Agenda packet — Ontario City Council, August 7, 2026

CITY OF ONTARIO
Special City Council/Housing Authority
Meeting
AUGUST
7, 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 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 before 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.

To comment by phone, please call (909) 256-2441 during the meeting.

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.

Per California Government Code section 54954.3(a)(3), every notice for a special meeting shall provide an opportunity for members of the public to directly address the legislative body concerning any item that has been described in the notice for the meeting before or during consideration of that item;
as such, p
ublic comments at a special meeting are strictly limited to items listed on the meeting agenda.

Remarks from those seated or standing in the back of the chamber will not permitted. All those CITY OF ONTARIO Special City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1 wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

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 special City Council and Housing Authority meeting begins with Public Comment at 10 :30 a.m.
i
mmediately followed by the Special Meeting. 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)

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

PUBLIC COMMENTS
10:30 A.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.

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 before 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.

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

1. RESOLUTIONS CALLING FOR THE PLACEMENT OF A GENERAL MEASURE ON THE BALLOT FOR THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION
ATTACHMENT:

Resolution_Calling_November_3__2026_General_Municipal_Election_on _1_2__General_Transactions_and_Use_Tax_Measure-RM.docx
ATTACHMENT:

Resolution_Setting_Argument-Rebuttal_Rules_and_Deadlines_- _November_3__2026_Gen._Mun._Election_-
_1_2__Supplemental_General_Transactions_and_Us_02_RESO_RM.docx The City Manager will go over all updated materials and correspondence received after the 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.

ADMINISTRATIVE REPORTS/DISCUSSION/ACTION

That the City Council adopt Resolutions calling for the placement of a general tax measure on the November 3, 2026 General Municipal Election.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, CALLING FOR THE PLACEMENT OF A GENERAL TAX MEASURE ON THE BALLOT FOR THE NOVEMBER 3, 2026

GENERAL MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED VOTERS OF AN

ORDINANCE TO ENACT A SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF ONE-HALF PERCENT (1/2%).

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, PROVIDING FOR

THE FILING OF DIRECT AND REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF WRITTEN ARGUMENTS REGARDING A CITY MEASURE TO BE SUBMITTED AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION.

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 Special City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3 Department: Management Services
Prepared By: Darlene M Sanchez
Staff Member Presenting: Scott Ochoa, City
Manager
Reviewed By: Jordan T Villwock
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 1
SUBJECT:

RESOLUTIONS CALLING FOR THE PLACEMENT OF A GENERAL MEASURE ON THE BALLOT FOR THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION

CITY OF ONTARIO
Agenda Report
August
7, 2026
SECTION:

ADMINISTRATIVE

REPORTS/DISCUSSION/ACTION

RECOMMENDATION:

That the City Council adopt Resolutions calling for the placement of a general tax measure on the November 3, 2026 General Municipal Election.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Pursue City's Goals and Objectives by Working with Other Governmental Agencies FISCAL IMPACT:

If approved by voters, the proposed one-half-percent transactions and use tax is estimated to generate approximately $32,500,000 annually in General Fund revenue. Collection is anticipated to begin April 1, 2027, subject to timely certiﬁcation of the election results and applicable State implementation requirements.

BACKGROUND & ANALYSIS:

The City of Ontario has made signiﬁcant investments in public services and infrastructure to accommodate recent growth and to improve the quality of life for residents. However, continued residential and commercial development is increasing the demand for public safety, transportation infrastructure, homelessness response, parks, recreation and other municipal services.

In November 2022, Ontario voters approved Measure Q, a one-percent transaction and use tax for general municipal purposes. Since its approval, Measure Q revenue has been incorporated into the City’s budget and Capital Improvement Program, supporting investments in public safety, infrastructure, community facilities, and other essential services throughout Ontario. The examples below highlight several signiﬁcant projects that have been made possible, in whole or in part, through Measure Q funding and provide context for the Council’s consideration of the proposed 2026 measure:

Measure Q Projects
The Ontario Sports Empire
is a multi-use sports and entertainment complex that, once complete, will be the largest of its kind on the West Coast. Supported in part by Measure Q, the project will provide premier sports, recreation, and entertainment opportunities while generating long-term 4 economic activity for the City. The ﬁrst major component of the complex, ONT Field, opened on April 2, 2026.

