Agenda packet — Ontario City Council, January 20, 2026 (part 1 of 8)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
JANUARY 20, 2026
City Hall
303 East B Street, Ontario, CA 91764

MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA PORADA AND DAISY MACIAS CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL

All documents for public review are on ﬁle with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to ﬁll out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time.

To submit written public comments by email, please send your name, the agenda item you are commenting on, and your comments to
[email protected]
. The public comment
submission window opens at the time the agenda is published and remains open until 4:00 p.m. on the day of the meeting. All comments received during this timeframe will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1

ACCOMMODATIONS

If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's oﬃce at 909-395-2009. Notiﬁcation of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS

The regular City Council and Housing Authority meeting begins with Closed Session and Closed Session Comment at
5:30 p.m.
, Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council.

CALL TO ORDER
(OPEN SESSION)

ROLL CALL

Wapner, Bowman, Porada, Macias, Mayor/Chairman Leon

INFORMATION RELATIVE TO POSSIBLE CONFLICT OF INTEREST
Agenda item contractors, subcontractors and agents may require member abstentions due to conﬂict of interests and ﬁnancial interests. Council Member abstentions shall be stated under this item for recordation on the appropriate item.

CLOSED SESSION PUBLIC COMMENT

The Closed Session Public Comment portion of the Council/Housing Authority meeting is limited to matters appearing on the Closed Session. Additional opportunities for further Public Comment will be given during and at the end of the meeting.

CLOSED SESSION
GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APN: 0113-281-13 and 0113-281-15; 2400 East Philadelphia Street and 2325 East Riverside Drive; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: City of Upland; Under negotiation: Price and terms of payment.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2

ATTACHMENT:

20260120 Closed Session.docx

GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Property: APN: 0110-322-08, 0110-322-17, 0110-322-18, 0110-322-21, 0110-322-22, 0110-322-29, 0110-322-30, 0110-322-31; 2501-2653 East Guasti Road and 217-219 North Archibald Avenue; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: M-K Associates and Mission Plaza Properties, Inc.; Under negotiation: Price and terms of payment.

GC 54956.95, CONFERENCE WITH LEGAL COUNSEL
San Bernardino Workers' Compensation Appeals Board, EAMS Case No. ADJ11152576

GC 54956.9(d)(1) CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION Unite Here Local 11 v. City of Ontario, Case No. CIVSB2514995

PLEDGE OF ALLEGIANCE
Council Member Porada

INVOCATION
Pastor Fajinmi, Dios International Missionary Church

REPORT ON CLOSED SESSION
City Attorney
PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes.

An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

AGENDA REVIEW/ANNOUNCEMENTS

The City Manager will go over all updated materials and correspondence received after the CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3

1. APPROVAL OF MINUTES

ATTACHMENT:

20251202 Meeting Minutes (Not Official Until Approved).docx

ATTACHMENT:

20251216 Meeting Minutes (Not Official Until Approved).docx

2. BILLS & PAYROLL

3. A MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN BERNARDINO COUNTY

TRANSPORTATION AUTHORITY (SBCTA) AND THE CITY OF ONTARIO FOR REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM (REAP 2.0) FUNDS

ATTACHMENT:

REAP 2.0 MOU Ontario.pdf

4. A CONSTRUCTION CONTRACT WITH K.C. RESTORATION CO., INC. FOR THE EMMONS BUILDING (GRANADA THEATER) HISTORIC REHABILITATION PROJECT PHASE 1 Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modiﬁcations or announcements regarding Agenda items to be considered.

CONSENT CALENDAR

All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below – there will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a speciﬁc item be removed from the Consent Calendar for a separate vote.

Minutes for the regular meetings of the City Council and Housing Authority of December 2, 2025, and regular meetings of the City Council, Housing Authority and Ontario Public Financing Authority for December 16, 2025, and approving same as on ﬁle in the Records Management Department.

Bills November 26, 2025
through December 26, 2025, and Payroll November 16, 2025 through December 13, 2025.

That the City Council approve a Funding Agreement between the City of Ontario and the San Bernardino County Transportation Authority (SBCTA) to receive Regional Early Action Planning Grants
Program

(REAP 2.0) Funds and authorize the City Manager, or his designee, to execute said Agreement and future amendments to the Agreement within the City Council approved budget.

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Construction Contract No.

D&C25-003 with K.C. Restoration Co., Inc., of Gardena, California, for the Emmons Building (Granada Theater) Historic Rehabilitation Project Phase 1 in the amount of $1,087,075 plus a 20% contingency of $217,415 for a total not-to-exceed contract CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4

ATTACHMENT:

KC Restoration - Construction Contract.pdf

5. A RESOLUTION FOR PLACEMENT OF SPECIAL ASSESSMENTS ON THE SAN BERNARDINO

COUNTY TAX ROLLS

ATTACHMENT:

20260120_Comm_Imp_Special_Assessments_for_County_Tax_Rolls_01_ RESO_RM.docx

ATTACHMENT:

20260120_Special Assessments^02 - Exhibit A.pdf

ATTACHMENT:

20260120_Special Assessments^03 - Exhibit B.pdf

ATTACHMENT:

20260120_Special Assessments^04 - Exhibit C.pdf

6. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL

ELECTRONIC ARCHIVING OF BUILDING PLANS

ATTACHMENT:

City of Ontario Proposal-OB.pdf

ATTACHMENT:

OB Amendment (3).pdf

7. ADOPTION OF ORDINANCE ESTABLISHING HOTEL EMPLOYEE SAFETY REGULATIONS

ATTACHMENT:

Hotel Safety Ordinance_RM

8. ANNUAL COMPRENHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025, amount of $1,304,490; and
B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but not limited to, agreements, assessments, easements, reduction of retention accounts, contract amendments within the authorization limits, and ﬁling a notice of completion at the conclusion of all construction-related activities.

That the City Council adopt a Resolution for recovery of fees and costs incurred in abating property and dangerous building violations, as well as administrative citations and civil penalties associated with property maintenance violations, and placing assessments on the San Bernardino County Tax Rolls.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING A

REPORT REQUESTING THE PLACEMENT OF SPECIAL ASSESSMENTS ON PROPERTY TAX BILLS

FOR CIVIL PENALTIES OR RECOVERY OF COSTS INCURRED FOR ABATEMENT OF VIOLATIONS OF CITY CODES AND ORDINANCES.

That the City Council authorize the City Manager, or his designee, to execute Amendment No. 3 to the Professional Services Agreement with OB Reprographics, Inc., increasing the contract amount by $141,375 to a new not-to-exceed amount of $259,218 to complete the electronic archiving of approved building plan sets.

That the City Council consider and adopt an Ordinance establishing safety regulations for hotel employees.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING HOTEL EMPLOYEE SAFETY REGULATIONS.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5 AND AB 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025

ATTACHMENT:

FY2025 ACFR_Executive Overview Powerpoint.pdf

ATTACHMENT:

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025.pdf

ATTACHMENT:

AB1600 DIF Annual Report For Fiscal Year Ended June 30, 2025.pdf

9. AUTHORIZE THE PURCHASE OF ELECTRIC VEHICLE CHARGERS WITH BODEV, INC. FOR THE

PUBLIC WORKS YARD UTILIZING THE ENERGY EFFICIENCY AND CONSERVATION BLOCK

GRANT FUNDING

ATTACHMENT:

sourcewell Electric Vehicle Contract 032824.pdf

ATTACHMENT:

Ontario - Fleet AmpUp (Quote 111225-3D) Labor removed.pdf

10. A RESOLUTION ACCEPTING AN AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES AWARD IN THE AMOUNT OF $30,803,123 FOR THE HOLT AND ALLYN AFFORDABLE RENTAL

HOUSING PROJECT

ATTACHMENT:

Resolution_-
_Affordable_Housing___Sustainable_Communities_Program_- _Ontario_Affordable_Housing_Phase_II_RM.docx

ATTACHMENT:

AHSC Application Workbook

ATTACHMENT:

New Grant Award Form - AHSC - signed 1.pdf

ATTACHMENT:

HCD Final Project Report - Ontario II (executed).pdf

ATTACHMENT:

AHSC R9 Conditional Award letter - Ontario Affordable Housing Phase II Executed.pdf
That the City Council accept the City of Ontario’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2025, and the City of Ontario's AB1600 Development Impact Fee (DIF) Annual Report for Fiscal Year ended June 30, 2025.

That the City Council authorize the City Manager, or his designee, to approve the purchase and delivery of six AuTel level 2 and two AuTel direct current electric vehicle (EV) chargers from BodEV Inc., of La Habra, California, utilizing the Energy Eﬃciency and Conservation Block Grant (EECBG) funding from the U.S. Department of Energy (DOE) in the amount of $173,184 plus a 10% contingency for a total not-to-exceed amount of $190,502, consistent with the terms and conditions of the Sourcewell Contract #032824-ELV.

That the City Council adopt a Resolution authorizing the execution of all necessary documents to accept funding totaling $30,803,123 from the Aﬀordable Housing and Sustainable Communities Program for the Holt and Allyn Affordable Rental Housing Project.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, PROCLAIMING

THE CITY OF ONTARIO HAS APPLIED TO THE AFFORDABLE HOUSING & SUSTAINABLE

COMMUNITIES PROGRAM (AHSC PROGRAM NOFA) THUS DIRECTING THE CALIFORNIA

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT AND THE STRATEGIC GROWTH

COUNCIL TO MAKE A CONDITIONAL COMMITMENT OF FUNDS TO ASSIST ONTARIO AFFORDABLE HOUSING PHASE II.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6

11. PRE-AUTHORIZED LIST OF VENDORS TO PROVIDE SPECIALIZED COMPUTER AND NETWORK

EQUIPMENT AND SERVICES

12. A LICENSE AGREEMENT FOR MICROSOFT 365 SUBSCRIPTION WITH CRAYON SOFTWARE

EXPERTS LLC

ATTACHMENT:

Crayon Software Experts LLC - County of Riverside 8084445 11.01.2024 to 10.31.2027 12182026.pdf

ATTACHMENT:

City of Ontario Renewal Quote 12032025.pdf

ATTACHMENT:

Crayon_Microsoft Program Signature Form.pdf

ATTACHMENT:

Crayon_Microsoft Enterprise Enrollment Agreement.pdf

13. ORDINANCES ADDING CHANGES TO CHAPTERS 18 AND 19 OF TITLE 8 OF THE ONTARIO

MUNICIPAL CODE

ATTACHMENT:

20251216 - URM Ordinance Address Index - Exhibit A.pdf
That the City Council authorize the City Manager, or his designee, to execute a pre-authorized vendor list to provide computer and network hardware and services to maintain and support the City’s technology infrastructure.

That the City Council authorize the City Manager, or his designee, to execute a three-year License Agreement with Crayon Software Experts LLC, of Dallas, Texas, for a Citywide Microsoft 365 Subscription, in an amount not-to-exceed $2,203,338.

That the City Council consider and adopt:

A
.

An Ordinance adding Chapter 18 of Title 8 of The Ontario Municipal Code Pertaining to a Seismic Safety Mitigation Program for Unreinforced Masonry Buildings.

B
.

An Ordinance adding Chapter 19 of Title 8 of The Ontario Municipal Code Pertaining to mandatory Seismic Strengthening provisions for existing wood-frame buildings with soft, weak or open-front wall.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING

PURSUANT TO AN EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, CHAPTER 18 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO A SEISMIC SAFETY

MITIGATION PROGRAM FOR UNREINFORCED MASONRY BUILDINGS, AND MAKING FINDINGS IN SUPPORT THEREOF.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING

PURSUANT TO AN EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, CHAPTER 19 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO MANDATORY

SEISMIC STRENGTHENING PROVISIONS FOR EXISTING WOOD-FRAME BUILDINGS WITH SOFT, WEAK OR OPEN-FRONT WALL, AND MAKING FINDINGS IN SUPPORT THEREOF.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7

ATTACHMENT:

URM_ORDINANCE_01_ORD_RM

ATTACHMENT:

SOFT_STORY_ORDINANCE_02_ORD_RM

ATTACHMENT:

20251216 - Soft Story Ordinance Address Index - Exhibit B.pdf

ATTACHMENT:

20251216 - URM Ordinance Address Map - Exhibit A-1.pdf

ATTACHMENT:

20251216 - Soft Story Ordinance Address Map - Exhibit B-1.pdf

14. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH RMA GROUP FOR

ON-CALL GEOTECHNICAL CONSULTING AND MATERIALS TESTING SERVICES FOR THE

VINEYARD PARKING STRUCTURE AND PROFESSIONAL BASEBALL STADIUM PROJECT

ATTACHMENT:

RMA Group - Amendment No. 3.pdf

15. AMENDMENTS TO THE PROFESSIONAL SERVICES AGREEMENT WITH AMERICAN THREAT ASSESSMENT CONSULTING, INC. FOR THE DE ANZA PARK RENOVATION PROJECT

ATTACHMENT:

ATAC - Amendment No. 12.pdf

ATTACHMENT:

ATAC - Amendment 13.pdf

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Amendment No. 3 to the Professional Services Agreement with RMA Group, of Rancho Cucamonga, California, to provide on-call geotechnical consulting and materials testing services for the Vineyard Parking Structure and Professional Baseball Stadium Projects in the amount of $1,946,145 for a total not-to-exceed contract amount of $5,386,245 and extend the contract term to May 2, 2028; and
B
.

That the City Council take the following actions:

a
.

Authorize the City Manager, or his designee, to execute Amendment No. 12 to the Maintenance Services Agreement with American Threat Assessment Consulting, Inc. (A.T.A.C), of Rancho Cucamonga, California, for the De Anza Park Renovation Project in the amount of $588,496 for a total not-to-exceed contract amount of $3,153,388; and b
.

Authorize the City Manager, or his designee, to execute Amendment No. 13 to the Maintenance Services Agreement with A.T.A.C, of Rancho Cucamonga, California, for the Fleet Services Shop Camera Installation in the amount of $25,070 for a total not-to- exceed contract amount of $3,178,458; and
c
.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8

16. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT WITH HMC ARCHITECTS FOR ON-

CALL ARCHITECTURAL SERVICES AND AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH KIMLEY-HORN ASSOCIATES, INC. FOR THE PREPARATION OF THE

ENVIRONMENTAL IMPACT REPORT FOR THE MUNICIPAL SERVICES CENTER RELOCATION

PROJECT

ATTACHMENT:

HMC Architects - Amendment No. 8.pdf

ATTACHMENT:

Kimley-Horn Associates - Amendment No. 1.pdf

17. A MAINTENANCE SERVICES AGREEMENT WITH CLEAN HARBORS ENVIRONMENTAL SERVICES INC. FOR FIREARM RANGE MAINTENANCE AND BIOHAZARD REMEDIATION

SERVICES

ATTACHMENT:

Maintenance_Services_Agreement.pdf

18. ORDINANCES APPROVING THE 2024 INTERNATIONAL FIRE CODE AND THE 2025

CALIFORNIA BUILDING AND FIRE CODES ADOPTED BY THE CALIFORNIA BUILDING That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Amendment No. 8 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide on-call architectural services for the Municipal Services Center Relocation Project in the amount of $13,566,326 for a total not-to-exceed contract amount of $33,501,466; and B
.

Authorize the City Manager, or his designee, to execute Amendment No. 1 to the to the Professional Services Agreement with Kimley-Horn Associates, Inc., of Riverside, California, for the preparation of the Environmental Impact Report (EIR) in the amount of $504,450, plus a 10% contingency of $50,445
, increasing the total contract amount by
$554,895
,
for a total not-to-exceed contract amount of $1,007,215 and extend the contract term to June 30, 2027; and
C
.

That City Council authorize the City Manager, or his designee, to execute a Maintenance Services Agreement for up to ﬁve years with Clean Harbors Environmental Services Inc. of Norwell, MA, for ﬁrearm range maintenance and biohazard remediation services for a total not-to-exceed agreement amount of $288,047.

PUBLIC HEARINGS

Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Aﬃdavits of posting compliance, for all items below, are on file with the Records Management Department.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9

STANDARDS COMMISSION IN THE CALIFORNIA CODE OF REGULATIONS

ATTACHMENT:

2025_Building_Ordinance_RM__2___1___1_.docx

ATTACHMENT:

2025_Building___Fire_Ordinance_01__2___1___1_RM.docx

19. A RESOLUTION TO ESTABLISH NEW COMMERCIAL/ENTERPRISE AND WHOLESALE FEES FOR

USE OF ONTARIONET'S FIBER OPTIC NETWORK
That the City Council adopt:

A
.

An Ordinance amending Chapter 4 of Title 4 of the Ontario Municipal Code, adopting by reference with certain amendments, the 2025 California Fire Code and the 2024 International Fire Code;
B
.

An Ordinance amending Chapters 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, and 14 of title 8 of the Ontario Municipal Code, adopting by reference the 2025 Edition of the California Building Standards Code.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTER 4 OF TITLE 4 OF THE ONTARIO MUNICIPAL CODE; ADOPTING BY REFERENCE WITH CERTAIN AMENDMENTS, ADDITIONS, DELETIONS, AND CHANGES THERETO, THE 2025 CALIFORNIA FIRE CODE AND THE 2024 INTERNATIONAL FIRE CODE.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTERS 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, AND 14 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE, ADOPTING BY REFERENCE THE 2025 EDITION OF THE CALIFORNIA BUILDING STANDARDS CODE, INCORPORATING THE 2025 CALIFORNIA ADMINISTRATIVE CODE, THE 2025 CALIFORNIA BUILDING CODE, THE 2025 CALIFORNIA MECHANICAL CODE, THE 1997 CALIFORNIA HOUSING CODE, THE 2025 CALIFORNIA ELECTRICAL CODE, THE 2025 CALIFORNIA RESIDENTIAL CODE, THE 2025 CALIFORNIA PLUMBING CODE, THE 2025 CALIFORNIA ENERGY CODE, THE 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE, THE 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE, THE 2025 HISTORIC BUILDING CODE, 2025 CALIFORNIA EXISTING BUILDING CODE, AND THE 2025 CALIFORNIA REFERENCED STANDARDS, TOGETHER WITH CERTAIN AMENDMENTS THERETO.

That the City Council adopt a resolution to modify its schedule of broadband fees, including the maximum and minimum rates that OntarioNet may charge commercial/enterprise and wholesale customers to access and use OntarioNet’s ﬁber optic network to connect to the Internet and to obtain communications services, upon the recommendation of the City Manager, and to delegate authority to the City Manager to negotiate contract rates with large commercial customers and wholesale customers within those established ranges, and to set all the other terms, conditions and policies applicable to commercial/enterprise and wholesale customer access and use of OntarioNet’s fiber optic network and related services.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING

COMMERCIAL/ENTERPRISE AND WHOLESALE FEES FOR USE OF THE ONTARIONET FIBER OPTIC NETWORK AND OTHER ASSOCIATED LOCAL GOVERNMENT PROPERTY.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10

ATTACHMENT:

Resolution_Adopting_OntarioNet_Rates_-_Ontario__2026__updated- c1_v2_RM.docx

20. AN APPEAL OF THE PLANNING COMMISSION'S DECISION APPROVING FILE NO. PDEV25- 007

ATTACHMENT:

Partially_Granting_Appeal_of_PDEV25-007_RESO_RM.docx

ATTACHMENT:

Exhibit A - Response to Comments Memo.pdf

ATTACHMENT:

PDEV25-007 PC Back-up.pdf

21. A RESOLUTION APPROVING CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY REVENUE BONDS UP TO $100 MILLION FOR FINANCING AND REFINANCING A

COMMERCIAL HOTEL PROJECT IN ONTARIO
That the City Council conduct a public hearing on the appeal, and after receiving public testimony, partially grant and partially deny the appeal, and set aside the Planning Commission’s approval of the Development Plan and adoption of the Addendum to the Sports Complex EIR. Staff recommends that the City Council:

1 .

Deny the Appeal as to Claims #2 and #3;
2 .

Grant the Appeal as to Claims #1 and #4;
3 .

Set aside the Planning Commission's adoption of the Sports Complex EIR Addendum and approval of the Development Plan; and
4 .

Conﬁrm that consideration of approval of the Sports Complex Hotel Development Plan can proceed only if the City Council has approved, pursuant to the adoption of the Addendum to the Sports Complex EIR, the Amended and Restated Disposition and Development Agreement.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, PARTIALLY APPROVING AN APPEAL OF THE PLANNING COMMISSION DECISION APPROVING FILE NO.

PDEV25-007.

That the City Council adopt a resolution to approve the issuance by California Statewide Communities Development Authority ("CSCDA") of one or more series of revenue bonds, from time to time, in an aggregate principal amount not to exceed $100,000,000 for the purpose of ﬁnancing and reﬁnancing the acquisition, construction, rehabilitation, improvement and equipping of a commercial hotel and related facilities owned by National Community Renaissance of California or its affiliates, and certain other matters relating thereto.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING THE

ISSUANCE BY CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF ONE OR

MORE SERIES OF REVENUE BONDS, FROM TIME TO TIME, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $100,000,000 FOR THE PURPOSE OF FINANCING AND REFINANCING

THE ACQUISITION, CONSTRUCTION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF A

COMMERCIAL HOTEL AND RELATED FACILITIES OWNED BY NATIONAL COMMUNITY

RENAISSANCE OF CALIFORNIA OR ITS AFFILIATES, AND CERTAIN OTHER MATTERS RELATING THERETO.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11

ATTACHMENT:

TEFRA Resolution-CSCDA NCORE Ontario Hotel RESO RM

22. CONSIDER APPROVAL, PURSUANT TO THE ADOPTION OF AN ADDENDUM TO THE

CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT FOR THE ONTARIO REGIONAL SPORTS COMPLEX (SCH NO. 2023110328), OF AN AMENDED AND RESTATED DISPOSITION

AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND ONTARIO RANCH HOTELS, LLC. FOR THE DEVELOPMENT OF A HOTEL FEATURING 226-GUEST ROOMS AT THE

SOUTHEAST CORNER OF EAST RIVERSIDE DRIVE AND ONTARIO AVENUE

ATTACHMENT:

Sport Empire Hotel Amended and Restated DDA 01 RESO RM

ATTACHMENT:

Exhibit A to Reso Sports Empire Hotel Amended Restated DDA 02

ATTACHMENT:

Exhibit B to Reso Sports Empire Amended and Restated DDA 03

23. A RESOLUTION FINDING THE ONTARIO AIRPORT HOTEL AND CONFERENCE CENTER

PROJECT SERVES THE PUBLIC INTEREST AND MAKING RELATED CEQA FINDINGS

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION
That the City Council (“City”) consider and adopt a Resolution approving:

A
.

Adopting an Addendum to the Certiﬁed Final Environmental Impact Report for the Ontario Regional Sports Complex (SCH No. 2023110328), certiﬁed by the City Council on July 16, 2024; and
B
.

Approving the Amended and Restated Disposition and Development Agreement ("Agreement") between the City of Ontario and Ontario Ranch Hotels, LLC. ("Developer") (on file with the Records Management Department; and
C
.

Authorizing the City Manager, or his designee, to sign all documents necessary to implement the Agreement

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING,

PURSUANT TO THE ADOPTION OF AN ADDENDUM TO THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT FOR THE ONTARIO REGIONAL SPORTS COMPLEX (SCH NO. 2023110328), OF

AN AMENDED AND RESTATED DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND ONTARIO RANCH HOTELS, LLC. FOR THE DEVELOPMENT OF A HOTEL FEATURING 226-GUEST ROOMS AT THE SOUTHEAST CORNER OF EAST RIVERSIDE DRIVE AND ONTARIO AVENUE.

That the City Council adopt a Resolution ﬁnding the redevelopment, improvement and continued operation of the Ontario Airport Hotel & Conference center, located at 700 North Haven Avenue, Ontario, San Bernardino county, California 91764 by Core Hotel Venture, LLC, National Community Renaissance of California (“national core”) and/or an aﬃliate of National Core will lessen the City’s burdens, will further the goals and purposes of the City, and is in the common interest of the City and its residents); making certain CEQA ﬁndings in connection therewith.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FINDING THE CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 12

ATTACHMENT:

National_CORE_-_Proposed_City_Resolution_4898-4643-6486_v.2-c1- Planning_Ceqa_RM.docx

REDEVELOPMENT, IMPROVEMENT AND CONTINUED OPERATION OF THE ONTARIO AIRPORT HOTEL & CONFERENCE CENTER, LOCATED AT 700 NORTH HAVEN AVENUE, ONTARIO, SAN BERNARDINO COUNTY, CALIFORNIA 91764 BY CORE HOTEL VENTURE, LLC, NATIONAL COMMUNITY RENAISSANCE OF CALIFORNIA (“NATIONAL CORE”) AND/OR AN AFFILIATE OF NATIONAL CORE WILL LESSEN THE CITY’S BURDENS, WILL FURTHER THE GOALS AND PURPOSES OF THE CITY, AND IS IN THE COMMON INTEREST OF THE CITY AND ITS RESIDENTS); MAKING CERTAIN CEQA FINDINGS IN CONNECTION THEREWITH.

STAFF MATTERS

City Manager Ochoa

COUNCIL MATTERS

Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
Council Member Porada
Council Member Macias

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 13

Page 1 of 2 ends

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) January 20, 2026

ROLL CALL: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __

In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

 GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN: 0113-281-13 and 0113-281-15; 2400 East Philadelphia Street and 2325 East Riverside Drive; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: City of Upland; Under negotiation: Price and terms of payment.

No Reportable Action Continue Approved

/ / / / / /

Disposition: _________________________________________________________________

In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

 GC 54956.8, CONFERENCE WITH REAL PROPERTY NEGOTIATORS Property: APN: 0110-322-08, 0110-322-17, 0110-322-18, 0110-322-21, 0110-322-22, 0110-322-29, 0110-322-30,0110-322-31; 2501-2653 East Guasti Road and 217-219 North Archibald Avenue; City/Authority negotiator: Scott Ochoa or his designee; Negotiating parties: M-K Associates and Mission Plaza Properties, Inc.; Under negotiation: Price and terms of payment.

No Reportable Action Continue Approved

/ / / / / /

Disposition: _________________________________________________________________

14 2 of 2

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) January 20, 2026
(Continued)

ROLL CALL: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __

In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

 GC 54956.95, CONFERENCE WITH LEGAL COUNSEL
San Bernardino Workers' Compensation Appeals Board, EAMS Case No.

ADJ11152576
No Reportable Action Continue Approved

/ / / / / /

Disposition: _________________________________________________________________

In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

 GC 54956.9(d)(1) CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION Unite Here Local 11 v. City of Ontario, Case No. CIVSB2514995

No Reportable Action Continue Approved

/ / / / / /

Disposition: _________________________________________________________________

Reported by:

___________________________________________
City Attorney / City Manager / Executive Director
15 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY/

MINUTES
DECEMBER 2, 2025
(Not Official Until Approved)
(Not Official U
Official Until Approved)

JOINT MEETINGS

The regular meetings of the Ontario City Counci l and Housing Authority were held on Tuesday, December 2, 2025, at Ontario City Hall, 303 E. B Street Ontario, California.

OPEN MEETING CALLED TO ORDER

Mayor Leon called the joint meetings to order at 6:03 p.m.

ROLL CALL

PRESENT: Mayor/Chairman: Paul S. Leon
Mayor pro Tem/Vice Chair: Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Porada, and Daisy Macias

ABSENT: Council/Authority Members: None

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

INFORMATION RELATIVE TO POSSIBLE CONFLICTS OF INTEREST

Mayor pro Tem Wapner announced a conflict with a portion of Item No. 10.

CLOSED SESSION

Mayor Leon inquired whether persons were present who wished to speak to the Closed Session items. Hearing no one, City Attorney Duran announced the matters for discussion as listed on the agenda, noting his request to remove one of the listed items:

GC 54956.9 (d) (1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION:

Robles, et al. v. City of Ontario et al., Case No. CIVDS2007038

The item was removed and Mayor Leon recessed to Closed Session at 6:0 6 p.m. to consider the following:

GC 54956.9 (d) (1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION:

David Villalobos: D.V., a minor by and through is GAL Griselda Viera v. City of Ontario, United States District Court, Los Angeles, Case No. 5:25-cv-00384-CV-SHK

16 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 2 of 10 ends

GC 54956.9 (d) (1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION:

Princessa Kemp; Estate of Kirk Kemp, by and thru its successor -in-Interest, Princessa Kemp; Jonathan Kemp, et al v. City of Ontario, Ontario Police Department, County of San Bernardino and Does 1-25, Inclusive; location, Case No. 2PSCV02059

OPEN MEETING CALLED TO ORDER

Mayor Leon reconvened the meetings at 6:35 p.m. for the regular session.

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Mayor pro Tem Wapner.

INVOCATION

Invocation was led by Maribel Zacapa from Iglesia de Dios de la Profecia.

REPORT ON CLOSED SESSION

City Attorney Duran announced there was no reportable action and confirmed the removed item was not discussed.

PUBLIC COMMENT

Assistant City Clerk Isbell announced one written comment:

Anthony Pace, regarding traffic concerns.

Mayor Leon called upon the first speaker:

Nancy Bumstead, spoke regarding the Mural Fest and recognized Council Member Porada and the owners of local business Holt x Palm for their work on the event.

Roxanna Gracia, spoke regarding the Wellness Center and extended an invitation to upcoming holiday events on behalf of Assemblymember Michelle Rodriguez.

Loree Masonis, spoke regarding sanctuary jurisdictions.

Kizzee, spoke regarding the Wellness Center and community concerns.

Robert Vivar, spoke regarding Immigration and Customs Enforcement concerns.

Brandy Rodriguez, read a bible excerpt.

Marty McBride, spoke regarding the Next Era energy storage facility.

AGENDA REVIEW/ANNOUNCEMENTS

City Manager Ochoa had no announcements.

CONSENT CALENDAR

MOTION: Moved by Council Member Porada, seconded by Council Member Macias and carried by a unanimous vote of 5-0, to approve the consent calendar as presented.

17 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 3 of 10 ends

1. BILLS & PAYROLL

Approved B ills October 31, 2025 through November 13, 2025, in the amount of $29,428,228.33 and Payroll October 19, 2025 , through November 1, 2025 , in the amount of $6,207.857.48.

2. RESOLUTIONS UPDATING AUTHORIZED DEPUTY CITY TREASURERS AND

THE UPDATED INVESTMENT POLICY

The City Council adopt ed Resolutions rescinding Resolution Nos. 2024 -202 and 2024-203 and amended the list of Deputy City Treasurers authorized to invest City funds in the Local Agency Investment Fund (LAIF) and other eligible in vestment securities, and approved the update to the City of Ontario's Investment Policy.

RESOLUTION NO. 2025-171 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, PROVIDING FOR THE INVESTMENT OF

INACTIVE FUNDS IN THE LOCAL AGENCY INVESTMENT FUND OF THE

CALIFORNIA STATE TREASURY AND HEREBY RESCINDING RESOLUTION NO. 2024-202.

RESOLUTION NO. 2025-172 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE INVESTMENT OF CITY FUNDS AND HEREBY RESCINDING RESOLUTION NO. 2024-203.

3. A RESOLUTION DECLARING CITY OWNED PROPERTY SURPLUS LAND PURSUANT TO GOVERNMENT CODE 54221, APPROVING THE NOTICE OF

AVAILABILITY, AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT

The City Council adopted a Resolution declaring the property located at a portion of 4000 East Ontario Center (Lot E) and 3737 East Concours Street (Lot H) identified with Assessor’s Parcel Numbers 210 -205-20 and 210 -204-36 as surplus land, approving the Notice of Availability, finding that such declaration is exempt from the California Environmental Quality Act pursuant to Section 15060(C)(3) of the State CEQA Guidelines and directed Staﬀ to issue a Notice of Exemption.

RESOLUTION NO. 2025-173 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, MAKING FINDINGS AND DECLARING, PURSUANT TO GOVERNMENT CODE SECTION 54221, THAT CERTAIN REAL PROPERTY LOCATED AT A PORTION OF 4000 E. ONTARIO CENTER (LOT E) AND 3737 E. CONCOURS STREET (LO T H), IDENTIFIED WITH ASSESSOR'S PARCEL NUMBERS 210 -205-20 AND 210 -204-36, IS SURPLUS LAND,

APPROVING THE NOTICE OF AVAILABILITY THEREFORE, AUTHORIZING THE

CITY MANAGER TO COMPLY WITH THE SURPLUS LAND ACT AND TAKING

RELATED ACTIONS, FINDING THAT SUCH DECLA RATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15060(C)(3) OF THE STATE CEQA 18 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 4 of 10 ends

GUIDELINES AND DIRECTING STAFF TO ISSUE A NOTICE OF EXEMPTION.

4. A RESOLUTION DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE C ITY IS EXEMPT SURPLUS

LAND, AND FINDING THAT SUCH DECLARATION IS NOT A PROJECT

SUBJECT TO ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT

The City Council adopted a Resolution declaring the property located at 315 -325 West D Street identified with Assessor’s Parcel Numbers 1048 -576-01 through 1048-576-02, as exempt surplus land and f inding that such declaration is not a project subject environmental review under the California Environmental Quality Act.

RESOLUTION NO. 2025-174 A RESOLUTION OF THE CITY COUNCIL OF CITY

OF ONTARIO, CALIFORNIA DECLARING PURSUANT TO GOVERNMENT CODE SECTION 54221 THAT REAL PROPERTY OWNED BY THE CITY COMMONLY REFERRED TO AS 315 -325 WEST D STREET (APNS 1048 -576-01 THROUGH 1048-576-02) IS EXEMPT SURPLUS LAND, AND FINDING THAT SUCH

DECLARATION IS NOT A PROJECT SUBJECT TO ENVIRONMENTAL REVIEW

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

5. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH

KIDMAN GAGEN LAW, LLP, FOR CONSULTING AND LEGAL SERVICES

The City Council authorize d the City Manager, or his designee, to execute Amendment No. 1 to the Professional Services Agreement with Kidman Gagen Law, LLP, of Irvine, California, for consulting and legal services in the amount of $150,000 for a total not-to-exceed amount of $300,000.

6. AN AMENDMENT TO THE GOODS AND SERVICES AGREEMENT WITH INFO -

COM BUSINESS PRODUCTS FOR THE PURCHASE AND INSTALLATION OF

VARIOUS INFORMATION TECHNOLOGY AND FIELD EQUIPMENT FOR THE

PROFESSIONAL BASEBALL STADIUM PROJECT

The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute Amendment No. 1 to the Goods and Services Agreement with Margaret C. Pett, Inc. DBA Info-Com Business Products (Info -Com), of Altadena, California, for the purchase and installation of various Information Technology (IT) and field equipment for the Professional Baseball Stadium project in the amount of $10,567,226 for a total contract amount of $13,505,373 plus a 5% contingency of $528,361 for a total not-to-exceed contract amount of $14,327,549, which includes a previously approved contingency amount of $293,815; and
B. Authorized the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but not limited to, agreements, assessments, easements, reducti on of retention accounts, 19 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 5 of 10 ends

contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction-related activities.

PUBLIC HEARINGS

7. A PUBLIC HEARING TO CONSIDER AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT FOR A GENERAL PLAN AMENDMENT (FILE NO. PGPA25 -001) TO THE ONTARIO PLAN 2050 (TECHNICAL AMENDMENT)

The City Council conducted a public hearing and approved:

A. An Addendum to The Ontario Plan (TOP) 2050 Supplemental Environmental Impact Report (State Clearinghouse No. 2021070364), certified by the City Council on August 16, 2022; and
B. The General Plan Amendment (File No. PGPA25-001), a Technical Amendment to The Ontario Plan (TOP) 2050.

RESOLUTION NO. 2025-175 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, APPROVING AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL REPORT, PURSUANT

TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO. PGPA25-001.

RESOLUTION NO. 2025-176 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PGPA25 -001 A GENERAL PLAN AMENDMENT TO THE ONTARIO PLAN 2050 POLICY PLAN (GENERAL PLAN) INVOLVING THE MOBILITY , SAFETY , ENVIRONMENTAL RESOURCES, AND PARKS & RECREATION ELEMENTS. THE AMENDMENT WOULD: [1] UPDATE THE MOBILITY ELEMENT TO REVISE TRUCK ROUTE DESIGNATIONS A ND ADD EVACUATION -RELATED POLICIES; [2] CONFIRM

THAT EXISTING POLICY PLAN POLICIES SATISFY REQUIREMENTS FOR

EQUITABLE ACCESS TO OPEN SPACE, CLIMATE RESILIENCE, AND REWILDING OPPORTUNITIES; [3] UPDATE THE SAFETY ELEMENT TO INCORPORATE THE 2023 LOCAL HAZARD MITIGATION PLAN AND 2024

EVACUATION ASSESSMENT, ADD EVACUATION AND EXTREME HEAT
POLICIES, AND UPDATE HAZARD MAPPING; AND [4] UPDATE THE

ENVIRONMENTAL RESOURCES ELEMENT TO REFINE IDENTIFICATION OF

ENVIRONMENTAL JUSTICE AREAS AND UPDATE THE PARKS & RECREATION

ELEMENT TO REFLECT THE ONTARIO SPORTS EMPIRE AND MAKING FINDINGS IN SUPPORT THEREOF — CITYWIDE. (SEE ATTACHMENTS 1 AND 2) (PART OF CYCLE 2 FOR THE 2025 CALENDAR YEAR).

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item 20 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 6 of 10 ends

for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada, and carried by a unanimous vote of 5 -0, to adopt Resolution Nos. 2025 -175 and 2025- 176.

8. INTRODUCTION OF ORDINANCES ADOPTING THE 2025 CALIFORNIA

BUILDING STANDARDS CODE AND LOCAL AMENDMENTS

The City Council conducted a public hearing and took the following actions:

A. Introduced and waived further reading of an Ordinance amending Chapter 4 of Title 4 of the Ontario Municipal Code, adopting by reference with certain amendments, the 2025 California Fire Code and the 2024 International Fire Code;
B. Introduced and waived further reading of an Ordinance amending Chapters 1, 2, 3, 4, 5, 6 , 7, 10, 11, 12, and 14 of title 8 of the Ontario Municipal Code, adopting by reference the 2025 Edition of the California Building Standards Code;
C. Set a public hearing for January 20, 2026 regarding the proposed Ordinances.

ORDINANCE NO. 3320 (FIRST READ ING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTER 4 OF TITLE 4 OF THE ONTARIO MUNICIPAL CODE; ADOPTING BY REFERENCE

WITH CERTAIN AMENDMENTS, ADDITIONS, DELETIONS, AND CHANGES THERETO, THE 2025 CALIFORNIA FIRE CODE AND THE 2024 INTERNATIONAL FIRE CODE.

ORDINANCE NO. 3321 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING CHAPTERS 1, 2, 3, 4, 5, 6, 7, 10, 11, 12, AND 14 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE, ADOPTING BY REF ERENCE THE 2025 EDITION OF THE CALIFORNIA BUILDING STANDARDS CODE, INCORPORATING THE 2025 CALIFORNIA ADMINISTRATIVE CODE, THE 2025 CALIFORNIA BUILDING CODE, THE 2025 CALIFORNIA MECHANICAL CODE, THE 1997 CALIFORNIA HOUSING CODE, THE 2025 CALIFORNIA ELECTRIC AL CODE, THE 2025 CALIFORNIA RESIDENTIAL CODE, THE 2025 CALIFORNIA PLUMBING CODE, THE 2025 CALIFORNIA ENERGY CODE, THE 2024 INTERNATIONAL PROPERTY MAINTENANCE CODE, THE 2025 CALIFORNIA GREEN BUILDING STANDARDS CODE, THE 2025 HISTORIC BUILDING CODE, 2025 CA LIFORNIA EXISTING BUILDING CODE, AND THE 2025 CALIFORNIA REFERENCED STANDARDS, TOGETHER WITH CERTAIN AMENDMENTS THERETO.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item 21 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 7 of 10 ends

for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Macias, and carried by a unanimous vote of 5-0, to introduce Ordinance Nos. 3320 and 3321.

MOTION: Moved by Council Member Bowman, seconded by Council Member Macias, and carried by a unanimous vote of 5 -0, to set a public hearing for January 20, 2026, regarding the proposed Ordinances.

9. A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION OF

NECESSITY OF THE CITY OF ONTARIO PURSUANT TO THE ONTARIO CENTER SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT 88 -2 (STATE CLEARINGHOUSE #80062538) FOR THE ACQUISITION BY EMINENT DOMAIN

OF A FEE SIMPLE INTEREST IN CERTAIN REAL PROPERTY LOCATED AT

THE SOUTHWEST CORNER OF EAST CONCOURS STREET AND MERCEDES

LANE, IN THE CITY OF ONTARIO, COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA AND MORE PARTICULARLY DESCRIBED AS ASSESSOR'S PARCEL NUMBER 0210-204-04, FOR THE PUBLIC PARKING FACILITIES FOR

THE TOYOTA ARENA PROJECT, IN ONTARIO, CALIFORNIA

The City Council conducted a public hearing and took the following actions:

A. Considered adopting, pursuant to the Ontario Center Specific Plan Environmental Impact Report 88 -2 (State Clearinghouse #80062538), a Resolution of Necessity for the City of Ontario ’s public parking facilities for the Toyota Arena Project and provide d each party with an inter est in the aﬀected property, their attorneys or representatives an opportunity to be heard on the issues relevant to the Resolution of Necessity.

B. Made the following findings:
i. The public interest and necessity require the proposed project. ii. The project is planned or located in a manner that will be most compatible with the greatest public good and the least private injury. iii. The real property to be acquired is necessary for the project. iv. The offers of just compensation have been made to the property owners.

C. Adopted a Resolution of Necessity declaring that the acquisition by eminent domain of a fee simple interest in certain real property located at the southeast corner of East Concours Street and Mercedes Lane, more particularly described as Assessor’s Parcel Number 0210-204-04 (the "Property”) is necessary for the public parking facilities for the Toyota Arena Project in Ontario, California (the “Project”).

RESOLUTION NO. 2025-177 A RESOLUTION OF NECESSITY OF THE COUNCIL

OF THE CITY OF ONTARIO, CALIFORNIA, P URSUANT TO THE ONTARIO CENTER SPECIFIC PLAN ENVIRONMENTAL IMPACT REPORT 88 -2 (STATE 22 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 8 of 10 ends

CLEARINGHOUSE #80062538) FOR THE ACQUISITION BY EMINENT DOMAIN

OF A FEE SIMPLE INTEREST IN CERTAIN REAL PROPERTY LOCATED AT THE

SOUTHWEST CORNER OF EAST CONCOURS STREET AND MERCEDES LANE,

IN THE CITY OF ONTARIO, COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA AND MORE PARTICULARLY DESCRIBED AS ASSESSOR'S PARCEL NUMBER 0210-204-04, FOR THE PUBLIC PARKING FACILITIES FOR THE TOYOTA ARENA PROJECT, IN ONTARIO, CALIFORNIA.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department and affected property owners have been notified .

There were no written communications.

Mayor Leon called on Legal Counsel, Guillermo Frias to provide background information.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Mayor pro Tem Wapner, seconded by Council Member Macias, and carried by a unanimous vote of 5-0, to adopt Resolution No. 2025-177.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION

10. A CONSTRUCTION CONTRACT WITH CLARK CONSTRUCTION GROUP -

CALIFORNIA, LP AND A CONSTRUCTION CONTRACT WITH WEST COAST

ARBORISTS FOR THE PURCHASE, INSTALLATION, AND GPS LOCATION OF THE TREES FOR THE GRAND PARK PHASE 1 PROJECT

Mayor pro Tem Wapner recused himself from voting on Item No. 10 B and C.

Mayor Leon called upon City Manager Ochoa to provide a presentation on the Grand Park. There were no written communications.

The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute Construction Contract D&C21-005 Grand Park Phase 1 with Clark Construction Group – California, LP, of Costa Mesa, California, for the construction of the Grand Park Phase 1 project in the amount of $107,900,000 plus contingency of $16,000,000 for a total not - to-exceed contract amount of $123,900,000; and
B. Authorized the City Manager, or his designee, to execute Construction Contract D&C21-005 Grand Park Phase 1 - Trees with West Coast Arborists, Inc., of Ontario, California, for the purchase, installation, and GPS inventory of over 4,500 trees for the Grand Park Phase 1 Pro ject in the amount of $4,433,460 plus a 5% contingency of $221,673 for a total not-to-exceed contract amount of $4,655,133; and
C. Authorized the City Manager, or his designee, to execute all documents required for the completion of the project, which may inc lude, but not limited to, 23 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 9 of 10 ends

agreements, assessments, easements, reduction of retention accounts, contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction-related activities.

MOTION: Moved by Council Member Bowman, seconded by Council Member Macias, and carried by a unanimous vote of 5-0, to authorize City Manager, or his designee, to execute a contract with Clark Construction Group – California, LP, for the construction of the Grand Park Phase 1 project in the amount of $107,900,000 plus contingency of $16,000,000 for a total not-to-exceed contract amount of $123,900,000.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada, and carried by a vote of 4-0, with Mayor pro Tem Wapner recused due to a declared conflict of interest, to authorize the City Manager, or his designee, to execute a contract with West Coast Arborists, Inc., for the purchase, installation, and GPS inventory of over 4,500 trees for the Grand P ark Phase 1 Project in the amount of $4,433,460 plus a contingency of $221,673 for a total not-to-exceed contract amount of $4,655,133; and to execute all documents required for the completion of the Grand Park Phase 1 project.

STAFF MATTERS

City Manager Ochoa had no updates.

COUNCIL MATTERS

Council Member Macias requested that a Staff recommendation be brought back to Council for consideration at a future meeting regarding Jay Littleton Ball Park.

Council Member Porada also requested a Staff recommendation regarding Jay Littleton ball park and encouraged residents to utilize the My Ontario mobile application.

Mayor pro Tem Wapner was consensus with a Staff recommendation regarding Jay Littleton Ball Park.

Council Member Bowman agreed with a Staff recommendation regarding Jay Littleton Ball Park.

Mayor Leon announced holiday events.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 7:27 p.m. and announced the next regular meeting was scheduled for December 16, 2025.

Respectfully submitted,

24 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 2, 2025

Page 10 of 10 ends

____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY

APPROVED:

_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
25 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY/

ONTARIO PUBLIC FINANCING AUTHORITY

MINUTES
DECEMBER 16, 2025
(Not Official Until Approved)
(Not Official U
Official Until Approved)

JOINT MEETINGS

The regular meetings of the Ontario City Council, Housing Authority, and Public Financing Authority were held on Tuesday, December 16, 2025, at Ontario City Hall, 303 E. B Street Ontario, California.

OPEN MEETING CALLED TO ORDER

Mayor Leon called the joint meetings to order at 6:01 p.m.

ROLL CALL

PRESENT: Mayor/Chairman: Paul S. Leon
Mayor pro Tem/Vice Chair: Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Porada, and Daisy Macias

ABSENT: Council/Authority Members: None

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

INFORMATION RELATIVE TO POSSIBLE CONFLICTS OF INTEREST

There were no conflicts of interest reported.

CLOSED SESSION

Mayor Leon inquired whether persons were present who wished to speak to the Closed Session items. Hearing no one, City Attorney Duran announced the matter for discussion as listed on the agenda. Mayor Leon recessed to Closed Session at 6:02 p.m.

GC 54956.9 (d)(4) CONFERENCE WITH LEGAL COUNCIL – ANTICIPATED LITIGATION One Case

OPEN MEETING CALLED TO ORDER
Mayor Leon reconvened the meetings at 6:31 p.m. for the regular session.

26 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 2 of 14 ends

PLEDGE OF ALLEGIANCE

The Pledge of Allegiance was led by Council Member Bowman.

INVOCATION

Invocation was led by Pastor Sean, from Calvary Chapel Ontario.

REPORT ON CLOSED SESSION

City Attorney Duran announced there was no reportable action.

PUBLIC COMMENT

Assistant City Clerk Isbell announced there were written communications:

Rucha Bhave, regarding air quality concerns.

Randall Macias Ceniceros, regarding Safe Routes to School.

Mayor Leon called upon the first speaker:

Ramiro Hurtado, spoke regarding community improvement concerns and a neighbor dispute.

Carlos Chavez, spoke regarding his interaction s with the Community Improvement Department.

William Villareal, spoke regarding space limitations for Ontario Eastern Little League.

Louie Lopez, wished everyone happy holidays and delivered a personal message.

AGENDA REVIEW/ANNOUNCEMENTS

City Manager Ochoa had no announcements.

CONSENT CALENDAR

Public Comment:

Mayor Leon called upon the speaker:

Tommy Mushegain, was not present.

Council Member Porada commented regarding Item No. 9, regarding focusing on specific types of citations, citywide.

MOTION: Moved by Council Member Macias, seconded by Council Member Porada and carried by a unanimous vote of 5-0, to approve the consent calendar as presented.

1. APPROVAL OF MINUTES

Approved minutes for the regular meetings of the City Council and Housing Authority of November 4, 2025, and regular meetings of the City Council, Housing Authority and Ontario Public Financing authority of November 18, 2025, approving same as on file in the Records Management Department.
27 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

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2. BILLS & PAYROLL

Approved Bills November 14, 2025 through November 26, 2025, in the amount of $45,248,903.54 and Payroll November 2, 2025 through November 15, 2025 , in the amount of $7,859,016.12.

3. A RESOLUTION DECLARING CITY OWNED PROPERTY SURPLUS LAND PURSUANT TO GOVERNMENT CODE 54221, APPROVING THE N OTICE OF

AVAILABILITY, AND FINDING THAT SUCH DECLARATION IS EXEMPT FROM

ENVIRONMENTAL REVIEW UNDER THE CALIFORNIA ENVIRONMENTAL

QUALITY ACT

The City Council adopt ed a Resolution declaring the property located North of Phillips Street and West of South Mountain Avenue and North of Philadelphia Street and West of Wineville Avenue identified with Assessor’s Parcel Numbers 101 -157- 114 and 238 -152-27, approve the Notice o f Availability, and finding that such declaration is exempt from the California Environmental Quality Act.

RESOLUTION NO. 2025-178 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, MAKING FINDINGS AND DECLARING, PURSUANT TO GOVERNMENT C ODE SECTION 54221, THAT CERTAIN REAL

PROPERTY LOCATED NORTH OF PHILLIPS STREET AND WEST OF SOUTH

MOUNTAIN AVENUE AND NORTH OF PHILADELPHIA STREET AND WEST OF WINEVILLE AVENUE, IDENTIFIED WITH ASSESSOR'S PARCEL NUMBERS 101- 157-114 AND 238 -152-27, IS SURPLUS LAND, APPROVING THE NOTICE OF

AVAILABILITY THEREFORE, AUTHORIZING THE CITY MANAGER TO COMPLY

WITH THE SURPLUS LAND ACT AND TAKING RELATED ACTIONS, FINDING

THAT SUCH DECLARATION IS EXEMPT FROM ENVIRONMENTAL REVIEW

UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO SECTION 15060(C)(3) OF THE STATE CEQA GUIDELINES AND DIRECTING STAFF TO ISSUE A NOTICE OF EXEMPTION.

4. A DESIGN SERVICES AGREEMENT WITH N2W ENGINEERING INC. FOR MILLIKEN BOOSTER STATION PROJECT, CONTRACT NO. UT1083
The City Council authoriz ed the City Manager, or designee, to execute a Design Services Agreement with N2W Engineering Inc., of Irvine, California for design services for Milliken Booster Station for an amount of $365,166, plus a 15% contingency of $54,775, for a total not-to-exceed amount of $419,941, and a term of December 16, 2025 to December 16, 2028 with two optional one -year term extensions.

5. A CONSTRUCTION CONTRACT WITH WAKECO, INC. FOR THE ONTARIO

POLICE DEPARTMENT MEDIA ROOM PROJECT
The City Council took the following actions:
28 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

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A. Authorized the City Manager, or his designee, to execute Construction Contract No. D&C23 -017 with Wakeco, Inc., of Temecula, California, for the Ontario Police Department (OPD) Media Room project in the amount of $1,497,000 plus a 10% contingency of $149,700 for a total not -to-exceed contract amount of $1,646,700; and
B. Authorized the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but not limited to, agreements, assessments, easement s, reduction of retention accounts, contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction-related activities.

6. AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH AMERICAN THREAT AS SESSMENT CONSULTING, INC. FOR SECURITY

CAMERA INSTALLATION AT THE LATIMER BALLFIELD CONCESSION STAND

IN JOHN GALVIN PARK

The City Council authorize d the City Manager, or his designee, to execute Amendment No. 11 to the Maintenance Services Agreement with American Threat Assessment Consulting, Inc. (A.T.A.C.), of Rancho Cucamonga, California, in the amount of $29,533 for security camera installation at the Latimer Ballfield Concession Stand, for a total not-to-exceed contract amount of $2,564,892.

7. AN AMEND MENT TO THE MAINTENANCE SERVICES AGREEMENT WITH

WESTERN ALLIED CORPORATION FOR ON -CALL HEATING, VENTILATION,

AND AIR CONDITIONING (HVAC) MAINTENANCE AND REPAIR SERVICES

The City Council authorize d the City Manager, or his designee, to execute Amendment No . 4 to the Maintenance Services Agreement with Western Allied Corporation, of Santa Fe Springs, California, in the amount of $628,000 for on -call heating, ventilation, and air conditioning (HVAC) maintenance and repair services, for a total not-to-exceed contract amount of $3,388,000.

