FUND - 1141 Interest Income 1,222 300 - 100 500 200
TOTAL - 1141 1,222 300 - 100 500 200
16 FY 2025-26 City of Montclair Preliminary Budget Page 129 of 741 Increase
(Decrease)
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2025-2026 Rev ised
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Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
PUBLIC SAFETY FUND - 1143 Proposition 172 Sales Tax 564,726 605,000 380,000 605,000 573,132 (31,868) TOTAL - 1143 564,726 605,000 380,000 605,000 573,132 (31,868) FEDERAL ASSET FORFEITURE FUND - DOJ - 1144 Forfeited Money/Property 281,865 100,000 89,845 100,000 100,000 - Interest Income 9,102 3,000 - 3,000 5,000 2,000 TOTAL - 1144 290,967 103,000 89,845 103,000 105,000 2,000 STATE FORFEITURE - 15% SETASIDE - 1146 Forfeited Money - 1,500 1,029 1,500 1,500 - Interest Income 698 100 - 100 100 - TOTAL - 1146 698 1,600 1,029 1,600 1,600 - FED ASSET FORFEITURE-TREASURY - 1147 Treasury-Fed Forfeitures 12,959 15,000 - 15,000 15,000 - Interest Income 3,183 500 - 500 500 - TOTAL - 1147 16,142 15,500 - 15,500 15,500 - SCHOOL DISTRICT GRANT FUND - 1148 Chaffey HSD Reimb. - Safe Schools 35,076 208,050 87,381 208,050 208,050 - TOTAL - 1148 35,076 208,050 87,381 208,050 208,050 -
STATE SUPPLEMENTAL LAW ENFORCEMENT FUND - 1149 Citizens Option for Public Safety 186,305 165,000 194,820 165,000 195,000 30,000 Interest Income 2,237 1,000 - 1,000 1,000 - TOTAL - 1149 188,542 166,000 194,820 166,000 196,000 30,000 17 FY 2025-26 City of Montclair Preliminary Budget Page 130 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
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Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
LOCAL LAW ENFORCEMENT BLOCK GRANT FUND - 1150 Law Enforcement Block Grant 48,178 50,000 18,962 50,000 50,000 - TOTAL - 1150 48,178 50,000 18,962 50,000 50,000 -P.C. 1202.5 CRIME PREVENTION FUND - 1151 P.C. 1202.5 Fines 103 100 23 100 100 - Interest Income 61 10 - 10 10 -
TOTAL - 1151 164 110 23 110 110 -
RECYCLING BLOCK GRANT FUND - 1152 Used Oil Block Grant (196) 6,000 - 6,000 6,000 - SB 1383 Recycling Grant 105,184 105,184 - 105,184 31,000 (74,184) Beverage Recycling Grant (7,702) 6,000 - 6,000 6,000 - Interest Income 5,184 100 - 100 100 - TOTAL - 1152 102,470 117,284 - 117,284 43,100 (74,184) STATEWIDE PARK DEVELOPMENT GRANT - 1155 Statewide Park Development Grant 1,443,262 2,000,000 2,040,578 2,000,000 - (2,000,000) TOTAL - 1155 1,443,262 2,000,000 2,040,578 2,000,000 (2, - 000,000) HOMELESS HOUSING ASSISTANCE PREVEN - 1156
Homeless Housing Assist Preven Grant 72,986 54,600 - 54,600 194,100 139,500 TOTAL - 1156 72,986 54,600 - 54,600 194,100 139,500
LEAP GRANT FUND - 1157 LEAP Grant 25,154 34,000 8,711 34,000 - (34,000) TOTAL - 1157 25,154 34,000 8,711 34,000 - (34,000)
18 FY 2025-26 City of Montclair Preliminary Budget Page 131 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
AFTER-SCHOOL PROGRAM GRANT FUND - 1160 After School Program 2,681,875 2,951,283 1,629,225 2,951,283 2,517,400 (433,883) TOTAL - 1160 2,681,875 2,951,283 1,629,225 2,951,283 2,517,400 (433,883) SAFETY DEPARTMENT GRANTS - 1163 Homeland Security Grant Programs 49,373 18,000 15,958 18,000 18,000 - SAFER Grant Programs - - - - 250,010 250,010
TOTAL - 1163 49,373 18,000 15,958 18,000 268,010 250,010 TITLE IIIB SR SUPPORT SERVICES - 1168 Sr Support Svcs Title IIIB 33,894 15,600 17,323 15,600 15,600 - TOTAL - 1168 33,894 15,600 17,323 15,600 15,600 -HEALTHY COMMUNITIES STRATEGIC PLAN - 1169 Healthy Communities Plan 14,000 - - 14,000 - (14,000) TOTAL - 1169 14,000 - - 14,000 - (14,000)E.M.S. - PARAMEDIC FUND - 1180 Subscription Fees 11,035 13,000 6,974 13,000 13,000 - Wittman Collections 29,426 25,000 19,621 25,000 25,000 - Vehicle Fluid Recovery Program - 350 - 350 350 - ARS Collections 3,055 1,500 1,782 1,500 1,500 - TOTAL - 1180 43,516 39,850 28,377 39,850 39,850 -
19 FY 2025-26 City of Montclair Preliminary Budget Page 132 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
CITY CONTRIBUTIONS/DONATIONS - 1181 Contributions/Donations 700 500 500 500 500 - TOTAL - 1181 700 500 500 500 500 -ECONOMIC DEVELOPMENT FUND - 1206 RPTTF Property Taxes 2,023,734 1,900,000 1,276,006 1,900,000 2,100,000 200,000 Rent - 8660 Central - - 45,147
TOTAL - 1206 2,023,734 1,900,000 1,321,153 1,900,000 2,100,000 200,000 SA BOND PROCEEDS - TAXABLE - 1250 Interest Income 199,738 100,000 121,064 100,000 150,000 50,000 TOTAL - 1250 199,738 100,000 121,064 100,000 150,000 50,000 SA BOND PROCEEDS - TAX EXEMPT - 1251 Contributions Other Gov'ts Interest Income 326,466 150,000 195,197 150,000 200,000 50,000 TOTAL - 1251 326,466 150,000 195,197 150,000 200,000 50,000 2021 LEASE REVENUE BOND PROCEEDS - 1253 Interest Income 2,121,791 1,400,000 1,134,310 1,400,000 1,500,000 100,000 TOTAL - 1253 2,121,791 1,400,000 1,134,310 1,400,000 1,500,000 100,000 2014 REFUNDING BONDS DEBT SERVICE - 1302 Transaction & Use Tax "F"/Debt Service 2,587,763 2,585,263 1,403,849 2,585,263 2,591,513 6,250 TOTAL - 1302 2,587,763 2,585,263 1,403,849 2,585,263 2,591,513 6,250 2021 LEASE REVENUE BONDS DEBT SERVICE - 1303 Transaction & Use Tax "L"/Debt Service 2,397,413 2,394,513 2,394,513 2,394,513 2,395,863 1,350 TOTAL - 1303 2,397,413 2,394,513 2,394,513 2,394,513 2,395,863 1,350 20 FY 2025-26 City of Montclair Preliminary Budget Page 133 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
PENSION OBLIGATION BONDS - 1304 Sales & Use Tax/Debt Service 4,437,327 4,435,334 4,435,334 4,435,334 4,438,996 3,662 TOTAL - 1304 4,437,327 4,435,334 4,435,334 4,435,334 4,438,996 3,662 SEWER OPERATING FUND - 1501 Sewer Maint. Fees less Expansion Fees 5,905,822 5,750,000 4,144,008 5,750,000 5,850,000 100,000 Sewer Availability Fees 4,116 5,000 2,997 5,000 5,000 - Interest Income/Misc Revenue 52,597 15,000 - 15,000 25,000 10,000 TOTAL - 1501 5,962,535 5,770,000 4,147,005 5,770,000 5,880,000 110,000 SEWER REPLACEMENT FUND - 1502 Sewer Expansion Fees 215,692 231,000 - 231,000 231,000 - Interest Income 63,832 15,000 - 15,000 25,000 10,000 TOTAL - 1502 279,524 246,000 - 246,000 256,000 10,000 CFD 2011-1 PASEOS/ALEXAN FUND - 1601
CFD 2011-1 Property Tax 170,100 186,302 93,547 186,302 220,564 34,262 Interest Income 4,756 1,000 - 1,000 2,500 1,500
TOTAL - 1601 174,856 187,302 93,547 187,302 223,064 35,762 CFD 2011-2 ARROW STATION FUND - 1602 CFD 2011-2 Property Tax 49,998 54,285 28,790 54,285 62,735 8,450 Interest Income 2,979 500 - 500 1,500 1,000 TOTAL - 1602 52,977 54,785 28,790 54,785 64,235 9,450 CFD 2025-1 VILLAGE AT MONTCLAIR FUND - 1603 CFD 2025-1 Property Tax - - - - 156,192 156,192 Interest Income - - - - 500 500
TOTAL - 1603 - - - - 156,692 156,692
21 FY 2025-26 City of Montclair Preliminary Budget Page 134 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
CFD 2025-2 ALEXAN KENDRY EXPANSION FUND - 1604
CFD 2025-2 Property Tax - - - - 52,338 52,338
Interest Income - - - - 250 250 TOTAL - 1604 - - - - 52,588 52,588 SEWER EXPANSION FEE FUND - 1704 Sewer Expansion Fees 113,466 50,000 263,480 50,000 100,000 50,000 Interest Income 23,973 2,500 - 2,500 10,000 7,500 TOTAL - 1704 137,439 52,500 263,480 52,500 110,000 57,500 DEVELOPER IMPACT FEES - LOCAL - 1740 Developer Impact Fees - Local 289,982 150,000 130,906 150,000 150,000 - TOTAL - 1740 289,982 150,000 130,906 150,000 150,000 -
DEVELOPER IMPACT FEES - REGIONAL - 1741 Developer Impact Fees - Regional 657,261 200,000 295,150 200,000 250,000 50,000 TOTAL - 1741 657,261 200,000 295,150 200,000 250,000 50,000 BURRTEC PAVEMENT IMPACT FEES - 1742
Pavement Impact Fees 105,456 90,000 54,626 90,000 90,000 - TOTAL - 1742 105,456 90,000 54,626 90,000 90,000 -
GENERAL PLAN UPDATE FEES (LP) - 1745 General Plan Update Fees 12,713 12,000 9,566 12,000 12,000 - TOTAL - 1745 12,713 12,000 9,566 12,000 12,000 -
22 FY 2025-26 City of Montclair Preliminary Budget Page 135 of 741 Increase
(Decrease)
ov er
2025-2026 Rev ised
Estimate Budget
Rev ised Budget
or
Annualization of
Actual
FOR FISCAL YEARS 2023-2024 THROUGH 2025-2026

STATEMENT OF ACTUAL AND ESTIMATED REVENUES

CITY OF MONTCLAIR
2023-2024
Audited
2024-2025
Rev ised
Budget
Thru 3/2025
2024-2025
Actual Thru
3/2025
HOUSING FUND - 1746 Inclusionary Housing Fees 323,400 1,432,000 693,000 1,432,000 750,000 (682,000) TOTAL - 1746 323,400 1,432,000 693,000 1,432,000 750,000 (682,000) PUBLIC-EDUCATION-GOV'T FEES (PEG) - 1748 PEG fees 27,988 30,000 12,348 30,000 27,000 (3,000) TOTAL - 1748 27,988 30,000 12,348 30,000 27,000 (3,000)EQUIPMENT REPLACEMENT FUND - 1750 Sale of City Property - - 11,526 - - - TOTAL - 1750 - - 11,526 - - -
TOTAL - ALL FUNDS 71,757,501 72,981,666 42,468,768 72,981,466 69,840,126 (3,141,540) 23 FY 2025-26 City of Montclair Preliminary Budget Page 136 of 741

NOTES TO THE CITY'S STATEMENT

OF ACTUAL AND ESTIMATED REVENUES
Revised estimates were based upon data available at April 30, 2025.

GENERAL FUND
Property Taxes - Secured Description: The secured property tax is imposed on real property and personal property which is secured by real property of the same owner. Pursuant to Article 13-A of the California Constitution, the tax is imposed at a rate of $1 per $100 of assessed value.

Basis for Estimate: Estimate is based on information received from our property tax consultants.

Property Taxes - Unsecured Description: The unsecured property tax is imposed on personal property which is not secured by the real property of the owner. Pursuant to Article 13-A of the California Constitution, the unsecured property tax rate is $1 per $100 of assessed value.

Basis for Estimate: Estimate is based upon City's share of $1 unsecured property tax levy received in prior fiscal year.

Sales and Use Tax Description: In accordance with the California Revenue and Taxation Code and the Bradley-Burns Uniform Local Sales and Use Tax Law of 1955, the State of California imposes a 7.75% sales and use tax on taxable sales in the City. The City's General Fund receives 1% of the 7.75% levy .Of the remainder 75% is allocated to SCBTA for transportation purposes, .5% is allocated to cities and counties for public safety purposes, and the remaining 5.50% is retained by the State. This use tax, while not pledged specifically for use in repaying interest and principal on the 2021 Pension Obligation Bonds, is designated for this purpose.

Basis for Estimate: Estimate is based upon projections received from our sales tax consultants and represents the excess over debt service due on the 2021 Pension Obligation Bonds for the fiscal year.

Transaction and Use Tax Description: On November 2, 2004, the electorate of the City approved Measure F Measure F, authorizing a 0.25 percent transactions and use tax on all retail purchases in the City. This tax applies to merchandise sold and delivered in the City by retailers located within the City, sold by retailers located outside the City for use in the City, retailers located outside the City but considered to be engaged in business in the City (ex: have any type of business location in City, deliver into the City using their own vehicles, or have an agent or representative in the City for the purpose of taking orders, selling, delivering, installing, or assembling) must collect the City use tax from the purchaser, sales of vehicles, vessels, or aircraft to customers who register them to an address located in the City, and lease payments received for leased property used by the lessee in the district. This tax became operative on April 1, 2005. This use tax, while not pledged specifically for use in repaying interest and principal on the 2014 Public Facilities Bonds, is designated for this purpose.

Basis for Estimate: Estimate is based upon projections received from our use tax consultants and represents the excess over debt service due on the 2014 Lease Revenue Bonds for the fiscal year.

Transaction and Use Tax Description: On November 3, 2020, the electorate of the City approved Measure L Measure L, authorizing a 1 percent transactions and use tax on all retail purchases in the City. This tax applies to merchandise sold and delivered in the City by retailers located within the City, sold by retailers located outside the City for use in the City, retailers located outside the City but considered to be engaged in business in the City (ex: have any type of business location in the City, deliver into the City using their own vehicles, or have an agent or representative in the City for the purpose of taking orders, selling, delivering, installing, or assembling) must collect the City use tax from the purchaser, sales of vehicles, vessels, or aircraft to customers who register them to an address located in the City, and lease payments received for leased property used by the lessee in the district. This tax became operative on April 1, 2021. This use tax, while not pledged specifically for use in repaying interest and principal on the 2021 Public Facilities Bonds, is designated for this purpose.

Basis for Estimate: Estimate is based upon projections received from our use tax consultants and represents the excess over debt service due on the 2021 Lease Revenue Bonds for the fiscal year.
24 FY 2025-26 City of Montclair Preliminary Budget Page 137 of 741 Transient Occupancy Tax Description: Pursuant to Revenue and Taxation Code Section 7280, the transient occupancy tax is imposed on the privilege of occupying a room in a hotel, inn, motel or other lodging facility unless such occupancy is for a period of more than 30 days. The City's current tax rate is 10 percent of the rent charged for the room.

Basis for Estimate: Estimate is based upon the City's actual collection experience for the previous fiscal year.

Property Transfer Tax Description: The property transfer tax is imposed on the transfer of real property.

Section 11901 et seq. of the Revenue and Taxation Code authorizes a tax of $.55 per $500 of the sales value, exclusive of any lien or encumbrance remaining at the time of sale. Taxes generated by the sale of real property in Montclair are shared equally with San Bernardino County.

Basis for Estimate: Estimate is based upon the City's actual collection experience for the previous fiscal year.

Franchise Fees Description: Franchise fees are imposed on privately-owned utility companies and other businesses for the privilege of using city streets. Currently, the City collects franchise fees from Southern California Edison, Southern California Gas, Golden State Water Company, Charter Communications, Frontier, and Burrtec Waste Industries, Inc.

Basis for Estimate: Estimate is based upon actual collection experience for the prior fiscal year.

Business License Tax Description: The business license tax is imposed on businesses for the privilege of conducting business within the City and is regulated by Section 37101 of the Government Code and Section 16000 et seq. of the Business and Professions Code.

Basis for Estimate: Estimate is based upon prior year experience.

Utility Users Tax Description: Montclair imposes a 3.89% tax on the consumers of electric, gas, water and telephone services. Very low income and low income households are exempt from the tax.

Basis for Estimate: Estimate is based upon prior year experience and recognizes a modest decrease.

Building Permits Description: Building permit fees are authorized by Article XI, Section 7, of the California Constitution and Sections 17951, 19130 and 19132.3 of the Health and Safety Code. The amount of fees charged shall not exceed the reasonable costs borne by the City in issuing the permits and conducting the related enforcement program.

Basis for Estimate: Estimate is based upon current budget projections provided by the Building Official.

Alarm Permits Description: Montclair requires a one-time alarm permit fee of $25 for any person or business that has an alarm system on any premises within the City pursuant to City Ordinance No. 99-791.

Basis for Estimate: Estimate is based upon prior year experience.

Construction Permits Description: Construction permits are issued to defray inspection costs related to work done on City property, including streets, curbs/gutters and sidewalks.

Basis for Estimate: Estimate is based upon prior year experience.

Motor Vehicle In-Lieu Tax Description: The vehicle license fee (VLF) is an annual fee on the ownership of a registered vehicle. As part of California’s 1998 budget agreement, the VLF was originally reduced by 25%, with the potential for future reductions or offsets, up to

67.5% depending on growth in the state’s General Fund. Under the state’s backfill plan, cities and counties were to continue receiving the same revenues as under prior law, with the reduced VLF offset replaced by the state’s General Fund. This replacement component is known as the "VLF backfill.” For renewals starting in calendar year 2001, vehicle owners received the maximum 67.5% reduction in vehicle license fees. As part of the state 2004 Budget, the "backfill" from the state's General Fund was replaced with County property tax monies in (ERAF funds) payable in January and May of each year.

Basis for Estimate: Estimate is based upon prior year experience and the indication that it will continue during the current fiscal year. 25 FY 2025-26 City of Montclair Preliminary Budget Page 138 of 741 Property Tax Loss Relief Description: The first $7,000 of an owner occupied home is exempt from the property tax. The property tax loss relief subvention reimburses cities for the resulting loss in property tax revenues.

Basis for Estimate: Estimate is obtained from the San Bernardino County Auditor/Controller's Office. Estimate assumes no change to current budget.

Greyhound Transcenter Lease Description Greyhound Lines, Inc. leases a single bus bay at the Montclair Transcenter from the City in accordance with Agreement No. 21-66. The contract provides for a lease term of 5 years ending in February 2027 with two five-year options to extend.

Basis for Estimate: Estimate is based upon the current Greyhound Lines, Inc.

Agreement. Court Fines Description: Includes court imposed fines and forfeitures of bail for misdemeanor crimes, exclusive of traffic violations, distributed in accordance with Penal Code Section 1463.001. Effective with FY 1991-92, AB 1297 reallocated 50 percent of fines and forfeiture revenues to the State General Fund.

Basis for Estimate: Estimate is based upon actual collection experience.

Parking Citations Description: Includes fine revenue received pursuant to the Montclair Municipal Code parking bail schedule. The parking bail schedule was last revised August 13, 1993.

Basis for Estimate: Estimate is based upon actual collection experience for previous twelve months.

Special Police Services Description: Includes reimbursement of salaries and benefits of police officers assigned to public gatherings and athletic functions which by City ordinance are required to provide police protection. Also includes reimbursements for the two police officers assigned to the mall.

Basis for Estimate: Estimate is based upon actual collection experience.

Fire Department Service Fees Description: Resolution No. 96-2102 provides for the reimbursement of costs incurred by the Fire Department in providing services to the public, including plan reviews and inspections, incident reports and nuisance abatements.

Basis for Estimate: Estimate is based upon actual collection experience.

Rubbish Collection Fees Description: Includes charges billed to residents for rubbish collection pursuant to Section 6-8.05 of the Montclair Municipal Code. Montclair contracts with Burrtec Waste Industries to provide rubbish collection services.

Basis for Estimate: Estimate is based on actual collection experience.

Zoning/Subdivision Fees Description: Titles 8 and 9 of the Montclair Municipal Code include authorization for planning and planning-related application fees. The current fee schedule, including charges for tract and parcel maps, conditional use and home occupational permits, was adopted by Resolution No. 95-2085 in November 1995.

Basis for Estimate: Estimate is obtained from the City Planning Division.

Recreation Fees Description: The Human Services Division offers many recreational activities including racquetball, youth basketball leagues, mini-school, and arts and crafts programs. User charges for the programs are intentionally set below cost to reach as many people as possible.

Basis for Estimate: Estimate is based upon actual collection experience for the most recent twelve months.

Program Costs-Reimbursed Description: The Human Services Division offers many recreational activities including trips to baseball games, amusement parks, and educational facilities on a reimbursement basis. User charges for the programs entirely offset the costs.

Basis for Estimate: Estimate is based upon City's anticipated participation.

Service Center Fees Description: Includes medical clinic services provided by the Human Services Division. Fee schedules are set below cost in order to provide services to as many people as possible.

Basis for Estimate: Estimate is based upon actual collection experience for twelve months.

26 FY 2025-26 City of Montclair Preliminary Budget Page 139 of 741 Plan Checking Fees Description: Includes revenue from plan or map checking fees which are not a part of the building permit fee process.

Basis for Estimate: Estimate is partially based upon plan or map checking services.

Interest Income Description: Includes earnings on governmental securities charged directly to the General Fund and prorated interest income on pooled cash on deposit with the Local Agency Investment Fund and in certificates of deposit.

Basis for Estimate: Estimate is based on an assumed average interest rate of

1.0 percent on governmental securities, 0.90% on LAIF deposits of pooled cash and is calculated on the average cash balances held by the City during the fiscal year. An accounting change pursuant to GASB #31 will not modify this estimate.

GASB #31 gains and losses will be made to a separate account.

Library Rentals Description: San Bernardino County leases the library building from the City in accordance with San Bernardino County Agreement No. 07-147 A1. The contract provides for a lease term of 5 years ending in December 2022 with two five-year options to extend.

Basis for Estimate: Estimate is based upon the current San Bernardino County Agreement.

Other Miscellaneous Income Description: Includes other revenues which do not merit detailed accounting.

Basis for Estimate: Estimate is based on actual collection experience over the last several years.

GAS TAX FUND
Gas Tax - Section 2105 Description: Pursuant to Section 2105 of the Streets and Highways Code, cities are apportioned an amount equal to the net revenues derived from 11.5 percent of highways users taxes in excess of 9 cents per gallon in the proportion that the total population of the city bears to the total population of all cities in the state. The taxes must be used for street purposes.

Basis for Estimate: Estimate is based on information obtained from the State Controller's Office.

Gas Tax - Section 2106 Description: Under Section 2106 of the Streets and Highways Code, cities and counties are allocated $0.0104 per gallon of gasoline taxes. The cities' share is allocated on a per capita basis. In addition, cities receive a monthly fixed apportionment of $400. Taxes received pursuant to Section 2106 are restricted to street purpose expenditures.

Basis for Estimate: Estimate is based on information obtained from the State Controller's Office.

Gas Tax - Section 2107 Description: Pursuant to Section 2107 of the Streets and Highways Code, $.01315 per gallon of the gasoline tax and $.01800 per gallon of the diesel use fuel tax are allocated to cities on a per capita basis. The taxes are restricted to street purpose expenditures.

Basis for Estimate: Estimate is based on information obtained from the State Controller's Office.

Gas Tax - Section 2107.5 Description: Cities with a population of 25,000 to 49,999 inhabitants are apportioned $6,000 annually from the Highway Users Tax Fund to pay for engineering costs and administrative expenses in respect to city streets.

Basis for Estimate: Estimate is based on information obtained from the State Controller’s Office.

Gas Tax - Section 2103 Description: Section 2103 was added beginning with Fiscal Year 2010-11 to allocate funds from a new motor vehicle fuel excise tax that replaces previous city and county allocations from the Proposition 42 sales tax on gasoline. These funds are allocated to cities and counties on a per capita basis.

Basis for Estimate: Estimate is based on information obtained from the State Controller’s Office.
27 FY 2025-26 City of Montclair Preliminary Budget Page 140 of 741

ROAD MAINTENANCE REHAB FUND
Gas Tax - Section 2032 Description: Section 2032 was added beginning with Fiscal Year 2017-18 to allocate funds from SB1 legislation to cities. Section 2032 funds are specifically intended for expenses related to street rehabilitation projects within the City.

Basis for Estimate: Estimate is based on information obtained from the State Department of Finance statewide revenue projections.

MEASURE I FUND
Measure I - Local Allocation Description: The local distribution of Measure I revenue is allocated to the cities within the Valley region on a per capita basis. Revenues in this category must be expended on streets and roads pursuant to a twenty-year Transportation Plan and a five-year Capital Improvement Plan adopted by resolution of the local jurisdiction.

Basis for Estimate: Estimate anticipates a modest percentage increase over the last fiscal year.

TRAFFIC SAFETY FUND
CVC Parking Citations Description: Includes parking fines and forfeitures collected pursuant to various sections of the California Vehicle Code. C.V.C. parking fines must be deposited in a separate fund and must be used for specific traffic safety expenditures.

Basis for Estimate: Estimate is based on actual collection experience.

Other C.V.C. Fines Description: Includes fines and forfeitures, exclusive of parking citations, from arrests pursuant to the California Vehicle Code and distributed in accordance with Penal Code Section 1463. Effective with FY 1991-92, AB 1297 reallocated 50 percent of these revenues to the State General Fund.

Basis for Estimate: Estimate is based upon current collection experience.

PARK DEVELOPMENT FUND
Quimby Act Fees Description: The Quimby Act allows cities to require from residential developers the dedication of land or in-lieu fees for neighborhood park or recreational facilities. Ordinance No. 95-2075 sets forth City's land dedication and in-lieu fee requirements pursuant to the Quimby Act.

Basis for Estimate: Estimate is obtained from the City Planning Division.

PARK MAINTENANCE FUND
Cellular Antenna Site Rental Description: Includes rental payments received for a cellular antenna with appurtenant equipment in Mac Arthur Park.

Basis for Estimate: Estimate is based upon a rental agreement with Crown Castle USA Inc.

C.D.B.G. FUND
Grant Revenues Description: Community Development Block Grants are allocated to cities by the Department of Housing and Urban Development. The funds are generally restricted to expenditures for housing, public safety and economic development within low-income target areas.

Basis for Estimate: Estimate is based upon projected expenditures provided by the Director of Community Development. The CDBG Fund is operated on a cost reimbursement basis.

AIR QUALITY IMPROVEMENT TRUST FUND
AB 2766 Vehicle Registration Fees Description: Health and Safety Code Section 44225 authorizes an air quality control district to impose a $4 vehicle registration fee to finance programs designed to reduce air pollution from motor vehicles. Cities are allocated 40 percent of the revenues less administrative costs based upon population.

Basis for Estimate: Estimate is based upon the City's current collection experience.
28 FY 2025-26 City of Montclair Preliminary Budget Page 141 of 741

STATE ASSET FORFEITURE FUND
Forfeited Money/Property Description: State laws provide for the confiscation or seizure of cash and property obtained by individuals trafficking in illegal drugs. Asset forfeiture revenues are generally restricted to expenditures for the investigation, detection and prosecution of criminal activities.

Basis for Estimate: Estimate is based upon the City's current collection experience.

PROP 30/AB 109
Parolee/Probationers Description: Voters passed Prop 30 in November 2012. Part of this tax increase is provided to local law enforcement for funding of special details involving parolees and probationers
Basis for Estimate: The City no longer receives revenue from Prop 30/AB 109 taxes however, the balance on hand is being utilized for allowable expenses.

FEDERAL ASSET FORFEITURE FUND
Forfeited Money/Property Description: Federal laws provide for the confiscation or seizure of cash and property obtained by individuals trafficking in illegal drugs. Asset forfeiture revenues are generally restricted to expenditures for the investigation, detection and prosecution of criminal activities.

Basis for Estimate: Estimate is based upon the City's current collection experience.

STATE FORFEITURE - 15% SET-ASIDE
Public awareness/education Description: State laws provide for the confiscation or seizure of cash and property obtained by individuals trafficking in illegal drugs. Asset forfeiture revenues are generally restricted to expenditures for the investigation, detection and prosecution of criminal activities. The State requires that 15% of forfeited funds be restricted for use in public safety education/awareness programs.

Basis for Estimate: Estimate is based upon the City's current collection experience.

PUBLIC SAFETY FUND
Proposition 172 Sales Tax Description: Passage of Proposition 172 made permanent a one-half cent sales tax levied for the purpose of funding local public safety. In San Bernardino County, cities are allocated five percent of the revenues collected. Distribution to cities is based upon an individual city's payment to the Educational Revenue Augmentation Fund in FY 1993-94 as a percentage of total payments by cities to the ERAF.

Basis for Estimate: Estimate anticipates a slight decrease over the last fiscal year.

EMS – PARAMEDIC FUND
Subscription Fees Description: Residential and Business subscription fees were established by Resolution No. 01-2328 in April 2001. For an annual subscription fee, the subscribing party and immediate family members or employees will receive unlimited Basic Life Support services (BLS) and Advanced Life Support (ALS) services from the Montclair Fire Department. The residential subscription rate is $24 per year. The business subscription rates are $50 per year for a business with 15 employees or less and $100 per year for a business with 16 employees or more.

Basis for Estimate: Estimate is based reflected participation rates from prior years.

First Responder Fees Description: First responder fees were established by Resolution No. 01-2328 in April 2001. Emergency medical service first responder fees cover Basic Life support services (BLS) and Advanced Life Support (ALS) services. Resolution No. 01-2328 provides for BLS services to residents at no cost.

Basis for Estimate: Estimate is based on the projections from Wittman Enterprises, LLC for emergency medical billing services. 29 FY 2025-26 City of Montclair Preliminary Budget Page 142 of 741

SEWER MAINTENANCE FUND
Sewer Maintenance Fees Description: The sewer maintenance fee is established by ordinance and is set at a rate sufficient to cover operating expenses necessary to maintain the City's sewer system and to provide for an emergency reserve.

Basis for Estimate: Estimate is based on collection experience.

Sewer Availability Fees Description: Properties which have access but are not connected to the City's sewer system are charged a monthly availability fee. The current fee is $2.35 per month.