The Arena District

is transforming the area surrounding Toyota Arena into Ontario's premier mixed-use entertainment destination, combining residential, retail, dining, entertainment, and public gathering spaces into one walkable district. The ﬁrst phase includes four mixed-use buildings, approximately 64,000 square feet of commercial space, and 694 residential units, with completion anticipated by the end of 2027.

The Wellness Campus
transformed a former motel at 1522 W. Mission Boulevard into emergency interim housing, oﬃce space and supportive-service facilities for individuals experiencing homelessness or economic instability. The campus provides temporary shelter, case management, workforce and educational resources, behavioral health services, and connections to food and health care services. Since opening, the campus has provided shelter to 52 individuals, helped 10 participants secure permanent housing, increased income for 23 individuals, and connected dozens more to transportation, medical care, counseling, and substance use treatment.

Street Improvements
supported by Measure Q are improving safety, mobility and infrastructure throughout the City. This work includes the replacement of the historic rock curb along Euclid Avenue with a new rock curb and gutter that preserves the corridor’s historic character while meeting modern infrastructure standards.

Public Safety
investments supported by Measure Q include the new Fire Station 1 and the Ontario Police Department’s Real Time Information Center (RTIC). Fire Station 1 expands the Ontario Fire Department's ability to serve the City's growing downtown area and improve emergency response capabilities. RTIC integrates live camera feeds, law enforcement databases, and drone technology to improve situational awareness, emergency response, and crime prevention.

Proposed 2026 Measure
The investments described above demonstrate how Measure Q has enabled the City to deliver critical infrastructure, enhance public safety, expand community services, and invest in Ontario's future. As the City continues to grow, however, additional operating and capital needs have been identified that extend beyond existing funding commitments.

The proposed 2026 measure is separate from Measure Q and, if approved, would provide an additional one-half-percent transactions and use tax for general municipal purposes. If approved, the measure is estimated to generate approximately $32,500,000 annually. As a general tax, the revenue would be deposited into the City's General Fund and could be used for any lawful municipal purpose, including public safety, street and infrastructure maintenance, homelessness response, parks and recreation, and other essential City services.

Adoption of the attached Resolutions would not impose the tax, but would place the measure before Ontario voters at the November 3, 2026 General Municipal Election. If the City Council places the measure on the ballot, the City Attorney will prepare an impartial analysis explaining the operation and eﬀect of the measure. Eligible individuals and organizations may submit arguments for or against the measure for possible inclusion in the Sample Ballot/Voter Information Guide. 5 6

RESOLUTION NO. ________

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

CALIFORNIA, CALLING FOR THE PLACEMENT OF A GENERAL TAX
MEASURE ON THE BALLOT FOR THE NOVEMBER 3, 2026 GENERAL

MUNICIPAL ELECTION FOR THE SUBMISSION TO THE QUALIFIED

VOTERS OF AN ORDINANCE TO ENACT A SUPPLEMENTAL GENERAL

TRANSACTIONS AND USE TAX (SALES TAX) AT THE RATE OF ONE- HALF PERCENT (1/2%).