8. AN AMENDMENT TO THE DESIGN SERVICES AGREEMENT FOR ON -CALL

ARCHITECTURAL AND ENGINEERING SERVICES WITH HMC GROUP AND AN

AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH

TILDEN-COIL CONSTRUCTORS FOR CONSTRUCTION MANAGEMENT MULTI-

PRIME SERVICES FOR THE ONTARIO PROFESSIONAL BASEBALL STADIUM

FLIGHT TOWER RESTAURANT PROJECT
The City Council took the following actions:

A. Authorized the City Manager, or his designee, to execute Amendment No. 4 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide Architectural and Engineering Services for the Ontario Professional Baseball Stadium Flight Tower Restaurant project in the amount of $3,241,200 for a total-not-to-exceed contract amount of $9,946,127; and 29 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

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B. Authorized the City Manager, or his designee, to execute Amendment No. 7 to the Professional Services Agreement with Tilden -Coil Constructors, Inc., of Riverside, California, to provide Construction Management Multi -Prime Services for all facets of the Ontario Profe ssional Baseball Stadium Flight Tower Restaurant project in the amount of $2,360,715 for a total not-to-exceed contract amount of $73,629,018.

9. AWARD OF A PROFESSIONAL SERVICES AGREEMENT FOR CITY PARKING

ENFORCEMENT SERVICES
The City Council took the following actions:

A. Rejected the bid protest submitted by Universal Protection Service, LP, dba Allied Universal Security Services and LAZ Parking California, LLC on account of both proposals were disqualified and the protests submitted are without merit; and
B. Executed a Professional Services Agreement for up to five years with ACE Parking III, LLC of San Diego, California for parking enforcement services for a not-to-exceed contract amount of $9,523,369.

10. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT W ITH

UNIVERSAL PROTECTION SERVICES, LP, DBA ALLIED UNIVERSAL

SERVICES FOR PARKING ENFORCEMENT SERVICES

The City Council authorize d the City Manager or his designee to execute Amendment No. 5 to the Professional Services Agreement with Universal Protection Services, LP, dba Allied Universal Services of Irvine, CA to extend term dates and increase the funding for a total not-to-exceed amount of $4,005,714.

PUBLIC HEARINGS

11. A PUBLIC HEARING TO CONSIDER A MILLS ACT CONTRACT
(PRESERVATION AGREEMENT), FILE NO. PHP25 -015, FOR A LOCAL

DESIGNATED HISTORIC PROPERTY

The City Council adopted a Resolution authorizing the City Manager or designee to enter into a Mills Act Contract (Preservation Agreement), for the local designated historic property located at 214 East Rosewood Court (APN: 1048 -062-08); submitted by Octavio Pinedo.

RESOLUTION NO. 2025-179 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PHP25 -015, AND

AUTHORIZING THE CITY OF ONTARIO TO ENTER INTO A HISTORIC

PROPERTY PRESERVATION AGREEMENT (MILLS ACT CONTRACT) WITH

OCTAVIO PINEDO AND ALMA LUZ HERNANDEZ TOVAR, FOR THE PROPERTY LOCATED AT 214 EAST ROSEWOOD COURT (APN: 1048-062-08).
30 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

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Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Me mber Porada, and carried by a unanimous vote of 5-0, to adopt Resolution No. 2025-179.

12. RESOLUTIONS AUTHORIZING THE ISSUANCE OF LEASE REVENUE BONDS, SERIES 2026 AND RELATED MATTERS

The City Council and the Ontario Public Financing Authority held a public hearing and took the following actions:

A. The City Council adopted a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Agreement, and Continuing Disclosure Certificate in connection with the issuance and sale of the Lease Revenue Bonds by the Ontario Public Financing Authority in an aggregate principal amount of not to exceed $202 million and authorizing the distribution of an Oﬃcial Statement in connection with the oﬀering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.

B. The Ontario Public Financing Authority adopted a Resolution authorizing the execution and delivery of a Ground Lease, Lease Agreement, Indenture, Bond Purchase Ag reement, and Assignment Agreement in connection with the issuance and sale of its Lease Revenue Bonds in an aggregate principal amount of not to exceed $202 million and authorizing the distribution of an Oﬃcial Statement in connection with the oﬀering and sale of the Bonds and authorizing the execution and delivery of necessary documents in connection therewith.

RESOLUTION NO. 2025-180 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE EXECUTION AND

DELIVERY OF A GROUND LE ASE, LEASE AGREEMENT, INDENTURE, BOND

PURCHASE CONTRACT AND CONTINUING DISCLOSURE CERTIFICATE IN

CONNECTION WITH THE ISSUANCE OF ONTARIO PUBLIC FINANCING

AUTHORITY LEASE REVENUE BONDS, APPROVING THE ISSUANCE OF SUCH

BONDS IN ONE OR MORE SERIES IN AN AGGREG ATE PRINCIPAL AMOUNT OF NOT TO EXCEED $202,000,000, AUTHORIZING THE DISTRIBUTION OF AN

OFFICIAL STATEMENT IN CONNECTION WITH THE OFFERING AND SALE OF

SUCH BONDS AND AUTHORIZING THE EXECUTION OF NECESSARY
DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

RESOLUTION NO. OPFA-015 A RESOLUTION OF THE ONTARIO PUBLIC

FINANCING AUTHORITY AUTHORIZING THE EXECUTION AND DELIVERY BY 31 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

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THE AUTHORITY OF A GROUND LEASE, LEASE AGREEMENT, INDENTURE,

BOND PURCHASE CONTRACT AND ASSIGNMENT AGREEMENT IN

CONNECTION WITH THE ISSUANCE OF ONTARIO PUBLIC FINANCING

AUTHORITY LEASE REVENUE BONDS, AUTHORIZING THE ISSUANCE OF

SUCH BONDS IN ONE OR MORE SERIES IN AN AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $202,000,000, AUTHORIZING THE

DISTRIBUTION OF AN OFFICIAL STATEMENT IN CONNEC TION WITH THE

OFFERING AND SALE OF SUCH BONDS AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED ACTIONS.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council/Board Member Porada, seconded by Council Board/Member Bowman, and carried by a unanimous vote of 5 -0, to adopt Resolution Nos. 2025-180 and OPFA-015.

13. A PUBLIC HEARING TO CONSIDER A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA25 -003, REVISING AND CLARIFYING CERTAIN PROVISIONS

OF THE CITY OF ONTARIO DEVELOPMENT CODE

The City Council introduced and waived further reading of an Ordinance approving File No. PDCA25 -003, a Development Code Amendment revising and clarifying certain provisions of Chapters 2.0 (Administration and Procedures), 4.0 (Permits, Actions, and Decisions), 5.0 (Zoning and Land Use), 6.0 (Development and Subdivision Regulations), 7.0 (Historic Preservation), 8.0 (Sign Regulations), and References (Reference G: Landscape Design and Co nstruction Guidelines) of the City of Ontario Development Code.

ORDINANCE NO. 3322 (FIRST READING) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO.

PDCA25-003, A DEVELOPMENT CODE AMENDMENT REVISING AND
CLARIFYING CER TAIN PROVISIONS OF CHAPTERS 2.0 (ADMINISTRATION AND PROCEDURES), 4.0 (PERMITS, ACTIONS, AND DECISIONS), 5.0 (ZONING AND LAND USE), 6.0 (DEVELOPMENT AND SUBDIVISION REGULATIONS), 7.0 (HISTORIC PRESERVATION), 8.0 (SIGN REGULATIONS), AND REFERENCES (REFERENCE G: LANDSCAPE DESIGN AND CONSTRUCTION GUIDELINES)

OF THE CITY OF ONTARIO DEVELOPMENT CODE, AND MAKING FINDINGS IN SUPPORT THEREOF.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There was one written communication in opposition 32 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 8 of 14 ends

to the item, from Jordan Sisson.

City Attorney Duran announced proposed additions to page ten of the Ordinance. The updated material was made available to Council and the public for review.

Mayor Leon opened the public hearing and called on the speakers:

Jordan Sisson, spoke in opposition.

Juan Munoz, spoke in opposition.

Hearing no one else, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada, and carried by a unanimous vote of 5-0, to introduce Ordinance No. 3322.

14. A PUBLIC HEARING TO CONSIDER AN URGENCY

ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT,
FILE NO PDCA25 -004, REGARDING ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS

The City Council waive d further reading and adopt ed an Urgency Ordinance approving File No. PDCA25-004, to amend Division 5.03 - Supplemental Land Use Regulations, Section 5.03.010 (Accessory Dwelling Units) of the City's Development Code to comply with recent changes to state law that impose new limits on local authority to regulate Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs), which will take effect on January 1, 2026.

ORDINANCE NO. 3323 AN URGENCY ORDINANCE OF THE CITY COUNCIL OF

THE CITY OF ONTARIO, CALIFORNIA, APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA25 -004, AMENDING DIVISION 5.03 - SUPPLEMENTAL LAND USE REGULATIONS, SECTION 5.03.010 OF THE CITY'S

DEVELOPMENT CODE RELATING TO ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS TO COMPLY WITH THE RECENT

CHANGES IN STATE LAW, AND FINDING THE ACTION TO BE STATUTORILY

EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE SECTION
21080.17.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada, and carried by a unanimous vote of 5-0, to adopt Urgency Ordinance No. 3323. 33 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 9 of 14 ends

15. A PUBLIC HEARING TO CONSIDER ADOPTION OF ORDINANCES ADDING CHANGES TO CHAPTERS 18 AND 19 OF TITLE 8 OF THE ONTARIO

MUNICIPAL CODE AND A RESOLUTION AUTHORIZING THE BUILDING

OFFICIAL TO WAIVE CITY BUILDING DEPARTMENT PERMIT FEES

PERTAINING TO HIGH -RISK UNREINFORCED MASONRY AND SOFT -STORY

STRUCTURES

The City Council conducted a public hearing and took the following actions:

A. Introduced and waived further reading of a n Ordinance adding Chapter 18 of Title 8 of The Ontario Municipal Code Pertaining to a Seismic Safety Mitigation Program for Unreinforced Masonry Buildings.

B. Introduced and waived further reading of an Ordinance adding Chapter 19 of Title 8 of The Ontario Mun icipal Code Pertaining to mandatory Seismic Strengthening provisions for existing wood -frame buildings with soft, weak or open-front wall.

C. Adopted a Resolution approving and authorizing the Building Official to waive City Building Department permit fees fo r retrofit building plans submitted for High-Risk Unreinforced Masonry (URM) and Soft-Story structures.

ORDINANCE NO. 3324 (FIRST READING) AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING PURSUANT TO

AN EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, CHAPTER 18 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE PERTAINING

TO A SEISMIC SAFETY MITIGATION PROGRAM FOR U NREINFORCED MASONRY BUILDINGS, AND MAKING FINDINGS IN SUPPORT THEREOF.

ORDINANCE NO. 3325 (FIRST READING) AN ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADDING PURSUANT TO

AN EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, CHAPTER 19 OF TITLE 8 OF THE ONTARIO MUNICIPAL CODE PERTAINING

TO MANDATORY SEISMIC STRENGTHENING PROVISIONS FOR EXISTING

WOOD-FRAME BUILDINGS WITH SOFT, WEAK OR OPEN -FRONT WALL, AND MAKING FINDINGS IN SUPPORT THEREOF.

RESOLUTION NO. 2025-181 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, AUTHORIZING THE BUILDING OFFICIAL TO

WAIVE CITY BUILDING DEPARTMENT PERMIT FEES FOR THE SEISMIC

RETROFITTING OF HIGH-RISK UNREINFORCED MASONRY (URM) AND SOFT- STORY STRUCTURES.

Notice of public hearing was duly given and affidavits of compliance are on file in the Records Management Department. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item 34 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 10 of 14 ends

for Council discussion.

MOTION: Moved by Council Member Bowman, seconded by Council Member Porada, and carried by a unanimous vote of 5-0, to introduce Ordinance No. 3324 and 3325 and adopt Resolution No. 2025-181.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION

16. SB165 LOCAL AGENCY SPECIAL TAX AND BOND ACCOUNTABILITY REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025

The City Council accept ed the City of Ontario's SB165 Local Agency Special Tax and Bond Accountability Report (unaudited) for Fiscal Year Ended June 30, 2025.

MOTION: Moved by Council Member Porada, seconded by Council Member Macias, and carried by a unanimous vote of 5-0, to accept the City of Ontario's SB165 Local Agency Special Tax and Bond Accountability Report (unaudited) for Fiscal Year Ended June 30, 2025.

17. A CITY COUNCIL ORDINANCE ESTABLISHING HOTEL EMPLOYEE SAFETY

REGULATIONS

The City Council introduced and waived further reading of an Ordinance establishing safety regulations for hotel employees.

ORDINANCE NO. 3326 (FIRST READING) AN ORDINANCE OF THE CI TY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING HOTEL

EMPLOYEE SAFETY REGULATIONS

Mayor Leon called upon City Manager Ochoa to provide an overview of the item. There were no written communications.

Mayor Leon called on the speakers:

Maria Garcia, spoke in opposition.

Natasha Wong, spoke in opposition.

Karen May, spoke in opposition.

Mayor Leon opened the item for Council discussion and Council discussed before coming to a consensus.

MOTION: Moved by Council Member Bowman, seconded by Mayor pro Tem Wapner and carried by a unanimous vote of 5-0, to introduce Ordinance No. 3326. 35 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 11 of 14 ends

18. ELECTIONS CODE SECTION 9212 IMPACT REPORT REGARDING AN

INITIATIVE ORDINANCE FOR HOTEL, CENTER, & AIRPORT WORKER

PROTECTION, RETENTION, AND MINIMUM WAGE AND RECOMMENDATION

THAT THE CITY COUNCIL CONSIDER THE ORDINANCE OUTRIGHT WITHOUT

ALTERATION

The City Council heard the impact report and rejected the proposed Ordinance.

AN ORDINANCE ESTABLISHING HOTEL, EVENT CENTER, AND AIRPORT

WORKER PROTECTION, RETENTION, AND MINIMUM WAGE

The City Clerk announced written comment submitted by the California Lodging Association, in support of rejecting the Ordinance.

Mayor Leon called upon City Manager Ochoa to provide a presentation.

Mayor Leon called upon the speakers:

Sat Patel, spoke in support of rejecting the Ordinance.

Priya Patel, spoke in support of rejecting the Ordinance.

Dilip Patel, spoke in support of rejecting the Ordinance.

Naman Patel, spoke in support of rejecting the Ordinance.

Nick Patel, spoke in support of rejecting the Ordinance.

Neil Bakta, spoke in support of rejecting the Ordinance.

Andrea Romero, spoke in opposition to rejecting the Ordinance.

Maria Martinez, spoke in opposition to rejecting the Ordinance.

Amaani Desai, spoke in support of rejecting the Ordinance.

Michael Krouse, spoke in support of rejecting the Ordinance.

Peggi Hazlett, spoke in support of rejecting the Ordinance.

Vincent Romo, spoke in support of rejecting the Ordinance.

Robert Blatt, spoke in support of rejecting the Ordinance.

Rich Garcia, spoke in support of rejecting the Ordinance.

Karen May, spoke in opposition to rejecting the Ordinance.

Marie Ocampo, spoke in opposition to rejecting the Ordinance.

Javier Gomez, spoke in opposition to rejecting the Ordinance.

Mayor Leon opened the item for Council discussion and Council discussed before coming to a consensus.

MOTION: Moved by Mayor Leon, seconded by Council Member Porada, and carried by a unanimous vote of 0-5, to reject the proposed Ordinance.

19. ELECTIONS CODE SECTION 9212 IMPACT REPORT REGARDING AN

INITIATIVE ORDINANCE TO REQUIRE VOTER APPROVAL FOR MAJOR

HOTEL DEVELOPMENT PROJECTS AND MAJOR EVENT CENTER PROJECTS

AND RECOMMENDATION THAT THE CITY COUNCIL CONSIDER THE

ORDINANCE OUTRIGHT WITHOUT ALTERATION

36 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 12 of 14 ends

The City Council heard the impact report and rejected the proposed Ordinance.

AN ORDINANCE REQUIRING VOTER APPROVAL FOR MAJOR HOTEL

DEVELOPMENT PROJECTS AND MAJOR EVENT CENTER PROJECTS

The City Clerk announced written comments submitted:

California Lodging Association, in support of rejecting the Ordinance.

Chris Bowen, in support of rejecting the Ordinance.

Zachary Houser, in support of rejecting the Ordinance.

Mayor Leon called upon City Manager Ochoa to provide a presentation.

Mayor Leon called upon the speakers:

Sat Patel, declined to speak.

Priya Patel, declined to speak.

Dilip Patel, declined to speak.

Naman Patel, declined to speak.

Nick Patel, spoke in support of rejecting the Ordinance.

Neil Bakta, declined to speak.

Zachary Houser, spoke in support of rejecting the Ordinance.

Andrea Romero, declined to speak.

Maria Martinez, declined to speak.

Chris Bowen, spoke in support of rejecting the Ordinance.

Amaani Desai, declined to speak.

Michael Krouse, declined to speak.

Peggi Hazlett, declined to speak.

Rafael Legido, spoke in support of rejecting the Ordinance.

Vincent Romo, declined to speak.

Robert Blatt, declined to speak.

Rich Garcia, declined to speak.

Thomas Ruiz, spoke in support of rejecting the Ordinance.

Karen May, spoke in opposition to rejecting the Ordinance.

Mayor Leon opened the item for Council discussion and Council discussed before coming to a consensus.

MOTION: Moved by Council Member Macias, seconded by Council Member Porada, and carried by a unanimous vote of 0-5, to reject the proposed Ordinance.

20. RESOLUTIONS CALLING A MARCH 24, 2026 SPECIAL MUNICIPAL ELECTION

FOR TWO INITIATIVE MEASURES REGARDING HOTEL, EVENT & CENTER, AND; AIRPORT WORKER REGULATIONS AND MINIMUM WAGES AND

REQUIRING VOTER APPROVAL OF DEVELOPMENT AGREEMENTS FOR

MAJOR HOTEL AND EVENT CENTER PROJECTS

37 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 13 of 14 ends

The City Council adopted the Resolutions to submit two initiative Ordinances to the Ontario voters at a Special Municipal Election to be held on March 24, 2026.

RESOLUTION NO. 2025 -182 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY OF ONTARIO ON THE MARCH 24, 2026 SPECIAL MUNICIPAL

ELECTION BALLOT AN INITIATIVE MEASURE TO ENACT A HOTEL, EVENT

CENTER AND AIRPORT HOSPITALITY WORKER PROTECTION AND MINIMUM WAGE ORDINANCE; REQUESTING THE COUN TY OF SAN BERNARDINO TO PROVIDE SPECIFIED ELECTION SERVICES TO CONDUCT SAID ELECTION;

AND SETTING RULES AND DEADLINES FOR ARGUMENTS AND REBUTTALS FOR AND AGAINST THE MEASURE.

RESOLUTION NO. 2025 -183 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA SUBMITTING TO THE QUALIFIED VOTERS OF THE CITY OF ONTARIO ON THE MARCH 24, 2026 SPECIAL MUNICIPAL

ELECTION BALLOT AN INITIATIVE MEASURE TO REQUIRE STATUTORY

DEVELOPMENT AGREEMENTS AND VOTER APPROVAL FOR ALL MAJOR

HOTEL DEVELOPMENT PROJECTS AND M AJOR EVENT CENTER
DEVELOPMENT PROJECTS IN THE CITY; REQUESTING THE COUNTY OF SAN

BERNARDINO TO PROVIDE SPECIFIED ELECTION SERVICES TO CONDUCT SAID ELECTION; AND SETTING RULES AND DEADLINES FOR ARGUMENTS AND REBUTTALS FOR AND AGAINST THE MEASURE.

Mayor Leon called upon City Manager Ochoa to provide an overview of the item. There were no written communications.

Mayor Leon called upon the speakers:

Sat Patel, declined to speak.

Priya Patel, declined to speak.

Dilip Patel, declined to speak.

Naman Patel, expressed the cost of the special election should be covered by Local Union

11. Nick Patel, declined to speak.

Neil Bakta, declined to speak.

Andrea Romero, declined to speak.

Maria Martinez, declined to speak.

Amaani Desai, declined to speak.

Michael Krouse, declined to speak.

Peggi Hazlett, declined to speak.

Vincent Romo, declined to speak.

Robert Blatt, declined to speak.

Rich Garcia, declined to speak.

Karen May, spoke in opposition to the item.

Mayor Leon opened the item for Council discussion and Council discussed before coming to a consensus.

MOTION: Moved by Council Member Porada, seconded by Council Member Bowman, 38 Ontario City Council/Ontario Housing Authority/Ontario Public Financing Authority Regular Meeting Minutes – December 16, 2025

Page 14 of 14 ends

and carried by a unanimous vote of 5 -0, to adopt Resolution Nos. 2025-182 and 2025- 183.

STAFF MATTERS

City Manager Ochoa had no updates.

COUNCIL MATTERS

Council Member Porada wished everyone happy holidays.

Mayor pro Tem Wapner wished everyone happy holidays.

Council Member Macias had no comments.

Council Member Bowman had no comments.

Mayor Leon wished everyone happy holidays.

ADJOURNMENT

Mayor Leon adjourned the meetings of the Joint Agencies at 8:34 p.m.

Respectfully submitted,

____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY

APPROVED:

_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
39 Department: Public Works
Prepared By: Tricia Maruki
Staff Member Presenting: Tito Haes, Executive
Director Public Works
Reviewed By: Khoi Do, Bonnie Tam, Andrea
Ampig
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT:

A MEMORANDUM OF UNDERSTANDING BETWEEN THE SAN BERNARDINO

COUNTY TRANSPORTATION AUTHORITY (SBCTA) AND THE CITY OF ONTARIO FOR REGIONAL EARLY ACTION PLANNING GRANTS PROGRAM (REAP 2.0) FUNDS

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council approve a Funding Agreement between the City of Ontario and the San Bernardino County Transportation Authority (SBCTA) to receive Regional Early Action Planning Grants
Program

(REAP 2.0) Funds and authorize the City Manager, or his designee, to execute said Agreement and future amendments to the Agreement within the City Council approved budget.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Pursue City's Goals and Objectives by Working with Other Governmental Agencies Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

In accordance with this Memorandum of Understanding, SBCTA will grant the City REAP 2.0 Funds on a reimbursement basis up to a not-to-exceed amount of $233,949 for the construction of pedestrian improvements on Mission Boulevard from Euclid to Plum Avenue .

Upon
approval, appropriations and associated grant revenue will be included in the Grants Fund at a future quarterly budget report to the City Council as needed.

BACKGROUND & ANALYSIS:

The REAP 2.0 program is a statewide eﬀort to accelerate progress toward California’s housing and climate goals by supporting coordinated transportation and land- use planning. REAP 2.0 provides ﬂexible funding for projects that expand transportation options for residents of aﬀordable housing, encourage alternative travel modes, reduce vehicle-miles traveled, and improve related infrastructure.

The SBCTA received REAP 2.0 funding to implement the Countywide Multi-modal Complete Streets Program. This program funds components of multi-modal transportation projects in Fontana, Ontario, Rancho Cucamonga, Rialto, Twentynine Palms, and Upland. These improvements help lay the groundwork for future mobility hubs and support infrastructure needs tied to existing and planned affordable housing.
40 Ontario’s portion of the program advances REAP 2.0 goals by investing in active transportation infrastructure and expanding bicycle and pedestrian facilities. This project speciﬁcally will construct pedestrian facilities on Mission Boulevard from Euclid Avenue to Plum Avenue.

The proposed project is also aligned with the City’s adopted Mobility Element, including:

Policy M-2.1 – Active Transportation: Maintain and expand a comprehensive system of on- and oﬀ-street bikeways and pedestrian facilities that are safe, accessible, and well-connected to key destinations, including residential areas, employment centers, schools, and parks.

Policy M-2.2 – Bicycle System: Prioritize oﬀ-street multi-use trails and Class II bikeways as the preferred bicycle network, use Class III bikeways where necessary for connectivity, and encourage Class I or Class IV facilities where bicycle routes coincide with truck routes. Require new development to provide supporting bicycle amenities such as parking and secure storage.

41 Contract No. 26-1003415 Page 1 of 8

MEMORANDUM OF UNDERSTANDING

BETWEEN

SAN BERNARDINO COUNTY TRANSPORTATION AUTHORITY
AND

CITY OF ONTARIO
Contract No. 26-1003415
This Memorandum of Understanding (MOU) is made and entered into by and between the San Bernardino County Transportation Authority (“SBCTA”) and City of Ontario (“AGENCY”) for the purpose of defining the roles and responsibilities of the two parties with respect to the receipt of Regional Early Action Planning Grants (REAP) 2.0 Program Funds allocated to SBCTA pursuant to the MOU between SBCTA and the Southern California Association of Governments (SCAG), included as Exhibit C to this MOU.

RECITALS
WHEREAS, the California State Legislature and Gover nor Gavin Newsom approved the Budget Act of 2024, which restores $560 million for the REAP 2.0 program; and WHEREAS, SCAG has received a final award from the C alifornia Department of Housing and Community Development in the amount of $231.5 million; and WHEREAS, SCAG allocated a total of $6,519,868 to SBCTA for the Reap 2.0 Countywide Multi- Modal Complete Streets Program; and
WHEREAS, REAP 2.0 is a non-federal fund type that s eeks to accelerate housing development, reduce Vehicle Miles Traveled (VMT), increase housi ng supply at all affordability levels, affirmativel y further fair housing, and implement adopted regional and local plans to achieve these goals; and, WHEREAS, the PROJECT is an active transportation project that is consistent with the objectives of REAP 2.0; and
WHEREAS, SBCTA allocated $737,000 of REAP 2.0 funds to the City of Ontario for development of the plans, specifications and estimates (PS&E) f or the “Mission Boulevard and Bon View Avenue Improvements for the Vista Verde II Residential Development Project”, and WHEREAS, the AGENCY completed 100% PS&E for the por tion of the Mission Boulevard and Bon View Avenue Improvements for the Vista Verde II Residential Development Project along Mission Boulevard from Euclid Avenue to Plum Avenue; and
WHEREAS, SBCTA further allocated an additional $233,948.89 to the AGENCY for construction of the portion of the project along Mission Bouleva rd from Euclid Avenue to Plum Avenue (PROJECT) that has completed 100% PS&E; and

42 Contract No. 26-1003415 Page 2 of 8

WHEREAS, SBCTA must serve as a direct recipient for REAP 2.0 funds allocated to the region by SCAG, and SBCTA’s responsibilities are outlined in an MOU between SBCTA and SCAG, attached hereto as Exhibit C to this MOU; and
WHEREAS, AGENCY is willing to deliver PROJECT in accordance with the terms and conditions of the MOU between SBCTA and SCAG included as Exhibit C; and WHEREAS, SBCTA desires to partner with AGENCY to su b-allocate REAP 2.0 funds to the PROJECT and to include PROJECT in the REAP 2.0 Countywide Multi-Modal Complete Streets Program, consistent with the action of the SBCTA Board of Directors on May 8, 2024 and November 5, 2025 and WHEREAS, this MOU addresses the roles and responsibilities for the administration of the REAP

2.0 Funds allocated to AGENCY by SBCTA;
NOW, THEREFORE, it is mutually understood and agreed by SBCTA and AGENCY as follows:

ARTICLE I. RESPONSIBILITIES OF SBCTA AND AGENCY

A. The Recitals and all exhibits and attachments r eferred to in this MOU are incorporated herein by t his reference and made a part of the provisions of this MOU.

B. SBCTA shall notify SCAG of its decision to allocate $233,948.89 to AGENCY for the PROJECT.

C. AGENCY is responsible for ensuring REAP 2.0 fun ds are expended by December 31, 2026, in accordance with the terms and conditions in Exhibit C, the MOU between SBCTA and SCAG, which is incorporated herein, unless this MOU is terminated earlier as provided herein. SBCTA shall not reimburse AGENCY for any expenses incurred in a manner contrary to the requirements of Attachment A or outside the period of performance of this MOU.

D. AGENCY must demonstrate a clear and significant nexus to the REAP 2.0 Goals and Objectives, as described in Section 9 of Exhibit C, and must carry out the PROJECT to meet the REAP 2.0 Goals and Objectives.

E. AGENCY shall be responsible for implementing th e PROJECT, including all tasks, obligations, and deliverables as described in accordance with the Sc ope of Work, attached as Exhibit A and incorporated herein, and Budget and Project Schedule, attached in Exhibit B and incorporated herein.

F. SBCTA shall notify AGENCY of the availability of the REAP 2.0 Funds and provide AGENCY with a Notice-to-Proceed (NTP) once the funds become available to SBCTA.

G. AGENCY will prepare, with assistance from SBCTA as needed, all documentation required to be submitted to SCAG. SBCTA will submit required docum ents to SCAG in accordance with the REAP 2.0 Program Guidelines developed by SCAG.
43 Contract No. 26-1003415 Page 3 of 8

H. This MOU is a Cost Reimbursement agreement. Amounts claimed must reflect the actual incurred and paid cost of completed work. The actual incurred an d paid costs may not exceed the Project’s budget se t forth in the Budgets and Schedules included as Exhi bit B. All invoices submitted to SBCTA for payment shall be e-mailed to [email protected].

I. Once per quarter (i.e., January 21, April 21, July 21, October 21), AGENCY shall submit an invoice for the PROJECT to SBCTA using the “Invoice Report” con sistent with Exhibit C, unless amended or otherwise directed by SBCTA. The Invoice Report mus t be submitted in both PDF format and the Excel file provided by SBCTA. SBCTA shall review the Invo ice Report for compliance with this MOU.

If SBCTA determines that the Invoice Report is comp liant with this MOU, SBCTA shall approve the Invoice Report and issue payment to the AGENCY.

J. Incomplete or inaccurate invoices may be return ed to AGENCY for correction; returned invoices will not be paid until corrected, resubmitted, and approved by SBCTA. SBCTA may, at its discretion, disallow any unsupported costs and process the invoice. If AGENCY corrects the error, the disallowed items can be included in the next invoice.

K. AGENCY shall prepare, with assistance from SBCTA as needed, all required reports related to receipt and expenditure of REAP 2.0 Funds, including close out reports, in accordance with the REAP 2.0 Program Guidelines developed by SCAG and included in Exhibi t C SBCTA will submit the finalized reports to SCAG on the behalf of AGENCY.

L. AGENCY is responsible for ensuring the PROJECT is completed as described in Exhibit A and approved by SBCTA as included in this MOU.

M. AGENCY is responsible for notifying SBCTA exped itiously should any circumstances prevent AGENCY from completing the PROJECT as described in Exhibit A, as approved by the SBCTA Board of Directors and SCAG. AGENCY will provide all documentation required in order for SBCTA to present an amendment to this MOU to the SBCTA Executive Direct or or Board of Directors for approval, subject to approval authority and availability of funds.

N. AGENCY is responsible for ensuring REAP 2.0 fun ds are expended within the timeframe indicated, i.e., by December 31, 2026, and able to be invoiced to SCAG by December 31, 2026, in accordance with the REAP 2.0 guidelines.

ARTICLE II. GENERAL PROVISIONS

A. Term of MOU: This MOU shall be effective upon e xecution by SBCTA. The MOU shall remain in effect until December 31, 2026 or until terminated as provided in Article II. E., below.

B. Legal Authority: The signatories to this MOU warrant that they are duly authorized to execute this MOU on behalf of the parties and that, by so executing the MOU, the parties hereto are formally bound to t he provisions of this MOU.

C. Assignment: Neither this MOU, nor any of the parties’ rights, obligations, duties or authority under this MOU, may be assigned in whole or in part by either party without the proper written consent of the oth er 44 Contract No. 26-1003415 Page 4 of 8

party in its sole and absolute discretion. Any such attempt of assignment shall be deemed void and of no force and effect. Consent to any assignment shall not be deemed consent to any subsequent assignment.

D. Governing Law and Venue: The laws of the State of California and applicable local and federal laws , regulations and guidelines shall govern this MOU. A ny action to enforce any provision of this agreemen t shall be filed in the Superior Court of San Bernardino County.

E. Termination: Any party may terminate this MOU upon thirty (30) days’ written notice to the other party, said notice to provide the effective date of the te rmination and the reason for the termination. If Ci ty terminates the MOU and SBCTA is required to return monies to SCAG, City shall reimburse SBCTA for such expenses incurred within 30 days’ of SBCTA’s written demand.

F. Notices: Any notices, requests, or demands made between the parties pursuant to this MOU are to be directed as follows:

City of Ontario San Bernardino County Transport ation Authority 303 E. B Street 1170 W Third Street, 2
nd Floor
Ontario, CA 91764 San Bernardino, CA 92410
Attn: Khoi Do, P.E., Attn: Steve Smith
City Engineer Director of Planning and Regional Programs (909) 395-2127 (909) 884-8276

G. Severability: If any term, provision, covenant, or condition of this MOU is held to be invalid, vo id or otherwise unenforceable, to any extent, by any court of competent jurisdiction, the remainder of this MOU shall not be affected thereby, and each term, provi sion, covenant or condition of this MOU shall be va lid and enforceable to the fullest extent permitted by law.

H. Counterparts of MOU: This MOU may be executed an d delivered in any number of counterparts, each of which, when executed and delivered shall be deemed an original and all of which together shall constitute the same agreement. Facsimile signatures will be permitted.

I. Force Majeure: Either party shall be excused from performing its obligations under this MOU during the time and to the extent that it is prevented from pe rforming by an unforeseeable cause beyond its contr ol, including but not limited to: any incidence of fire , flood, or other natural disaster; acts of God; commandeering of material, products, plants or facilities by the federal, state or local government; national fuel shortage.

J. The Recitals are incorporated into and made a part of this MOU. ---SIGNATURES ON FOLLOWING PAGE---

45 Contract No. 26-1003415 Page 5 of 8

In witness whereof, the Parties have executed this Memorandum of Understanding on the dates below.

SBCTA City of Ontario

____________________________ ____________________ _______ Carolyn Schindler Scott Ochoa
Executive Director City Manager
____________________________ ____________________ _______ Date Date

Approved as to Form: Approved as to Form:

____________________________ ____________________ _______ Iain MacMillan Ruben Duran
SBCTA Assistant General Counsel City Attorney
____________________________ ____________________ _______ Date Date

46 Contract No. 26-1003415 Page 6 of 8

Exhibit A
Project Scope of Work
Project Title: Countywide Multi-Modal Complete Streets Program – City of Ontario - Mission Boulevard from Euclid Avenue to Plum Avenue Project
Project Description: Installation of pedestrian facilities including earthwork, removals and restorations on Mission Boulevard from Euclid Avenue to Plum Avenue
Final Deliverable:
• Final construction drawings
• Construction and Installation of the Project
Project Budget: $233,948.89

47 Contract No. 26-1003415 Page 7 of 8

Exhibit B
Budget and Schedule
CEQA – Addendum to the certified Environmental Impact Report for the Ontario Plan to construct bicycle (Class IV buffered bike lanes) and sidewalks on Mission Boulevard from Benson to Bon View Avenues (2.5 miles) which will include widening segments to accommodate these facilities, bike detection at signalized intersections, missing street lights, parkway landscaping, handicap ramps and a bike repair station. Filed 11/13/2017.

Design Completion: January 2026
SCAG REAP 2.0 CTC Partnership Award: November 5, 2025
Anticipated Begin Construction: June 2026
Anticipated Construction Completion: September 2026

Estimated Construction Cost: $233,948.89
Funding Source: SCAG, $233,948.89
Anticipated Completion Date: November 2026

48 Contract No. 26-1003415 Page 8 of 8

Exhibit C
MOU Between SBCTA and SCAG and Amendments Nos. 1, 2, 3 and 4 (See Attached Board Agenda Item)

49 Department: Public Works
Prepared By: Adrian Escamilla
Staff Member Presenting: Tito Haes, Executive
Director Public Works
Reviewed By: Bonnie Tam, Andrea Ampig
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 4
SUBJECT:

A CONSTRUCTION CONTRACT WITH K.C. RESTORATION CO., INC. FOR THE

EMMONS BUILDING (GRANADA THEATER) HISTORIC REHABILITATION PROJECT PHASE 1

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council take the following actions:

A
.

Authorize the City Manager, or his designee, to execute Construction Contract No. D&C25-003 with K.C. Restoration Co., Inc., of Gardena, California, for the Emmons Building (Granada Theater) Historic Rehabilitation Project Phase 1 in the amount of $1,087,075 plus a 20% contingency of $217,415 for a total not-to-exceed contract amount of $1,304,490; and B
.

Authorize the City Manager, or his designee, to execute all documents required for the completion of the project which may include, but not limited to, agreements, assessments, easements, reduction of retention accounts, contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction-related activities.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Operate in a Businesslike Manner
FISCAL IMPACT:

The proposed Construction Contract with K.C. Restoration Co., Inc. is in the amount of $1,087,075 plus a 20% contingency of $217,415 for a total not-to-exceed contract amount of $1,304,490. If approved, additional appropriations in the Capital Projects – Measure Q Fund will be included in future quarterly budget updates to the City Council as needed for the for the Emmons Building Historic Rehabilitation Project Phase 1.

BACKGROUND & ANALYSIS:

The City acquired the Emmons Building for rehabilitation and repurposing for various types of programming. The Emmons Building Historic Rehabilitation Project Phase 1 will include exterior ﬁnishes including removal of existing coating, lead mitigation eﬀorts, painting, window restoration and marquee sign restoration. Staﬀ is recommending a 20% contingency due to the unique challenges and specialized labor needed that come with the age of 50 the building and the need to preserve historic materials and character.

On October 3, 2025, Staﬀ solicited bids for Invitation No. 1962 for Emmons Building Historic Rehabilitation Project Phase 1. Staﬀ received three bids ranging from $1,087,075 to $1,788,000. The bids received are listed below:

Vendor
Location
Amount
K.C. Restoration Co., Inc.

Gardena, CA
$1,087,075
Global Builders, Inc.

Laguna Hills, CA
$1,689,888
OCS Construction Services
Riverside, CA
$1,788,000

On December 4, 2025, the City received a correspondence from Global Builders, Inc. protesting the intended award of Construction Contract No. D&C25-003 with K.C. Restoration Co., Inc. The City responded to Global Builders, Inc. in a letter dated December 11, 2025 denying the protest as identifying a waivable irregularity without even minimal merit.

K.C. Restoration Co., Inc., of Gardena, California, was the lowest responsible and responsive bidder that met all the required speciﬁcations with a cost of
$1,087,075
. Based on credentials, pricing, and
favorable reference checks, Staﬀ recommends awarding Construction Contract No. D&C25-003 to K.C. Restoration Co., Inc. The project’s estimated completion date is March 2026. 51 SE
CTION 00500 – CONTRACT FOR CONSTRUCTION
This Contract for Construction (“Contract”), No. ________ is made and entered as of ____________, by and between City of Ontario, with its principal place of business at 303 East “B” Street, Ontario, CA 91764, sometimes hereinafter called the “City” and KC Restoration Co., Inc, sometimes hereinafter called “Contractor.”
WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documen ts as specified in Article 5, below, for the following Project:

D&C25-003 Emmons Building (Granda Theater) Historic Rehabilitation Phase 1
Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs, the sum of One
Million Eighty-Seven Thousand Seventy-Five
PAUL S. LEON
MAYOR
ALAN
D. WAPNER

MAYOR PRO TEM
JIM W
. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS

SHEILA MAUTZ

CITY CLERK
JAM
ES R. MILHISER

CITY TREASURER
SC

OTT OCHOA

CITY MANAGER
52 46700.00920\42649889.1
D&C25-003 Emmons Building (Granada Theater)
Phase 1
2 SECTION 00750 – SPECIAL CONDITIONS

Dollars ($1,087,075). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $500.00 for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

Consistent with Public Contract Code Section 7102, Contractor will be compensated for damages incurred due to delays for which the City is responsible. The parties agree that determining Contractor’s exact delay damages is and will continue to be impracticable and extremely difficult.

As such, for each calendar day in excess of the Contract Time, the City shall pay to the Contractor $500.00 per day as Reverse Liquidated Damages and not as a penalty or forfeiture. Such amount shall constitute the only payment allowed for any City caused delays and shall necessarily include all overhead, all profits, all administrative costs, all bond costs, all labor, materials, equipment and rental costs and any other costs, expenses and fees incurred or sustained as a result of such delays. Notice of requests for delay damages and additional days shall be provided to the City within five (5) Days from the discovery of the circumstances giving rise to any delay or three (3) Days from the discovery of any latent or subsurface conditions giving rise to a delay.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Fleet Compliance Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
General Conditions
53 46700.00920\42649889.1
D&C25-003 Emmons Building (Granada Theater)
Phase 1
3 SECTION 00750 – SPECIAL CONDITIONS

Special Conditions
The Cont
ractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

ARTICLE 7. INDEMNIFICATION.

Contractor shall provide indemnification and defense as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
54 46700.00920\42649889.1
D&C25-003 Emmons Building (Granada Theater)
Phase 1
4 SECTION 00750 – SPECIAL CONDITIONS

IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF ONTARIO
By:

Scott Ochoa
City Manager
ATT
EST:

By:

Sheila Mautz, Cit y Clerk
APPRO
VED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
KC Restoration Co., Inc.

By:

Its:

Printed Name:
[D

ELETE THE FOLLOWING SIGNATURE
LINE IF NOT REQUIRED]
By:

Its:

Printed Name:
____________________________________
Contractor’s License Number and
Classification
____________________________________
DIR Registration Number
[IF C

ORPORATION, TWO SIGNATURES,

PRESIDENT OR VICE PRESIDENT AND

SECRETARY OR TREASURER
REQUIRED]

END OF CONTRACT
55 Department: Community Improvement
Prepared By: Angel Hamilton
Staff Member Presenting: Rudy Zeledon,
Executive Director Community Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 5
SUBJECT:

A RESOLUTION FOR PLACEMENT OF SPECIAL ASSESSMENTS ON THE SAN

BERNARDINO COUNTY TAX ROLLS

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Focus Resources in Ontario's Commercial and Residential Neighborhoods FISCAL IMPACT:

The levy of special assessments will result in the recovery of $82,172.57 in costs that the City has expended for inspection or abatement of property violations, as well as the collection of $181,370.00 associated with civil penalties and/or ﬁnes for continued violations, for a total of $263,542.57 related to 160 parcels. When received, these reimbursements will be deposited into the General Fund. The Fiscal Year 2025-26 Adopted Budget includes special assessment revenue in the General Fund for these types of levies.

BACKGROUND & ANALYSIS:

The City has established administrative citations and ﬁnes for property maintenance violations and fees and penalties associated with the Systematic Health and Safety Inspection Program, Abandoned and Distressed Property Program, and the Weed and Refuse Abatement Program. These costs, ﬁnes, fees, and penalties are recovered through placement of special tax assessments upon the properties. The placement of special assessments and collection of revenue is done under Ordinance 3046, Property Appearance (Title 5, Chapter 22 of the Ontario Municipal Code); Chapter 9 of the Uniform Code for the Abatement of Dangerous Buildings; and Ordinance 2920 for civil penalties for continued violations of the Ontario Municipal Code and ﬁnes associated with administrative citations (Title 1, Chapters 2 and 5 of the Ontario Municipal Code). The City and the County of San Bernardino currently have a contractual agreement regarding the implementation of special assessments; however, a Resolution authorizing the placement of the specific assessments is required. During this assessment cycle, the Community Improvement Department has billed property owners for: the abatement of violations; the issuance of ﬁnes associated with administrative citation; the issuance of fees and penalties 56 associated with the Systematic Health and Safety Inspection Program; the issuance of registration fees and civil penalties associated with the Abandoned and Distressed Property Program; the issuance of notice and re-inspection fees; and civil penalties for the Weed and Refuse Abatement Program on 310 parcels. Of these, there are remaining amounts due on 160 parcels. Attached are itemized accounts that include: 1) costs associated with inspection or abatement as shown in Exhibit A of the Resolution; 2) civil penalties and/or ﬁnes for continued violations as shown in Exhibit B of the Resolution; and 3) total amounts per parcel as shown in Exhibit C of the Resolution.

All aﬀected property owners were given notice of the imposition of special assessments via certiﬁed mail as provided in Ontario Municipal Code Section 1-4.05(a) and have either not requested an appeal or have exhausted the appellate procedure in Ontario Municipal Code Section 1-4.05(b). 57 RESOLUTION NO. ________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, ADOPTING A REPORT REQUESTING THE PLACEMENT

OF SPECIAL ASSESSMENTS ON PROPERTY TAX BILLS FOR CIVIL

PENALTIES OR RECOVERY OF COSTS INCURRED FOR ABATEMENT
OF VIOLATIONS OF CITY CODES AND ORDINANCES.

WHEREAS, Ordinance No. 3046, Property Appearance (Title 5, Chapter 22, of the Ontario Municipal Code) and Chapter 9 of the Uniform Code for the Abatem ent of Dangerous Buildings provide for the abatement of property nuisances by repair, rehabilitation, demolition or removal; and

WHEREAS, under Resolution 94-112, Resolution ORA-499, and the Cooperation and Reimbursement Agreement entered into on the 15 th day of November, 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one -time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or abate dangerous buildings and properties throughout the City; and

WHEREAS, under a first amendment to the Cooperation and Reimbursement Agreement entered into on the 16th day of July 1996, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made an addi tional advance to the City of One Hundred Thousand Dollars ($100,000) to continue to repair or abate dangerous buildings and properties throughout the City; and

WHEREAS, under Resolution 94-113, Resolution ORA-500, and the Cooperation and Reimbursement Agreement entered into on the 15 th day of November 1994, by the City of Ontario and the Ontario Redevelopment Agency, the Ontario Redevelopment Agency made a one -time advance to the City of Thirty Thousand Dollars ($30,000) to repair or abate dangerous buildings and properties in the 6th and Grove area; and

WHEREAS, under Resolution 94 -12, Resolution ORA -464, and the Cooperation and Reimbursement Agreement entered into on the 22 nd day of February 1994, by the City of Ontario and the Ontario Redevelopment Age ncy, the Ontario Redevelopment Agency made a one -time advance to the City of One Hundred Fifty Thousand Dollars ($150,000) to repair or demolish dangerous buildings throughout the City; and

WHEREAS, Ordinance No. 2894, Systematic Health and Safety Inspection Program (Title 8, Chapter 17, of the Ontario Municipal Code), provides for the collection of unpaid service fees, plus any penalties and accrued interest by Special Assessment; and

WHEREAS, Ordinance No. 2920, provides for the assessment of civil penalties for continued violations of the Ontario Municipal Code (Title 1, Chapter 2 of the Ontario Municipal Code), and for fines associated with administrative citations to be collected by Special Assessment (Title 1, Chapter 5 of the Ontario Municipal Code), and establishes a uniform procedure before imposing such Special Assessments (Title 1, Chapter 4 of the Ontario Municipal Code); and
58 WHEREAS, the above said ordinances, resolutions and agreements provide for recovery of costs incurred in the abatement of violations by means of a Special Assessment placed on the tax rolls; and

WHEREAS, the City has incurred costs involved in the abatement of violations under the Ontario Municipal Code and Uniform Code for the Abatement of Dangerous Buildings, issuing Notices of Violation, and administering the Systematic Health and Safety Program and wishes to recover said costs; and

WHEREAS, the owners of all parcels listed in Exhibit A, B, and C were given notice of imposition of such Special Assessment as provided in Ontario Municipal Code Section 1-4.05(a), and either have not requested an appeal, or have exhausted the appellate procedure provided in Ontario Municipal Code Section 1-4.05(b); and

WHEREAS, the C ity has an executed contract with the San Bernardino County Board of Supervisors for collection of said assessments.

NOW, THEREFORE, BE IT RESOLVED that the City Council:

1. Confirmed the costs associated with inspection or abatement on the properties as set forth in the report in Exhibit A; and

2. Confirmed the civil penalties and/or fines for continued violations on the properties as set forth in the report in Exhibit B; and

3. Confirmed that Exhibit C contains the total amount assessed for both confirmed costs and confirmed civil penalties and/or fines for each of the properties; and

4. Found and determined that the report, and Exhibits contained therein are true and accurate; and

5. Adopts the above said report and finds that the costs of inspection or abatement on the properties listed are the costs set forth in Exhibit A, the civil penalties and/or fines for continued violations are the penalties and/or fines as set forth in Exhibit B, and the same are hereby charged and placed as special assessments upon the respective properties; and

6. Directs Exhibit C shall be sent to the Auditor -Controller of San Bernardino County and shall be collected on the County tax roll.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

59 PASSED, APPROVED, AND ADOPTED this 20th day of January 2026.

_____________________________________
PAUL S. LEON, MAYOR

ATTEST:

________________________________

SHEILA MAUTZ, CITY CLERK

APPROVED AS TO LEGAL FORM:

_______________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY

60 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )

I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2025- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held January 20, 2026, by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

____________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

The foregoing is the original of Resolution No. 20 26- duly passed and adopted by the Ontario City Council at their regular meeting held January 20, 2026.