Basis for Estimate: Estimate is based on amount submitted to San Bernardino County for inclusion on the property tax roll.
28 FY 2025-26 City of Montclair Preliminary Budget Page 143 of 741 Sales Tax

25.9%
Other Taxes

19.7%
Charges for Services

11.6%
Property Tax

9.5%
Utility User Tax

6.0%
Fines/Forfeits

0.9%
Misc. Income

1.2%
Transaction/Use Tax

21.1%
Licenses/Permits

1.3% Interest Income

2.0% Intergovt. Revenues

0.7%
City of Montclair
2025-26 General Fund Revenues
By Source
Total Budget - $40,085,115
29 FY 2025-26 City of Montclair Preliminary Budget Page 144 of 741 Operating Expenditures Budgets
FY 2025-26 City of Montclair Preliminary Budget Page 145 of 741 Budgeted Budgeted Budgeted Budgeted Budgeted
2021-22 2022-23 2023-24 2024-25 2025-26
$ 403,516 $ 464,715 $ 463,599 $ 449,560 $ 440,497
4,900,500 6,181,104 6,687,903 7,040,952 7,059,7331,326,737 1,609,405 1,341,788 1,417,937 1,840,7203,715,040 3,690,355 4,428,919 5,674,946 5,130,280 11,743,427 12,583,998 12,357,112 13,961,219 13,707,865
4,331,827 5,830,496 5,741,686 6,373,451 5,878,1099,916,710 10,362,386 10,833,651 10,655,022 11,081,2561,607,898 1,973,715 1,874,008 1,927,950 2,058,8711,418,638 1,452,574 920,076 1,443,044 1,583,774 304,937 376,236 383,833 380,172 370,829
8,247,481 4,720,071 3,221,757 4,909,775 6,160,015
153,854 199,490 219,441 240,587 491,829
$ 48,070,565 $ 49,444,545 $ 48,473,773 $ 52,634,001 55,803,778 2,590,762 5,190,387 9,419,989 9,415,110 9,426,372
$ 50,661,327 $ 54,634,932 $ 57,893,762 $ 62,049,111 65,230,150 NOTE: FY 2024-25 Budget includes all appropriations and capital projects authorized through May 30, 2025.Appropriations for FY 2021-22 through 2023-24 represent final recorded budgets.

Economic DevelopmentCFD OperationsTOTAL OPERATING BUDGETCity AttorneyTOTAL BUDGET w/DEBT SERVICECitywideDebt ServiceFirePublic WorksCommunity Development

CITY OF MONTCLAIR

COMPARATIVE OPERATING APPROPRIATIONS BUDGETS
FISCAL YEARS 2021-22 THROUGH 2025-26
City ManagerCity CouncilAdministrative ServicesHuman ServicesPolice 32 FY 2025-26 City of Montclair Preliminary Budget Page 146 of 741 Police

21.0%
Public Works

17.0%
Administrative Services

2.8%
Fire
Human Services 9.0%

7.9%
Citywide

9.4%
Community
Development

3.2%
City Attorney

0.6%
City Council

0.7%
Economic
Development

2.4%
City Manager

10.8%
CFD Operations

0.8%
Debt Service

14.5%
City of Montclair
2025-26 Operating Budget
By Department
Total Budget – $65,230,150
33 FY 2025-26 City of Montclair Preliminary Budget Page 147 of 741 City City Admin. Human Public Community Economic City CFD City Council Manager Services Services Police Fire Works Development Development Attorney Citywide Operations Total General Fund 401,347 6,434,676 1,667,211 2,259,121 12,502,944 5,286,754 4,653,170 1,749,771 370,829 3,567,145 631,414 - 39,524,382 Gas Tax - 3,200 - - - - 974,940 - - 183,000 - - 1,161,140 Park Maintenance - - - - - - 42,600 - - - - - 42,600CDBG - - - 9,500 - - 27,769 50,000 - - - - 87,269 Senior Nutrition Fund - - - 326,181 - - - - - - - - 326,181 Prop 30/AB 109 - - - - 17,750 - - - - - - - 17,750
SB 509 Public Safety - - - - 486,895 285,497 - - - - - - 772,392 Fed Asset Forfeiture-DOJ - 1,000 - - - - - - - - - - 1,000 OMSD Grant Fund - - - - 208,050 - - - - - - - 208,050
State Supplemental - - - - 200,000 - - - - - - - 200,000 Recycling Grant Fund - 31,000 - - - - - - - - - - 31,000 Homeless Assist Preven - - - - - - - 194,100 - - - - 194,100 After-School Program Fund - 165,828 78,842 2,519,878 - - - - - 32,500 - - 2,797,048Safety Grant Fund - - - - 250,010 - - - - - - - 250,010 Sr Support Services Grant - - - 15,600 - - - - - - - - 15,600 Healthy Comm Strategic Plan - - - - - - - - - - - - 0
EMS-Paramedic - - - - 55,848 - - - - - - - 55,848Economic Development - 3,615 - - - - - 347,360 - - - - 350,975 Successor Agency Bond Proceeds - - - - - - - 550,000 - - - - 550,000 2021 Lease Revenue Bond Proceed - - - - - - 283,518 - - - - - 283,518 Sewer Operating 39,150 420,414 94,667 - - - 4,977,433 - - 200,000 - - 5,731,664 Sewer Replacement - - - - - - 10,000 - - - - - 10,000Sewer Capital Asset - - - - - - 111,826 - - - - - 111,826 CFD 2011-1 - Paseos - - - - - - - - - - - 220,564 220,564 CFD 2011-2 - Arrow Station - - - - - - - - - - - 62,735 62,735 CFD 2025-1 - Village at Montclair - - - - - - - - - - - 156,192 156,192 CFD 2025-2 - Alexan Kendry - - - - - - - - - - 52,338 - 52,338 General Plan Update Fee - - - - - - - 55,000 - - - - 55,000 Equipment Replacement - - - - 292,226 - - - - - - - 292,226 UAL/POB Amortization Fund - - - - - - - - - 2,177,370 - - 2,177,370 Homelessness Advocacy Fund - - - - - - - 65,000 - - - - 65,000 Total 440,497 7,059,733 1,840,720 5,130,280 13,707,865 5,878,109 11,081,256 2,058,871 1,583,774 370,829 6,160,015 491,829 55,803,778

BY FUND
FISCAL YEAR 2025-26

CITY OF MONTCLAIR

OPERATING APPROPRIATIONS BUDGET
34 FY 2025-26 City of Montclair Preliminary Budget Page 148 of 741 Police

31.6%
Fire

13.4%
Public
Works

11.8%
Citywide

9.0%
Community
Development

4.4%
Administrative
Services

4.2%
Human Services

5.7%
City Attorney

0.9%
City Council

1.0%
City Manager

16.3%
Economic Development

1.6%
City of Montclair
2025-26 General Fund Operating Budget
By Department
Total Budget – $39,524,382
35 FY 2025-26 City of Montclair Preliminary Budget Page 149 of 741 Personnel Supplies Capital Outlay Total
City Council $ 259,900 180,597 $ - $ 440,497 $
City Manager
City Manager 455,594 95,469 0 551,063
Information Technology 866,862 669,350 233,000 1,769,212 Finance 962,558 166,500 0 1,129,058
Solid Waste 133,400 3,477,000 0 3,610,400
Total 2,418,414 4,408,319 233,000 7,059,733
Administrative Services Department
Administration 21,292 32,600 0 53,892
City Clerk 351,081 40,600 0 391,681
Personnel 530,858 155,030 0 685,888
Central Services 69,951 639,308 0 709,259
Total 973,182 867,538 0 1,840,720
Human Services
Recreation 1,461,235 407,800 0 1,869,035
Clinic 20,842 65,550 0 86,392
Senior Citizens 232,968 32,400 0 265,368
Nutritional Meals 108,731 220,250 0 328,981
Family and Health Education 62,526 11,500 0 74,026
Expanded Learning Program 2,217,478 274,000 15,000 2,506,478 Total 4,103,780 1,011,500 15,000 5,130,280
Police Department
Administration 442,768 250,300 0 693,068
Support 948,987 9,410 0 958,397
Technical Services 387,016 246,180 0 633,196
Records 742,983 12,000 0 754,983
Investigations 1,595,418 298,805 128,270 2,022,493
Uniform Patrol 6,639,236 697,255 181,726 7,518,217
Communications 1,040,168 22,925 0 1,063,093
Volunteer Services 52,418 12,000 0 64,418
Total 11,848,994 1,548,875 309,996 13,707,865
Fire Department
Administration 725,213 10,150 0 735,363
Emergency Services 4,208,479 663,604 0 4,872,083
Personnel Development 0 34,100 10,000 44,100
Buildings/Grounds 0 20,200 11,000 31,200
Emergency Preparedness 111,166 6,500 0 117,666
EMS-Paramedics 0 55,848 21,849 77,697
Total 5,044,858 790,402 42,849 5,878,109
Fiscal Year 2025-26
Budget Allocations by Department
36 FY 2025-26 City of Montclair Preliminary Budget Page 150 of 741 Personnel Supplies Capital Outlay Total
Fiscal Year 2025-26
Budget Allocations by Department
Public Works
Engineering
Management 600,196 248,274 0 848,470
Inspection 199,182 0 0 199,182
Traffic Safety 14,025 309,000 0 323,025
Subtotal 813,403 557,274 0 1,370,677
Street Maintenance
Graffiti 88,240 30,619 0 118,859
Street Maintenance 572,156 1,111,700 16,431 1,700,287
Signing/Painting 87,321 55,150 0 142,471
Street Sweeping 178,513 13,800 0 192,313
Subtotal 926,230 1,211,269 16,431 2,153,930
Park Maintenance
Park Maintenance 98,114 373,143 0 471,257
Tree Maintenance 9,099 19,150 0 28,249
Subtotal 107,213 392,293 0 499,506
Irrigation Maintenance 54,620 83,434 0 138,054
Vehicle Maintenance 197,099 353,115 29,997 580,211
Sewer Maintenance 903,675 4,169,584 26,000 5,099,259
Building Maintenance
Building Maintenance 201,944 363,949 0 565,893
Heating & A/C 150,239 37,500 0 187,739
Janitorial 328,742 148,360 8,885 485,987
Subtotal 680,925 549,809 8,885 1,239,619
Total 3,711,979 7,287,964 81,313 11,081,256
Community Development
Planning Commission 8,075 0 0 8,075
Administration 0 14,050 0 14,050
Current Planning 411,829 300 0 412,129
Advance Planning 137,059 10,000 0 147,059
Field Inspection 102,525 1,400 0 103,925
Plan Check 114,856 650 0 115,506
Operations 136,233 500 0 136,733
Fire Prevention 0 150 0 150
General Code Enforcement 474,048 14,900 0 488,948
Special Ops Code Enforcement 367,246 265,050 0 632,296
Total 1,751,871 307,000 0 2,058,871
37 FY 2025-26 City of Montclair Preliminary Budget Page 151 of 741 Personnel Supplies Capital Outlay Total
Fiscal Year 2025-26
Budget Allocations by Department
Economic Development
Administration 631,414 952,360 0 1,583,774
City Attorney 135,829 235,000 0 370,829
Citywide Department 3,421,015 2,739,000 0 6,160,015
Community Facility Districts 217,727 274,102 0 491,829
Total Departmental $ 34,439,660 $ 20,681,960 $ 682,158 $ 55,803,778 Debt Service Costs $ 9,426,372
Total Appropriations $ 65,230,150
38 FY 2025-26 City of Montclair Preliminary Budget Page 152 of 741 Full-Time Personnel Services Capital
Employees Services Supplies Outlay Total

0.00 $ 180,597 $ 259,900 $ - $ 440,497

15.88 2,418,414 4,408,319 233,000 7,059,733

7.43 973,182 867,538 1,840,720 -
Human Services 15.60 4,094,280 1,021,000 15,000 5,130,280

80.00 11,848,994 1,548,875 309,996 13,707,865

30.00 5,044,858 790,402 42,849 5,878,109

36.00 3,711,979 7,287,964 81,313 11,081,256

15.00 1,751,871 307,000 2,058,871 -
Economic Development 3.80 631,414 952,360 1,583,774 -

0.00 135,829 235,000 - 370,8290.00 3,421,015 2,739,000 6,160,015 -

0.00 217,727 274,102 - 491,829
Total Operating Expenditures 203.71 * $ 20,691,460 34,430,160 $ $ 682,158 $ 55,803,778 - - 9,426,372 -
Total Expenditures $ 34,430,160 $ 20,691,460 $ 682,158 $ 65,230,150 * Full-Time Employees by Entity:City 203.71SRDA 0.29
204.00
Community Facility DistrictsPublic WorksCommunity Development FISCAL YEAR 2025-26
City CouncilCitywideDebt ServiceAdministrative ServicesPoliceCity AttorneyFireCity Manager

CITY OF MONTCLAIR

OPERATING APPROPRIATIONS BUDGET

BY OBJECT CLASS
39 FY 2025-26 City of Montclair Preliminary Budget Page 153 of 741 $-
$7,500,000
$15,000,000 $22,500,000 $30,000,000
2020-21 2021-22 2022-23 2023-24 2024-25 2025-26

CITY OF MONTCLAIR
Operating Budgets 2020-21 to 2025-26
Annual Increase (Decrease) By Object Class
Personnel Services Services & Supplies Capital Outlay
40 FY 2025-26 City of Montclair Preliminary Budget Page 154 of 741 Article 13-B Disclosures
FY 2025-26 City of Montclair Preliminary Budget Page 155 of 741

CITY OF MONTCLAIR
ARTICLE 13-B DISCLOSURES
FISCAL YEAR 2025-26
The appropriations limit imposed by Article 13-B of the State Constitution creates a restriction on the amount of revenue generated from taxes that a local government can appropriate in any fiscal year. The limit is based on actual appropriations during the base 1978-79 fiscal year, with an increase each subsequent year based on a formula comprised of population estimates and cost-of-living factors.

Government Code Section 37200 stipulates that the budget shall include the City's appropriation limit and the total annual appropriations subject to limitation.

APPROPRIATIONS LIMIT restricts the amount of tax revenues which may be used to finance the expenditures (appropriations) budget. The City's proposed limit for FY 2025-26 is $584,759,506.

APPROPRIATIONS SUBJECT TO LIMITATION represents that portion of the proposed budget which is financed by taxes. The amount of tax revenue budgeted for expenditures during FY 2025-26 is $31,341,088 and is supported by the analysis below.

General Fund Appropriations Budget $ 39,557,123

Less: Estimated Non-Proceeds of Taxes
Franchises $ 990,000
Licenses & Permits 531,325
Fines & Forfeits 351,200
POST Reimbursements 25,000
Other Intergovernmental Reimbursements 261,600
Charges for Servives 4,656,500
Miscellaneous
Rental Income 208,000
Other 1,092,410
Transfers-In – Traffic Safety 100,000 $ 8,216,035

Appropriations Budget Financed by Taxes $ 31,341,088
NOTE: Legislation governing implementation of Article 13-B defines subventions from the State (e.g.

Motor Vehicle In-Lieu Taxes, Homeowner's Property Tax Relief) and interest earned on taxes and subventions as "proceeds of taxes." Additionally, charges for services are not proceeds from taxes unless they exceed the cost of providing those services. 41 FY 2025-26 City of Montclair Preliminary Budget Page 156 of 741 Departmental
Operating Budgets
FY 2025-26 City of Montclair Preliminary Budget Page 157 of 741 City Council
FY 2025-26 City of Montclair Preliminary Budget Page 158 of 741

DEPARTMENT BUDGET SUMMARY

Department Division Program
City Council 4101 City Council

Overview
The Mayor and City Council Members are elected at-large to serve as the legislative and governing body of the City. The City Council develops public policy; promotes public welfare; pursues interests of the public; establishes organizational goals; authorizes fiscal priorities; supervises the services of the City Attorney and dayto-day performance of the City Manager; represents the City’s interests before regional, state, and federal agencies; adopts appropriate legislative initiatives; and serves as governing body of the Successor Redevelopment Agency, Successor Housing Authority, Housing Corporation, and Public Financing Authority.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved

Personnel Services 170,705 180,597 180,597
Services and Supplies 277,855 273,255 259,900
Capital Outlay 0 0 0
Total 449,560 453,852 440,497

Personnel Authorized 5.00 (PT) 5.00 (PT) 5.00 (PT)

Source of Funds

General Fund 401,105 414,702 401,347
Sewer Operating Fund 8,585 9,029 9,029
Sewer Operating Fund – Indirect 39,870 30,121 30,121
Staff Charges
Total 449,560 453,852 440,497

A-1 FY 2025-26 City of Montclair Preliminary Budget Page 159 of 741 PAGE 1 OF 1
DEPARTMENT: CITY COUNCIL DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rat
e Second Rate Salary
Employee Name July 1 Raise Months Rate Months Rate Next Year Mayor John Dutrey 12.0 2,188 26,256 26,256Council Member Benjamin Lopez 12.0 1,438 17,256 17,256 Corysa Martinez 12.0 1,438 17,256 17,256 Xavier Mendez 12.0 1,438 17,256 17,256 William Ruh 12.0 742 8,904 8,904
Salary Requirements: TOTAL (P/T) 86,928 86,928
Next Year

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Recommended by
Administration
A-2
FY 2025-26 City of Montclair Preliminary Budget Page 160 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Part-Time
Mayor 1.00 1.00 1.00 26,256 26,256
Council Members 4.00 4.00 4.00 60,672 60,672
Part Time 5.00 5.00 5.00 86,928 86,928
Benefit Costs 88,603 88,603
PERS Benefit Costs 5,066 5,066
Total Benefit Costs 93,669 93,669
TOTAL 180,597 180,597

DETAIL OF SALARIES AND WAGES
Department: City Council Program: 4101 City Council

POSITION QUOTA APPROPRIATIONS
A-3 FY 2025-26 City of Montclair Preliminary Budget Page 161 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
City Council 4101 City Council
Work Program

1. Direct fiscal policy and infrastructure improvements through adoption of strategically planned budget and capital improvement programs.

2. Hold public meetings to consider agenda issues presented before the governing board; take appropriate actions that effectively respond to such issues; and comply with open meeting requirements.

3. Provide liaison interaction between the City and other local, regional, state, and national bodies; and represent the City on local, regional, state, and national policy committees.

4. Review and revise, as necessary, all goals, objectives, and strategic plans established for the City.

5. Adopt local laws through ordinance action and provide for the enforcement of such laws.

6. Periodically review the performance of the City Manager.

7. Respond to legislative initiatives impacting local government operations.

8. Consider alternative funding mechanisms for programs, services, and projects.

9. Facilitate public input into the local political process.

10. Report to the community on the state of the City.

11. Oversee the performance of the City Attorney.

12. Oversee advisory bodies including the Planning Commission, Community Activities Commission, and other Council-established oversight committees.

13. Reorganize City Council standing committees after each biannual election.

14. Perform as the Board of Directors for the Successor Redevelopment Agency, Successor Housing Authority, Housing Corporation, Financing Authority, and Montclair Community Foundation.

15. Support goals related to historical preservation.

16. As required, serve as final authority on labor negotiations and personnel/disciplinary actions.

17. As assigned, serve on City Council subcommittees.

18. Address evolving issues related to public employee pension-related costs.

19. Address fiscal-related priorities.

20. Evaluate/consider outsourcing of various City services, as appropriate.

21. Actively engage Los Angeles County Metropolitan Transportation Authority, Metro Gold Line Foothill Extension Construction Authority, San Bernardino County Transportation Authority, and local Legislators regarding the Gold Line Extension to Montclair.

22. Coordinate duties of the Disaster Preparedness Council during local emergencies.

Personnel Services – $180,597
Salary requests are for: Mayor (1.00) – $26,256; Council Members (4.00) – $60,672. Cost allocations are as follows: part-time salaries – $86,928; benefit costs – $93,669.

Services and Supplies – $273,255
Funding requested is for: books and publications – $500; publication and advertising – $5,000; community benefits – $30,000; dues and memberships – $59,355; travel and meetings – $22,400; mileage/auto allowance – $42,000; special consulting services – $65,000; vocational training – $4,000; Reeder Ranch expenses – $10,000; miscellaneous expenditures – $35,000.

Capital Outlay
No funding requested.

A-4 FY 2025-26 City of Montclair Preliminary Budget Page 162 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:27PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4101 City Council
E10 Personnel Services
75,515 66,353 74,590.00 0.00 42020-400-00000Part Time Wages 0.00 82,582.00 82,582.00 0.00 0.00 0 0 79,800.00 0.00 45220-400-00000Benefit Plan 0.00 79,800.00 79,800.00 0.00 0.00 5,507 4,562 5,679.00 0.00 45250-400-00000P.E.R.S. 0.00 4,813.00 4,813.00 0.00 0.00 619 625 613.00 0.00 45290-400-00000Life Insurance 0.00 613.00 613.00 0.00 0.00 1,579 1,575 1,081.00 0.00 45330-400-00000Medicare 0.00 1,197.00 1,197.00 0.00 0.00 1,688 1,687 1,357.00 0.00 45340-400-00000Social Security 0.00 2,563.00 2,563.00 0.00 0.00 84,908 74,802 163,120 0 Personnel Services Totals: 0.00 171,568 171,568 0 0 E20 Services & Supplies
0 0 500.00 0.00 51020-400-00000Books and Publications 0.00 500.00 500.00 0.00 0.00 29,950 0 5,000.00 0.00 52090-400-00000Publication & Advertising 0.00 5,000.00 3,000.00 0.00 0.00 7,695 15,153 30,000.00 0.00 52110-400-00000Community Benefits 0.00 30,000.00 25,000.00 0.00 0.00 28,767 35,961 59,355.00 0.00 52120-400-00000Dues & Memberships 0.00 59,355.00 48,000.00 0.00 0.00 21,621 21,517 24,000.00 0.00 52130-400-00000Travel & Meetings 0.00 22,400.00 22,400.00 0.00 0.00 33,390 41,843 42,000.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 42,000.00 42,000.00 0.00 0.00 68,308 77,513 65,000.00 0.00 52190-400-00000Special Consulting Services 0.00 65,000.00 72,000.00 0.00 0.00 0 0 2,000.00 0.00 52540-400-00000Vocational Training 0.00 4,000.00 2,000.00 0.00 0.00 0 0 0.00 0.00 52690-400-00000Small Equipment 0.00 0.00 0.00 0.00 0.00 1,343 1,914 0.00 0.00 52850-400-00000Cellular Phone Expense 0.00 0.00 0.00 0.00 0.00 16,952 9,503 10,000.00 0.00 52900-400-00000Reeder Ranch Expenses 0.00 10,000.00 10,000.00 0.00 0.00 17,580 18,396 40,000.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 35,000.00 35,000.00 0.00 0.00 225,605 221,799 277,855 0 Services & Supplies Totals: 0.00 273,255 259,900 0 0 E40 Other Financing Uses
GL-Budget Analysis (6/11/2025 - 3:27 PM) Page 1
A-5 FY 2025-26 City of Montclair Preliminary Budget Page 163 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(33,613) (42,005) -39,870.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -30,121.00 -30,121.00 0.00 0.00 (33,613) (42,005) (39,870) 0 Other Financing Uses Totals: 0.00 (30,121) (30,121) 0 0 276,900 254,596 401,105 0 EXPENDITURES TOTALS: 0.00 414,702 401,347 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
276,900 254,596 401,105 0 DEPT EXPENSES 0.00 414,702 401,347 0 0 (276,900) (254,596) (401,105) 0 City Council Totals: 0.00 (414,702) (401,347) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
276,900 254,596 401,105 0 FUND EXPENSES 0.00 414,702 401,347 0 0 (276,900) (254,596) (401,105) 0 General Fund Totals: 0.00 (414,702) (401,347) 0 0 1501 Sewer Operating Fund
4101 City Council
E10 Personnel Services
4,005 3,200 3,926.00 0.00 42020-400-00000Part Time Wages 0.00 4,346.00 4,346.00 0.00 0.00 0 0 4,200.00 0.00 45220-400-00000Benefit Plan 0.00 4,200.00 4,200.00 0.00 0.00 289 211 299.00 0.00 45250-400-00000P.E.R.S. 0.00 253.00 253.00 0.00 0.00 22 18 32.00 0.00 45290-400-00000Life Insurance 0.00 32.00 32.00 0.00 0.00 58 47 57.00 0.00 45330-400-00000Medicare 0.00 63.00 63.00 0.00 0.00 68 56 71.00 0.00 45340-400-00000Social Security 0.00 135.00 135.00 0.00 0.00 4,441 3,533 8,585 0 Personnel Services Totals: 0.00 9,029 9,029 0 0 E40 Other Financing Uses
33,613 42,005 39,870.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 30,121.00 30,121.00 0.00 0.00 33,613 42,005 39,870 0 Other Financing Uses Totals: 0.00 30,121 30,121 0 0 38,054 45,538 48,455 0 EXPENDITURES TOTALS: 0.00 39,150 39,150 0 0 GL-Budget Analysis (6/11/2025 - 3:27 PM) Page 2
A-6 FY 2025-26 City of Montclair Preliminary Budget Page 164 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
38,054 45,538 48,455 0 DEPT EXPENSES 0.00 39,150 39,150 0 0 (38,054) (45,538) (48,455) 0 City Council Totals: 0.00 (39,150) (39,150) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
38,054 45,538 48,455 0 FUND EXPENSES 0.00 39,150 39,150 0 0 (38,054) (45,538) (48,455) 0 Sewer Operating Fund Totals: 0.00 (39,150) (39,150) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
314,955 300,134 449,560 0 REPORT EXPENSES 0.00 453,852 440,497 0 0 (314,955) (300,134) (449,560) 0 REPORT TOTALS: 0.00 (453,852) (440,497) 0 0 GL-Budget Analysis (6/11/2025 - 3:27 PM) Page 3
A-7 FY 2025-26 City of Montclair Preliminary Budget Page 165 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: City Council Program: 4101 City CouncilObject Name and Title of Person Place Where Event Date(s) Total Est.

Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense 52130 Mayor and City Council CONFERENCES/SEMINARS $14,900 League of California Cities
Annual Conference and Exposition Sacramento, CA September 2025 ($500 each x 4 = $2,000) Legislative Action Days Sacramento, CA April 2026 ($800 each x 2 = $1,600) National League of Cities
Annual Congressional City Conference Washington, DC March 2026 ($2,900 each x 2 = $5,800) San Bernardino County
City/County Conference Lake Arrowhead, CA May 2026
($500 each x 3 = $1,500)
International Council forShopping Centers (ICSC)
West Coast Conference Palm Springs, CA September 2025 ($1,000 each x 2 = $2,000) National Conference Las Vegas, NV May 2026 ($1,000 each x2 = $2,000) A-8
FY 2025-26 City of Montclair Preliminary Budget Page 166 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: City Council Program: 4101 City CouncilObject Name and Title of Person Place Where Event Date(s) Total Est.

Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense 52130 Mayor and City Council WORKSHOPS
League of California Cities
Workshops Various TBA $1,000
Mayor and City Council LOCAL TRAVEL & MEETINGS
Local conferences and meetings Various TBA $1,000
Including legislative hearings and meetings with legislative advocates, consultant meetings, CIM Group/Montclair Place, and other local meetings.

Mayor and City Council SPECIAL
Meetings with/of various committees, City Hall Various $5,500 commissions, and boards supporting or serving as advisory bodies to the City Council. Includes the Planning Commission, Community Activities
Commission, Transactions and Use Tax Oversight Committee, Personnel Committee, Public Safety Committee, Public Works Committee, Finance Committee, and Real Estate Committee.

Total: $22,400
A-9
FY 2025-26 City of Montclair Preliminary Budget Page 167 of 741 WORKSHEET – JUSTIFICATION OF CONFERENCE AND IN–SERVICE TRAINING REQUEST SCHEDULE B – VOCATIONAL TRAINING
Department: City Council Program: 4101 City Council
Object Name and Title of Person Place Where Event Date(s) Total Est.

Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense 52540 J. John Dutrey, Ethics Training (AB 1234)
Mayor
Corysa Martinez, Harassment Prevention Training (AB 1825) Montclair Fall 2025 $4,000 Mayor Pro Tem
Bill Ruh,
City Council Member
Benjamin Lopez, City Council Member Xavier Mendez,
City Council Member
All managers and supervisory employees, and members of
City commissions, committees, and boards.

Total: $4,000
(Only $2,000 approved in City Manager’s Budget)
A-10
FY 2025-26 City of Montclair Preliminary Budget Page 168 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Council Program: 4101 City Council Object Number 51020 BOOKS AND PUBLICATIONS – $500 Inland Valley Daily Bulletin, $350 Miscellaneous expenditures for books and periodicals, $150 52090 PUBLICATION AND ADVERTISING – $5,000 (Only $3,000 approved in City Manager’s Budget) Miscellaneous advertising related to City Council programs. 52110 COMMUNITY BENEFITS – $30,000 (Only $25,000 approved in City Manager’s Budget) Contributions to community groups, $15,000 Contribution for community events, $13,000 Emergency relief/assistance, $2,000 52120 DUES AND MEMBERSHIPS – $59,355 (Only $48,000 approved in City Manager’s Budget) League of California Cities (LCC) membership, $13,500 League of California Cities (LCC) Local Streets and Roads Need Assessment, $500 League of California Cities (LCC) Inland Empire Division, $600 Southern California Association of Governments, $3,250 San Bernardino County Transportation Authority (SBCTA), $10,105 San Bernardino Council of Governments (COGS) Housing Trust Fund, $22,000 National League of Cities, $3,500 Costco/Sam’s Club memberships, $400 Foothill Gold Line Extension JPA Corridor, $3,500 Provision for increases, $2,000 52130 TRAVEL AND MEETINGS – $22,400
Attendance at conferences and meetings – for detail see "Worksheet – Justification of Conference and In-Service Training Request Schedule A – Travel & Meetings." A-11
FY 2025-26 City of Montclair Preliminary Budget Page 169 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Council Program: 4101 City Council Object Number 52190 SPECIAL CONSULTING SERVICES – $65,000 ($72,000 approved in City Manager’s Budget) David Turch & Associates (Agreement No. 15-56, for federal legislative advocate consulting services) 52540 VOCATIONAL TRAINING – $4,000 (Only $2,000 approved in City Manager’s Budget) Attendance at vocational training classes – For detail see "Worksheet Justification of Conference and In-Service Training Request Schedule B–Vocational Training." 52900 REEDER RANCH EXPENSES – $10,000 Contract services, building upgrades, and program services for the Reeder Ranch. 52990 MISCELLANEOUS EXPENDITURES – $35,000 Special awards and certificates, $3,000 City Hall household-fund contribution, $5,000 City Council meeting refreshments, $3,000 Special event and City programming, $10,000 ($15,000 approved in City Manager’s Budget) Holiday Flag Program, $4,000Yard Signs, $10,000 (Only $5,000 approved in City Manager’s Budget) A-12
FY 2025-26 City of Montclair Preliminary Budget Page 170 of 741 City Manager
FY 2025-26 City of Montclair Preliminary Budget Page 171 of 741

DEPARTMENT BUDGET SUMMARY
Department
City Manager
Overview
The City Manager is the agency’s chief administrative officer responsible for day-to-day operations of the organization, departments, and programs. Reporting directly to the City Council, the City Manager implements the policies, goals, strategic plans, and objectives of the elected body; develops funding sources and executes sound fiscal practices; presents the annual City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation budgets and capital improvement program; ensures the effective and efficient operation of the City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation; and coordinates local issues with regional, state, and federal policy-making bodies. The City Manager monitors the performance of the City Attorney and directly supervises heads of each City department.