WHEREAS, the City of Ontario (“City”) is authorized to levy a Transactions and Use Tax (“TUT”) for general purposes pursuant to California Revenue and Taxation Code section 7285.9, subject to approval by a majority vote of the electorate pursuant to Article XIIIC, section 2 of the California Constitution (“Proposition 218”); and

WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place local measures on the ballot to be considered at a Municipal Election; and

WHEREAS, the City Council would like to submit to the voters at the November 3, 2026 General Municipal Election a measure establish ing a supplemental general TUT of one-half percent (1/2%) on the sale and/or use of all tangible personal property sold at retail in the City until it is repealed by voters, as more specifically set forth in the attached proposed ordinance adding Chapter 13 to Title 3 of the City’s Municipal Code; and

WHEREAS, the one-half percent (1/2%) TUT is a general tax, the revenue of which will be placed in the City’s general fund and will be used to pay for general City services; and

WHEREAS, on November 6, 1996, the voters of the State of California approved Proposition 218, an amendment to the State Constitution which requires that all general taxes which are imposed, extended or increased must be submitted to the electorate and approved by a majority vote of the qualified electors voting in the election; and

WHEREAS, pursuant to Proposition 2 18 (California Constitution, Article XIIIC, section 2(b)), the general rule is that any local election for the approval of an increase to a general tax must be consolidated with a regularly scheduled general election for members of the governing body of the local government; and

WHEREAS, the next regularly scheduled general election at which City Council members will be elected is November 3, 2026; and

WHEREAS, pursuant to Revenue and Taxation Code section 7285.9, a two-thirds (2/3) vote of all members o f the City Council is required to place the Measure on the November 3, 2026 ballot; and

7 WHEREAS, the ordinance to be considered by the qualified voters and the terms of approval, collection and use of the general TUT are described and provided for in the ordinance/measure attached hereto as Exhibit “A” (the “Measure”) and by this reference made an operative part hereof, in accordance with all applicable laws.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ONTARIO:

SECTION 1. Incorporation of Recitals. The foregoing recitals are true and correct and are hereby incorporated and made an operative part of this Resolution.

SECTION 2. Submission of Ballot Measure. Pursuant to California Elections Code section 9222, Revenue and Taxation Code section 7285.9 and any other applicable requirements of the laws of the State of California relating to the City, the City Council, by a two-thirds (2/3) vote of all members, hereby orders the Measure to be submitted to the voters of the City at the General Municipal Election to be held on Tuesday, November 3, 2026.

SECTION 3. The City Council, pursuant to California Elections Code section 9222, hereby orders that the ballot question for the Measure shall be presented and printed upon the ballot submitted to the qualified voters in the manner and form set forth in this Section 3. On the ballot to be submitted to the qualified voters at the General Municipal Election to be held on Tuesday, November 3, 2026 , in addition to any other matters required by law, there shall be printed substantially the following ballot question:
“To maintain fire, paramedic, police, 911 response, anti -gang programs; respond to property crimes, thefts, burglaries; clean and maintain public areas; repair streets/potholes; address homelessness; increase access to affordable housing for seniors/families/individuals; retain/attract local businesses; for general City services; shall the measure establishing a half -cent sales tax providing approximately $32,500,000 annually until ended by voters; requiring audits, spending disclosure, funds locally controlled, be adopted?”
YES
NO

SECTION 4. Conduct of Election. The City Clerk is authorized, instructed, and directed to procure and furnish any and all official ballots, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawfully conduct the election. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections.

SECTION 5. Pursuant to Elections Code section 9280, the City Council hereby directs the City Clerk to transmit a copy of the Measure to the City Attorney. The City Attorney shall prepare an impartial analysis of the Measure, not to exceed 500 words in length, showing the effect of the Measure on the existing law and the operation of the Measure, and transmit such impartial analys is to the City Clerk not later than Monday August 17, 2026.

8 The impartial analysis shall include a statement indicating whether the Measure was placed on the ballot by a petition signed by the requisite number of voters o r by the City Council. In the event the entire text of the Measure is not printed on the ballot, nor in the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10 -font bold type, the following : “The above statement is an impartial analysis of Ordinance or Measure _____. If you desire a copy of the ordinance or measure, please call the Office of the City Clerk at: (909) 395-2000 and a copy will be mailed at no cost to you.”

SECTION 6. Notice of the election is hereby given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in time, form and manner as required by law.