_____________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

61 City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit A - Costs Associated with Inspection or Abatement Parcel Number Address Amount Due
0108-442-16 1433 N EL DORADO AV, Ontario, CA 91764 108.00 0108-471-27 1548 E EIGHTH ST, Unit:A, Ontario, CA 91764 79.12 0108-551-09 1679 E FOURTH ST, Ontario, CA 91764 4,401.64 0108-573-04 1735 N CORONA AV, Ontario, CA 91764 727.20
0110-061-10 1201 E HOLT BL, Ontario, CA 91761 172.00
0110-071-07 1381 E HOLT BL, Ontario, CA 91761 172.00
0110-161-19 903 N CALAVERAS AV, Ontario, CA 91764 290.60 0110-202-46 1440 E FOURTH ST, Ontario, CA 91764 344.00
0110-241-57 1752 E G ST, Ontario, CA 91764 172.00
0110-272-16 1346 E EL MORADO CT, Ontario, CA 91764 108.00 0110-322-33 2236 E HOLT BL, Ontario, CA 91761 172.00
0110-343-04 1778 E FOURTH ST, Ontario, CA 91764 1,874.73 0110-347-02 950 N MARIPOSA AV, Ontario, CA 91764 108.00 0110-442-03 2056 E BULLETIN PRIVADO, Ontario, CA 91764 46.00 0113-491-31 2313 E PHILADELPHIA ST, Building:2, Unit:A, Ontario, CA 91761 108.00 0210-182-69 951 N HAVEN AV, Building:1, Unit:E, Ontario, CA 91764 1,528.69 0210-192-21 2955 E GUASTI RD, Ontario, CA 91761 172.00
0210-192-22 2975 E GUASTI RD, Ontario, CA 91761 172.00
0210-192-26 2995 E GUASTI RD, Ontario, CA 91761 172.00
0210-211-36 3998 E INLAND EMPIRE BL, Building:1, Unit:400, Ontario, CA 91764 1,603.20 0211-232-38 0 S MILLIKEN AV, Ontario, CA 91761 172.00
0211-301-03 2151 S HAVEN AV, Unit:100, Ontario, CA 91761 108.00 0211-321-28 0 N COMMON AREA, Ontario, CA 91761 172.00
0216-013-04 2349 S WALKER AV, Ontario, CA 91761 2,329.40 0216-211-24 13519 S GROVE AV, Ontario, CA 91761 1,999.80 0216-401-62 2550 VINEYARD AV S, Unit:B, Ontario, CA 91761 108.00 0216-411-21 1743 E FAIRFIELD CT, Unit:1, Ontario, CA 91761 79.12 0216-441-60 2737 S GROVE AV, Ontario, CA 91761 2,500.80 0218-094-32 3660 PECKHAM PASEO E, Unit:5, Ontario, CA 91761 108.00 0218-545-09 3232 S NEWTON AV, Ontario, CA 91761 108.00
0218-881-35 3238 S CENTURION PL, Ontario, CA 91761 1,092.20 0238-012-30 5060 E FOURTH ST, Ontario, CA 91764 172.00
0238-012-35 5005 E ONTARIO MILLS PW, Ontario, CA 91764 108.00 0238-051-33 0 E ONTARIO MILLS PW, Ontario, CA 91764 344.00 0238-081-51 5751 E SANTA ANA ST, Building:2, Ontario, CA 91761 1,379.78 0238-152-02 0 E SCE EASEMENT, Ontario, CA 91761 344.00
0238-152-09 0 E PHILADELPHIA ST, Ontario, CA 91761 344.00 0238-193-17 820 S WANAMAKER AV, Building:1, Ontario, CA 91761 108.00 1008-513-16 1000 Fourth W, Ontario, CA 91762 172.00
1010-191-30 1025 W I ST, Ontario, CA 91762 115.40
1010-191-45 1048 W H ST, Ontario, CA 91762 172.00

Page 1 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit A - Costs Associated with Inspection or Abatement Parcel Number Address Amount Due
1011-112-44 0 W BROOKS ST, Ontario, CA 91762 172.00
1011-413-27 910 S PALMETTO AV, Ontario, CA 91762 108.00 1011-421-38 1022 S MAGNOLIA AV, Ontario, CA 91762 77.38 1014-221-38 1221 W LOCUST ST, Ontario, CA 91762 172.00
1014-532-04 2004 S PALMETTO AV, Ontario, CA 91762 8,784.00 1047-372-12 634 E BONNIE BRAE CT, Ontario, CA 91764 3,131.12 1047-432-07 1129 E LA DENEY CT, Ontario, CA 91764 1,639.00 1047-441-12 1314 N VIRGINIA AV, Ontario, CA 91764 79.12 1047-473-29 1017 E FOURTH ST, Building:1, Unit:A, Ontario, CA 91764 79.12 1047-473-39 1037 E FOURTH ST, Ontario, CA 91764 115.40
1047-502-21 723 E FOURTH ST, Ontario, CA 91764 108.00
1047-521-62 565 E YALE ST, Ontario, CA 91764 3,709.20
1047-542-02 1106 N EUCLID AV, Ontario, CA 91764 172.00
1048-052-14 132 W J ST, Ontario, CA 91762 172.00
1048-081-24 650 E J ST, Ontario, CA 91764 379.60
1048-081-33 641 E PLAZA SERENA ST, Ontario, CA 91764 1,484.10 1048-093-26 627 E J ST, Ontario, CA 91764 108.00
1048-111-26 705 E PLAZA SERENA ST, Ontario, CA 91764 108.00 1048-123-17 1023 E I ST, Ontario, CA 91764 2,935.86
1048-131-27 1027 N CUCAMONGA AV, Ontario, CA 91764 172.00 1048-132-08 952 E ROSEWOOD CT, Ontario, CA 91764 4,409.15 1048-471-14 1117 E HOLT BL, Ontario, CA 91761 172.00
1048-561-10 220 W C ST, Ontario, CA 91762 172.00
1048-566-05 317 N EUCLID AV, Building:1, Unit:A, Ontario, CA 91762 1,347.59 1048-581-28 301 N VINE AV, Ontario, CA 91762 172.00
1049-011-09 767 W BROOKS ST, Ontario, CA 91762 172.00
1049-012-18 145 S CYPRESS AV, Ontario, CA 91762 172.00
1049-021-26 559 W HOLT BL, Ontario, CA 91762 172.00
1049-043-03 211 W MAIN ST, Ontario, CA 91762 172.00
1049-057-05 112 S EUCLID AV, Building:1, Ontario, CA 91762 144.60 1049-111-01 316 S BON VIEW AV, Building:2, Ontario, CA 91761 172.00 1049-111-05 725 E STATE ST, Building:1, Ontario, CA 91761 172.00 1049-111-06 235 S CAMPUS AV, Unit:A, Ontario, CA 91761 172.00 1049-221-32 550 E SUNKIST ST, Ontario, CA 91761 172.00
1049-231-05 520 E STATE ST, Ontario, CA 91761 12,405.00 1049-244-04 515 S LEMON AV, Ontario, CA 91761 1,088.00
1049-245-01 302 E STATE ST, Ontario, CA 91761 172.00
1049-253-09 215 E NEVADA ST, Ontario, CA 91761 172.00
1049-272-09 402 W SUNKIST ST, Ontario, CA 91762 108.00
1049-303-29 601 S CYPRESS AV, Ontario, CA 91762 668.80
1049-366-09 901 S CALDWELL AV, Ontario, CA 91761 344.00

Page 2 ends

Page 3 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit B - Civil Penalties and/or Fines for Continued Violations Parcel Number Address Amount Due
0108-534-31 1734 E HAWTHORNE ST, Ontario, CA 91764 320.00 0110-013-20 1205 E D ST, Ontario, CA 91764 15,520.00
0110-202-46 1440 E FOURTH ST, Ontario, CA 91764 500.00
0110-253-20 415 N HUMBOLDT PL, Ontario, CA 91764 24,500.00 0110-301-01 1249 N VINEYARD AV, Building:1, Ontario, CA 91764 640.00 0110-345-11 1009 N ORANGE AV, Ontario, CA 91764 220.00
0110-374-12 864 N SAN DIEGO AV, Ontario, CA 91764 340.00 0110-375-08 1822 E GRANADA CT, Ontario, CA 91764 120.00 0110-375-09 1828 E GRANADA CT, Ontario, CA 91764 120.00 0113-283-15 2947 S VINEYARD AV, Building:2, Ontario, CA 91761 15,420.00 0113-286-10 2336 S VINEYARD AV, Building:8, Ontario, CA 91761 120.00 0113-641-14 2171 S GROVE AV, Building:3, Unit:A, Ontario, CA 91761 3,000.00 0210-501-31 4155 E INLAND EMPIRE BL, Ontario, CA 91764 220.00 0211-232-22 1001 S DOUBLEDAY AV, Ontario, CA 91761 840.00 0211-281-10 1555 S DUPONT AV, Unit:A, Ontario, CA 91761 6,000.00 0211-361-11 1550 S MILLIKEN AV, Building:2, Unit:A, Ontario, CA 91761 10,400.00 0216-312-04 8455 E SCHAEFER AV, Ontario, CA 91761 18,040.00 0216-341-16 2522 S CALAVERAS PL, Ontario, CA 91761 30,000.00 0218-604-55 3195 E OLYMPIC DR, Ontario, CA 91762 3,000.00 0238-012-34 5007 E ONTARIO MILLS PW, Ontario, CA 91764 540.00 0238-051-33 0 E ONTARIO MILLS PW, Ontario, CA 91764 500.00 0238-152-02 0 E SCE EASEMENT, Ontario, CA 91761 500.00
0238-152-09 0 E PHILADELPHIA ST, Ontario, CA 91761 500.00 1008-261-49 980 W SIXTH ST, Ontario, CA 91762 760.00
1008-462-25 933 W BONNIE BRAE CT, Ontario, CA 91762 170.00 1008-481-01 804 W LA DENEY DR, Ontario, CA 91762 120.00 1008-482-05 832 W HAWTHORNE ST, Unit:A, Ontario, CA 91762 340.00 1008-512-10 856 W HARVARD PL, Ontario, CA 91762 220.00
1008-532-03 1008 W YALE ST, Ontario, CA 91762 170.00
1010-141-03 910 N MOUNTAIN AV, Ontario, CA 91762 220.00 1010-491-02 828 W HOLT BL, Ontario, CA 91762 340.00
1011-121-24 1345 W HOLT BL, Building:1, Ontario, CA 91762 340.00 1011-181-11 1128 W MISSION BL, Building:2, Unit:F, Ontario, CA 91762 340.00 1011-391-69 939 W MISSION BL, Building:1, Unit:D, Ontario, CA 91762 320.00 1014-111-04 1519 S OAKS AV, Ontario, CA 91762 8,020.00
1014-441-25 1387 FRANCIS ST W, Ontario, CA 91762 1,500.00 1047-302-01 767 W LA DENEY DR, Ontario, CA 91762 120.00 1047-333-11 353 W BONNIE BRAE CT, Ontario, CA 91762 340.00 1047-462-18 1125 N GROVE AV, Building:1, Ontario, CA 91764 510.00 1047-502-18 737 E FOURTH ST, Unit:A, Ontario, CA 91764 120.00 1047-521-45 634 E FIFTH ST, Ontario, CA 91764 120.00

Page 1 ends

Page 2 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
0108-442-16 1433 N EL DORADO AV, Ontario, CA 91764 108.00 0108-471-27 1548 E EIGHTH ST, Unit:A, Ontario, CA 91764 79.12 0108-534-31 1734 E HAWTHORNE ST, Ontario, CA 91764 320.00 0108-551-09 1679 E FOURTH ST, Ontario, CA 91764 4,401.64 0108-573-04 1735 N CORONA AV, Ontario, CA 91764 727.20
0110-013-20 1205 E D ST, Ontario, CA 91764 15,520.00
0110-061-10 1201 E HOLT BL, Ontario, CA 91761 172.00
0110-071-07 1381 E HOLT BL, Ontario, CA 91761 172.00
0110-161-19 903 N CALAVERAS AV, Ontario, CA 91764 290.60 0110-202-46 1440 E FOURTH ST, Ontario, CA 91764 844.00
0110-241-57 1752 E G ST, Ontario, CA 91764 172.00
0110-253-20 415 N HUMBOLDT PL, Ontario, CA 91764 24,500.00 0110-272-16 1346 E EL MORADO CT, Ontario, CA 91764 108.00 0110-301-01 1249 N VINEYARD AV, Building:1, Ontario, CA 91764 640.00 0110-322-33 2236 E HOLT BL, Ontario, CA 91761 172.00
0110-343-04 1778 E FOURTH ST, Ontario, CA 91764 1,874.73 0110-345-11 1009 N ORANGE AV, Ontario, CA 91764 220.00
0110-347-02 950 N MARIPOSA AV, Ontario, CA 91764 108.00 0110-374-12 864 N SAN DIEGO AV, Ontario, CA 91764 340.00 0110-375-08 1822 E GRANADA CT, Ontario, CA 91764 120.00 0110-375-09 1828 E GRANADA CT, Ontario, CA 91764 120.00 0110-442-03 2056 E BULLETIN PRIVADO, Ontario, CA 91764 46.00 0113-283-15 2947 S VINEYARD AV, Building:2, Ontario, CA 91761 15,420.00 0113-286-10 2336 S VINEYARD AV, Building:8, Ontario, CA 91761 120.00 0113-491-31 2313 E PHILADELPHIA ST, Building:2, Unit:A, Ontario, CA 91761 108.00 0113-641-14 2171 S GROVE AV, Building:3, Unit:A, Ontario, CA 91761 3,000.00 0210-182-69 951 N HAVEN AV, Building:1, Unit:E, Ontario, CA 91764 1,528.69 0210-192-21 2955 E GUASTI RD, Ontario, CA 91761 172.00
0210-192-22 2975 E GUASTI RD, Ontario, CA 91761 172.00
0210-192-26 2995 E GUASTI RD, Ontario, CA 91761 172.00
0210-211-36 3998 E INLAND EMPIRE BL, Building:1, Unit:400, Ontario, CA 91764 1,603.20 0210-501-31 4155 E INLAND EMPIRE BL, Ontario, CA 91764 220.00 0211-232-22 1001 S DOUBLEDAY AV, Ontario, CA 91761 840.00 0211-232-38 0 S MILLIKEN AV, Ontario, CA 91761 172.00
0211-281-10 1555 S DUPONT AV, Unit:A, Ontario, CA 91761 6,000.00 0211-301-03 2151 S HAVEN AV, Unit:100, Ontario, CA 91761 108.00 0211-321-28 0 N COMMON AREA, Ontario, CA 91761 172.00
0211-361-11 1550 S MILLIKEN AV, Building:2, Unit:A, Ontario, CA 91761 10,400.00 0216-013-04 2349 S WALKER AV, Ontario, CA 91761 2,329.40 0216-211-24 13519 S GROVE AV, Ontario, CA 91761 1,999.80 0216-312-04 8455 E SCHAEFER AV, Ontario, CA 91761 18,040.00

Page 1 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
0216-341-16 2522 S CALAVERAS PL, Ontario, CA 91761 30,000.00 0216-401-62 2550 VINEYARD AV S, Unit:B, Ontario, CA 91761 108.00 0216-411-21 1743 E FAIRFIELD CT, Unit:1, Ontario, CA 91761 79.12 0216-441-60 2737 S GROVE AV, Ontario, CA 91761 2,500.80 0218-094-32 3660 PECKHAM PASEO E, Unit:5, Ontario, CA 91761 108.00 0218-545-09 3232 S NEWTON AV, Ontario, CA 91761 108.00
0218-604-55 3195 E OLYMPIC DR, Ontario, CA 91762 3,000.00 0218-881-35 3238 S CENTURION PL, Ontario, CA 91761 1,092.20 0238-012-30 5060 E FOURTH ST, Ontario, CA 91764 172.00
0238-012-34 5007 E ONTARIO MILLS PW, Ontario, CA 91764 540.00 0238-012-35 5005 E ONTARIO MILLS PW, Ontario, CA 91764 108.00 0238-051-33 0 E ONTARIO MILLS PW, Ontario, CA 91764 844.00 0238-081-51 5751 E SANTA ANA ST, Building:2, Ontario, CA 91761 1,379.78 0238-152-02 0 E SCE EASEMENT, Ontario, CA 91761 844.00
0238-152-09 0 E PHILADELPHIA ST, Ontario, CA 91761 844.00 0238-193-17 820 S WANAMAKER AV, Building:1, Ontario, CA 91761 108.00 1008-261-49 980 W SIXTH ST, Ontario, CA 91762 760.00
1008-462-25 933 W BONNIE BRAE CT, Ontario, CA 91762 170.00 1008-481-01 804 W LA DENEY DR, Ontario, CA 91762 120.00 1008-482-05 832 W HAWTHORNE ST, Unit:A, Ontario, CA 91762 340.00 1008-512-10 856 W HARVARD PL, Ontario, CA 91762 220.00
1008-513-16 1000 Fourth W, Ontario, CA 91762 172.00
1008-532-03 1008 W YALE ST, Ontario, CA 91762 170.00
1010-141-03 910 N MOUNTAIN AV, Ontario, CA 91762 220.00 1010-191-30 1025 W I ST, Ontario, CA 91762 115.40
1010-191-45 1048 W H ST, Ontario, CA 91762 172.00
1010-491-02 828 W HOLT BL, Ontario, CA 91762 340.00
1011-112-44 0 W BROOKS ST, Ontario, CA 91762 172.00
1011-121-24 1345 W HOLT BL, Building:1, Ontario, CA 91762 340.00 1011-181-11 1128 W MISSION BL, Building:2, Unit:F, Ontario, CA 91762 340.00 1011-391-69 939 W MISSION BL, Building:1, Unit:D, Ontario, CA 91762 320.00 1011-413-27 910 S PALMETTO AV, Ontario, CA 91762 108.00 1011-421-38 1022 S MAGNOLIA AV, Ontario, CA 91762 77.38 1014-111-04 1519 S OAKS AV, Ontario, CA 91762 8,020.00
1014-221-38 1221 W LOCUST ST, Ontario, CA 91762 172.00
1014-441-25 1387 FRANCIS ST W, Ontario, CA 91762 1,500.00 1014-532-04 2004 S PALMETTO AV, Ontario, CA 91762 8,784.00 1047-302-01 767 W LA DENEY DR, Ontario, CA 91762 120.00 1047-333-11 353 W BONNIE BRAE CT, Ontario, CA 91762 340.00 1047-372-12 634 E BONNIE BRAE CT, Ontario, CA 91764 3,131.12 1047-432-07 1129 E LA DENEY CT, Ontario, CA 91764 1,639.00

Page 2 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
1047-441-12 1314 N VIRGINIA AV, Ontario, CA 91764 79.12 1047-462-18 1125 N GROVE AV, Building:1, Ontario, CA 91764 510.00 1047-473-29 1017 E FOURTH ST, Building:1, Unit:A, Ontario, CA 91764 79.12 1047-473-39 1037 E FOURTH ST, Ontario, CA 91764 115.40
1047-502-18 737 E FOURTH ST, Unit:A, Ontario, CA 91764 120.00 1047-502-21 723 E FOURTH ST, Ontario, CA 91764 108.00
1047-521-45 634 E FIFTH ST, Ontario, CA 91764 120.00
1047-521-62 565 E YALE ST, Ontario, CA 91764 3,709.20
1047-542-02 1106 N EUCLID AV, Ontario, CA 91764 172.00
1047-543-31 315 E FOURTH ST, Ontario, CA 91764 6,840.00 1048-012-05 739 W J ST, Ontario, CA 91762 220.00
1048-022-07 625 W ROSEWOOD CT, Ontario, CA 91762 520.00 1048-032-36 632 W I ST, Ontario, CA 91762 120.00
1048-052-14 132 W J ST, Ontario, CA 91762 172.00
1048-081-24 650 E J ST, Ontario, CA 91764 379.60
1048-081-33 641 E PLAZA SERENA ST, Ontario, CA 91764 1,904.10 1048-093-26 627 E J ST, Ontario, CA 91764 108.00
1048-111-26 705 E PLAZA SERENA ST, Ontario, CA 91764 108.00 1048-123-17 1023 E I ST, Ontario, CA 91764 2,935.86
1048-131-27 1027 N CUCAMONGA AV, Ontario, CA 91764 172.00 1048-132-08 952 E ROSEWOOD CT, Ontario, CA 91764 4,409.15 1048-383-15 617 N CAMPUS AV, Ontario, CA 91764 340.00
1048-411-16 760 E G ST, Ontario, CA 91764 420.00
1048-471-14 1117 E HOLT BL, Ontario, CA 91761 172.00
1048-561-10 220 W C ST, Ontario, CA 91762 172.00
1048-565-10 203 N EUCLID AV, Ontario, CA 91762 420.00
1048-565-11 112 W B ST, Ontario, CA 91762 120.00
1048-566-05 317 N EUCLID AV, Building:1, Unit:A, Ontario, CA 91762 1,347.59 1048-581-28 301 N VINE AV, Ontario, CA 91762 172.00
1049-011-09 767 W BROOKS ST, Ontario, CA 91762 172.00
1049-012-18 145 S CYPRESS AV, Ontario, CA 91762 172.00
1049-021-26 559 W HOLT BL, Ontario, CA 91762 172.00
1049-043-03 211 W MAIN ST, Ontario, CA 91762 172.00
1049-057-05 112 S EUCLID AV, Building:1, Ontario, CA 91762 144.60 1049-101-10 756 E HOLT BL, Unit:A, Ontario, CA 91761 490.00 1049-111-01 316 S BON VIEW AV, Building:2, Ontario, CA 91761 172.00 1049-111-05 725 E STATE ST, Building:1, Ontario, CA 91761 172.00 1049-111-06 235 S CAMPUS AV, Unit:A, Ontario, CA 91761 172.00 1049-221-32 550 E SUNKIST ST, Ontario, CA 91761 672.00
1049-231-05 520 E STATE ST, Ontario, CA 91761 12,405.00 1049-244-04 515 S LEMON AV, Ontario, CA 91761 1,608.00

Page 3 ends

City of Ontario
Community Improvement Department
2026/2027 Tax Roll Year Special Assessments
Exhibit C - Total Amounts per Parcel
Parcel Number Address Amount Due
1049-245-01 302 E STATE ST, Ontario, CA 91761 172.00
1049-245-06 404 S CHERRY AV, Building:1, Ontario, CA 91761 120.00 1049-253-09 215 E NEVADA ST, Ontario, CA 91761 172.00
1049-272-09 402 W SUNKIST ST, Ontario, CA 91762 108.00
1049-303-29 601 S CYPRESS AV, Ontario, CA 91762 668.80
1049-365-11 910 S CALDWELL AV, Ontario, CA 91761 170.00 1049-366-09 901 S CALDWELL AV, Ontario, CA 91761 844.00 1049-367-11 902 S HOPE AV, Ontario, CA 91761 22,720.00
1049-368-01 931 S HOPE AV, Ontario, CA 91761 172.00
1049-371-07 904 E CALIFORNIA ST, Ontario, CA 91761 120.00 1049-392-04 1030 S GROVE AV, Ontario, CA 91761 172.00
1049-392-05 1044 S GROVE AV, Ontario, CA 91761 172.00
1049-392-06 1050 S GROVE AV, Ontario, CA 91761 172.00
1049-501-01 1129 S SULTANA AV, Ontario, CA 91761 172.00 1049-503-13 1104 S CAMPUS AV, Ontario, CA 91761 79.12
1049-573-28 562 W RALSTON ST, Unit:A, Ontario, CA 91762 92.00 1050-081-19 1431 S EUCLID AV, Ontario, CA 91761 108.00
1050-091-01 1563 S SULTANA AV, Ontario, CA 91761 46.00
1050-102-04 631 E DE ANZA ST, Ontario, CA 91761 3,531.40 1050-281-27 119 W MAPLE ST, Ontario, CA 91762 172.00
1050-284-01 1724 S EUCLID AV, Building:3, Ontario, CA 91762 220.00 1050-401-28 301 E GREVILLEA ST, Ontario, CA 91761 340.00 1050-441-04 1954 S BON VIEW AV, Ontario, CA 91761 1,922.40 1050-623-03 2020 S VINE AV, Ontario, CA 91762 108.00
1050-661-14 1459 S EUCLID AV, Unit:22, Ontario, CA 91761 79.12 1051-051-72 2252 S EUCLID AV, Building:1, Unit:A, Ontario, CA 91762 1,235.61 1051-271-06 2556 S EUCLID AV, Ontario, CA 91762 228.00
1051-321-62 2550 S GROVE AV, Building:1, Ontario, CA 91761 108.00 1051-511-06 340 W ST. ANDREWS ST, Ontario, CA 91762 2,137.80 1051-581-53 958 E COTTONWOOD ST, Ontario, CA 91761 228.00 1051-613-03 451 E RIVERSIDE DR, Building:A, Unit:1, Ontario, CA 91761 57.00 1052-531-01 0 E SCHAEFER AV, Ontario, CA 91761 172.00
1073-281-28 2717 E MURDOCK LN, Ontario, CA 91762 115.40 1083-011-15 2548 S ARCHIBALD AV, Ontario, CA 91761 228.00 1083-051-33 2832 S CANTERBURY TR, Ontario, CA 91761 120.00 1083-142-05 3209 E CLEAR LAKE RD, Ontario, CA 91761 170.00 1083-301-02 2910 S LAUREL TREE DR, Ontario, CA 91761 170.00 160 263,542.57

Page 4 ends

Department: Building
Prepared By: Emily Medina
Department:

Prepared By: Emily Medina
Staff Member Presenting: Rudy Zeledon,
Executive Director Community Development
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 6
SUBJECT:

AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL

ELECTRONIC ARCHIVING OF BUILDING PLANS

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT:

Amendment No. 3 with OB Reprographics, Inc. will increase the contract amount by $141,375, for a total not-to-exceed amount of $259,218, to complete the electronic archiving of building plans. The Fiscal Year 2025-26 Adopted Budget includes appropriations in the General Fund for on-call electronic archiving of building plans.

BACKGROUND & ANALYSIS:

The Building Department implemented digital plan submittals in early 2023 to improve operational eﬃciency, enhance record retention, and streamline access to plans for both staﬀ and the public. To support this transition, the Department required a reprographics ﬁrm to digitize its existing paper plans. Ontario Municipal Utilities Company (OMUC) already held a contract with OB Reprographics, Inc., a local small business based in Ontario. The original contract amount was for $45,000. The Building Department was able to join this contract through the following amendments:

Amendment No. 1 (dated May 28, 2024):

The Building Department was added to the contract,
which was extended for one year through October 31, 2024, and the contract amount was increased by $22,843.15, resulting in a new not-to-exceed (NTE) amount of $67,843.15.

Amendment No. 2 (dated April 9, 2025):

OMUC extended the contract for an additional two
years through October 31, 2026, and increased the contract amount by $50,000, resulting in a revised NTE of $117,843.15.
71 With the proposed
Amendment No. 3
, the Building Department will be able to digitize all remaining paper plans currently stored in the oﬃce. This amendment will increase the contract amount by $141,375.00, for a total not-to-exceed amount of $259,218. This increase will ensure the completion of electronic archiving for all remaining paper plan records. 72 PROPOSAL
2000. S. Grove Ave Suite 101
Ontario, CA 91761
(909) 923-5878
Prepared Exclusively For:

CITY OF ONTARIO

JAMES CARO & EMILY MEDINA
Prepared By:

Nathan Tjioe
12/08/2025
73 74

3. References

1. City of Chino
Public Works Dept.

Isaac
Ortega - Permit Processing Specialist Telephone:
909-464-8365

2. Savant Construction
Matthew Hinkley
13830 Mountain Ave.

Chino, CA
91710
T
elephone: 909-614-4300

3. Pfeiler and Associates Engineers
Don Masukawa, P.E.
14181 Fern Ave., Chino, CA 91710
T
elephone: 909-993-5800

4. Chaffey Union Joint District Gigi
Crist,
Facilities Secretary
211 W. Fifth St, Ontario, CA 91762
T
elephone: 909-988-8511

5. Tilden Coil Constructors
Michelle Prokop,
Senior Project Manager
3612 Mission Inn Avenue, Riverside, CA 92501
Telephone: 951-684-5901

6. Ontario Municipal Utilities
Ivan Sanchez, Senior Project Manager
1333 S Bon View Ave, Ontario, CA 91761
Telephone: 909-395-2050
75 4. Contact Page
• Address:
2000. S. Grove Ave Suite 101A
Ontario, CA 91761
Phone: (909) 923-5878
Fax: (909) 923-5938
Web address: www.ontarioblueprint.com
Email : [email protected]
• 24 Hr contact information
• Nathan Tjioe
cell phone (909) 223-4428
• Rick Gebhardt
Cell phone (909)331-6144
76 5. Pricing for Quote
for scanning
any blueprint sheet $.80 cents to
$1.20 cents
sheet specs $0.10c per image
150,000 blueprint sheets &
250,000 specs Sheets
estimate total $130,000.00 plus tax
total of $141,375.00
77 78
79 80
Department: Management Services
Prepared By: Claudia Y Isbell
Staff Member Presenting: Darlene M. Sanchez,
Assistant City Manager
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 7
SUBJECT:

ADOPTION OF ORDINANCE ESTABLISHING HOTEL EMPLOYEE SAFETY

REGULATIONS

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council consider and adopt an Ordinance establishing safety regulations for hotel employees.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy FISCAL IMPACT:

There is no fiscal impact directly related to the adoption of this Ordinance.

BACKGROUND & ANALYSIS:

On December 16, 2025, the City Council introduced and waived further reading of an Ordinance establishing safety regulations for hotel employees. The City of Ontario’s reputation as a Business-Friendly City extends to the ongoing and continuous improvement to infrastructure, public safety, and quality of life for its residents and businesses. As a result of a recent initiative eﬀort, Staﬀ has drafted an Ordinance establishing regulations to protect hotel workers, thereby helping to keep hotel workers in the City of Ontario safe.

The Ordinance is designed to create and strengthen workplace safety for hotel employees.

Key highlights of this Ordinance include:

Requirement of hotels to maintain dependable emergency response systems by designating trained personnel, such as security staﬀ or on-duty managers, who are responsible for responding to alerts.

At least one trained responder must be present at all times, and the training must cover hotel procedures, device operation, and the rights afforded to employees under the ordinance.

Hotel employees may keep guest room doors open while cleaning, and employees who report threatening or violent guest behavior must be reassigned away from the oﬀending guest upon request.

Prohibits retaliation, requires employers to allow employees time to contact law enforcement, and mandates cooperation with any police investigation.

Hotels must also provide written notice of these rights and procedures in the primary languages spoken by more than ten employees.
81 Staﬀ recognizes the need for an Ordinance establishing Hotel Worker Safety and recommends the City Council adopt the Ordinance.
82 ORDINANCE NO. ________

AN ORDINANCE OF THE CITY COUNCI L OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING HOTEL EMPLOYEE SAFETY REGULATIONS.

WHEREAS, H otel employees who work by themselves could be vulnerable to crimes and other threatening behavior, including sexual assault; and

WHEREAS, this City of Ontario, by way of this Ordinance can enable hotel workers to protect their safety by requiring that hotel employers provide each hotel employee assigned to work in a guest room or restroom without other employees present, with personal safety devices which they may use to report threatening conduct by a hotel guest and other emergencies; and

WHEREAS, many instances of sexual assault go unreported to the police, this Ordinance also includes provisions that support hotel employees' ability to report criminal and threatening guest behavior to the proper authorities; and

WHEREAS, the City of Ontario recognizes the threats to hotel employees and wishes to protect the safety of hotel employees.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES ORDAIN AS FOLLOWS:

SECTION 1. The City Council hereby finds and determines that the recitals set forth above are true and correct and are hereby incorporated and adopted as findings and determinations by the City Council as if fully set forth herein.

SECTION 2. Definitions.

A. "Emergency" means an immediate threat to public safety or of substantial risk of property loss or destruction.

B. "Guest" means registered guests, others occupying guest rooms with registered guests, and visitors invited to guest rooms by a registered guest or other occupant of a guest room.

C. "Guest room" means a room made available by a hotel for transient occupancy.

D. "Hotel" means structures as defined by City of Ontario Municipal Code section 3-6.02, or suites of rooms, and includes motels as defined by City of Ontario Municipal Code section 3-6.02.

E. "Hotel employee" means any individual who is em ployed directly by the hotel employer or by a person who has contracted with the hotel employer to work in guest rooms or restrooms without other employees present.

83 F. "Hotel employer" means a person who owns, controls, and/or operates a hotel in the City of Ontario , or a person who owns, controls, and/or operates any contracted, leased, or sublet premises connected to or operated in conjunction with the hotel's purpose.

G. "Personal safety device" means an emergency electronic geo-located contact device carried by a hotel employee by which the hotel employee may summon immediate on-scene assistance from a security guard or other person employed by the hotel.

H. "Person" means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.

SECTION 3. Measures to protect hotel employees from harassment and assault.

A. Personal safety device s. A hotel employer shall provide a personal safety device to each hotel employee assigned to work in a guest room or restroom without other employees present, regardless of job classification, at no cost to the hotel employee.

It is recognized that because of the varying size and physical layout of each hotel, different devices may be appropriate for different hotels. A hotel emp loyee may use the personal safety device if the hotel employee reasonably believes there is an ongoing crime, threatening behavior, or other emergency in the hotel employee's presence. The hotel employee may cease work and leave the immediate area of danger to await the arrival of assistance.

B. Hotels shall designate security personnel or on duty managers as being responsi ble for responding to personal safety device alerts. Such individuals should receive a minimum of two ( 2) hours of training on the Ho tel’s procedures for response, the functioning and operation of the personal safety devices and employee rights as delineated in this Chapter. The Hotel shall have at least one (1) such designated and trained individual on duty at all times.

C. Hotel employees' rights.

1. The hotel employer must allow guest room doors to be left open during cleaning.

Nothing herein shall prevent a hotel employee from voluntarily electing to keep a guest room door closed during cleaning as the hotel employee sees fit.

2. A hotel employee who brings to the attention of a hotel employer the occurrence of violence or threatening behavior, including but not limited to indecent exposure, solicitation, assault, or coercive sexual conduct by a guest shall be afforded the following rights:

a. If the hotel employee reasonably believes that his or her safety is at risk and so requests, the hotel employee shall be reassigned to a different work area, away from the person who is alleged to have engaged in the threatening 84 behavior or violence or for the duration of any continued occupancy by the person at the hotel;

b. The hotel employer (i) shall immediately allow the affected hotel employee , if he or she so chooses, sufficient time to contact the police and provide a police report or statement and (ii) shall not in any way discourage an employee from making such report and shall not discipline or retaliate against an employee for making or choosing to not make such report;

c. The hotel employer shall cooperate with any investigation into the incident undertaken by the law enforcement agency with jurisdiction;

d. A hotel employer shall not discipline, discharge or in any manner discriminate or retaliate against an employee who reasonably uses a personal safety device or brings to the attention of a hotel employer the occurrence of violence or threatening behavior, including but not limited to indecent exposure, solicitation, assault, or coercive sexual conduct by a guest; and

e. Each hotel employer shall give writte n notification to each current hotel employee, and to each new hotel employee at the time of hire, of his or her rights under this Section and the Hotel’s procedures and protocols regarding personal safety devices and responding to a personal safety device alert. The notification shall be in each primary language spoken by more than ten (10) hotel employees.

SECTION 4. Application to existing hotels. Any hotel containing fifty (50) or more guest rooms, or suites of rooms, operating under an existing business license on the effective date of this Chapter shall be brought into full compliance with the provisions of this Chapter, not later than twelve (12) months following the effective date of this Chapter. All other hotels containing less than fifty (50) guest rooms, or suites of rooms, operating under an existing business license on the effective date of this Chapter shall be brought into full complianc e with the provisions of this Chapter, not later than eighteen (18) months following the effective date of this Chapter.

SECTION 5. Severability. If any provision or application of this Chapter is declared illegal, invalid or inoperative, in whole or in part, by any court of competent jurisdiction, the remaining provisions and portions thereof shall remain in full force or effect. The courts are hereby authorized to reform the provisions in this Chapter in order to preserve its maximum permissible effect.

SECTION 6. Relationship to other ordinances . These provisions are not intended to abrogate or impair the provisions of any other se ction of this Code which is not in conflict with the provisions of this Chapter. However, in the event of a conflict between the provisions of this Chapter and the provisions of any other ordinance, the provisions of the Code that establish the more string ent, superior or higher standards shall control.

85 SECTION 7. Enforcement. Notwithstanding any other provision of law, alleged violations of this Chapter shall be enforced exclusively by [city agency name] pursuant to Municipal Code section [number]. Violations of this Chapter shall be subject to an administrative fine of up to $500 for an initial violation, and up to $1,000 for a subsequent violation. “Violation” means each incident when an alleged violation was committed, without reference to the nu mber of employees affected by the alleged violation.

SECTION 8. Effective Date. This Ordinance shall take effect thirty (30) days after its adoption.

PASSED, APPROVED, AND ADOPTED this 20th day of January 2026.

_____________________________________
PAUL S. LEON, MAYOR

ATTEST:

_________________________________

SHEILA MAUTZ, CITY CLERK

APPROVED AS TO FORM:

__________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY

86 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )

I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Ordinance No. ____ was duly introduced at a regular meeting of the City Council of the City of Ontario held December 16 , 202 5 and adopted at the regular meeting held January 20, 2026 by the following roll call vote, to wit:

AYES: MAYOR/COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

_________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

I hereby certify that the foregoing is the original of Ordinance No. ____ duly passed and adopted by the Ontario City Council at their regul ar meeting held January 20, 2026 and that Summaries of the Ordinance were published on _______ and _______, in the Inland Valley Daily Bulletin newspaper.

__________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

87 Department: Financial Services
Prepared By: Mary Ann Sy
Department:

Prepared By: Mary Ann Sy
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 8
SUBJECT:

ANNUAL COMPRENHENSIVE FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025, AND AB 1600 DEVELOPMENT IMPACT FEE ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2025

CITY OF ONTARIO
Agenda Report
January 20, 2026
SECTION:

CONSENT CALENDAR

RECOMMENDATION:

That the City Council accept the City of Ontario’s Annual Comprehensive Financial Report (ACFR) for the Fiscal Year ended June 30, 2025, and the City of Ontario's AB1600 Development Impact Fee (DIF) Annual Report for Fiscal Year ended June 30, 2025.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT:

There is no direct ﬁscal impact as a result of both of these actions. However, the City’s receipt of an unqualiﬁed audit report with no material internal control weaknesses or signiﬁcant deﬁciencies reported, can result in enhanced bond ratings.

In addition, the AB1600
Development Impact Fee (DIF) annual report is submitted to the City Council for informational purposes only, as it strictly reports on the DIF funds.

BACKGROUND & ANALYSIS:

The primary objectives of a ﬁnancial audit are: (1) to express an opinion on the fairness of the ﬁnancial statements in conformity with Generally Accepted Accounting Principles (GAAP); and (2) to determine whether the City has complied with applicable legal requirements in obtaining and expending public funds.

The audit for Fiscal Year 2024-25 was performed in accordance with Generally Accepted Auditing Standards (GAAS) by the accounting ﬁrm of Badawi & Associates. These standards are required to obtain reasonable assurances that the general-purpose ﬁnancial statements are free from material misstatements. The opinion given in the Independent Auditors Report states that the "ﬁnancial statements present fairly, in all material respects, the respective ﬁnancial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Ontario, California, as of June 30, 2025, and the respective changes 88 in ﬁnancial position and, where applicable, cash ﬂows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.” In addition, City staﬀ has ensured the audited ﬁnancial statements were made available for the public and the City Council review prior to the December 31, 2025, deadline, as required by law. The audited ﬁnancial statements for Fiscal Year ended June 30, 2025, is available on the City's website at:
https://www.ontarioca.gov/government/financial-services/budget-and-financial-reports.

On July 1, 2003, the City Council adopted Ordinance Nos. 2779 and 2780, approving the collection of Development Impact Fees (DIF) to mitigate the impacts of future development. In accordance with the provisions of Ordinances listed, the City began collecting DIF on September 1, 2003, and the impact fees have been updated periodically by Resolutions of the City Council. The fees that were used for the attached AB1600 DIF Annual Report for Fiscal Year ended June 30, 2025, were authorized by the City Council on September 17, 2019, and August 16, 2022, by Resolution No. 2019-135 and No. 2022-133, respectively. California Government Code Sections 66001 and 66006 require making certain DIF information available to the public. The City of Ontario addresses these reporting requirements through issuance of the AB1600 DIF Annual Report along with the release of periodic updates to the City’s development impact fee calculation and nexus schedules.

The AB1600 DIF Annual Report for Fiscal Year ended June 30, 2025, is comprised of the following schedules: Development Impact Fee Annual Report Fees Schedule by Fund and Land Use, Development Impact Fee Annual Report, Development Impact Fee Annual Report Project Expenditures, Development Impact Fee Annual Report Estimated Project Start Date. The City of Ontario's AB1600 DIF Annual Report for Fiscal Year ended June 30, 2025, as well as the Fiscal Year 2021-22 Development Impact Fee Calculation and Nexus Report, and the Master Facilities Plan for Fiscal Year 2021-22 are available for review and reference at the City's Records Management Department and on the City's website at:
https://www.ontarioca.gov/government/financial-
services/development-impact-fees
.
89 Executive Overview
Annual Comprehensive Financial Report
for Fiscal Year Ended June 30, 2025
90 • An Annual Comprehensive Financial Report (ACFR) is a set of governmental financial statements comprising the financial report of a U.S. governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board (GASB).
• ACFR is compiled by a governmental accounting staff and audited by an external American Institute of Certified Public Accountants (AICPA) certified accounting firm utilizing GASB requirements.
• The primary objectives of a financial audit are:
o To express an opinion on the fairness of the financial statements in conformity with generally accepted accounting principles; and
o To determine whether the City has complied with applicable legal requirements in obtaining and expending public funds.

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025
291
• The audit for Fiscal Year 2024-25 was performed in accordance with generally accepted auditing standards by the accounting firm of Badawi & Associates, CPAs. • These standards are required to obtain reasonable assurances that the general- purpose financial statements are free from material misstatements. • The opinion given in the Report of the Independent Auditors states that the general- purpose financial statements present fairly, in all material respects, the financial position of the City of Ontario on June 30, 2025, and
• The results of the City’s operations are in accordance with generally accepted accounting principles.

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025 (Cont’d)
392
Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025 – Financial Highlights
• The City’s overall Net Position or Net Worth as of June 30, 2025 is $2.22 Billion. o A slight increase in the City’s financial position of approximately $.11 million. • The City’s investment in Capital Assets amounts to $2.06 Billion as shown on slide 6. o This investment in Capital Assets includes land, buildings and improvements, machinery and equipment, infrastructure, intangible assets, and construction in progress. • The largest portion of the City’s net position, also shown on slide 6, is Net Investment in Capital Assets in the amount of $1.36 Billion.
• The City uses these capital assets to provide services to Citizens; consequently, these assets are not available for future spending.
• Overall Revenues: $ 826.37 Million
• Overall Expenditures: $ 713.54 Million
• Cash and Investments: $1,006.93 Million
o The City maintains reasonable liquidity to meet maturing obligations and maximizing return using competitive rate comparisons from various investment sources. 493
• As of June 30, 2025, the City’s General Fund had an assigned fund balance for the stability reserve $87.50 million, which achieves the 20 percent of General Fund expenditures, in compliance with the City’s adopted fund balance and reserve policy.
• Revenue Increases
o Increase in sales tax revenues primarily due to the opening of new Amazon facility in fall of 2024 o Increase in property tax revenues because of growth in property valuations and new commercial and residential development, mainly in Ontario Ranch
o Increase revenue in miscellaneous, primarily due to increase in revenues received from the Toyota Arena
• Expenditure Increases
o Increase in personnel costs relating to approved labor costs and contractual services o Rising materials and supplies costs due to inflation and supply chain challenges

Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2025 – Financial Highlights (General Fund)
594
Statement of Net Position
Assets - resources owned and controlled by the
City that are expected to benefit future operations.

Deferred Outflows of Resources - the consumption
of net assets applicable to future reporting period.

For example, deferred amounts for bond refunding,
pensions and OPEB .

Liabilities - debt or obligations that the City must
pay.

Deferred Inflows of Resources – the acquisition of
net assets applicable to future reporting period. For
example, unavailable revenue, leases receivable,
pensions and OPEB.

Net Investment in Capital Assets - represent the
City's investment in capital assets, less any related
outstanding debt used to acquire those assets.

Net Position - reflects the City's net worth
(Net Position = Assets + Deferred Outflows of
Resources - Liabilities - Deferred Inflows of
Resources).
6 2025 2024 2023
Current and Other Assets $1,510,370,662 $1,448,816,210 $1,481,820,522 Capital Assets 2,066,321,215 1,634,445,264 1,609,526,264 Deferred Outflows of Resources 111,188,799 177,223,314 180,171,316 Total Assets and Deferred Outflows of
Resources $3,687,880,676 $3,260,484,788 $3,271,518,102
Current Liabilities $314,344,965 $212,283,421 $173,378,667 Noncurrent Liabilities 1,110,445,432 873,492,201 869,840,924 Deferred Inflows of Resources 47,720,360 72,055,873 98,751,701 Total Liabilities and Deferred Inflows
of Resources $1,472,510,757 $1,157,831,495 $1,141,971,292 Net investment in Capital Assets $1,356,983,388 $1,271,084,986 $1,231,821,298 Restricted 344,802,681 291,840,481 298,040,544
Unrestricted 513,583,850 539,727,826 599,690,197
Total Net Position $2,215,369,919 $2,102,653,293 $2,129,552,039 Statement of Net Position as of June 30,
95 Statement of Activities – Revenues (All Funds)
Charges for Services - revenues
generated from licenses, permits, other
fees, fines, forfeitures, and charges
paid by the recipients of goods and
services offered by the City programs.

Operating/Capital Contribution and
Grants - grants and contributions from
other governments, organizations and
individuals that are restricted in some
manner.

Taxes - property tax, sales tax,
transient occupancy tax, business
license tax, franchise fees and other
taxes.
7 2025 2024 2023
Revenues:

Charges for Services $344,970,670 $277,793,609 $314,281,776 Operating/Capital Contributions and Grants 55,044,291 80,018,587 81,961,284 Taxes 361,285,073 336,769,183 280,079,759 Motor Vehicle In Lieu – Unrestricted 285,738 223,224 184,008 Use of Money and Property 55,246,587 49,879,005 16,484,117 Other 3,751,210 11,357,191 23,872,727 Gain on Sale of other Investments 5,791,452 - (43) Special Item - - -
Total Revenues $826,375,021 $756,040,799 $716,863,628
Statement of Activities as of June 30,
96 Statement of Activities – Expenses and Net Position (All Funds) Governmental Activities – most of the City’s
basic services are reported here, including
General Government (Elected Officials,
Management Services, Financial Services and
Human Resources), Public Safety (Police, Fire
& Community Improvement), Community
Development (Housing, Building, Planning,
Economic Development, Recreation, Library
and Museum), and Public Works (Parks,
Streets & Engineering). Revenues from
property taxes, sales tax, transient
occupancy tax (TOT), parking tax, business
license tax, etc., finance most of these
activities.

Business-Type Activities – the City charges a
fee to customers to recover all or most of the
cost of certain services it provides. The City’s
water, sewer, and integrated waste
operations are reported in this category.
8 * Restatement due to adjustments to correct capital assets, Property Held for Resale, Other Investments, SBITA Liabilities and Implementation of GASB 101 Compensated Absences ** Realignment of Engineering from Community Development to Public Works, effective July 1, 2024. 2025 ** 2024 2023
Expenses:

Governmental Activities
General Government $65,594,979 $82,460,810 $67,731,301
Public Safety 258,987,243 255,505,920 228,863,410
Community Development 150,474,389 77,732,808 111,954,023 Public Works 67,028,991 80,567,818 26,209,165
Interest on Long-Term Debt 21,098,167 14,870,799 15,226,418 Business-Type Activities
Water 49,795,227 64,903,096 54,989,884
Sewer 36,304,027 32,945,136 28,183,295
Integrated Waste 64,257,799 54,992,226 41,931,502
Total Expenses $713,540,822 $663,978,613 $575,088,998
Changes In Net Positions (Revenues less Expenses) 112,834,199 92,062,186 141,774,630 Net Position, July 1 2,102,653,293 2,129,546,810 1,989,273,242 Restatement of Net Position* (117,573) (118,955,703) (1,501,062) Total Net Position $2,215,369,919 $2,102,653,293 $2,129,546,810 Statement of Activities as of June 30,
97 General Fund Revenues
9 2025 2024 2023
Revenue By Source:

Property Tax $105,249,239 $98,742,225 $89,800,425
Sales Tax 203,410,213 184,307,995 140,501,064 Transient Occupancy Tax 16,671,971 16,625,996 16,964,564 Other Taxes 19,931,984 21,465,830 19,823,126 Licenses & Permits 10,817,111 7,879,656 12,608,106 Intergovernmental 17,980,405 23,173,611 16,401,508 Charges for Services 54,872,910 55,383,343 51,923,310 Use of Money & Property 6,549,559 5,137,055 1,224,323 Fines & Forfeitures 1,419,576 1,141,324 959,216 Miscellaneous 16,556,435 7,098,255 6,607,104 Total Revenues By Source $453,459,403 $420,955,290 $356,812,746 General Fund Revenues as of June 30,
98 General Fund Expenditures by Function
10 2025 2024 2023
Expenditures By Function:

General Government $42,124,271 $38,712,927 $29,686,747
Public Safety 238,241,478 230,431,183 196,602,479
Community Development 79,095,855 85,809,117 63,535,293
Public Works 31,718,260 9,460,576 8,908,679
Debt Service 3,425,357 3,289,102 3,953,662
Total Expenditures By Function $394,605,221 $367,702,905 $302,686,860 General Fund Expenditures as of June 30,
99 General Fund Available Resources
General Fund - includes the following funds:

General Fund and General Fund – Measure Q.

Nonspendable – portion of resources that cannot
be spent because of their type. For example,
inventories and prepaid costs.

Restricted – limitations imposed by grantors,
laws or regulations.

Committed – limitation imposed at the highest
level of decision making that requires formal
action at the same level to remove.

Assigned – intended use established by the
highest level of decision-making body
designated for that purpose. For example, the
18 percent Stabilization Plan and equipment
replacement.

Unassigned – available for appropriations.
11 2025 2024
Nonspendable:

Prepaid and Inventory 762,300$ 657,229$ Notes and Loans 48,000 365,462
Advances to Other Funds 3,500,000 3,500,000 4,310,300$ 4,522,691$
Restricted:

Endowment/Trust 395,780 383,445
395,780$ 383,445$
Committed:

City Infrastructure - -
-$ -$
Assigned:

Airport Authority -
Inland System Project -
Compensated Absences - -
Continuing Appropriations 111,638 1,620,018 Economic Uncertainty 20,000,000 20,000,000 Stabilization Arrangement 87,499,338 73,354,731 107,610,976$ 94,974,749$
Unassigned -
Total General Fund Reserves 112,317,056$ 99,880,885$
General Fund Reserves as of June 30,
100
Long-Term Debt Schedule
12 1. Ratios are calculated using personal income
and population for the prior calendar year.

2. In 2025 the Ontario Public Financing Authority
issued Lease Revenue Bonds in the amount of
$192,435,000, to finance the acquisition and
construction of capital projects.

3. In 2023 the City entered into a purchase and
loan agreement with the Ronald and Kristine
Pietersma Family Trust in the amount of
$120,0000,000, in order to provide funding for
the construction of the sports complex. In
2023 the City entered into a purchase and sale
agreement with 15 Dairy River, LLC for the
purchase of property to be used for the
construction of a sports complex in the amount
of $28,690,200.
2 3
Per Capita $5,150 $3,752 $3,938
Percentage of Personal Income 1 17.75% 14.33% 16.05%
Total Primary Government $944,725 $679,695 $705,187
Revenue Bonds 110,239 62,625 65,190
Total Business-Type Activities 110,239 62,625 65,190
Total Governmemtal Activities 834,486 617,070 639,997
Business-Type Activities
Revenue Obligation Bonds 455,774 258,159 259,617 Loans 167,557 141,096 156,715
General Obligations - - - Pension Obligation Bonds 211,155 217,815 223,665 Ratio of Outstanding Debt by Type
(dollars in thousands, except per capita)
2025 2024 2023
Governmental Activities
101

FISCAL YEAR ENDED
JUNE 30, 2025
ANNUAL

COMPREHENSIVE
102
Across Ontario, progress is thriving. In 2024, the City broke ground on transformative developments designed to drive sustained growth and opportunity. These initiatives go beyond construction; they represent deliberate investments in a shared vision of a connected community filled with vibrant districts and neighborhoods.

Under the guidance of the City Council, Ontario continues to focus on community, infrastructure, and economic potential.

These efforts aren’t just for today; they are shaping Ontario into a destination where businesses thrive, families flourish, and opportunities are endless.

Ontario’s neighborhoods are the foundation of our
community, offering one of the region’s most diverse housing stocks—from market-rate and workforce-attainable housing to vital programs supporting those in need. In 2024, Emporia Place Phase II delivered 50 workforce-attainable units, while the Vista Verde Apartments began plans to add 1 4 1 affordable units, expanding options for residents at all income levels.

Through Measure Q, Ontario is addressing homelessness
and mental health challenges with transformative initiatives.

The forthcoming Continuum of Care Campus will provide 1 20 to 1 77 low-income housing units, while the temporary Access Center on West Mission Boulevard will deliver critical services to those in need.

Complementing these programs, Ontario continues to
invest in its parks and public spaces. Recent enhancements include a new playground at Bon View Park, a fitness court and playground at Homer F . Briggs Park, and the new X-Treme Fitness Course at John Galvin Park, ensuring residents have access to modern, inclusive recreational facilities.

At the heart of the City, the Ontario Civic Center Expansion is driving downtown revitalization. This transformative project includes a three-story, 68,42 1-square-foot City Services Building, a six-level parking structure with 82 1 spaces, and the new Fire Station 1. These facilities will centralize operations, enhance efficiency, and ensure the delivery of high-quality services while boosting the downtown daytime population and maximizing available space.

Downtown’s residential and retail offerings continue
to grow with the C-Block mixed-use project by Hutton
Companies and Kendrew Development, which added 1 44
luxury apartments and 5,000 square feet of retail space.

Expansion plans include 73 additional residential units east of C-Block and the new D-Block project, set to introduce 109 market-rate units and 6,250 square feet of ground-floor retail, further enhancing downtown’s vibrancy and appeal.

As the future home of the Single-A Dodgers baseball
affiliate, the Ontario Sports Empire will further elevate the City’s reputation as a premier destination for sports and entertainment. Beyond its recreational appeal, the complex is projected to attract 1.2 million visitors annually, generate $1.5 million in new tax revenue, and create 6 10 full-time jobs, becoming a significant economic driver for the region. With construction already underway, opening day is scheduled for April 2026.

Together, we are building a stronger and unified Ontario; one street, one project, and one neighborhood at a time.

Pardon Our Dust, we are building the Premier Community of the Inland Empire.
*Source: City of Ontario Economic Development Agency
ONTARIO – THE PREMIER COMMUNITY
103
City of Ontario, California

ANNUAL COMPREHENSIVE

FINANCIAL REPORT
For Fiscal Year Ending June 30, 2025
Prepared By:

Financial Services Agency
104
105

INTRODUCTION
106

INTRODUCTION
107
City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page
IN

TRODUCTORY SECTION
Table of Contents ............................................................................................................................................................ i Letter of Transmittal ......................................................................................................... ............................................ v Principal Officers ......................................................................................................................................................... xv Citywide Organizational Chart ................................................................................................................................ xvi

FINANCIAL SECTION
Independent Auditor’s Report ................................................................................................................................... 1 Management’s Discussion and Analysis ................................................................................................................. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................... ................................. 34 Statement of Activities ..................................................................................................... .................................... 36 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet – Governmental Funds ......................................................................................... .................... 42 Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position ................................................................................................. ............................. 44 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ............................................................................................. ..................... 46 Reconciliation of the Governmental Funds Statement of Revenue, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities ...................................... 48 Proprietary Fund Financial Statements:

Statement of Net Posi tion – Proprietary Funds ............................................................................................. 50 Statement of Revenues, Expenses and Changes in Fund
Net Position – Proprietary Funds .......................................................................................... ....................... 53 Statement of Cash Flows – Proprietary Funds .............................................................................................. 54 Fiduciary Fund Financial Statements:

Statement of Fiduciary Ne t Position – Fiduciary Funds .............................................................................. 57 Statement of Changes in Fiduciar y Net Position – Fiduciary Funds ......................................................... 58 Notes to Basic Financial Statements ................................................................................................................... 61 i
108
City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION, Continued
Required Supplemental Information:

Budget and Comparison Information – General Fund Budget Policies ......................................................... 137 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

General Fund ................................................................................................................ ....................................... 138 Ontario Housing Authority ................................................................................................... ............................ 140 Modified Approach for Infrastructure Capital Assets ............................................................................................... 141 Schedule of Changes in the Net Pension Liability and Related Ratios:

Miscellaneous Plan......................................................................................................................................................... 144 Safety Police Plan .......................................................................................................... ....................................... 146 Safety Fire Plan ............................................................................................................ ......................................... 148 Schedule of Pension Plan Contributions ....................................................................................................................... 150 Schedule of Changes in the OPEB Liability and Related Ratios ........................................................................... 152 Schedule of OPEB Contributions ........................................................................................................................... 154 Supplementary Information:

Combining and Individual Fund Statements and Schedules:

Combining Balance Sheet – Nonmajor Governmental Funds ...................................................................... 162 Combining Statements of Revenues, Expenditures and Changes in Fund Balances – Nonm ajor Governmental Funds ...................................................................................... 166 Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Nonmajor Special Revenue Funds:

Special Gas Tax ............................................................................................................ .................................... 170 Quiet Home Program ......................................................................................................... ............................. 171 Park Impact/Quimby ......................................................................................................... ............................. 172 Asset Seizure .............................................................................................................. ...................................... 173 Air Quality Improvement Fund ............................................................................................... ..................... 174 Special Assessment/Fee Districts ........................................................................................... ....................... 175 Grants .................................................................................................................... ........................................... 176 Cable Access ............................................................................................................... ...................................... 177 Storm Drain Maintenance .................................................................................................... ........................... 178 Historic Preservation ...................................................................................................... ................................. 179 NMC Public Services ........................................................................................................ ............................... 180 Broadband/Fiber ........................................................................................................... ................................. 181 Affordabilit y in Lieu ....................................................................................................................................... 182 Fire Mu tual Aid .............................................................................................................................................. 183 NMC CFD .................................................................................................................... ..................................... 184 OMC CFD .................................................................................................................... ..................................... 185 Opioid Settlement .......................................................................................................... .................................. 186 Economic Development Activities ............................................................................................ .................... 187 Community Development ...................................................................................................... ........................ 188 Measure I .................................................................................................................. ........................................ 189 ii
109
City of Ontario
Annual Comprehensive Financial Report
For the year ended June 30, 2025
Table of Contents
Page
FINANCIAL SECTION, Continued
Supplementary Information (Continued):

Schedules of Revenue, Expenditures, and Changes in Fund Balance – Budget and Actual:

Capital Project Funds:

Capital Projects ........................................................................................................... ..................................... 190 Impact Fees ................................................................................................................ ....................................... 191 Industrial Development Authority ........................................................................................... .................... 192 Combining Statement of Net Position – Internal Service Funds ..................................................................... 194 Combining Statement of Revenues, Expenses and Changes in Fund Net Position – Internal Service Funds ................................................................................................... 196 Combining Statement of Cash Flows – Internal Service Funds ....................................................................... 198 Combining Statement of Fiduciary Net Position – Custodial Funds .............................................................. 202 Combining Statement of Changes in Fiduciary Net Position – Custodial Funds ......................................... 214

STATISTICAL SECTION
Financial Trends:

Schedule 1 – Net Position by Component .......................................................................................................... 229 Schedule 2 – Changes in Net Position ................................................................................................................. 231 Schedule 3 – Changes in Fund Balances, Governmental Funds ...................................................................... 232 Schedule 4 – Fund Balances, Governmental Funds ............................................................................... ........... 234 Revenue Capacity:

Schedule 5 – Assessed Value and Estimated Actual Value of Taxable Property .......................................... 235 Schedule 6 – Direct and Overlapping Property Tax Rates ............................................................................... 236 Schedule 7 – Principal Property Taxpayers ........................................................................................................ 237 Schedule 8 – Property Tax Levies and Collections ............................................................................................ 238 Schedule 9 – Sales Tax Revenue by Category .................................................................................................... 239 Schedule 10 – Direct and Overlapping Sales Tax Rates .................................................................................... 240 Schedule 11 – Sales Tax Revenue Payers by Industry ........................................................................... ........... 241 Debt Capacity:

Schedule 12 – Ratio of Outstanding Debt by Type ............................................................................................ 242 Schedule 13 – Ratio of General Bonded Debt Outstanding ....................................................................... ...... 243 Schedule 14 – Direct and Overlapping Governmental Activities Debt .......................................................... 244 Schedule 15 – Legal Debt Margin Information .................................................................................................. 245 Schedule 16 – Pledged Revenue Coverage ......................................................................................................... 246 Demographic and Economic Information:

Schedule 17 – Demographic and Economic Statistics ....................................................................................... 247 Schedule 18 – Principal Employers ...................................................................................................................... 248 Operating Information:

Schedule 19 – Full-Time City Government Employees by Function .............................................................. 249 Schedule 20 – Operating Indicators by Function/Program ............................................................................. 250 Schedule 21 – Capital Asset Statistics by Function/Program .......................................................................... 251 iii
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FINANCIAL SERVICES | Armen Harkalyan, Executive Director 200 North Cherry Avenue • Ontario, CA 91764 | (909) 395-2442| OntarioCA.gov/Financial Services PAUL S. LEON
MAYOR
A
LAN D. WAPNER

MAYOR PRO TEM
J
IM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS
December 19, 2025

SHEILA MAUTZ

CITY CLERK
J
AMES R. MILHISER

CITY TREASURER
S

COTT OCHOA

CITY MANAGER
T
o the Honorable Mayor, City Council, City Manager, and Citizens of the City of Ontario:

I
t is our pleasure to submit the Annual Comprehensive Financial Report (ACFR) of the City of Ontario (the City) for the fiscal year ended June 30, 2025. This report provides a broad view of the City’s financial activities for the Fiscal Year 2024-25 and its financial position as of June 30, 2025. Although addressed to the elected officials and the citizens of the City, this report has several other users. Foremost among these other users are bondholders of the City, financial institutions, credit rating a gencies, educational institutions, and other governmental entities. In producing an ACFR, the City of Ontario has chosen to provide financial information that is significantly greater than that which is required under state law.