The City Manager also supervises the following programs included in this department: Information Technology which provides for technological needs including research/assessment/development, multimedia services, and hardware/software/network maintenance; Finance which addresses the organization’s fiduciary obligations, provides appropriate fiscal management, offers traditional finance-related services, and produces budget-related documents—including annual budgets, capital improvement plans, and investment policies for the City, Redevelopment Agency, and Housing Corporation; and Solid Waste which administers utility billing services, recycling programs, and refuse-related services.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 2,306,496 2,474,533 2,418,414
Services and Supplies 4,331,756 4,440,207 4,408,319
Capital Outlay 402,700 308,000 233,000
Total 7,040,952 7,222,740 7,059,733
Personnel Authorized 15.88 (FT) 15.88 (FT) 15.88 (FT)

2.00 (PT) 2.00 (PT) 2.00 (PT)
Department Distribution
City Manager 538,478 552,739 551,063
Information Technology Services 1,734,933 1,867,385 1,769,212 Financial Services 1,087,310 1,177,766 1,129,058
Solid Waste Disposal 3,680,231 3,624,850 3,610,400
Total 7,040,952 7,222,740 7,059,733
Source of Funds
General Fund 6,233,304 6,502,041 6,434,676
Gas Tax Fund 3,200 3,200 3,200
Federal Asset Forfeiture – DOJ 3,500 1,000 1,000
Recycling Grant Fund 105,000 31,000 31,000
After-School Program 6,975 9,321 9,321
After-School Program – Indirect 122,154 156,507 156,507 Staff Charges
Economic Development Fund 2,500 3,615 3,615
2021 Lease Revenue Bond Fund 81,355 86,168 0
Sewer Operating Fund 198,866 205,889 196,415
Sewer Operating Fund – Indirect 284,078 223,999 223,999 Staff Charges
Total 7,040,952 7,222,740 7,059,733
B-1 FY 2025-26 City of Montclair Preliminary Budget Page 172 of 741 PAGE 1 OF 3
DEPARTMENT: OFFICE OF THE CITY MANAGER DEPARTMENT SUMMARY Salary Date Salary Calculations
Class Title/ Range Last Step First Rate Second RateEmployee Name July 1 Raise Months Rate Months Rate Full Time:Administration from other Departments/Entities .20 C 12.0 18,997 45,593 45,593
City Manager/Executive Director
Office of Administrative Services
E 12.0 25,376 304,512 304,512
Director of Information Technology
D 07/05/24 0.2 16,743 11.8 17,580 210,793 210,793
Director of Finance
E 12.0 17,580 210,960 210,960
Finance Supervisor
C 01/17/25 6.5 8,885 5.5 9,329 109,062 109,062
Information Technology Supervisor
A 12.0 9,676 116,112 116,112
Information Technology Analyst
E 12.0 9,627 115,524 115,524
Information Technology Specialist
C 10/03/24 3.1 6,582 8.9 6,911 81,912 81,912
E 12.0 7,256 87,072 87,072

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Next Year
Salary
Total
Next Year
Administration
Recommended by
Includes % Increase (if any)
B-2
FY 2025-26 City of Montclair Preliminary Budget Page 173 of 741 PAGE 2 OF 3
DEPARTMENT: OFFICE OF THE CITY MANAGER DEPARTMENT SUMMARY Salary Date Salary Calculations
Class Title/ Range Last Step First Rate Second RateEmployee Name July 1 Raise Months Rate Months Rate

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Next Year
Salary
Total
Next Year
Administration
Recommended by
Includes % Increase (if any)
Senior Accountant
D 02/28/25 8.0 7,131 4.0 7,488 87,000 87,000
D 04/24/25 9.2 7,131 2.8 7,488 86,572 86,572
Payroll Analyst
A 0.9 5,867 11.1 6,160 73,656 73,656
Accounting Specialist
C 11/22/24 4.7 4,760 7.3 4,998 58,857 58,857
D 05/21/25 10.3 4,998 1.7 5,248 60,401 60,401
A 04/21/25 3.7 4,317 8.3 4,533 53,597 53,597
Customer Service Representative/Office Specialist
A 0.9 3,717 11.1 3,903 46,669 46,669
A 12.0
0 0
0 Administration to other Departments/Entities
(AS 5%, SRDA 2%) -21,316 -21,316
(SRDA 15%) -31,644 -31,644
SRDA 10%) -7,366 -7,366
CFD Admin Costs - Finance -11,986 -11,986
B-3
FY 2025-26 City of Montclair Preliminary Budget Page 174 of 741 PAGE 3 OF 3
DEPARTMENT: OFFICE OF THE CITY MANAGER DEPARTMENT SUMMARY Salary Date Salary Calculations
Class Title/ Range Last Step First Rate Second RateEmployee Name July 1 Raise Months Rate Months Rate

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Next Year
Salary
Total
Next Year
Administration
Recommended by
Includes % Increase (if any)
Part-Time:Accounting Specialist
(29 hrs week) 30.28 hr. 45,662 45,662
Senior Intern (29 hrs week) 21.04 hr. 31,728 31,728
(FT) 1,675,980 1,675,980
Salar
y Requirements: (PT) 77,390 77,390
TOTAL 1,753,370 1,753,370
B-4
FY 2025-26 City of Montclair Preliminary Budget Page 175 of 741 Dept City Mgr Dept. City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Admin from other Depts
Director of Economic Developm 0.20 0.20 0.20 42,159 45,593 City Mgr./Executive Director 1.00 1.00 1.00 304,512 304,512 Office of Administrative Services
Director of Information Tech 1.00 1.00 1.00 210,793 210,793 Director of Finance 1.00 1.00 1.00 200,437 210,960
Finance Supervisor 1.00 1.00 1.00 109,062 109,062
Information Tech Supervisor 1.00 1.00 1.00 113,460 116,112 Information Technology Analyst 1.00 1.00 1.00 115,524 115,524 Information Tech Specialist 2.00 2.00 2.00 168,984 168,984 Senior Accountant 2.00 2.00 2.00 173,572 173,572
Payroll Analyst 1.00 1.00 1.00 73,656 73,656
Accounting Specialist 3.00 3.00 3.00 172,358 172,855
Customer Svc. Rep./Office 2.00 2.00 2.00 96,926 46,669
CFD Admin Costs -11,986 -14,486
Part-Time
Accounting Specialist 1.00 1.00 1.00 45,662 45,662
Senior Intern 1.00 1.00 1.00 31,728 31,728
Full Time 16.20 16.20 16.20 1,781,443 1,748,292
Admin other Departments -0.32 -0.32 -0.32 -70,734 -74,812 Total FT Positions/Salaries 15.88 15.88 15.88 1,710,709 1,673,480 Part Time 2.00 2.00 2.00 77,390 77,390
Additional Pay 2,700 2,700
Overtime 14,100 14,100
Total Salaries & Wages 1,804,899 1,767,670
Benefit Costs 415,363 397,920
PERS Benefit Costs 277,834 276,854
Benefit Costs other Depts -23,563 -24,030
Total Benefit Costs 669,634 650,744
TOTAL 2,474,533 2,418,414

DETAIL OF SALARIES AND WAGES
Department: Office of the City Manager Program: Department Summary

POSITION QUOTA APPROPRIATIONS
B-5 FY 2025-26 City of Montclair Preliminary Budget Page 176 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4202

Department Division Program
City Manager City Manager
Overview
The City Manager is the agency’s chief administrative officer responsible for day-to-day operations of the organization, departments, and programs. Reporting directly to the City Council, the City Manager implements the policies, goals, strategic plans, and objectives of the elected body; develops funding sources and executes sound fiscal practices; presents the annual City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation budgets and capital improvement program; ensures the effective and efficient operation of the City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation; and coordinates local issues with regional, state, and federal policy-making bodies. The City Manager monitors the performance of the City Attorney and directly supervises heads of each City department.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 444,009 451,470 455,594
Services and Supplies 94,469 101,269 95,469
Capital Outlay 0 0 0
Total 538,478 552,739 551,063

Personnel Authorized 1.13 (FT) 1.13 (FT) 1.13 (FT)

Source of Funds
General Fund 454,505 474,072 514,985
2021 Lease Revenue Bond Fund 42,510 42,589 0
Sewer Operating Fund – Indirect 41,463 36,078 36,078
Staff Charges
Total 538,478 552,739 551,063

B-6 FY 2025-26 City of Montclair Preliminary Budget Page 177 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Admin from other Depts
Director of Economic Develo 0.20 0.20 0.20 42,159 45,593 City Mgr./Executive Director
Office of Administrative Ser 1.00 1.00 1.00 304,512 304,512 Admin other Depts -0.07 -0.07 -0.07 -21,316 -21,316

0.93 0.93 0.93 283,196 283,196
Full Time 1.20 1.20 1.20 346,671 350,105
Admin other Departments -0.07 -0.07 -0.07 -21,316 -21,316 Total FT Positions/Salaries 1.13 1.13 1.13 325,355 328,789 Benefit Costs 61,879 62,109
PERS Benefit Costs 72,733 73,193
Benefit Costs other Depts -8,497 -8,497
Total Benefit Costs 126,115 126,805
TOTAL 451,470 455,594

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Office of the City Manager Program: 4202 City Manager B-7 FY 2025-26 City of Montclair Preliminary Budget Page 178 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
City Manager 4202 City Manager
Work Program

1. Serve as the City, Successor Redevelopment Agency, Successor Housing Authority, Housing Corporation, and Finance Authority Chief Executive Officer.

2. Coordinate the City's strategic planning process.

3. Lead City departments to achieve common and uncommon goals and objectives for the community.

4. Respond to policy directives established by the City Council.

5. Manage and coordinate programs directly supervised by the City Manager/Executive Director.

6. Develop timely and analytical approaches for resolving issues facing the community.

7. Develop procedures that effectively deal with mandates imposed by the state and federal governments.

8. Ensure proper staff coordination and interaction with various federal, state, and local agencies.

9. Focus limited municipal resources and energies on issues that have the greatest relevancy for the City.

10. Ensure appropriate manpower levels to provide a comprehensive program of municipal services.

11. Where possible establish proactive, not reactive, approaches to community and organizational issues.

12. Prepare and submit to the City Council annual budgets for the City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation; effectively address downturns in revenues.

13. Coordinate disaster recovery efforts during episodes that may require such attention.

14. Develop funding priorities and revenue sources that promote the City's fiscal integrity.

15. Administer the City's day-to-day business operations.

16. Oversee the legislative advocacy program.

17. Direct completion of specified Capital Improvement Plan (CIP) projects.

18. Address and resolve fiscal issues related to any economic downturn; and implement strategic planning policy recommendations approved by the City Council.

19. Address ongoing issues related to pension-related costs, policies, and practices.

20. Work with Los Angeles County Metropolitan Transportation Authority, Metro Gold Line Foothill Extension Construction Authority, San Bernardino County Transportation Authority, and local Legislators regarding the Gold Line Extension to Montclair.

21. Work with CIM Group to redevelop Montclair Place.

22. Initiate changes to the City's sign ordinance.

23. Promote development within North Montclair and its vision for a transit district and high-density housing.

24. Develop alternative plans for Fire/emergency medical service delivery.

25. Oversee development of the General Plan Update.

26. Develop a plan for acquiring the Montclair Transcenter from Caltrans for development-related purposes.

Personnel Services – $451,470
Salary requests are for: City Manager/Executive Director Office of Administrative Services (0.93) – $283,196; Director of Economic Development Agency (0.20) – $42,159. Cost allocations are as follows: full-time salaries – $325,355; benefit costs – $126,115.

Services and Supplies – $101,269
Funding requested is for: books and publications – $519; community benefits – $10,000; dues and memberships – $1,900; travel and meetings – $12,450; mileage/auto allowance – $11,400; special consulting services – $50,000; special contract services – $10,000; miscellaneous expenditures – $5,000.

Capital Outlay
No funding requested.

B-8 FY 2025-26 City of Montclair Preliminary Budget Page 179 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:35PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4202 City Manager
E10 Personnel Services
380,683 363,049 289,510.00 0.00 41010-400-00000Regular Earnings 0.00 294,904.00 328,789.00 0.00 0.00 2,769 2,723 0.00 0.00 44170-400-00000Holiday Pay 0.00 0.00 0.00 0.00 0.00 5,816 7,237 6,641.00 0.00 44190-400-00000Sick Leave Redemption 0.00 6,759.00 7,462.00 0.00 0.00 0 0 19,158.00 0.00 45220-400-00000Benefit Plan 0.00 19,776.00 21,696.00 0.00 0.00 47,288 1,743 22,173.00 0.00 45240-400-00000Deferred Compensation 0.00 22,443.00 25,065.00 0.00 0.00 51,530 63,034 60,436.00 0.00 45250-400-00000P.E.R.S. 0.00 61,328.00 68,497.00 0.00 0.00 1,440 1,215 1,130.00 0.00 45270-400-00000LTD Insurance 0.00 1,135.00 1,270.00 0.00 0.00 2,294 2,030 1,918.00 0.00 45290-400-00000Life Insurance 0.00 1,925.00 2,154.00 0.00 0.00 1,326 587 533.00 0.00 45330-400-00000Medicare 0.00 611.00 661.00 0.00 0.00 493,146 441,617 401,499 0 Personnel Services Totals: 0.00 408,881 455,594 0 0 E20 Services & Supplies
275 515 519.00 0.00 51020-400-00000Books and Publications 0.00 519.00 519.00 0.00 0.00 3,716 8,673 10,000.00 0.00 52110-400-00000Community Benefits 0.00 10,000.00 8,500.00 0.00 0.00 1,186 461 1,900.00 0.00 52120-400-00000Dues & Memberships 0.00 1,900.00 1,900.00 0.00 0.00 12,629 6,972 10,650.00 0.00 52130-400-00000Travel & Meetings 0.00 12,450.00 11,650.00 0.00 0.00 8,230 7,581 11,400.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 11,400.00 11,400.00 0.00 0.00 31,547 18,530 45,000.00 0.00 52190-400-00000Special Consulting Services 0.00 50,000.00 50,000.00 0.00 0.00 41,484 0 10,000.00 0.00 52450-400-00000Special Contract Services 0.00 10,000.00 7,500.00 0.00 0.00 0 3,460 0.00 0.00 52850-400-00000Cellular Phone Expense 0.00 0.00 0.00 0.00 0.00 1,637 932 5,000.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 5,000.00 4,000.00 0.00 0.00 100,705 47,124 94,469 0 Services & Supplies Totals: 0.00 101,269 95,469 0 0 E40 Other Financing Uses
GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 1
B-9 FY 2025-26 City of Montclair Preliminary Budget Page 180 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(25,552) (54,945) -41,463.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -36,078.00 -36,078.00 0.00 0.00 (25,552) (54,945) (41,463) 0 Other Financing Uses Totals: 0.00 (36,078) (36,078) 0 0 568,299 433,797 454,505 0 EXPENDITURES TOTALS: 0.00 474,072 514,985 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
568,299 433,797 454,505 0 DEPT EXPENSES 0.00 474,072 514,985 0 0 (568,299) (433,797) (454,505) 0 City Manager Totals: 0.00 (474,072) (514,985) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
568,299 433,797 454,505 0 FUND EXPENSES 0.00 474,072 514,985 0 0 (568,299) (433,797) (454,505) 0 General Fund Totals: 0.00 (474,072) (514,985) 0 0 1253 2021 Lease Rev Bond Proceeds
4202 City Manager
E10 Personnel Services
0 0 30,451.00 0.00 41010-400-00000Regular Earnings 0.00 30,451.00 0.00 0.00 0.00 0 0 703.00 0.00 44190-400-00000Sick Leave Redemption 0.00 703.00 0.00 0.00 0.00 0 0 1,860.00 0.00 45220-400-00000Benefit Plan 0.00 1,920.00 0.00 0.00 0.00 0 0 2,450.00 0.00 45240-400-00000Deferred Compensation 0.00 2,450.00 0.00 0.00 0.00 0 0 6,690.00 0.00 45250-400-00000P.E.R.S. 0.00 6,709.00 0.00 0.00 0.00 0 0 132.00 0.00 45270-400-00000LTD Insurance 0.00 132.00 0.00 0.00 0.00 0 0 224.00 0.00 45290-400-00000Life Insurance 0.00 224.00 0.00 0.00 0.00 0 0 42,510 0 Personnel Services Totals: 0.00 42,589 0 0 0 0 0 42,510 0 EXPENDITURES TOTALS: 0.00 42,589 0 0 0
GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 2
B-10 FY 2025-26 City of Montclair Preliminary Budget Page 181 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
0 0 42,510 0 DEPT EXPENSES 0.00 42,589 0 0 0
0 0 (42,510) 0 City Manager Totals: 0.00 (42,589) 0 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
0 0 42,510 0 FUND EXPENSES 0.00 42,589 0 0 0
0 0 (42,510) 0 2021 Lease Rev Bond Proceeds Totals: 0.00 (42,589) 0 0 0 1501 Sewer Operating Fund
4202 City Manager
E40 Other Financing Uses
25,552 54,945 41,463.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 36,078.00 36,078.00 0.00 0.00 25,552 54,945 41,463 0 Other Financing Uses Totals: 0.00 36,078 36,078 0 0 25,552 54,945 41,463 0 EXPENDITURES TOTALS: 0.00 36,078 36,078 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
25,552 54,945 41,463 0 DEPT EXPENSES 0.00 36,078 36,078 0 0 (25,552) (54,945) (41,463) 0 City Manager Totals: 0.00 (36,078) (36,078) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
25,552 54,945 41,463 0 FUND EXPENSES 0.00 36,078 36,078 0 0 (25,552) (54,945) (41,463) 0 Sewer Operating Fund Totals: 0.00 (36,078) (36,078) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 3
B-11 FY 2025-26 City of Montclair Preliminary Budget Page 182 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
593,851 488,742 538,478 0 REPORT EXPENSES 0.00 552,739 551,063 0 0 (593,851) (488,742) (538,478) 0 REPORT TOTALS: 0.00 (552,739) (551,063) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 4
B-12 FY 2025-26 City of Montclair Preliminary Budget Page 183 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: City Manager Program: 4202 City ManagerObject Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense

CONFERENCES/SEMINARS
California Public Employee LaborRelations Association
52130 Annual Conference Monterey, CA November 2025 $5,200 City Manager ($2,600 each x 2 = $5,200)
Asst CM/Comm Economic Development
San Bernardino County
52130 City/County Conference Lake Arrowhead, CA May 2026 $2,500 City Manager ($500 each x 5 = $2,500) Asst CM/Comm Economic Development Assistant City Manager/Director HS Police Chief Director of Community Development Finance Miscellaneous Meetings
52130 CMTA Quarterly and CSMFO TBA TBA $750
Director of Finance Bimonthly Meetings
Accounting Specialists Customer Service Representatives 52130 IT Service/Training Skill TBA TBA $1,000
Director of Information Technology Development
IT Staff
B-13
FY 2025-26 City of Montclair Preliminary Budget Page 184 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: City Manager Program: 4202 City ManagerObject Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense Miscellaneous
52130 Healthy Cities and Communities; $3,000
City Manager local conferences and meetings;
legislative hearings; meetings
Asst CM/Comm Economic Development with legislative advocates; and consultant meetings
Total: $12,450
(Only $11,650 approved in City Manager’s Budget)
B-14
FY 2025-26 City of Montclair Preliminary Budget Page 185 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4202 City Manager Object Number 51020 BOOKS AND PUBLICATIONS – $519 E-Wall Street Journal, $100 E-Washington Post, $100 E-Sacramento Bee, $100
E-LA Times, $90
E-Atlantic, $129
52110 COMMUNITY BENEFITS – $10,000 (Only $8,500 approved in City Manager’s Budget) City contributions supporting employee and community oriented activities including holiday-related events (Memorial Day, Flag Day, Independence Day, etc.) and events supporting special programs, services, dedications, and festivals. 52120 DUES AND MEMBERSHIPS – $1,900
California Public Employers Labor Relations Association (CALPELRA), $1,200 City Management Foundation, $300 International City/County Management Association, $350 Unanticipated adjustments, $50 52130 TRAVEL AND MEETINGS – $12,450 (Only $11,650 approved in City Manager’s Budget) Attendance at conferences and meetings – for detail see "Worksheet – Justification of Conference and In-Service Training Request Schedule A – Travel & Meetings." 52190 SPECIAL CONSULTING SERVICES – $50,000 HdL Special Consulting Services – property tax audits and cannabis program development.

B-15
FY 2025-26 City of Montclair Preliminary Budget Page 186 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4202 City Manager Object Number 52450 SPECIAL CONTRACT SERVICES – $10,000 (Only $7,500 approved in City Manager’s Budget) Special services related to lease/general obligation revenue bonds, public facilities projects, survey instruments, development of Montclair Place, and other professional services.
52990 MISCELLANEOUS EXPENDITURES – $5,000 (Only $4,000 approved in City Manager’s Budget) Special awards, $500 Programs supporting organizational activities, $3,000 City promotional materials, $1,500 B-16
FY 2025-26 City of Montclair Preliminary Budget Page 187 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4203
Department Division Program
City Manager Information Technology Services
Program Description
The Information Technology Services Program provides full-service electronic data and technology support designed to accommodate the organization's computer hardware, software, email, local area network (LAN), wide area network (WAN), wireless, cable, telecommunications, voice/video technology, GIS, and Internet service requirements. The program is also responsible for development and maintenance of the City’s E-government site.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 784,348 863,947 866,862
Services and Supplies 652,623 695,438 669,350
Capital Outlay 297,962 308,000 233,000
Total 1,734,933 1,867,385 1,769,212
Personnel Authorized 5.00 (FT) 5.00 (FT) 5.00 (FT)

1.00 (PT) 1.00 (PT) 1.00 (PT)
Source of Funds
General Fund 1,498,476 1,642,968 1,544,795
After-School Program 6,975 9,321 9,321
After-School Program – Indirect 74,745 95,835 95,835
Staff Charges
Economic Development Fund 2,500 3,615 3,615
Sewer Operating Fund 1,284 575 575
Sewer Operating Fund – Indirect 148,453 115,071 115,071 Staff Charges
Forfeiture Fund Federal DOJ 2,500 0 0
Total 1,734,933 1,867,385 1,769,212
B-17 FY 2025-26 City of Montclair Preliminary Budget Page 188 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Director of Information Tech 1.00 1.00 1.00 210,793 210,793 Information Tech Supervisor 1.00 1.00 1.00 113,460 116,112 Information Tech Analyst 1.00 1.00 1.00 115,524 115,524 Information Tech Specialist 2.00 2.00 2.00 168,984 168,984 Part-Time
Senior Intern 1.00 1.00 1.00 31,728 31,728
Full Time 5.00 5.00 5.00 608,761 611,413
Part Time 1.00 1.00 1.00 31,728 31,728
Overtime 10,000 10,000
Total Salaries & Wages 650,489 653,141
Benefit Costs 124,449 124,500
PERS Benefit Costs 89,009 89,221
Total Benefit Costs 213,458 213,721
TOTAL 863,947 866,862

DETAIL OF SALARIES AND WAGES
Department: Office of the City Manager Program: 4203 Information Technology Svcs

POSITION QUOTA APPROPRIATIONS
B-18 FY 2025-26 City of Montclair Preliminary Budget Page 189 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
City Manager 4203 Information Technology Services

Work Program

1. Confer and negotiate with available vendors for hardware and software support.

2. Maintain the City's email program and continue archiving of e–mail messages in compliance with federal, state, local, and case law.

3. Maintain local and wide area networks for all City facilities.

4. Evaluate, address, and resolve user requirements for hardware and software.

5. Maintain the City websites in compliance with federal regulations and integrate with GIS mapping, economic development modules, and archival research.

6. Maintain a computer hardware/software maintenance program.

7. Enforce policies and procedures for computer assets, telecommunications, and Internet/email access.

8. Maintain the Laserfiche document imaging system and promote a citywide document-imaging program.

9. Maintain and enhance the Citywide GIS system and integrate new technology.

10. Integrate state-of-the-art technology for all City facilities.

11. Oversee technology requirements for all departments including mobile data computers (MDCs) for Police and Fire.

12. Provide creative IT solutions in support of City activities.

13. Provide for facilities-wide security monitoring systems to ensure the safety of the public and security of buildings, grounds, and personnel.

14. Regularly update cybersecurity policies and plans.

15. Develop and maintain hardware and software replacement plans.

Personnel Services – $863,947
Salary requests are for: Director of Information Technology (1.00) – $210,793; Information Technology Supervisor (1.00) – $113,460; Information Technology Analyst (1.00) – $115,524; Information Technology Specialist (2.00) – $168,984; Senior Intern (1.00/part-time) – $31,728. Cost allocations are as follows: full-time salaries – $608,761; part-time salaries – $31,728; overtime – $10,000; benefit costs – $213,458.

Services and Supplies – $695,438
Funding requested is for: office supplies – indirect – $38,000; uniforms – $900; license/permit/certificates – $3,100; maintenance – office equipment and furniture – $51,050; mileage/auto allowance – $8,400; special contract services – $460,326; small equipment – $24,450; cellular phone expenses – $109,212.

Capital Outlay – $308,000
Funding requested is for: LCD monitors – $8,000; desktop computers – $40,000; server and storage upgrade for Fire Station 1 and City Yard – $55,000; Montclair Youth Center audio and visual upgrade – $50,000; Office 365 migration and deployment – $55,000; Montclair Police Department debriefing room renovation – $22,000; Council Member office furniture replacement – $18,000; Alma Hofman Park security cameras – $40,000; Assistant City Manager office furniture – $20,000.