SECTION 7. Placement on the Ballot. The full text of the Measure shall not be printed in the voter information guide, and a statement shall be printed on the ballot pursuant to Elections Code section 9223 advising voters that they may obtain a copy of this Resolution and the Measure, at no cost, upon request made to the City Clerk.

SECTION 8. Filing with County. The City Clerk shall, not later than the 88th day prior to the General Municipal Election to be held on Tuesday, November 3, 2026, file with the Board of Supervisors and the Registrar of Voters of the County of San Bernardino, State of California, a certified copy of this Resolution.

SECTION 9. Public Examination. Pursuant to Elections Code section 9295, this Measure will be available for public examination for no fewer than ten (10) calendar days.

The City Clerk shall post notice in the Clerk’s office of the specific dates that the examination period will run.

SECTION 10. The City Council hereby finds and determines that the Measure relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5).

SECTION 11. Severability. The provisions of this Resolution are severable and if any provision of this Resolution is held invalid, that provision shall be severed from the Resolution and the remainder of this Resolution shall continue in full force and effect, and not be affected by such invalidity.

SECTION 12. This Resolution shall become effective upon its adoption.

SECTION 13. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this _th day of August 2026.

_____________________________________
PAUL S. LEON, MAYOR
9 ATTEST:

____________________________________

SHEILA MAUTZ, CITY CLERK

APPROVED AS TO FORM:

____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY

10 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. 2026- was duly passed and adopted by the City Council of the City of Ontario at their special meeting held August _, 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. 2026- duly passed and adopted by the Ontario City Council at their special meeting held August _, 2026.

_____________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

11 12

Exhibit “A”
Transactions and Use Tax Ordinance

[attached behind this page]
13 ORDINANCE NO. ____

AN ORDINANCE OF THE PEOPLE OF THE CITY OF ONTARIO,
CALIFORNIA, ADDING CHAPTER 13 TO TITLE 3 (“FINANCE”) OF THE ONTARIO MUNICIPAL CODE TO ENACT A ONE-HALF PERCENT (1/2%)

SUPPLEMENTAL GENERAL TRANSACTIONS AND USE TAX (SALES

TAX) TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION.

WHEREAS, pursuant to California Revenue and Taxation Code section 7285.9 the City of Ontario (“City”) is authorized to levy a Transactions and Use Tax for general purposes, subject to majority voter approval; and

WHEREAS, the People of the City desire add Chapter 13 to Title 3 of the Ontario Municipal Code establishing a Supplemental General Transactions and Use Tax (“TUT”) until ended by voters, on the sale and/or use of all tangible personal property sold at retail in the City, at a rate of one-half percent (1/2%).

NOW, THEREFORE, THE PEOPLE OF THE CITY OF ONTARIO DO HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Title and Text. This Ordinance shall be known as the “Supplemental Transactions and Use Tax ”, the full text of w hich is set forth in Attachment “1”, attached hereto and incorporated herein by reference.

SECTION 2. Approval by the City Council. Pursuant to California Government Code section 53724 and Revenue and Taxation Code section 7285.9, this Ordinance was duly approved for placement on the ballot by a minimum two-thirds (2/3) supermajority of all members of the City Council on August _, 2026.

SECTION 3. Approval by the Voters. Pursuant to California Elections Code section 9217, this Ordinance shall be deemed adopted and take effect only if approved by a majority of the eligible voters of the City of Ontario voting at the General Municipal Election of November 3, 2026.

SECTION 4. Operative Date. “Operative Date” for the Transactions and Use Tax means the first day of the first calendar quarter commencing more than 110 days after the date of the election for this Ordinance.

SECTION 5. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

14 I hereby certify that the Ontario Supplemental Transactions and Use Tax Ordinance was PASSED, APPROVED, AND ADOPTED by the People of the City of Ontario on the 3rd day of November, 2026.

PASSED, APPROVED, AND ADOPTED this 3rd day of November 2026.