R
esponsibility for both the accuracy of the information presented in the ACFR as well as the completeness and fairness of the presentation, including all disclosures, rests with the C ity. We believe that the information, as presented, is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial position of the City and the results of its operations; and that all disclosures necessary to enable the reader to gain the maximum understanding of the City’s fi nancial affairs have been included.

T
he management of the City has established a system of internal control that is designed to ensure that the assets of the City are safeguarded against loss, theft, or misuse. The system of internal control also assures that the accounting system compiles reliable financial data for the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP). Internal accounting controls are designed to provide reasonable, but not absolute, assurance that these objectives will be met. The concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the evaluation of the costs and benefits requires estimates and judgments by management. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
v
112
T
he City of Ontario’s financial statements have been audited by Badawi & Associates, CPAs, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Ontario for the fiscal year ended June 30, 202 5, are free from material misstatement. The independent audit involved examining on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principle s used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Ontario’s financial statements for the fiscal year ended June 30, 2025, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section of this report.

T
he independent audit of the financial statements of the City of Ontario was part of a broader, federally mandated “Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing Single Audit engagements require the independent auditor to report not only on the fair presentation of the financial statements, but also on the audited government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards. These reports are available in the City of Ontario’s separately issued Single Audit Report.

Profile of t
he Government
The City of Ontario was founded as a “Model Colony” and incorporated on December 10, 1891. Ontario is located approximately 35 miles east of downtown Los Angeles and encompasses nearly 50 square miles.

Ontario is one of the 150 largest cities in the United States and is home to more than 14,400 businesses, 94,700 jobs and a population of 184,404.

O
ntario is ideally situated as a gateway to Southern California and beyond, with direct access to the I-10, I-210, and I-15 freeways, State Routes 60 and 83, and two major railways. Ontario International Airport (ONT) was recently ranked as both the fastest growing airport in the United States and the largest outbound cargo gateway. Today, ONT offers nonstop commercial jet servicing 30 domestic and international routes, including the only transpacific services from a Southern California airport other than LAX.

T
he City of Ontario operates under the council -manager form of government. Policy- making and legislative authority are vested in a governing council consisting of the mayor and four other members.

The governing council is responsible, amongst other things, for passing ordinances, adopting the budget, appointing committees, and hiring both the City’s manager and attorney. The City Manager is responsible for carrying out the policies and ordinances of the governing council, for overseeing the day- to-day operations of the government and for appointing the heads of the various agencies. The council is elected on a non- partisan basis. Council members serve four -year staggered terms, with two council members elected every two years. The mayor is elected to serve a four-year term. vi
113
I
n December 2022 the City Council took action to introduce an Ordinance approving four district maps for four Council members and with Ordinance No. 3224 added a new article 3 to title 2 of volume 1 of the Ontario Municipal Code to change the City’s electoral system from at- large to by-district elections with the exception of the Mayor who will continue to be elected at-large.

T
he City of Ontario is a full -service city with 1,517 authorized full-time employees as of June 30, 2025.

Services provided include police and fire protection; development including the construction and maintenance of streets, parks, water and sewer lines, traffic signals and other infrastructure; water, sewer, and integrated waste services; recreation and community services; and arts, cultural, and social programs.

In addition to general government activities, the City Council also serves as the Board of Directors for the Ontario Industrial Development Authority, the Ontario Redevelopment Financing Authority, Ontario Public Financing Authority, and the Ontario Housing Authority. These activities have therefore been included as an integral part of the City of Ontario’s financial statements. Additional information on these entities can be found in Note 1 in the notes to the financial statements.

T
he Ontario Municipal Code requires that the City Manager present the Annual Operating Budget to the City Council for approval. The Financial Services Agency, under the direction of the Executive Director of Finance, is responsible for compiling the estimated revenues and appropriations for the City Manager.

Prior to the beginning of the new fiscal year, the City Council adopts the Annual Operating Budget at a public budget workshop.

T
he development of the Fiscal Year Annual Operating Budget begins in February with the dissemination of the budget preparation guidelines. The guidelines include policies and procedures to ensure that the preparation of the budget conforms to fiscal policies and guidelines established by the City Council.

Before the Agency budget requests are submitted to the City Manager, the Financial Services staff reviews and analyzes all Agency requests. This review includes comparative analysis of historical and cu rrent expenditure levels. The City Manager and the Financial Services staff then hold meetings with each Agency Executive Director to discuss the budget requests and obtain additional information to assist in the assessment of the requests. A proposed budget is then submitted to the City Council for consideration in June. The budget must be approved by the City Council before the start of the new fiscal year: July 1 st.

T
he City’s budget policy is that all appropriations lapse at fiscal year -end. Outstanding obligation balances at the end of the fiscal year require re- approval by the City Council at the First Quarter Budget Update. City Council may amend the budget at any time during the fiscal year. Budget reports are presented to the City Council and the public on a quarterly basis. They include appropriations adjustments and revised revenue projections as needed. The City Manager may authorize budget transfers betw een line items, programs, and agencies if the total budget does not exceed the fund amount approved by the City Council. Budgetary changes between funds and/or projects require City Council approval. The level of budgetary controls is set at the Agency level by fund to ensure compliance with the budget as approved by the City Council. Budget -to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. Additional informa tion regarding the City’s general budget policies can be found in the Required Supplementary Information. vii
114
Econom
ic Condition and Outlook
As the City recovers from the last f ive years of economic disruption from the COVID pandemic, other challenges still exist with the continued war in Ukraine; the unknown f iscal impacts from the proposed tariffs by the new Federal administration ; continued high interest rates even with recent rate cuts by the Federal Reserve; the possibility of a recession due to accelerated inflation levels not seen since the early 1980’s; and the ongoing conflict in the middle east. Even with the anticipated additional res ources, the City will need to continue to practice fiscal discipline and establish proactive measures to safely navigate the current and upcoming fiscal challenges, as well as deliver an unparalleled level of service and commitment to our community.

O
ther major challenges are the City’s revenues which will soon be outpaced in the forthcoming fiscal years by increasing pension expenses, rising medical benefits costs, and the overall cost of labor.

Moreover, the City should be mindful that in providing service to Ontario International Airport Authority (OIAA) and Ontario Ranch, there is an absorption factor to consider as service demands continue to grow and evolve. Additionally, it is crucial that recurring operating expenditures are strategically contained and do not outpace recurring revenues. In addition, funding of the Internal Service Allocations for Equipment Services, Information Technology Services, Facilities Maintenance, and Risk Liability have not increased to levels that ensure the sustainability of these services. For the City to successfully manage these significant fiscal issues, it is recommended that the City continue to practice fiscal discipline and establish proactive measures to safely navigate the current and upcoming fiscal challenges.

Mea
sure Q
Measure Q was approved by Ontario voters in November 2022 and became effective on April 1, 2023, resulting in the implementation of a Transactions and Use Tax of one percent on all destination- based taxable sales in Ontario. This revenue source is estimated to bring in $63.00 million in Fiscal Year 2024-

25. Fiscal year 2025-26 Measure Q revenues are projected at $64.30 million for the City’s General Fund.

Measure Q revenues are slated to be used to expand City services and programs as well as invest various Capital Improvement Program (CIP) projects. The CIP projects below will be funded by future anticipated Measure Q revenues.
• Ontario Regional Sports Complex
• Continuum of Care Campus
• Storm Drain Projects Citywide
• Toyota Arena Entertainment District Improvements
• Various Park and Community Center Improvements Citywide • Ontario Museum of History and Art Master Plan
viii 115
E
ven with the anticipated additional resources, the City will need to continue to practice fiscal discipline and establish proactive measures to safely navigate the current and upcoming fiscal challenges, as well as deliver an unparalleled level of service and commitment to our community. With the City Council’s leadership and their prudent fiscal policies, the City’s long- term financial health will further solidify its standing as the economic leader in the Inland Empire, and a formidable player in California, and the nation.

Lon
g-Term Financial Plan
In addition to managing the City’s money in a manner that ensures Ontario is financially stable, the long- term goals, efforts and actions reflect the City Council’s continued commitment to support high quality public safety and municipal services, provides for the maintenance and expansion needs of the City’s infrastructure and facilities, profiles an aggressive economic development strategy, and assures the investment and reinvestment of City resources into the community – all in the name of affording Ontario residents and businesses an exceptional quality of life.

O
ntario’s commitment to infrastructure improvements is demonstrated by the City’s Capital Improvement Program that includes projects such as:
• $565,224,200 in improvements to City parks;
• $ 39,536,672 in public facilities projects;
• $ 65,274,690 in sewer, storm drain, and water projects; • $ 39,582,096 in street and traffic improvements; and • $ 6,038,835 in other miscellaneous projects
T
he City initially joined the California Employers’ Retiree Benefit Trust (CERBT) to pre -fund its Other Post Employment Benefit (OPEB) liability in Fiscal Year 2019-20, establishing a Section 115 Trust with the initial deposit of $140 million. To diversify the Section 115 Trust, on February 6, 2024, the City Council approved the PARS Trust with the initial transfer amount of $75 million from CERBT to Public Agency Retirement Services (PARS). The City continues to make annual CERBT contributions and that amount may increase each year by the Annual CPI Index. As of June 30, 2025, t he OPEB Trust fund balances were $111,089,979 in CEBRT and $85,313,627 in PARS.

T
he City issued pension obligation bonds on May 12, 2020, in the amount of $236.6 million for the CalPERS Safety Plans (Police and Fire) per City Council direction. The pay down of the City’s CalPERS safety plans Unfunded Actuarial Liability (UAL) will potentially save the city up to $110 million over the life of the bond financing. Also, to stabilize future pension cost increases for its Miscellaneous employee group, on May 19, 2020, City Council authorized staff to utilize the City’s Investment Portfoli o with available cash balances to pay down the current UAL amount of $102.5 million for this group. This resulted in the City saving approximately $60 million, with combined savings of about $170 million for all three CalPERS pension plans: Fire Safety, Police Safety, and Miscellaneous. The issuance of pension obligation bonds assisted the City in achieving the General Fund goal of stabilizing existing CalPERS cost; however, it will come at heightened levels in the coming years. ix
116
T
he City of Ontario has, through prudent long- range policy decisions and sound fiscal management, maintained its position as an economic leader in Southern California. The City will continue to monitor key economic indicators, sources of revenues, and spending levels as part of its sound conservative fiscal approach. To maintain this structural balance, however, the City will have to proceed with caution.

Balancing fiscal discipline and long-term vision, Ontario is well-positioned to address its obligations while capitalizing on opportunities.

T
hrough the combined leadership of the City Council and the implementation of its prudent fiscal policies, the City has been able to enhance service levels to the community, invest in capital projects to enhance public facilities and infrastructure, and continue programs that promote its standing as the economic leader in the Inland Empire, and a formidable player in California and the nation.

Relevant Financial Policies
Fund Balance Policy
The City’s Fund Balance and Reserve Policy, which was updated and approved on June 18, 2025, established the procedures for reporting unrestricted fund balance in the General Fund financial statements. Certain commitments and assignments of the fund balance will help ensure that there will be adequate financial resources to protect the City against unforeseen circumstances and events such as revenue shortfalls and unanticipated expenditures. The policy also authorizes and directs the Financial Services Agency in preparing financial reports that accurately categorize fund balance as per Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions.

I
ncluded in the Fund Balance Policy is the 20 Percent Stabilization Plan – the goal of the City Council to achieve a minimum of 20 percent of the annual general fund appropriations, as Assigned Fund Balance in the general fund. Based on the current year’s general fund appropriations, the amount assigned to the 20 percent Stabilization Plan will either increase or decrease accordingly. This assigned balance is intended to be used for specific and defined emergency events, such as an earthquake, to address immediate needs in resources without impacting City services and to minimize the potential for disruption of municipal services to its citizens. As of June 30, 2025, the City’s General Fund had an assigned fund balance for the stability arrangement of $87.5 million, which achieves the goal of 20 percent of the General Fund Adopted Budget for Fiscal Year 2024-25. This goal was temporarily decreased to 15 percent during the COVID pandemic but has since been brought back up to the previous set goal of 20 percent, effective July 1, 2023, with the goal of increasing the reserves up to 25 percent in future fiscal years.

Th
is 20 percent of the General Fund is separate from the General Fund Contingency, also established in the Fund Balance Policy. The City’s General Fund Contingency consists of amounts formally set aside and/or arrangements to maintain amounts for working capital needs, contingencies, and contractual obligations. Assigned amounts under General Fund Contingency include Economic Uncertainties of $20 million and Continuing Appropriations of $111,638.
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C
ash and Investments
The City of Ontario follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under provisions of bond indentures. Interest income earned on pooled cash and investments is allocated monthly to the various funds based on monthly cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related fund. As of June 30, 2025, the City of Ontario’s cash and investments were $1,006,926,969.

Major Init
iatives
Complete Community
Ontario is committed in building a “Complete Community” by investing in the growth and evolution of the area’s economy while providing a balance of jobs, housing, and educational and recreational opportunities for our residents in a safe, well -maintained community. Ontario is evolving into an urban landscape of activity centers – complete with a full range of educational opportunities and health care providers, high paying jobs, a diverse mix of housing and rich cultural and recreational amenities.

O
ntario offers businesses, residents, and visitors the opportunity to be part of a culturally diverse community with a rich history, unlimited economic opportunities, and convenient access to the region’s abundant recreational, cultural and entertainment amenities. Within a short drive of Ontario are some of the world’s premier outdoor destinations, colleges and universities, medical centers, and research facilities.

L
ivability is a big part of the Ontario story. The City is home to premium entertainment venues such as the Ontario Convention Center, Toyota Arena, and Ontario Mills Mall. Five highly rated school districts operate within the City’s boundaries. Home prices are more affordable, and as the City grows and evolves, developments are being designed to advance the economic dynamics of the City. An 13,000-acre former agricultural preserve, now known as the Ontario Ranch, will add approximately 60,000 homes and 193,000 new residents to Ontario.

T
he Ontario Plan
On August 16, 2022, the Mayor and City Council of Ontario approved the comprehensive General Plan Update: The Ontario Plan (TOP) 2025. This plan provides a dynamic framework for continuous, comprehensive leadership in transforming the city into the Premier Community. It blends city governance with sustainable community goals, outlining the future direction of the community and integrating these elements into a unified guidance system that will shape the city’s development for the next 20 years and beyond. Additionally, the plan sets policies that support adaptability to future changes. xi
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S
ervice to the Community
The “Approach to Public Service” is the underlying principle for each Agency citywide. This “Approach to Public Service” emphasizes that City employees “choose public service to make a positive impact on the community”. The three principles behind this approach are the following:
• B
e Committed to the Community – Whatever job you do, do it well! • Achieve Excellence Through Teamwork – Take ownership of your job and support other team members.
• Do the Right Thing the Right Way – Focus on what is important and never compromise integrity.

Customer Service Initiative
Ontario continues to strive for excellence as the Premier City of the Inland Empire, and city staff dedication plays a key role in making that vision a reality. “Service for Your Success” means more than just delivering exceptional customer services – it’s about going the extra mile to ensure that each person we engage with, whether a resident, a visitor, or colleague, feels supported and valued.

T
he service philosophy is anchored in three core pillars: empathy, respect, and problem solving. When we approach every situation with empathy, we show that we care about the experiences and needs of others.

Respect means treating everyone with dignity and fairness, fostering trust and collaboration. And by focusing on solving problems and meeting challenges, we demonstrate that our success in serving the community goes beyond mere politeness and courtesy – it is reflected in the achievement of their goals.

E
mployer of Choice
The City of Ontario is committed to identifying, attracting, developing, and retaining top talent to ensure a skilled, innovative, and high- performing workforce. Ontario employees are dedicated to delivering Exceptional Customer Service to the Premier Community of the Inland Empire by providing the highest levels of service and professionalism. In return, the City strives, when financially feasible and sustainable, to offer a total compensation package that is competitive with leading comparable municipalities in the region. As an employer of choice, the City invests in its workforce through:
• P
roviding High-quality tools, resources, equipment, and facilities; • Offering comprehensive training, learning, and professional development opportunities; and
• Providing a leading total comprehensive package, offered in alignment with a shared commitment to fiscal responsibility
As the City of Ontario strives to be the Employer of Choice, the City is proud to be recognized as a Top Workplace for 2024 and 2025, based on entirely confidential employee feedback and rigorous third-party analysis through Energage and USA Today’s national Top Workplaces program. This prestigious recognition affirms Ontario’s continued commitment to fostering a positive, high-performing, and people- centered work environment.
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121

CITY OF ON TARIO

FORM OF
GO

VERNMENT
The City of
Ontario operates under the
council-manager form of local government.

The five members of
the City Council are
elected by the citizens as
the legislative,
policy-making branch of City
government;
and the City Manager is appointed by the
City Council to implement policy and manage
day-to-day operations. All Council Members
serve by
district and serve four-year terms.

Every even-numbered year, either the
Mayor and two Council Members or two
Council Members,
the City
Clerk and City
Treasurer stand
for election. The Council
Members
also sit as the Commissioners of the
Ontario Housing Authority.

ELECTED OFFICIALS

EXECUTIVE TEAM
PAUL S. LEON
MAYOR

SCOTT OCHOA

CITY MANAGER

EXECUTIVE DIRECTOR OF

THE HOUSING AUTHORITY

DARLENE SANCHEZ

ASSISTANT CITY MANAGER

RUBEN DURAN

CITY ATTORNEY

MICHAEL LORENZ

POLICE CHIEF

MICHAEL GERKEN

FIRE CHIEF

SCOTT BURTON

UTILITIES GENERAL MANAGER

TITO HAES

EXECUTIVE DIRECTOR PUBLIC WORKS

RUDY ZELEDON

EXECUTIVE DIRECTOR

COMMUNITY DEVELOPMENT

HELEN MCALARY

EXECUTIVE DIRECTOR

COMMUNITY LIFE & CULTURE

JENNIFER MCLAIN HIRAMOTO

EXECUTIVE DIRECTOR

ECONOMIC DEVELOPMENT

COLIN FERNANDES

EXECUTIVE DIRECTOR

INFORMATION TECHNOLOGY

ARMEN HARKALYAN

EXECUTIVE DIRECTOR OF FINANCE

ANGELA LOPEZ

EXECUTIVE DIRECTOR HUMAN RESOURCES/

RISK MANAGEMENT

DANIEL BELL

EXECUTIVE DIRECTOR COMMUNICATIONS

AND COMMUNITY RELATIONS
ALAN D. WAPNER

MAYOR PRO TEM
JIM W. BOWMAN

COUNCIL MEMBER

DEBRA PORADA

COUNCIL MEMBER

DAISY MACIAS

COUNCIL MEMBER
JAMES R. MILHISER

CITY TREASURER

SHEILA MAUTZ

CITY CLERK
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122

CITY OF ONTARIO

CITYWIDE ORGANIZATIONAL CHART
FISCAL YEAR 2024-25
City Manager
Mayor & City Council City Clerk City Treasurer
City Attorney Boards & Commissions
Information Technology Economic Development
Information Technology
Ontario
Fire Department
Ontario
Police Department
Public Works Ontario Municipal Utilities
Company
Community Life &
Culture Community Development
People of Ontario
Human Resources /
Risk Management Financial Services
xvi
123

FINANCIAL

SECTION

SECTION
124

FINANCIAL

SECTION
125

INDEPENDENT AUDITOR’S REPORT

To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Report on the Audit of the Financial Statements

Opinions

We have audited the financial statements of the gove rnmental activities, the bu siness-type activities, each major fund, and the aggregate remainin g fund information of the City of Ontario (City), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise City’s basic financial statements as listed in the table of contents.

In our opinion, based on our repo rt and the report of the other au ditors, the accompanying financial statements present fairly, in all mate rial respects, the respective financ ial position of the governmental activities, the business-type activities, each major fund, and the a ggregate remaining fund information of the City, as of June 30, 2025, and the respective change s in financial position and, where applicable, cash flows thereof for the year then ende d in accordance with accounting p rinciples generally accepted in the United States of America.

We did not audit the financial stat ements of the Water Facilities Au thority and Chino Basin Desalter Authority, which represent 1.9 percent and 10.5 percent, respectively, of the assets, and (0.1) percent and 0.2 percent, respectively, of the revenues of the Wate r Enterprise Fund. Those financial statements were audited by other auditors whose reports thereon have b een furnished to us, and o ur opinion, insofar as it relates to the amounts included for the Water Facilities Authority and Ch ino Basin Desalter Authority, are based solely on the reports of the other auditors.

Basis for Opinions

We conducted our audit in accordance with auditing st andards generally accepted in the United States of America (GAAS) and the standards applicab le to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the Un ited States. Our respon sibilities under those standards are further described in the Auditor’s Respon sibilities for the Audit of the Financial Statements section of our report. We are required to be inde pendent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relati ng to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

126
To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 2 ends

Responsibilities of Management for the Financial Statements

The City’s management is responsible for the preparatio n and fair presentation of the financial statements in accordance with accounting princi ples generally accepted in the Unit ed States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is re quired to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financ ial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issu e an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolu te assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may in volve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:

 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstat ement of the financial statements, whether due to fraud or error, and design and pe rform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circ umstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting polic ies used and the reasonableness of significant accounting estimates made by management, as we ll as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

2 127
To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 3 ends

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant au dit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally a ccepted in the United States of America require that the management discussion and analysis, budgetary comparison schedules for the General Fund and major special revenue funds, the modified approach for the City’s infrastr ucture capital assets, and the required pension and OPEB schedules on pages 5-28 and 138-155 be presente d to supplement the basic financial statements. Such information is the responsibility of management and, al though not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the ba sic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited pr ocedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s response s to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming op inions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The combining and individual nonm ajor fund financial statements and budgetary comparison schedules are the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the ba sic financial statements. Such information has been subjected to the auditing procedures applied in th e audit of the basic financial statements and certain additional procedures, including co mparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedur es in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and budgetary comparison schedule s are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

3 128
To the Honorable Mayor and Members
of the City Council of the City of Ontario
Ontario, California

Page 4 ends

Other Information

Management is responsible for the other information. The other information comprises the introductory and statistical section but does not include the financial statements and our auditor's report thereon. Our opinions on the financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and cons ider whether a material inconsistency exists between the other information and the financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 19, 2025 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, cont racts, and grant agreements and other matters. The purpose of that report is solely to describe the sc ope of our testing of internal control over financial reporting and compliance and the results of that testin g, and not to provide an opinion on the effectiveness of internal control over financ ial reporting or on compliance.

That report is an integral part of an audit
performed in accordance with Government Auditing St andards in considering the City’s internal control over financial reporting and compliance.

Badawi & Associates, CPAs
Emeryville, California
December 19, 2025
4 129

MANAGEMENT'S DISCUSSION AND ANALYSIS

Management’s Discussion and Analysis
The following Management Discussion and Analysis (MD&A) of the City of Ontario’s (City) financial performance provides an introduction and overview to the financial activities of the City for the fiscal year ended June 30, 2025. This narrative discussion and analysis focus is on the current year’s activities, resulting changes and currently known facts; therefore, the information presented here should be considered in conjunction with additional information furnished in the Letter of Transmittal and the accompanying basic financial statements.

FINANCIAL HIGHLIGHTS
Government-Wide
 Total assets and deferred outflows of the City exceeded liabilities and deferred inflows by $2.22 billion (net position). Of this amount, $513.58 million (unrestricted net position) may be used to meet the City’s ongoing obligations to citizens and creditors.  For the fiscal year ended June 30, 2025, total net position increased by $112.70 million. Total revenues from all sources were $826.37 million and total expenses for all functions/programs were $713.54 million.
 Of total revenues, program revenues were $400.02 million and general revenues were $426.35 million. Program revenues are broken into three categories: Charges for Services at $344.97 million, Operating Contributions and Grants at $19.01 million and Capital Contributions and Grants at $36.04 million
Fund Based
 For the fiscal year ending June 30, 2025, the assigned fund balance of the General Fund was $107.61 million. The assigned portion of $87.50 million represents the City Council’s goal to achieve a minimum of 20 percent of the annual general fund appropriations (stabilization policy). The remaining amounts compromised of the $107.61 million include $20.00 million for the economic uncertainties reserve and $0.11 million for continuing appropriations that were unspent in FY 2024-25.
5 130

MANAGEMENT'S DISCUSSION AND ANALYSIS

OVERVIEW OF THE FINANCIAL STATEMENTS
The financial statements presented herein include all the activities of the City of Ontario and its component units as prescribed by GASB Statement No. 34. This discussion and analysis are intended to serve as an introduction to the City’s basic financial statements. The City’s basic financial statements comprise three components: 1) Government-Wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Financial Statements . This report also contains other supplementary information in addition to the basic financial statements themselves.

Government-Wide Financial Statements
The Government-Wide Financial Statements present both long-term and short-term information about the City’s overall financial picture. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities.

The Statement of Net Position is measured as the difference between (a) assets and deferred outflow of resources and (b) liabilities and deferred inflow of resources. This is one way to measure the City’s financial health, or financial position. Over time, increases or decreases in the City’s net position may serve as an indicator of whether or not its financial health is improving or deteriorating.

The Statement of Activities presents information on how the City’s net position changed during the fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.

Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (i.e., uncollected taxes or earned but unused vacation leaves).

In both the Statement of Net Position and Statement of Activities, we divide the City into two kinds of activities:

Governmental activities – Most of the City’s basic services are reported here, including General Government (City Council, Office of the City Manager, Records Management, Financial Services and Human Resources), Public Safety, Community Development, and Public Works. Revenues from property taxes, transient occupancy tax (TOT), sales tax, parking tax, business license tax, etc. finance most of these activities.

Business-type activities – The City charges a fee to customers to recover all or most of the cost of certain services it provides. The City’s water, sewer, and integrated waste are reported in this category.

The Government-Wide Financial Statements include not only the City, known as the primary government, but also the legally separate component units. The Ontario Housing Authority, the Ontario Industrial Development Authority, the Ontario Redevelopment Financing Authority, and the Ontario Public Financing Authority are known as Blended Component Units. 6 131

MANAGEMENT'S DISCUSSION AND ANALYSIS

Fund Financial Statements
The Fund Financial Statements are designed to report information about groupings ( funds) of related accounts, which are used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other states and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. The City uses all three types, each using different accounting methods.

Governmental Funds – Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements.

However, unlike the government-wide financial statements , governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government’s near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements . By doing so, readers may better understand the long-term impact of the City’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City maintains twenty-five individual governmental funds. These funds report financial transactions using the modified accrual accounting method. Information for five out of twenty-five funds is presented separately in the Balance Sheet and the Statement of Revenues, Expenditures and Changes in Fund Balances. The following five funds are major funds: General Fund, Ontario Housing Authority Fund, Capital Projects Fund, Impact Fees, and Ontario Industrial Development Agency Fund. Data for other governmental funds (non-major) are combined into a single presentation as part of the additional required supplementary information. Individual fund data for each of these non- major governmental funds is provided in the form of combining statements that follow the notes to the financial statements.

The City adopts an annual appropriated budget for the General Fund, the Special Revenue Funds, and the Capital Project Funds. A budgetary comparison statement has been provided for each of the funds to demonstrate compliance with this budget.

7 132

MANAGEMENT'S DISCUSSION AND ANALYSIS

Proprietary Funds – Proprietary funds are primarily used to account for when the City charges for the services it provides, whether to outside customers or to other units of the City. These funds are reported in the same way that all activities are reported in the Statement of Net Position and the Statement of Activities, using an accrual basis of accounting. In fact, the City’s enterprise funds (a component of proprietary funds) are the same as the business-type activities that are reported in the government-wide financial statements but provide more detailed information, such as the statement of cash flows.

The City uses internal service funds (the other component of proprietary funds) to report activities that provide supplies and services for the City’s other programs and activities, such as Equipment Services, Self-Insurance, Information Technology, Facilities Maintenance, Pension Benefit Funds, Other Post Employment Benefits and leave liability funds. Since these activities predominantly benefit governmental rather than business- type functions, they are included within the governmental activities in the government- wide financial statements.

Fiduciary Funds – Fiduciary funds are used to account for resources held for the benefit of parties outside the City. In these cases, the City has a fiduciary responsibility and is acting as a trustee. The Statement of Fiduciary Net Position separately reports all the City’s fiduciary activities. The City excludes these activities from the City’s other financial statements because the City cannot use these assets to finance its operations. However, the City is responsible for ensuring that the assets reported in these funds are used for their intended purposes.

Notes to the Financial Statements
Notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements, and it is an integral part of the financial statements.

Other information
In addition to the basic financial statements and accompanying notes, this report also presents certain combining statements referred to earlier in connection with non-major governmental and proprietary funds. These combined and individual fund statements and schedules can be found immediately following the Notes to the Financial Statements. 8 133

MANAGEMENT'S DISCUSSION AND ANALYSIS

GOVERNMENT - WIDE FINANCIAL ANALYSIS
This analysis will focus on the City’s net position (Table 1) and changes in net position (Table 2) of the governmental and business-type activities for the fiscal year ended June 30, 2025.

Management has included comparative data from the fiscal year ended June 30, 2024, in its analysis.

Net Position (Table 1)
(in millions)

The City’s Government-wide total net position was $2.22 billion, with assets of $3.58 billion, deferred outflows of $111.18 million, liabilities of $1.42 billion and deferred inflows of $47.72 million. The net investment in capital assets of $1.36 billion represents 61.25 percent of the City’s total net position. This is an increase of $85.90 million from the previous year. The net investment in capital assets (e.g., infrastructure, land, structures and improvements, furniture, and equipment) component of net position consists of capital assets, net of accumulated depreciation, reduced by any related outstanding debt used to acquire, construct, or improve those assets. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other resources, since the capital asse ts themselves cannot be used to liquidate these liabilities.

2025 2024 2025 2024 2025 2024
Current and Other Assets 1,011.92$ 1,025.41$ 498.45$ 423.41$ 1,510.37$ 1,448.82$ Capital Assets 1,848.71 1,467.89 217.61 166.55 2,066.32 1,634.44 Total Assets 2,860.63 2,493.30 716.06 589.96 3,576.69 3,083.26 Deferred Charges on Refunding 2.46 2.46 2.86 3.01 5.32 5.47 Deferred Pension Related Items 83.63 129.43 6.33 10.71 89.96 140.14 Deferred OPEB Related Items 11.75 23.05 4.16 8.57 15.91 31.62 Total Deferred Outflows of Resou r 97.84 154.94 13.34 22.28 111.18 177.22 Noncurrent Liabilities 988.96 793.31 121.48 80.19 1,110.44 873.50 Other Liabilities 260.34 184.39 54.00 27.90 314.34 212.29 Total Liabilities 1,249.30 977.70 175.48 108.09 1,424.79 1,085.80 Deferred Charges on Refunding 0.69 0.75 - - 0.69 0.75 Deferred Pension Related Items 2.38 1.93 0.19 0.70 2.57 2.63 Deferred inflow s of resources - leases 2.06 2.43 0.79 1.01 2.85 3.44 Deferred OPEB Related Items 30.74 47.55 10.87 17.68 41.61 65.23 Total Deferred Inflows of Resour c 35.87 52.66 11.85 19.39 47.72 72.05 Net Position:

Net Investment in Capital Assets 1,199.28 1,164.14 157.70 106.94 1,356.98 1,271.08 Restricted 297.33 291.74 47.47 0.11 344.80 291.85 Unrestricted 176.68 162.00 336.90 377.73 513.58 539.73 Total Net Position 1,673.29$ 1,617.88 $ 542.08 $ 484.79 $ 2,215.36 $ 2,102.66 $ Governmental Activities Business-Type Activities Government-Wide Totals 9 134

MANAGEMENT'S DISCUSSION AND ANALYSIS

Another portion of the City’s net position of $344.80 million (15.56 percent of the total net position) represents resources that are subject to external restrictions on how they may be used. The remaining balance of $513.58 million or 23.18 percent of the total net position (unrestricted position) may be used to meet the government’s ongoing obligations to citizens and creditors within the program areas.

Overall Financial Activities
Overall, the City’s financial position increased from the prior year by $112.70 million (see Table 2 on the following page).

The overall cost of all governmental and business-type activities this year was $713.54 million and was an overall net increase of $49.56 million or 7.46 percent compared to the prior year.

Total revenue of all governmental and business-type activities was $826.37 million for this fiscal year; an increase of $70.33 million or 9.30 percent. Program revenues were $400.02 million and general revenues were $426.35 million. The largest single revenue category was Charges for Services, at $344.97 million, a component of Program Revenue, which increased by $67.17 million or 24.18 percent. This revenue goes directly against the expenses in recovering the costs of providing those services. The second largest revenue category, a component of Program Revenues, was Capital Grants and Contributions at $36.04 million, a decrease of $16.07 million.

The third and fourth largest revenue categories, both components of General Revenues, were Sales Taxes at $203.41 million and Property Taxes at $105.24 million, respectively.

10 135

MANAGEMENT'S DISCUSSION AND ANALYSIS

Changes in Net Position (Table 2)
(in millions)

2025 2024 2025 2024 2025 2024
Revenues
Program Revenues:

Charges for Services 165.85 $ 119.52 $ 179.12 $ 158.28 $ 344.97 $ 277.80 $ Operating Contributions and Grants 17.67 23.21 1.34 4.70 19.01 27.91 Capital Contributions and Grants 34.74 38.90 1.30 13.21 36.04 52.11 Sub-total Program Revenues 218.26 181.63 181.76 176.19 400.02 357.82 General Revenues:

Property Taxes 105.24 98.74 - - 105.24 98.74 Sales Taxes 203.41 184.31 - - 203.41 184.31 Business Licenses Taxes 10.72 10.90 - - 10.72 10.90 Franchise Taxes 3.57 4.45 - - 3.57 4.45 Transient Occupancy Taxes 16.67 16.63 - - 16.67 16.63 Other Taxes 21.67 21.73 - - 21.67 21.73 Motor Vehicle In-Lieu 0.28 0.22 - - 0.28 0.22 Use of Money and Property 40.85 40.26 14.40 9.62 55.25 49.88 Gain on Sale of Capital Asset 5.79 - - - 5.79 - Other 3.75 11.36 - - 3.75 11.36 Sub-total General Revenues 411.95 388.60 14.40 9.62 426.35 398.22 Total Revenues 630.21$ 570.23$ 196.16$ 185.81$ 826.37$ 756.04$ E xpenses
General government 65.59$ 82.46$ -$ -$ 65.59$ 82.46$ Public safety 258.99 255.51 - - 258.99 255.51 Community development 150.47 77.73 - - 150.47 77.73 Public w orks 67.03 80.57 - - 67.03 80.57 Interest on long-term debt 21.10 14.87 - - 21.10 14.87 Water - - 49.80 64.90 49.80 64.90 Sew er - - 36.30 32.95 36.30 32.95 Integrated Waste - - 64.26 54.99 64.26 54.99 Total Expenses 563.18$ 511.14$ 150.36$ 152.84$ 713.54$ 663.98$ Change in Net Position before Trans 67.03$ 59.09$ 45.80$ 32.97$ 112.83$ 92.06$ Transfers (0.02) 0.95 0.02 (0.95) - - Change in Net Position 67.01$ 60.04$ 45.82$ 32.02$ 112.83$ 92.06$ Restatement of Net Position (11.60) (49.29) 11.48 (69.66) (0.12) (118.95) Net Position at Beginning of Year 1,617.88 1,607.13 484.78 522.42 2,102.66 2,129.55 Net Position at End of Year 1,673.29$ 1,617.88$ 542.08$ 484.79$ 2,215.37$ 2,102.66$ Governmental Activities Business-Type Activities Government-Wide Totals 11 136

MANAGEMENT'S DISCUSSION AND ANALYSIS

Governmental Activities
Under governmental activities, the City’s net position at the end of the year increased to $1.67 billion after a $67.03 million net difference between revenue and expense and a restatement of ($11.60) million. The cost of all governmental activities this year was $563.18 million or 78.9 percent of the government-wide total expenses and was an increase of $49.56 million or 7.46 percent from last fiscal year.

Graph 1 below presents the costs of each of the City’s five governmental functions – general government, public safety, community development, public works, and interest on long-term debt, as well the governmental program’s revenues. The net cost (total cost less program revenues) is the amount that was paid from general revenues.

Expenses and Program Revenues – Governmental Activities (Graph 1) (In millions)
Expenses in General Government were $65.59 million or 11.65 percent of total Governmental Activities expenses. Of this amount, $22.46 million was funded by program revenues, while the remaining $43.13 million was funded by general revenues. General Government expenditures decreased by $16.8 million, or (20.46) percent compared to the previous year because of prior year higher funding for future economic activities development.

Public Safety expenses were $258.99 million or 45.99 percent of the total Governmental Activities expenses. Of this amount, $49.02 million was funded by program revenues, while the remaining $209.97 million was funded by general revenues. Expenses for Public Safety increased by $3.48 million or 1.36 percent, primarily due to contractual labor increases. -

50.00 100.00
150.00
200.00
250.00
300.00
General Government Public Safety Community Development Public Works Program Revenue Expense
12 137

MANAGEMENT'S DISCUSSION AND ANALYSIS

Expenses in Community Development were $150.47 million or 26.72 percent of the total Governmental Activities expenditures. These expenses increased by $72.74 million or 93.57 percent, as there was an increase in development fee funded by capital projects primarily in Ontario Ranch.. Program revenues relating to the funding of community development activities amounted to $120.79 million, which were primarily from capital grants and contributions of $8.35 million and charges for services of $112.44 million.

Public Works expenses were $67.03 million or 11.90 percent of the total Governmental Activities expenditures. Of this amount, $25.98 million was funded by program revenues, with the remaining $41.05 million funded by general revenues. Public Works expenses decreased by $13.54 million or (16.80) percent due to completion of several capital improvement projects in early Fiscal Year 2024-25.

Interest on long-term debt had expenses of $21.1 million or 3.75 percent of total Governmental Activities and is funded entirely by general revenues.

Graph 2 below presents governmental activities revenue by source. Total revenue for governmental activities was $630.21 million (before transfers); an increase of $59.98 million or 11 percent compared to the previous fiscal year. The four largest revenue sources under governmental activities were the categories of Charges for Services, Sales Taxes, Property Taxes and Use of Money and Property.

Charges for Services, a component of Program Revenues, at $165.85 million or 26.33 percent of total governmental activities revenue. This was an increase of $46.33 million or 38.77 percent from the prior year; this revenue goes directly against the expenses in recovering the costs of providing those services.

Sales Taxes, a component of General Revenues, were $203.41 million or 32.29 percent of total governmental activities revenue. This was an increase of $19.1 million or 10.36 percent, primarily the result of new warehouses throughout the City including Ontario Ranch, and retail and commercial growth Citywide are all contributing toward the steady increase of the City’s sales tax revenues.

Property Taxes, a component of General Revenues, were $105.25 million or 16.67 percent of total governmental activities revenue. Growth in property valuations, and new commercial and residential development, especially in Ontario Ranch are primarily the reasons for this increase in revenue.

Use of Money and Property, a component of Program Revenues, at $40.85 million or 6.49 percent of total governmental activities revenue. This was an increase of $0.59 million or 1.47 percent from the prior year. This is mainly due to increased investment earnings.

13 138

MANAGEMENT'S DISCUSSION AND ANALYSIS

Revenues by Source – Governmental Activities (Graph 2)

Business-type Activities
Net position for business-type activities was $542.08 as of June 30, 2025, with assets of $716.06 million, deferred outflows of resources of $13.34 million, liabilities of $175.48 million and deferred inflows of resources of $11.85 million. The unrestricted net position of $336.90 million represented

62.15 percent of total business-type activities net position; this amount may be used to meet the government’s on-going obligations. Net investment in capital assets of $157.70 million represented 29.09 percent of the total net position from business-type activities. Compared to the prior year, the City’s net position from busine ss-type activities from the prior year increased by $57.29 million or 11.82 percent.

Total revenue (excluding transfers) for the City’s business-type activities was $196.16 million, which represented an increase of $10.35 million or 5.57 percent from the prior year. Program revenues amounted to $181.76 million, and it increased by $5.57 million or 3.16 percent. General revenue for business-type activities was $14.40 million. Business-type activities incurred $150.36 million in expenditure for the year; a decrease of $2.48 million or (1.62) percent due to reduction of capital improvement projects funded by business type activities Graph 3 presents the costs of each of the City’s business activities and the associated program revenue. Since business-type activities are primarily used when the City charges customers for the services it provides, program revenues (charges for services) should be comparable to the costs of these programs and represent the major funding source for these activities.

14 139

MANAGEMENT'S DISCUSSION AND ANALYSIS

Expenses and Program Revenues – Business-type Activities (Graph 3) (In millions)

Graph 4 presents revenues by source for business-type activities. Total revenue for business- type activities was $196.16 million (before transfers), an increase of $10.35 million or 5.57 percent compared to the previous year. Charges for Services (program revenue) amounted to $179.12 million or 91.31 percent of total business-type activities revenues; this increased by $20.84 million or 13.17 percent. The remaining Program Revenues are Operating Contributions and Grants which total $1.34 million; Capital Contributions and Grants which amount to $1.30 million; and General Revenues which total to $14.40 million. Revenue from Water Services is the largest revenue source at $85.42 million or 42.97 percent of the total revenues from business-type activities. This represented an increase of $14.87 million, or 21.07 percent compared to the previous fiscal year, as a result of a recent rate increase. The second largest revenue source was revenue from Integrated Waste Services at $62.20 million or 31.29 percent of total business-type activities revenues. Integrated Waste Services revenue increased by $5.77 million or 10.23 percent, due to the growth in consumer accounts, driven by an increase in both commercial and residential development projects, as well as the result of a recent rate increase.

10.00 20.00

30.00 40.00

50.00 60.00

70.00 80.00

90.00 Water Sewer Integrated Waste
Revenue Expense
15 140

MANAGEMENT'S DISCUSSION AND ANALYSIS

Revenues by Source – Business-Type Activities (Graph 4)

FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for spending at the end of the fiscal year.

During the current fiscal year, the City had five major governmental funds: General Fund, Ontario Housing Authority, Capital Projects Fund, Im pact Fees, and Ontario Industrial Development Authority Fund. The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The General Fund is discussed in depth later in the MD&A. The special revenue fund for the Ontario Housing Authority Fund accounts for low and moderate housing funds to implement various programs and projects to assist in affordable housing. The Capital Projects Fund accounts for financial transactions of general capital improvements. The capital projects fund for the Impact Fees Fund accounts for developer-paid impact fees for infrastructure construction. The special revenue fund for the Ontario Industrial Development Agency Fund accounts for the financial transactions of the Industrial Development Authority including financing of eligible projects and capital development projects. Each major fund is discussed in the Notes to the Financial Statements.
16 141

MANAGEMENT'S DISCUSSION AND ANALYSIS

As of June 30, 2025, governmental funds reported combined ending fund balances of $649.92 million. Approximately 16.13 percent or $104.82 million of this total amount constitutes assigned/unassigned fund balance. The remaining fund balance of $545.10 million is comprised of the following: Nonspendable $4.42 million; Restricted $264.33 million; and Committed $276.35 million. Included in the Nonspendable fund balance are as follows: Advances to Successor Agency $3.50 million; Inventories $0.26 million; and Prepaid costs $0.51 million. For the Restricted fund balance (external enforceable limitations on usage), they are comprised as follows: General $0.40 million; Community Development projects $34.48 million; Public Safety $6.08 million; Park Development projects $58.51 million; Transportation Improvement projects $8.0 million; Affordable Housing $18.37 million; AQMD activities $0.37 million; and Public Services $99.95 million; Impact Fees $0.34 million; Ontario Housing Authority $37.83 million.

Included in the Committed fund balance (self-imposed limitations on usage) is $276.32 million for City Facilities infrastructure improvements and capital replacement.

Governmental Revenues
Revenues of governmental funds for Fiscal Year 2024-25 were $ 616.94 million, with an increase of $62.06 million or 11.18 percent compared to the previous fiscal year. This increase in governmental revenue is primarily attributable to the increases in Sales Taxes, Property Taxes, and Charges for Services revenues for the Fiscal Year 2024-25.

Table 3 below presents a summary of governmental fund revenues for the fiscal year ended June 30, 2025, with comparative amounts from the prior year.

Comparison of Major Governmental Revenues (Table 3)

Fiscal Years 2024-25 and 2023-24

Comparison of Major Governmental Revenues (Table 3) Fiscal Years 2024-2025 and 2023-24 FY 2024-25 % of Total FY2023-24 % of Total $ Increase / % Increase / Amount Revenues Amount Revenues (Decrease) (Decrease)
Property Tax 105,249,239 $ 17.06% 98,742,225 $ 17.80% 6,507,014 $ 6.59% Sales Tax 203,410,213 32.97% 184,307,995 33.22% 19,102,218 10.36% Transient Occupancy Tax 16,671,971 2.70% 16,625,996 3.00% 45,975 0.28% Parking Tax 4,010,676 0.65% 4,679,844 0.84% (669,168) -14.30% Business Licenses Tax 10,718,444 1.74% 10,902,568 1.96% (184,124) -1.69% Other Taxes 21,510,267 3.49% 21,733,782 3.92% (223,515) -1.03% Licenses & Permits 10,817,111 1.75% 7,879,656 1.42% 2,937,455 37.28% Intergovernmental 47,537,208 7.71% 56,233,669 10.13% (8,696,461) -15.46% Charges for Services 122,446,083 19.85% 110,494,942 19.91% 11,951,141 10.82% Use of Money & Property 32,438,455 5.26% 30,783,172 5.55% 1,655,283 5.38% Fines and Forfeitures 1,419,676 0.23% 1,141,424 0.21% 278,252 24.38% Miscellaneous 40,711,412 6.60% 11,357,192 2.05% 29,354,220 258.46% TOTAL 616,940,755$ 100% 554,882,465 $ 100% 62,058,290 $ 11.18% 17 142

MANAGEMENT'S DISCUSSION AND ANALYSIS

Governmental Expenditures
Total expenditures for Fiscal Year 2024-25 was $929.56 million, an increase of $302.58 million or 50.61 percent compared to the prior year. This is primarily due to increased activities in public works and public safety that occurred in FY 2024-25, as well as the transfer of Engineering functions from Community Development to Public Works.

Table 4 presents a summary of governmental fund expenditures for the Fiscal Year ended June 30, 2025, with comparative amounts from the prior year.

Comparison of Major Governmental Expenditures (Table 4) Fiscal Years 2024-25 and 2023-24

Proprietary Funds
The City’s Proprietary funds consist of four Enterprise Funds and seven Internal Service Funds.

The Internal Service Funds are presented as Governmental Activities in the Proprietary Funds financial statements. Individual fund data is provided in the form of combining statements.

Operating revenues for Enterprise Funds include sales and service charges, interdepartmental charges and miscellaneous. Total operating revenues for all Enterprise Funds for Fiscal Year 2024-25 was $178.81 million, while non-operating revenues were $12.84 million and capital grants and contributions were $1.29 million. Operating expenses for Fiscal Year 2024-25 was $144.71 million. During the fiscal year, the net amount transferred out to the City’s Governmental Funds was $(2.78) million to support the various governmental activities.

The City also has seven internal service funds to allocate costs of the City’s information technology, equipment services, risk management, facilities maintenance, pension benefits, other post-employment benefits, and leave liability expenditures to the various departments. The interdepartmental charges for service (revenues) in Fiscal Year 2024-25 was $116.89 million.

FY 2024-25
Amount
% of total
expenditure
FY 2023-24
Amount
% of total
expenditure
$Increase/
(D ecrease)
%Incr e as e /
(Decrease)
General Government 69,500,543 $ 7.48% 86,078,895 $ 13.90% (16,578,352) $ -19.26% Public Safety 250,985,242 27.00% 240,696,132 38.86% 10,289,110 4.27% Community Development 209,510,920 22.54% 167,612,537 27.06% 41,898,383 25.00% Public Works 370,397,541 39.85% 103,429,890 16.70% 266,967,651 258.11% Total operating expenditure 900,394,246 96.86% 597,817,454 96.52% 302,576,792 50.61% P rincipal, I nterest and cost of issuance
on long-term debt 29,162,725 3.14% 21,578,824 3.48% 7,583,901 35.15% Total 929,556,971$ 100.00% 619,396,278 $ 100.00% 310,160,693 $ 50.07% 18 143

MANAGEMENT'S DISCUSSION AND ANALYSIS

Fiduciary Funds
As mentioned earlier, the City uses Fiduciary Funds to account for resources held for the benefit of parties outside the City, in which the City is acting as trustee. The Statement of Fiduciary Net Position reports twenty-eight activities for which the City has a fiduciary responsibility. These include: a JPA formed between the City and the Agency to establish a vehicle to reduce local borrowing costs and promote greater use of new and existing financial instruments; West End Communications Authority, a seven-member JPA that operates and maintains a consolidated 800MHZ communication system designed to serve public safety agencies; the Sanitary Collection Treatment Fund which collects sewer capital assessment fees on behalf of the Inland Empire Utilities Agency; the West End Fire and Emergency Response Commission, a JPA of five local fire departments to establish a hazardous materials response team, an urban search and rescue team and the servicing of joint authority breathing apparatus equipment used for emergency purposes; Animal Resource Center of the Inland Empire, a JPA of four member agencies for which Ontario is the treasurer; and the Private Purpose Trust Fund for the Successor Agency of the Former Redevelopment Agency, which was formed upon dissolution of the Ontario Redevelopment Agency. The successor agency is subject to the control of the County Oversight Board and can only pay enforceable obligations in existence at the date of dissolution.

Furthermore, it will hold the remaining assets of the former Redevelopment Agency until they are distributed to other units of state and local government. The remaining are assessment/special assessment bond redemption funds and community facility district debt service funds used to collect assessments and administer the debt service of the districts.

GENERAL FUND – FUND BALANCE ANALYSIS
The General Fund is the primary operating fund of the City. The fund balance of $112.31 million as of June 30, 2025, had an increase of $12.44 million compared to the previous year. This is primarily due to the increase in the Stability arrangement. As a measure of the General Fund’s liquidity, it may be useful to compare Assigned fund balance and total fund balance to total fund operating expenditures. Assigned fund balance of $107.61 million represents 95.81 percent of the total General Fund’s fund balance, while the total Non-spendable, Restricted, and Committed fund balance amounts to $4.71 million and comprises 4.19 percent of the total fund balance.