B-19 FY 2025-26 City of Montclair Preliminary Budget Page 190 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:35PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4203 Information Technology Svcs
E10 Personnel Services
459,442 546,287 555,352.00 0.00 41010-400-00000Regular Earnings 0.00 608,761.00 611,413.00 0.00 0.00 1,740 0 25,304.00 0.00 42020-400-00000Part Time Wages 0.00 31,728.00 31,728.00 0.00 0.00 13,266 0 0.00 0.00 42020-400-42020Part Time Benefitted Wages 0.00 0.00 0.00 0.00 0.00 9,016 9,604 6,000.00 0.00 43010-400-00000Overtime 0.00 10,000.00 10,000.00 0.00 0.00 4,195 5,701 8,053.00 0.00 44190-400-00000Sick Leave Redemption 0.00 9,016.00 9,016.00 0.00 0.00 0 0 85,800.00 0.00 45220-400-00000Benefit Plan 0.00 88,800.00 88,800.00 0.00 0.00 7,993 8,628 9,191.00 0.00 45240-400-00000Deferred Compensation 0.00 10,540.00 10,540.00 0.00 0.00 58,013 74,891 80,134.00 0.00 45250-400-00000P.E.R.S. 0.00 89,009.00 89,221.00 0.00 0.00 1,886 1,997 2,433.00 0.00 45270-400-00000LTD Insurance 0.00 2,548.00 2,560.00 0.00 0.00 1,784 1,822 2,092.00 0.00 45290-400-00000Life Insurance 0.00 2,291.00 2,291.00 0.00 0.00 7,209 8,266 8,420.00 0.00 45330-400-00000Medicare 0.00 9,287.00 9,326.00 0.00 0.00 959 0 1,569.00 0.00 45340-400-00000Social Security 0.00 1,967.00 1,967.00 0.00 0.00 565,504 657,197 784,348 0 Personnel Services Totals: 0.00 863,947 866,862 0 0 E20 Services & Supplies
42,185 63,701 50,000.00 0.00 51050-400-00000Office Supplies-Indirect 0.00 38,000.00 48,000.00 0.00 0.00 0 500 500.00 0.00 51100-400-00000Uniforms 0.00 900.00 450.00 0.00 0.00 0 0 3,100.00 0.00 51150-400-00000License/Permits/Certificates 0.00 3,100.00 2,000.00 0.00 0.00 32,124 29,525 51,050.00 0.00 52010-400-00000Maintenance - Office Equipment 0.00 51,050.00 51,050.00 0.00 0.00 8,150 7,700 8,400.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 8,400.00 8,400.00 0.00 0.00 262,933 571,738 420,000.00 0.00 52450-400-00000Special Contract Services 0.00 460,326.00 430,000.00 0.00 0.00 23,908 21,549 23,450.00 0.00 52690-400-00000Small Equipment 0.00 23,450.00 23,450.00 0.00 0.00 0 0 82,864.00 0.00 52850-400-00000Cellular Phone Expense 0.00 96,701.00 92,489.00 0.00 0.00 330 98 0.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 0.00 0.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 1
B-20 FY 2025-26 City of Montclair Preliminary Budget Page 191 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
369,630 694,811 639,364 0 Services & Supplies Totals: 0.00 681,927 655,839 0 0 E30 Capital Outlay
211,806 606,666 283,000.00 0.00 62010-400-00000Office Equipment/Furniture 0.00 308,000.00 233,000.00 0.00 0.00 211,806 606,666 283,000 0 Capital Outlay Totals: 0.00 308,000 233,000 0 0 E40 Other Financing Uses
(85,505) (134,079) -148,453.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -115,071.00 -115,071.00 0.00 0.00 (38,528) (49,697) -74,745.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -95,835.00 -95,835.00 0.00 0.00 (124,033) (183,776) (223,198) 0 Other Financing Uses Totals: 0.00 (210,906) (210,906) 0 0 1,022,907 1,774,897 1,483,514 0 EXPENDITURES TOTALS: 0.00 1,642,968 1,544,795 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
1,022,907 1,774,897 1,483,514 0 DEPT EXPENSES 0.00 1,642,968 1,544,795 0 0 (1,022,907) (1,774,897) (1,483,514) 0 Information Technology Svcs Totals: 0.00 (1,642,968) (1,544,795) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
1,022,907 1,774,897 1,483,514 0 FUND EXPENSES 0.00 1,642,968 1,544,795 0 0 (1,022,907) (1,774,897) (1,483,514) 0 General Fund Totals: 0.00 (1,642,968) (1,544,795) 0 0 1160 After-School Program Grant
4203 Information Technology Svcs
E20 Services & Supplies
0 0 6,975.00 0.00 52850-400-00000Cellular Phone Expense 0.00 9,321.00 9,321.00 0.00 0.00 0 0 6,975 0 Services & Supplies Totals: 0.00 9,321 9,321 0 0 E40 Other Financing Uses
38,528 49,697 74,745.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 95,835.00 95,835.00 0.00 0.00 38,528 49,697 74,745 0 Other Financing Uses Totals: 0.00 95,835 95,835 0 0 38,528 49,697 81,720 0 EXPENDITURES TOTALS: 0.00 105,156 105,156 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 2
B-21 FY 2025-26 City of Montclair Preliminary Budget Page 192 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
38,528 49,697 81,720 0 DEPT EXPENSES 0.00 105,156 105,156 0 0 (38,528) (49,697) (81,720) 0 Information Technology Svcs Totals: 0.00 (105,156) (105,156) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
38,528 49,697 81,720 0 FUND EXPENSES 0.00 105,156 105,156 0 0 (38,528) (49,697) (81,720) 0 After-School Program Grant Totals: 0.00 (105,156) (105,156) 0 0 1206 Economic Development Agency
4203 Information Technology Svcs
E20 Services & Supplies
0 0 1,000.00 0.00 52690-400-00000Small Equipment 0.00 1,000.00 1,000.00 0.00 0.00 0 0 1,500.00 0.00 52850-400-00000Cellular Phone Expense 0.00 2,615.00 2,615.00 0.00 0.00 0 0 2,500 0 Services & Supplies Totals: 0.00 3,615 3,615 0 0 0 0 2,500 0 EXPENDITURES TOTALS: 0.00 3,615 3,615 0 0
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
0 0 2,500 0 DEPT EXPENSES 0.00 3,615 3,615 0 0
0 0 (2,500) 0 Information Technology Svcs Totals: 0.00 (3,615) (3,615) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
0 0 2,500 0 FUND EXPENSES 0.00 3,615 3,615 0 0
0 0 (2,500) 0 Economic Development Agency Totals: 0.00 (3,615) (3,615) 0 0 1501 Sewer Operating Fund
4203 Information Technology Svcs
E20 Services & Supplies
0 0 1,284.00 0.00 52850-400-00000Cellular Phone Expense 0.00 575.00 575.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 3
B-22 FY 2025-26 City of Montclair Preliminary Budget Page 193 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 1,284 0 Services & Supplies Totals: 0.00 575 575 0 0 E40 Other Financing Uses
85,505 134,079 148,453.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 115,071.00 115,071.00 0.00 0.00 85,505 134,079 148,453 0 Other Financing Uses Totals: 0.00 115,071 115,071 0 0 85,505 134,079 149,737 0 EXPENDITURES TOTALS: 0.00 115,646 115,646 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
85,505 134,079 149,737 0 DEPT EXPENSES 0.00 115,646 115,646 0 0 (85,505) (134,079) (149,737) 0 Information Technology Svcs Totals: 0.00 (115,646) (115,646) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
85,505 134,079 149,737 0 FUND EXPENSES 0.00 115,646 115,646 0 0 (85,505) (134,079) (149,737) 0 Sewer Operating Fund Totals: 0.00 (115,646) (115,646) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
1,146,940 1,958,673 1,717,471 0 REPORT EXPENSES 0.00 1,867,385 1,769,212 0 0 (1,146,940) (1,958,673) (1,717,471) 0 REPORT TOTALS: 0.00 (1,867,385) (1,769,212) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 4
B-23 FY 2025-26 City of Montclair Preliminary Budget Page 194 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4203 Information Technology Services Object Number 51050 OFFICE SUPPLIES – INDIRECT – $38,000 ($48,000 approved in City Manager’s Budget) Assorted media (CDR and CDRW disks, DVDR and DVDRW disks, memory cards/drives), $4,000 Media, forms, and stock related to Springbrook Finance Suite report requirements, $3,000 Assorted cabling (CAT 6 patch and extended run, serial, parallel, firewire and USB), $4,000 Laser, laser color, and inkjet cartridges, $8,000 Various hardware and software enhancements/upgrades and license extensions, $14,000 Photo ID-card system supplies, $2,000 Miscellaneous I.T. office supplies, $3,000 51100 UNIFORMS – $900 (Only $450 approved in City Manager’s Budget) Uniform sets for Information Technology personnel (2 sets for 4 employees @ $225 per employee). 51150 LICENSE/PERMITS/CERTIFICATES – $3,100 (Only $2,000 approved in City Manager’s Budget) Funding for ASCAP license, $525 BMI license, $450 MPLC license, $800 SESAC license, $1,200 Provision for increases, $125 52010 MAINTENANCE – OFFICE EQUIPMENT AND FURNITURE – $51,050 Local Area Network (LAN) maintenance, $8,000 P.C. components/printer maintenance, $6,000 A/V Equipment Maintenance, $15,000 Ricoh/Aficio 8320S digital copier system (main City Hall copier system), $5,000 SHARP digital copier system maintenance (City Hall Main Lobby), $7,500 Excess copier charges for all copier systems, $3,500 Neopost IS-460 automatic mail machine with scale, $1,000 Continued on next page B-24
FY 2025-26 City of Montclair Preliminary Budget Page 195 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4203 Information Technology Services Object Number 52010 MAINTENANCE – OFFICE EQUIPMENT AND FURNITURE – continued Neopost DS-75 folder and inserter, $1,300 Lexmark Copier, $3,000 Unanticipated adjustments, $750 52450 SPECIAL CONTRACT SERVICES – $460,326 (Only $430,000 approved in City Manager’s Budget) Frontier FIOS Point-to-Point TLS connectivity for City Hall, Police, and City Yard locations ($600 per month), $7,200 Frontier FIOS Internet connectivity 5GB/5GB for all City facilities ($1,000 per month), $12,000 Frontier TV service for Civic Center, Senior Center, and Human Services ($200 per month), $2,400 DirectTV for HS Gym ($150 per month), $1,800 Frontier High-Speed Fiber 1GB/1GB for Fire Station 2 and City Yard ($500 per month), $6,000 Frontier High-Speed Fiber for Saratoga and Kingsley Park, and Hurst Property 1GB/1GB ($300 per month per site/$1,200 monthly),$14,400 Frontier Fiber for Reeder Ranch, Transcenter, and Alma Hoffman Park 1GB/1GB ($300 per month per site/$900 monthly), $10,800 Proud City Annual maintenance for the City’s Website, $10,600 Verizon Wireless data cards special contract service support (20 cards @ $40 each per month), $15,895 ASSI Security system MPD support and maintenance, $11,000 annually Verizon wireless service for MPD MDCs, $20,000 annually MPD/San Bernardino County support/maintenance/access for CLETS, JAIL, WARRANTS, IDENTIC, CALPHOTO, JUSTICE, CALGANG, SUPER NAME SEARCH ($367 per quarter), $1,468 annually Barracuda email archiving maintenance and support, $13,000 annually Frontier Internet service for MPD and Fire Station 1 ($500 per month), $6,000 annually Frontier Internet service for City Yard and Fire Station 2 ($500 per month), $6,000 annually Spectrum TV Service for MPD facility ($300 per month), $3,600 annually DataTree DocEdge for Code Enforcement ($100 per month), $1,200 annually GIS Arc info suite service maintenance and technical support, $2,400 annually Cisco SMARTnet software updates, $1,000 annually Continued on next page B-25
FY 2025-26 City of Montclair Preliminary Budget Page 196 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4203 Information Technology Services Object Number 52450 SPECIAL CONTRACT SERVICES – continued Cisco router technical support, $800 annually SeamlessGov Form Builder for online form creation and submission, $24,000 annually Laserfiche maintenance support/City Hall – Additional Licenses for Records Retention policy, $13,000 annually Laserfiche maintenance support/MPD – Additional Licenses for Records Retention policy, $8,500 annually ESRI Community Analyst, $2,495 annually ESRI ArcGIS EOC Maintenance, $2,000 annually Springbrook Suite of Software maintenance and support, $96,000 annually Telepacific Analog Lines for PD EOC (3 lines @ $50 each per month), $1,800 Netmotion MDC Software Maintenance, $6,362 annually 2FA authentication MDC Maintenance, $966 annually Mitel Phone Controller Annual Maintenance, $8,000 annually Cisco Firepower Amp Endpoint for Desktop Security, $7,000 GoGov Code Enforcement and Building Permits, $19,000 Barracuda Annual Maintenance, $8,500 Jamf BYOB Management for Smart Devices, $5,000 Backblaze Cloud Backup for Server and Z Drive Civic Center and PD, $5,000 VEEAM Backup for Desktop, $9,000 Archive Social, $6,500 KnowBe4 Phishing Training Annual, $19,000 Microsoft Office 365 Subscription Annual, $45,000 Adobe Professional Licenses Subscription Annual, $8,000 ADT Alarm monitoring for Civic Center and City Yard ($500 per month), $6,000 The Technology Depot phone service local and long-distance calling service ($800 per month), $9,600 Weight room cable television service, $1,200Internet hot spot service, $840 B-26
FY 2025-26 City of Montclair Preliminary Budget Page 197 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4203 Information Technology Services Object Number 52690 SMALL EQUIPMENT – $24,450 Printer rollers and replacement parts, $1,500 Printer replacement kits, $1,500 UPS battery backup units (15 @ $100 each), $1,500 Laserjet printers to replace Laserjet legacy printers (5 @ $300 each), $1,500 Cat 6 cables (6 boxes @ $200 each), $1,200 ID Card Program cards and special equipment needs, $1,500 Computer component upgrades, $1,500 Computer and network toolset, $500 Server component upgrades, $1,500 Computer Network Switch Module upgrades, $2,500 Network Cabling Termination, $5,000 Smart Device Tablets and Smartphones Replacement, $2,500 Replacement cellular phones for City Council (3 @ $300 each), $900 Replacement cellular phones for Administrative Services, $350 Replacement cellular phones for Economic Development Agency, $1,000 (Economic Development Fund) 52850 CELLULAR PHONE EXPENSE – $109,212 (Only $105,000 approved in City Manager’s Budget) Cellular phone service for City Council, $1,795 Cellular phone service for IT Department personnel, $6,700 Cellular phone service for Administrative Services personnel, $1,000 Cellular phone service for Human Services personnel, $4,009 Cellular phone service for the After-School Program, $9,321 (After-School Program Fund) Cellular phone service Police Department (65 phones) for supervisory, investigatory, patrol, and administrative police communications, including School Resource Officers and a social media team; and cellular service for the Command Trailer, $47,682 Cellular phone service for Fire Department personnel, $10,030 B-27
FY 2025-26 City of Montclair Preliminary Budget Page 198 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4203 Information Technology Services Object Number 52850 CELLULAR PHONE EXPENSE – continued Cellular phone service for Public Works Department personnel, $16,985 Cellular phone service for Sewer Maintenance Program personnel, $575 (Sewer Operating Fund) Cellular phone service for Community Development personnel, $6,580 Cellular service for Code Enforcement field laptops (4 @ $480 each), $1,920 Cellular phone service for Economic Development personnel, $2,615 (Economic Development Fund) B-28
FY 2025-26 City of Montclair Preliminary Budget Page 199 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: City Manager Program: 4203 Information Technology ServicesObject Code Item Justification Cost 62010 LCD Monitors Represents an ongoing annual program of replacing/upgrading computer desktop hardware as required. LCD panels save significantly on energy, provide a larger viewing area while requiring a smaller desktop footprint, and do not flicker—minimizing eye strain. The recommendation is for forty (40) 24-inch LCD monitors at $200 each. $8,000
62010 Desktop Computers Represents an ongoing annual program of replacing/upgrading computer desktop hardware as required. Newer desktop computers offer improved performance in all data processingrelated categories. New desktop systems would facilitate the transition to Microsoft's current Windows operating and office systems; more modern desktops are also more energy-efficient. The recommendation is for 40 desktop computers at $1,000 each. $40,000
62010 Server and Storage
Upgrade for Fire Station 1 and City Yard
This request is for funding to replace aging server hardware at Fire Station 1 and the City Yard—both of which have not been replaced in over a decade. These systems have reached the end of their useful life, resulting in degraded performance, limited storage capacity, and increased risk of failure. Upgrading to a modern server infrastructure will significantly enhance processing power, provide expanded shared storage (such as the Z drive), and improve daily operations for Fire and Public Works staff. The new servers will also introduce advanced capabilities for secure backups, data replication, and redundancy between City Hall and remote sites. This is a critical step in strengthening the City’s resilience, ensuring business continuity, and supporting emergency operations. By investing in this upgrade now, we not only improve network reliability and performance, but also proactively safeguard the City's essential data and services against outages, cyber threats, and disaster-related disruptions. $55,000
B-29
FY 2025-26 City of Montclair Preliminary Budget Page 200 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: City Manager Program: 4203 Information Technology ServicesObject Code Item Justification Cost 62010 Montclair Youth Center
Audio and Visual Upgrade
The Montclair Youth Center’s current audio and visual system is outdated and no longer meets the functional and entertainment needs of the facility or the youth it serves. The existing TV displays are aging, the audio quality is subpar, and there is no centralized control system to efficiently manage the equipment. As a space dedicated to youth engagement, learning, and recreation, the center requires a modern, high-quality A/V setup that can support a variety of activities—from movie nights and interactive presentations to gaming and educational programming. An upgraded system will create a more dynamic and immersive environment that keeps young visitors engaged and encourages continued participation in the center’s programs. The proposed upgrade includes the replacement of all outdated TV displays with larger, high-definition screens, installation of enhanced speakers for improved sound clarity, and the integration of a backend control system to seamlessly operate all A/V components from a single interface. This investment will not only improve the entertainment experience but also streamline operations for staff, reduce technical issues, and allow for more versatile use of the space. Modernizing the A/V infrastructure will ensure the Youth Center remains a welcoming, functional, and attractive hub for Montclair’s youth—aligning with the City’s commitment to providing safe, engaging spaces for the community’s younger generation. (Only $15,000 approved in City Manager’s Budget)
$50,000
62010 Office 365 Migration and
Deployment
The City’s current Microsoft Office 2016 licenses are significantly outdated and no longer receive critical security updates or support from Microsoft. This creates a growing vulnerability to cyber threats and system incompatibilities, posing a risk to the City’s digital infrastructure and overall operational security. Upgrading to the latest Office 365 platform is essential to ensure all departments are using supported, secure, and up-to-date software that aligns with modern collaboration and productivity standards.

To carry out this upgrade efficiently and without disruption to daily operations, the IT Department requires deployment tools specifically designed to facilitate seamless migrations. These tools will allow for the smooth transition of all employee accounts—including emails, user settings, and data—into the Office 365 environment with minimal downtime or loss of productivity. This upgrade, supported by proper deployment resources, $55,000
B-30
FY 2025-26 City of Montclair Preliminary Budget Page 201 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: City Manager Program: 4203 Information Technology ServicesObject Code Item Justification Cost is critical to maintaining business continuity, enhancing cybersecurity, and improving the overall efficiency of City operations. Migrating to Office 365 also brings substantial long-term benefits. It offers cloud-based access to essential tools like Outlook, Word, Excel, Teams, and OneDrive, enabling greater flexibility, remote access, and real-time collaboration across departments. With automatic updates and built-in security features, Office 365 ensures the City is always equipped with the latest tools and protections. This move not only supports the City's digital modernization goals but also empowers staff with a more connected, efficient, and resilient working environment. 62010 Montclair Police
Department Debriefing Room Renovation
The Montclair Police Department’s debriefing room is in urgent need of renovation. The current desk furniture is outdated, damaged from years of heavy use, and no longer supports the needs of officers who rely on the space daily to complete their reports and endof-shift documentation. The existing cafeteria-style desk setup wraps around the room in a way that creates crowding, disorganization, and a lack of personal space—particularly during peak hours when multiple officers are trying to work simultaneously. This environment not only contributes to physical discomfort and reduced efficiency but also hinders the ability of officers to focus on detailed and often time-sensitive reporting tasks.

The proposed upgrade includes replacing the broken and poorly designed furniture with a more efficient, ergonomic, and organized workspace layout. New modular desks will provide designated stations for each officer, allowing for better organization of equipment, documents, and report writing. By redesigning the space to optimize workflow and reduce clutter, officers will be able to complete their work more quickly, accurately, and comfortably. This investment directly supports officer productivity, morale, and readiness, while reinforcing the City’s commitment to providing its public safety personnel with the professional working environment they deserve.
$22,000
62010 Council Member Office
Furniture Replacement
The current layout and furniture in the Council Member office no longer meets the functional or spatial needs of the elected officials who now share the space. At the direction of the Mayor, the City is proposing to redesign and furnish the office to better accommodate three Council Members in a shared yet efficient and professional environment. The upgrade will include a new executive-style desk, ergonomic chairs, and appropriately placed shelving to improve organization, accessibility, and the overall aesthetic of the office. This redesign will $18,000
B-31
FY 2025-26 City of Montclair Preliminary Budget Page 202 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: City Manager Program: 4203 Information Technology ServicesObject Code Item Justification Cost allow Council Members to carry out their responsibilities in a more comfortable and effective setting that reflects the dignity of their role. To ensure organization and individualized space within the shared office, the design will also include separate cabinets and designated shelving areas with labeled mail slots for each Council Member. This will help maintain clarity and structure while promoting collaboration in a shared environment. The entire office redesign will also be developed to meet ADA compliance standards, ensuring accessibility for all individuals, including members of the public or staff who may enter the space. This project supports the City’s goal of modernizing workspaces while providing an inclusive and professional atmosphere for its elected officials. 62010 Alma Hofman Park
Security Cameras
Alma Hofman Park, located adjacent to the Civic Center, has increasingly become a target for vandalism, graffiti, and illicit activities, raising serious concerns about public safety and property damage. The park’s playgrounds, gazebo, shark tank area, and walk paths—frequented by families and community members—are vulnerable to damage and unsafe behavior, especially during off-hours. Additionally, the parking area has become a hotspot for unauthorized car meetups and reckless driving stunts, such as donuts, which pose a danger to both people and property. To deter these activities and provide law enforcement with the tools needed for timely response and investigation, the installation of highresolution 4K security cameras is a necessary investment in maintaining the safety and integrity of this community space.

Due to the lack of existing conduit infrastructure for wired surveillance, the proposed solution includes a modern wireless mesh network to power and connect strategically placed cameras. This design will allow for optimal coverage of blind spots—areas often used for illegal drug activity and other unlawful behavior—while providing real-time monitoring capabilities and high-quality video evidence for enforcement and prosecution. The wireless mesh system ensures flexibility in camera placement, cost-effective deployment, and reliability in areas where traditional wiring is not feasible. By investing in this security upgrade, the City is taking a proactive step to protect public spaces, promote community safety, and deter further damage to a valued recreational asset. (Only $20,000 approved in City Manager’s Budget)
$40,000
B-32
FY 2025-26 City of Montclair Preliminary Budget Page 203 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: City Manager Program: 4203 Information Technology ServicesObject Code Item Justification Cost 62010 Assistant City Manager
Office Furniture
Assistant City Manager, is requesting new furniture for her existing office. The proposed custom-designed furniture includes an executive ergonomic desk with sitand-stand functionality. The redesign includes a main work desk, round conference table, two mid-size credenzas for storage, and a bulletin board for task organization. (Not approved in City Manager’s Budget)
$20,000
Total: $308,000
(Only $233,000 approved in City Manager’s Budget)
B-33
FY 2025-26 City of Montclair Preliminary Budget Page 204 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4204
Department Division Program
City Manager Financial Services
Program Description
Responsibilities of the Finance Department include: the investment and safeguarding of City funds; preparation of the annual City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation operating budgets and capital improvement plan; administration of the accounts payable, accounts receivable, fixed assets, payroll, business licensing, and utility billing functions; maintenance of the general ledger; preparation and dissemination of financial statements and reports; administration of revenue funds; administration of bond proceeds; City agent to finance and tax authorities; fiduciary oversight and responsibilities including development of the annual investment policy; and treasury agent.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 930,810 1,011,266 962,558
Services and Supplies 156,500 166,500 166,500
Capital Outlay 0 0 0
Total 1,087,310 1,177,766 1,129,058
Personnel Authorized 8.30 (FT) 8.35 (FT) 8.35 (FT)
Source of Funds
General Fund 877,808 968,130 961,637
Gas Tax Fund 3,200 3,200 3,200
Federal Asset Forfeiture – DOJ 1,000 1,000 1,000
After-School Program – Indirect 47,409 60,672 60,672
Staff Charges
2021 Lease Revenue Bond Fund 38,845 43,579 0
Sewer Operating Fund 24,886 28,335 29,699
Sewer Operating Fund – Indirect 94,162 72,850 72,850
Staff Charges
Total 1,087,310 1,177,766 1,129,058
B-34 FY 2025-26 City of Montclair Preliminary Budget Page 205 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Director of Finance 1.00 1.00 1.00 200,437 210,960
Admin other Depts -0.20 -0.15 -0.15 -30,066 -31,644

0.80 0.85 0.85 170,371 179,316
Finance Supervisor 1.00 1.00 1.00 109,062 109,062
Senior Accountant 2.00 2.00 2.00 173,572 173,572
Payroll Analyst 1.00 1.00 1.00 73,656 73,656
Admin other Depts -0.10 -0.10 -0.10 -7,366 -7,366

0.90 0.90 0.90 66,290 66,290
Accounting Specialist 2.80 2.80 2.80 161,738 162,135
Customer Svc. Rep./Office 0.80 0.80 0.80 40,205 0
CFD Admin Costs -11,986 -14,486
Full Time 8.60 8.60 8.60 758,670 729,385
Admin other Departments -0.30 -0.25 -0.25 -49,418 -53,496 Total FT Positions/Salaries 8.30 8.35 8.35 709,252 675,889 Additional Pay 2,700 2,700
Overtime 4,000 4,000
Total Salaries & Wages 715,952 682,589
Benefit Costs 199,648 185,630
PERS Benefit Costs 110,732 109,872
Benefit Costs other Depts -15,066 -15,533
Total Benefit Costs 295,314 279,969
TOTAL 1,011,266 962,558

DETAIL OF SALARIES AND WAGES
Department: Office of the City Manager Program: 4204 Financial Services

POSITION QUOTA APPROPRIATIONS
B-35 FY 2025-26 City of Montclair Preliminary Budget Page 206 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:35PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4204 Financial Services
E10 Personnel Services
487,997 610,606 610,636.00 0.00 41010-400-00000Regular Earnings 0.00 670,244.00 669,279.00 0.00 0.00 (6,188) (6,807) -7,487.00 0.00 41017-400-00000CFD Admin Reimbursement 0.00 -11,986.00 -14,486.00 0.00 0.00 22,287 2,829 0.00 0.00 42020-400-00000Part Time Wages 0.00 0.00 0.00 0.00 0.00 8,132 1,910 4,000.00 0.00 43010-400-00000Overtime 0.00 4,000.00 4,000.00 0.00 0.00 4,032 4,472 10,707.00 0.00 44190-400-00000Sick Leave Redemption 0.00 12,257.00 12,933.00 0.00 0.00 2,700 2,700 2,700.00 0.00 44250-400-00000Bilingual Pay 0.00 2,700.00 2,700.00 0.00 0.00 0 0 137,100.00 0.00 45220-400-00000Benefit Plan 0.00 142,860.00 132,780.00 0.00 0.00 3,444 7,142 7,940.00 0.00 45240-400-00000Deferred Compensation 0.00 10,441.00 12,273.00 0.00 0.00 58,884 84,653 87,305.00 0.00 45250-400-00000P.E.R.S. 0.00 93,285.00 97,709.00 0.00 0.00 1,979 2,411 2,693.00 0.00 45270-400-00000LTD Insurance 0.00 2,956.00 2,951.00 0.00 0.00 1,680 2,517 2,632.00 0.00 45290-400-00000Life Insurance 0.00 2,878.00 3,018.00 0.00 0.00 7,748 9,166 8,853.00 0.00 45330-400-00000Medicare 0.00 9,717.00 9,702.00 0.00 0.00 420 0 0.00 0.00 45340-400-00000Social Security 0.00 0.00 0.00 0.00 0.00 593,116 721,599 867,079 0 Personnel Services Totals: 0.00 939,352 932,859 0 0 E20 Services & Supplies
0 299 300.00 0.00 51020-400-00000Books and Publications 0.00 300.00 300.00 0.00 0.00 8,150 7,700 8,400.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 8,400.00 8,400.00 0.00 0.00 7,500 7,750 8,000.00 0.00 52190-400-00000Special Consulting Services 0.00 8,500.00 8,500.00 0.00 0.00 35,400 65,600 66,300.00 0.00 52220-400-00000Audit Fees 0.00 68,800.00 68,800.00 0.00 0.00 0 0 500.00 0.00 52240-400-00000Collection Agency Fees 0.00 500.00 500.00 0.00 0.00 4,632 0 5,000.00 0.00 52280-400-00000Bank Fees and Charges 0.00 0.00 0.00 0.00 0.00 (9,121) (12,218) -10,000.00 0.00 52281-400-00000CalCard Incentive Payments 0.00 -10,000.00 -10,000.00 0.00 0.00 72,605 73,595 70,000.00 0.00 52450-400-00000Special Contract Services 0.00 82,000.00 82,000.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 1
B-36 FY 2025-26 City of Montclair Preliminary Budget Page 207 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
5,289 2,895 3,800.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 3,800.00 3,800.00 0.00 0.00 124,454 145,621 152,300 0 Services & Supplies Totals: 0.00 162,300 162,300 0 0 E40 Other Financing Uses
(60,119) (80,203) -94,162.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -72,850.00 -72,850.00 0.00 0.00 (27,089) (29,727) -47,409.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -60,672.00 -60,672.00 0.00 0.00 (87,208) (109,930) (141,571) 0 Other Financing Uses Totals: 0.00 (133,522) (133,522) 0 0 630,362 757,290 877,808 0 EXPENDITURES TOTALS: 0.00 968,130 961,637 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
630,362 757,290 877,808 0 DEPT EXPENSES 0.00 968,130 961,637 0 0 (630,362) (757,290) (877,808) 0 Financial Services Totals: 0.00 (968,130) (961,637) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
630,362 757,290 877,808 0 FUND EXPENSES 0.00 968,130 961,637 0 0 (630,362) (757,290) (877,808) 0 General Fund Totals: 0.00 (968,130) (961,637) 0 0 1102 Gas Tax Fund
4204 Financial Services
E20 Services & Supplies
3,195 3,200 3,200.00 0.00 52190-400-00000Special Consulting Services 0.00 3,200.00 3,200.00 0.00 0.00 3,195 3,200 3,200 0 Services & Supplies Totals: 0.00 3,200 3,200 0 0 3,195 3,200 3,200 0 EXPENDITURES TOTALS: 0.00 3,200 3,200 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
3,195 3,200 3,200 0 DEPT EXPENSES 0.00 3,200 3,200 0 0
(3,195) (3,200) (3,200) 0 Financial Services Totals: 0.00 (3,200) (3,200) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 2
B-37 FY 2025-26 City of Montclair Preliminary Budget Page 208 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 FUND REVENUES 0.00 0 0 0 0
3,195 3,200 3,200 0 FUND EXPENSES 0.00 3,200 3,200 0 0
(3,195) (3,200) (3,200) 0 Gas Tax Fund Totals: 0.00 (3,200) (3,200) 0 0 1144 Forfeiture Fund-Federal/DOJ
4204 Financial Services
E20 Services & Supplies
1,000 1,000 1,000.00 0.00 52220-400-00000Audit Fees 0.00 1,000.00 1,000.00 0.00 0.00 1,000 1,000 1,000 0 Services & Supplies Totals: 0.00 1,000 1,000 0 0 1,000 1,000 1,000 0 EXPENDITURES TOTALS: 0.00 1,000 1,000 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
1,000 1,000 1,000 0 DEPT EXPENSES 0.00 1,000 1,000 0 0
(1,000) (1,000) (1,000) 0 Financial Services Totals: 0.00 (1,000) (1,000) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
1,000 1,000 1,000 0 FUND EXPENSES 0.00 1,000 1,000 0 0
(1,000) (1,000) (1,000) 0 Forfeiture Fund-Federal/DOJ Totals: 0.00 (1,000) (1,000) 0 0 1160 After-School Program Grant
4204 Financial Services
E40 Other Financing Uses
27,089 29,727 47,409.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 60,672.00 60,672.00 0.00 0.00 27,089 29,727 47,409 0 Other Financing Uses Totals: 0.00 60,672 60,672 0 0 27,089 29,727 47,409 0 EXPENDITURES TOTALS: 0.00 60,672 60,672 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 3
B-38 FY 2025-26 City of Montclair Preliminary Budget Page 209 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
27,089 29,727 47,409 0 DEPT EXPENSES 0.00 60,672 60,672 0 0 (27,089) (29,727) (47,409) 0 Financial Services Totals: 0.00 (60,672) (60,672) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
27,089 29,727 47,409 0 FUND EXPENSES 0.00 60,672 60,672 0 0 (27,089) (29,727) (47,409) 0 After-School Program Grant Totals: 0.00 (60,672) (60,672) 0 0 1253 2021 Lease Rev Bond Proceeds
4204 Financial Services
E10 Personnel Services
0 0 27,467.00 0.00 41010-400-00000Regular Earnings 0.00 30,950.00 0.00 0.00 0.00 0 0 600.00 0.00 44190-400-00000Sick Leave Redemption 0.00 676.00 0.00 0.00 0.00 0 0 3,720.00 0.00 45220-400-00000Benefit Plan 0.00 3,840.00 0.00 0.00 0.00 0 0 1,174.00 0.00 45240-400-00000Deferred Compensation 0.00 1,438.00 0.00 0.00 0.00 0 0 5,161.00 0.00 45250-400-00000P.E.R.S. 0.00 5,862.00 0.00 0.00 0.00 0 0 121.00 0.00 45270-400-00000LTD Insurance 0.00 136.00 0.00 0.00 0.00 0 0 203.00 0.00 45290-400-00000Life Insurance 0.00 228.00 0.00 0.00 0.00 0 0 399.00 0.00 45330-400-00000Medicare 0.00 449.00 0.00 0.00 0.00 0 0 38,845 0 Personnel Services Totals: 0.00 43,579 0 0 0 0 0 38,845 0 EXPENDITURES TOTALS: 0.00 43,579 0 0 0
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
0 0 38,845 0 DEPT EXPENSES 0.00 43,579 0 0 0
0 0 (38,845) 0 Financial Services Totals: 0.00 (43,579) 0 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 4
B-39 FY 2025-26 City of Montclair Preliminary Budget Page 210 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 38,845 0 FUND EXPENSES 0.00 43,579 0 0 0
0 0 (38,845) 0 2021 Lease Rev Bond Proceeds Totals: 0.00 (43,579) 0 0 0 1501 Sewer Operating Fund
4204 Financial Services
E10 Personnel Services
0 0 17,480.00 0.00 41010-400-00000Regular Earnings 0.00 20,044.00 21,096.00 0.00 0.00 0 0 385.00 0.00 44190-400-00000Sick Leave Redemption 0.00 442.00 442.00 0.00 0.00 0 0 1,860.00 0.00 45220-400-00000Benefit Plan 0.00 1,920.00 1,920.00 0.00 0.00 0 0 874.00 0.00 45240-400-00000Deferred Compensation 0.00 1,002.00 1,055.00 0.00 0.00 0 0 3,827.00 0.00 45250-400-00000P.E.R.S. 0.00 4,400.00 4,631.00 0.00 0.00 0 0 77.00 0.00 45270-400-00000LTD Insurance 0.00 88.00 93.00 0.00 0.00 0 0 129.00 0.00 45290-400-00000Life Insurance 0.00 148.00 156.00 0.00 0.00 0 0 254.00 0.00 45330-400-00000Medicare 0.00 291.00 306.00 0.00 0.00 0 0 24,886 0 Personnel Services Totals: 0.00 28,335 29,699 0 0 E40 Other Financing Uses
60,119 80,203 94,162.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 72,850.00 72,850.00 0.00 0.00 60,119 80,203 94,162 0 Other Financing Uses Totals: 0.00 72,850 72,850 0 0 60,119 80,203 119,048 0 EXPENDITURES TOTALS: 0.00 101,185 102,549 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
60,119 80,203 119,048 0 DEPT EXPENSES 0.00 101,185 102,549 0 0 (60,119) (80,203) (119,048) 0 Financial Services Totals: 0.00 (101,185) (102,549) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
60,119 80,203 119,048 0 FUND EXPENSES 0.00 101,185 102,549 0 0 (60,119) (80,203) (119,048) 0 Sewer Operating Fund Totals: 0.00 (101,185) (102,549) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 5
B-40 FY 2025-26 City of Montclair Preliminary Budget Page 211 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
721,766 871,420 1,087,310 0 REPORT EXPENSES 0.00 1,177,766 1,129,058 0 0 (721,766) (871,420) (1,087,310) 0 REPORT TOTALS: 0.00 (1,177,766) (1,129,058) 0 0 GL-Budget Analysis (6/11/2025 - 3:35 PM) Page 6
B-41 FY 2025-26 City of Montclair Preliminary Budget Page 212 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
City Manager 4204 Financial Services
Work Program

1. Continue with development of annual investment policies, giving consideration to proper levels of risk, liquidity, and return; invest moneys in accordance with investment policy guidelines.

2. Issue monthly "Treasurer's" and "Warrant Reports" for review by the City Council, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation Board of Directors.

Reports are to disclose degree of compliance with the investment policy and expenditures.

3. Oversee preparation of annual operating budgets and the capital improvement program.

4. Maintain the general ledger and prepare all account analyses and reconciliations necessary for the annual audit.

5. Process biweekly payrolls and warrant registers.

6. Conduct an effective, revenue-based business license program.

7. Work with auditors and consultants as required to maintain accuracy of records and operational effectiveness of programs.

8. Assist the Information Technology Department with maintaining modules of the Springbrook Finance software suite.

9. Review and periodically revise the City Purchasing Manual. Ensure compliance with 2014 adopted version.

10. Serve as City Treasurer and tax agent; provide fiduciary services as required by law; administer all Financerelated services; provide Finance-related support services for the City, Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation.

11. Follow generally accepted accounting standards and principles; provide for implementation of GASB 45 OPEB audit requirements.

12. Coordinate and cooperate with the City's auditor.

13. Provide assistance to the Successor Redevelopment Agency, Successor Housing Authority, and Housing Corporation.

14. Work with and assist the San Bernardino County Oversight Board relating to Successor Redevelopment Agency transactions.

15. Interact with the state Department of Finance on Successor Redevelopment Agency-related matters.

16. Assist the City Manager in addressing CalPERS-related cost increases.

17. Comply with GASB 68 Pension Funding reporting requirements.

Personnel Services – $1,011,266
Salary requests are for: Director of Finance (0.85) – $170,371; Finance Supervisor (1.00) – $109,062; Senior Accountant (2.00) – $173,572; Payroll Analyst (0.90) – $66,290; Accounting Specialist (2.80) – $161,738; Customer Service Representative/Office Specialist (0.80) – $40,205; Admin other departments – <$11,986>.

Cost allocations are as follows: full-time salaries – $709,252; additional pay – $2,700; overtime – $4,000; benefit costs – $295,314.

Services and Supplies – $166,500
Funding requested is for: books and publications – $300; mileage/auto allowance – $8,400; special consulting services – $11,700; audit fees – $69,800; collection agency fees – $500; CalCard reward program – <$10,000>; special contract services – $82,000; miscellaneous expenditures – $3,800.

Capital Outlay
No funding requested.

B-42 FY 2025-26 City of Montclair Preliminary Budget Page 213 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4204 Financial Services Object Number 51020 BOOKS AND PUBLICATIONS – $300 American Payroll Association Basic Guide to Payroll
52190 SPECIAL CONSULTING SERVICES – $11,700
Cost Recovery Systems, Inc. – State Mandate Reimbursement claims recovery, $8,500 Street report submission service (Gas Tax Fund), $3,200 52220 AUDIT FEES – $69,800
Annual audit service fees (City) (General Fund – $48,600; DOJ Fund – $1,000), $49,600 Annual actuarial service fees, $17,000 GASB 68 Reporting Fee, $3,200 52240 COLLECTION AGENCY FEES – $500
Enforcement/collection of delinquent tax and service payments. 52281 CALCARD INCENTIVE PAYMENTS – <$10,000>
CalCard reward program.
52450 SPECIAL CONTRACT SERVICES – $82,000
Merchant Services (credit card processing), $68,000
Armored transport depository services, $14,000
52990 MISCELLANEOUS EXPENDITURES – $3,800
Miscellaneous expenditures.

B-43
FY 2025-26 City of Montclair Preliminary Budget Page 214 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4205
Department Division Program
City Manager Solid Waste Disposal
Program Description
The Solid Waste Program administers the City's automated refuse collection/disposal program; administers residential, commercial, school, and City facilities recycling programs; administers the City's Utility Billing system; tracks diversion of refuse to ensure compliance with State requirements and other relevant legislation; maintains and monitors recycling programs; prepares annual diversion reports for the State Integrated Waste Management Board; administers the senior citizen refuse discount program; negotiates refuse rates and service levels with the City's franchise waste hauler; administers the liens assessment process for uncollected refuse and sewer fees; and administers the City's scavenging program.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 147,329 147,850 133,400
Services and Supplies 3,428,164 3,477,000 3,477,000
Capital Outlay 104,738 0 0
Total 3,680,231 3,624,850 3,610,400
Personnel Authorized 1.40 (FT) 1.40 (FT) 1.40 (FT)

1.00 (PT) 1.00 (PT) 1.00 (PT)
Source of Funds
General Fund 3,402,515 3,416,871 3,413,259
Recycling Grant Fund 105,000 31,000 31,000
Sewer Operating Fund 172,716 176,979 166,141
Total 3,680,231 3,624,850 3,610,400
B-44 FY 2025-26 City of Montclair Preliminary Budget Page 215 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Accounting Specialist 0.20 0.20 0.20 10,620 10,720
Customer Service Rep. 1.20 1.20 1.20 56,721 46,669
Part-Time
Accounting Specialist 1.00 1.00 1.00 45,662 45,662
Full Time 1.40 1.40 1.40 67,341 57,389
Part Time 1.00 1.00 1.00 45,662 45,662
Overtime 100 100
Total Salaries & Wages 113,103 103,151
Benefit Costs 29,387 25,681
PERS Benefit Costs 5,360 4,568
Total Benefit Costs 34,747 30,249
TOTAL 147,850 133,400

DETAIL OF SALARIES AND WAGES
Department: Office of the City Manager Program: 4205 Solid Waste Disposal

POSITION QUOTA APPROPRIATIONS
B-45 FY 2025-26 City of Montclair Preliminary Budget Page 216 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
City Manager 4205 Solid Waste Disposal
Work Program

1. Administer the City's liens assessment process for uncollected refuse and sewer fees.

2. Implement commercial/residential refuse rates as required, and comply with Proposition 218 rate adjustment notification requirements.

3. Administer the automated refuse collection and disposal program for solid waste, green waste, and recyclables.

4. Administer and operate the City's Utility Billing System; coordinate integration of billing services with Springbrook, DataProse, and Burrtec.

5. Administer residential, commercial, school, and City facilities recycling programs.

6. Track diversion of refuse to ensure State compliance with commercial and residential recycling requirements.

7. Administer the residential refuse household-rate discount program for senior households.

8. Administer applicable grant programs.

9. Assist the Director of Finance in supervising relevant programs.

10. Occasionally evaluate transferring the utility billing services from the City to Burrtec—at a cost savings to the City.

11. Occasionally evaluate transferring the utility lien process to Burrtec—at a cost savings to the City.

12. Oversee collection of solid waste-related franchise fee, administrative fee, general sanitation fee, and pavement impact fee.

13. Administer the City's anti-scavenging ordinance.

Personnel Services – $147,850
Salary requests are for: Accounting Specialist (0.20) – $10,620; Customer Service Representatives (1.20) – $56,721; Accounting Specialist (1.00/part-time) – $45,662. Cost allocations are as follows: full-time salaries – $67,341; part-time salaries – $45,662; overtime – $100; benefit costs – $34,747.

Services and Supplies – $3,477,000
Funding requested is for: publication and advertising – $6,000; residential refuse collection – $3,300,000; special contract services – $89,600; bad-debt expenses – $1,000; special billing services – $80,000; miscellaneous expenditures – $400.

Capital Outlay
No funding requested.

B-46 FY 2025-26 City of Montclair Preliminary Budget Page 217 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:36PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4205 Solid Waste Disposal
E10 Personnel Services
29,627 24,900 21,720.00 0.00 41010-400-00000Regular Earnings 0.00 21,502.00 19,014.00 0.00 0.00 10,675 9,903 10,974.00 0.00 42020-400-00000Part Time Wages 0.00 11,415.00 11,415.00 0.00 0.00 0 0 50.00 0.00 43010-400-00000Overtime 0.00 50.00 50.00 0.00 0.00 0 0 63.00 0.00 44190-400-00000Sick Leave Redemption 0.00 0.00 0.00 0.00 0.00 0 0 7,560.00 0.00 45220-400-00000Benefit Plan 0.00 7,830.00 6,960.00 0.00 0.00 2,669 2,346 1,996.00 0.00 45250-400-00000P.E.R.S. 0.00 1,711.00 1,513.00 0.00 0.00 124 102 95.00 0.00 45270-400-00000LTD Insurance 0.00 95.00 84.00 0.00 0.00 117 94 82.00 0.00 45290-400-00000Life Insurance 0.00 82.00 73.00 0.00 0.00 584 506 474.00 0.00 45330-400-00000Medicare 0.00 478.00 442.00 0.00 0.00 662 614 681.00 0.00 45340-400-00000Social Security 0.00 708.00 708.00 0.00 0.00 44,459 38,466 43,695 0 Personnel Services Totals: 0.00 43,871 40,259 0 0 E20 Services & Supplies
3,094,789 3,398,596 3,255,000.00 0.00 52390-400-00000Residential Refuse Collection 0.00 3,300,000.00 3,300,000.00 0.00 0.00 29,926 30,405 31,132.00 0.00 52450-400-00000Special Contract Services 0.00 32,300.00 32,300.00 0.00 0.00 0 0 750.00 0.00 52810-400-00000Bad Debt Expenses 0.00 500.00 500.00 0.00 0.00 36,658 42,106 37,000.00 0.00 52930-400-00000Special Billing Services 0.00 40,000.00 40,000.00 0.00 0.00 0 0 200.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 200.00 200.00 0.00 0.00 3,161,373 3,471,107 3,324,082 0 Services & Supplies Totals: 0.00 3,373,000 3,373,000 0 0 E30 Capital Outlay
0 0 34,738.00 0.00 62020-400-16524Transportation & Work Equipmen 0.00 0.00 0.00 0.00 0.00 0 0 34,738 0 Capital Outlay Totals: 0.00 0 0 0 0
GL-Budget Analysis (6/11/2025 - 3:36 PM) Page 1
B-47 FY 2025-26 City of Montclair Preliminary Budget Page 218 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
3,205,832 3,509,573 3,402,515 0 EXPENDITURES TOTALS: 0.00 3,416,871 3,413,259 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
3,205,832 3,509,573 3,402,515 0 DEPT EXPENSES 0.00 3,416,871 3,413,259 0 0 (3,205,832) (3,509,573) (3,402,515) 0 Solid Waste Disposal Totals: 0.00 (3,416,871) (3,413,259) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
3,205,832 3,509,573 3,402,515 0 FUND EXPENSES 0.00 3,416,871 3,413,259 0 0 (3,205,832) (3,509,573) (3,402,515) 0 General Fund Totals: 0.00 (3,416,871) (3,413,259) 0 0 1152 Recycling Grant Fund
4205 Solid Waste Disposal
E20 Services & Supplies
6,123 5,668 10,000.00 0.00 52090-400-00000Publication & Advertising 0.00 6,000.00 6,000.00 0.00 0.00 0 0 25,000.00 0.00 52450-400-16524Special Contract Services 0.00 25,000.00 25,000.00 0.00 0.00 6,123 5,668 35,000 0 Services & Supplies Totals: 0.00 31,000 31,000 0 0 E30 Capital Outlay
0 0 70,000.00 0.00 62020-400-16524Transportation & Work Equipmen 0.00 0.00 0.00 0.00 0.00 0 0 70,000 0 Capital Outlay Totals: 0.00 0 0 0 0
6,123 5,668 105,000 0 EXPENDITURES TOTALS: 0.00 31,000 31,000 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
6,123 5,668 105,000 0 DEPT EXPENSES 0.00 31,000 31,000 0 0 (6,123) (5,668) (105,000) 0 Solid Waste Disposal Totals: 0.00 (31,000) (31,000) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
6,123 5,668 105,000 0 FUND EXPENSES 0.00 31,000 31,000 0 0 GL-Budget Analysis (6/11/2025 - 3:36 PM) Page 2
B-48 FY 2025-26 City of Montclair Preliminary Budget Page 219 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(6,123) (5,668) (105,000) 0 Recycling Grant Fund Totals: 0.00 (31,000) (31,000) 0 0 1501 Sewer Operating Fund
4205 Solid Waste Disposal
E10 Personnel Services
84,313 67,355 46,426.00 0.00 41010-400-00000Regular Earnings 0.00 45,839.00 38,375.00 0.00 0.00 32,025 29,707 32,924.00 0.00 42020-400-00000Part Time Wages 0.00 34,247.00 34,247.00 0.00 0.00 0 0 50.00 0.00 43010-400-00000Overtime 0.00 50.00 50.00 0.00 0.00 676 216 187.00 0.00 44190-400-00000Sick Leave Redemption 0.00 0.00 0.00 0.00 0.00 0 0 15,960.00 0.00 45220-400-00000Benefit Plan 0.00 16,530.00 13,920.00 0.00 0.00 940 798 0.00 0.00 45240-400-00000Deferred Compensation 0.00 0.00 0.00 0.00 0.00 9,420 8,468 4,513.00 0.00 45250-400-00000P.E.R.S. 0.00 3,649.00 3,055.00 0.00 0.00 336 271 206.00 0.00 45270-400-00000LTD Insurance 0.00 203.00 169.00 0.00 0.00 380 292 176.00 0.00 45290-400-00000Life Insurance 0.00 176.00 148.00 0.00 0.00 1,701 1,414 1,151.00 0.00 45330-400-00000Medicare 0.00 1,162.00 1,054.00 0.00 0.00 1,985 1,842 2,041.00 0.00 45340-400-00000Social Security 0.00 2,123.00 2,123.00 0.00 0.00 131,776 110,363 103,634 0 Personnel Services Totals: 0.00 103,979 93,141 0 0 E20 Services & Supplies
29,579 30,106 31,132.00 0.00 52450-400-00000Special Contract Services 0.00 32,300.00 32,300.00 0.00 0.00 0 0 750.00 0.00 52810-400-00000Bad Debt Expenses 0.00 500.00 500.00 0.00 0.00 36,658 36,046 37,000.00 0.00 52930-400-00000Special Billing Services 0.00 40,000.00 40,000.00 0.00 0.00 0 0 200.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 200.00 200.00 0.00 0.00 66,237 66,151 69,082 0 Services & Supplies Totals: 0.00 73,000 73,000 0 0 198,013 176,515 172,716 0 EXPENDITURES TOTALS: 0.00 176,979 166,141 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
198,013 176,515 172,716 0 DEPT EXPENSES 0.00 176,979 166,141 0 0 (198,013) (176,515) (172,716) 0 Solid Waste Disposal Totals: 0.00 (176,979) (166,141) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
GL-Budget Analysis (6/11/2025 - 3:36 PM) Page 3
B-49 FY 2025-26 City of Montclair Preliminary Budget Page 220 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
198,013 176,515 172,716 0 FUND EXPENSES 0.00 176,979 166,141 0 0 (198,013) (176,515) (172,716) 0 Sewer Operating Fund Totals: 0.00 (176,979) (166,141) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
3,409,968 3,691,755 3,680,231 0 REPORT EXPENSES 0.00 3,624,850 3,610,400 0 0 (3,409,968) (3,691,755) (3,680,231) 0 REPORT TOTALS: 0.00 (3,624,850) (3,610,400) 0 0 GL-Budget Analysis (6/11/2025 - 3:36 PM) Page 4
B-50 FY 2025-26 City of Montclair Preliminary Budget Page 221 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: City Manager Program: 4205 Solid Waste Disposal Object Number 52090 PUBLICATION AND ADVERTISING – $6,000 Advertising of oil collection centers and for education programs for oil/oil filter recycling. (Recycling Grant Fund) 52390 RESIDENTIAL REFUSE COLLECTION – $3,300,000
Contract costs for collection and disposal of residential refuse and for collection and transport of residential recyclables—refuse collection costs fully reimbursed to the General Fund by assessing residential refuse collection fees. 52391 RESIDENTIAL REFUSE COLLECTION REIMBURSEMENT – <$3,300,000> Reimbursement from residents for refuse collection.
52450 SPECIAL CONTRACT SERVICES – $89,600
Hazardous household waste disposal service—service agreement with San Bernardino County, $64,600 (General Fund – $32,300; Sewer Operating Fund – $32,300). Contract with Abound Food Care for edible food recovery services related to SB 1383, $25,000 (SB 1383 Grant) 52810 BAD-DEBT EXPENSES – $1,000
Charge costs of uncollectable utility accounts (General Fund – $500; Sewer Operating Fund – $500). 52930 SPECIAL BILLING SERVICES – $80,000
Utility billing service with DataProse (General Fund – $40,000; Sewer Operating Fund – $40,000). 52990 MISCELLANEOUS EXPENDITURES – $400
Unanticipated expenditures (General Fund – $200; Sewer Operating Fund – $200).

B-51
FY 2025-26 City of Montclair Preliminary Budget Page 222 of 741 Administrative Services
FY 2025-26 City of Montclair Preliminary Budget Page 223 of 741

DEPARTMENT BUDGET SUMMARY
Department
Administrative Services
Overview
The Administrative Services Department consists of four separate programs: (1) Administration provides general management oversight of the Department and assists the City Manager with day-to-day management of the organization; (2) City Clerk/Records Retention provides election services, preparation of City Council agendas/minutes, and document retention/archiving/destruction services; (3) Personnel/Risk Management oversees recruitments, labor relations, claims and risk management administration, employee training and wellness, and benefits administration; (4) Central Services provides for community-related contract services, office equipment maintenance, duplication and mail services, and office supplies.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 679,962 949,493 973,182
Services and Supplies 737,975 919,621 867,538
Capital Outlay 0 0 0
Total 1,417,937 1,869,114 1,840,720

Personnel Authorized 6.13 (FT) 7.43 (FT) 7.43 (FT)

1.00 (PT) 0.00 (PT) 0.00 (PT)
Department Distribution
Administration 52,413 63,252 53,892
City Clerk 451,096 395,681 391,681
Personnel/Risk Management 413,838 700,922 685,888
Central Services 500,590 709,259 709,259
Total 1,417,937 1,869,114 1,840,720

Source of Funds
General Fund 1,244,443 1,695,605 1,667,211
After-School Program – Indirect 58,100 78,842 78,842
Staff Charges
Sewer Operating Fund – Indirect 115,394 94,667 94,667
Staff Charges
Total 1,417,937 1,869,114 1,840,720

C-1 FY 2025-26 City of Montclair Preliminary Budget Page 224 of 741 PAGE 1 OF 1
DEPARTMENT: ADMINISTRATIVE SERVICES DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rat
e Second Rate Salary
Employee Name July 1 Raise Months Rate Months Rate Next Year Full Time:Administration from other Departments/Entitie s
(4200) .05 12.0 25,376 15,226 15,226
(4380) .40 12.0 20,027 96,130 96,130
Human Resources Manager
A 6.0 10,211 6.0 10,701 125,472 125,472
Executive City Clerk
D 03/13/25 8.4 12,268 3.6 12,881 149,423 149,423
Deputy City Clerk
B 12/17/24 5.5 7,016 6.5 7,367 86,474 86,474
Employment & Personnel Coordinator
E 12.0 6,641 79,692 79,692
Benefits Specialist
D 07/02/25 12.0 5,588 67,056 67,056
Administrative Specialist
B 05/18/25 10.6 4,579 1.4 4,808 55,269 55,269
Office Specialist
A 0.9 3,717 11.1 3,903 46,669 46,669
Administration to other Departments/Entitie
s
(SRDA) -2,988 -2,988
Salar
y Requirements: (FT) 718,423 718,423
TOTAL 718,423 718,423
Next Year

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Includes % Increase (if any)
Recommended b
y
Administration
C-2
FY 2025-26 City of Montclair Preliminary Budget Page 225 of 741 Dept City Mgr Dept. City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Admin from other Depts - Starr 0.05 0.05 0.05 15,226 15,226 Admin from other Depts - Richter 0.10 0.40 0.40 88,402 96,130 Human Resources Manager 0.00 1.00 1.00 113,298 125,472
Executive City Clerk 1.00 1.00 1.00 149,423 149,423
Deputy City Clerk 1.00 1.00 1.00 86,474 86,474
Employment & Personnel Coor 1.00 1.00 1.00 79,692 79,692 Benefits Specialist 1.00 1.00 1.00 67,056 67,056
Administrative Specialist 1.00 1.00 1.00 55,269 55,269
Office Specialist 1.00 1.00 1.00 46,669 46,669
Part-Time
Senior Intern 1.00 0.00 0.00 0 0
Full Time 6.15 7.45 7.45 701,509 721,411
Admin other Departments -0.02 -0.02 -0.02 -2,988 -2,988 Total FT Positions/Salaries 6.13 7.43 7.43 698,521 718,423 Part Time 1.00 0.00 0.00 0 0
Overtime 2,000 2,000
Total Salaries & Wages 700,521 720,423
Benefit Costs 168,480 169,274
PERS Benefit Costs 81,539 84,532
Benefit Costs other Depts -1,047 -1,047
Total Benefit Costs 248,972 252,759
TOTAL 949,493 973,182

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Administrative Services Program: Department Summary C-3 FY 2025-26 City of Montclair Preliminary Budget Page 226 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4311
Department Division Program
Administrative Services Administration
Program Description
The City Manager and managerial/supervisorial staff in the Administrative Services Department administer, manage, and supervise a variety of functions including personnel services; legislative analysis support; history reference services; labor negotiations; administrative support services; election and records management; animal control; and city clerk, mail, and duplication services. Extensive support services are provided to the City Council and each City department.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 21,253 21,292 21,292
Services and Supplies 31,160 41,960 32,600
Capital Outlay 0 0 0
Total 52,413 63,252 53,892
Personnel Authorized 0.05 (FT) 0.05 (FT) 0.05 (FT)
Source of Funds
General Fund 45,250 57,429 48,069
After-School Program – Indirect 2,399 2,646 2,646
Staff Charges
Sewer Operating Fund – Indirect 4,764 3,177 3,177
Staff Charges
Total 52,413 63,252 53,892
C-4 FY 2025-26 City of Montclair Preliminary Budget Page 227 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Admin from other Depts - Starr 0.05 0.05 0.05 15,226 15,226 Full Time 0.05 0.05 0.05 15,226 15,226
Total Salaries & Wages 15,226 15,226
Benefit Costs 2,713 2,713
PERS Benefit Costs 3,353 3,353
Total Benefit Costs 6,066 6,066
TOTAL 21,292 21,292

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Administrative Services Program: 4311 Administration C-5 FY 2025-26 City of Montclair Preliminary Budget Page 228 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Administrative Services 4311 Administration
Work Program

1. Oversee management of the Administration, City Clerk/Records Retention, Personnel/Risk Management, and Central Services programs.

2. Develop the annual Business Plan and Reorganization Report.

3. Promote the organization's goals and objectives as established by the City Council.

4. Track legislative proposals and changes relevant to municipal agencies.

5. Oversee development of the City's history-related programs.

6. Pursuant to City Council direction, implement Strategic Planning priorities.

Personnel Services – $21,292
Salary requests are for: City Manager (0.05) – $15,226. Cost allocations are as follows: full-time salaries – $15,226; benefit costs – $6,066.

Services and Supplies – $41,960
Funding requested is for: books and publications – $250; office supplies – direct – $250; dues and memberships – $2,160; travel and meetings – $16,400; mileage/auto allowance – $8,400; educational grants – $5,000; vocational training – $4,000; miscellaneous expenditures – $5,500.

Capital Outlay
No funding requested.

C-6 FY 2025-26 City of Montclair Preliminary Budget Page 229 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:56PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4311 Administration
E10 Personnel Services
22,884 17,473 15,226.00 0.00 41010-400-00000Regular Earnings 0.00 15,226.00 15,226.00 0.00 0.00 149 146 0.00 0.00 44170-400-00000Holiday Pay 0.00 0.00 0.00 0.00 0.00 298 346 351.00 0.00 44190-400-00000Sick Leave Redemption 0.00 351.00 351.00 0.00 0.00 0 0 930.00 0.00 45220-400-00000Benefit Plan 0.00 960.00 960.00 0.00 0.00 2,427 0 1,225.00 0.00 45240-400-00000Deferred Compensation 0.00 1,225.00 1,225.00 0.00 0.00 2,825 3,151 3,344.00 0.00 45250-400-00000P.E.R.S. 0.00 3,353.00 3,353.00 0.00 0.00 54 55 66.00 0.00 45270-400-00000LTD Insurance 0.00 66.00 66.00 0.00 0.00 88 92 111.00 0.00 45290-400-00000Life Insurance 0.00 111.00 111.00 0.00 0.00 105 0 0.00 0.00 45330-400-00000Medicare 0.00 0.00 0.00 0.00 0.00 28,831 21,262 21,253 0 Personnel Services Totals: 0.00 21,292 21,292 0 0 E20 Services & Supplies
0 0 250.00 0.00 51020-400-00000Books and Publications 0.00 250.00 100.00 0.00 0.00 0 0 250.00 0.00 51060-400-00000Office Supplies 0.00 250.00 100.00 0.00 0.00 725 1,075 2,160.00 0.00 52120-400-00000Dues & Memberships 0.00 2,160.00 1,000.00 0.00 0.00 4,385 5,977 10,000.00 0.00 52130-400-00000Travel & Meetings 0.00 16,400.00 13,000.00 0.00 0.00 0 0 0.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 8,400.00 8,400.00 0.00 0.00 0 0 5,000.00 0.00 52530-400-00000Educational Grants 0.00 5,000.00 2,500.00 0.00 0.00 475 0 3,000.00 0.00 52540-400-00000Vocational Training 0.00 4,000.00 2,000.00 0.00 0.00 4,172 3,651 0.00 0.00 52850-400-00000Cellular Phone Expense 0.00 0.00 0.00 0.00 0.00 0 4,630 5,500.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 5,500.00 5,500.00 0.00 0.00 9,757 15,334 26,160 0 Services & Supplies Totals: 0.00 41,960 32,600 0 0 E40 Other Financing Uses
GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 1
C-7 FY 2025-26 City of Montclair Preliminary Budget Page 230 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(6,176) (6,968) -4,764.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -3,177.00 -3,177.00 0.00 0.00 (2,783) (2,583) -2,399.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -2,646.00 -2,646.00 0.00 0.00 (8,959) (9,551) (7,163) 0 Other Financing Uses Totals: 0.00 (5,823) (5,823) 0 0 29,629 27,046 40,250 0 EXPENDITURES TOTALS: 0.00 57,429 48,069 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
29,629 27,046 40,250 0 DEPT EXPENSES 0.00 57,429 48,069 0 0 (29,629) (27,046) (40,250) 0 Administration Totals: 0.00 (57,429) (48,069) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
29,629 27,046 40,250 0 FUND EXPENSES 0.00 57,429 48,069 0 0 (29,629) (27,046) (40,250) 0 General Fund Totals: 0.00 (57,429) (48,069) 0 0 1160 After-School Program Grant
4311 Administration
E40 Other Financing Uses
2,783 2,583 2,399.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 2,646.00 2,646.00 0.00 0.00 2,783 2,583 2,399 0 Other Financing Uses Totals: 0.00 2,646 2,646 0 0 2,783 2,583 2,399 0 EXPENDITURES TOTALS: 0.00 2,646 2,646 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
2,783 2,583 2,399 0 DEPT EXPENSES 0.00 2,646 2,646 0 0
(2,783) (2,583) (2,399) 0 Administration Totals: 0.00 (2,646) (2,646) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
2,783 2,583 2,399 0 FUND EXPENSES 0.00 2,646 2,646 0 0
GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 2
C-8 FY 2025-26 City of Montclair Preliminary Budget Page 231 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(2,783) (2,583) (2,399) 0 After-School Program Grant Totals: 0.00 (2,646) (2,646) 0 0 1501 Sewer Operating Fund
4311 Administration
E40 Other Financing Uses
6,176 6,968 4,764.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 3,177.00 3,177.00 0.00 0.00 6,176 6,968 4,764 0 Other Financing Uses Totals: 0.00 3,177 3,177 0 0 6,176 6,968 4,764 0 EXPENDITURES TOTALS: 0.00 3,177 3,177 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
6,176 6,968 4,764 0 DEPT EXPENSES 0.00 3,177 3,177 0 0
(6,176) (6,968) (4,764) 0 Administration Totals: 0.00 (3,177) (3,177) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
6,176 6,968 4,764 0 FUND EXPENSES 0.00 3,177 3,177 0 0
(6,176) (6,968) (4,764) 0 Sewer Operating Fund Totals: 0.00 (3,177) (3,177) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
38,588 36,597 47,413 0 REPORT EXPENSES 0.00 63,252 53,892 0 0 (38,588) (36,597) (47,413) 0 REPORT TOTALS: 0.00 (63,252) (53,892) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 3
C-9 FY 2025-26 City of Montclair Preliminary Budget Page 232 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: Administrative Services Program: 4311 Administration/All Department ProgramsObject Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense CONFERENCES/SEMINARS CalPELRA Educational Forum
52130 Annual Conference Southern CA TBA $4,800
Assistant City Manager/Director of ($2,400 each x 2 = $4,800) Human Services Human Resources Manager
Liebert Cassidy Whitmore
52130 LCW Public Sector Employment Law San Francisco, CA January 2026 $5,000 Assistant City Manager/Director of Annual Conference
Human Services ($2,500 each x 2 = $5,000)
Human Resources Manager
League of California Cities
52130 City Clerks New Law & Elections Seminar Los Angeles, CA December 2025 $2,600 Executive City Clerk ($1,300 each x 2 = $2,600)
Deputy City Clerk
California Municipal Clerks Association
52130 Annual Conference TBA April 2026 $3,000
Executive City Clerk ($1,500 each x 2 = $3,000)
Deputy City Clerk
Miscellaneous Meetings/Training
52130 CalPERS Updates, COBRA, ADA, TBA / Webinars TBA $1,000 Assistant City Manager/Director of FLSA, CalPELRA, Other Personnel/ Human Services Risk Management Related Workshops Human Resources Manager Employment & Personnel Coordinator Benefits Specialist Total: $16,400
(Only $13,000 approved in City Manager’s Budget)
C-10
FY 2025-26 City of Montclair Preliminary Budget Page 233 of 741 WORKSHEET – JUSTIFICATION OF
CONFERENCE AND IN–SERVICE TRAINING REQUEST
SCHEDULE B – VOCATIONAL TRAINING
Department: Administrative Services Program: 4311 Administration/All Department ProgramsObject Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense 52540 All City Personnel
Special Training/Miscellaneous Training
Educational materials promoting employee safety and compliance with new regulations (e.g., ADA, OSHA, FLSA, HIPAA, FMLA, etc.). Includes related costs for videos, outside consultants and facilitators, workshop materials, and seminar registration fees.