Total fund balance of the General Fund consists of three components: 1) Non-spendable fund balance of $4.31 million – represents $0.51 million in prepaid, $0.26 million in inventory, and $3.5 million in advances to Successor Agency, and Non spendable Long-Term receivable debt $0.04 million; 2) Assigned fund balance of $107.61 million – consists of the stability arrangement of $87.50 million, economic uncertainty of $20.00 million, and continuing appropriations of $0.11 million.

For additional details of the City’s General Fund Balance, please refer to Note 13 in the Notes to the Basic Financial Statements.
19 144

MANAGEMENT'S DISCUSSION AND ANALYSIS

GENERAL FUND – FUND BALANCE ANALYSIS
Revenues
For Fiscal Year 2024-25, General Fund revenues totaled $453.46 million, reflecting an increase of $32.50 million or 7.72 percent compared to the prior fiscal year. This was primarily driven by strong growth in key revenue categories, including Sales Tax and Property Tax.

Sales Tax revenues were $203.41 million, an increase of $19.10 million from the prior fiscal year primarily due to the opening of Amazon facility in the fall of 2024. Transient Occupancy Tax was $16.67 million, a modest increase of $0.04 million or 0.28 percent. Charges for Services revenue were $54.87 million, a slight decrease of $0.51 million or (0.92) percent. Property Tax revenues were $105.25 million, an increase of $6.51 million or 6.59 percent from the prior year because of the growth in property valuations and new commercial and residential development, mainly in Ontario Ranch.

General Fund Revenues (Table 5)
Fiscal Years 2024-25 and 2023-24

The following is an in-depth analysis of each of the revenue sources:
 Property Tax revenues increased $6.51 million or 6.59 percent from the prior year, comprising

23.21 percent of total General Fund revenue. This gain was the result of increased assessed property valuations as well as from ongoing commercial and residential development, primarily in Ontario Ranch.

General Fund Revenues (Table 5) Fiscal Years 2024-25 and 2023-24 $ Increase / % of
% of (Decrease) Increase
FY 2024-25 Total FY 2023-24 to Last Year (Decrease)
Property Tax 105,249,239 $ 23.21% 98,742,225 $ 6,507,014 $ 6.59% Sales Tax 203,410,213 44.86% 184,307,995 19,102,218 10.36% Transient Occupancy Tax 16,671,971 3.68% 16,625,996 45,975 0.28% Other Taxes 19,931,984 4.40% 21,465,830 (1,533,846) -7.15% License & Permits 10,817,111 2.39% 7,879,656 2,937,455 37.28% Intergovernmental 17,980,405 3.97% 23,173,611 (5,193,206) -22.41% Charges for Services 54,872,910 12.10% 55,383,343 (510,433) -0.92% Use of Money & Property 6,549,559 1.44% 5,137,055 1,412,504 27.50% Fines & Forfeitures 1,419,576 0.31% 1,141,324 278,252 24.38% Miscellaneous 16,556,435 3.65% 7,098,255 9,458,180 133.25% Totals 453,459,403 $ 100% 420,955,291 $ 32,504,112 $ 7.72% 20 145

MANAGEMENT'S DISCUSSION AND ANALYSIS

 Sales Tax revenues experienced an increase of $19.10 million or 10.36 percent from the prior year. Of the total General Fund revenue, 44.86 percent comes from sales taxes. This increase was due to the opening of the new Amazon facility in fall of 2024.  Transient Occupancy Tax (TOT) increased slightly by $0.04 million or 0.28 percent from the prior year. It comprises 3.68 percent of the City’s total General Fund revenue base.  Other tax revenues include Franchise Fee, Business License Tax, Property Transfer Tax and Parking Tax, and they comprise $19.93 million or 4.40 percent of the City’s total General Fund revenue. This revenue category reflected a decrease of $ 1.53 million or (7.15) percent from the prior year. These revenues have decreased due to lower property transfer tax revenues as a result of declining property sales.
 License and Permit revenues experienced an increase of $2.94 million or 37.28 percent from the prior year due to increased development activities citywide. It represents 2.39 percent of the total General Fund revenue.
 Intergovernmental revenues decreased by $5.19 million, or (22.41) percent compared to the previous year due to spending of the remaining American Rescue Plan Act (ARPA) funds received for the economic impact from the COVID-19 pandemic. It accounts for 3.97 percent of total General Fund revenue.
 Charges for Services revenues were $54.87 million; a slight decrease of 0.52 million or (0.92) percent from the prior year. Of the total General Fund revenue, 12.10 percent comes from Charges for Services.
 Use of Money and Property category experienced an increase of $1.41 million, or 27.50 percent compared to the prior year. This is mainly due to increased investment earnings.  Fines and Forfeitures were $1.42 million; an increase of $0.28 million or 24.38 percent from the prior year. It accounts for less than one percent of the overall General Fund revenue.  Miscellaneous revenues of $16.56 million, representing 3.65 percent of the total General Fund revenue, increased by $9.46 million or 133.25 percent compared to the prior year. 21 146

MANAGEMENT'S DISCUSSION AND ANALYSIS

Expenditures
For Fiscal Year 2024-25, total General Fund expenditures were $394.61 million and increased $26.90 million or 7.32 percent compared to the previous year.

General Fund Expenditures (Table 6)
Fiscal Years 2024-2025 and 2023-2024
 General Government expenditures were $42.12 million, an increase of $3.41 million or

8.81 percent, from the prior year, primarily due to labor contractual increases and City legal matters.
 Public Safety expenditures were $238.24 million, an increase of $7.81 million or 3.39 percent, compared to the prior year, primarily due to labor contractual increases and purchases of safety related equipment.
 Community Development expenditures were $79.10 million, a decrease of $6.71 million or (7.82) percent, from the prior year, mainly due to the realignment of Engineering staff to Public Works function.
 Public Works expenditure was $31.72 million, an increase of $22.26 million or 235.28 percent. compared to the prior year, mainly due to the realignment of Engineering staff to Public Works function.
 Debt Service expenditure was $3.43 million, a minimal increase of $0.14 million or 4.14 percent compared to the prior year.

FY 2024-25
Amount
% of total
expenditure
FY 2023-24
Amount
$Increase/
(D ecrease)
%Incre as e /
(D ecrease)
General Government 42,124,271$ 10.68% 38,712,927 $ 3,411,344 $ 8.81% Public Safety 238,241,478 60.37% 230,431,183 7,810,295 3.39% Community Development 79,095,855 20.04% 85,809,117 (6,713,262) -7.82% Public Works 31,718,260 8.04% 9,460,576 22,257,684 235.27% Debt Service 3,425,357 0.87% 3,289,102 136,255 4.14% Total 394,605,221 $ 100.00% 367,702,905 $ 26,902,316 $ 7.32% 22 147

MANAGEMENT'S DISCUSSION AND ANALYSIS

ONTARIO HOUSING AUTHORITY – FUND BALANCE ANALYSIS
The Ontario Housing Authority Fund accounts for financial transactions for the Ontario Housing Authority. It is one of the five major governmental funds included in the City’s Annual Comprehensive Financial Report for June 30, 2025. The fund balance is $37.83 million as of June 30, 2025, which is an increase of $10.93 million compared to the prior year. Total Assets were $68.15 million; an increase of $.96 million fr om the prior year. This is primarily due to increased cash and investments and increased properties purchased for resale. Total Liabilities were $5.99 million, a decrease of about $10.21 million compared to the previous fiscal year, as a result of adjustments due to other funds.

ONTARIO HOUSING AUTHORITY – REVENUE AND EXPENDITURE ANALYSIS Revenues
For Fiscal Year 2024-25, total Ontario Housing Authority Fund revenues were $13.08 million; an increase of $12.72 million compared to the prior year. This was primarily due to increased funding for affordable housing projects.

Expenditures
For Fiscal Year 2024-25, total Ontario Housing Authority Fund expenditures were $2.15 million.

There is an increase of $0.25 million compared to the prior year.

CAPITAL PROJECTS FUND – FUND BALANCE ANALYSIS
The Capital Projects Fund accounts for financial transactions of general capital improvements. It is one of the five major governmental funds included in the City’s Annual Comprehensive Financial Report for June 30, 2025. The fund balance of $48.26 million as of June 30, 2025, reflected a decrease of $94.41 million compared to the prior year. The decrease was due to the City’s investments in the Ontario Sports Empire and other capital projects within the last year. The majority of these projects are multi-year and are still ongoing. Total Assets were $237.10 million; an increase of $76.57 million from the previous year . This is mainly attributable to the increase in Cash and Investments as a result of bond funds that fund many of the City capital projects. The total liabilities were $187.96 million, which is an increase of $170.10 million as a result of the increase in the accounts payable liabilities for increased number of Capital Projects.

CAPITAL PROJECTS FUND – REVENUE AND EXPENDITURE ANALYSIS Revenues
For Fiscal Year 2024-25, total Capital Projects Fund revenues were $17.19 million; an increase of $7.19 million compared to the prior year. This increase in revenue was due to the interest income earned on the City’s bond issued in prior years as well as current fiscal year. 23 148

MANAGEMENT'S DISCUSSION AND ANALYSIS

Expenditures
For Fiscal Year 2024-25, total Capital Projects Fund expenditures were $401.54 million. This was a increase of $311.79 million over the previous fiscal year mainly due to development of the Ontario Sports Empire, which includes a professional baseball stadium, parking structures, sports fields, and other off-site improvements.

IMPACT FEES FUND – FUND BALANCE ANALYSIS
The Impact Fees Fund accounts for revenues from developer-paid impact fees for infrastructure or construction. It is one of the five major governmental funds included in the City’s Annual Comprehensive Financial Report for June 30, 2025. The fund balance of $230.67 million as of June 30, 2025, reflected an increase of $5.69 million. Total Assets were $243.55 million; an increase of $3.15 million from the previous year is mainly attributable increased impact fee revenues received during the year, as a result of increase development activities. This resulted with an increase in the Cash and Investments balance for FY 2024-25. As these developer projects progress, development impact fees are incurred and paid to the City. Total Liabilities of $12.88 million, slightly decreased by $2.54 million from previous year, due to a decline in the accounts payable balance at year-end.

IMPACT FEES FUND – REVENUE AND EXPENDITURE ANALYSIS
Revenues
For Fiscal Year 2024-25, total Impact Fees Fund revenues were $42.43 million; a decrease of $5.72 million as a result of several major projects have been completed, and many new projects are still in the early phases of both commercial and residential development in Ontario Ranch.

Expenditures
For Fiscal Year 2024-25, total Impact Fees Fund expenditures were $36.74 million. This was an increase of $5.62 million due to continued development projects, primarily in Ontario Ranch.

GENERAL FUND BUDGETARY HIGHLIGHTS
Over the course of the year, the City Council revised the City’s budget several times. Budget revisions fall into three categories. The first category includes carry-forward encumbrances and capital projects that are approved shortly after the beginning of the year. The second category includes changes that the Council makes during the quarterly budget process. Finally, the Council approves supplemental appropriations throughout the year based on individual items that are brought forward by various departments. The General Fund budgetary comparison statement is included in the Basic Financial Statements.

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MANAGEMENT'S DISCUSSION AND ANALYSIS

Resources (Inflows)
The budgeted amount for revenues (resources available for appropriation), including transfers, had an increase of $12.77 million between the original budget of $428.87 million and the final amended budget of $441.64 million. The increase was mainly due to increase in miscellaneous receipts, which include sales of city property, and miscellaneous billing revenues an increase of $10.32 million. Sales and property tax increased by $3.18 million. Actual revenues were $15.28 million more than the final amended budget, for a total of $456.92 million, including transfers.

Charges to Appropriations (Outflows)
The budgeted amounts for expenditures (appropriations) including transfers had an increase of $10.89 million between the original budget of $427.43 million and the final amended budget of $438.32 million. This increase was primarily the result of the following: $5.00 million for Toyota Arena capital improvements, $3.00 million for the City share of the Animal Resource Center agreement, $1.70 million carryforward of obligations from FY 2023-24, and $1.20 million one-time funding to Equipment Services.

Table 7 is a comparison of actual inflow and outflow with the final budget.

Budgetary Comparison for General Fund (Table 7)
Fiscal Year 2024-25
(In millions)
Original Final Variance Actual
Final Budget
Variance
Favorable /
(Unfavorable)
R esources (Inflows):

Taxes 337.53$ 340.70$ 3.18$ 345.26$ 4.56$ Licenses and permits 7.06 7.06 - 10.82 3.76 Intergovernmental 18.26 17.55 (0.71) 17.98 0.43 Charges for Services 54.99 54.53 (0.47) 54.87 0.35 Use of Money and Property 1.48 1.48 - 6.55 5.07 Fines and Forfeitures 0.90 0.90 - 1.42 0.52 Miscellaneous 5.65 15.96 10.32 16.56 0.59 Transfer from Other funds 3.00 3.46 0.46 3.46 - Total Resources 428.87$ 441.64$ 12.77$ 456.92$ 15.28$ Charges to Appropriations (Outflow s):

General Government 44.08$ 44.95$ 0.88$ 42.12$ (2.83)$ Public Safety 235.22 234.14 (1.08) 238.24 4.10 Community Development 68.09 76.15 8.06 79.10 2.95 Public Works 32.90 33.74 0.84 31.72 (2.02) Debt Services - - - 3.43 3.43 Transfers to Other Funds 47.15 49.34 2.19 49.88 0.54 Total Charges to Appropriations 427.43$ 438.32$ 10.89$ 444.48$ 6.16$ Budget Amounts
25 150

MANAGEMENT'S DISCUSSION AND ANALYSIS

CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets (Table 8) for its governmental and business-type activities as of June 30, 2025, is $2.07 billion (net of accumulated depreciation). This investment in capital assets includes land, structures and improvem ents, furniture and equipment, infrastructure, and construction in progress. For more information, please refer to Note 6 in the Notes to the Basic Financial Statements. The Capital Assets of the City are those assets which are used in the performance of the City’s functions including infrastructure assets. Depreciation on capital assets is recognized in the Government-wide financial statements.

Capital Assets (Table 8)
(net of depreciation)
(in millions)
Additional detailed information is provided on Capital Assets in the Notes to Financial Statements, Note 6.

The City has elected to use the “Modified Approach” as defined by GASB Statement No. 34 for its Governmental Activities infrastructure reporting. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
 The City manages the eligible infrastructure capital assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established condition assessment level.  The City documents that eligible infrastructure capital assets are being preserved approximately at or above the established disclosed assessment.

The City’s streets are constantly deteriorating resulting from the following four factors: (1) traffic using the streets; (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement; (3) utility company/private development interests trenching operations; and (4) water damage from natural precipitation and other urban runoff. The City is continuously taking actions 2025 2024 2025 2024 2025 2024
Land 338.56$ 306.67$ 16.26$ 16.26$ 354.82 322.91$ Structures and Improvement 220.91 223.19 11.61 12.13 232.52 235.32 Furniture and Equipments 51.10 45.63 3.72 6.96 54.82 52.59 Infrastructures 719.54 728.40 103.69 110.24 823.23 838.64 Construction in Progress 512.89 158.07 82.33 20.97 595.22 179.04 Right-to-Use Lease Asset 1.38 1.15 - - 1.38 1.15 Subscription Assets 4.33 4.78 - - 4.33 4.78 Total Capital asset 1,848.71$ 1,467.89$ 217.61$ 166.56$ 2,066.31$ 1,634.42$ Governmental Activities Business-Type Activities Government-Wide Totals 26 151

MANAGEMENT'S DISCUSSION AND ANALYSIS

to arrest the deterioration through short-term maintenance activities such as pothole patching, street sweeping, and street paving.

The City expended $10.88 million on street maintenance for the fiscal year ended June 30, 2025, to delay deterioration. The City has estimated that the amount of annual expenditures required maintaining the City’s streets at the minimum Pavement Condition Index (PCI) rating of “Good” through the Fiscal Year 2029-30 is a minimum of $10.10 million per year. Overall, the city’s PCI rating for its street system was 80.2 with 77.20 percent of city streets receiving a rating condition of “excellent to very good”. As of June 30, 2025, the City had approximately 117.53 million square feet of streets with a carrying amount of approximately $583.13 million and a replacement cost of approximately $1,457.32 million.

The City is also continuously taking actions to arrest the deterioration of other infrastructure assets through short-term maintenance activities. The City expended $11.75 million on other infrastructure (sidewalks, traffic signals/streetlights and catch basins/storm drains) maintenance for the fiscal year ended June 30, 2025. These expenditures delayed deterioration and improved the overall condition through these maintenance efforts. It is estimated that it will cost approximately $10.63 million per year to maintain other infrastructure assets at their present level through Fiscal Year 2029-30. For more information, see Required Supplemental Information following the footnotes to the financial statements.

Long-term Debt
At year end, the City had $947.69 million in outstanding long-term debt. This debt consisted of revenue bonds, loans and notes payable, installment sale and advances from Successor Agency.

For additional details of the City’s long-term debt, please refer to Note 8 in the Notes to the Basic Financial Statements.

Table 9 below is a summary of the City’s long-term debt for the year ended June 30, 2025.

Long-Term Debt (Table 9)
(in millions)

2025 2024 2025 2024 2025 2024
Revenue Bonds 434.74$ 245.71$ 104.00$ 62.63$ 538.74$ 308.34$ Pension Obligation Bonds 211.16 217.82 - - 211.16 217.82 Loan Payable 125.02 136.18 - - 125.02 136.18 Installment Sale - 4.92 - - - 4.92 Notes Payable 42.54 - - - 42.54 - Advances from the Successor Agency 1.60 1.60 - - 1.60 1.60 Lease Liability 1.36 1.13 - - 1.36 1.13 Unamortized bond premium/discount 21.03 12.45 6.24 - 27.27 12.45 Total long term debt 837.45$ 619.81$ 110.24$ 62.63$ 947.69$ 682.44$ Governmental Activities Business-Type Activities Government-Wide Totals 27 152

MANAGEMENT'S DISCUSSION AND ANALYSIS

CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the City’s finances and to show the City’s accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to:

Executive Director of Finance
City of Ontario
303 East “B” Street
Ontario, California 91764
28 153

BASIC FINANCIAL

STATEMENTS
29 154

BASIC FINANCIAL

STATEMENTS
30 155

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
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33 158
City of Ontario
Statement of Net Position
June 30, 2025
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:

Cash and investments 481,535,291 $ 96,605,775 $ 578,141,066 $ Receivables:

Accounts 38,104,421 34,052,496 72,156,917 Taxes 42,036,800 - 42,036,800 Accrued interest 4,349,767 861,336 5,211,103 Leases 241,174 131,088 372,262 Internal balances (58,495,982) 58,495,982 - Prepaid costs 6,635,814 153,856 6,789,670 Deposits 48,084,923 - 48,084,923 Due from other governments 11,309,560 - 11,309,560 Inventories 4,427,212 2,747,091 7,174,303 Advances to Successor Agency 3,500,000 - 3,500,000 Restricted assets:

Cash and investments 182,339,449 47,470,945 229,810,394 Cash and investments with fiscal agent 7,982,001 - 7,982,001 Total current assets 772,050,430 240,518,569 1,012,568,999 Noncurrent assets:

Notes and Loans 62,507,818 - 62,507,818 Leases receivable 2,195,101 737,213 2,932,314 Equity interest in joint ventures - 72,281,807 72,281,807 Other investments - 184,913,339 184,913,339 Land held for resale 175,166,385 - 175,166,385 Capital assets:

Nondepreciable 1,462,355,889 98,584,438 1,560,940,327 Depreciable 787,736,192 304,673,673 1,092,409,865 Less accumulated depreciation (401,384,405) (185,644,572) (587,028,977) Total capital assets 1,848,707,676 217,613,539 2,066,321,215 Total noncurrent assets 2,088,576,980 475,545,898 2,564,122,878 Total assets 2,860,627,410 716,064,467 3,576,691,877

DEFERRED OUTFLOWS OF RESOURCES
Deferred charges on refunding 2,461,252 2,859,925 5,321,177 Deferred pension related items 83,625,819 6,327,562 89,953,381 Deferred OPEB related items 11,757,440 4,156,801 15,914,241 Total deferred outflows of resources 97,844,511 13,344,288 111,188,799 Primary Government
See accompanying Notes to Basic Financial Statements.
34 159
City of Ontario
Statement of Net Position (Continued)
June 30, 2025
Governmental Business-type
Activities Activities Total

LIABILITIES
Current liabilities:

Accounts payable 103,291,985 36,534,252 139,826,237 Accrued liabilities 12,971,608 112,950 13,084,558 Accrued interest 6,400,120 1,429,555 7,829,675 Unearned revenue 32,352,911 1,809,424 34,162,335 Deposits payable 38,230,140 7,884,319 46,114,459 Due to other governments 2,102,372 - 2,102,372 SBITA liabilities - current 1,748,287 - 1,748,287 Compensated absences - current 21,177,846 2,749,705 23,927,551 Claims and judgements - current 11,664,000 - 11,664,000 Long-term debt - current portion 30,405,490 3,480,000 33,885,490 Total current liabilities 260,344,759 54,000,205 314,344,964 Noncurrent liabilities:

SBITA liabilities 1,894,029 - 1,894,029 Compensated absences 20,771,707 567,238 21,338,945 Claims and judgements 34,495,000 - 34,495,000 Net pension liability 113,170,752 10,057,790 123,228,542 Net OPEB liability 11,585,608 4,096,049 15,681,657 Long-term debt 807,048,186 106,759,074 913,807,260 Total noncurrent liabilities 988,965,282 121,480,151 1,110,445,433 Total liabilities 1,249,310,041 175,480,356 1,424,790,397

DEFERRED INFLOWS OF RESOURCES
Deferred charges on refunding 687,830 - 687,830 Deferred inflows of resources - pension 2,384,424 191,402 2,575,826 Deferred inflows of resources - leases 2,060,309 789,052 2,849,361 Deferred inflows of resources - OPEB 30,739,503 10,867,840 41,607,343 Total deferred inflows of resources 35,872,066 11,848,294 47,720,360

NET POSITION
Net investment in capital assets 1,199,278,053 157,705,335 1,356,983,388 Restricted for:

Community development projects 149,902,259 - 149,902,259 Public safety 24,454,431 - 24,454,431 Capital projects - 47,470,945 47,470,945 Affordable housing 61,914,784 - 61,914,784 Other purposes 61,060,262 - 61,060,262 Total restricted 297,331,736 47,470,945 344,802,681 Unrestricted 176,680,025 336,903,825 513,583,850 Total net position 1,673,289,814$ 542,080,105$ 2,215,369,919$ Primary Government
See accompanying Notes to Basic Financial Statements.
35 160
City of Ontario
Statement of Activities
For the year ended June 30, 2025
Operating Capital
Charges for Grants and Grants and
Functions/Programs Expenses Services Contributions Contributions Governmental activities:

General government 65,594,979 $ 4,797,453 $ 17,666,484 $ - $ Public safety 258,987,243 41,264,027 - 7,756,432 Community development 150,474,389 112,437,701 - 8,350,491 Public works 67,028,991 7,352,437 - 18,630,492 Interest on long-term debt 21,098,167 - - - Total governmental activities 563,183,769 165,851,618 17,666,484 34,737,415 Business-type Activities:

Water 49,795,227 84,911,549 484,037 26,489 Sewer 36,304,027 33,867,795 - 265,413 Integrated Waste 64,257,799 60,339,708 857,828 1,006,625 Total Business-Type activities 150,357,053 179,119,052 1,341,865 1,298,527 Total primary government 713,540,822$ 344,970,670 $ 19,008,349 $ 36,035,942 $ General Revenues:

Taxes:

Property taxes, levied for general purpose
Transient occupancy taxes
Sales taxes
Franchise taxes
Business license taxes
Other taxes
Total taxes
Motor vehicle in lieu, unrestricted
Use of money and property
Other
Gain on sale of property
Transfers
Total general revenues and transfers
Change in net position
Net position - beginning of year, as previously stated
Restatements
Net position - beginning of year, as restated
Net position - end of year
Program Revenues
See accompanying Notes to Basic Financial Statements.
36 161
Governmental Business-Type
Total Activities Activities Total
22,463,937$ (43,131,042) $ - $ (43,131,042)$ 49,020,459 (209,966,784) - (209,966,784) 120,788,192 (29,686,197) - (29,686,197) 25,982,929 (41,046,062) - (41,046,062) - (21,098,167) - (21,098,167) 218,255,517 (344,928,252) - (344,928,252) 85,422,075 - 35,626,848 35,626,848 34,133,208 - (2,170,819) (2,170,819) 62,204,161 - (2,053,638) (2,053,638) 181,759,444 - 31,402,391 31,402,391 400,014,961$ (344,928,252) 31,402,391 (313,525,861) 105,249,239 - 105,249,239 16,671,971 - 16,671,971 203,410,213 - 203,410,213 3,567,973 - 3,567,973 10,718,444 - 10,718,444 21,667,233 - 21,667,233 361,285,073 - 361,285,073 285,738 - 285,738 40,847,011 14,399,576 55,246,587
3,751,210 - 3,751,210 5,791,452 - 5,791,452 (21,429) 21,429 -
411,939,055 14,421,005 426,360,060
67,010,803 45,823,396 112,834,199
1,617,876,227 484,777,066 2,102,653,293
(11,597,216) 11,479,643 (117,573)
1,606,279,011 496,256,709 2,102,535,720
1,673,289,814$ 542,080,105$ 2,215,369,919$
and Changes in Net Position
Net (Expense) Revenue
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38 163
FUND

FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
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City of Ontario
Balance Sheet
Governmental Funds
June 30, 2025
Special Revenue
Fund
Capital Project
Fund
Ontario
Housing Capital
General Authorit y Projects
ASSETS
Cash and investments 4,927,339 $ 740,858 $ 23,523 $ Receivables:

Accounts 9,863,309 128,694 1,048,644 Taxes 41,963,140 - -
Notes and loans 48,000 30,332,206 - Leases 2,436,275 - - Accrued interest 691,772 - - Prepaid costs 506,569 - 113,858 Deposits - 354,389 43,017,934 Due from other governments 11,309,560 - - Due from other funds 88,588,804 - - Advances to other funds - - - Advances to Successor Agency 3,500,000 - - Inventories 255,731 - - Land held for resale - 36,593,203 2,762,682 Restricted assets:

Cash and investments - - 182,303,674 Cash and investments with fiscal agents - - 7,823,924 Total assets 164,090,499$ 68,149,350$ 237,094,239$

LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES Liabilities:

Accounts payable 13,105,487$ 11,535$ 74,508,916$ Accrued liabilities 12,659,097 19,841 3,493 Unearned revenues 3,308,917 - 23,984,000 Deposits payable 18,280,305 - 873,312 Due to other governments 1,488 - - Due to other funds - - 88,588,804 Advances from other funds - 5,961,399 - Total liabilities 47,355,294 5,992,775 187,958,525

Deferred Inflows of Resources
Unavailable revenues 2,357,840 24,326,991 881,458 Leases 2,060,309 - - Total deferred inflows of resources 4,418,149 24,326,991 881,458

Fund Balances:

Nonspendable 4,310,300 - - Restricted 395,780 37,829,584 -
Committed - - 48,254,256 Assigned 107,610,976 - - Unassigned - - - Total fund balances 112,317,056 37,829,584 48,254,256 Total liabilities, deferred inflows of resources
and fund balances 164,090,499$ 68,149,350$ 237,094,239$ See accompanying Notes to Basic Financial Statements.
42 167
Industrial Other Total
Development Governmental Governmental
Impact Fees Authorit y Funds Funds
241,566,703$ 9,467 $ 132,481,196$ 379,749,086 $ 3,347 - 19,720,969 30,764,963 - - 73,660 42,036,800 - - 32,127,612 62,507,818 - - - 2,436,275 1,673,000 70 1,122,053 3,486,895 - - 511,297 1,131,724 308,112 - 3,625,387 47,305,822 - - - 11,309,560 - - - 88,588,804 - - 5,961,399 5,961,399 - - - 3,500,000 - - 2,889,481 3,145,212 - 52,628,000 83,182,500 175,166,385 - - 35,775 182,339,449 - - - 7,823,924 243,551,162$ 52,637,537 $ 281,731,329 $ 1,047,254,116 $ 1,158,051$ - $ 8,542,215$ 97,326,204 $ - - 198,932 12,881,363 - - 5,059,994 32,352,911 11,721,127
- 1,440,793 32,315,537 - - 2,100,884 2,102,372 - - 20,467,153 109,055,957 - 55,000,000 4,996,588 65,957,987 12,879,178 55,000,000 42,806,559 351,992,331 - - 15,713,323 43,279,612 - - - 2,060,309 - - 15,713,323 45,339,921 - - 108,554 4,418,854 340,870 - 225,764,549 264,330,783 228,067,098 - - 276,321,354 2,264,016 - - 109,874,992 - (2,362,463) (2,661,656) (5,024,119) 230,671,984 (2,362,463) 223,211,447 649,921,864 243,551,162$ 52,637,537$ 281,731,329$ 1,047,254,116$ Capital Project Funds
43 168
Total Fund Balances - Total Governmental Funds 649,921,864$ Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the internal service funds reported below, the capital assets were adjusted as follows:

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Nondepreciable 1,462,355,889$ (41,962,774)$ 1,420,393,115 Depreciable, net 386,351,787 (60,765,467) 325,586,320 Total capital assets 1,848,707,676$ (102,728,241)$ 1,745,979,435 Internal service funds were used by management to charge the costs of certain activities, such as insurance, to individual funds. The assets and liabilities of the Internal service funds were included in governmental activities in the Government-Wide Statement of Net Position. (133,233,133) Unavailable revenues recorded in the fund financial statements resulting from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 43,279,612 In the Government-Wide Financial Statements, deferred employer contributions for pension and OPEB, certain differences between actuarial estimates and actual results, and other adjustments resulting from changes in assumptions and benefits are deferred in the current year.

Government-
Wide Statement
of Net Position
Internal Service
Funds
Deferred outflows of resources related to pension 83,625,819 (2,999,050) 80,626,769 Deferred outflows of resources related to OPEB 11,757,440 (11,757,440) - Deferred inflows of resources related to pension (2,384,424) 90,719 (2,293,705) Deferred inflows of resources related to OPEB (30,739,503) 30,739,503 - Long-term liabilities were not due and payable in the current period.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Government-
Wide Statement
of Net Position
Internal Service
Funds Total
Compensated absences - due within one
year (21,177,846)$ 21,177,846$ -$
Interest payable (6,400,120) 763,532 (5,636,588) Long-term debt - due within one year (30,405,490) 9,669,580 (20,735,910) Unamortized deferred gain on refunding (687,830) - (687,830) Unamortized deferred loss on refunding 2,461,252 - 2,461,252 Unamoritzed prepaid bond insurance premium 110,081 - 110,081 SBITA liabilities (3,642,316) 2,328,589 (1,313,727) Compensated absences - due in more than one year (20,771,707) 20,771,707 - Long-term debt - due in more than one year (807,048,186) 230,263,578 (576,784,608) Net pension liability (113,170,752) 4,767,054 (108,403,698) Net OPEB liability 11,585,608 (11,585,608) - Total long-term liabilities (989,147,306)$ 278,156,278 $ (710,991,028) Net Position of Governmental Activities 1,673,289,814$
City of Ontario
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2025
Amounts reported for governmental activities in the statement of net position are different because:

See accompanying Notes to Basic Financial Statements.
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City of Ontario
Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds
For the year ended June 30, 2025
Special Revenue
Fund
Capital Project
Funds
Ontario
Housing Capital
General Authorit y Projects
REVENUES:

Taxes 345,263,407 $ - $ - $
Special assessment taxes - - - Licenses and permits 10,817,111 - - Intergovernmental 17,980,405 - 828,124 Charges for services 54,872,910 143,102 - Use of money and property 6,549,559 681,373 5,459,259 Fines and forfeitures 1,419,576 - - Miscellaneous 16,556,435 12,255,245 10,905,968 Total revenues 453,459,403 13,079,720 17,193,351 EXPENDITURES:

Current:

General government 42,124,271 43,000 4,301,779 Public safety 238,241,478 - 4,942,896 Community development 79,095,855 2,111,343 63,111,666 Public works 31,718,260 - 309,621,793 Debt service:

Principal retirement 3,425,357 - 13,806,919 Interest and fiscal charges - - 4,080,808 Cost of issuance - - 1,678,335 Total expenditures 394,605,221 2,154,343 401,544,196

REVENUES OVER (UNDER)
EXPENDITURES 58,854,182 10,925,377 (384,350,845) OTHER FINANCING SOURCES (USES):

Transfers in 3,459,374 - 40,762,532 Transfers out (49,877,385) - - Notes and loans issued - - 249,174,035 Total other financing sources (uses) (46,418,011) - 289,936,567 Net change in fund balances 12,436,171 10,925,377 (94,414,278) FUND BALANCES:

Beginning of year, as previously stated 99,880,885 26,904,207 142,668,534 Restatement - correction of error -
- -
Beginning of year, as restated 99,880,885 26,904,207 142,668,534 End of year 112,317,056$ 37,829,584$ 48,254,256$ See accompanying Notes to Basic Financial Statements.
46 171
Industrial Other Total
Development Governmental Governmental
Impact Fees Authorit y Funds Funds
-$ - $ 193,295$ 345,456,702$ - - 16,114,108 16,114,108 - - - 10,817,111 - - 28,728,679 47,537,208 30,184,745 - 37,245,326 122,446,083 12,243,591 371 7,504,302 32,438,455 - - 100 1,419,676 519 - 993,245 40,711,412 42,428,855 371 90,779,055 616,940,755 802,315 - 22,229,178 69,500,543 49,470 - 7,751,398 250,985,242 29,981,174 2,362,840 32,848,042 209,510,920 5,904,521 - 23,152,967 370,397,541 - - 6,009,775 23,242,051 - - 161,531 4,242,339 - - - 1,678,335 36,737,480 2,362,840 92,152,891 929,556,971 5,691,375 (2,362,469) (1,373,836) (312,616,216) - - 290,603 44,512,509 - - (3,148,427) (53,025,812) -
- - 249,174,035 - - (2,857,824) 240,660,732 5,691,375 (2,362,469) (4,231,660) (71,955,484) 224,980,609 6 232,059,386 726,493,627 - - (4,616,279) (4,616,279) 224,980,609 6 227,443,107 721,877,348 230,671,984$ (2,362,463)$ 223,211,447$ 649,921,864$ Capital Project Funds
47 172
City of Ontario
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Government-Wide Statement of Activities For the year ended June 30, 2025
Net Change in Fund Balances - Total Governmental Funds (71,955,484)$ Governmental funds reported capital outla y as expenditures. However, i n the Government-Wide Statement of Activities, the cost of those assets was allocated over their estimated lives as depreciation expense. This was the amount of capital assets recorded in the current period, net of the amount related to internal service funds. 391,185,451 Depreciation expense o
n capital assets was reported i n the Government-Wide Statement of Activities, but did not require the use of current financial resources. Therefore, depreciation expense was not reported as expenditures in the governmental funds, net of the amount related to internal service funds. (18,685,414)
Debt proceeds provide current financial resources to
governmental funds, but issuin g debt
increased long-term liabilities in the Government-Wide Statement of Net Position. Repayment of debt was an expenditure in governmental funds, but the repayment reduced long-term liabilities in the Government-Wide Statement of Net Position.

Lon
g-term debt repayments 23,242,051
Issuance of long-term debt (249,174,035)
Interest payable (3,215,191)
Amortization of prepaid bond insurance (8,783)
Amortization of deferred charges 62,060
Amortization of bonds premium (discount), net 658,402
Capital assets amounts transferred to business-type activities (2,104,741) Current year emplo yer pension contributions are recorded as expenditures i n the governmental funds, however, these amounts are reported as a deferred outflow of resources in the Government - Wide Statement of Net Position. 28,013,180
Pension expense is reported i n the Government-Wide Statement of Activities does not require the use of current financial resources, and therefore is not reported as expenditures in governmental funds. (47,284,968)
Unavailable revenues recorded i
n the fund financial statements resultin g from activities in which revenues were earned but were not available are reclassified as revenues in the Government-Wide Financial Statements. 4,866,690
Internal service funds were used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net revenue of the internal service funds was reported with governmental activities. 11,411,585

Change in Net Position of Governmental Activities 67,010,803$ Amounts reported for governmental activities in the Government-Wide Statement of Activities were different because:

See accompanying Notes to Basic Financial Statements.
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City of Ontario
Statement of Net Position
Proprietary Funds
June 30, 2025
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds
ASSETS
Current Assets:

Cash and investments 64,435,805$ 14,707,383 $ 17,462,587 $ 96,605,775 $ 101,786,205 $ Receivables:

Accounts 16,071,117 5,562,330 12,419,049 34,052,496 7,339,458 Leases 131,088 - - 131,088 - Accrued interest 626,819 107,216 127,301 861,336 862,872 Prepaid costs 53,507 23,164 77,185 153,856 5,394,003 Deposits - - - - 779,101 Due from other funds - - - - 21,725,859 Inventories 2,197,673 549,418 - 2,747,091 1,282,000 Restricted:

Cash and investments 47,470,945 - - 47,470,945 - Cash with fiscal agent - - - - 158,077 Total current assets 130,986,954 20,949,511 30,086,122 182,022,587 139,327,575 Noncurrent:

Leases receivable 737,213 - - 737,213 - Advances to other funds 37,160,565 31,055,277 17,391,925 85,607,767 59,996,588 Equity interest in joint ventures 72,281,807 - - 72,281,807 - Other investments 184,913,339 - - 184,913,339 - Capital assets:

Nondepreciable 57,455,007 40,427,426 702,005 98,584,438 41,962,774 Depreciable 233,540,310 63,054,876 8,078,487 304,673,673 160,995,346 Less accumulated depreciation (136,761,436) (45,638,004) (3,245,132) (185,644,572) (100,229,879) Net capital assets 154,233,881 57,844,298 5,535,360 217,613,539 102,728,241 Total noncurrent assets 449,326,805 88,899,575 22,927,285 561,153,665 162,724,829 Total assets 580,313,759 109,849,086 53,013,407 743,176,252 302,052,404

DEFERRED OUTFLOWS OF RESOURCES

Deferred charges on refunding 2,859,925 - - 2,859,925 - Deferred pension related items 2,509,707 1,051,364 2,766,491 6,327,562 2,999,050 Deferred OPEB related items 1,648,716 690,678 1,817,407 4,156,801 11,757,440 Total deferred outflows of
resources 7,018,348 1,742,042 4,583,898 13,344,288 14,756,490 Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
50 175
City of Ontario
Statement of Net Position
Proprietary Funds (Continued)
June 30, 2025
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds

LIABILITIES

Current liabilities:

Accounts payable 11,983,069 19,965,117 4,586,066 36,534,252 5,965,781 Accrued liabilities 76,705 4,723 31,522 112,950 90,245 Accrued interest 1,429,555 - - 1,429,555 763,532 Unearned revenues 348,845 1,312,467 148,112 1,809,424 - Deposits payable 6,303,284 - 1,581,035 7,884,319 5,914,603 Due to other funds - - - - 1,258,706 SBITA liabilities - current - - - - 1,325,399 Compensated absences - current 1,568,291 232,261 949,153 2,749,705 21,177,846 Claims and judgements - current - - - - 11,664,000 Long-term debt - current portion 3,480,000 - - 3,480,000 9,669,580 Total current liabilities 25,189,749 21,514,568 7,295,888 54,000,205 57,829,692 Noncurrent liabilities:

Advances from other funds - - - - 85,607,767 SBITA liabilities - - - - 1,003,190 Compensated absences 323,525 47,913 195,800 567,238 20,771,707 Claims and judgements - - - - 34,495,000 Net pension liability 3,989,231 1,671,164 4,397,395 10,057,790 4,767,054 Net OPEB liability 1,624,620 680,585 1,790,844 4,096,049 11,585,608 Long-term debt 106,759,074 - - 106,759,074 230,263,578 Total noncurrent liabilities 112,696,450 2,399,662 6,384,039 121,480,151 388,493,904 Total liabilities 137,886,199 23,914,230 13,679,927 175,480,356 446,323,596

DEFERRED INFLOWS OF RESOURCES

Deferred pension related items 75,916 31,803 83,683 191,402 90,719 Deferred leases related amounts 789,052 - - 789,052 - Deferred OPEB related items 4,310,521 1,805,759 4,751,560 10,867,840 30,739,503 Total deferred inflows of resources 5,175,489 1,837,562 4,835,243 11,848,294 30,830,222

NET POSITION
Net investment in capital assets 94,325,677 57,844,298 5,535,360 157,705,335 75,475,824 Restricted 47,470,945 - - 47,470,945 - Unrestricted 302,473,797 27,995,038 33,546,775 364,015,610 (235,820,748) Total net position 444,270,419$ 85,839,336$ 39,082,135$ 569,191,890$ (160,344,924)$ 569,191,890$
(28,762,441)
1,650,656
542,080,105$
Current year's adjustment to reflect the consolidation of internal service activities related to enterprise funds
Net Position per Government-Wide Statement of Net Position Net Position per Statement of Net Position - Proprietary Funds Prior years' accumulated adjustment to reflect the consolidation of internal service funds activities related to the enterprise funds, as restated Reconciliation of Net Position to the Government-Wide Statement of Net Position:

Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
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52 177
City of Ontario
Statement of Revenues, Expenses and Changes in Net Position Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds
OPERATING REVENUES:

Sales and service charges 78,393,852$ 33,207,315$ 59,467,344$ 171,068,511$ -$ Interdepartmental charges - - - - 116,896,241
Miscellaneous 6,212,799 660,480 872,364 7,745,643 13,489,917 Total operating revenues 84,606,651 33,867,795 60,339,708 178,814,154 130,386,158 OPERATING EXPENSES:

Administration and general 20,855,519 12,938,989 60,502,477 94,296,985 93,378,900 Source and supply 9,070,838 - - 9,070,838 13,514,054 Pumping 10,930,073 - - 10,930,073 - Treatment - 21,969,469 - 21,969,469 -
Claims expense - - - - 728,935
Depreciation expense 5,779,751 1,663,976 995,189 8,438,916 13,928,477 Total operating expenses 46,636,181 36,572,434 61,497,666 144,706,281 121,550,366 Operating income (loss) 37,970,470 (2,704,639) (1,157,958) 34,107,873 8,835,792 NONOPERATING REVENUES (EXPENSES):

Grant revenue 484,037 - 857,828 1,341,865 - Interest revenue 9,732,841 2,932,235 1,734,500 14,399,576 8,408,556 Interest expense (3,197,681) - - (3,197,681) (12,673,981) Gain on joint venture 304,898 - - 304,898 -
Total nonoperating revenues (expenses) 7,324,095 2,932,235 2,592,328 12,848,658 (4,265,425) Income before contributions and transfers 45,294,565 227,596 1,434,370 46,956,531 4,570,367 CONTRIBUTIONS AND TRANSFERS:

Capital grants and contributions 26,489 265,413 1,006,625 1,298,527 - Contribution of capital assets (603,628) (24,089) (3,476,030) (4,103,747) - Transfers in 1,000,000 - - 1,000,000 9,476,042 Transfers out (394,082) (163,553) (420,936) (978,571) (984,168) Total contributions and transfers 28,779 77,771 (2,890,341) (2,783,791) 8,491,874 Change in net position 45,323,344$ 305,367$ (1,455,971)$ 44,172,740$ 13,062,241$ NET POSITION:

Beginning of year 387,134,507 85,577,333 40,827,667 513,539,507 (165,838,176) Restatement - implementation of GASB 101 (226,889) (43,364) (289,561) (559,814) (7,219,623) Restatement - correction of error 12,039,457 - - 12,039,457 (349,366) Beginning of year, as restated 398,947,075 85,533,969 40,538,106 525,019,150 (173,407,165) End of year 444,270,419$ 85,839,336$ 39,082,135$ 569,191,890$ (160,344,924)$ 44,172,740$
1,650,656
45,823,396$ Changes in Net Position of Business-Type Activities per Statement of Activities Adjustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise funds Business-Type Activities - Enterprise Funds
Reconciliation of Changes in Net Position to the Statement of Activities:

Changes in Net Position, per the Statement of Revenues, Expenses and Changes in Fund Net Position - Proprietary Funds See accompanying notes to Basic Financial Statements.
53 178
City of Ontario
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2025
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received from customers and users 84,759,886$ 33,203,541 $ 59,603,313 $ 177,566,740 $ - $ Cash received from/(paid to) interfund services - - - - 130,540,178 Cash paid to suppliers for goods and services (15,104,124) (4,486,886) 487,279 (19,103,731) (14,409,360) Cash paid to employees for services (22,024,774) (13,657,753) (62,100,291) (97,782,818) (93,955,337) Net cash provided by (used in) operating activities 47,630,988 15,058,902 (2,009,699) 60,680,191 22,175,481 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:

Cash transfers in 1,000,000 - - 1,000,000 9,476,042 Cash transfers out (394,082) (163,553) (420,936) (978,571) (984,168) Due to/(from) other funds - - - - (20,467,153) Advances paid to other funds (11,830,776) (1,997,728) (2,405,365) (16,233,869) (7,610,908) Advances from other funds - - - - 18,848,189 Interest paid on pension obligation bonds - - - - (11,809,505) Principal paid on pension obligation bonds - - - - (6,660,000) Grant subsidy 484,037 - 857,828 1,341,865 - Net cash provided by (used in)
noncapital financing activities (10,740,821) (2,161,281) (1,968,473) (14,870,575) (19,207,503) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition and construction of capital assets (22,647,593) (38,714,550) (2,238,964) (63,601,107) (22,388,660) Acquisition of other investments (27,970,659) - - (27,970,659) - Proceeds from leases receivable 197,649 - - 197,649 - Interest paid on capital debt (2,243,692) - - (2,243,692) (867,305) Principal paid on capital debt (2,580,000) - - (2,580,000) (1,419,530) Proceed from issuance of capital debt 50,194,074
- - 50,194,074 - Principal paid on SBITAs - - - - (1,385,795) Reimbursement agreement 26,489 265,413 1,006,625 1,298,527 - Net cash provided by (used in)
capital and related financing activities (5,023,732) (38,449,137) (1,232,339) (44,705,208) (26,061,290) CASH FLOWS FROM INVESTING ACTIVITIES:

Interest received 9,584,705 3,081,314 1,750,429 14,416,448 8,331,547 Net cash provided by (used in) investing activities 9,584,705 3,081,314 1,750,429 14,416,448 8,331,547 Net cash flows 41,451,140 (22,470,202) (3,460,082) 15,520,856 (14,761,765) CASH AND INVESTMENTS - Beginning of year 70,455,610 37,177,585 20,922,669 128,555,864 116,706,047 CASH AND INVESTMENTS - End of year 111,906,750$ 14,707,383$ 17,462,587$ 144,076,720$ 101,944,282$ Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
54 179
City of Ontario
Statement of Cash Flows
Proprietary Funds (Continued)
For the year ended June 30, 2025
Governmental
Activities -
Integrated Internal
Water Sewer Waste Totals Service Funds

RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:

Operating income (loss) 37,970,470$ (2,704,639) $ (1,157,958) $ 34,107,873 $ 8,835,792 $ Adjustments to reconcile operating income (loss) to
net cash provided by (used in) operating activities:

Depreciation 5,779,751 1,663,976 995,189 8,438,916 13,928,477 (Increase) decrease in accounts receivable 600,841 (661,513) (856,554) (917,226) 154,020 (Increase) decrease in prepaid expense 42,164 (2,289) (51,999) (12,124) (2,700,113) (Increase) decrease in deposits - - - - 308,854 (Increase) decrease in inventories (487,200) (121,800) - (609,000) 132,947 Increase (decrease) in accounts payable 5,655,990 17,657,429 884,927 24,198,346 (6,988,153) Increase (decrease) in accrued liabilities (381,047) (52,782) (352,516) (786,345) (295,509) Increase (decrease) in unearned revenues (222,810) (2,741) 120,159 (105,392) - Increase (decrease) in deposits payable 66,880 2,025 6,867 75,772 5,914,603 Increase (decrease) in claims and judgements - - - - 3,461,000 Increase (decrease) in compensated absences 302,823 (11,810) 158,074 449,087 11,329,172 Increase (decrease) in deferred leases related
amounts (224,796) - - (224,796) - Increase (decrease) in net pension liability (996,920) (479,173) (1,189,724) (2,665,817) (1,904,625) Increase (decrease) in deferred pension
related items 1,489,477 672,396 1,713,323 3,875,196 2,341,166 Increase (decrease) in OPEB liability (1,056,313) (475,600) (1,213,214) (2,745,127) (6,817,410) Increase (decrease) in deferred OPEB related items (908,322) (424,577) (1,066,273) (2,399,172) (5,524,740) Net cash provided by (used in) operating activities 47,630,988$ 15,058,902$ (2,009,699)$ 60,680,191$ 22,175,481$ NONCASH TRANSACTIONS:

Gain (loss) on equity interest in joint ventures 304,898$ -$ -$ 304,898$ -$ Capital contributions of capital assets 603,628 24,089 3,476,030 4,103,747 - Business-Type Activities - Enterprise Funds
See accompanying notes to Basic Financial Statements.
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56 181
City of Ontario
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2025
Private Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ASSETS
Cash and investments 75,823,066$ 3,097,457 $
Receivables:

Accounts 5,454,914 -
Taxes 1,136,000 -
Accrued interest 329,393 4,216
Prepaid costs 82,023 -
Advances to City - 1,600,000
Land held for resale - 10,728,379 Restricted assets:

Cash and investments with fiscal agents 110,708,215 1,364,770 Total assets 193,533,611 16,794,822

LIABILITIES

Accounts payable 2,432,517 3,750
Accrued interest - 280,355
Deposits payable 4,341,362 305,887
Due to other governments 58,853,527 -
Long-term liabilities:

Long-term debt - due within one year - 4,420,827 Long-term debt - due in more than one year - 7,216,492 Total liabilities 65,627,406 12,227,311

NET POSITION
Restricted for:

Individuals, organizations, and other governments 127,906,205 - Held in trust for private purposes - 4,567,511 Total Net Position 127,906,205$ 4,567,511$
See accompanying notes to Basic Financial Statements.
57 182
City of Ontario
Statement of Changes in Fiduciary Net Position
Fiduciary Funds
For the year ended June 30, 2025
Private Purpose
Trust Fund
Successor
Custodial Agency of the
Funds Former RDA
ADDITIONS:

Taxes 20,975,349 $ 4,482,199$
Interest and change in fair value of investments 4,323,323 78,070 Fee collections for other governments 6,666,338 - Bond proceeds and premiums 51,697,157 -
Total additions 83,662,167 4,560,269
DEDUCTIONS:

Administrative expenses 20,829,012 43,986
Payments on conduit bonds - principal 4,424,998 - Interest expense 9,757,198 749,738
Contributions to other governments 8,162,219 - Total deductions 43,173,427 793,724
Change in net position 40,488,740 3,766,545
NET POSITION:

Beginning of year 87,417,465 800,966
End of year 127,906,205 $ 4,567,511 $
See accompanying notes to Basic Financial Statements.
58 183

NOTES TO FINANCIAL

STATEMENTS
59 184

NOTES TO FINANCIAL

STATEMENTS
60 185
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Ontario, California (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City’s accounting policies are described below.

A. Financial Reporting Entity
The City is a municipal corporation governed by an elected mayor and a four-member council. The City was incorporated December 10, 1891, under the general laws of the State of California and enjoys all the rights and privileges pertaining to “General Law” citi es. As required by accounting principles generally accepted in the Unites States of America, these financial statements present the City of Ontario, California, and its component units for which the City is considered financially accountable.

The criteria used in determining the scope of the re porting entity is based on the provisions of GASB Statement No. 14 and amended by GASB Statement No . 61, Blended Component Units, although legally separate entities, are in substance part of the gove rnment’s operation, so data from these units are combined herein. The following criteria were used in the determination of blended units: (1) the members of the City Council also act as the governing body of the Industrial Development Authority, the Ontario Redevelopment Financing Authority, the Ontario Publ ic Financing Authority, and the Ontario Housing Authority (collectively, the “Authorities”), and (2) the Authorities are managed by employees of the City.

Blended Component Units
The former Ontario Redevelopment Agency (Agency) was activated November 1, 1977, pursuant to the State of California Health and Safety Code, Section 33000 entitled “Community Development Law.” The primary purpose of the Agency was to encourage priv ate redevelopment of property and to rehabilitate areas suffering from economic disuse arising from poor and inadeq uate planning, inadequate street layout and street access, lack of open space, landscaping and other improvements and facilities necessary to establish and maintain the economic growth of the City. The former Redevelopment Agency was dissolved as of January 31, 2012, through the Supreme Court decision on Assembly Bill 1X 26. See Note 18 for more information on the dissolution.

The Industrial Development Authority was established August 18, 1981, pursuant to the California Industrial Development Financing Act (AB74). The law authorizes limited issuance of small-issue industrial development bonds to assist private industry. The sole function of the Industrial Development Authority is to review and approve the issuance of bonds to finance eligible projects. Separate financial statements are not available for the Industrial Development Authority.

The Ontario Redevelopment Financing Authority was established November 5, 1991, pursuant to Article 1 (commencing with Section 6500) of Chapter 5, Division 7, of Title 1 of the California Government Code in order to jointly exercise powers of the Ontari o Redevelopment Financing Authority and the City, and to establish a vehicle to reduce local borrowing costs and promote greater use of existing and new financial instruments. Separate financial statements are not available for the Ontario Redevelopment Financing Authority.
61 186
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued A. Financial Reporting Entity, Continued
The Ontario Public Financing Authority was created by a joint exercise of joint powers agreement between the City of Ontario and the Ontario Housing Authority (the “Members”) on June 1, 2013. The purpose of the Ontario Public Financing Authority is to assist in the financing of capital improvement projects of the Members and other activities of the Members as perm itted under Articles 1, 2 and 4 of Chapter 5 of Division 7 of Title 1 of the Government Code, as amended. Separate financial statements are not available for the Ontario Public Financing Authority.