TBA TBA $1,500
52540
Executive City Clerk Employment & Personnel Coordinator DOT Certified Drug Testing Program Training
Training for Human Resources staff provided by Mobile Screening Solutions, Inc.

TBA TBA $1,000
52540
Assistant City Manager/ Director of Human Services Executive City Clerk Deputy City Clerk Employment & Personnel Coordinator Benefits Specialist Customer Service Representative/Office Specialist Miscellaneous Training Vocational training for Administrative Services Department staff.

TBA TBA $1,500
Total: $4,000
(Only $2,000 approved in City Manager’s Budget)
C-11
FY 2025-26 City of Montclair Preliminary Budget Page 234 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4311 Administration Object Number 51020 BOOKS AND PUBLICATIONS – $250 (Only $100 approved in City Manager’s Budget) Miscellaneous Publications and Leadership Titles.
51060 OFFICE SUPPLIES – DIRECT – $250 (Only $100 approved in City Manager’s Budget) All Department Programs/Divisions: Miscellaneous Expenditures. 52120 DUES AND MEMBERSHIPS – $2,160 (Only $1,000 approved in City Manager’s Budget) City Clerk Personnel California Municipal Clerks Association, $250 x 2 = $500 Society for HR Managers, $250 International Institute of Municipal Clerks, $225 x 2 = $450 CalPELRA, $380 x 2 = $760 Provision for increase, $200
52130 TRAVEL AND MEETINGS – $16,400 (Only $13,000 approved in City Manager’s Budget) All Department Programs/Divisions: attendance at conferences and meetings – for detail see "Worksheet – Justification of Conference and In-Service Training Request Schedule A – Travel & Meetings." 52530 EDUCATIONAL GRANTS – $5,000 (Only $2,500 approved in City Manager’s Budget) All Department Programs/Divisions: per MOUs, education grants are provided to employees for education-related expenses (estimate 2 employees @ $2,500 each). 52540 VOCATIONAL TRAINING – $4,000 (Only $2,000 approved in City Manager’s Budget) All Department Programs/Divisions: attendance at vocational training classes – for detail see "Worksheet – Justification of Conference and In-Service Training Request Schedule B – Vocational Training. 52990 MISCELLANEOUS EXPENDITURES – $5,500
Maintenance of historic photos/documents, $500 Miscellaneous upgrades to City Council/Administrative offices lobby, and west and east lobbies of City Hall, $5,000 C-12
FY 2025-26 City of Montclair Preliminary Budget Page 235 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4314
Department Division Program
Administrative Services City Clerk
Program Description
The City Clerk Program coordinates development and distribution of City Council agendas, minutes, and related documents; oversees a document-maintenance/destruction program; oversees a program for electronic storage of documents; ensures that Fair Political Practices Commission filing requirements are met; facilitates local elections; coordinates updates of the Montclair Municipal Code; provides information and support to City Council, City Manager, Department Heads, staff, and the public; coordinates and maintains a records management system including indexing of City Council minutes, ordinances, resolutions, and agreements; administers the Laserfiche Document Imaging system for digital storage and retrieval of documents; responds to requests for research of records; coordinates development of Citywide records retention programs; administers the records archival program; and coordinates placement of City Clerk–related information on the City's Web page.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 379,996 351,081 351,081
Services and Supplies 71,100 44,600 40,600
Capital Outlay 0 0 0
Total 451,096 395,681 391,681
Personnel Authorized 3.38 (FT) 2.48 (FT) 2.48 (FT)

0.50 (PT) 0.00 (PT) 0.00 (PT)

Source of Funds
General Fund 400,753 340,287 336,287
After-School Program – Indirect 16,859 25,171 25,171
Staff Charges
Sewer Operating Fund – Indirect 33,484 30,223 30,223
Staff Charges
Total 451,096 395,681 391,681
C-13 FY 2025-26 City of Montclair Preliminary Budget Page 236 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Executive City Clerk 0.90 1.00 1.00 149,423 149,423
Admin other Depts -0.02 -0.02 -0.02 -2,988 -2,988

0.88 0.98 0.98 146,435 146,435
Deputy City Clerk 1.00 1.00 1.00 86,474 86,474
Administrative Specialist 0.50 0.50 0.50 27,635 27,635
Office Specialist 1.00 0.00 0.00 0 0
Part-Time
Senior Intern 0.50 0.00 0.00 0 0
Full Time 3.40 2.50 2.50 263,532 263,532
Admin other Departments -0.02 -0.02 -0.02 -2,988 -2,988 Total FT Positions/Salaries 3.38 2.48 2.48 260,544 260,544 Part Time 0.50 0.00 0.00 0 0
Overtime 1,000 1,000
Total Salaries & Wages 261,544 261,544
Benefit Costs 61,478 61,478
PERS Benefit Costs 29,106 29,106
Benefit Costs other Depts -1,047 -1,047
Total Benefit Costs 89,537 89,537
TOTAL 351,081 351,081

DETAIL OF SALARIES AND WAGES
Department: Administrative Services Program: 4314 City Clerk

POSITION QUOTA APPROPRIATIONS
C-14 FY 2025-26 City of Montclair Preliminary Budget Page 237 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Administrative Services 4314 City Clerk
Work Program

1. Coordinate development and distribution of City Council agendas, minutes, ordinances, resolutions, agreements, and related documents; post such documents to the City's Web page for public access.

2. Facilitate local elections and coordinate with the San Bernardino County Registrar of Voters; maintain campaign guides for City Council candidates.

3. Coordinate Fair Political Practices Commission filings for elected and appointed officials.

4. Provide information and support to City Council, City Manager, Department Heads, staff, and the public.

5. Coordinate codification of the Montclair Municipal Code; post City Codes to the City's webpage for employee and public access; and encourage employee use of California Codes on the Internet.

6. Maintain standards for development of contracts, reports, and official documents.

7. Serve as Recording Secretary at meetings of the City Council, Successor Redevelopment Agency, Successor Housing Authority, Housing Corporation, Finance Authority, and Community Foundation.

8. Ensure compliance with open-meeting requirements of the Ralph M. Brown Act.

9. Coordinate development of citywide records retention schedules; maintain records management/retrieval/archival systems; and maintain an index of City Council minutes, ordinances, resolutions, and agendas.

10. Coordinate training for, and use of, the Laserfiche Document Imaging system and scan archived and hardcopy documents into electronic storage files.

11. Respond to requests filed under the California Public Records Act/Federal Freedom of Information Act.

Personnel Services – $351,081
Salary requests are for: Executive City Clerk (0.98) – $146,435; Deputy City Clerk (1.00) – $86,474; Administrative Specialist (0.50) – $27,635. Cost allocations are as follows: full-time salaries – $260,544; overtime – $1,000; benefit costs – $89,537.

Services and Supplies – $44,600
Funding requested is for: books and publications – $6,000; election expenses – $5,000; publication and advertising – $7,500; mileage/auto allowance – $100; special contract services – $25,000; miscellaneous expenditures – $1,000.

Capital Outlay
No funding requested.

C-15 FY 2025-26 City of Montclair Preliminary Budget Page 238 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:56PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4314 City Clerk
E10 Personnel Services
170,662 198,172 270,644.00 0.00 41010-400-00000Regular Earnings 0.00 260,544.00 260,544.00 0.00 0.00 9,047 139 8,726.00 0.00 42020-400-00000Part Time Wages 0.00 0.00 0.00 0.00 0.00 74 0 1,000.00 0.00 43010-400-00000Overtime 0.00 1,000.00 1,000.00 0.00 0.00 2,561 2,607 2,608.00 0.00 44190-400-00000Sick Leave Redemption 0.00 3,774.00 3,774.00 0.00 0.00 0 0 57,168.00 0.00 45220-400-00000Benefit Plan 0.00 44,916.00 44,916.00 0.00 0.00 4,462 4,580 4,817.00 0.00 45240-400-00000Deferred Compensation 0.00 5,857.00 5,857.00 0.00 0.00 17,609 20,784 27,899.00 0.00 45250-400-00000P.E.R.S. 0.00 28,706.00 28,706.00 0.00 0.00 754 717 1,194.00 0.00 45270-400-00000LTD Insurance 0.00 1,149.00 1,149.00 0.00 0.00 1,005 989 1,348.00 0.00 45290-400-00000Life Insurance 0.00 1,356.00 1,356.00 0.00 0.00 2,647 2,916 4,051.00 0.00 45330-400-00000Medicare 0.00 3,779.00 3,779.00 0.00 0.00 561 0 541.00 0.00 45340-400-00000Social Security 0.00 0.00 0.00 0.00 0.00 209,382 230,905 379,996 0 Personnel Services Totals: 0.00 351,081 351,081 0 0 E20 Services & Supplies
1,320 2,073 5,000.00 0.00 51020-400-00000Books and Publications 0.00 6,000.00 5,000.00 0.00 0.00 30,987 0 30,000.00 0.00 51070-400-00000Election Expenses 0.00 5,000.00 2,000.00 0.00 0.00 4,608 3,048 5,000.00 0.00 52090-400-00000Publication & Advertising 0.00 7,500.00 7,500.00 0.00 0.00 0 33 100.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 100.00 100.00 0.00 0.00 23,137 36,696 30,000.00 0.00 52450-400-00000Special Contract Services 0.00 25,000.00 25,000.00 0.00 0.00 288 5,966 1,000.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 1,000.00 1,000.00 0.00 0.00 60,339 47,815 71,100 0 Services & Supplies Totals: 0.00 44,600 40,600 0 0 E40 Other Financing Uses
(22,778) (44,600) -33,484.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -30,223.00 -30,223.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 1
C-16 FY 2025-26 City of Montclair Preliminary Budget Page 239 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
(10,264) (16,531) -16,859.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -25,171.00 -25,171.00 0.00 0.00 (33,042) (61,131) (50,343) 0 Other Financing Uses Totals: 0.00 (55,394) (55,394) 0 0 236,680 217,589 400,753 0 EXPENDITURES TOTALS: 0.00 340,287 336,287 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
236,680 217,589 400,753 0 DEPT EXPENSES 0.00 340,287 336,287 0 0 (236,680) (217,589) (400,753) 0 City Clerk Totals: 0.00 (340,287) (336,287) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
236,680 217,589 400,753 0 FUND EXPENSES 0.00 340,287 336,287 0 0 (236,680) (217,589) (400,753) 0 General Fund Totals: 0.00 (340,287) (336,287) 0 0 1160 After-School Program Grant
4314 City Clerk
E40 Other Financing Uses
10,264 16,531 16,859.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 25,171.00 25,171.00 0.00 0.00 10,264 16,531 16,859 0 Other Financing Uses Totals: 0.00 25,171 25,171 0 0 10,264 16,531 16,859 0 EXPENDITURES TOTALS: 0.00 25,171 25,171 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
10,264 16,531 16,859 0 DEPT EXPENSES 0.00 25,171 25,171 0 0 (10,264) (16,531) (16,859) 0 City Clerk Totals: 0.00 (25,171) (25,171) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
10,264 16,531 16,859 0 FUND EXPENSES 0.00 25,171 25,171 0 0 (10,264) (16,531) (16,859) 0 After-School Program Grant Totals: 0.00 (25,171) (25,171) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 2
C-17 FY 2025-26 City of Montclair Preliminary Budget Page 240 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1501 Sewer Operating Fund
4314 City Clerk
E40 Other Financing Uses
22,778 44,600 33,484.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 30,223.00 30,223.00 0.00 0.00 22,778 44,600 33,484 0 Other Financing Uses Totals: 0.00 30,223 30,223 0 0 22,778 44,600 33,484 0 EXPENDITURES TOTALS: 0.00 30,223 30,223 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
22,778 44,600 33,484 0 DEPT EXPENSES 0.00 30,223 30,223 0 0 (22,778) (44,600) (33,484) 0 City Clerk Totals: 0.00 (30,223) (30,223) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
22,778 44,600 33,484 0 FUND EXPENSES 0.00 30,223 30,223 0 0 (22,778) (44,600) (33,484) 0 Sewer Operating Fund Totals: 0.00 (30,223) (30,223) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
269,722 278,720 451,096 0 REPORT EXPENSES 0.00 395,681 391,681 0 0 (269,722) (278,720) (451,096) 0 REPORT TOTALS: 0.00 (395,681) (391,681) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 3
C-18 FY 2025-26 City of Montclair Preliminary Budget Page 241 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4314 City Clerk Object Number 51020 BOOKS AND PUBLICATIONS – $6,000 (Only $5,000 approved in City Manager’s Budget) CivicPlus Municode Subscription for Municipal Code updates, print supplements, and online code hosting, $5,000 Miscellaneous books and periodicals, $1,000
51070 ELECTION EXPENSES – $5,000 (Only $2,000 approved in City Manager’s Budget) Costs related to forms, San Bernardino County Registrar of Voters Services, electoral services, voter outreach and education, ballot and statement preparations for local elections, and other materials related to conducting unscheduled elections. 52090 PUBLICATION AND ADVERTISING – $7,500
Publication of legal notices:

Public Hearings, $1,500 Ordinance Summaries, $5,000 Elections, $1,000 52140 MILEAGE/AUTO ALLOWANCE – $100
Mileage reimbursement for department personnel.
52450 SPECIAL CONTRACT SERVICES – $25,000
Corodata off-site records storage (all departments), $8,000 CivicPlus NextRequest Online Public Records Portal, $12,000 Netfile FPPC Electronic Filing System annual fee, $5,000 52990 MISCELLANEOUS EXPENDITURES – $1,000
Miscellaneous supplies for City archives and records.

C-19
FY 2025-26 City of Montclair Preliminary Budget Page 242 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4315
Department Division Program
Administrative Services Personnel/Risk Management
Program Description
The Personnel Program, in support of the human resource requirements of the City, provides comprehensive personnel selection, retention, training, and labor relations services in compliance with local, state, and federal regulations; defends the City in personnel-related matters including disciplinary actions; and administers benefit programs. The Risk Management program processes legal claims; defends the City in Workers' Compensation cases; identifies potential risks to employee safety; and develops methods of reducing the City's exposure to, and potential liability from, losses.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 232,308 507,169 530,858
Services and Supplies 181,530 193,753 155,030
Capital Outlay 0 0 0
Total 413,838 700,922 685,888
Personnel Authorized 2.20 (FT) 3.90 (FT) 3.90 (FT)
Source of Funds
General Fund 357,346 650,103 635,069
After-School Program – Indirect 18,918 23,092 23,092
Staff Charges
Sewer Operating Fund – Indirect 37,574 27,727 27,727
Staff Charges
Total 413,838 700,922 685,888
C-20 FY 2025-26 City of Montclair Preliminary Budget Page 243 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Admin from other Depts - Richte 0.10 0.40 0.40 88,402 96,130 Human Resources Manager 0.00 1.00 1.00 113,298 125,472
Executive City Clerk 0.10 0.00 0.00 0 0
Employment & Personnel Coor 1.00 1.00 1.00 79,692 79,692 Benefits Specialist 1.00 1.00 1.00 67,056 67,056
Administrative Specialist 0.00 0.50 0.50 27,634 27,634
Full Time 2.20 3.90 3.90 376,082 395,984
Overtime 500 500
Total Salaries & Wages 376,582 396,484
Benefit Costs 85,222 86,016
PERS Benefit Costs 45,365 48,358
Total Benefit Costs 130,587 134,374
TOTAL 507,169 530,858

POSITION QUOTA APPROPRIATIONS

DETAIL OF SALARIES AND WAGES
Department: Administrative Services Program: 4315 Personnel & Risk Management C-21 FY 2025-26 City of Montclair Preliminary Budget Page 244 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Administrative Services 4315 Personnel/Risk Management
Work Program

1. Implement and update personnel/risk management procedures and policies to ensure employee welfare and compliance with applicable laws.

2. Conduct recruitments and promotions utilizing fair employment practices, job-related evaluation criteria, and equal opportunity guidelines.

3. Assist departments in the handling of disciplinary/grievance cases to ensure proper due process and documentation procedures are followed, and to protect both the City's and employees' rights.

4. Protect human, financial, physical, and natural resources against the effects of accidental loss through the prudent application of appropriate and legitimate risk management techniques.

5. Coordinate, monitor, and take appropriate actions in order to expedite the processing of claims (Workers' Compensation, liability, unemployment, etc.) and protect the City's interests.

6. Coordinate and conduct training workshops/programs promoting increased productivity, safety, supervisory skill, morale, and employee development.

7. Assist departments in the handling of harassment and discrimination complaints to ensure proper investigation is undertaken and appropriate and necessary corrective actions are pursued.

8. Coordinate and manage the City's safety program to ensure compliance with state and federal laws and to provide a safe working environment. Facilitate Safety Committee meetings and projects.

9. Coordinate and manage the City's employee benefits program in compliance with applicable state/federal laws.

10. Coordinate and supervise the City's labor negotiation process; meet with labor group representatives to discuss terms related to working conditions; seek to negotiate MOU provisions requiring employees to pay the member contribution component of the CalPERS pension benefit.

11. Administer the City's ergonomic program.

12. Administer the Springbrook Human Resources software module.

13. Provide representation to special boards and groups on matters related to insurance, wages and benefits, and other personnel- and risk management-related issues.

14. Assist with facilitating employee-related cost-reduction measures during periods of fiscal stress.

15. Facilitate implementation of GASB 45 requirements.

16. Conduct audit of real property assets.

17. Ensure compliance with the Public Employee Pension Reform Act of 2013 (PEPRA).

Personnel Services – $507,169
Salary requests are for: Assistant City Manager/Director of Human Services (0.40) – $88,402; Human Resources Manager (1.00) – $113,298; Employment and Personnel Coordinator (1.00) – $79,692; Benefits Specialist (1.00) – $67,056; Administrative Specialist (0.50) – $27,634. Cost allocations are as follows: full-time salaries – $376,082; overtime – $500; benefit costs – $130,587.

Services and Supplies – $193,753
Funding requested is for: books and publications – $630; publication and advertising – $7,000; mileage/auto allowance – $150; labor relations – $250; special consulting services – $24,655; special contract services – $93,568; psychological assistance – $15,000; medical examinations – $30,000; personnel testing – $5,000; fingerprints and credit bureau fees – $5,000; psychological exams – $10,000; ADA expenditures – $1,000; miscellaneous expenditures – $1,500.

Capital Outlay
No funding requested.

C-22 FY 2025-26 City of Montclair Preliminary Budget Page 245 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:56PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4315 Personnel/Risk Management
E10 Personnel Services
202,119 161,208 171,501.00 0.00 41010-400-00000Regular Earnings 0.00 376,082.00 395,984.00 0.00 0.00 18,968 1,586 0.00 0.00 42020-400-00000Part Time Wages 0.00 0.00 0.00 0.00 0.00 0 0 500.00 0.00 43010-400-00000Overtime 0.00 500.00 500.00 0.00 0.00 0 763 763.00 0.00 44190-400-00000Sick Leave Redemption 0.00 2,644.00 2,644.00 0.00 0.00 0 0 37,320.00 0.00 45220-400-00000Benefit Plan 0.00 70,380.00 70,380.00 0.00 0.00 572 1,338 1,559.00 0.00 45240-400-00000Deferred Compensation 0.00 4,420.00 4,807.00 0.00 0.00 17,661 16,102 17,100.00 0.00 45250-400-00000P.E.R.S. 0.00 45,365.00 48,358.00 0.00 0.00 533 644 756.00 0.00 45270-400-00000LTD Insurance 0.00 1,659.00 1,746.00 0.00 0.00 341 531 616.00 0.00 45290-400-00000Life Insurance 0.00 1,948.00 2,092.00 0.00 0.00 3,206 2,118 2,193.00 0.00 45330-400-00000Medicare 0.00 4,171.00 4,347.00 0.00 0.00 243,399 184,291 232,308 0 Personnel Services Totals: 0.00 507,169 530,858 0 0 E20 Services & Supplies
332 565 630.00 0.00 51020-400-00000Books and Publications 0.00 630.00 630.00 0.00 0.00 1,700 4,935 7,000.00 0.00 52090-400-00000Publication & Advertising 0.00 7,000.00 5,000.00 0.00 0.00 0 0 150.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 150.00 150.00 0.00 0.00 0 0 250.00 0.00 52150-400-00000Labor Relations 0.00 250.00 250.00 0.00 0.00 3,879 37,224 25,000.00 0.00 52190-400-00000Special Consulting Services 0.00 24,655.00 5,000.00 0.00 0.00 61,229 65,595 83,000.00 0.00 52450-400-00000Special Contract Services 0.00 93,568.00 88,000.00 0.00 0.00 9,775 12,200 15,000.00 0.00 52490-400-00000Psychological Assistance 0.00 15,000.00 12,000.00 0.00 0.00 28,225 31,163 30,000.00 0.00 52510-400-00000Medical Examinations 0.00 30,000.00 25,000.00 0.00 0.00 2,839 2,681 5,000.00 0.00 52520-400-00000Personnel Testing 0.00 5,000.00 3,000.00 0.00 0.00 7,854 6,731 5,000.00 0.00 52560-400-00000Fingerprints/Credit Bureau 0.00 5,000.00 5,000.00 0.00 0.00 8,450 10,250 8,000.00 0.00 52590-400-00000Psychological Exams 0.00 10,000.00 8,500.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 1
C-23 FY 2025-26 City of Montclair Preliminary Budget Page 246 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1,119 0 1,000.00 0.00 52840-400-00000A.D.A. Expenditures 0.00 1,000.00 1,000.00 0.00 0.00 1,019 1,066 1,500.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 1,500.00 1,500.00 0.00 0.00 126,421 172,410 181,530 0 Services & Supplies Totals: 0.00 193,753 155,030 0 0 E40 Other Financing Uses
(41,367) (47,240) -37,574.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -27,727.00 -27,727.00 0.00 0.00 (18,640) (17,509) -18,918.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -23,092.00 -23,092.00 0.00 0.00 (60,007) (64,749) (56,492) 0 Other Financing Uses Totals: 0.00 (50,819) (50,819) 0 0 309,813 291,952 357,346 0 EXPENDITURES TOTALS: 0.00 650,103 635,069 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
309,813 291,952 357,346 0 DEPT EXPENSES 0.00 650,103 635,069 0 0 (309,813) (291,952) (357,346) 0 Personnel/Risk Management Totals: 0.00 (650,103) (635,069) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
309,813 291,952 357,346 0 FUND EXPENSES 0.00 650,103 635,069 0 0 (309,813) (291,952) (357,346) 0 General Fund Totals: 0.00 (650,103) (635,069) 0 0 1160 After-School Program Grant
4315 Personnel/Risk Management
E40 Other Financing Uses
18,640 17,509 18,918.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 23,092.00 23,092.00 0.00 0.00 18,640 17,509 18,918 0 Other Financing Uses Totals: 0.00 23,092 23,092 0 0 18,640 17,509 18,918 0 EXPENDITURES TOTALS: 0.00 23,092 23,092 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
18,640 17,509 18,918 0 DEPT EXPENSES 0.00 23,092 23,092 0 0 (18,640) (17,509) (18,918) 0 Personnel/Risk Management Totals: 0.00 (23,092) (23,092) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 2
C-24 FY 2025-26 City of Montclair Preliminary Budget Page 247 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 FUND REVENUES 0.00 0 0 0 0
18,640 17,509 18,918 0 FUND EXPENSES 0.00 23,092 23,092 0 0 (18,640) (17,509) (18,918) 0 After-School Program Grant Totals: 0.00 (23,092) (23,092) 0 0 1501 Sewer Operating Fund
4315 Personnel/Risk Management
E40 Other Financing Uses
41,367 47,240 37,574.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 27,727.00 27,727.00 0.00 0.00 41,367 47,240 37,574 0 Other Financing Uses Totals: 0.00 27,727 27,727 0 0 41,367 47,240 37,574 0 EXPENDITURES TOTALS: 0.00 27,727 27,727 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
41,367 47,240 37,574 0 DEPT EXPENSES 0.00 27,727 27,727 0 0 (41,367) (47,240) (37,574) 0 Personnel/Risk Management Totals: 0.00 (27,727) (27,727) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
41,367 47,240 37,574 0 FUND EXPENSES 0.00 27,727 27,727 0 0 (41,367) (47,240) (37,574) 0 Sewer Operating Fund Totals: 0.00 (27,727) (27,727) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
369,820 356,701 413,838 0 REPORT EXPENSES 0.00 700,922 685,888 0 0 (369,820) (356,701) (413,838) 0 REPORT TOTALS: 0.00 (700,922) (685,888) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 3
C-25 FY 2025-26 City of Montclair Preliminary Budget Page 248 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4315 Personnel/Risk ManagementObject Number 51020 BOOKS AND PUBLICATIONS – $630 Top Safety & Top Health, $300
University of California, Berkeley, Wellness Letter, $30 Miscellaneous (e.g., risk management, ADA, safety, hazardous materials, benefits, ergonomics, drugs/alcohol, FLSA, FMLA, HIPAA), $300 52090 PUBLICATION AND ADVERTISING – $7,000 (Only $5,000 approved in City Manager’s Budget) Personnel recruitment advertisements, $5,000 Annual subscription for posting recruitments to GovernmentJobs.com, $2,000 52140 MILEAGE/AUTO ALLOWANCE – $150
Mileage reimbursement for department personnel.
52150 LABOR RELATIONS – $250 Expenditures related to labor negotiations and disciplinary/grievances. 52190 SPECIAL CONSULTING SERVICES – $24,655 (Only $5,000 approved in City Manager’s Budget) Human Resources Consultant, $20,000 (Not approved in City Manager’s Budget)LCW East Inland Empire Employment Relations Consortium, $3,355 Hearing officers for grievance/disciplinary hearings, $1,000 Miscellaneous (i.e., Workers' Compensation/accident reporting procedures studies, and performance appraisal/personnel studies), $300 52450 SPECIAL CONTRACT SERVICES – $93,568 (Only $88,000 approved in City Manager’s Budget) Annual retainer fee for George Hills (City's third-party administrator for liability claims), $12,000 Annual retainer fee for AdminSure (City's third-party administrator for Workers' Compensation claims), $54,168 NEOGOV Insight, $8,800 NEOGOV Onboard, $7,600 NEOGOV Forms, $9,000 Transcription services, $2,000 C-26
FY 2025-26 City of Montclair Preliminary Budget Page 249 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4315 Personnel/Risk ManagementObject Number 52490 PSYCHOLOGICAL ASSISTANCE – $15,000 (Only $12,000 approved in City Manager’s Budget) Employee Assistance Services (EAP) provided by "The Counseling Team" and other professionals. 52510 MEDICAL EXAMINATIONS – $30,000 (Only $25,000 approved in City Manager’s Budget) Physical examinations for prospective employees, drug/alcohol tests, employee annual/biannual physicals, and driver's license physicals.
52520 PERSONNEL TESTING – $5,000 (Only $3,000 approved in City Manager’s Budget) Preemployment expenditures for written/aptitude/oral/and physical agility exams (e.g., purchase/rental of testing materials provided by Police Officers Standards and Testing, California State Personnel Board, Public Administration Services, and International Personnel Management Association); and oral board/proctor services. 52560 FINGERPRINTS AND CREDIT BUREAU FEES – $5,000
Fingerprint and background checks related to employment recruitments in compliance with state/federal requirements. 52590 PSYCHOLOGICAL EXAMS – $10,000 (Only $8,500 approved in City Manager’s Budget) Psychological exams for new employee applicants.
52840 ADA EXPENDITURES – $1,000
ADA compliance expenditures for workstation modifications required to accommodate ergonomic issues and employees with disabilities.
52990 MISCELLANEOUS EXPENDITURES – $1,500
Miscellaneous expenditures for unanticipated Personnel Division-related needs.

C-27
FY 2025-26 City of Montclair Preliminary Budget Page 250 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4317
Department Division Program
Administrative Services Central Services
Program Description
The Central Services Program provides a variety of general support services for City departments/personnel and the Montclair community including the following: communication services, audio/visual aids, document duplication, facsimile transmission/receipt, mail processing, office supplies, animal control services, cable franchise administration, and other support/contract services.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 46,405 69,951 69,951
Services and Supplies 454,185 639,308 639,308
Capital Outlay 0 0 0
Total 500,590 709,259 709,259
Personnel Authorized 0.50 (FT) 1.00 (FT) 1.00 (FT)

0.50 (PT) 0.00 (PT) 0.00 (PT)
Source of Funds
General Fund 441,094 647,786 647,786
After-School Program – Indirect 19,924 27,933 27,933
Staff Charges
Sewer Operating Fund – Indirect 39,572 33,540 33,540
Staff Charges
Total 500,590 709,259 709,259
C-28 FY 2025-26 City of Montclair Preliminary Budget Page 251 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Office Specialist 0.00 1.00 1.00 46,669 46,669
Administrative Specialist 0.50 0.00 0.00 0 0
Part-Time
Senior Intern 0.50 0.00 0.00 0 0
Full Time 0.50 1.00 1.00 46,669 46,669
Part Time 0.50 0.00 0.00 0 0
Overtime 500 500
Total Salaries & Wages 47,169 47,169
Benefit Costs 19,067 19,067
PERS Benefit Costs 3,715 3,715
Total Benefit Costs 22,782 22,782
TOTAL 69,951 69,951

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Administrative Services Program: 4317 Central Services C-29 FY 2025-26 City of Montclair Preliminary Budget Page 252 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Administrative Services 4317 Central Services
Work Program

1. Evaluate P.C.–based central stores inventory systems for maintenance, ordering, distribution, and tracking of supplies.