The Ontario Housing Authority was established on December 2, 1997. The primary purpose of the Ontario Housing Authority is to assist property owners in rejuvenating and improv ing substandard housing conditions within the City. Separate financial st atements are not available for the Ontario Housing Authority.

Since the City Council serves as the governing bo ard for these component units, all of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are in substance, part of th e City’s operations and so data from these units are reported with the primary government.

B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity with its own self-balancing set of accounts that comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balanc e or net position, revenues, and expenditures or expenses. These funds are established for the purpose of carrying out specific activities or certain objectives in accordance with specific regulations, restrictions, or limitations. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

Government-Wide Financial Statements
The City’s government-wide financial statements include a Statement of Net Position and a Statement of Activities. These statements presen t summaries of Governmental and Business-Type Activities for the City accompanied by a total column.

These financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, a ll of the City’s assets , deferred inflows/outflows of resources, and liabilities, including capital assets, as well as infrastructure assets , and long-term liabilities, are included in the accompanying Statement of Net Position. The Statement of Activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liabilities are incurred.

Certain types of transactions reported as program revenues for the City are reported in three categories:

Charges for services
 Operating grants and contributions
 Capital grants and contributions
62 187
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Certain eliminations have been made in regards to interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and th e business-type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal fund transaction balances have been eliminated; however, those transactions between governmental and business-type acti vities have not been eliminated. Th e following interfund activities have been eliminated:
 Due to/from other funds
 Advances to/from other funds
 Transfers in/out
The City applies all applicable GASB pronou ncements including all NCGA Statements and Interpretations currently in effect.

Governmental Fund Financial Statements
Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures, and Changes in Fund Balances for all major governmental funds and nonmajor funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in fund balance as presented in these statements to the net position in the government-wide financial statements.

The City has presented all major funds that meet specific qualifications.

All governmental funds are accounted for on a spen ding or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance shee ts. The Statement of Revenues, Ex penditures and Changes in Fund Balances present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Under the modi fied accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures in the current period. For this purpose, the City considers revenue to be available if collected within 60 days of the end of the cu rrent fiscal period or grant revenue where the City considers revenue to be available if collected within 180 days of the end of the current fiscal year.

The City reports the following major governmental funds in the accompanying financial statements:

The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund.

The Ontario Housing Authority Fund accounts for the financial transactions of the Ontario Housing Authority. Revenue sources for the Authority includ e rent proceeds from properties, housing loan repayments and agency fees.

The Capital Projects Fund accounts for financial transactions of general capital improvements. 63 188
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued The Impact Fees Fund a c c o u n t s f o r r e v e n u e s f r o m d e v e l o p e r -paid impact fees for infrastructure construction.

Industrial Development Authority Fund accounts for the financial transactions of the Industrial Development Authority including financing of eligible projects and capital development projects.

Proprietary Fund Financial Statements
Proprietary fund financial statements include a Stat ement of Net Position, a Statement of Revenues, Expenses and Change in Net Position, and a Statement of Cash Flows.

Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether cu rrent or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Net Position present increase (revenues) and decreases (expenses) in total net position.

Under the accrual basis of accounting , revenues are recognized in the period in which they are earned while expenses are recognized in the period in whic h a liability is incurred. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenu es. Operating expenses are those expenses that are essential to the operations of the fund. All other expenses are reported as nonoperating expenses.

The City reports the following major proprietary funds in the accompanying financial statements:

The Water Enterprise Fund accounts for the operation and maintenance of the City’s water distribution system.

The Sewer Enterprise Fund accounts for the financial transactions of the City’s waste collection system.

The Integrated Waste Enterprise Fund accounts for collection and disposal of integrated waste from industrial, commercial and residential users throughout the Ontario area.

The City also reports the following proprietary fund type:

Internal Service Funds account for financial transactions re lated to repair, replacement and maintenance of City-owned equipment, the City’s self-insurance programs, the City’s general information systems and telecommunications ha rdware and software, the City’s facilities maintenance, and the City’s defined benefit healthcare plan for its retired employees. These services are provided to other departments or agencies of the City on a cost reimbursement basis. 64 189
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Fiduciary Fund Financial Statements
Fiduciary fund financial statements consist of a Stat ement of Fiduciary Net Position and a Statement of Changes in Fiduciary Net Position. The City has two types of fiduciar y funds, a private-purpose trust fund and custodial funds. Private purpose trust funds accounts for all other trust arrangements in which principal and income benefit indivi duals, private organizations, and other governments (i.e. unclaimed property/escheat property). Custodial funds are used to account for the assets held for distribution by the City as an agent for another entity for which the City has a custodial responsibility and accounts for the flow of assets. Fiduciary funds are accounted for using the accrual basis of accounting.

The City reports the following types of fiduciary funds:

Private-purpose Trust Funds are used to account for the assets and liabilities of the former redevelopment agency and the allocated revenue to pay estimated installment payments of enforceable obligations until the obligations of the former redevelopment agency are paid in full and assets have been liquidated.

Custodial Funds are used to account for fiduciary activities not required to be reported in investment trust, pension trust, or private purpose trust funds.

The financial activities of these funds are excluded from the City -wide financial statements but are presented in separate fiduciary fund financial statements.

C. Cash and Investments
The City maintains a cash and investments pool that is available for use by all funds. Each fund’s portion of this pool is displayed as cash and investments on the balance sheets for the governmental funds and the statements of net position for the proprietary fund and agency funds as cash and investments.

Investments are stated at fair value.

In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB Statement No. 3) , certain disclosure requirements for deposi ts and investment risks were made in the following areas:
 Interest Rate Risk
 Credit Risk
o Overall
o Custodial Credit Risk
o Concentrations of Credit Risk
In addition, other disclosures are specified including use of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end, and other disclosures.

65 190
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued C. Cash and Investments, Continued
In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid money market investments with maturities of one-year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. The City categorizes the fair value measurements of its in vestments based on the hierarchy established by generally accepted accounting principles. The fair value hierarchy, which has three levels, is based on the valuation inputs used to measure an asset’s fair value: Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City did not have any investments measured using Level 3 inputs as of June 30, 2025.

The City participates in an investment pool managed by the State of California entitled Local Agency Investment Fund (LAIF) which has invested a portion of the pooled funds in Structured Notes and Asset- Backed Securities. LAIF’s investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset-Backed Securities are subject to market risk as to the change in interest rates.

The City’s cash and equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. For financial statement presentation purposes, cash and cash equivalents are shown as both unrestricted and restricted cash and investments.

For the purpose of the Statement of Cash Flows, th e City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled ca sh and investments (consisting of cash with fiscal agent and restricted cash and investments held by fiscal agent) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

D. Leases Receivable
The City’s leases receivable are measured at the present value of lease payments expected to be received during the lease terms. Deferred inflows of resources are recorded for the leases. The deferred inflow of resources is recorded at the initiation of the lease in an amount equal to the initial recording of the lease receivable.

E. Inventories, Prepaid Items and Land Held for Resale
All inventories are valued at cost using the first-in/first-out (FIFO) method, except water stock inventory which is valued at fair value at the end of the fiscal year. Inventories in the Internal Service Funds consist of expendable supplies held for consumption, whereas in the Enterprise Funds it represents water stock in the water utility fund and expendable supplies held for consumption in both water utility and sewer utility funds. Inventory costs are recorded as expenditures when used.

Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements using the purchases method.

Land purchased for resale is capitalized as inventory at acquisition costs or net realizable value if lower. 66 191
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued F. Capital Assets
Capital assets, which include proper ty, plant, equipment, infrastructure (e.g., roads, bridges, sidewalks and similar items) and intangible assets, are reported in the applicable governmental or business-type activities columns in the governmentwide financial statements. Capital assets and infrastructure are defined by the City as assets with an initial, individual cost of more than $15,000 and $50,000 respectively (amount not rounded) and an estimated useful life in excess of four years. Capital assets purchased with federal grant money with a cost of more than $10,000 should be capitalized. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation.

Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed.

The Governmental Accounting Standards Board (GAS B) issued Statement No. 34, which requires the inclusion of infrastructure capital assets in local government’s basic financial statements. The City defines infrastructure as long-lived capital assets that normally can be preserved for a significant greater number of years than most capital assets (non-infrastructure assets). Infrastructure assets are normally stationary in nature and are of value only to the government entity. They are basic physical assets that allow the government entity to function. Examples include st reet systems, water purifi cation and distribution systems, sewer collection and treatment systems, pa rks and recreation lands and improvement systems, storm water conveyance systems, fiber optics, bridges, tunnels, dams and build ings combined with the site amenities such as parking and landscaped areas used by the government entity in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into concrete and asphalt paveme nts, concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land.

Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.

In accordance with GASB Statement No. 34, the City has elected the Modified Approach for reporting its pavement system. In 1999, the City commissioned a ph ysical condition assessment of the streets, which was completed and dated July 15, 1999. Each year the City completes review of the streets to provide an updated assessment. These streets, primarily asphalt concrete, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. This condition assessment will be performed every three years. Each street was assigned a physical condition on 17 potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned to each street and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. 67 192
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued F. Capital Assets, Continued
The following conditions were defined: excellent condition was assigned to those segments with a rating between 86 to 100, very good condition was assigned a rating between 71 to 85, good condition was assigned a rating between 56 to 70, fair condition was assigned a rating between 41 to 55, poor condition was assigned with a rating between 26 to 40, very poor condition was assigned with a rating between 11 to 25, and a failed condition was assigned to those segments with a rating between 0 to 10.

The City’s policy, relative to maintaining the street assets, is to maintain the existing weighted average rate of “Good”, which is a PCI index range between 56 and 70. This rating allows minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. A detailed description of the modified approach for the City’s infrastructure capital assets can be found in the Required Supplementary Information section.

For all other capital assets, struct ures and improvements, furniture and equipment, infrastructure and intangible assets, the City has elected to use the Basic Approach as defined by GASB Statement No. 34.

Accordingly, these capital assets are depreciated using the straight-line method over the following estimated useful lives:

G. Property Taxes
Property tax revenue is recognized on the modified accr ual basis, that is, in the fiscal year for which the taxes have been levied providing they become available. Available means then due or past due and receivable within the current period and collected within the current period or expected to be collected soon enough thereafter to be used to pay liabilities of the current period. The County of San Bernardino collects property taxes for the City. Ta x liens attach annually as of 12:01 A.M. on the first day in January proceeding the fiscal year for which the taxes are le vied. Taxes are levied on both real and personal property as it exists on that date. The tax levy cove rs the fiscal period July 1 to June 30. All secured property taxes and one-half of the taxes on real property are due November 1; the second installment is due February 1. All taxes are delinquent if unpaid, on December 10 and April 10, respectively. Unsecured personal property taxes become due on the first March each year and are delinquent, if unpaid, on August

31. Assets Years
Buildings and structures 20 - 99
Vehicles 4 - 15
Other equipment 5 - 25
Intangible assets - software 5
Infrastructure 20 - 50
68 193
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued H. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position or balance sheet report a separate section for deferred outflows of resources. This separate financial st atement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position or balance sh eet report a separate section for deferred inflows of resources. This separate financial statement elemen t, deferred inflows of resources, represents an acquisition of net asse ts that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

I. Net Position and Fund Balances
Net Position
In the government-wide financial statements and propri etary fund financial statements, net position is classified as follows:

Net Investment in Capital Assets – This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt a ttributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments.

Unrestricted Net Position – This amount is all net position that does not meet the definition of “net investment in capital assets” or “restricted net position.” Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net po sition in the government-wide and proprietary fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is th e government’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. 69 194
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued I. Net Position and Fund Balances, Continued
Fund Balance
Fund balance is essentially the difference between th e assets, deferred outflows and deferred inflows of resources and liabilities reported in a governmental fund. There are five separate components of fund balance, each of which identifies the extent to which the City is bound to honor constraints on the specific purposes for which amounts can be spent:

Nonspendable fund balance (inherently nonspendable)

Restricted fund balance (external enforceable limitations on use)

Committed fund balance (self-imposed limitations on use)

Assigned fund balance (limitation resulting from intended use)

Unassigned fund balance (residual net resources)
The City Council, as the City’s highest level of decision-making authority, may commit fund balance for specific purposes pursuant to constraints impose d by the adoption of a resolution. These committed amounts cannot be used for any other purpose unless the City Council removes or changes the specified use through the same type of formal action taken to establish the commitment. City Council action to commit fund balance needs to occur within the fisc al reporting period; however, the amount can be determined subsequently.

Amounts that are constrained by the City's intent to be used for specific purposes, but are neither restricted nor committed, should be reported as assi gned fund balance. Pursuant to the City’s fund balance policy established by the City Council on June 22, 2011 by resolution, (#2011-041), the City Council has delegated the authority to assign amount s to be used for specific purposes to the City Manager or Finance Director for the purpose of reporting these amounts on the annual financial statements.

Included in the Fund Balance Policy is the 20 percent Stabilization Plan. This is the goal of City Council to achieve a minimum of 20 percent of annual General Fund appropriations, as assigned fund balance in the General Fund. Based on the current year General Fund appropriations, the amount assigned to the 20 percent stabilization plan will either increase or decrea se accordingly. This assigned balance is intended to be used for specific and defined emergency services and to minimize the potential for disruption of municipal services to its citizens. As of June 30, 2025, the City’s General Fund has an assigned fund balance for the stability arrangement of $87.5 million, which achieves the goal of 20 percent of the General Fund adopted budget for fiscal year 2024-25.
70 195
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued I. Net Position and Fund Balances, Continued
In order to calculate the amounts to report as re stricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. The City consider restricted fund balance to have been spent first when expenditure is incurred for pu rposes for which both restricted and unrestricted fund balance is available. Similarly, when expenditure is incurred for purposes for which amounts in any of the unrestricted classifications of fund balanc e could be used, the City considers committed amounts to be reduced first, followed by assigned amounts and then unassigned amounts.

J. Compensated Absences
It is the government's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. The City implemented GASB Statement No. 101, Compensated Absences during fiscal year 2024-

25. Liabilities for leave are assumed to be accrued us ing the first in, first out method, meaning the leave that was earned previously is used or paid or settled first. The City has recorded a liability only when it is more likely than not that the leave will be taken or paid for. All compensated absences and related costs are accrued when incurred in the government-wide and proprietary fund financial statements. City employees receive from 10 to 34 days’ vacation or annual leave each year, depending on the length of service. All vacation pay, annual leave pay, sick le ave pay, and related costs are accrued when incurred in the government-wide financial statements and in the proprietary funds financial statements.

K. Long-Term Obligations
In the government-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method.

Bonds payable are reported net of the applicable bond premium or discount. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenses when incurred.

In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures.

L. Pension
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.

For this purpose, benefit payments (including refu nds of employee contributions) are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. 71 196
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

1. SUMMARY OF SIGNIFICANT AC COUNTING POLICIES, Continued M. Other Post Employment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s OPEB Plan and additions to/deduc tions from the OPEB Plan’s fidu ciary net position have been determined on the same basis as they are reported by CalPERS. For this purp ose, benefit payments are recognized when currently due and payable in a ccordance with the benefit terms. Investments are reported at fair value.

N. Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

O. New Pronouncements
In 2025, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements:
 GASB Statement No. 101, Compensated Absences – The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. T hat objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. Beginning ne t position and the June 30, 2024 balances of compensated absences were restated in the implementation of this Statement.  GASB Statement No. 102, Certain Risk Disclosures - The objective of this Statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints. The City implemented this Statement and it resulted in no disclosures for the current year.

72 197
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS
The following is a summary of the cash and investments at June 30, 2025:

The City follows the practice of pooling cash and invest ments of all funds, except for funds required to be h e l d b y f i s c a l a g e n t s u n d e r p r o v i s i o n s o f b o n d i n d e n t u r e s . I n t e r e s t i n c o m e e a r n e d o n p o o l e d c a s h a n d investments is allocated monthly to the various fund s based on monthly cash and investment balances.

Interest income from cash and investments with fiscal agents is credited directly to the related fund.

A. Summary of Cash and Investments
Cash and investments at June 30, 2025 consist of the following:

B. Deposits
The carrying amount of the City’s cash deposit was $83,837,952 as of June 30, 2025. Bank balances before reconciling items were a positive amount of $80,221,088 at June 30, 2025. The City’s cash deposit was fully insured up to $250,000 by the Federal Deposit Insurance Commission. The remaining amount was collateralized with securities held by the pledging financial institutions in the City’s name.

Governmental Business-Type Fiduciary
Activities Activities Funds Total
Cash and investments 481,535,291 $ 96,605,775 $ 78,920,523 $ 657,061,589 $ Restricted cash and investments 190,321,450 47,470,945 112,072,985 349,865,380 Total cash and investments 671,856,741$ 144,076,720 $ 190,993,508 $ 1,006,926,969 $ Government-Wide Statement
of Net Position
Cash on hand 11,810$
Deposits with financial institutions 83,837,952
Total cash on hand and deposits 83,849,762
Investments:

U.S. Treasury securities 241,909,520
Federal government agency 143,311,055
Medium-term corporate notes 91,418,558
Asset-backed securities 24,423,051
Supranational 19,759,850
California Asset Management Program (CAMP) 16,958,617
Local Agency Investment Fund (LAIF) 35,431,176
Total investments 573,211,827
Total City Treasury 657,061,589
Investments with fiscal agent:

Money market funds 349,865,380
Total cash and investments 1,006,926,969$
73 198
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
B. Deposits, Continued
The California Government Code (Code) Section 53652 requires California banks and savings and loan associations to secure the City’s cash deposits by pl edging securities as collateral. The Code states that collateral pledged in this manner sha ll have the effect of perfecting a se curity interest in such collateral superior to those of a general credit or. Thus, collateral for cash deposits is considered to be held in the City’s name.

Fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits.

C. Investments Authorized by the Code and the City’s Investment Policy Under the City’s investment policy, and in accordance with the Code, the following investments are authorized at June 30, 2025:
 United States Treasury Bills, Notes, and Bonds. There is no limitat ion as to the percentage of the fund, which can be invested in this category.
 Obligations—including U.S. Government Agency Mortgage pass-through securities— issued by various agencies of the Federal Government. Ther e is no percentage limitation on the dollar amount which can be invested in Agency issues in total, no more than 20% of the cost value of the portfolio may be invested in the securities of any one issuer.  Bills of exchange or time drafts drawn on and accepted by a commercial bank, commonly known as banker’s acceptances. Banker’s acceptances may not exceed 180 days to maturity. To be eligible for purchase, banker’s acceptances must have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 40% of the cost value of the portfolio may be invested in banker’s acceptances and no more than 5% of the cost value of the portfolio may be invested in banker’s acceptances of any single bank.  Commercial paper rated “A-1” or its equivalent by at least two NRSROs and issued by a domestic corporation having assets in excess of $500 million and having at least an “A” or its equivalent rating on its long-term debentures as provided by a NRSRO. Purchases of eligible commercial paper may not exceed 270 days maturity nor repr esent more than 10% of the outstanding paper on an issuing corporation. Purchases of commerc ial paper may not exceed 15% of the portfolio, which may be invested pursuant to this section. An additional 15% or a total of 30% of the City’s money may be invested pursuant to this subdivision. The additional 15% may be so invested only if the dollar weighted average maturity of the entire amount does not exceed 31 days.  Negotiable certificates of deposit issued by a nationally or State chartered bank or a State or Federal savings institution, or a State licensed br anch of a foreign bank (“Yankee”). Purchases of negotiable certificates of deposit may not exceed 3 0 % o f t h e c o s t v a l u e o f t h e p o r t f o l i o . T o b e eligible for purchase by the City, the certificate of deposit must be rated “A-1” or its equivalent by at least two NRSROs.
74 199
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued  Repurchase Agreements – The City may invest in repurchase agreements with primary dealers of the Federal Reserve Bank of New York with whic h the City has entered into a master repurchase agreement. The Public Securities Associatio n master repurchase agreement is the “master repurchase agreement”. The maturity of repurchas e agreements shall not exceed one year. The market value of securities used as collateral for repurchase agreements shall be valued at no less than 102% of the value of the repurchase agreement. Investments in repurchase agreements may not exceed 20% of the cost value of the fund.
 Local Agency Investment Fund of the State of California  Time Deposits – No more than 25% of the fund may be invested in this category.  Medium-term notes of a maximum of five years ma turity issued by corporations organized and operating within the United States or by deposito ry institutions licensed by the United States or any State and operating within the United States. The issuing corporat ion must have a minimum rating of “A” or its equivalent by at least two NRSROs and have in excess of $500 million in shareholder equity. Purchase of medium-term notes may not exceed 30% of the cost value of the fund with no more than 15% of the cost value of the fund rated below “AA” or its equivalent by at least two NRSROs. No more than 5% of the fund (at time of purchase) may be invested in any one corporate name, including the parent corporation or subsidiaries.  Any collateralized mortgage obligations, mortgage-backed or other pay-through bond, equipment lease-backed certificate, or consumer receivable -backed bond. Securities eligible for investment under this section shall be rated in a rating category of “AA” by a nationally recognized statistical rating organization and have a maximum remaining maturity of 5 years or less. Investment in this type of securities may not exceed 20% of the cost value of the fund.  Bonds, notes, warrants or other evidences of indebtedness of any local agency of this state.  Registered state warrants or treasury notes or bonds of this state.  United States dollar denominated senior unse cured unsubordinated obligations issued or unconditionally guaranteed by the Internationa l Bank for Reconstruction and Development, International Finance Corporation, or Inter- American Development Bank, with a maximum remaining maturity of five years or less, and e ligible for purchase and sale within the United States. Investments under this su bdivision shall be rated "AA" or better by an NRSRO and shall not exceed 10 percent of the City's moneys that may be invested pursuant to this section. 75 200
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued  Mutual Funds and Money Market Mutual Funds that are register ed with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
o Mutual Funds that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
 Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
 Have retained an investment adviser regist ered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligatio ns authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.  No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
o Money Market Mutual Funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
 Have attained the highest ranking or th e highest letter and numerical rating provided by not less than two (2) NRSROs; or
 Have retained an investment adviser regist ered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
 No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
o No more than 20% of the total portfolio may be invested in these securities.

The City’s portfolio value fluctuates in an inverse relationship to any change in interest rate. Accordingly, if interest rates rise, the portfolio value will decline. If interest rates fall, the portfolio value will rise. The portfolio for year-end reporting purposes is treated as if it were all sold. Therefore, fund balance must reflect the portfolio’s change in value. These portfolio value changes are unrealized unless sold.

The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2025 include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments included the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or have embedded forwards or options.
76 201
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
C. Investments Authorized by the Code and the City’s Investment Policy, Continued Asset-Backed Securities, the bulk of which are mortgage backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as collateralized mortgage obligations) or credit card receivables.

At June 30, 2025, the City had $35,431,176 invested in LAIF, which had invested 3.81% of the pool investment funds in Structured Notes and Asset-Backed Securities as compared to 3.00% in the previous year. The LAIF fair value factor of 1.001198310 was used to calculate the fair value of the investments in LAIF.

D. Investments Authorized by Debt Agreements
The above investments do not address investment in debt proceeds held by a bond trustee. Investments of debt proceeds held by a bond trustee are governed by provisions of debt agreements, rather than the general provisions of the Code or the City’s investment policy.

E. Interest Rate Risk
The City’s investment policy limits investment maturi ties as a means of managing its exposure to fair value losses arising from increasing interest rates. The City’s investment policy states that weighted average of the City’s portfolio will be limited to two and a half years. The only exception to these maturity limits shall be the investment of the gross proceeds of tax-exempt bonds. The City has elected to use the segmented time distribution method of disclosure for its interest rate risk.

At June 30, 2025, the City had the following investments and original maturities:

6 months to
Investment Type 1 year 1 to 3 years 3 to 5 years Total
Investments:

U.S. Treasury 89,529,350 $ 92,052,520 $ 60,327,650 $ 241,909,520 $ Federal Government Agency 86,701,480 36,674,875 19,934,700 143,311,055 Medium-Term Corporate Notes 22,739,366 28,615,092 40,064,100 91,418,558 Asset-Backed Securities - - 24,423,051 24,423,051 Supranational 9,766,200 4,988,950 5,004,700 19,759,850 California Asset Management Program 16,958,617 - - 16,958,617 Local Agency Investment Fund 35,431,176 - - 35,431,176 Subtotal 261,126,189 162,331,437 149,754,201 573,211,827 Investments with fiscal agents:

Money Market Funds 349,865,380 - - 349,865,380 Total 610,991,569 $ 162,331,437 $ 149,754,201 $ 923,077,207 $ Remaining Investment Maturities
77 202
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
F. Credit Risk
The City's investment in medium-term notes consis ted of investments with various corporations and were rated “Baa2” to “Aa2” by Moody’s and “BBB+” to “AA-” by Standard & Poor’s. Investment in government agencies issued by the Federal National Mortgage Association, the Federal Home Loan Banks, and the Federal Home Loan Mortgage Corporation were rated “Aaa” by Moody’s and “AA+” by Standard & Poor’s. Asset-Backed Securities were rated “Aaa” by Moody’s and “AAA” by Standard & Poor’s.

All securities were investment grade and were legal under State and City law. Investments in U.S.

Treasury securities are not considered to have credit risk; therefore, thei r credit quality is not disclosed.

As of June 30, 2025, the City's investments in external investment pools and money market mutual funds are unrated.

G. Custodial Credit Risk
The custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside part y. The custodial credit risk for investments is the risk that, in the event of the failure of the counterpar ty to a transaction, a government will not be able to recover the value of investment or co llateral securities that are in the possession of an outside party. At June 30, 2025, none of the City’s deposits or investments were subject to custodial credit risk.

H. Concentration of Credit Risk
The City is in compliance with restrictions imposed by its investment policy, which limits certain types of investments. In accordance with the disclosure requirement of GASB Statement No. 40, if the City has invested more than 5% of its inve stment in any one issuer, it is exposed to credit risk. Investments guaranteed by the U.S. government and investments in mutual funds and exter nal investment pools are excluded from this requirement. During the fiscal year ending June 30, 2025, the City did not hold any investments in any one issuer (other than mutual fu nds and external investment pools) that represents 5% or more of total City investments.

I. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. 78 203
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

2. CASH AND INVESTMENTS, Continued
I. Fair Value Hierarchy, Continued
The following is a summary of the fair value hierarchy of the fair value of the City’s investments as of June 30, 2025:

3. INTERFUND ACTIVITIES
A. Due To/From Other Funds
At June 30, 2025, the City’s due to/from other fund balances comprised of the following:

The current year due to/from other fund balances are to cover negative cash balances in the Ontario Housing Authority Fund and nonmajor governmental Fu nds and are expected to be repaid in the next fiscal year when funds are availabl e. The current year due from other fund balance in the General Fund was to cover the negative cash balance in the Capital Projects Fund and is expected to be repaid with the drawdown from the bond proceeds in the next fiscal year.

Total
Investment Type Level 1 Level 2 Level 3 Fair Value U.S. Treasury Securities - $ 241,909,520$ - $ 241,909,520$ Federal Government Agency - 143,311,055 - 143,311,055 Medium-Term Corporate Notes - 91,418,558 - 91,418,558 Asset-Backed Securities - 24,423,051 - 24,423,051 Supranational - 19,759,850 - 19,759,850 Total investments subject to fair value -$ 520,822,034$ -$ 520,822,034 Investments Measured at Amortized Cost
Investments held by fiscal agents:

Money Market Mutual Funds 349,865,380
Investments not subject to levelling:

California Asset Management Program (CAMP) 16,958,617
Local Agency Investment Funds (LAIF) 35,431,176
Total Investments 923,077,207$
Fair Value Measurement Using
Internal
General Service
Due to Other Funds Fund Funds Total
Capital Projects 88,588,804 $ - $ 88,588,804$ Nonmajor Governmental Funds - 20,467,153 20,467,153 Internal Service Funds - 1,258,706 1,258,706 Total 88,588,804$ 21,725,859 $ 110,314,663 $ Due from Other Funds
79 204
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. INTERFUND ACTIVITIES, Continued
B. Advances To/From Other Funds
At June 30, 2025, the City’s advances to/from other fund balances comprised of the following:

During prior years, the Community Development Fu nd, included in nonmajor governmental funds, loaned $5,961,399 to the Ontario Housing Authority fo r the acquisition, relocation, and rehabilitation of various properties. In fiscal ye ar 2019-2020, the City Council auth orized an internal financing of $102,069,692 to pay down 100% of the City’s June 30, 2018 unfunded liability for the Miscellaneous Plan within the California Public Employees ’ Retirement System (CalPERS). This internal loan bears interest ranging between 3% and 4% for fiscal year 2025 and will increase or decrease each year based on the City’s LAIF investment rate. Principal and interest are payable annually over 25 years beginning fiscal year 2020-2021. In fiscal year 2023-2024, the City’s Pension Benefit Fund loaned $55 million to the Ontario Industrial Development Authority fund to purchase properties surrounding the Ontario Airport in the “quiet home zone”. The loan is to be paid back by the end of the fifth year term including principal and interest with the proceeds from the property sales, ho wever, if any properties are sold before the end of the loan term a prorated share of principal and interest will be paid back at the time of the property sale.

Nonmajor Internal
Governmental Integrated Service
Advances from Other Funds Funds Water Sewer Waste Funds Total Ontario Housing Authority 5,961,399$ -$ -$ -$ -$ 5,961,399$ Industrial Development
Authority - - - - 55,000,000 55,000,000 Nonmajor Governmental
Funds - - - - 4,996,588 4,996,588 Internal Service Funds - 37,160,565 31,055,277 17,391,925 - 85,607,767 Total 5,961,399$ 37,160,565$ 31,055,277 $ 17,391,925 $ 59,996,588 $ 151,565,754 $ Advances to Other Funds
80 205
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

3. INTERFUND ACTIVITIES, Continued
C. Transfers In/Out
For the year ended June 30, 2025, the City’s transfers in/out comprised of the following:

General Fund transfers out to the Capital Projects Fu nd pertains to various Ci ty construction projects, including the Regional Sports Complex and Baseball Stadium, the purchase and construction of the City’s Continuum of Care Campus for homeless housing and outreach services, improvements at De Anza Park, upgrades at the Ontario Museum of History and Art as well as landscaping installations, and prior year construction-in-progress carryforwards.

Transfers from the General Fund to Non-major Governmental funds include monthly budgeted amounts.

The transfers to Internal Service funds include regular OPEB budgeted amounts and almost $3.2 million for Public Safety Equipment. A $1 million transfer to the Water fund for funding of a shortfall regarding a sale of property also occurred.

Transfers from Non-major Governmental funds to Gene ral Fund include Public Services funding. All other transfers from Non-major Governmental fund s to Internal Service funds include monthly OPEB budgeted amounts as well as the transfers from the thre e Enterprise funds. The transfers from Internal Service Funds to the General Fund were part of the City’s year end balancing strategies.

Nonmajor Internal
General Capital Governmental Service
Transfers Out Fund Projects Funds Water Funds Total
General Fund -$ 40,762,532$ 290,603$ 1,000,000$ 7,824,250$ 49,877,385$ Nonmajor Governmental
Funds 3,000,000 - - - 148,427 3,148,427 Water - - - - 394,082 394,082 Sewer - - - - 163,553 163,553 Integrated Waste - - - - 420,936 420,936 Internal Service Funds 459,374 - - - 524,794 984,168 Total 3,459,374$ 40,762,532$ 290,603$ 1,000,000$ 9,476,042$ 54,988,551$ 81 206
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE
The City’s loans receivable were comprised of the following at June 30, 2025:

The City provides loans to City police officers to assist them in acquiring personal residence within the City or reducing an existing loan on an officer’s residence within the City. The loans are non-interest bearing until maturity, and thereafter interest shall be 7% per annum. The outstanding balance at June 30, 2025, was $18,000.

In order to assist those individuals and families who are the most in need, the former Ontario Redevelopment Agency’s Combined Low and Moderate Housing Fund provided down payment assistance and deferred repayment loans to low and moderate income residents for the acquisition and rehabilitation of single-family homes, condominiums or townhouses located within the Ontario HUD Revitalization Target Area. Upon dissolution of the Ontario Redevelopment Agency, th e note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2025, was $1,185,487.

On June 7, 1994, the former Ontario Redevelopment Agency's Combined Low and Moderate Housing Fund loaned $39,000 to a developer to finance the purchase of low and moderate income property located outside of redevelopment project areas. The note is non-interest bearing and was due in full on March 7, 1995. A new note was negotiated on November 8, 1996 and will ma ture on October 31, 2026. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2025, was $39,000.

On March 16, 1993, the former Ontario Redevelopment Agency accepted a note receivable of $112,000 from a developer as consideration for housing located outside of the redevelopment areas. The note is noninterest bearing and is due and payable upon the sale or tr ansfer of property. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was trans ferred to the Ontario Hous ing Authority. The unpaid principal balance at June 30, 2025, was $77,000.

On May 29, 1997, the former Ontario Redevelopment Agency agreed to loan up to $2,656,200 to Ontario Housing Investors, L.P. to finance development of resi dential improvements to the Ground Lease premises as defined in a disposition and development agreement dated March 19, 1996. The note bears interest at the rate of 3% per annum. The note is due and payable either: (a) on the first day of the first full calendar month following the date of the last disbursement of the agency loan proceeds, or (b) on the first day of the 15th full calendar month following the date of recordation of the Agency Loan Deed and Trust in the Official Records of the County. Upon dissolution of the Ontario Redevelopment Agency, the note receivable was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2025, was $5,134,744.

Balance at
June 30, 2025
General Fund 48,000 $
Ontario Housing Authority 30,332,206
Nonmajor Governmental Funds 32,127,612
Total notes and loans receivable 62,507,818$
82 207
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
On September 11, 2003, the former Ontario Redevelopment Agency and Ontario Housing Investors entered into a Residual Receipts promissory note in the amount of $487,408. The loan bears interest of 7% per annum and requires principal and interest payments from residual receipts. On May 1, 2007, the Authority agreed to provide a gap loan in the amount of $168,469. The loan has a 40-year term and a 6% simple interest per annum.

Upon dissolution of the Ontario Rede velopment Agency, the note receivab le was transferred to the Ontario Housing Authority. The receivable balance at June 30, 2025, was $1,219,285.

On February 15, 2005, the City Council approved the Ontario OPEN (Ownership Program Enhancing Neighborhoods) House Program to assist low-income first-time homebuyers. This program was funded with American Dream Down Payment Initiative (ADDI) funds from HUD. As of June 30, 2025, 4 households have been assisted with these funds. The receivable at June 30, 2025, was $28,740.

Pursuant to the disposition and development agreement dated August 12, 2003, between the Ontario Housing Authority and the Ontario Senior Housing, Inc., the Aut hority accepted a promisso ry note for the principal amount of $950,000. This promissory note bears a rate of 0% per annum and is secured by a deed of trust. The receivable balance at June 30, 2025, was $922,636.

The City uses Community Development Block Grant (CDBG) and HOME funds in a custodial capacity to provide housing rehabilitation loans and grants to eligib le applicants. The City makes deferred loans to low and moderate income families based on income and residency guidelines. These loans have been secured by a note and deed of trust. The deferred loan is due and payable when the title of the property changes. The balance at June 30, 2025, was $2,076,281.

Pursuant to the disposition and development agr eement between the Ontario Housing Authority and D Street Senior Housing, Inc., the Authority approved a gap loan in the amount of $1,276,909 to provide new housing development opportunities to address regional needs. The Agency gap loan is a zero percent residual receipts note that will be paid from available cash flow over the term of the affordable covenant period of the project. The receivable balance at June 30, 2025, was $1,170,634.

Pursuant to the disposition and development agreement between the Ontario Housing Authority and Ontario Senior Housing Part ners, LP, the Authority approved a gap loan in the amount of $5,155,500 to provide new housing development opportunities to addr ess regional needs. The Authority’s gap loan will have a 55-year term with an interest rate of 1% simple interest. The loan will be paid back utilizing 85% of the residual cash flow. Any remaining balance at the end of the 55-year term is due and payable. The receivable balance at June 30, 2025, was $5,530,320.

The Ontario Housing Authority was approved a maxi mum of $1,590,300 BEGIN (Building Equity and Growth In Neighborhoods) funds provided by th e California Department of Housing and Community Development. BEGIN funds are used for down payment assistance loans to moderate households in the form of a deferred payment loan with a 30-year term and a 1-3% deferred simple interest per annum, the receivable balance at June 30, 2025, was $181,007.

83 208
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
The Ontario Housing Authority entered into two CalHome Mortgage Assistance Program totaling $108,200 to assist in the purchase of single family residences. The loans have simple interest at the rate of 1% with repayment occurring either 30 years from the date of recordation, upon sale or transfer of the property, or if they fail to occupy the home as a primary residence. The receivable balance at June 30, 2025, was $126,636.

On November 15, 2018, pursuant to the disposit ion and development agreem ent between the Ontario Housing Authority and Ontario Emporia Housing Partne rs, L.P., the Authority approved a gap loan in the amount of $15,700,000 for the development of a 75-un it affordable housing deve lopment. The Authority’s gap loan is a residual receipt note that will be paid back over a 65-year term. The land purchase price of the loan is $3,400,000 with a 20-year term and a 3.31% interest rate. The remaining portion of the loan, $12,300,000, bears a rate of 0% per annum. At June 30, 2025 the outstanding principal balance was $15,895,415.

Pursuant to the disposition and development agreem ent between the Ontario Housing Authority and the National Community Renaissance of California, the Authority approved a gap loan in the amount of $4,420,000 to finance the cash portion of the purchase price and other project costs that will provide affordable multifamily rental housing. The loan is due and payable on the 55th anniversary of the Recordation Date bearing a simple interest rate of 3.00% per annum. At June 30, 2025 the outstanding principal balance was $3,458,966 with accrued interest of $709,894, totaling $4,168,860.

On March 21, 2019, pursuant to the Transformative Climate Communities (TCC) Loan Agreement the City funded a loan to Virginia-Holt Housing, LP in the amount of $14,729,325 to be used for the development, operation, and maintenance of a residential rental Affordable Housing Develo pment currently known as Vista Verde. The City is responsible for submitting all invoices and reporting documents to the California Strategic Growth Council (SGC) and disbursing all grant/loan funds to all applicants/partners. Any unused funds that have not been expended according to the agreement gives the City the right to take action either with developer forfeiture of funds or repayment of previously expended funds. In accordance with the agreement the state will reimburse the City for the making of the TCC Loan Agreement. At June 30, 2025 the outstanding principal balance was $16,173,402.

On November 5, 2024, the City of Ontario entered into a loan agreement with CORE Hotel Venture, LLC to provide up to $20,000,000 in financing for rehabilitatio n and reopening of the Ontario Airport Hotel and Conference Center. The loan is secured by a first deed of trust on the property and bears interest at 5% on the first $15 million and 7% on additional draws, with semi -annual interest payments and a maturity date of December 20, 2027. At June 30, 2025 the outstanding principal balance was $4,996,588.

On December 27, 2024, The City of Ontario entered into a loan agreement with OTC Lot A Owner, LLC to provide up to $6,600,000 to fund the project’s Inland Empire Utilities Agency (IEUA) utility fees and school district impact fees, with all funds disbursed directly to the agencies on the borrower’s behalf. The loan bears interest at the CAMP rate in effect at issuance (4.77%), with interest-only payments beginning upon the earlier of temporary certificate of occupancy or 36 months after the project’s construction loan closing, followed by amortizing payments commencing five years thereafter. Repayment is secured by leasehold deeds of trust, and the loan matures 15 years after interest-payment commencement, with a borrower option to extend an additional 10 years. At June 30, 2025 the outstanding principal balance was $3,509,180.

84 209
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

4. NOTES AND LOANS RECEIVABLE, Continued
Other note receivable amounts at June 30, 2025 included $30,000 for Sewer Connection Fee Reimbursement and $24,603 of other notes receivable.

5. LEASES RECEIVABLE
As of June 30, 2025, the City had 10 active leases. The leases have receipts that range from $20,655 to $145,200 and interest rates that range from 2.867% to 2.980%. As of June 30, 2025, the total combined value of the lease receivable is $3,304,576, the total combined value of the short-term lease receivable is $372,262, and the combined value of the deferred inflows of resources is $2,849,361. The leases had no variable receipts or other receipts not included in the lease receivable within the fiscal year.

The future lease payments on the leases as of June 30, 2025 were as follows:

Year Ending June 30, Principal Interest Total
2026 241,174$ 69,258$ 310,432$ 2027 260,511 61,861 322,372 2028 255,691 54,147 309,838 2029 249,829 46,678 296,507 2030 216,890 39,424 256,314 2031-2035 971,465 108,906 1,080,371 2036-2037 240,715 6,588 247,303 Total 2,436,275$ 386,862$ 2,823,137$ Year Ending June 30, Principal Interest Total
2026 131,088$ 23,560$ 154,648$ 2027 61,527 21,136 82,663 2028 63,962 19,321 83,283 2029 66,580 17,328 83,908 2030 69,229 15,308 84,537 2031-2035 388,917 43,377 432,294 2036-2037 86,998 1,416 88,414 Total 868,301$ 141,446$ 1,009,747$ Gov ernmental Activ ities
Business-Type Activ ities
85 210
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS
In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the government-wide financial statements. The City elected to use the “modified approach” for its infrastructure street pavement system as defined by GASB Statement No. 34. As a result, no accumulated depreciation or depreciation expense has been recorded for this system. A more detailed discussion of the “modified approach” is presented in the Required Supplementary Information section of this report. All other capital assets including other infrastructure systems were reported using the basic approach, whereby accumulated depreciation and depreciation expense has been recorded.

The following is a summary of capital assets for governmental activities:

Depreciation and amortization expense on governme ntal activities capital assets was charged to programs/functions of the primary government as follows:

Balance at Restated balance Contributions from Balance at July 1, 2024 Adjustment at July 1, 2024 Additions Retirements Transfers Enterprise June 30, 2025 Governmental Activities
Capital assets not being depreciated:

Land 306,666,364$ -$ 306,666,364$ 31,897,945$ -$ -$ -$ 338,564,309$ Infrastructure-pavement system 610,901,589 - 610,901,589 - - - - 610,901,589 Construction in progress 158,069,228 (36,628) 158,032,600 359,626,939 - (4,769,548) - 512,889,991 Total capital assets not being
depreciated 1,075,637,181 (36,628) 1,075,600,553 391,524,884 - (4,769,548) - 1,462,355,889 Capital assets being
depreciated/amortized:

Structures and improvements 415,741,672 - 415,741,672 - - 3,348,764 5,239,641 424,330,077 Furniture and equipment 144,786,433 - 144,786,433 15,854,047 (8,437,872) 1,420,784 - 153,623,392 Infrastructure - other systems 195,156,755 - 195,156,755 - - - - 195,156,755 Right-to-use lease asset 1,476,908 - 1,476,908 522,624 - - - 1,999,532 Subscription based I.T. agreements 8,896,232 5,110,634 14,006,866 60,006 (1,440,436) - - 12,626,436 Total capital assets being
depreciated 766,058,000 5,110,634 771,168,634 16,436,677 (9,878,308) 4,769,548 5,239,641 787,736,192 Less accumulated
depreciation/amortization for:

Infrastructure - other systems (77,657,901) - (77,657,901) (7,723,576) - - (1,135,894) (86,517,371) Structures and improvements (192,546,479) 156,739 (192,389,740) (10,069,856) - (960,177) - (203,419,773) Furniture and equipment (99,153,653) (80,012) (99,233,665) (10,460,902) 6,206,418 960,177 - (102,527,972) Right-to-use lease asset (330,967) - (330,967) (290,974) - - - (621,941) Subscription based I.T. agreements (4,116,012) (1,658,736) (5,774,748) (3,963,036) 1,440,436 - - (8,297,348) Total accumulated depreciation/
amortization (373,805,012) (1,582,009) (375,387,021) (32,508,344) 7,646,854 - (1,135,894) (401,384,405) Capital asset being depreciated,
net 392,252,988 3,528,625 395,781,613 (16,071,667) (2,231,454) 4,769,548 4,103,747 386,351,787 Governmental activity capital
assets, net 1,467,890,169$ 3,491,997$ 1,471,382,166$ 375,453,217$ (2,231,454)$ -$ 4,103,747$ 1,848,707,676$ Governmental Activities
General Government 6,902,837 $
Public Works 17,126,218
Community Development 2,279,483
Public Safety 4,857,098
Non-Departmental 1,342,708
Total Governmental Activities 32,508,344$
86 211
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

6. CAPITAL ASSETS, Continued
The following is a summary of capital assets for business-type activities:

Depreciation expense on business-type activities capi tal assets was charged to programs/functions of the primary government as follows:

Balance at Contributions to Balance at
July 1, 2024 Additions Retirements Transfers Governmental June 30, 2025 Business-Type Activities
Capital assets not being depreciated:

Land 16,255,022$ -$ -$ -$ -$ 16,255,022$ Construction in progress 20,974,006 61,355,410 - - - 82,329,416 Total capital assets not being
depreciated 37,229,028 61,355,410 - - - 98,584,438 Capital assets being depreciated:

Structures and improvements 17,429,339 - - - - 17,429,339 Furniture and equipment 11,306,707 3,238,774 (1,009,959) - (5,239,640) 8,295,882 Infrastructure 278,948,452 - - - - 278,948,452 Total capital assets being
depreciated 307,684,498 3,238,774 (1,009,959) - (5,239,640) 304,673,673 Less accumulated depreciation for:

Structures and improvements (5,300,405) (518,176) - - - (5,818,581) Furniture and equipment (4,350,560) (1,368,228) 16,882 - 1,135,893 (4,566,013) Infrastructure (168,707,466) (6,552,512) - - - (175,259,978) Total accumulated depreciation (178,358,431) (8,438,916) 16,882 - 1,135,893 (185,644,572) Capital asset being depreciated,
net 129,326,067 (5,200,142) (993,077) - (4,103,747) 119,029,101 Business-type activity capital
assets, net 166,555,095$ 56,155,268$ (993,077)$ -$ (4,103,747)$ 217,613,539$ Business-Type Activities
Water 5,779,751 $
Sewer 1,663,976
Integrated Waste 995,189
Total Business-Type Activities 8,438,916$
87 212
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

7. COMPENSATED ABSENCES
As described in Note 1, it is the City's policy to permit employees to accumulate earned but unused vacation, annual leave, and sick pay benefits. All vacation pa y is accrued when incurred in the government-wide financial statements and in the proprietary fund financial statements. Fo r the governmental activities, the liability will be paid in future years by the Leave Liability Fund and for business-type activities by the Proprietary Funds. The following is a summary of changes in compensated absences for the year ended June 30, 2025:

Balance
July 1, 2024 Balance Due Within
(as restated) Net Change June 30, 2025 One Year
Governmental Activities:

Compensated absences payable 30,620,382$ 11,329,171 $ 41,949,553 $ 21,177,846 $ Business-Type Activities:

Compensated absences payable 2,867,857 449,086 3,316,943 2,749,705 33,488,239$ 11,778,257 $ 45,266,496 $ 23,927,551 $ 88 213
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT
A. Governmental Activities
The following is a summary of changes in governmental activities long-term debt for the year ended June 30, 2025:

There are a number of limitations and restrictions contained in the various bond indentures. The City is in compliance with all significant limitations and restrictions.

Balance
Balance July 1, 2024 Balance Due Within
July 1, 2024 Adjustments (restated) Additions Deletions June 30, 2025 One Year Public offerings:

Revenue bonds 245,710,000$ -$ 245,710,000$ 192,435,000$ (3,405,000)$ 434,740,000$ 6,950,000$ Pension obligation bonds 217,815,000 - 217,815,000 - (6,660,000) 211,155,000 7,620,000 Direct borrowings:

Loans payable 66,566 - 66,566 - (12,000) 54,566 12,000 Loans payable - Fiber
Broadband 17,399,584 - 17,399,584 - (652,426) 16,747,158 677,625 Installment sale 4,916,904 - 4,916,904 - (4,916,904) - - Loan Payable - Climatec 26,755,517 - 26,755,517 - (1,327,722) 25,427,795 1,361,132 Loan Payable - CEC 2,301,770 - 2,301,770 - (319,071) 1,982,699 322,270 Loan Payable - Family Trust 89,655,862 - 89,655,862 - (8,848,926) 80,806,936 9,180,115 Secured Promissory Notes:
15 Dairy River LLC - - - 28,690,200 (2,909,491) 25,780,709 2,380,759 Ontario WF Farm LLC - - - 18,805,500 (2,048,502) 16,756,998 1,535,411 Advances from the
Successor Agency 1,600,000 - 1,600,000 - - 1,600,000 - Lease liability 1,140,403 - 1,140,403 558,512 (331,251) 1,367,664 366,178 SBITA liability 3,753,568 3,253,311 7,006,879 52,506 (3,417,069) 3,642,316 1,748,287 Total 611,115,174$ 3,253,311$ 614,368,485$ 240,541,718$ (34,848,362)$ 820,061,841 32,153,777$

Unamortized bond premium 21,034,151
841,095,992$
89 214
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2017 Lease Revenue Refunding Bonds
In July 2017, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $26,810,000 to provide funds to refinance the City’s remaining lease payment obligations under the City’s 2001 Lease Revenue Bonds and to fully refund the 2007 Lease Revenue Bonds. The bonds dated July 11, 2017, and issued at a premium of $3,260,875, are payable semiannually on November 1 and May 1 of each year, commencing May 1, 2018, and mature in Novemb er 2042. The bonds are payable from base rental payments to be made by the City for the right to th e use certain real property and improvements of the City pursuant to a Lease Agreement, dated July 1, 2017. The balance at June 30, 2025, including the unamortized bond premium of $2,233,574 amounted to $25,068,574.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

The outstanding bonds contain a provision that if any event of default should occur, the Trustee, as assignee of the Authority under the Lease Agreemen t, may terminate the Lease Agreement and recover certain damages from the City, or may retain the Le ase Agreement and hold the City liable for all base rental payments thereunder on an annual basis.

For the Years
Ending June 30, Principal Interest Total
2026 865,000 $ 979,256 $ 1,844,256 $
2027 905,000 935,006 1,840,006
2028 950,000 888,631 1,838,631
2029 1,000,000 839,881 1,839,881
2030 1,050,000 788,631 1,838,631
2031-2035 5,935,000 3,278,991 9,213,991 2036-2040 7,055,000 2,110,675 9,165,675 2041-2043 5,075,000 388,875 5,463,875 Total 22,835,000 $ 10,209,946 $ 33,044,946 $
2017 Lease Revenue Refunding Bonds
90 215
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2021 Lease Revenue Refunding Bonds
In December 2021, the Ontario Public Financing Authori ty issued lease revenue bonds in the amount of $35,045,000 to provide funds to fully refund the 2013 Lease Revenue Bonds. The bonds dated December 16, 2021, are payable semiannually on April 1 and October 1 of each year, commencing April 1, 2022, and mature in October 2043. The bonds are payable from base rental payments to be made by the City for the right to the use certain real property and improvements of the City pursuant to a Lease Agreement, dated December 1, 2021. The refunding resulted in an overall debt service savings of $7,665,166. The net present value of the debt service savings is called an economic gain and amounted to $4,017,520. The balance at June 30, 2025, amounted to $31,380,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

2022 Lease Revenue Bonds
In June 2022, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $90,830,000 to finance the acquisition and construction of capital projects. The bonds dated June 15, 2022, are payable semiannually on May 1 and November 1 of each year, commencing November 1, 2022, and mature in November 2052. The bonds are payable from ba se rental payments to be made by the City for the right to the use certain real property and improv ements of the City pursuant to a Lease Agreement, dated June 1, 2022. The balance at June 30, 2025, including the unamortized bond premium of $9,584,251 amounted to $97,674,251.

For the Years
Ending June 30, Principal Interest Total
2026 1,230,000 $ 863,764 $ 2,093,764 $
2027 1,290,000 844,426 2,134,426
2028 1,340,000 821,948 2,161,948
2029 1,400,000 795,792 2,195,792
2030 1,430,000 766,470 2,196,470
2031-2035 7,670,000 3,288,190 10,958,190 2036-2040 8,850,000 2,062,851 10,912,851 2041-2044 8,170,000 547,111 8,717,111 Total 31,380,000 $ 9,990,552 $ 41,370,552 $
2021 Lease Revenue Refunding Bonds
91 216
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

2023 Lease Revenue Bonds
In March 2023, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $100,000,000 to finance land acquisition and infras tructure improvements. The bonds are payable semiannually on September 1 and March 1 of each year, commencing September 1, 2023 with a mandatory tender date of March 1, 2026. The current interest rate is 4.39% with a maximum rate of 12.0%. The balance at June 30, 2025 amounted to $100,000,000.