2. Administer the City's franchise agreement with Charter Communications, Frontier Communications, and other high-speed cable-related services vis-à-vis state law that extends administrative authority over cable franchise agreements to the state Public Utility Commission.

3. Seek to re-engage with First United Methodist Church and negotiate successor parking lot rental terms; or negotiate terms for purchasing church buildings and land.

4. Manage the City's office equipment maintenance/replacement program. Provide oversight and maintenance support for office equipment.

5. Administer the animal control services agreement with IVHS; evaluate requirements for rate adjustments and additional licensing programs.

6. Manage PEG access services and associated programming requirements.

7. As required, conduct citizen surveys on designated issues.

8. Provide direction and oversight for development, publication, and distribution of newsletters as required by the City Council.

9. Evaluate new vendors and service programs for office equipment.

Personnel Services – $69,951
Salary requests are for: Office Specialist (1.00) – $46,669. Cost allocations are as follows: full-time salaries – $47,169; overtime – $500; benefit costs – $22,782.

Services and Supplies – $639,308
Funding requested is for: books and publications – $185; office supplies – indirect – $85,000; publication and advertising – $30,500; animal control services – $593,123; animal control services reimbursement – <$100,000>; special contract services – $3,500; rent – land/buildings – $12,000; miscellaneous expenditures – $15,000.

Capital Outlay
No funding requested.

C-30 FY 2025-26 City of Montclair Preliminary Budget Page 253 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 3:56PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4317 Central Services
E10 Personnel Services
34,369 0 25,530.00 0.00 41010-400-00000Regular Earnings 0.00 46,669.00 46,669.00 0.00 0.00 9,047 0 8,725.00 0.00 42020-400-00000Part Time Wages 0.00 0.00 0.00 0.00 0.00 74 0 500.00 0.00 43010-400-00000Overtime 0.00 500.00 500.00 0.00 0.00 0 0 8,400.00 0.00 45220-400-00000Benefit Plan 0.00 18,000.00 18,000.00 0.00 0.00 71 0 0.00 0.00 45240-400-00000Deferred Compensation 0.00 0.00 0.00 0.00 0.00 2,852 0 2,009.00 0.00 45250-400-00000P.E.R.S. 0.00 3,715.00 3,715.00 0.00 0.00 114 0 112.00 0.00 45270-400-00000LTD Insurance 0.00 206.00 206.00 0.00 0.00 92 0 92.00 0.00 45290-400-00000Life Insurance 0.00 184.00 184.00 0.00 0.00 631 0 496.00 0.00 45330-400-00000Medicare 0.00 677.00 677.00 0.00 0.00 561 0 541.00 0.00 45340-400-00000Social Security 0.00 0.00 0.00 0.00 0.00 47,811 0 46,405 0 Personnel Services Totals: 0.00 69,951 69,951 0 0 E20 Services & Supplies
0 0 185.00 0.00 51020-400-00000Books and Publications 0.00 185.00 185.00 0.00 0.00 97,214 110,251 85,000.00 0.00 51050-400-00000Office Supplies-Indirect 0.00 85,000.00 85,000.00 0.00 0.00 2,132 2,095 0.00 0.00 51150-400-00000License/Permits/Certificates 0.00 0.00 0.00 0.00 0.00 25,440 30,048 0.00 0.00 52010-400-00000Maintenance - Office Equipment 0.00 0.00 0.00 0.00 0.00 0 29,950 30,500.00 0.00 52090-400-00000Publication & Advertising 0.00 30,500.00 30,500.00 0.00 0.00 286,800 263,634 428,000.00 0.00 52430-400-00000Animal Control Services 0.00 593,123.00 593,123.00 0.00 0.00 0 0 -120,000.00 0.00 52431-400-00000Animal Control Services Reimb 0.00 -100,000.00 -100,000.00 0.00 0.00 2,897 3,429 3,500.00 0.00 52450-400-00000Special Contract Services 0.00 3,500.00 3,500.00 0.00 0.00 11,000 11,000 12,000.00 0.00 52630-400-00000Rent - Land or Buildings 0.00 12,000.00 12,000.00 0.00 0.00 17,965 17,169 15,000.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 15,000.00 15,000.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 1
C-31 FY 2025-26 City of Montclair Preliminary Budget Page 254 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
443,447 467,576 454,185 0 Services & Supplies Totals: 0.00 639,308 639,308 0 0 E40 Other Financing Uses
(38,966) (43,277) -39,572.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 -33,540.00 -33,540.00 0.00 0.00 (17,558) (16,041) -19,924.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 -27,933.00 -27,933.00 0.00 0.00 (56,524) (59,318) (59,496) 0 Other Financing Uses Totals: 0.00 (61,473) (61,473) 0 0 434,735 408,258 441,094 0 EXPENDITURES TOTALS: 0.00 647,786 647,786 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
434,735 408,258 441,094 0 DEPT EXPENSES 0.00 647,786 647,786 0 0 (434,735) (408,258) (441,094) 0 Central Services Totals: 0.00 (647,786) (647,786) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
434,735 408,258 441,094 0 FUND EXPENSES 0.00 647,786 647,786 0 0 (434,735) (408,258) (441,094) 0 General Fund Totals: 0.00 (647,786) (647,786) 0 0 1160 After-School Program Grant
4317 Central Services
E40 Other Financing Uses
17,558 16,041 19,924.00 0.00 82030-400-00000Indirect Staff Charges - ASP 0.00 27,933.00 27,933.00 0.00 0.00 17,558 16,041 19,924 0 Other Financing Uses Totals: 0.00 27,933 27,933 0 0 17,558 16,041 19,924 0 EXPENDITURES TOTALS: 0.00 27,933 27,933 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
17,558 16,041 19,924 0 DEPT EXPENSES 0.00 27,933 27,933 0 0 (17,558) (16,041) (19,924) 0 Central Services Totals: 0.00 (27,933) (27,933) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 2
C-32 FY 2025-26 City of Montclair Preliminary Budget Page 255 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
17,558 16,041 19,924 0 FUND EXPENSES 0.00 27,933 27,933 0 0 (17,558) (16,041) (19,924) 0 After-School Program Grant Totals: 0.00 (27,933) (27,933) 0 0 1501 Sewer Operating Fund
4317 Central Services
E40 Other Financing Uses
38,966 43,277 39,572.00 0.00 82010-400-00000Indirect Staff Charges - Sewer 0.00 33,540.00 33,540.00 0.00 0.00 38,966 43,277 39,572 0 Other Financing Uses Totals: 0.00 33,540 33,540 0 0 38,966 43,277 39,572 0 EXPENDITURES TOTALS: 0.00 33,540 33,540 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
38,966 43,277 39,572 0 DEPT EXPENSES 0.00 33,540 33,540 0 0 (38,966) (43,277) (39,572) 0 Central Services Totals: 0.00 (33,540) (33,540) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
38,966 43,277 39,572 0 FUND EXPENSES 0.00 33,540 33,540 0 0 (38,966) (43,277) (39,572) 0 Sewer Operating Fund Totals: 0.00 (33,540) (33,540) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
491,259 467,576 500,590 0 REPORT EXPENSES 0.00 709,259 709,259 0 0 (491,259) (467,576) (500,590) 0 REPORT TOTALS: 0.00 (709,259) (709,259) 0 0 GL-Budget Analysis (6/11/2025 - 3:56 PM) Page 3
C-33 FY 2025-26 City of Montclair Preliminary Budget Page 256 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4317 Central Services Object Number 51020 BOOKS AND PUBLICATIONS – $185 Electronic Internet Publications (Various)
51050 OFFICE SUPPLIES – INDIRECT – $85,000
Expenditures for office supplies, printing services, stationery, and other related services provided to all City departments through the Central Services Program.
52090 PUBLICATION AND ADVERTISING – $30,500
Specialized printing needs, die cuts, layouts, and design development, $2,500 Civic Publications Community Newsletter, $28,000 52430 ANIMAL CONTROL SERVICES – $593,123
Contract payments to the Animal Resources Center for animal control services. 52431 ANIMAL CONTROL SERVICES REIMBURSEMENT – <$100,000> Revenue received by Animal Resources Center for fees charged to Montclair residents that will offset contract payments. 52450 SPECIAL CONTRACT SERVICES – $3,500
Shred Pros Document destruction services (City Hall & Police Department), $2,000 Mijac alarm (Hurst property, Resource Center, and Kids' Station), $1,500 52630 RENT – LAND/BUILDINGS – $12,000
Annual rent payment for United Methodist Church parking lot ($1,000 per month).

C-34
FY 2025-26 City of Montclair Preliminary Budget Page 257 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Administrative Services Program: 4317 Central Services Object Number 52990 MISCELLANEOUS EXPENDITURES – $15,000 Parking permit decals, $500 U.S. and California State flags, $1,500 Promotional merchandise, $1,000 City Hall household miscellaneous, $12,000 C-35
FY 2025-26 City of Montclair Preliminary Budget Page 258 of 741 Human Services
FY 2025-26 City of Montclair Preliminary Budget Page 259 of 741

DEPARTMENT BUDGET SUMMARY
Department
Human Services
Overview
Provide the following services and opportunities for Montclair residents: (1) recreational programs for all ages to meet social, physical, leisure, and educational needs through youth and adult sports leagues; (2) community education and leisure classes; (3) physical education activities and programs; (4) special event programming; (5) after-school program that provides academic assistance, enrichment programs, and physical education activities at 7 Montclair sites; (6) various programs at the City's Youth Center; (7) osteopathic manipulative medicine and case management services; (8) develop, implement, and coordinate educational, social, and recreational programs to meet the diverse and changing needs of the senior citizen population at the City's Senior Center and other community sites; (9) advocate for the needs of seniors and offer well-balanced nutritional meal service five days a week for seniors; (10) promote a health education program to encourage health and wellbeing through the training and sharing of information; (11) and offer Healthy Montclair programs and activities for the community.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 4,360,799 4,298,951 4,103,780
Services and Supplies 1,314,147 1,058,600 1,011,500
Capital Outlay 0 83,533 15,000
Total 5,674,946 5,441,084 5,130,280
Personnel Authorized 14.90 (FT) 15.60 (FT) 15.60 (FT)
221.00 (PT) 174.00 (PT) 174.00 (PT)
Department Distribution
Recreation 2,353,535 2,180,517 1,869,035
Clinic 87,759 88,192 86,392
Senior Citizens 235,509 265,368 265,368
Nutritional Meals 247,603 328,981 328,981
Family and Health Education 78,873 74,026 74,026
After-School Program 2,671,667 2,504,000 2,506,478
Total 5,674,946 5,441,084 5,130,280
Source of Funds
General Fund 2,710,479 2,572,403 2,259,121
Community Dev Block Grant Fund 9,997 9,500 9,500
DAAS Grant/Donations 239,803 326,181 326,181
After-School Program Grant Fund 2,685,067 2,517,400 2,519,878 Senior Support Services Grant 15,600 15,600 15,600
Healthy Comm. Strategic Plan 14,000 0 0
Total 5,674,946 5,441,084 5,130,280
D-1 FY 2025-26 City of Montclair Preliminary Budget Page 260 of 741 PAGE 1 OF 4
DEPARTMENT: HUMAN SERVICES DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rate Second Rate SalaryEmployee Name July 1 Raise Months Rate Months Rate Next Year Next Year Full Time:Assistant City Manager/Human Services Director D 12.0 20,027 240,324 240,324
Assistant Director of Human Services & Grants Manager
D 01/19/25 6.6 12,268 5.4 12,881 150,526 150,526
Recreation Manager
D 01/18/25 6.6 7,958 5.4 8,356 97,645 97,645
Community Services Supervisor
C 01/05/25 6.2 6,469 5.8 6,792 79,501 79,501
Montclair After-School Program Supervisor
D 11/23/24 4.8 6,792 7.2 7,132 83,952 83,952
Montclair After-School Program Coordinator
E 12.0 5,812 69,744 69,744
E 12.0 5,812 69,744 69,744
A 6.0 4,781 6.0 5,020 58,806 58,806
Senior Citizens Supervisor
B 09/04/24 2.1 6,160 9.9 6,468 76,969 76,969
Health Education Specialist
E 12.0 4,554 54,648 54,648
Administrative Specialist
A 10/07/24 3.8 4,361 8.2 4,579 54,120 54,120
Recommended by Administration

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Includes % Increase (if any)
D-2
FY 2025-26 City of Montclair Preliminary Budget Page 261 of 741 PAGE 2 OF 4
DEPARTMENT: HUMAN SERVICES DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rate Second Rate SalaryEmployee Name July 1 Raise Months Rate Months Rate Next Year Next Year Recommended by Administration

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Includes % Increase (if any)
Administrative Analyst
D 01/18/25 6.6 6,905 5.4 7,250 84,723 84,723
Recreation Coordinator
C 09/05/24 2.2 4,502 9.8 4,727 56,229 56,229
A 10/08/24 3.3 4,084 8.7 4,288 50,783 50,783
D 11/09/24 4.3 4,727 7.7 4,963 58,541 58,541
B 11/06/24 4.2 4,288 7.8 4,502 53,125 53,125
Administration to other Departments/Entities
(4315) -96,130 -96,130
Part Time:Nutrition Site Manager

20.22 hr. 30,492 30,492
Kitchen Assistant

19.73 hr. 20,519 20,51919.73 hr. 29,753 29,753
Customer Service Rep/Office Specialist

21.44 hr. 32,332 32,33221.44 hr. 32,332 32,33221.44 hr. 32,332 32,33221.44 hr. 32,332 32,33221.44 hr. 32,332 32,33221.44 hr. 32,332 32,332 D-3
FY 2025-26 City of Montclair Preliminary Budget Page 262 of 741 PAGE 3 OF 4
DEPARTMENT: HUMAN SERVICES DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rate Second Rate SalaryEmployee Name July 1 Raise Months Rate Months Rate Next Year Next Year Recommended by Administration

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Includes % Increase (if any)
Recreation Specialist

16.65 hr. 25,108 25,10816.65 hr. 25,108 25,108
Junior Intern

0.00 hr.
0 0
Summer/Winter Personnel 231,768 231,768
Learning Leader/Substitute Learning Leader 1,011,366 1,011,366 Transportation Coordinator

21.91 hr. 39,876 39,876
10,000 10,000
Health Education Intern

17.41 hr. 18,106 18,106
Senior Learning Leader

23.69 hr. 35,725 35,725

23.69 hr. 35,725 35,725

23.69 hr. 35,725 35,725

23.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,725

23.69 hr. 35,725 35,725
D-4
FY 2025-26 City of Montclair Preliminary Budget Page 263 of 741 PAGE 4 OF 4
DEPARTMENT: HUMAN SERVICES DEPARTMENT SUMMARY
Salary Date Salary Calculations Total
Class Title/ Range Last Step First Rate Second Rate SalaryEmployee Name July 1 Raise Months Rate Months Rate Next Year Next Year Recommended by Administration

CITY OF MONTCLAIR - WORKSHEET

PERSONNEL DETAIL & SALARY CALCULATIONS
Includes % Increase (if any)
Senior Learning Leader - continued

23.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,725

23.69 hr. 35,725 35,72523.69 hr. 35,725 35,72523.69 hr. 35,725 35,725 (FT) 1,243,250 1,243,250
Salary Requirements: (PT) 2,171,963 2,171,963
TOTAL 3,415,213 3,415,213
D-5
FY 2025-26 City of Montclair Preliminary Budget Page 264 of 741 Department: Human Services
Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Asst CM/Human Services Directo 1.00 1.00 1.00 221,004 240,324 -0.10 -0.40 -0.40 -88,402 -96,130

0.90 0.60 0.60 132,602 144,194
Asst. Director of Human Svcs 1.00 1.00 1.00 150,526 150,526 Recreation Manager 1.00 1.00 1.00 97,645 97,645
Community Services Supervisor 1.00 1.00 1.00 79,501 79,501 MAP Supervisor 1.00 1.00 1.00 83,952 83,952
MAP Coordinator 3.00 3.00 3.00 198,294 198,294
Senior Citizens Supervisor 1.00 1.00 1.00 76,969 76,969 Health Education Specialist 1.00 1.00 1.00 54,648 54,648 Administrative Analyst 1.00 1.00 1.00 84,723 84,723
Administrative Specialist 1.00 1.00 1.00 54,120 54,120
Recreation Coordinator 4.00 4.00 4.00 218,678 218,678
Part-Time
Customer Svc Rep/Office Spec 6.00 6.00 6.00 193,992 193,992 Summer/Winter Personnel 43.00 43.00 43.00 402,854 231,768 Recreation Specialist 2.00 2.00 2.00 50,216 50,216
Health Education Intern 1.00 1.00 1.00 18,106 18,106
Nutrition Site Manager 1.00 1.00 1.00 30,492 30,492
Kitchen Assistant 2.00 2.00 2.00 50,272 50,272
Senior Learning Leader 16.00 16.00 16.00 571,600 571,600 Learning Leader 100.00 100.00 100.00 1,011,366 1,011,366 Junior Intern 1.00 1.00 1.00 24,024 0
Transportation Coordinator 2.00 2.00 2.00 49,876 49,876 Full Time 16.00 16.00 16.00 1,320,060 1,339,380
Admin other Departments -0.10 -0.40 -0.40 -88,402 -96,130 Total FT Positions/Salaries 15.90 15.60 15.60 1,231,658 1,243,250 Part Time 174.00 174.00 174.00 2,402,798 2,207,688
Total Salaries & Wages 3,634,456 3,450,938
Benefit Costs 537,812 524,083
PERS Benefit Costs 161,339 165,596
Benefit Costs other Depts -34,656 -36,837
Total Benefit Costs 699,151 699,151
TOTAL 4,298,951 4,103,780

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Program: Department Summary
D-6 FY 2025-26 City of Montclair Preliminary Budget Page 265 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4381
Department Division Program
Human Services Recreation
Program Description
Provide recreational programs for all ages to meet social, physical, leisure, and educational needs through youth and adult sports leagues, community education and leisure classes, physical education activities and programs, and special event programming.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 1,585,835 1,658,884 1,461,235
Services and Supplies 767,700 453,100 407,800
Capital Outlay 0 68,533 0
Total 2,353,535 2,180,517 1,869,035
Personnel Authorized 8.20 (FT) 7.90 (FT) 7.90 (FT)

52.00 (PT) 52.00 (PT) 52.00 (PT)
Source of Funds
General Fund 2,338,935 2,165,917 1,854,435
DAAS Grant/Donations 1,200 1,200 1,200
After-School Program Grant Fund 13,400 13,400 13,400
Total 2,353,535 2,180,517 1,869,035
D-7 FY 2025-26 City of Montclair Preliminary Budget Page 266 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Asst. CM/Human Services Direct 0.90 0.90 0.90 198,904 216,292 Admin other Depts -0.10 -0.40 -0.40 -88,402 -96,130

0.80 0.50 0.50 110,502 120,162
Asst. Director of Human Services 0.95 0.95 0.95 143,000 143,000 Recreation Manager 0.75 0.75 0.75 73,234 73,234
Community Services Supervisor 1.00 1.00 1.00 79,501 79,501 Administrative Analyst 0.70 0.70 0.70 59,306 59,306
Administrative Specialist 1.00 1.00 1.00 54,120 54,120
Recreation Coordinator 3.00 3.00 3.00 165,553 165,553
Part-Time
Customer Svc Rep/Office Specia 6.00 6.00 6.00 193,992 193,992 Recreation Specialist 2.00 2.00 2.00 50,216 50,216
Summer/Winter Personnel 43.00 43.00 43.00 402,854 231,768 Junior Intern 1.00 1.00 1.00 24,024 0
Full Time 8.30 8.30 8.30 773,618 791,006
Admin other Departments -0.10 -0.40 -0.40 -88,402 -96,130 Total FT Positions/Salaries 8.20 7.90 7.90 685,216 694,876 Part Time 52.00 52.00 52.00 671,086 475,976
Total Salaries & Wages 1,356,302 1,170,852
Benefit Costs 247,671 233,822
PERS Benefit Costs 89,567 93,398
Benefit Costs other Depts -34,656 -36,837
Total Benefit Costs 302,582 290,383
TOTAL 1,658,884 1,461,235

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Human Services Program: 4381 Recreation
D-8 FY 2025-26 City of Montclair Preliminary Budget Page 267 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Human Services 4381 Recreation
Work Program
Offers community special events, sports leagues, enrichment and leisure classes for youth through senior citizens, and programs focused on physical activity, youth and teens, and summer activities for the community.

Units of Measure
Recreational programs provide activities, programs and services for approximately 300,000 participants annually.

Personnel Services – $1,658,884
Salary requests are for: Assistant City Manager/Director of Human Services & Human Resources (0.50) – $110,502; Assistant Director of Human Services & Grants Manager (0.95) – $143,000; Recreation Manager (0.75) – $73,234; Community Services Supervisor (1.00) – $79,501; Administrative Analyst (0.70) – $59,306; Administrative Specialist (1.00) – $54,120; Recreation Coordinator (3.00) – $165,553; Customer Service Representative/Office Specialist (6.00/part-time) – $193,992; Recreation Specialist (2.00) – $50,216; Summer/Winter Personnel (43.00/part-time) – $402,854; Junior Intern (1.00/part-time) – $24,024. Cost allocations are as follows: full-time salaries – $685,216 part-time salaries – $671,086; benefit costs – $302,582.

Services and Supplies – $453,100
Funding requested is for: program supplies – $97,200; maintenance – other equipment – $9,100; publication and advertising – $32,500; community benefits – $45,000; dues and memberships – $4,000; travel and meetings – $12,600; mileage/auto allowance – $8,400;Community Activities Commission – $17,000; performing art services – $14,000; special contract services – $94,000; vocational training – $10,600; small equipment – $18,000; reimbursed program costs – $82,700; CAC stipends – $3,500; miscellaneous expenditures – $4,500.

Capital Outlay – $68,533
Funding requested is for: one 2024 Ford Transit 350 XL.

D-9 FY 2025-26 City of Montclair Preliminary Budget Page 268 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 4:47PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4381 Recreation
E10 Personnel Services
500,820 605,057 694,995.00 0.00 41010-400-00000Regular Earnings 0.00 685,216.00 694,876.00 0.00 0.00 306,940 416,768 593,168.00 0.00 42020-400-00000Part Time Wages 0.00 671,086.00 475,976.00 0.00 0.00 394 2,213 0.00 0.00 43010-400-00000Overtime 0.00 0.00 0.00 0.00 0.00 538 1,031 0.00 0.00 44170-400-00000Holiday Pay 0.00 0.00 0.00 0.00 0.00 7,930 8,608 8,983.00 0.00 44190-400-00000Sick Leave Redemption 0.00 9,352.00 9,352.00 0.00 0.00 0 0 137,460.00 0.00 45220-400-00000Benefit Plan 0.00 143,820.00 143,820.00 0.00 0.00 8,173 7,700 14,031.00 0.00 45240-400-00000Deferred Compensation 0.00 13,442.00 13,925.00 0.00 0.00 57,514 72,576 77,525.00 0.00 45250-400-00000P.E.R.S. 0.00 70,092.00 72,220.00 0.00 0.00 2,078 2,416 2,863.00 0.00 45270-400-00000LTD Insurance 0.00 2,745.00 2,787.00 0.00 0.00 2,818 2,949 3,701.00 0.00 45290-400-00000Life Insurance 0.00 3,456.00 3,528.00 0.00 0.00 9,075 12,709 16,332.00 0.00 45330-400-00000Medicare 0.00 18,065.00 15,237.00 0.00 0.00 18,055 24,042 36,777.00 0.00 45340-400-00000Social Security 0.00 41,610.00 29,514.00 0.00 0.00 914,334 1,156,069 1,585,835 0 Personnel Services Totals: 0.00 1,658,884 1,461,235 0 0 E20 Services & Supplies
55,417 84,615 90,900.00 0.00 51130-400-00000Program Supplies 0.00 97,200.00 90,000.00 0.00 0.00 1,056 1,981 4,000.00 0.00 52050-400-00000Maintenance - Other Equipment 0.00 9,100.00 5,000.00 0.00 0.00 8,198 23,744 35,500.00 0.00 52090-400-00000Publication & Advertising 0.00 32,500.00 25,000.00 0.00 0.00 45,000 45,000 45,000.00 0.00 52110-400-00000Community Benefits 0.00 45,000.00 45,000.00 0.00 0.00 2,240 2,860 3,500.00 0.00 52120-400-00000Dues & Memberships 0.00 4,000.00 3,500.00 0.00 0.00 1,174 5,870 15,000.00 0.00 52130-400-00000Travel & Meetings 0.00 9,000.00 7,000.00 0.00 0.00 8,150 7,700 8,400.00 0.00 52140-400-00000Mileage/Auto Allowance 0.00 8,400.00 8,400.00 0.00 0.00 8,534 9,847 15,000.00 0.00 52170-400-00000Community Activities Commision 0.00 17,000.00 15,000.00 0.00 0.00 10,095 12,000 14,000.00 0.00 52310-400-00000Performing Art Services 0.00 14,000.00 12,000.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 1
D-10 FY 2025-26 City of Montclair Preliminary Budget Page 269 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
94,240 280,019 94,000.00 0.00 52450-400-00000Special Contract Services 0.00 94,000.00 75,000.00 0.00 0.00 901 910 2,100.00 0.00 52540-400-00000Vocational Training 0.00 2,100.00 1,100.00 0.00 0.00 0 0 18,000.00 0.00 52690-400-00000Small Equipment 0.00 18,000.00 18,000.00 0.00 0.00 474 1,266 0.00 0.00 52850-400-00000Cellular Phone Expense 0.00 0.00 0.00 0.00 0.00 24,762 38,243 120,200.00 0.00 52870-400-00000Program Costs - Reimbursement 0.00 80,200.00 80,200.00 0.00 0.00 2,600 2,500 3,500.00 0.00 52920-400-00000Stipends - CAC 0.00 3,500.00 3,500.00 0.00 0.00 6,286 1,931 4,000.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 4,500.00 4,500.00 0.00 0.00 269,127 518,486 473,100 0 Services & Supplies Totals: 0.00 438,500 393,200 0 0 E30 Capital Outlay
0 421 0.00 0.00 62010-400-00000Office Equipment/Furniture 0.00 0.00 0.00 0.00 0.00 0 33,812 0.00 0.00 62020-400-00000Transportation & Work Equipmen 0.00 68,533.00 0.00 0.00 0.00 10,502 16,432 0.00 0.00 62050-400-00000Other Equipment 0.00 0.00 0.00 0.00 0.00 10,502 50,665 0 0 Capital Outlay Totals: 0.00 68,533 0 0 0 1,193,963 1,725,220 2,058,935 0 EXPENDITURES TOTALS: 0.00 2,165,917 1,854,435 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
1,193,963 1,725,220 2,058,935 0 DEPT EXPENSES 0.00 2,165,917 1,854,435 0 0 (1,193,963) (1,725,220) (2,058,935) 0 Recreation Totals: 0.00 (2,165,917) (1,854,435) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
1,193,963 1,725,220 2,058,935 0 FUND EXPENSES 0.00 2,165,917 1,854,435 0 0 (1,193,963) (1,725,220) (2,058,935) 0 General Fund Totals: 0.00 (2,165,917) (1,854,435) 0 0 1138 Senior Nutrition Fund
4381 Recreation
E20 Services & Supplies
332 424 1,200.00 0.00 52540-400-00000Staff Training 0.00 1,200.00 1,200.00 0.00 0.00 332 424 1,200 0 Services & Supplies Totals: 0.00 1,200 1,200 0 0 332 424 1,200 0 EXPENDITURES TOTALS: 0.00 1,200 1,200 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 2
D-11 FY 2025-26 City of Montclair Preliminary Budget Page 270 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
332 424 1,200 0 DEPT EXPENSES 0.00 1,200 1,200 0 0
(332) (424) (1,200) 0 Recreation Totals: 0.00 (1,200) (1,200) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
332 424 1,200 0 FUND EXPENSES 0.00 1,200 1,200 0 0
(332) (424) (1,200) 0 Senior Nutrition Fund Totals: 0.00 (1,200) (1,200) 0 0 1160 After-School Program Grant
4381 Recreation
E20 Services & Supplies
0 0 3,600.00 0.00 52130-400-00000Travel & Meetings 0.00 3,600.00 3,600.00 0.00 0.00 0 0 7,300.00 0.00 52540-400-00000Staff Training 0.00 7,300.00 7,300.00 0.00 0.00 0 0 2,500.00 0.00 52870-400-00000Program Costs - Reimbursement 0.00 2,500.00 2,500.00 0.00 0.00 0 0 13,400 0 Services & Supplies Totals: 0.00 13,400 13,400 0 0 0 0 13,400 0 EXPENDITURES TOTALS: 0.00 13,400 13,400 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
0 0 13,400 0 DEPT EXPENSES 0.00 13,400 13,400 0 0
0 0 (13,400) 0 Recreation Totals: 0.00 (13,400) (13,400) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
0 0 13,400 0 FUND EXPENSES 0.00 13,400 13,400 0 0
0 0 (13,400) 0 After-School Program Grant Totals: 0.00 (13,400) (13,400) 0 0 1167 Resource Center Grant - OMSD
4381 Recreation
E20 Services & Supplies
GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 3
D-12 FY 2025-26 City of Montclair Preliminary Budget Page 271 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
27,805 1,668 0.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 0.00 0.00 0.00 0.00 27,805 1,668 0 0 Services & Supplies Totals: 0.00 0 0 0 0 27,805 1,668 0 0 EXPENDITURES TOTALS: 0.00 0 0 0 0
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
27,805 1,668 0 0 DEPT EXPENSES 0.00 0 0 0 0
(27,805) (1,668) 0 0 Recreation Totals: 0.00 0 0 0 0
0 0 0 0 FUND REVENUES 0.00 0 0 0 0
27,805 1,668 0 0 FUND EXPENSES 0.00 0 0 0 0
(27,805) (1,668) 0 0 Resource Center Grant - OMSD Totals: 0.00 0 0 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
1,222,100 1,727,312 2,073,535 0 REPORT EXPENSES 0.00 2,180,517 1,869,035 0 0 (1,222,100) (1,727,312) (2,073,535) 0 REPORT TOTALS: 0.00 (2,180,517) (1,869,035) 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 4
D-13 FY 2025-26 City of Montclair Preliminary Budget Page 272 of 741

WORKSHEET - JUSTIFICATION OF

CONFERENCE AND IN-SERVICE TRAINING REQUEST
SCHEDULE A – TRAVEL & MEETINGS
Department: Human Services Program: 4381 Recreation Object Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Travel Allowance Reason for Expenditure will be Held of Event Expense 52130 CPRS Annual Conference Long Beach, CA March 10-13, 2026 $6,000 Assistant City Manager/Director of HS Assistant Director of HS & Grant Manager Recreation Manager Community Services Supervisor Senior Citizens Supervisor Recreation Coordinator Recreation Coordinator Administrative Analyst 52130 American Public Health Association Washington D.C Nov. 2-5, 2025 $3,000 Assistant Director of HS & Annual Conference Grant Manager (General Fund sub-total: $9,000)
(Only $7,000 approved in City Manager’s Budget)
52130 California Expanded Learning TBA Spring 2026 $3,600 Montclair ASP Supervisor Symposium Montclair Afterschool Program Coordinator Montclair Afterschool Program Coordinator (After-School Program Grant sub-total: $3,600)
Total: $12,600
(Only $10,600 approved in City Manager’s Budget)
D-14
FY 2025-26 City of Montclair Preliminary Budget Page 273 of 741

WORKSHEET - JUSTIFICATION OF

CONFERENCE AND IN-SERVICE TRAINING REQUEST
SCHEDULE B – VOCATIONAL TRAINING
Department: Human Services Program: 4381 Recreation Object Name and Title of Person Place Where Event Date(s) Total Est. Code Requesting Training Allowance Reason for Expenditure will be Held of Event Expense 52540 50 Human Services Staff CPR and First Aid Training Montclair, CA 2025-2026 $2,100 (General Fund sub-total: $2,100)
52540 36 Nutrition Staff and Volunteers Food Handlers Certification Montclair, CA 2025-2026 $1,200 (DAAS Grant sub-total: $1,200)
52540 MAP part-time and full-time Staff CPR and First Aid Training Montclair, CA 2025-2026 $6,000 52540 Inland Empire Expanded Learning TBA Spring 2026 $1,300 MAP Supervisor MAP Coordinator MAP Coordinator
16 part-time MAP Staff
(After-School Program Grant sub-total: $7,300)
Total: $10,600
(Only $9,600 approved in City Manager’s Budget)
D-15
FY 2025-26 City of Montclair Preliminary Budget Page 274 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4381 Recreation Object Number 51130 PROGRAM SUPPLIES – $97,200 (Only $90,000 approved in City Manager’s Budget) Special event supplies, $25,000 Snow play supplies, $20,000 Dashing through Montclair, $1,500 Part-time staff shirts, sweaters/jackets, $5,800 Full-time staff shirts, sweaters/jackets, $2,400 Teen and youth programs, $10,500 Movie licensing, $2,000 Country Fair Jamboree, $30,000 52050 MAINTENANCE – OTHER EQUIPMENT – $9,100 (Only $5,000 approved in City Manager’s Budget) Tune and repair two pianos, $600 Weight room equipment maintenance, $4,000 Weight room and racquetball court cleaning/sanitization, $3,000Miscellaneous equipment maintenance, $1,500 52090 PUBLICATION AND ADVERTISING – $32,500 (Only $25,000 approved in City Manager’s Budget) Costs for production of the Human Services Department brochures (3) (Printing, design, and layout), $32,000 Printing costs for youth programs, $500 52110 COMMUNITY BENEFITS – $45,000
Contributions to local service agencies.
52120 DUES AND MEMBERSHIPS – $4,000 (Only $3,500 approved in City Manager’s Budget) California Parks and Recreation Society (9), SCMAF (4), ASA/National Council on Aging (2), Community Health Association of Inland Southern Region, American Public Health Association.

D-16
FY 2025-26 City of Montclair Preliminary Budget Page 275 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4381 Recreation Object Number 52130 TRAVEL AND MEETINGS – $12,600 (Only $10,600 approved in City Manager’s Budget) Attendance at conferences and meetings – for detail see "Worksheet – Justification of Conference and In-Service Training Request Schedule A – Travel & Meetings.” (General Fund – $9,000, After-School Program Grant – $3,600) 52170 COMMUNITY ACTIVITIES COMMISSION – $17,000 (Only $15,000 approved in City Manager’s Budget) Holiday events, $9,000 Expenditures for projects sponsored by the Committee, $4,700 Veterans Day banners, $3,000 Shirts, $300
52310 PERFORMING ART SERVICES – $14,000 (Only $12,000 approved in City Manager’s Budget) Performing artists' fees for summer "Concert Series" events, and children’s activities. 52450 SPECIAL CONTRACT SERVICES – $94,000 (Only $75,000 approved in City Manager’s Budget) Cost of grant writing services, $80,000 Cost of services to be provided by outside contractors for recreation services, including referees for Youth Basketball League and Youth Volleyball League, $14,000
52540 VOCATIONAL TRAINING – $10,600 (Only $9,600 approved in City Manager’s Budget) Attendance at vocational training classes – for details see “Worksheet – Justification of Conference and In-Service Training Request Schedule B” – Vocational Training.” (General Fund – $2,100; DAAS Grant – $1,200; After-School Program Grant – $7,300) D-17
FY 2025-26 City of Montclair Preliminary Budget Page 276 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4381 Recreation Object Number 52690 SMALL EQUIPMENT – $18,000 Cost for the purchase of new tables for events and activities at the Community Center. 52870 REIMBURSED PROGRAM COSTS – $82,700
Program costs that will be reimbursed through fees: Vermont Systems maintenance fees and training, $5,000 Summer day camp (shirts, trips, snacks, supplies, awards), $22,000 Summer and Winter Youth Basketball (awards, pictures, uniforms, coaching shirts, sport balls, and tournaments), $17,000 Spring and Fall Youth Volleyball (shirts, awards, uniforms, pictures, awards, program materials), $12,000 Adult basketball (shirts, awards), $2,100 Adult volleyball (shirts, awards), $2,100 Country Fair Jamboree, $20,000 Youth performances, $2,500 (After-School Program Grant) 52871 REIMBURSED PROGRAM COSTS – <$82,700>
Reimbursement to the City from applicants for the costs related to Recreation programs. 52920 CAC STIPENDS – $3,500 52990 MISCELLANEOUS EXPENDITURES – $4,500 Southern California Municipal Athletic Federation (SCMAF) City Hosted meeting and lunch, $300 Volunteer expenses, $2,000 Miscellaneous program expenses, $2,200 D-18
FY 2025-26 City of Montclair Preliminary Budget Page 277 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF CAPITAL OUTLAY EXPENDITURE REQUESTS
Department: Human Services Program: 4381 Recreation
Object Code Item Justification Cost
62020 2024 Ford Transit 350 XL The Human Services Department’s 2006 Ford Escape Hybrid Unit 200 and the 2003 Ford E-450 (back-up Golden Express Bus) are no longer in active service due to the high cost of repairs needed. The auction of both vehicles was approved by City Council on February 3, 2025. The Human Services Department is requesting to purchase a new 2024 Ford Transit 350 XL. This large vehicle will replace the Ford Escape while also acting as back-up to the Golden Express. $68,533
Total: $68,533
(Not approved in City Manager’s Budget)
D-19
FY 2025-26 City of Montclair Preliminary Budget Page 278 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4382
Department Division Program
Human Services Clinic
Program Description
Provides general medical and case management services to community residents, particularly those with limited access to medical services elsewhere with emphasis on treatment of basic medical needs, health and exercise programs, and prevention and education of critical health issues.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 19,459 20,842 20,842
Services and Supplies 68,300 67,350 65,550
Capital Outlay 0 0 0
Total 87,759 88,192 86,392
Personnel Authorized 0.25 (FT) 0.25 (FT) 0.25 (FT)
Source of Funds
General Fund 87,759 88,192 86,392
Total 87,759 88,192 86,392
D-20 FY 2025-26 City of Montclair Preliminary Budget Page 279 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Health Education Specialist 0.25 0.25 0.25 13,662 13,662

Full Time 0.25 0.25 0.25 13,662 13,662
Total Salaries & Wages 13,662 13,662
Benefit Costs 4,804 4,804
PERS Benefit Costs 2,376 2,376
Total Benefit Costs 7,180 7,180
TOTAL 20,842 20,842

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Human Services Program: 4382 Clinic
D-21 FY 2025-26 City of Montclair Preliminary Budget Page 280 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Human Services 4382 Clinic
Work Program
Offer health services through an osteopathic manipulative medicine clinic with Doctor of Osteopathic Medicine Students from Western University of Health sciences while continuing to offer health and physical education programs, case management services, along with assistance and referrals to community agencies and services.

In addition, continue partnerships and relationships with community social services agencies, mental health clinics and public safety groups and serving as a training center for medical students and mental health clinicians.

Units of Measure

1. The medical clinic sees over 50 patients annually and serves as a training center for medical students.

2. A yearly health fair, which averages over 300 attendees, offers flu shots and hearing, structural, and blood pressure tests, as well as information on medical and social programs.

Personnel Services – $20,842
Salary requests are for: Health Education Specialist (0.25) – $13,662. Cost allocations are as follows: full-time salaries – $13,662; benefit costs – $7,180.

Services and Supplies – $67,350
Funding requested is for: program supplies – $1,750; materials–recycle/clean–up – $2,000; special contract services – $60,000; stipends – $2,800; miscellaneous expenditures – $800.

Capital Outlay
No funding requested.

D-22 FY 2025-26 City of Montclair Preliminary Budget Page 281 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 4:47PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4382 Clinic
E10 Personnel Services
0 12,510 13,011.00 0.00 41010-400-00000Regular Earnings 0.00 13,662.00 13,662.00 0.00 0.00 0 0 3,900.00 0.00 45220-400-00000Benefit Plan 0.00 4,500.00 4,500.00 0.00 0.00 0 2,071 2,255.00 0.00 45250-400-00000P.E.R.S. 0.00 2,376.00 2,376.00 0.00 0.00 0 53 58.00 0.00 45270-400-00000LTD Insurance 0.00 60.00 60.00 0.00 0.00 0 42 46.00 0.00 45290-400-00000Life Insurance 0.00 46.00 46.00 0.00 0.00 0 181 189.00 0.00 45330-400-00000Medicare 0.00 198.00 198.00 0.00 0.00 0 14,857 19,459 0 Personnel Services Totals: 0.00 20,842 20,842 0 0 E20 Services & Supplies
245 (1) 2,000.00 0.00 51130-400-00000Program Supplies 0.00 1,750.00 1,750.00 0.00 0.00 1,430 855 2,500.00 0.00 51430-400-00000Materials - Recycle/Cleanup 0.00 2,000.00 2,000.00 0.00 0.00 50,136 50,136 60,000.00 0.00 52450-400-00000Special Contract Services 0.00 60,000.00 60,000.00 0.00 0.00 0 855 2,800.00 0.00 52920-400-00000Stipends 0.00 2,800.00 1,000.00 0.00 0.00 205 539 800.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 800.00 800.00 0.00 0.00 52,016 52,383 68,100 0 Services & Supplies Totals: 0.00 67,350 65,550 0 0 52,016 67,240 87,559 0 EXPENDITURES TOTALS: 0.00 88,192 86,392 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
52,016 67,240 87,559 0 DEPT EXPENSES 0.00 88,192 86,392 0 0 (52,016) (67,240) (87,559) 0 Clinic Totals: 0.00 (88,192) (86,392) 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 1
D-23 FY 2025-26 City of Montclair Preliminary Budget Page 282 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 FUND REVENUES 0.00 0 0 0 0
52,016 67,240 87,559 0 FUND EXPENSES 0.00 88,192 86,392 0 0 (52,016) (67,240) (87,559) 0 General Fund Totals: 0.00 (88,192) (86,392) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
52,016 67,240 87,559 0 REPORT EXPENSES 0.00 88,192 86,392 0 0 (52,016) (67,240) (87,559) 0 REPORT TOTALS: 0.00 (88,192) (86,392) 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 2
D-24 FY 2025-26 City of Montclair Preliminary Budget Page 283 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4382 Clinic Object Number 51130 PROGRAM SUPPLIES – $1,750 Medical clinic supplies, $750 Health Fair, $1,000 (General Fund – $250; Donation – Montclair Hospital Medical Center – $500, Other – $250) 51430 MATERIALS – RECYCLE/CLEAN–UP – $2,000
Community Sharps Disposal Program supplies and hazardous waste services. 52450 SPECIAL CONTRACT SERVICES – $60,000
Case management supportive services through a partnership with the Ontario–Montclair School District 52920 STIPENDS – $2,800 (Only $1,000 approved in City Manager’s Budget) Medical Clinic Consejera, $2,500 Volunteer Student Coordinator, $300 52990 MISCELLANEOUS EXPENDITURES – $800
Volunteer expenses, $700 Certificates/awards, $100
D-25
FY 2025-26 City of Montclair Preliminary Budget Page 284 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4383
Department Division Program
Human Services Senior Citizens
Program Description
Develop, implement, and coordinate educational, social, and recreational programs to meet the diverse and changing needs of the senior population in the community at the Senior Center and other community sites, along with serving as an advocate for the needs of seniors.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 193,112 232,968 232,968
Services and Supplies 42,397 32,400 32,400
Capital Outlay 0 0 0
Total 235,509 265,368 265,368
Personnel Authorized 2.00 (FT) 2.00 (FT) 2.00 (FT)

2.00 (PT) 2.00 (PT) 2.00 (PT)
Source of Funds
General Fund 209,912 240,268 240,268
Community Dev Block Grant Fund 9,997 9,500 9,500
Senior Support Services Grant 15,600 15,600 15,600
Total 235,509 265,368 265,368
D-26 FY 2025-26 City of Montclair Preliminary Budget Page 285 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Senior Citizens Supervisor 1.00 1.00 1.00 76,969 76,969 Recreation Coordinator 1.00 1.00 1.00 53,125 53,125
Part-Time
Transportation Coordinator 2.00 2.00 2.00 49,876 49,876 Full Time 2.00 2.00 2.00 130,094 130,094
Part Time 2.00 2.00 2.00 49,876 49,876
Total Salaries & Wages 179,970 179,970
Benefit Costs 42,642 42,642
PERS Benefit Costs 10,356 10,356
Total Benefit Costs 52,998 52,998
TOTAL 232,968 232,968

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Human Services Program: 4383 Senior Citizens D-27 FY 2025-26 City of Montclair Preliminary Budget Page 286 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Human Services 4383 Senior Citizens
Work Program
Serves as a comprehensive center for senior services, including legal, financial, case management, physical, social, and transportation services to promote successful aging.

Units of Measure
The Senior Citizens Program provides activities, education, and services out of the Senior Center to approximately 28,800 participants annually.

Personnel Services – $232,968
Salary requests are for: Senior Citizens Supervisor (1.00) – $76,969; Recreation Coordinator (1.00) – $53,125; Transportation Coordinator (2.00/part-time) – $49,876. Cost allocations are as follows: full-time salaries – $130,094; part-time salaries – $49,876; benefit costs – $52,998.

Services and Supplies – $32,400
Funding requested is for: program supplies – $14,000; special contract services – $11,100; miscellaneous expenditures – $7,300.

Capital Outlay
No funding requested.

D-28 FY 2025-26 City of Montclair Preliminary Budget Page 287 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 4:47PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4383 Senior Citizens
E10 Personnel Services
41,778 37,036 116,544.00 0.00 41010-400-00000Regular Earnings 0.00 130,094.00 130,094.00 0.00 0.00 2,480 1,361 40,522.00 0.00 42020-400-00000Part Time Wages 0.00 49,876.00 49,876.00 0.00 0.00 (486) 0 -9,997.00 0.00 42024-400-00000PT Wage Reimb - CDBG 0.00 -9,500.00 -9,500.00 0.00 0.00 0 191 0.00 0.00 44170-400-00000Holiday Pay 0.00 0.00 0.00 0.00 0.00 0 0 31,200.00 0.00 45220-400-00000Benefit Plan 0.00 36,000.00 36,000.00 0.00 0.00 3,480 3,100 9,172.00 0.00 45250-400-00000P.E.R.S. 0.00 10,356.00 10,356.00 0.00 0.00 184 113 514.00 0.00 45270-400-00000LTD Insurance 0.00 573.00 573.00 0.00 0.00 151 84 368.00 0.00 45290-400-00000Life Insurance 0.00 368.00 368.00 0.00 0.00 852 560 2,277.00 0.00 45330-400-00000Medicare 0.00 2,609.00 2,609.00 0.00 0.00 1,054 70 2,512.00 0.00 45340-400-00000Social Security 0.00 3,092.00 3,092.00 0.00 0.00 49,492 42,516 193,112 0 Personnel Services Totals: 0.00 223,468 223,468 0 0 E20 Services & Supplies
2,682 3,239 7,000.00 0.00 51130-400-00000Program Supplies 0.00 6,500.00 6,500.00 0.00 0.00 2,958 2,992 3,000.00 0.00 52450-400-00000Special Contract Services 0.00 3,000.00 3,000.00 0.00 0.00 4,878 4,712 6,800.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 7,300.00 7,300.00 0.00 0.00 10,518 10,943 16,800 0 Services & Supplies Totals: 0.00 16,800 16,800 0 0 60,010 53,458 209,912 0 EXPENDITURES TOTALS: 0.00 240,268 240,268 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 1
D-29 FY 2025-26 City of Montclair Preliminary Budget Page 288 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
60,010 53,458 209,912 0 DEPT EXPENSES 0.00 240,268 240,268 0 0 (60,010) (53,458) (209,912) 0 Senior Citizens Totals: 0.00 (240,268) (240,268) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
60,010 53,458 209,912 0 FUND EXPENSES 0.00 240,268 240,268 0 0 (60,010) (53,458) (209,912) 0 General Fund Totals: 0.00 (240,268) (240,268) 0 0 1132 Community Development Block Gr
4383 Senior Citizens
E10 Personnel Services
0 8,817 9,997.00 0.00 42020-400-00000Golden Express-Part Time Wages 0.00 9,500.00 9,500.00 0.00 0.00 15,000 0 0.00 0.00 42024-400-00000PT Wages Reimb-Golden Express 0.00 0.00 0.00 0.00 0.00 15,000 8,817 9,997 0 Personnel Services Totals: 0.00 9,500 9,500 0 0 15,000 8,817 9,997 0 EXPENDITURES TOTALS: 0.00 9,500 9,500 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
15,000 8,817 9,997 0 DEPT EXPENSES 0.00 9,500 9,500 0 0 (15,000) (8,817) (9,997) 0 Senior Citizens Totals: 0.00 (9,500) (9,500) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
15,000 8,817 9,997 0 FUND EXPENSES 0.00 9,500 9,500 0 0 (15,000) (8,817) (9,997) 0 Community Development Block Gr Totals: 0.00 (9,500) (9,500) 0 0 1168 Title IIIB Sr Support Services
4383 Senior Citizens
E10 Personnel Services
20,329 24,679 0.00 0.00 42020-400-00000Part Time Wages 0.00 0.00 0.00 0.00 0.00 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 2
D-30 FY 2025-26 City of Montclair Preliminary Budget Page 289 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
371 388 0.00 0.00 45330-400-00000Medicare 0.00 0.00 0.00 0.00 0.00 1,260 1,530 0.00 0.00 45340-400-00000Social Security 0.00 0.00 0.00 0.00 0.00 21,961 26,597 0 0 Personnel Services Totals: 0.00 0 0 0 0 E20 Services & Supplies
5,999 7,309 7,500.00 0.00 51130-400-00000Program Supplies 0.00 7,500.00 7,500.00 0.00 0.00 8,652 7,258 8,100.00 0.00 52450-400-00000Special Contract Services 0.00 8,100.00 8,100.00 0.00 0.00 14,652 14,567 15,600 0 Services & Supplies Totals: 0.00 15,600 15,600 0 0 36,612 41,163 15,600 0 EXPENDITURES TOTALS: 0.00 15,600 15,600 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
36,612 41,163 15,600 0 DEPT EXPENSES 0.00 15,600 15,600 0 0 (36,612) (41,163) (15,600) 0 Senior Citizens Totals: 0.00 (15,600) (15,600) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
36,612 41,163 15,600 0 FUND EXPENSES 0.00 15,600 15,600 0 0 (36,612) (41,163) (15,600) 0 Title IIIB Sr Support Services Totals: 0.00 (15,600) (15,600) 0 0 0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
111,622 103,439 235,509 0 REPORT EXPENSES 0.00 265,368 265,368 0 0 (111,622) (103,439) (235,509) 0 REPORT TOTALS: 0.00 (265,368) (265,368) 0 0 GL-Budget Analysis (6/11/2025 - 4:47 PM) Page 3
D-31 FY 2025-26 City of Montclair Preliminary Budget Page 290 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4383 Senior Citizens Object Number 51130 PROGRAM SUPPLIES – $14,000 Food distribution supplies, $2,500 Food costs-activity related not grant funded, $4,000 Helium tank refills, $500 (DAAS IIIB Senior Supportive Services Grant) Senior special event and activity supplies, $7,000 (DAAS IIIB Senior Supportive Services Grant) 52450 SPECIAL CONTRACT SERVICES – $11,100
Program speakers, entertainment, $8,100 (DAAS IIIB Senior Supportive Services Grant) Case Manager, $3,000 52990 MISCELLANEOUS EXPENDITURES – $7,300 Annual Volunteer Recognition Dinner, $4,000 Volunteer expenses, $700 Montclair Walkers program expenses, $700 Community Health fair, $700 Intergenerational program, $500 Miscellaneous program expenses, $700 D-32
FY 2025-26 City of Montclair Preliminary Budget Page 291 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4384
Department Division Program
Human Services Nutritional Meals
Program Description
Provide a well-balanced nutritional meal service to senior citizens in the community.

Current Department City Manager Council
Budget Distribution Authorization Request Recommended Approved Personnel Services 103,953 108,731 108,731
Services and Supplies 143,650 220,250 220,250
Capital Outlay 0 0 0
Total 247,603 328,981 328,981
Personnel Authorized 4.00 (PT) 4.00 (PT) 4.00 (PT)
Source of Funds
General Fund 9,000 4,000 4,000
DAAS Grant/Donations 238,603 324,981 324,981
Total 247,603 328,981 328,981
D-33 FY 2025-26 City of Montclair Preliminary Budget Page 292 of 741 Dept City Mgr Dept City Mgr Adopted
Classification Current Request Recom Final Request Recom Budget Part-Time
Nutrition Site Manager 1.00 1.00 1.00 30,492 30,492
Kitchen Assistant 2.00 2.00 2.00 50,272 50,272
Health Education Intern 1.00 1.00 1.00 18,106 18,106
Part Time 4.00 4.00 4.00 98,870 98,870
Total Salaries & Wages 98,870 98,870
Benefit Costs 6,293 6,293
PERS Benefit Costs 3,568 3,568
Total Benefit Costs 9,861 9,861
TOTAL 108,731 108,731

DETAIL OF SALARIES AND WAGES

POSITION QUOTA APPROPRIATIONS
Department: Human Services Program: 4384 Nutritional Meals D-34 FY 2025-26 City of Montclair Preliminary Budget Page 293 of 741 PROGRAM BUDGET SUMMARY – 2

REQUESTS AS SUBMITTED BY DEPARTMENT
Department Division Program
Human Services 4384 Nutritional Meals
Work Program
Provide the administration and delivery of a well-balanced nutritional meal service to the senior citizens of the community. Coordinate an outreach service to senior citizens to better assist them in maintaining their independence.

Units of Measure
The Senior Citizens Lunch Program offers a nutritious lunch each weekday to seniors ages 60 and older. The County of San Bernardino Department of Aging and Adult Services (DAAS) provides additional funding that allows the program to serve up to 23,200 meals annually.

Personnel Services – $108,731
Salary requests are for: Nutrition Site Manager (1.00/part-time) – $30,492; Kitchen Assistant (2.00/part-time) – $50,272; Health Education Intern (0.50/part-time) – $18,106. Cost allocations are as follows: part-time salaries – $98,870; benefit costs – $9,861.

Services and Supplies – $220,250
Funding requested is for: program supplies – $7,500; special consulting services – $3,250; special contract services – $200,000; raw food – $1,000; small equipment – $1,000; reimbursed program costs – $4,000; miscellaneous expenditures – $3,500.

Capital Outlay
No funding requested.

D-35 FY 2025-26 City of Montclair Preliminary Budget Page 294 of 741 General Ledger
User: jkulbeck
Fiscal Year:

Printed: 06/11/2025 - 4:48PM
2026
Budget Analysis
2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
1001 General Fund
4384 Nutrional Meals
E10 Personnel Services
67,153 72,576 0.00 0.00 41010-400-16005Regular Earnings 0.00 0.00 0.00 0.00 0.00 1,540 1,620 0.00 0.00 45240-400-00000Deferred Compensation 0.00 0.00 0.00 0.00 0.00 465 558 0.00 0.00 45330-400-00000Medicare 0.00 0.00 0.00 0.00 0.00 69,158 74,755 0 0 Personnel Services Totals: 0.00 0 0 0 0 E20 Services & Supplies
0 3,619 9,000.00 0.00 52870-400-00000Program Costs - Reimbursement 0.00 4,000.00 4,000.00 0.00 0.00 0 3,619 9,000 0 Services & Supplies Totals: 0.00 4,000 4,000 0 0 69,158 78,374 9,000 0 EXPENDITURES TOTALS: 0.00 4,000 4,000 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
69,158 78,374 9,000 0 DEPT EXPENSES 0.00 4,000 4,000 0 0 (69,158) (78,374) (9,000) 0 Nutrional Meals Totals: 0.00 (4,000) (4,000) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
69,158 78,374 9,000 0 FUND EXPENSES 0.00 4,000 4,000 0 0 (69,158) (78,374) (9,000) 0 General Fund Totals: 0.00 (4,000) (4,000) 0 0 1138 Senior Nutrition Fund
4384 Nutrional Meals
E10 Personnel Services
GL-Budget Analysis (6/11/2025 - 4:48 PM) Page 1
D-36 FY 2025-26 City of Montclair Preliminary Budget Page 295 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
25,877 80,272 94,509.00 0.00 42020-400-00000Part Time Wages 0.00 98,870.00 98,870.00 0.00 0.00 40,693 0 0.00 0.00 42020-400-16003PT Wages COVID-19 0.00 0.00 0.00 0.00 0.00 2,774 894 3,448.00 0.00 45250-400-00000P.E.R.S. 0.00 3,568.00 3,568.00 0.00 0.00 82 7 0.00 0.00 45270-400-00000LTD Insurance 0.00 0.00 0.00 0.00 0.00 68 6 0.00 0.00 45290-400-00000Life Insurance 0.00 0.00 0.00 0.00 0.00 1,275 1,223 1,370.00 0.00 45330-400-00000Medicare 0.00 1,434.00 1,434.00 0.00 0.00 3,673 4,771 4,626.00 0.00 45340-400-00000Social Security 0.00 4,859.00 4,859.00 0.00 0.00 74,442 87,173 103,953 0 Personnel Services Totals: 0.00 108,731 108,731 0 0 E20 Services & Supplies
5,303 4,063 7,500.00 0.00 51130-400-00000Consumable Supplies 0.00 7,500.00 7,500.00 0.00 0.00 1,138 2,157 3,100.00 0.00 52190-400-00000Consultants 0.00 3,250.00 3,250.00 0.00 0.00 105,270 144,192 115,350.00 0.00 52450-400-00000Catered Food 0.00 200,000.00 200,000.00 0.00 0.00 1,270 1,051 6,500.00 0.00 52451-400-00000Raw Food 0.00 1,000.00 1,000.00 0.00 0.00 1,570 977 0.00 0.00 52690-400-00000Small Equipment 0.00 1,000.00 1,000.00 0.00 0.00 3,559 3,559 2,200.00 0.00 52990-400-00000Miscellaneous Expenditures 0.00 3,500.00 3,500.00 0.00 0.00 118,109 156,000 134,650 0 Services & Supplies Totals: 0.00 216,250 216,250 0 0 E30 Capital Outlay
7,701 0 0.00 0.00 62050-400-00000Other Equipment 0.00 0.00 0.00 0.00 0.00 7,701 0 0 0 Capital Outlay Totals: 0.00 0 0 0 0
200,252 243,172 238,603 0 EXPENDITURES TOTALS: 0.00 324,981 324,981 0 0 0 0 0 0 DEPT REVENUES 0.00 0 0 0 0
200,252 243,172 238,603 0 DEPT EXPENSES 0.00 324,981 324,981 0 0 (200,252) (243,172) (238,603) 0 Nutrional Meals Totals: 0.00 (324,981) (324,981) 0 0 0 0 0 0 FUND REVENUES 0.00 0 0 0 0
200,252 243,172 238,603 0 FUND EXPENSES 0.00 324,981 324,981 0 0 (200,252) (243,172) (238,603) 0 Senior Nutrition Fund Totals: 0.00 (324,981) (324,981) 0 0 GL-Budget Analysis (6/11/2025 - 4:48 PM) Page 2
D-37 FY 2025-26 City of Montclair Preliminary Budget Page 296 of 741 2023 2024 2025 2025
Actual Actual Adopted Estimated Account Description FTE Requested Proposed Approved Adopted 2026 2026 2026 2026
0 0 0 0 REPORT REVENUES 0.00 0 0 0 0
269,410 321,546 247,603 0 REPORT EXPENSES 0.00 328,981 328,981 0 0 (269,410) (321,546) (247,603) 0 REPORT TOTALS: 0.00 (328,981) (328,981) 0 0 GL-Budget Analysis (6/11/2025 - 4:48 PM) Page 3
D-38 FY 2025-26 City of Montclair Preliminary Budget Page 297 of 741

CITY OF MONTCLAIR

JUSTIFICATION OF SERVICES & SUPPLIES EXPENDITURE REQUESTS Department: Human Services Program: 4384 Nutritional Meals Object Number 51130 PROGRAM SUPPLIES – $7,500 Non–food consumable supplies. (DAAS Grant)
52190 SPECIAL CONSULTING SERVICES – $3,250
Consultant fees for Dietitian. (DAAS Grant)
52450 SPECIAL CONTRACT SERVICES – $200,000
Catered food costs. (DAAS Grant)
52451 RAW FOOD – $1,000
All other food item costs (i.e. not catered food) to support the Senior Nutrition program. (DAAS Grant) 52870 REIMBURSED PROGRAM COSTS – $4,000
Senior activity food expenses, not covered by grant funding. 52871 REIMBURSED PROGRAM COSTS – <$4,000>
Reimbursement to the City from residents for the costs related to senior programs. 52990 MISCELLANEOUS EXPENDITURES – $3,500
San Bernardino County Health Permit, $900 (DAAS Grant) SAMS/WellSky License, $1,500 (DAAS Grant) Nutrition Education, $200 (DAAS Grant) Miscellaneous program expenses, $900 (DAAS Grant) (Subject to the receipt of DAAS grant funding)
D-39
FY 2025-26 City of Montclair Preliminary Budget Page 298 of 741 PROGRAM BUDGET SUMMARY – 1
Program Number 4385
Department Division Program
Human Services Family and Health Education
Program Description
The family and health education program is comprised of the Healthy Montclair Initiative including Por La Vida activities and promotes health and well-being through training, community outreach and engagement.