For the Years
Ending June 30, Principal Interest Total
2026 1,480,000 $ 4,367,500 $ 5,847,500 $
2027 1,555,000 4,291,625 5,846,625
2028 1,635,000 4,211,875 5,846,875
2029 1,715,000 4,128,125 5,843,125
2030 1,805,000 4,040,125 5,845,125
2031-2035 10,515,000 18,713,125 29,228,125 2036-2040 13,495,000 15,726,875 29,221,875 2041-2045 17,335,000 11,891,875 29,226,875 2046-2050 22,265,000 6,966,875 29,231,875 2051-2053 16,290,000 1,249,000 17,539,000 Total 88,090,000 $ 75,587,000 $ 163,677,000 $
2022 Lease Revenue Bonds
For the Years
Ending June 30, Principal Interest Total
2026 - $ 4,390,000$ 4,390,000 $ 2027 2,004,569 12,000,000 14,004,569 2028 2,092,570 11,759,452 13,852,022 2029 2,184,434 11,508,343 13,692,777 2030 2,280,330 11,246,211 13,526,541 2031-2035 12,994,087 51,878,156 64,872,243 2036-2040 16,107,950 43,366,459 59,474,409 2041-2045 19,968,009 32,815,045 52,783,054 2046-2050 24,753,080 19,735,124 44,488,204 2051-2053 17,614,971 4,288,119 21,903,090 Total 100,000,000$ 202,986,909$ 302,986,909$
2023 Lease Revenue Bonds
92 217
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
2025 Lease Revenue Bonds
In May 2025, the Ontario Public Financing Authority issued lease revenue bonds in the amount of $192,435,000 to finance the acquisition and construc tion of capital projects. The bonds are payable semiannually on November 1 and May 1 of each year, commencing on November 1, 2025, and mature in November 2055. The bonds are payable from base rental payments to be made by the City for the right to the use certain real property of the City pursuant to a Lease Agreement, dated May 1, 2025. The current interest rate is 5.00%. The balance at June 30, 2025, including the unamortized bond premium of $9,216,327 amounted to $201,651,327.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 3,375,000 $ 8,739,989 $ 12,114,989 $
2027 2,785,000 9,330,213 12,115,213
2028 2,930,000 9,187,337 12,117,337
2029 3,080,000 9,037,087 12,117,087
2030 3,235,000 8,879,212 12,114,212
2031-2035 18,845,000 41,730,563 60,575,563 2036-2040 24,205,000 36,375,313 60,580,313 2041-2045 31,085,000 29,499,063 60,584,063 2046-2050 39,910,000 20,668,437 60,578,437 2051-2055 51,160,000 9,416,744 60,576,744 2056 11,825,000 289,763 12,114,763
Total 192,435,000$ 183,153,721 $ 375,588,721 $
2025 Lease Revenue Bonds
93 218
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Pension Obligation Bonds
In May 2020, the City of Ontario issued taxable pe nsion obligation bonds in the amount of $236,585,000 to pay a portion of the City’s unfunded pension liability to the California Public Employees’ Retirement System (“CalPERS”) for the benefit of the City public safety police and fire employees. The bonds are payable semiannually on June 1 and December 1 of each year, commencing December 1, 2020 and maturing in June 2050 at an interest rate ranging fr om 1.971% to 3.979% per annum. The balance at June 30, 2025 amounted to $211,155,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

Pursuant to the Retirement Law, the City Council is required to make the appropriations to pay the amounts required to be paid by the City, includin g the portion of the unfunded pension liability. The remedies available to the Trustee and the Owners of the Bonds upon an event of default are dependent upon regulatory and judicial actions. Under existing law and judicial decision s, the remedies provided for under such documents may not be readily available or may be limited. In the case of any bankruptcy proceeding involving the City, the rights of the Owners could be modified at the direction of the court.

For the Years
Ending June 30, Principal Interest Total
2026 7,620,000 $ 7,679,326 $ 15,299,326 $
2027 7,835,000 7,460,098 15,295,098
2028 8,070,000 7,226,851 15,296,851
2029 8,320,000 6,974,340 15,294,340
2030 8,580,000 6,709,847 15,289,847
2031-2035 47,500,000 28,968,650 76,468,650 2036-2040 57,075,000 19,412,400 76,487,400 2041-2045 57,960,000 7,654,178 65,614,178 2046-2050 8,195,000 664,891 8,859,891 Total 211,155,000$ 92,750,581 $ 303,905,581 $
2020 Taxable Pension Obli gation Bonds
94 219
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Loan Payable
On May 19, 2015, the Ontario Housing Authority (A uthority) negotiated the purchase of the Vesta property and assumed a promissory note and deed from Housing Opportunities Group Inc. (HOGI).

HOGI entered into a promissory note secured by a subordinated deed of trust with the Inland Fair Housing and Mediation Board (Board) and agreed to assign the Authority such property and promissory note with a balance of $158,566, effective September 11, 2015. Monthly payments in the amount of $1,000, shall commence one year after the effective date. The loan is payable within 20 years from the effective date at zero interest. A monthly payment may be de ferred by Borrower, upon providing notice to the Lender, should Borrower have insufficient net revenue from operation of the Property for the relevant month, as determined by Borrower in its reasonable discretion. In such case, the subsequent month's payment shall remain One Thousand Dollars ($1,000) , and the payment period shall be extended. The outstanding balance at June 30, 2025 amounted to $54,566.

The annual requirements to amortize the outstanding loan as of June 30, 2025, including interest, are as follows:

Loan Payable – Fiber Broadband
In August 2021, the City entered into a lease-leaseb ack agreement with Citizens Business Bank in an amount not to exceed $18,250,000 for the purpose of financing fiber optic broadband network equipment.

The loan bears a maximum interest rate of 3.55%. Interest payments are due annually commencing August 12, 2022. Principal payments are due annually commencing August 12, 2023. At June 30, 2025, the outstanding balance of the was $16,747,158.

For the Years
Ending June 30, Principal Interest Total
2026 12,000 $ - $ 12,000$ 2027 12,000 - 12,000 2028 12,000 - 12,000 2029 12,000 - 12,000 2030 6,566 - 6,566 Total 54,566 $ - $ 54,566$ Loan Payable
95 220
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The annual requirements to amortize the outstanding loan as of June 30, 2025, including interest, are as follows:

Installment Sale
In November 2019, the City entered into an installment sale agreement in the amount of $33,100,000 for the purchase of a parcel of land in the Ontario R anch for the future Great Park. The purchase and sale agreement includes an initial payment amount of $8,100,000 to be paid at close of the escrow and five (5) equal annual payments of $5,000,000 each to the seller with an imputed interest rate of 1.690%. The outstanding balance was repaid in full during the year ended June 30, 2025.

Climatec Loan
The energy related improvements being financed were installed pursuant to an Energy Services Agreement between the City and Climatec, LLC of Phoenix AZ approved by the City Council on July 21, 2020. Such agreement is being implemented in accordance with California Government Code Section 4217. 10 to 4217. 18; in which the City Council adopted findings that the cost to the City to implement the energy related improvements are less than the anticipated marginal cost to the City of thermal, electrical, or other energy that would have been consumed by the City absent of purchasing the energy improvements.

For the Years
Ending June 30, Principal Interest Total
2026 677,625$ 602,781$ 1,280,406$
2027 702,015 578,392 1,280,407
2028 727,283 553,124 1,280,407
2029 752,016 528,390 1,280,406
2030 780,527 499,879 1,280,406
2031-2035 4,343,602 2,058,430 6,402,032 2036-2040 5,183,991 1,218,041 6,402,032 2041-2043 3,580,099 261,120 3,841,219 Total 16,747,158$ 6,300,157$ 23,047,315$
Loan Payable - Fiber Broadband
96 221
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
The efficient energy improvements funded under the Lease Agreement were installed primarily at the Toyota Arena, the Convention Center, the Police Department, the Ovitt Family Library, and the City Hall Annex. The outstanding balance at June 30, 2025 amounted to $25,427,795.

The annual debt service requirements on the loan are as follows:

California Energy Commission Loan
In June 2021, the City entered into a direct bo rrowing loan agreement with the California Energy Commission in the amount of $2,898,220. The purpose of the loan is to provide funding for the installation of LED lights. The loan bears a 1% interest rate and is due in semi-annual payments in December and June through June 2031. The outstanding balance at June 30, 2025 amounted to $1,982,699.

The annual debt service requirements on the loan are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 1,361,132$ 629,220$ 1,990,352$
2027 1,395,394 594,958 1,990,352
2028 1,430,531 559,821 1,990,352
2029 1,466,564 523,788 1,990,352
2030 1,503,517 486,835 1,990,352
2031-2035 8,105,778 1,845,981 9,951,759 2036-2040 9,182,056 769,702 9,951,758 2041 982,823 12,353 995,176
Total 25,427,795$ 5,422,658$ 30,850,453$
Climatec Loan
For the Years
Ending June 30, Principal Interest Total
2026 322,270 $ 19,026 $ 341,296 $
2027 325,500 15,795 341,295
2028 328,731 12,564 341,295
2029 332,059 9,236 341,295
2030 335,388 5,907 341,295
2031 338,751 2,545 341,296
Total 1,982,699 $ 65,073 $ 2,047,772 $ California Ener gy Commission Loan
97 222
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Loan Payable – Family Trust
In February 2023, the City entered into a purchase and loan agreement with the Ronald and Kristine Pietersma Family Trust in the amount of $120,000,000. The purpose of the loan is to provide funding for the purchase of a property located in the City to be used for construction of a sports complex. The loan bears a 3.68% interest rate and is due in monthly payments of $1,000,000 from April 2023 to March 2033.

The outstanding balance at June 30, 2025 amounted to $80,806,936.

The annual debt service requirements on the loan are as follows:

15 Dairy River, LLC
In October 2023, the City entered into a purchase and sale agreement with 15 Dairy River, LLC for the purchase of property to be used for the construction of a sports complex. In July 2024, a secured promissory note was issued upon the close of escr ow in the amount $28,690,200. The note bears a 4.56% interest rate and is due in annual payments of $3,556,360 from January 2025 to January 2034. The outstanding balance at June 30, 2025 amounted to $25,780,709.

The annual debt service requirements on the note are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 9,180,115 $ 2,819,885 $ 12,000,000 $ 2027 9,523,700 2,476,300 12,000,000 2028 9,880,145 2,119,855 12,000,000 2029 10,249,930 1,750,070 12,000,000 2030 10,633,555 1,366,445 12,000,000 2031-2033 31,339,491 1,660,509 33,000,000 Total 80,806,936 $ 12,193,064$ 93,000,000$
Loan Payable - Famil y Trust
For the Years
Ending June 30, Principal Interest Total
2026 2,380,760 $ 1,175,600 $ 3,556,360 $
2027 2,489,322 1,067,038 3,556,360
2028 2,602,835 953,525 3,556,360
2029 2,721,524 834,836 3,556,360
2030 2,845,626 710,734 3,556,360
2031-2034 12,740,642 1,484,798 14,225,440 Total 25,780,709 $ 6,226,531 $ 32,007,240 $
Promissor y Note - 15 Dairy River, LLC
98 223
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Ontario WF Farm, LLC
In October 2023 the City entered into a purchase and sale agreement with Ontario WF Farm, LLC for the purchase of property to be used for the construction of a sports complex. In September 2024, a secured promissory note was issued upon the close of escr ow in the amount $18,805,500. The note bears a 4.75% interest rate and is due in annual payments of $2,331,368 from January 2025 to January 2034. The outstanding balance at June 30, 2025 amounted to $16,756,998.

The annual debt service requirements on the note are as follows:

Advances from Successor Agency
During previous fiscal years, the former Redevelo pment Agency advanced the Capital Projects fund $1,600,000 for the purchase of property adjacent to Ontario Mills. There is no repayment schedule for the advances.

SBITA Liabilities
The City entered into subscription agreements wi th various vendors for software. The terms of the agreements range from 19 months to 72 months. The interest rates used were between 4.31% to 4.44% based on the terms of the agreements.

Principal and interest payments to maturity at June 30, 2025 are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 1,535,411 $ 795,957 $ 2,331,368 $
2027 1,608,343 723,025 2,331,368
2028 1,684,739 646,629 2,331,368
2029 1,764,764 566,604 2,331,368
2030 1,848,590 482,778 2,331,368
2031-2034 8,315,151 1,010,322 9,325,473 Total 16,756,998$ 4,225,315$ 20,982,313$
Promissor y Note - Ontario WF Farm, LLC
For the Years
Ending June 30, Principal Interest Total
2026 1,748,287 $ 98,630 $ 1,846,917 $ 2027 1,046,970 52,349 1,099,319 2028 847,060 22,954 870,014 Total 3,642,317 $ 173,933$ 3,816,250$ Subscription Based I.T. Agreements
99 224
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
A. Governmental Activities, Continued
Lease Liabilities
The City has entered into lease agreements to lease certain vehicles. The terms of the lease agreements range from 49 months to 74 months. The interest rates used were between 2.00-3.45%. The lease agreements qualify as other than short-term leases under GASB Statement No. 87 and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

Principal and interest payments to maturity at June 30, 2025 are as follows:

B. Business-Type Activities
The following is a summary of changes in business-type activities long-term debt for the year ended June 30, 2025:

For the Years
Ending June 30, Principal Interest Total
2026 366,178 $ 31,762 $ 397,940 $ 2027 373,487 22,197 395,684 2028 339,562 12,578 352,140 2029 215,519 4,538 220,057 2030 72,918 777 73,695 Total 1,367,664 $ 71,852$ 1,439,516$ Lease Liabilities
Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Public offerings:

Revenue bonds 62,625,000$ 43,955,000$ (2,580,000)$ 104,000,000$ 3,480,000$ Total 62,625,000$ 43,955,000$ (2,580,000)$ 104,000,000 3,480,000$

Unamortized bond premium 6,239,074
Total 110,239,074$
100
225
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2021 Water Revenue Refunding Bonds
In December 2021, the City issued revenue bonds in the amount of $67,550,000 to refund all of the outstanding Ontario Public Financing Authority 2013 Water Revenue Bonds. The bonds dated December 16, 2021, mature in 2043, and are payable semiannu ally on February 1 and August 1 of each year, commencing August 1, 2022, from net revenues, which consist of gross revenues of the City’s Water System remaining after the payment of maintenance and operation costs of the City’s Water System. The refunding resulted in an overall debt service savings of $14,912,873. The net present value of the debt service savings is called an economic gain and amount ed to $7,816,238. The outstanding balance on the bonds at June 30, 2025 amounted to $60,045,000.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

The outstanding bonds are secured by a pledge of revenues of the Water System and payable solely from net revenues of the Water System. The bonds contain a provision that if any event of default should occur by the City, it will not result in the loss of the Water System or water rights held by or on behalf of the City or the Water System. Furthermore, any remedies available upon the occurrence of an event of default under the Indenture are in many respects dependent upon judicial actions.

For the Years
Ending June 30, Principal Interest Total
2026 2,610,000 $ 1,460,544 $ 4,070,544 $
2027 2,650,000 1,424,629 4,074,629
2028 2,685,000 1,383,411 4,068,411
2029 2,725,000 1,336,081 4,061,081
2030 2,775,000 1,284,443 4,059,443
2031-2035 14,740,000 5,498,789 20,238,789 2036-2040 16,720,000 3,451,590 20,171,590 2041-2044 15,140,000 908,882 16,048,882 Total 60,045,000 $ 16,748,369 $ 76,793,369 $
2021 Water Revenue Refundin g Bonds
101
226
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

8. LONG-TERM DEBT, Continued
B. Business-Type Activities, Continued
2024A Water Revenue Bonds
In August 2024, the Ontario Public Financing Authority issued water revenue bonds in the amount of $43,955,000 to finance various improvements to the City ’s Water System, including but not limited to all or a portion of the costs of facility site security improvements, Water System planning, advanced metering infrastructure antenna towers, onsi te chlorine generates, various wa ter main improvements, drilling at potable well No. 53, maintenance and repairs of various wells and an upgrade of the Chino Basin Desalter Authority booster station. The bonds are secured by a pledge of the Water System and payable solely from net revenues of the Water System. The bonds dated August 21, 2024, mature in August 2049, and are payable semiannually on February 1 and August 1 of each year, commencing February 1, 2025, from net revenues, which consist of gross revenues of the City’s Water System remaining after the payment of maintenance and operation costs of the City’s Water System. The balance at June 30, 2025, including the unamortized bond premium of $6,239,074 amounted to $50,194,074.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, 2025, including interest, are as follows:

For the Years
Ending June 30, Principal Interest Total
2026 870,000 $ 2,176,000 $ 3,046,000 $
2027 970,000 2,130,000 3,100,000
2028 1,015,000 2,080,375 3,095,375
2029 1,070,000 2,028,250 3,098,250
2030 1,120,000 1,973,500 3,093,500
2031-2035 6,505,000 8,946,375 15,451,375 2036-2040 8,295,000 7,105,125 15,400,125 2041-2045 10,595,000 4,754,875 15,349,875 2046-2050 13,515,000 1,755,375 15,270,375 Total 43,955,000 $ 32,949,875 $ 76,904,875 $
2024A Water Revenue Bonds
102
227
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

9. NON-CITY OBLIGATIONS
A. Special Assessment Bonds
The City has entered into a number of Special Asse ssment Bond programs. The City of Ontario is not obligated in any manner for the Special Assessment Bonds as the bonds are secured by unpaid assessments against the property owners. Accordingly, the City is only acting as an agent for the property owners/bondholders in collecting and forwarding the special assessments. Special Assessment Bonds payable at June 30, 2025, totaled $255,660,000. This amount is not reported in the City’s financial statements. The construction phase and debt service ac tivities, i.e. collection from property owners and payment to bondholders are recorded in the Custodial Funds.

B. Other Bond and Loan Programs
The City has entered into a number of bond prog rams to provide low-interest financing for various residential and industrial developments within the City. Although the City has arranged these financing programs, these debts are not payable from any revenues or assets of the City. Neither the faith or credit, nor the taxing power of the City, or any political subdivision of the City is pledged to repay the indebtedness. Generally, the bondholders may look only to assets held by trust ees for security on the indebtedness. Accordingly, since these debts do not constitute an obligation of the City, they are not reflected in the accompanying financial statements. The bond programs are as follows:

Date Outstanding
Interest Date Series Balance
Multi-Family Mortgage Revenue Bonds % Rate Issued Matures at June 30, 2025 City of Ontario Multi-Family Housing Revenue
Bonds, Seasons at Ontario, Series 2017A Variable 2017 2036 2,432,288 $ City of Ontario Multi-Family Housing Revenue
Bonds, Vista Verde Apts, Series 2019A Variable 2019 2038 3,142,429 Total 5,574,717$
103
228
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN
The following is a summary of the City’s pension plan amounts for the year ended June 30, 2025:

A. General Information about the Pension Plans
Plan Descriptions – The City of Ontario contributes to th e California Public Employees Retirement System (PERS), an agent multiple-employer public employee defined benefit pension plan. PERS provides retirement and disability benefits, annual co st-of-living adjustments and death benefits to plan members and beneficiaries. PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by state statute and City ordinance. Copies of PERS ’ annual financial report may be obtained from its executive office: 400 P Street, Sacramento, California 95814.

Benefits Provided – CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, wh o must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following:
the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost- of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law.

The plans’ provisions and benefits in effect at June 30, 2025 are summarized as follows:

Deferred Net Deferred
Outflow of Pension Inflow of Pension
Resources Liabilit y (Asset) Resources Expense (Income) Miscellaneous Plan 24,224,970$ 38,506,090$ 732,779$ 15,703,636$ Safety Police Plan 36,474,978 47,084,646 1,843,047 21,412,894 Safety Fire Plan 29,253,433 37,637,806 - 15,935,674 Totals 89,953,381$ 123,228,542$ 2,575,826$ 53,052,204$ Tier 1* PEPRA (Tier 2)
Hire date Prior to January 1, 2013 January 1, 2013 and after Benefit formula 2.5% @ 55 2.0% @ 62
Benefit vesting schedule 5 years service 5 years service Benefit payments Monthly for life Monthly for life
Retirement age Minimum 50 years Minimum 52 years
Monthly benefits, as a % of eligible
compensation 2.0% to 2.5% 1.0% to 2.5%
Required employee contribution rates 8.00% (a) 7.25%
Required employer contribution rates 10.44% 10.44%
(a) The City contributed 0% to employee contribution rate of 8.00% * Closed to new entrants
Miscellaneous
104
229
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued

Employees Covered – As of the June 30, 2024 measurement date, the following employees were covered by the benefit terms of the plans:

Tier 1* Tier 2 PEPRA (Tier 3)
Hire date Prior to July 1, 2012
On July 1, 2012 and prior to
January 1, 2013 January 1, 2013 and after
Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age Minimum 50 years Minimum 50 years Minimum 50 years Monthly benefits, as a % of eligible
compensation 3.0% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9.00% (b) 9.00% (b) 13.25% Required employer contribution rates 22.90% 22.90% 22.90% (b) The City contributed 0% to employee contribution rate of 9.00% for 2024 Tier 1* Tier 2 PEPRA (Tier 3)
Hire date Prior to July 1, 2012
On July 1, 2012 and prior to
January 1, 2013 January 1, 2013 and after
Benefit formula 3.0% @ 50 3.0% @ 55 2.7% @ 57
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments Monthly for life Monthly for life Monthly for life Retirement age Minimum 50 years Minimum 50 years Minimum 50 years Monthly benefits, as a % of eligible
compensation 3.0% 2.4% to 3.0% 2.0% to 2.7%
Required employee contribution rates 9.00% (c) 9.00% (c) 12.00% Required employer contribution rates 19.55% 19.55% 19.55% (c) The City contributed 0% to employee contribution rate of 9.00% for 2024 * Closed to new entrants
Safety Fire Plan
Safety Police Plan
Miscellaneous Safety Police Safety Fire
Plan Plan Plan
Active members 789 281 184 Transferred members 388 29 23 Terminated members 349 39 21 Retired members and beneficiaries 1,075 307 189 Total 2,601 656 417 Number of Members
105
230
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
A. General Information about the Pension Plans, Continued Contributions - Section 20814(c) of the California Public Employees’ Retirement Law (PERSL) requires that the employer contribution rates for all public employers are determined on an annual basis by the actuary and shall be effective on the July 1 followin g notice of a change in the rate. The total plan contributions are determined through CalPERS’ annu al actuarial valuation pr ocess. The actuarially determined rate is the estimated am ount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. Employer contribution rates may change if plan contracts are amended. Payments made by the City to satisfy contribution requirements that are identified by the pension plan terms as plan member contribution requirements are classified as plan member contributions.

For the year ended June 30, 2025, the contributions that were recognized as a reduction to the net pension liability were $10,707,295, $8,711,566, and $12,716,628, for the Miscellaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively.

B. Net Pension Liability
The City’s net pension liability is measured as the total pension liability, less the pension plan’s fiduciary net position. The net pension liability of each of the Plans is measured as of June 30, 2023 using an annual actuarial valuation as of June 30, 2023 rolled forward to June 30, 2024 using standard updated procedures.

A summary of principal assumptions and methods used to determine the net pension liability is shown below.

Actuarial Assumptions – The June 30, 2023 valuation was rolled forward to determine the June 30, 2024 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry-Age Normal Cost Method in accordance with requirements of GASB 68
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Salary Increases Varies by Entry Age and Service
Mortality Rate Table (1) Derived using CalPERS’ membership data for all funds Post Retirement Benefit Increase The lesser of contract COLA or 2.30% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.3% thereafter
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study and Review of Actuarial Assumptions.

Mortality rates incorporate full generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaties. For more details on this table, please refer to the 2021 experience study report from November 2021 that can be found on the CalPERS website. 106
231
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
B. Net Pension Liability, Continued
All other actuarial assumptions used in the June 30 , 2023 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study repo rt may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications.

Discount Rate – The discount rate used to measure the total pension liability was 6.90 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. The tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 6.90 percent is applied to all plans in the Public Employees’ Retirement Fund (PERF). The cash flows used in the testing were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return , staff took into account both short-term and long- term market return expectations as well as the expected pension fund (PERF) cash flows. Taking into account historical returns of all the Public Employees Retirement Funds’ asset classes (which includes the agent plan and two cost-sharing plans or PERF A, B, and C funds), expected compound (geometric) returns were calculated over the short-term (firs t 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each PE RF fund. The expected rate of return was set by calculating the single equivalent ex pected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate ca lculated above and rounded down to the nearest one quarter of one percent.
107
232
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
B. Net Pension Liability, Continued
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions a pplied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2014.

C. Changes in the Net Pension Liability
The changes in the net pension liability for each plan follows:

Assumed asset
Asset Class Allocation Real Return (a,b)
Global Equit y - Cap-weighted 30.0% 4.54%
Global Equit y - Non-Cap-wei ghted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Miscellaneous Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 Measurement Date 496,204,340 $ 449,253,760 $ 46,950,580 $ Changes in the year:

Service cost 11,060,470 - 11,060,470 Interest on the total pension liability 33,933,671 - 33,933,671 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between actual and
expected experience 2,633,543 - 2,633,543 Net Plan to Plan Resource Movement - - - Contribution - employer - 8,231,197 (8,231,197) Contribution - employees - 5,904,858 (5,904,858) Net investment income - 42,301,678 (42,301,678) Benefit payments, including refunds of
employee contributions (25,151,536) (25,151,536) - Administrative expenses - (365,559) 365,559 Net changes 22,476,148 30,920,638 (8,444,490) Balance at June 30, 2024 Measurement Date 518,680,488 $ 480,174,398 $ 38,506,090 $ Increase (Decrease)
108
233
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
C. Changes in the Net Pension Liability, Continued

Safety Police Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 Measurement Date 540,805,353 $ 480,026,078 $ 60,779,275 $ Changes in the year:

Service cost 12,629,197 - 12,629,197 Interest on the total pension liability 36,698,959 - 36,698,959 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between actual and
expected experience (2,243,709) - (2,243,709) Net Plan to Plan Resource Movement - - - Contribution - employer - 10,529,898 (10,529,898) Contribution - employees - 5,292,142 (5,292,142) Net investment income - 45,347,635 (45,347,635) Benefit payments, including refunds of
employee contributions (26,014,508) (26,014,508) - Administrative expenses - (390,599) 390,599 Net changes 21,069,939 34,764,568 (13,694,629) Balance at June 30, 2024 Measurement Date 561,875,292 $ 514,790,646 $ 47,084,646 $ Safety Fire Plan:

Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability/(Asset)
Balance at June 30, 2023 Measurement Date 387,032,746 $ 342,318,398 $ 44,714,348 $ Changes in the year:

Service cost 8,415,866 - 8,415,866 Interest on the total pension liability 26,376,448 - 26,376,448 Changes of Benefit Terms - - - Changes of Assumptions - - - Differences between actual and
expected experience 984,820 - 984,820 Contribution - employer - 7,289,083 (7,289,083) Contribution - employees - 3,685,374 (3,685,374) Net investment income - 32,157,765 (32,157,765) Benefit payments, including refunds of

employee contributions (19,916,264) (19,916,264) - Administrative expenses - (278,546) 278,546 Net changes 15,860,870 22,937,412 (7,076,542) Balance at June 30, 2024 Measurement Date 402,893,616$ 365,255,810$ 37,637,806$ Total Plans 1,483,449,396$ 1,360,220,854$ 123,228,542$ Increase (Decrease)
Increase (Decrease)
109
234
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
C. Changes in the Net Pension Liability, Continued
Sensitivity of the Net Pension Liability to Changes in the Discount Rate – The following presents the net pension liability of the City for each plan, calculated using the discount rate for each plan, as well as what the City’s net pension liability would be if it were ca lculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:

Pension Plan Fiduciary Net Position – The plan fiduciary net positi on disclosed in the GASB 68 accounting valuation report may differ from the plan assets reported in the funding actuarial valuation report due to several reasons. Firs t, for the accounting valuations, CalPERS must keep items such as deficiency reserves, fiduciary se lf-insurance and OPEB expense included as assets. These amounts are excluded for rate setting purposes in the funding actu arial valuation. In addition, differences may result from early Annual Comprehensive Financial Report closing and fina l reconciled reserves. Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. See CalPERS website for additional information.

D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions As of the start of the measurement period (July 1, 2023), the combined net pension liability for the Miscellaneous Plan, the Safety Police Plan and the Safety Fire Plan was $123,228,542. For the measurement period ending June 30, 2024, (the measurement date), the City recognized pension (income) expense of $15,703,636, $21,412,894, and $15,935,674 for the Miscellaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively. Note that no adjustments have been made for contributions subsequent to the measurement date.

Discount Rate -1% Current Discount Rate Discount Rate +1% Net Pension Liabilit y (Asset) (5.90%) (6.90%) (7.90%)
Miscellaneous Plan 109,017,707$ 38,506,090$ (19,464,348)$ Safety Police Plan 126,891,371 47,084,646 (17,921,723) Safety Fire Plan 91,866,234 37,637,806 (6,917,259) Total 327,775,312 $ 123,228,542$ (44,303,330)$ 110
235
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions, Continued As of June 30, 2025, the City has deferred outflows and deferred inflows of resources related to pensions as follows:

Amounts reported as deferred outflows of resources for the Miscellaneous Plan, the Safety Police Plan, and the Safety Fire Plan, respectively, represent contributions made after the measurement date of the net pension liability but before the end of the City's reporting period and will be recognized as a reduction of the net pension liability in the subsequent fiscal period rather than in the current fiscal period.

Deferred Outflows Deferred Inflows
of Resources of Resources
Miscellaneous Plan:

Contributions made after the measurement date 10,707,295$ -$ Changes of Assumptions 1,979,915 - Differences between Expected and Actual Experience 3,705,762 732,779 Net Differences between Projected and Actual
Earnings on Pension Plan Investments 7,831,998 - Miscellaneous Plan Total 24,224,970$ 732,779$ Safety Police Plan:

Contributions made after the measurement date 12,716,628$ -$ Changes of Assumptions 9,077,735 - Differences between Expected and Actual Experience 6,450,498 1,843,047 Net Differences between Projected and Actual
Earnings on Pension Plan Investments 8,230,117 - Safety Police Plan Total 36,474,978$ 1,843,047$ Safety Fire Plan:

Contributions made after the measurement date 8,711,566$ -$ Changes of Assumptions 6,040,850 - Differences between Expected and Actual Experience 8,460,669 - Net Differences between Projected and Actual
Earnings on Pension Plan Investments 6,040,348 - Safety Fire Plan Total 29,253,433$ -$ Total 89,953,381$ 2,575,826$
111
236
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

10. DEFINED BENEFIT PENSION PLAN, Continued
D. Pension Expense and Deferred Outflows/Inflows of Resources Related to Pensions, Continued Other amounts reported as deferred outflows or deferred inflows of resources related to pensions will be recognized as pension expense as follows:

11. OTHER POST-EMPLOYMENT BENEFITS
The following is a summary of the City’s OPEB plan amounts for the year ended June 30, 2025:

A. General Information about the City’s OPEB Plan
Plan Description – The City has established the City of Ontario Retiree Healthcare Plan, an agent multiple employer defined benefit healthcare plan. The plan, which is administered by the CalPERS, provides health insurance for its retired employees according to the Personnel Rules and Regulations for each of the ten employee groups. The City pays monthly health insurance benefits subjects to caps which vary by bargaining group. The authority to do so is incl uded annually in the Memorandum of Understanding between the City and each of its employee groups and ultimately passed by Council action.

Employees Covered – At June 30, 2024, the measurement date, the following numbers of participants were covered by the benefit terms:

Year Ended
June 30, Miscellaneous Safety - Police Safety - Fire
2025 2,751,797 $ 5,516,466 $ 4,565,602 $ 2026 13,578,956 17,700,120 13,634,661 2027 (1,203,600) 1,121,112 2,377,488 2028 (2,342,257) (2,181,996) (640,153) 2029 - (240,399) 501,377 Thereafter - - 102,892 Total 12,784,896$ 21,915,303 $ 20,541,867 $ Annual Amortization
Deferred Net Deferred
Outflow of OPEB Inflow of OPEB
Resources Liability Resources Expense (Income)
Retiree Healthcare Plan 15,914,241$ 15,681,657$ 41,607,343$ (15,502,070)$ Totals 15,914,241$ 15,681,657$ 41,607,343$ (15,502,070)$ Number of Covered
Participants
Inactives currently receiving benefits 713
Inactives entitled to but not yet receiving benefits 240 Active employees 1,286
Total 2,239
112
237
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
A. General Information about the City’s OPEB Plan, Continued Contributions – The City participates in the Californi a Employers’ Retiree Benefit Trust (CERBT) administered by CalPERS for purposes of fundin g the required retiree medical payments and is evaluating various options for funding its post-emplo yment benefits liability. For fiscal year 2024-2025, the City paid $7,529,227 in benefits. The City will contribute $5,000,000 per year adjusted for inflation.

B. Net OPEB Liability
The City's net OPEB liability was measured as of Ju ne 30, 2024 for the measurement period July 1, 2023 through June 30, 2024. The net OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023, based on the following actuarial assumptions:

Actuarial Assumptions – The June 30, 2023 valuation was rolled forward to determine the June 30, 2025 total pension liability, based on the following actuarial methods and assumptions:

Actuarial Assumptions:

Discount Rate 6.25% at June 30, 2024 (Long-Term expected asset return) Inflation 2.50% per annum
Salary Increases Aggregate - 2.75% annually
Merit - Tables from CalPERS 2000-2019 Experience Study
Investment Rate of Return 6.25%
Mortality Rate CalPERS 2000-2019 Experience Study
Retirement, Disabilit
y, Terminatio nCalPERS 2000-2019 Experience Study
Medical Trend Non-Medicare - 7.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076 Contribution Policy City contributed $140 million in 2019/20, and will contribute $5 million per year (adjusted for inflation) thereafter.

Mortality Improvement Post-retirement mortality projected fully generational with Scale MP-2021 Cap Increases Miscellaneous Flat Dollar Caps: 0%
Safety Tier 1 Premium Caps: Medical Trend
Changes in Assumptions - None since June 30, 2023 Measurement Date. 113
238
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
B. Net OPEB Liability, Continued
Discount Rate – The discount rate used to measure the net OPEB liability was 6.25%. The discount rate is based on the long-term expected asset return described below:

C. Changes in the Net OPEB Liability
The changes in the net OPEB liability (asset) for the plan are as follows:

The net OPEB liability for the City’s plan has been liquidated by funding from governmental funds and proprietary funds.

Target Allocation Expected Real
Asset Class CERBT Strategy 1 Rate of Return
Global Equit y 49% 4.56%
Fixed Income 23% 1.56%
TIPS 5%
Commodities 3% 1.22%
REITs 20% 4.06%
Assumed Long-Term Rate of Inflation 2.50%
Expected Long-Term Net Rate of Return 6.25%
(0.08%)
Total OPEB Fiduciary Net OPEB
Liability Net Position Liability (Asset)
Balance at June 30, 2024 189,927,802$ 164,683,608$ 25,244,194$ (June 30, 2023 measurement date)
Changes in the year:

Service cost 4,392,255 - 4,392,255 Interest 11,889,228 - 11,889,228 Differences between actual and
expected experience - - - Assumption changes - - - Contribution - employer - 7,695,646 (7,695,646) Net investment income - 18,237,279 (18,237,279) Benefit payments (8,184,816) (8,184,816) - Administrative expenses - (88,905) 88,905 Other Miscellaneous Income/(Expense) - - - Net changes 8,096,667 17,659,204 (9,562,537) Balance at June 30, 2025 198,024,469$ 182,342,812$ 15,681,657$ (June 30, 2024 measurement date)
114
239
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated using a discount rate that is one percentage point higher or one percentage point lower than the current discount rate, for the measurement period June 30, 2024:

E. Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability (asset) of the City, as well as what the City's net OPEB liability (asset) would be if it were calculated usin g healthcare cost trend rates that are one percentage point higher or one percentage point lower than the current healthcare cost trend rates:

F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the fiscal year ended June 30, 2025, the City recognized OPEB income of $15,502,070. At June 30, 2025, the City's deferred outflows of resources and defe rred inflows of resources related to OPEB from the following sources:

The $1,984,379 reported as deferred outflows of resources represents contributions made after the measurement date of the OPEB liability but before the end of the City's reporting period and will be recognized as a reduction of the OPEB liability in the subsequent fiscal period rather than in the current fiscal period.
1% Decrease (5.25%) Current Rate (6.25%) 1% Increase (7.25%) Net OPEB Liability (Asset) 43,722,570$ 15,681,657 $ (7,195,369) $ Discount Rate
1% Decrease Current Rate 1% Increase
Net OPEB Liability (Asset) (6,682,191)$ 15,681,657 $ 47,814,530 $ Healthcare Trend Rate
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between Expected and Actual Experience 5,994,980$ 16,403,081 $ Changes of Assumptions 6,065,646 25,204,262 Net difference between projected and actual earnings
on plan investments 1,869,236 -
Contributions made after the measurement date 1,984,379 - Total 15,914,241 $ 41,607,343 $
115
240
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

11. OTHER POST-EMPLOYMENT BENEFITS, Continued
F. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB, Continued Other amounts reported as deferred outflows of reso urces and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows:

12. SELF-INSURANCE PROGRAM
On December 22, 1974, the City initiated a program of self-insurance for workers’ compensation liability claims. The City will pay all claims up to $750,000 per claim; amounts in excess of $750,000 are covered through an outside insurance carrier.

On January 1, 1975, the City initiated a program of se lf-insurance for unemployment liability claims. By this action, the City will pay all claims based on the indivi dual reimbursement account method, as provided by the State of California.

On April 6, 1979, the City initiated a program of self-i nsurance for general liability claims. At present, the City will pay all claims up to $1,000,000 per claim arising from general liability claim actions brought against the City. Amounts in excess of $1,000,000 per claim are covered by the Authority for California Cities Excess Liability (ACCEL).

ACCEL is organized under a joint powers agreement pursuant to the California Government Code. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self-insured losses and to purchase excess insurance coverage. ACC EL pools catastrophic general liability, automobile liability and public officials erro rs and omissions losses. ACCEL me mbers share risk from $1,000,000 to $4,000,000, and insurance in layers exceeding $5,000,000.

The City has not experienced a significant reduction in insurance coverage from coverage in the prior year.

Additionally, the amount of settlements has not exceeded budgeted coverage for each of the past three fiscal years.

Year Ended Deferred Outflows/(Inflows)
June 30, of Resources
2026 (17,605,343)$
2027 (10,173,785)
2028 (2,045,667)
2029 (1,692,854)
2030 1,385,165
Thereafter 2,455,003
Total (27,677,481)$
116
241
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

12. SELF-INSURANCE PROGRAM, Continued
The City has entered into contracts with third-party administrators who supervise the general liability and worker’s compensation programs. When it is probable that a claims lia bility has been incurred and the amount of the loss can be reasonably estimated through historical trends and calculation of incurred but not reported claims (IBNR), the City accrues the estimated liability in an internal service fund for expected claims and judgments. The following is a summary of the changes in the claims liability over the past two fiscal years:

Of the total estimated claims liabilities, $11,664,000 is estimated due within one year or less. The liability will be paid in future years from the Self Insurance Fund.

Beginning Changes in Claim Ending
Fiscal Year Balance Estimates Payments Balance
2023-2024 36,793,000$ 24,349,902$ 18,444,902$ 42,698,000$ 2024-2025 42,698,000 22,823,446 19,362,446 46,159,000 117
242
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

13. FUND BALANCE CLASSIFICATIONS
Fund balances of governmental funds at June 30, 2025 have been classified as follows:

14. JOINT VENTURES
A. Water Facilities Authority
On February 19, 1980, the Water Facilities Authority (Authority) was created under a joint exercise of powers agreement between the City of Chino, the City of Ontario, the City of Upland, the City of Chino Hills and the Monte Vista Water District. It was form ed for the purpose of acquisition and construction of facilities directly benefiting the participants by supplying potable water to the inhabitants within the boundaries of its members. Thus, each participant has an ongoing financial interest in the Authority.

Ontario Industrial Other Total
Housing Capital Impact Development Governmental Governmental General Authority Projects Fees Authority Funds Funds
Fund balances:

Nonspendable
Receivables 48,000$ -$ -$ -$ -$ -$ 48,000$ Prepaid costs 506,569 - - - - 108,554 615,123 Advances to Successor
Agency 3,500,000 - - - - - 3,500,000 Inventory 255,731 - - - - - 255,731 Total nonspendable 4,310,300 - - - - 108,554 4,418,854 Restricted
Endowment/trust 395,780 - - - - - 395,780 Community
development projects - - - - - 34,480,856 34,480,856 Public safety - - - - - 6,079,944 6,079,944 Park development - - - - - 58,509,193 58,509,193 Affordable housing - 37,829,584 - - - 18,374,487 56,204,071 AQMD activities - - - - - 372,357 372,357 Public services - - - - - 99,949,918 99,949,918 T
ransportation
improvement - - - - - 7,997,794 7,997,794 Impact fee activities - - - 340,870 - - 340,870 Total restricted 395,780 37,829,584 - 340,870 - 225,764,549 264,330,783 Committed
City infrastructure - - 48,254,256 228,067,098 - 276,321,354 Total committed - - 48,254,256 228,067,098 - - 276,321,354 Assigned
Continuing
appropriations 111,638 - - 2,264,016 - - 2,375,654 Stability arrangement 87, 499,338 - - - - - 87,499,338 Economic uncertainty 20,000,000 - - - - - 20,000,000 Total assigned 107,610,976 - - 2,264,016 - - 109,874,992 Unassigned - - - - (2,362,463) (2,661,656) (5,024,119) Total fund balances 112,317,056$ 37,829,584$ 48,254,256$ 230,671,984$ (2,362,463)$ 223,211,447$ 649,921,864$ 118
243
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
A. Water Facilities Authority, Continued
The governing Board of Directors consists of one member appointed from each participating agency and has approval of all budget and finance activities. The City's investment in the Authority has been recorded under the equity method of accounting and is show n as an investment in jo int venture in the Water Enterprise Fund.

On September 30, 1997, the Authority issued $24,455,000 in 1997 Refunding Certificates of Participation (COPs) to refund $25,820,000 of then outstanding 1986 COPs. The 1997 Refunding COPs carry interest rates from 4.0% to 5.3% and will be repaid in various principal increments with the final payment due on October 1, 2015. Each participant in the joint ventur e has pledged gross revenues from its respective Enterprise Fund and has agreed to restrictive co venants that establish rates and charges for each respective water enterprise fund at levels sufficient to maintain net re venues equal to at least 1.25 times the aggregate amount of each respective party's in stallment payments to the Authority as well as any parity debt that shall become due and payable within the succeeding twelve months. Each City has an ongoing financial responsibility as each has assumed a portion of the Authority's debt. The City of Ontario’s percentage share of the installment payment is 41.51681% and the outstanding balance was paid in full during the fiscal year ending June 30, 2016.

At June 30, 2025, the City's investment in the Authority, including its share of Authority’s debt, was $11,093,287.

Audited financial information of the Authority for the year ended June 30, 2025 is summarized as follows:

Water Facilities Authority Net Position
Total assets 37,239,291 $
Total deferred outflows 907,967
Total liabilities 5,236,662
Total deferred inflows 821,250
Total net position 32,089,346 $
Water Facilities Authority Changes in Net Position
Operating revenues 24,384,473$
Operating expenses 24,134,975
Operating gain (loss) before depreciation and amortization 249,498 Depreciation and amortization (1,516,279)
Operating revenue (loss) (1,266,781)
Nonoperating revenues (expenses) 1,487,221
Capital contributions -
Changes in net position 220,440
Beginning net position 31,868,906
Ending net position 32,089,346$
119
244
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
A. Water Facilities Authority, Continued
The current participants and their financial contributions through June 30, 2025 were as follows:

Financial statements of the Authority can be obtained from the Water Facilities Authority’s office located at 1775 North Benson Avenue, Upland, California, 91784.

B. Chino Basin Desalter Authority
On January 15, 2002, the Chino Basin Desalter Authority (the Authority) was created under a joint exercise of powers agreement between the City of Ontario and other neighboring government agencies. This agreement was formed to successfully manage the groundwater resources in the Chino Basin.

The governing Board of Director consists of one representative appointed from each participating agency and has the power and responsibility to adopt budgets, operating plans and finance activities to further the purpose of the Authority. As of June 30, 2025, the City’s investment in the Authority was $61,188,520.

On June 22, 2016, the Chino Basin Desalter Authori ty issued the Desalter Revenue Refunding Bonds, Series 2016A in the amount of $67,105,000 to refund the Desalter Revenue Refunding Bonds, Series 2008A.

The new revenue refunding bond has various debt pa yment schedules tailored to each member agency, based on their respective election. This provision affords each member the ability to prepay their share of debt service.

Amount Percent
City of Chino 6,695,673$ 15.71%
City of Chino Hills 5,525,334 12.96%
Monte Vista Water District 6,993,958 16.41%
City of Ontario 14,735,409 34.57%
City of Upland 8,552,736 20.07%
Non-Participant 117,703 0.28%
Total 42,620,813$ 100.00%
120
245
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
B. Chino Basin Desalter Authority, Continued
The financial information of the Authority for the fi scal year ended June 30, 2025, is summarized as follows:

The current participants and their financial contributions through June 30, 2025 were as follows:

Financial statements of the Authority can be obta ined from the Chino Basin Desalter Authority Treasurer’s office located at 6075 Kimball Avenue, Chino, California 91710.

Chino Basin Desalter Authority Net Position
Total assets 296,649,881 $
Total deferred outflows 2,541,946
Total liabilities 58,920,709
Total net position 240,271,118 $
Chino Basin Desalter Authority Changes in Net Position
Operating revenues 38,015,592$
Operating expenses (33,285,294)
Operating gain (loss) before depreciation and amortization 4,730,298 Depreciation and amortization (9,144,000)
Operating revenue (loss) (4,413,702)
Nonoperating revenues (expenses) 7,043,195
Capital contributions 2,285,366
Changes in net position 4,914,859
Beginnin g net position 235,356,259
Ending net position 240,271,118$
Amount Percent
Jurupa Community Services District 14,357,707$ 34.34%
City of Chino Hills 5,459,374 13.06%
City of Chino 6,499,248 15.54%
City of Norco 1,299,751 3.11%
City of Ontario 8,934,189 21.37%
Santa Ana River Co. 1,559,626 3.73%
Western Municipal Water District 3,700,313 8.85%
Total 41,810,208$ 100.00%
121
246
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
C. West End Communications Authority
The “Authority” governed by a seven-member board is a joint exercise of powers between the following entities as created by a joint power:

City of Chino City of Upland
City of Montclair Rancho Cuca monga Fire Protection District City of Rancho Cucamonga Chino Valley Independent Fire Protection District City of Ontario
The purpose of the Authority is to provide a cooper ative voluntary association to establish operate and maintain a consolidated 800MHZ communication syst em designed to serve public safety agencies throughout the western end of San Bernardino Coun ty, California. The City has an ongoing financial interest in the residual assets of the Authority upon disbandment.

The following is a summary of the West End Commu nications Authority financial information for the fiscal year ended June 30, 2025:

Separate financial statements of the West End Communications Authority are available upon request from the City of Ontario, Fiscal Services Department, 303 East "B" Street, Ontario, California 91764.

D. West End Fire and Emergency Response Commission
On January 23, 1989, the West End Fire and Emer gency Response Commission was created under the Joint Exercise Powers Agreement between the Fire Departments of the City of Ontario, Upland, Montclair, Rancho Cucamonga and Chino. The governing board of directors consists of the Fire Chief from each city.

The purpose of the Authority is to establish a hazar dous materials response team. It has been amended to include an Urban Search and Rescue Team and th e servicing of joint authority breathing apparatus equipment for emergency purposes.

West End Communications Authority Net Position
Total assets 1,516,986$
Total liabilities -
Total net position 1,516,986$
West End Communications Authority Changes in Net Position Operating revenues 76,466$
Operating expenses 10,119
Operating gain (loss) before depreciation and amortization 66,347 Operating revenue (loss) 66,347
Changes in net position 66,347
Beginnin g net position 1,450,639
Ending net position 1,516,986$
122
247
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
D. West End Fire and Emergency Response Commission, Continued The following is a summary of the West End Fi re and Emergency Response Commission financial information for the fiscal year ended June 30, 2025:

Separate financial statements of the West End Fire and Emergency Response Commission are available upon request from the City of Ontario, Fiscal Services Department, 303 East "B" Street, Ontario, California 91764.

E. Animal Resource Center of the Inland Empire (ARC)
On July 16, 2024, the West End Animal Services Agency was created under the Joint Exercise Powers Agreement between the City of Ontario and City of Chino (“Member Agencies”). The governing board consisted of a director representing each Member Agency. The purpose of the Agency is to jointly exercise animal control, animal shelter, and related services , and to facilitate cooperation among the member agencies with respect to issues related to the operation and management of an animal shelter and administrative oversight thereof. Pursuant to a first amendment to the Joint Exercise of Powers Agreement on January 16, 2025, the Board of Direct ors voted to change the Agency’s name to Animal Resource Center of the Inland Empire and to admin the City of Montclair and County of San Bernardino as Member Agencies.

West End Fire and Emergency Response Commission Net Position Total assets 950,872$
Total liabilities (8,700)
Total net position 942,172$
West End Fire and Emergency Response Commission Changes in Net Position Operating revenues 146,938$
Operating expenses 77,685
Operating revenue (loss) 69,253
Changes in net position 69,253
Beginnin g net position 872,919
Ending net position 942,172$
123
248
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

14. JOINT VENTURES, Continued
E. Animal Resource Center of the Inland Empire (ARC), Continued Below are the most currently available condensed unaudited financial statements of the Animal Resource Center for the fiscal year ended June 30, 2025:

Separate financial statements of th e Animal Resource Center of the Inland Empire are available upon request from the City of Ontario, Fiscal Services Department, 303 East "B" Street, Ontario, California 91764.

Animal Resource Center Net Position
Total assets 10,578,945 $
Total liabilities 11,456,578
Total net position (877,633) $
Animal Resource Center Changes in Net Position
Operating revenues 5,562,353$
Operating expenses 6,439,986
Operating revenue (loss) (877,633)
Changes in net position (877,633)
Beginnin g net position -
Ending net position (877,633)$
124
249
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

15. OTHER INVESTMENTS
Other investments of $184,913,339 at June 30, 2025 in th e Water Fund represents water rights, investment in stored water and air quality credits. The City values its other investments at fair value in accordance with the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the assets. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inpu ts; Level 3 inputs are significant unobservable inputs. The City has the following recurring fair value measurements as of June 30, 2025:

16. CONTINGENCIES
Liabilities
Claims and suits have been filed against the City in th e normal course of business. Based upon information received from the City Attorney an d the self-insurance administrator, the estimated liability under such claims would be adequately covered by self-insurance designations and insurance coverage.

Grant
Under the terms of federal and state grants, periodic audits are required and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to reimbursement to the grantor agencies. City management believes disallowances, if any, will be immaterial.

Proposition 218
Proposition 218, which was approved by the voters in November, 1996, will regulate the City’s ability to impose, increase and extend taxes, assessments and fees. Any new, increased or extended taxes, assessments and fees subject to the provisions of Proposition 218 require voter approval before they can be implemented.

Additionally, Proposition 218 provides that these taxes, assessments and fees are subject to the voter initiative process and may be rescinded in the future by the vote rs. Therefore, the City’s ability to finance the services for which the taxes, assessments and fees were imposed may be significantly impaired. At this time, it is uncertain how Proposition 218 will affect the City’s ability to maintain or increase the revenue it receives from taxes, assessments and fees.

Total
Investment Type Level 1 Level 2 Level 3 Fair Value Water Rights - $ - $ 73,587,103$ 73,587,103 $ Investment in Stored Water - - 110,779,976 110,779,976 Air Quality Credits - - 546,260 546,260 Total other investments - $ - $ 184,913,339$ 184,913,339 Fair Value Measurement Using
125
250
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

17. COMMITMENTS
Construction Commitments
The following material construction commitments existed at June 30, 2025:

18. TAX ABATEMENTS
The City entered into various tax abatement agreemen ts with local businesses. The abatements may be granted to any business located within or promising to relocate to the City. For the fiscal year ended June 30, 2025, the City abated taxes totaling $10,605,792 under this program. The City has the following tax abatement agreements:
 A professional agreement with a consultant to provide sales tax audit and information services to the City. The audit services will detect and correct taxpayer reporting errors and generate new revenue without causing additional tax liabi lity to businesses. The City agreed to pay quarterly 20% of new sales and use tax revenues received as a result of corrections identified by the consultant. In fiscal year 2024-2025, the amount paid was $347,870.
 An operating covenant agreement with a retailer of equipment and merchandise of health care products and services to establish its only regional sales office in California within the City for not less than 20 years. The establishment of such retailer will generate local sales tax revenue, create high paying/management jobs and provide opportunity fo r additional job growth. The City agreed to rebate quarterly 50% of sales tax revenues attributab le to taxable sales. In fiscal year 2024-2025, the abatement amounted to $1,935,856.

Road
Contract Maintenance & Capital Remaining
Project Name Amount Rehab (SB 1) Projects Water Sewer Commitments ATP-Mission Blvd Bike & Pedestrian
Improvements 3,301,696 $ 24,914 $ - $ - $ - $ 3,276,782$ Ontario Sports Empire - Professional Baseball
Stadium 166,910,534 - 78,835,599 - - 88,074,935 Ontario Sports Empire - Offsite Improvements 9,132,090 - 4,558,196 - - 4,573,894 Ontario Sports Empire - Professional
Baseball Stadium Parking Structure 31,225,000 - 18,586,050 - - 12,638,950 Ontario Sports Empire - Vineyard Parking
Structure 38,068,712 - 1,072,927 - - 36,995,785 Ontario Sports Empire - Site Grading 56,896,320 - 43,542,854 - - 13,353,466 Civic Center Expansion Fire Station No.1 22,774,704 - 18,468,494 - - 4,306,210 John Galvin Park Snack Bar Reno 1,112,707 - 99,353 - - 1,013,354 Civic Center Expansion - Fire Admin Building 32,964,926 - 10,682,436 - - 22,282,490 Laurel Ave. Sewer Main Improvements 2,502,420 - - - 165,843 2,336,577 Sultana Avenue Storm Drain 13,331,098 - 1,963,815 - - 11,367,283 ATP Cycle 5 - Vine/B Bike Blvd 2,499,796 188,860 - - - 2,310,936 Pressure Reducing Station Rehab 3,197,877 - - 313,369 - 2,884,508 Total remaining commitments 205,415,170$
Expenditures to date as of June 30, 2025
126
251
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. TAX ABATEMENTS, Continued
 An operating covenant agreement with an automotive dealership which agreed to operate the entirety of its dealership facilities within the City for a period of 26 years. The dealership will generate substantial tax revenue, create potential for additional job growth and stimulate the economy. The City agreed to rebate 50% of sales tax revenues in excess of $700,000 during the period April 1, 2018 through March 31, 2028. In fiscal year 2024-2025, the abatement amounted to $505,187.  An operating covenant agreement with a retailer of consumer products to establish its warehouse and distribution center in the City an d remain in the City for no less than 41 years. The establishment of such retailer in the City will generate substantial revenue, create new jobs, revitalize the City, and result in community and public improvements. The City agreed to refund quar terly, 55% of sales tax revenues attributable to annual taxable sales up to $500 million and 60% of sales tax revenues over $500 million of annual taxable sales. In fiscal year 2024-2025, the abatement amounted to $751,453.  An operating covenant agreement with a retailer of consumer products to ensure that it maintains its existing warehouse and distribution center in the City and expands its operations within the City.

This will generate substantial revenue for the City, possibly create job growth, continue to stimulate the economy and result in community and public improvements. For the period beginning January 1, 2020, provided the City receives not less than $1.2 million of sales tax revenu e from the retailer, the City agreed to rebate 50% of sales tax revenues attr ibutable to taxable sales, not to exceed an annual amount of $1.8 million. In fiscal year 2024-2025, the abatement amounted to $1,280,363.  An operating covenant agreement with an auto dealership to develop and operate a facility in the City for its Inland Empire sales territory. The City will receive additional local sales tax revenues, property taxes, employment benefits, and other tangible and intangible benefits arising from the operation of the Dealership within the City. The eligibility period of this agreement is from July 1, 2009 until June 30, 2034. The City agreed to make quarterly payments not to exceed $200,000 for any computation year during the eligibility period for (1) computation period up to $500,000 in aggregate, an amount equal to 50% of the local sales tax revenues received above the quarterly base amount of $50,000; (2) computation period up to $1,000,000 in aggregate, an amount equal to 50% of the local sales tax revenues received above the quarterly base amount of $56,250; (3) computation period up to $1,950,000 in aggregate, an amount equal to 50% of local sales tax revenues received above the quarterly base amount of $62,500; and (4) comput ation period up to $2,900,000 in aggregate, an amount equal to 50% of the local sales tax revenu es received above the quarterly base amount of $68,750. In fiscal year 2024-2025, the abatement amounted to $27,328.  An operating covenant agreement with a global retailer of healthcare services and products to retain and operate its two facilities in the City for transacting sales. The City will receive additional sales tax revenues, maintain and create jobs and stimulate the economic recovery of the Inland Empire. The eligibility period of this agreement commenced on April 1, 2018 and will continue until terminated by either party. The City agreed to make quarterly payments equal to 50% of sales tax revenues. In fiscal year 2024-2025, the abatement amounted to $1,900,022.

127
252
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. TAX ABATEMENTS, Continued
 An operating covenant agreement with a sanitary su pplies distributor to retain existing jobs, allow for the potential increase in job opportunities, foster a business and civic environment that may attract additional businesses and investments and create additional job opportunities in the City. The eligibility period of this agreement began on July 1, 2017. The City agreed to make quarterly payments equal to 25% of sales tax revenues in excess of $201,000 quarterly up to $500,000. In fiscal year 2024- 2025, the abatement amounted to $55,351.
 An operating covenant agreement with several concrete companies to establish a sale office and/or a business location that participate in the sale proc ess within the City, expand operations within the City as appropriate and remains in the City for not less than 40 years. The establishment of such businesses is expected to generate substantial revenue for the City, create new jobs, revitalize an area of the City which has suffered a loss of jobs and result in community and public improvements. The eligibility period of this agreement began on Octo ber 1, 2018. The City agreed to make quarterly payments equal to 50% of the sales tax revenue attr ibutable to annual taxable sales for the calendar year which is directly allocated to the City. In fiscal year 2024-2025, th e abatement amounted to $1,278,346.
 A retention agreement with an auto dealership to encourage the auto dealership to remain in the City and consider future sales expansions in consideratio n of the local sales tax revenues, property taxes, employment benefits, and other tangible and intangible benefits that are expected to be received by the City arising from the Dealership within the City. During the eligib ility period the City agreed to pay on a quarterly basis for (1) operating years 1-5, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $75,000; (2) for operating years 6-10, an amount equal to 50% of the local sales ta x revenues received above the annu al base amount of $100,000; and (3) for operating years 11-15, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $125,000. The cumulative total of any and all covenant payments paid by the City pursuant to this Agreement shall not exceed $1,200,000. In fi scal year 2024-2025, the abatement amounted to $106,798.
 An operating covenant agreement with a retailer of consumer products that will generate substantial sales tax revenue and create approximately 325 new permanent jobs. The incentives provided in this Agreement are intended to ensure the retailer commences operations and remains in the City for no less than 11.5 years. The eligibility period of this agreement began on October 1, 2020. The City agreed to make quarterly payments equal to 50% of sales tax revenues received. In fiscal year 2024-2025, the abatement amounted to $1,506,748.
 An operating covenant agreement with an auto deal ership who recently established a new state-of- the-art automobile sales and service center in th e City. The covenanted operation of the Dealership serves to foster a business and civic environm ent that may attract additional businesses and investment in the community due to the availability of the increased public and private services and economic activity resulting therefrom. The eligibilit y period of this agreem ent began on January 1, 2021. During the eligibility period the City agreed to pay on an annual basis for (1) operating years 1- 4, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $100,000 and (2) for operating years 5-8, an amount equal to 50% of the local sales tax revenues received above the annual base amount of $125,000 for a period of up to eight (8) years or a maximum amount of $800,000. In fiscal year 2024-2025, the abatement amounted to $0. 128
253
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

18. TAX ABATEMENTS, Continued
 An operating covenant agreement with an industrial equipment company distributing more than 1.5 million metalworking and other industrial products. By establishing the Ontario sales offices, the company will consolidate other office locations acro ss Southern California to the City. This will, in turn, result in an increase revenue to the City, and there may be other community and public improvements that might not otherwise be available to the community for many years. The eligibility period of this agreement began on January 1, 2022. The City agreed to make quarterly payments equal to 50% of sales tax revenue received. In fiscal year 2024-2025, the abatement amounted to $672,405.  An operating covenant agreement with a retailer of consumer products that will generate substantial sales tax revenue and create approximately 490 new permanent jobs. The incentives provided in this Agreement are intended to ensure the retailer commences operations and remains in the City for no less than 15 years. The eligibility period of this ag reement began on April 1, 2023. The City agreed to make quarterly payments equal to 40% of sales tax revenues attributable to annual taxable sales up to $1,500,000 received by the City and payments equal to 50% of sales tax revenues attributable to annual taxable sales in excess of $1,500,000. In fiscal year 2024-2025, the abatement amounted to $238,065.

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY On December 29, 2011, the Californi a Supreme Court upheld Assembly B ill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. This action impacted the reporting entity of the City of Ontario that previously had reported a redevelopment agency within the reporting entity of the City as a blended component unit.

The Bill provides that upon dissolution of a redevelopm ent agency, either the city or another unit of local government will agree to serve as the “successor agency” to hold the assets until they are distributed to other units of state and local government. On January 10, 20 12, the City Council elected to become the Successor Agency for the former redevelopment agency in accordance with the Bill as part of City resolution number 2012-001.

After enactment of the law, which occurred on June 28, 2011, redevelopment agencies in the State of California cannot enter into new projects, obli gations or commitments. Subject to the control of a newly established oversight board, remaining assets can only be used to pay enforceable obligations in existence at the date of dissolution (including the completion of any unfinished projects that were subject to legally enforceable contractual commitments).

Successor agencies are only allocating revenue in the amount that is necessary to pay the estimated annual installment payments on enforceable obligations of th e former redevelopment agen cy until all enforceable obligations of the prior redevelopment agency have been paid in full and all assets have been liquidated.

The Bill directs the State Controller of the State of California to review the propriety of any transfers of assets between redevelopment agencies and other public bodies that occurred after January 1, 2011. If the public body that received such transfers is not contractually committed to a third party for the expenditure or encumbrance of those assets, the State Controller is required to order the available assets to be transferred to the public body designated as the successor agency by the Bill. 129
254
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued Management believes, in consultation with legal counse l, that the obligations of the former redevelopment agency due to the City are valid enforceable obligat ions payable by the successor agency trust under the requirements of the Bill. The City’s position on this issue is not a position of settled law and there is considerable legal uncertainty regarding this issue. It is reasonably possible that a legal determination may be made at a later date by an appropriate judicial auth ority that would resolve this issue unfavorably to the City.

In accordance with the timeline set forth in the B ill (as modified by the California Supreme Court on December 29, 2011) all redevelopment agencies in the State of California were dissolved and ceased to operate as a legal entity as of February 1, 2012.

A. Cash and Investments
As of June 30, 2025, cash and investments were reported in the accompanying financial statements as follows:

B. Advances to City
During prior fiscal years, the Former RDA loaned $1,600,000 to the Capital Project Fund for the purchase of property adjacent to Ontario Mills. At June 30, 2025, the balance of the advance was $1,600,000.

C. Long-Term Debt
The following is a summary of changes in Successor Agency long-term debt for the year ended June 30, 2025:

Cash and investments 3,097,457$
Cash and investments with fiscal agent 1,364,770
Total cash and investments 4,462,227$
Balance Balance Due Within
July 1, 2024 Additions Deletions June 30, 2025 One Year Public offerings:
1993 Tax Allocation Bonds 10,062,432$ -$ (6,749,755)$ 3,312,677$ 3,312,677$ 1995 Tax Allocation Bonds 889,768 - (596,845) 292,923 292,923 Direct borrowings:

Loans payable 5,305,914 - (774,195) 4,531,719 815,227 Advance from City 3,500,000 - - 3,500,000 - Total 19,758,114$ -$ (8,120,795)$ 11,637,319$ 4,420,827$

130
255
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued C. Long-Term Debt, Continued
1993 Tax Allocation Bond
The 1993 Tax Allocation Bonds in the amount of $45 ,708,900 were issued on June 11, 1993, to finance redevelopment activities related to Project Area #1. The Agency sold the bonds to the Financing Authority at a purchase price equal to the principal amount of the bonds plus a premium. The investment by the Authority in the bonds is held in an agency fund. The terms were negotiated in a prior year and reduced the outstanding principal balance by $800. Additiona lly, the maturity date was extended two years to August 1, 2025. The interest is paid semi-annually at the stated rate of 12%. The balance at June 30, 2025, amounted to $3,312,677.

The annual requirements to amortize the outstanding bond indebtedness as of June 30, including interest, are as follows:

The outstanding bonds contain a provision that if any event of default should occur, the Trustee shall at the written direction of the Owner of a majority in aggregate principal amount outstanding, declare the principal of all the bonds then ou tstanding, and the interest accrue d thereon, to be due and payable immediately.
1995 Tax Allocation Bond
On August 15, 1995, the Ontario Redevelopment Agency issued $4,041,700 in 1995 Tax Allocation Bonds.

The bonds were sold to the Ontario Redevelopmen t Financing Authority at par plus premium. All proceeds of the 1995 Bonds will be used to finance redevelopment projects related to Project Area #1. The 1995 Bonds were issued on parity with the Agency’s existing Project Area #1 1992 and 1993 Tax Allocation Bonds. The 1995 Bonds were issued with an interest rate of 12.00%, provided that the interest rate for the period from August 1, 1995 through July 1, 1996, s hall be 10.55% per annum, the interest rate for the period from August 1, 1996 through July 31, 1997, shall be 11.70% per annum, and the interest for the period from August 1, 1997 through July 31, 1999, shall be 11.86% per annum. Interest is paid semi- annually each year and commenced February 1, 1996, until final maturity on August 1, 2025. The balance at June 30, 2025, amounted to $292,923.

For the Years
Ending June 30, Principal Interest Total
2026 3,312,677 $ 54,630 $ 3,367,307$
Total 3,312,677 $ 54,630 $ 3,367,307$ 1993 Tax Allocation Bonds
131
256
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued C. Long-Term Debt, Continued
The annual requirements to amortize the outstanding bond indebtedness as of June 30, including interest, are as follows:

Loans Payable
Pursuant to a loan agreement dated February 1, 2002, the Ontario Redevelopment Agency issued the Ontario Redevelopment Project #1 2002 Housing Set-Aside Loan in the amount of $15,145,000 to finance low and moderate income activities of the Agency within or of the benefit to the Ontario Redevelopment Agency Project Area #1. The loan matures in Augu st 2029 and is payable from Housing Tax Revenues allocated to the Agency. Interest is paid semi-annually at a rate of 5.30% per annum. The balance at June 30, 2025, amounted to $4,531,719.

At June 30, 2025, the annual requirements to repay the outstanding indebtedness were as follows:

The remedies available upon the occurrence of an event of default under the loan agreement are in many respects dependent upon regulatory and judicial actions.

For the Years
Ending June 30, Principal Interest Total
2026 292,923 $ 161,706 $ 454,629 $
Total 292,923 $ 161,706 $ 454,629 $ 1995 Tax Allocation Bonds
For the Years
Ending June 30, Principal Interest Total
2026 815,227 $ 218,578 $ 1,033,805 $ 2027 858,434 174,226 1,032,660 2028 903,931 127,523 1,031,454 2029 951,840 78,345 1,030,185 2030 1,002,287 26,560 1,028,847 Total 4,531,719 $ 625,232 $ 5,156,951 $ 2002 FNMA Housing Set-Aside Loan
132
257
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

19. SUCCESSOR TRUST FOR ASSETS OF FORMER REDEVELOPMENT AGENCY, Continued C. Long-Term Debt, Continued
Advance from City
The General Fund made an advance in the amount of $3,500,000 to the Successor Agency of the Former Redevelopment Agency to assist the Agency in implementation of the redevelopment plan.

Debt Service Requirements
The City pledged, as security for bonds issued, ei ther directly or through the Financing Authority, a portion of tax increment revenue (including Low and Moderate-Income Housing set-aside and pass through allocations) that it receives. The bonds i ssued were to provide financing for various capital projects, accomplish Low and Moderate Income Housing projects and to defies previously issued bonds.

Assembly Bill 1X 26 provided that upon dissolution of the Redevelopment Agency, property taxes allocated to redevelopment agencies no longer are deemed tax increment but rather property tax revenues and will be allocated first to successor agencies to make payments on the in debtedness incurred by the dissolved redevelopment agency. Tota l principal and interest remaining on the debt is $12,478,887 with annual debt service requirements as indicated on th e previous pages. For the current year, the total property tax revenue recognized by the Successor Agency for the payment of obligations incurred by the dissolved redevelopment agency was $4,482,199 and the debt service obligation on the bonds was $8,220,068.

20. PRIOR PERIOD ADJUSTMENTS
Prior period adjustments recorded by the City for the current year were as follows:

Net Position/ Property Net Position/
Fund Balance Capital Held for Other SBITA Compensated Other Fund Balance as Previously Assets Resale Investments Liabilities Absences Corrections Net Position Government-w ide
Governmental activities 1,617,876,227$ 3,491,997 $ (4,616,079) $ - $ (3,253,311)$ (7,219,623) $ (200) $ 1,606,279,011$ Business-type activities 484,777,066 - - 12,039,457 - (559,814) - 496,256,709 Fund Financials
Nonmajor Governmental Funds 232,059,386 - (4,616,079) - - - (200) 227,443,107 Enterprise Funds
Water Fund 387,134,507 - - 12,039,457 - (226,889) - 398,947,075 Sewer Fund 85,577,333 - - - - (43,364) - 85,533,969 Integrated Waste Fund 40,827,667 - - - - (289,561) - 40,538,106 Internal Service Funds (165,838,176) (80,012) - - (269,354) (7,219,623) - (173,407,165) Prior Period Adjustments
133
258
City of Ontario
Notes to Basic Financial Statements
For the Year Ended June 30, 2025

20. PRIOR PERIOD ADJUSTMENTS, Continued
The City recorded prior period adjustments for the following:

1) Corrections of errors:
 Capital Assets – restatements were recorded in Governmental Activities and Internal Service Funds to correct the beginning balances of cons truction in progress, accumulated depreciation, right-to-use subscription assets;
 Property Held for Resale – restatements were recorded in Governmental Activities and Nonmajor Governmental Funds to correctly recorded a proper ty sold in prior years but kept on the books in error;
 Other Investments – restatements were recorded in Business-Type Activities and the Water Fund to correct the balance of the investments in stored water inventory;  SBITA Liabilities – restatements were recorded in Governmental Activities and the Internal Service Fund to record certain subscription based information technology agreement related liabilities not recognized in the prior year in accordance with GASB 96; and  Other Corrections – a restatement was recorded in the Community Development Fund to correct a $200 difference carried forward from the City’s old accounting system.

2) Implementation of GASB Statement No. 101, Compensated Absences:
 The City recorded prior period adjustments in Governmental Activities, Business-Type Activities, Enterprise Funds, and Internal Service Funds to implement GASB Statement No. 101, Compensated Absences.

21. SUBSEQUENT EVENTS
In January 2025, the City entered into a purchase and sale agreement with Costello Investments LLC, for the purchase of property to be used for the construction of an animal shelter. In July 2025, a secured promissory note was issued upon the close of escrow in the amount of $7,100,000. The note bears a 4.32% interest rate and is due in monthly payment amounts of $72,995 from September 2025 to August 2035. The permanent location of the new animal shelter has changed, and the property purchased is being evaluated for an alternative City purpose or will be sold.

In November 2025, the City of Ontario Community Facilities District issued a new special tax bond (non-City obligation) for Community Facilities District No. 71 (Neuhouse Phase 2) in the amount of $1 6,213,603 to provide financing for certain authorized facilities and costs with respect to the development within the district.

134
259

REQUIRED

SUPPLEMENTARY

INFORMATION
135
260

REQUIRED

SUPPLEMENTARY

INFORMATION
136
261
City of Ontario
Required Supplementary Information
For the Year Ended June 30, 2025

1. BUDGET AND COMPARISON INFORMATION
General Budget Policies

1. The annual budget adopted by the City Council prov ides for the general operation of the City. It includes proposed expenditures and the means of financing them.

2. The City Council approves total budgeted appropri ations and any amendments to appropriations throughout the year. All amendmen ts made during the year are included in the budgetary amounts reported herein. The “appropriated budget” cove rs all City expenditures, including capital improvement projects carried forward from the prior year, which is re-appropriated every year.

Actual expenditures may not exceed budgeted appropriations at the fund level, which is the legal level of control. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions that alter total expenditures of any fund must be approved by the City Council.

3. Formal budgetary integration is employed as a management control device during the year.

Commitments for materials and services, such as purchase orders and contracts, are recorded as encumbrances to assist in controlling expenditur es. Appropriations that are encumbered lapse at year-end and then are added to the following year’s budgeted appropriations.

4. Budgets for the General, Special Revenue, Capital Projects, and Debt Service Funds are adopted on a basis substantially consistent with generally accepted accounting principles (GAAP). Accordingly, actual revenues and expenditures can be comp ared with related budgeted amounts without any significant reconciling items. Budget comparisons are not presented for the Proprietary Funds, as the City is not legally required to adopt a budget for those type of funds.

5. Capital projects are budgeted through the Capital Pr ojects Fund. Appropriations for capital projects authorized, but not constructed or completed during the year, are re-appropriated in the following year’s budget.

6. Under Article XIII-B of the California Constitution (the Gann Spending Limitation Initiative), the City is restricted as to the amount of annual appropriations from the proceeds of taxes, and if proceeds of taxes exceed allowed appropriations , the excess must be either refunded to the State Controller or returned to the taxpayers through revised tax rates or revised fee schedules, or an excess in one year may be offset by a deficit in the following year. For the fiscal year ended June 30, 2025, based on calculations by City staff, proceeds of taxes did not exceed appropriations.

7. Further, Section 5 of Article XIII-B allows the City to designate a portion of fund balance for general contingencies to be used for any purpose. On August 10, 1996, the City Council passed Resolution 96- 073 setting aside all unappropriated fund balances in the General Fund as a contingency fund.

137
262
City of Ontario
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Ne gative)
REVENUES:

Taxes 337,525,000 $ 340,700,000 $ 345,263,407 $ 4,563,407 $ Licenses and permits 7,057,000 7,057,000 10,817,111 3,760,111 Intergovernmental 18,260,721 17,548,589 17,980,405 431,816 Charges for services 54,994,961 54,527,874 54,872,910 345,036 Use of money and property 1,480,000 1,480,000 6,549,559 5,069,559 Fines and forfeitures 901,000 901,000 1,419,576 518,576 Miscellaneous 5,647,747 15,963,259 16,556,435 593,176 Total revenues 425,866,429 438,177,722 453,459,403 15,281,681 EXPENDITURES:

General government
Mayor and city council 431,991 431,991 495,833 (63,842) City clerk 65,310 65,310 62,921 2,389 City treasurer 50,581 50,581 64,434 (13,853) Records management 1,172,580 1,405,747 1,330,852 74,895 City attorney 1,673,850 1,673,850 3,958,458 (2,284,608) Office of the city manager 2,701,707 2,922,120 3,301,420 (379,300) Financial services administration 1,344,089 1,115,826 1,133,996 (18,170) Financial services operations 23,838,430 24,156,532 20,007,708 4,148,824 Human resources administration 6,432,579 6,532,638 6,385,479 147,159 Innovation, performance, and audit 1,486,494 1,369,703 1,280,095 89,608 Successor project management 2,275,000 2,689,387 1,562,076 1,127,311 Communications and community relations 2,605,904 2,540,935 2,540,999 (64) Total general government 44,078,515 44,954,620 42,124,271 2,830,349 Public safety
Police administration services 14,830,784 14,793,396 13,575,389 1,218,007 Airport operations bureau 15,242,361 14,644,838 17,738,578 (3,093,740) Office of the police chief 3,190,308 3,206,433 3,463,422 (256,989) Field operations bureau 50,877,106 51,604,893 50,093,177 1,511,716 Investigations bureau 31,897,110 32,904,002 36,679,050 (3,775,048) Special operations bureau 16,591,352 16,584,398 17,224,773 (640,375) Office of the fire chief 3,310,282 3,307,290 3,418,492 (111,202) Bureau of fire prevention 5,198,763 5,318,343 4,945,679 372,664 Bureau of EMS/special operations 9,221,742 9,223,249 9,270,735 (47,486) Bureau of operations 76,831,962 73,975,973 73,549,537 426,436 Bureau of support services 2,946,792 3,453,862 3,261,815 192,047 Bureau of administrative services 5,081,008 5,125,632 5,020,831 104,801 Total public safety 235,219,570 234,142,309 238,241,478 (4,099,169) Budget Amounts
138
263
City of Ontario
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual General Fund (Continued)
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Ne gative)
Community development
Community life and culture administration 1,995,851 1,951,953 2,252,218 (300,265) Recreation and community services 15,529,003 15,794,443 16,159,747 (365,304) Community development administration 1,633,218 1,437,318 1,512,229 (74,911) Planning 4,896,295 4,985,387 5,210,344 (224,957) Building 6,663,225 6,690,707 6,720,917 (30,210) Economic development 15,101,851 19,908,575 21,406,551 (1,497,976) Museum 2,926,951 2,838,068 2,836,596 1,472 Library 7,155,039 7,272,478 7,300,893 (28,415) Community improvement 9,356,237 12,445,602 13,369,649 (924,047) Homeless continuum care 2,037,478 2,045,762 1,802,380 243,382 Housing 791,533 778,958 524,331 254,627 Total community development 68,086,681 76,149,251 79,095,855 (2,946,604) Public works
Parks and street maintenance 19,332,051 19,768,513 19,264,749 503,764 Public works administration 983,808 1,043,628 1,430,794 (387,166) Facilities and fleet maintenance 676,980 722,856 582,533 140,323 Engineering 11,906,066 12,200,180 10,440,184 1,759,996 Total public works 32,898,905 33,735,177 31,718,260 2,016,917 Debt service:

Principal retirement - - 3,425,357 (3,425,357) Total debt service - - 3,425,357 (3,425,357) Total expenditures 380,283,671 388,981,357 394,605,221 (5,623,864)

REVENUES OVER (UNDER)
EXPENDITURES 45,582,758 49,196,365 58,854,182 9,657,817 OTHER FINANCING SOURCES (USES):

Transfers in 3,000,000 3,459,374 3,459,374 - Transfers out (47,146,250) (49,338,582) (49,877,385) (538,803) Total other financing sources (uses) (44,146,250) (45,879,208) (46,418,011) (538,803) Net change in fund balances 1,436,508$ 3,317,157$ 12,436,171 9,119,014$ FUND BALANCES:

Beginning of year 99,880,885
End of year 112,317,056$
Budget Amounts
139
264
City of Ontario
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Ontario Housing Authority
For the year ended June 30, 2025
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Charges for services - $ - $ 143,102$ 143,102 $ Use of money and property 418,677 418,677 681,373 262,696 Miscellaneous 102,250 11,410,545 12,255,245 844,700 Total revenues 520,927 11,829,222 13,079,720 1,250,498 EXPENDITURES:

Current:

General government - - 43,000 (43,000) Community development 1,567,675 8,415,821 2,111,343 6,304,478 Total expenditures 1,567,675 8,415,821 2,154,343 6,261,478

REVENUES OVER (UNDER)
EXPENDITURES (1,046,748) 3,413,401 10,925,377 7,511,976 Net change in fund balances (1,046,748)$ 3,413,401 $ 10,925,377 7,511,976 $ FUND BALANCES:

Beginning of year 26,904,207
End of year 37,829,584$
Budget Amounts
140
265
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Modified Approach for City Infrastructure Capital Assets

Poor 26-40
Very poor 11-25
Failed 0-10
Condition
Rating
In accordance with GASB Statement No. 34, the City is required to account for and report infrastructure assets. The City defines infrastructure as the basic physical assets including the street system; water purification and distribution system; wastewater collection and treatment system; and buildings combined with site amenities such as parking and landscaped areas used by the City in the conduct of its business. Each major infrastructure system can be divided into subsystems. For example, the street system can be divided into concrete curb and gutters, sidewalks, medians, streetlights, traffic control devices (signs, signals and pavement markings), landscaping and land. Subsystem detail is not presented in these basic financial statements; however, the City maintains detailed information on these subsystems.

The City has elected to use the "Modified Approach" as defined by GASB Statement No. 34 for infrastructure reporting for its Street Pavement System. Under GASB Statement No. 34, eligible infrastructure capital assets are not required to be depreciated under the following requirements:
 The City manages the eligible infrastructure assets using an asset management system with characteristics of (1) an up-to-date inventory; (2) perform condition assessments and summarize the results using a measurement scale; and (3) estimate annual amount to maintain and preserve at the established assessment level.  The City documents that the eligible infrastructure assets are being preserved approximately at or above the established and disclosed condition assessment level.

In February 2025, the City completed a study to update the physical condition assessment of the streets. The prior assessment study was completed in February 2024. The streets, primarily surfaced with asphalt and concrete, were defined as all physical features associated with the operation of motorized vehicles that exist within the limits of right of way. City owned streets are classified based on land use, access and traffic utilization into the following four classifications: arterial, collector local, and alley. Currently, 50% of the City’s arterial and collectors and 25% of the local streets and alleys are being assessed each year. Each street and its related subsystems were assigned a physical condition based on 17 potential defects. A Pavement Condition Index (PCI), a nationally recognized index, was assigned and expressed in a continuous scale from 0 to 100, where 0 is assigned to the least acceptable physical condition and 100 is assigned the physical characteristics of a new street. The following conditions were defined in the study:

Fair 41-55
Excellent 86-100
Very good 71-85
Good 56-70
141
266
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Modified Approach for City Infrastructure Capital Assets (Continued) Condition
Excellent to Very Good
Good to fair
Poor to Failed
Report's Date
April 11, 2005 65.0
As of February 2025, the City had some of its streets rated below a “fair” rating. The City will require several years to rehabilitate these segments of the streets.

January 11, 2007 67.0
February 21, 2006 68.0
February 18, 2008 65.0
May 14, 2012 71.1
March 18, 2010 69.0
January 2013 70.6
May 2016 76.3
March 2015 74.7
April 2017 78.3
January 2019 82.7
February 2018 82.0
February 2020 82.8
February 2022 80.8
March 2021 81.3
February 2023 80.7
The following is the condition assessment for the most recent years since im PCI Index
February 2024 80.4
February 2025 80.2
The City's policy is to maintain the existing weighted average rating of "very good". This rating allows for minor cracking and raveling of the pavement along with minor roughness that could be noticeable to drivers traveling at the posted speeds. As of February 2025, the City’s average street and its related subsystem’s Pavement Condition Index (PCI) rating was 80.2, with the detail condition as follows:
% of Streets

77.2%

20.1%

2.7%
142
267
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Modified Approach for City Infrastructure Capital Assets (Continued) Maintenance Category 2017 2018 2019 2020 2021 2022 2023 2024 2025 Streets Estimated 13,008,613 $ 12,441,858 $ 12,273,799 $ 12,694,852 $ 11,151,458 $ 11,865,000 $ 9,176,050 $ 13,822,357 $ 16,397,744 $ Actuals 8,219,379 8,696,188 11,067,305 9,155,000 7,112,536 8,356,883 7,259,571 13,063,696 10,877,748 Sidewalks Estimated 1,669,078 1,700,699 1,790,476 1,698,940 1,586,450 1,913,622 2,633,516 3,139,600 3,032,080 Actuals 1,578,819 1,488,652 1,602,108 1,649,357 1,557,834 1,623,608 1,857,533 2,372,378 3,342,940 Storm Drain Estimated 1,894,890 1,735,524 1,824,635 2,587,972 2,255,702 2,276,383 2,375,158 2,183,326 2,068,194 Actuals 1,714,063 1,452,261 1,407,071 1,925,921 1,856,150 1,765,742 1,828,953 1,862,901 3,281,348 Traffic
Signal/ Street
Lights Estimated 4,383,271 4,687,717 4,744,781 5,004,117 4,707,980 4,873,341 4,315,247 5,189,214 5,533,687 Actuals 4,024,946 4,330,956 4,108,176 4,279,727 4,509,065 4,628,351 3,976,676 4,991,949 5,129,561 As of June 30, 2025, the City had approximately 117,527,118 square feet (561.9 section miles) of streets with a carrying amount of $583,128,020 and a replacement cost of approximately $1,457,327,200.

The City is also continuously taking actions to arrest the deterioration of other infrastructure assets through short- term maintenance activities. For the fiscal year ended June 30, 2025, the City expended $11.75 million on infrastructure maintenance for sidewalks, catch basin/storm drains, and traffic signal/street lightings. These expenditures delayed deterioration and improved the overall condition of these infrastructures. It is estimated that it will cost approximately $10.63 million per year to maintain these other infrastructure assets at their present level as shown on the schedule presented below.

Fiscal Year ending June 30th,
The City’s streets are constantly deteriorating resulting from the following four factors: (1) traffic using the streets, (2) the sun’s ultra-violet rays drying out and breaking down the top layer of pavement, (3) utility company/private development interests trenching operations, and (4) water damage from natural precipitation and other urban runoff.

The City is continuously taking actions to arrest the deterioration through short-term maintenance activities such as pothole patching, street sweeping, and street paving. The City expended $10.88 million on street maintenance for the fiscal year ended June 30, 2025. These expenditures delayed deterioration however, the overall condition of the streets was not improved through these maintenance expenditures. The City has estimated that the amount of annual expenditures required maintaining the City’s streets at the average PCI rating of “Good” through the year 2030 is a minimum of $10.1 million per year. A schedule of estimated annual amount required to maintain and preserve the City’s streets at the current level compared to actual expenditures for street maintenance for the last five years is presented below.
143
268
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Miscellaneous Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years Measurement Period 2015 2016 2017 2018

TOTAL PENSION LIABILITY
Service cost 6,295,399$ 6,785,157$ 8,020,608$ 8,293,305$ Interest 20,680,719 22,042,754 23,255,948 24,357,078 Changes in benefit terms - - - - Differences between expected and actual experience (2,539,125) 2,960,090 1,183,589 833,264 Changes in assumptions (5,069,730) - 19,573,224 (3,104,763) Benefit payments, including refunds of employee
contributions (11,779,873) (12,973,536) (13,196,500) (14,285,430) Net change in the total pension liability 7,587,390 18,814,465 38,836,869 16,093,454 Total pension liability - beginning 280,687,278 288,274,668 307,089,133 345,926,002 Total pension liability - ending (a) 288,274,668$ 307,089,133 $ 345,926,002 $ 362,019,456 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 5,965,663$ 6,919,250$ 7,142,812$ 8,845,306$ Contributions - employee 3,288,408 3,496,228 3,300,315 4,098,899 Net investment income 5,225,720 1,288,913 26,063,000 21,684,987 Benefit payments, including refunds of employee
contributions (11,779,873) (12,973,536) (13,196,500) (14,285,430) Plan to plan resource movement (670) 221 - (1,183) Administrative expense (270,392) (144,268) (347,413) (402,453) Other miscellaneous income (expense) - - - (764,265) Net change in plan fiduciary net position 2,428,856 (1,413,192) 22,962,214 19,175,861 Plan fiduciary net position - beginning 234,290,273 236,719,129 235,305,937 258,268,151 Plan fiduciary net position - ending (b) 236,719,129$ 235,305,937$ 258,268,151$ 277,444,012$ Net pension liability - ending (a) - (b) 51,555,539$ 71,783,196$ 87,657,851$ 84,575,444$ Plan fiduciary net position as a percentage of the
total pension liability 82.12% 76.62% 74.66% 76.64%
Covered payroll 39,204,131$ 43,085,834$ 46,066,325$ 48,007,553$ Net pension liability as a percentage of covered
payroll 131.51% 166.61% 190.29% 176.17%
Notes to the Schedule:

Changes in Assumptions:

In fiscal year 2022-23 there were no changes.

In fiscal year 2023-24 there were no changes.

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent.

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2021-22 the discount rate was reduced from 7.15% to 6.90%. 144
269
2019 2020 2021 2022 2023 2024
8,873,061$ 9,303,101$ 9,554,732$ 8,971,176$ 10,022,391$ 11,060,470$ 26,179,759 27,711,756 29,123,371 31,021,937 32,490,617 33,933,671 - - - 15,815,925 600,068 - 7,329,159 2,223,422 1,890,251 (6,228,614) 4,013,971 2,633,543 - - - 16,829,276 - - (15,269,344) (16,860,141) (21,715,949) (23,343,080) (24,351,961) (25,151,536) 27,112,635 22,378,138 18,852,405 43,066,620 22,775,086 22,476,148 362,019,456 389,132,091 411,510,229 430,362,634 473,429,254 496,204,340 389,132,091$ 411,510,229 $ 430,362,634 $ 473,429,254 $ 496,204,340$ 518,680,488$ 9,750,907$ 113,590,085$ 5,232,930$ 5,595,658$ 6,355,517$ 8,231,197$ 3,976,957 4,187,458 3,680,504 3,821,215 4,388,640 5,904,858 18,145,412 14,846,554 91,365,820 (36,382,163) 26,436,112 42,301,678 (15,269,344) (16,860,141) (21,715,949) (23,343,080) (24,351,961) (25,151,536) - 3,753 - - - - (197,990) (414,257) (408,770) (303,595) (321,163) (365,559) 641 - - (2) - - 16,406,583 115,353,452 78,154,535 (50,611,967) 12,507,145 30,920,638 277,444,012 293,850,595 409,204,047 487,358,582 436,746,615 449,253,760 293,850,595$ 409,204,047 $ 487,358,582 $ 436,746,615 $ 449,253,760$ 480,174,398$ 95,281,496$ 2,306,182 $ (56,995,948) $ 36,682,639 $ 46,950,580$ 38,506,090$

75.51% 99.44% 113.24% 92.25% 90.54% 92.58%
51,795,345$ 55,145,826 $ 51,492,952 $ 54,124,236 $ 59,987,469 $ 64,305,056 $ 183.96% 4.18% -110.69% 67.77% 78.27% 59.88%
145
270
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Safety Police Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years Measurement Period 2015 2016 2017 2018

TOTAL PENSION LIABILITY
Service cost 6,095,464$ 6,630,087$ 7,755,445$ 8,903,620$ Interest 21,492,971 22,805,001 23,727,296 25,115,253 Differences between expected and actual experience (435,228) 1,866,294 (3,343,535) 3,330,790 Changes of Benefit Terms - - - - Changes in assumptions (5,448,420) - 20,461,012 (1,542,087) Benefit payments, including refunds of employee
contributions (12,128,407) (13,014,228) (13,724,815) (15,142,297) Net change in the total pension liability 9,576,380 18,287,154 34,875,403 20,665,279 Total pension liability - beginning 289,853,982 299,430,362 317,717,516 352,592,919 Total pension liability - ending (a) 299,430,362$ 317,717,516 $ 352,592,919 $ 373,258,198 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 8,077,089$ 9,031,995$ 10,241,924$ 12,590,271$ Contributions - employee 2,077,172 2,185,576 2,309,239 3,082,481 Net investment income 4,795,601 1,073,635 24,253,009 20,500,833 Benefit payments, including refunds of employee
contributions (12,128,407) (13,014,228) (13,724,815) (15,142,297) Plan to plan resource movement 607 - - (60) Administrative expense (246,269) (133,344) (321,771) (375,070) Other miscellaneous income (expense) - - - (712,265) Net change in plan fiduciary net position 2,575,793 (856,366) 22,757,586 19,943,893 Plan fiduciary net position - beginning 216,218,741 218,794,534 217,938,168 240,695,754 Plan fiduciary net position - ending (b) 218,794,534$ 217,938,168$ 240,695,754$ 260,639,647$ Net pension liability - ending (a) - (b) 80,635,828$ 99,779,348$ 111,897,165$ 112,618,551$ Plan fiduciary net position as a percentage of the
total pension liability 73.07% 68.59% 68.26% 69.83%
Covered
payroll 21,416,900$ 23,375,007$ 24,563,537$ 28,650,190$ Net pension liability as a percentage of covered
payroll 376.51% 426.86% 455.54% 393.08%
Notes to the Schedule:

Benefit Chan
ges: There were no changes in benefits.

Changes in Assumptions:

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2021-22 the discount rate was reduced from 7.15% to 6.90%.

In fiscal year 2022-23 there were no changes.

In fiscal year 2023-24 there were no changes.

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent.

In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. 146
271
2019 2020 2021 2022 2023 2024
9,490,945$ 10,397,206$ 11,110,950$ 10,855,558$ 11,941,635$ 12,629,197$ 27,456,414 29,448,493 31,081,768 33,448,693 35,329,450 36,698,959 14,622,182 8,260,014 3,286,194 344,379 6,884,134 (2,243,709) - - - 11,666,947 150,082 - - - - 19,552,043 - - (17,240,114) (18,358,394) (22,933,112) (24,216,445) (25,031,867) (26,014,508) 34,329,427 29,747,319 22,545,800 51,651,175 29,273,434 21,069,939 373,258,198 407,587,625 437,334,944 459,880,744 511,531,919 540,805,353 407,587,625$ 437,334,944 $ 459,880,744 $ 511,531,919 $ 540,805,353 $ 561,875,292 $ 13,281,118$ 154,440,411$ 7,489,804$ 8,472,943$ 8,908,687$ 10,529,898$ 3,171,669 3,557,026 3,727,094 3,959,475 4,197,599 5,292,142 17,108,327 14,435,085 96,551,012 (38,663,601) 28,201,044 45,347,635 (17,240,114) (18,358,394) (22,933,112) (24,216,445) (25,031,867) (26,014,508) - (3,755) - - - - (185,998) (390,183) (429,999) (320,727) (341,271) (390,599) 603 - - - - - 16,135,605 153,680,190 84,404,799 (50,768,355) 15,934,192 34,764,568 260,639,647 276,775,252 430,455,442 514,860,241 464,091,886 480,026,078 276,775,252$ 430,455,442 $ 514,860,241 $ 464,091,886 $ 480,026,078 $ 514,790,646 $ 130,812,373$ 6,879,502 $ (54,979,497) $ 47,440,033 $ 60,779,275 $ 47,084,646 $

67.91% 98.43% 111.96% 90.73% 88.76% 91.62%
30,612,990$ 33,746,205$ 33,334,679$ 34,988,941$ 28,834,043$ 38,212,396$ 427.31% 20.39% -164.93% 135.59% 210.79% 123.22%
147
272
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Safety Fire Plan
Schedule of Changes in the Net Pension Liability and Related Ratios - Last 10 Years Measurement Period 2015 2016 2017 2018

TOTAL PENSION LIABILITY
Service cost 3,826,254$ 4,011,720$ 4,694,688$ 5,450,102$ Interest 16,115,504 17,007,366 17,663,790 18,731,153 Differences between expected and actual experience (5,049,828) 2,059,569 (205,847) 5,431,927 Changes of Benefit Terms - - - - Changes in assumptions (3,893,081) - 14,596,257 (1,280,641) Benefit payments, including refunds of employee
contributions (10,326,665) (10,544,779) (11,502,192) (12,416,436) Net change in the total pension liability 672,184 12,533,876 25,246,696 15,916,105 Total pension liability - beginning 222,853,296 223,525,480 236,059,356 261,306,052 Total pension liability - ending (a) 223,525,480$ 236,059,356 $ 261,306,052 $ 277,222,157 $

PLAN FIDUCIARY NET POSITION
Contributions - employer 5,643,212$ 5,475,379$ 5,785,138$ 7,480,185$ Contributions - employee 1,673,250 1,513,475 1,535,337 1,996,292 Net investment income 3,958,046 890,970 19,188,945 15,891,350 Benefit payments, including refunds of employee
contributions (10,326,665) (10,544,779) (11,502,192) (12,416,436) Plan to plan resource movement - (221) - (468) Administrative expense (200,094) (108,343) (258,375) (295,680) Other miscellaneous income (expense) - - - (561,501) Net change in plan fiduciary net position 747,749 (2,773,519) 14,748,853 12,093,742 Plan fiduciary net position - beginning 177,024,944 177,772,693 174,999,174 189,748,027 Plan fiduciary net position - ending (b) 177,772,693$ 174,999,174$ 189,748,027$ 201,841,769$ Net pension liability - ending (a) - (b) 45,752,787$ 61,060,182 $ 71,558,025 $ 75,380,388 $ Plan fiduciary net position as a percentage of the
total pension liability 79.53% 74.13% 72.62% 72.81%
Covered
payroll 14,881,781$ 15,700,218$ 16,311,760$ 19,029,023$ Net pension liability as a percentage of covered
payroll 307.44% 388.91% 438.69% 396.13%
Notes to the Schedule:

Benefit Chan
ges: There were no changes in benefits.

Changes in Assumptions:

In fiscal year 2022-23 there were no changes.

In fiscal year 2023-24 there were no changes.

In fiscal years 2018-19, 2019-20, and 2020-21 there were none.

In fiscal year 2021-22 the discount rate was reduced from 7.15% to 6.90%.

In fiscal year 2016-17, the discount rate was changed from 7.65 percent (net of administrative expense) to 7.15 percent.

In fiscal year 2017-18, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. 148
273
2019 2020 2021 2022 2023 2024
5,774,916$ 6,188,402$ 6,831,688$ 6,700,238$ 7,783,608$ 8,415,866$ 20,209,053 21,509,141 22,591,435 24,303,588 25,365,250 26,376,448 9,490,435 6,351,419 3,455,873 5,111,381 3,012,293 984,820 - - - 8,447,824 89,175 - - - - 11,704,148 - - (13,911,900) (14,806,228) (17,869,994) (18,847,882) (19,673,274) (19,916,264) 21,562,504 19,242,734 15,009,002 37,419,297 16,577,052 15,860,870 277,222,157 298,784,661 318,027,395 333,036,397 370,455,694 387,032,746 298,784,661$ 318,027,395 $ 333,036,397 $ 370,455,694 $ 387,032,746 $ 402,893,616 $ 7,800,187$ 103,651,019$ 4,913,650$ 5,741,862$ 6,148,037$ 7,289,083$ 2,057,562 2,467,276 2,428,156 2,691,344 2,856,604 3,685,374 13,135,037 10,819,335 69,748,734 (27,807,071) 20,163,534 32,157,765 (13,911,900) (14,806,228) (17,869,994) (18,847,882) (19,673,274) (19,916,264) - - - - - - (144,039) (297,147) (312,282) (231,436) (244,923) (278,546) 468 - - - - - 8,937,315 101,834,255 58,908,264 (38,453,183) 9,249,978 22,937,412 201,841,769 210,779,084 312,613,339 371,521,603 333,068,420 342,318,398 210,779,084$ 312,613,339$ 371,521,603$ 333,068,420$ 342,318,398$ 365,255,810$ 88,005,577$ 5,414,056 $ (38,485,206) $ 37,387,274 $ 44,714,348 $ 37,637,806 $

70.55% 98.30% 111.56% 89.91% 88.45% 90.66%
20,523,547$ 22,228,457$ 25,162,755$ 26,648,320$ 37,182,071$ 28,567,094$ 428.80% 24.36% -152.95% 140.30% 120.26% 131.75%
149
274
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Pension Plan Contributions - Last 10 Years* 2016 2017 2018 2019
6,919,250$ 7,142,812$ 8,845,306$ 9,750,907$ (6,919,250) (7,142,812) (8,845,306) (9,750,907) -$ -$ -$ -$ 43,085,834$ 46,066,325$ 48,007,553$ 51,795,345$

16.06% 15.51% 18.42% 18.83%
9,031,995$ 10,241,924$ 12,590,271$ 13,281,118$ (9,031,995) (10,241,924) (12,590,271) (13,281,118) -$ -$ -$ -$ 23,375,007$ 24,563,537$ 28,650,190$ 30,612,990$

38.64% 41.70% 43.94% 43.38%
5,475,379$ 5,785,138$ 7,480,185$ 7,800,187$ (5,475,379) (5,785,138) (7,480,185) (7,800,187) -$ -$ -$ -$ 15,700,218$ 16,311,760$ 19,029,023$ 20,523,547$

34.87% 35.47% 39.31% 38.01%
*
Notes to the Schedule:

Assumption/ Benefit Golden
Driver Investment Method Change Change Handshake
Amortization period 30 years 20 years 20 years 5 years
Escalation rate:

Active plans

2.875%
to 2.8%

2.875%
to 2.8%
Inactive plans 0% 0% 0% 0%
Ramp up - - - - Ramp down - - - - 2021 CalPERS Experience Study
2021 CalPERS Experience Study, with ongoing improvements using 90 percent of Scale MP-2016
Asset valuation method:

Discount rate:

Overall pay growth:

Inflation:

Retirement age:

Mortality:

Amortization of unfunded actuarial accrued
liability:

Fair Value of Assets

6.9%

2.8%

2.3%
(Gain) / Loss
Source
Fiscal
year 2015 was the 1st year of implementation.

June 30, 2023
Entr
y Age Normal
Valuation date:

Actuarial cost method:

Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Safety Fire Plan
Actuarially determined contribution
Contributions in relation to actuarially
deemed contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered payroll
Miscellaneous Plan
Actuarially determined contribution
Contributions in relation to actuarially deemed
contributions
Contribution deficiency (excess)
Safety Police Plan
Actuarially determined contribution
Contributions in relation to actuarially
deemed contributions
Covered payroll
Contributions as a percentage of covered payroll
150
275
2020 2021 2022 2023 2024 2025
11,520,393$ 5,233,815$ 5,595,658$ 6,355,517$ 8,240,446$ 10,707,295$ (113,590,085) (5,233,815) (5,595,658) (6,355,517) (8,240,446) (10,707,295) (102,069,692)$ -$ -$ -$ -$ -$ 55,145,826$ 51,492,952$ 54,124,236$ 59,987,469$ 77,335,077$ 89,371,018$ 205.98% 10.16% 10.34% 10.59% 10.66% 11.98%
15,237,147$ 7,489,804$ 8,472,943$ 8,908,687$ 10,521,430$ 12,716,628$ (154,440,411) (7,489,804) (8,472,943) (8,908,687) (10,521,430) (12,716,628) (139,203,264)$ -$ -$ -$ -$ -$ 33,746,205$ 33,334,679$ 34,988,941$ 28,834,043$ 45,643,500$ 47,519,431$ 457.65% 22.47% 24.22% 30.90% 23.05% 26.76%
9,470,927$ 4,913,650$ 5,741,862$ 6,148,037$ 7,289,295$ 8,711,566$ (103,651,019) (4,913,650) (5,741,862) (6,148,037) (7,289,295) (8,711,566) (94,180,092)$ -$ -$ -$ -$ -$ 22,228,457$ 25,162,755$ 26,648,320$ 37,182,071$ 36,267,477$ 37,037,095$ 466.30% 19.53% 21.55% 16.53% 20.10% 23.52%
151
276
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Schedule of Changes in the Net OPEB Liability and Related Ratios - Last 10 Years* Measurement Period 2017 2018 2019 2020
Total OPEB Liability
Service cost 12,423,938$ 10,440,905$ 9,940,301$ 4,576,154$ Interest on the total OPEB liability 8,541,783 9,882,614 10,698,499 11,065,136 Actual and expected experience difference - - (31,315,151) - Changes in assumptions (37,838,070) (13,680,004) (90,154,275) (2,893,024) Benefit payments (4,213,032) (5,398,279) (6,094,869) (6,553,703) Net change in the total OPEB liability (21,085,381) 1,245,236 (106,925,495) 6,194,563 Total OPEB liability - beginning 289,394,278 268,308,897 269,554,133 162,628,638 Total OPEB liability - ending (a) 268,308,897 269,554,133 162,628,638 168,823,201 Plan Fiduciary Net Position (1)
Contribution - employer 4,213,032 5,398,279 6,108,661 146,570,084 Net investment income - - - 1,670,786 Benefit payments (4,213,032) (5,398,279) (6,094,869) (6,553,703) Administrative expense - - (13,792) (49,752) Net change in plan fiduciary net position - - - 141,637,415 Plan fiduciary net position - beginning - - - - Plan fiduciary net position - ending (b) - - - 141,637,415 Net OPEB liability/asset - ending (a) - (b) 268,308,897$ 269,554,133$ 162,628,638$ 27,185,786$ Covered-employee payroll 111,311,408$ 127,657,357$ 135,622,457$ 137,353,524$
Net OPEB liability as a percentage of covered-employee
payroll 241.04% 211.15% 119.91% 122.91%
* Fiscal year 2018 was the 1st year of implementation.

Notes to Schedule:
(1) The City opened a trust during fiscal year 2019-20, as such the presentation includes plan fiduciary net position, although no contributions were made to the trust during the measurement period ended June 30, 2019.

Changes in assumptions: The discount rate was 6.25 percent and same as prior year for the measurement period ended June 30, 2023.

Eligibility for Medicare assumption was changed based on recent plan experience. Mortality improvement scale was updated to Scale MP-2021.
152
277
2021 2022 2023 2024
4,643,850$ 3,606,416$ 3,705,592$ 4,392,255$ 11,460,588 10,129,002 10,517,945 11,889,228 (16,740,290) - 7,868,412 - 1,635,626 - 6,861,602 - (7,361,127) (8,008,479) (7,214,536) (8,184,816) (6,361,353) 5,726,939 21,739,015 8,096,667 168,823,201 162,461,848 168,188,787 189,927,802 162,461,848 168,188,787 189,927,802 198,024,469 1,485,734 6,642,354 13,100,303 7,695,646 38,924,113 (24,105,673) 9,791,404 18,237,279 (7,361,127) (8,008,479) (7,214,536) (8,184,816) (71,934) (65,240) (70,726) (88,905) 32,976,786 (25,537,038) 15,606,445 17,659,204 141,637,415 174,614,201 149,077,163 164,683,608 174,614,201 149,077,163 164,683,608 182,342,812 (12,152,353)$ 19,111,624$ 25,244,194$ 15,681,657$ 115,761,497$ 115,761,497$ 126,302,993$ 193,475,542$ 140.34% 145.29% 150.37% 102.35%
153
278
City of Ontario
Required Supplementary Information
For the year ended June 30, 2025
Schedule of OPEB Contributions - Last 10 Years*
2018 2019 2020 2021
Actuarially determined contribution 26,527,000$ 28,414,000$ 30,643,000$ 7,470,000$ Contribution in relation to the actuarially
determined contribution (5,398,279) (6,108,661) (146,570,084) (1,485,734) Contribution deficiency (excess) 21,128,721 22,305,339 (115,927,084) 5,984,266 Covered-employee payroll 127,657,357 $ 135,622,457 $ 142,599,181 $ 137,353,524 $ Contributions as a percentage of covered-
employee payroll -4.23% -4.50% -102.78% -1.08%
Methods and assumptions used to determine contributions:

Actuarial cost method Entr
y Age Normal
Amortization valuation method/period Level 1% of pay; Average 10-year fixed period for 2023/24 Inflation 2.50% per annum
Discount rate 6.25%
Medical trend
Mortality CalPERS 2000-2019 Experience Study
Mortality improvement
Notes to Schedule:
* Fiscal year 2018 was the 1st year of implementation.
(1) The City opened a trust during fiscal year 2019-20, as such the presentation includes plan fiduciary net position, although no contributions were made to the trust during the measurement period ended June 30, 2019.

Non-Medicare - 7.90% for 2026, decreasin
g to an ultimate rate of

3.45% in 2076
Medicare (Non-Kaiser) - 6.90% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 5.65% for 2026, decreasing to an ultimate rate of 3.45% in 2076
Post-retirement mortality projected fully generational with Scale MP-2021
Actuarial methods and assumptions used to set the actuarially determined contribution for fiscal year 2021 were from the June 30, 2019 actuarial valuation.
154
279
2022 2023 2024 2025
7,806,000$ 5,010,000$ 5,150,000$ 6,669,000$ (6,642,354) (13,100,303) (7,695,646) (1,984,379) 1,163,646 (8,090,303) (2,545,646) 4,684,621 115,761,497$ 126,302,993$ 227,284,736$ 217,430,834$
-5.74% -10.37% -3.39% -0.91%
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SUPPLEMENTARY

INFORMATION
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282

SUPPLEMENTARY

INFORMATION
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283
City of Ontario
Nonmajor Governmental Funds
Year Ended June 30, 2025
Special Revenue Funds:

Ontario City CouncilJanuary 20, 2026

Ontario City Council
January 20, 2026