_____________________________________
PAUL S. LEON, MAYOR

ATTEST:

____________________________________

SHEILA MAUTZ, CITY CLERK

APPROVED AS TO FORM:

____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY

15 16

Chapter 13 – SUPPLEMENTAL TRANSACTIONS AND USE TAX

Sections:
3-13.01 - Title.
3-13.02 - Purpose.
3-13.03 - Contract With State.
3-13.04 - Transactions Tax Rate.
3-13.05 - Place of Sale.
3-13.06 - Use Tax Rate.
3-13.07 - Adoption of Provisions of State Law.
3-13.08 - Limitations on Adoption of State Law and Collection of Use Taxes. 3-13.09 - Permit Not Required.
3-13.10 - Exemptions and Exclusions.
3-13.11 - Amendments.
3-13.12 - Enjoining Collection Forbidden.
3-13.13 - Duration of Tax

Sections:

3-13.01 – Title.

This chapter shall be known as the “Supplemental Transactions and Use Tax Ordinance”.

The City of Ontario hereinafter shall be called “City.” This ordinance shall be applicable in the incorporated territory of the City.

3-13.02 – Purpose.

This chapter is adopted to achieve the following, among other purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes:

A. To impose a retail transactions and use tax in accordance with the provisions of Part

1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose.

B. To adopt a retail transactions and use tax ordinance that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code.

C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires t he least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes.
17 D. To adopt a retail trans actions and use tax ordinance that can be administered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record -keeping upon persons subject to taxation under the provisions of this chapter.

3-13.03 - Contract With State.

Prior to the operative date, the City shall contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this transactions and use tax ordinance; provided, that if the City shall not have contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

3-13.04 - Transactions Tax Rate.

For the priv ilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the City at the rate of one-half percent (1/2%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in said territory on and after the operative date of this chapter.

3-13.05 - Place of Sale.

For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out -of-state destination. The gross receipts from s uch sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration.

3-13.06 - Use Tax Rate.

An excise tax is hereby imposed on the storage, use or other consumption in the City of tangible personal property purchased from any retailer on and after the operative date of this ordinance for storage, use or other consumption in said territory at the rate of one- half percent (1/2%) of the sales price of the property. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

18 3-13.07 - Adoption of Provisions of State Law.

Except as otherwise provided in this chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this ordinance as though fully set forth herein.

3-13.08 - Limitations on Adoption of State Law and Collection of Use Taxes.

In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code:

A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefor. However, the substitution shall not be made when:

1. The word “State” is used as a part of the t itle of the State Controller, State Treasurer, California Victim Compensation Board , California Department of Tax and Fee Administration , State Treasury, or the Constitution of the State of California;

2. The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration , in performing the functions incident to the administration or operation of this chapter.

3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to:

a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or;

b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code.

4. In reference to Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code.

B. The word “city” shall be substituted for the word “state” in the phrase “retailer engaged in business in this state” in Section 6203 of the Revenue and Taxation Code and in the definition of that phrase in Section 6203.

19 1. “A retailer engaged in business in the City” shall also include any retailer that , in the preceding calendar year or the current calendar year, has total combined sales of tangible personal property in this state or for delivery in the State by the retailer and all persons related to the retailer that exceeds five hundred thousand doll ars ($500,000). For purposes of this section, a person is related to another person if both persons are related to each other pursuant to Section 267(b) of Title 26 of the United States Code and the regulations thereunder.

3-13.09 - Permit not Required.

If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this Ordinance.

3-13.10 - Exemptions and Exclusions.

A. There shall be excluded from the measure of the transactions tax and the use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax.

B. There are exempted from the computation of the amount of transactions tax the gross receipts from:

1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government.

2. Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment t o a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied:

a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Sectio n 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and

b. With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address.

20 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contrac t entered into prior to the operative date of this chapter.

4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date of this chapter.

5. For the purposes of subparagraphs (3) and (4) of this subsection, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

C. There are exempted from the use tax imposed by this ordinance, the storage, use or other consumption in this City of tangible personal property:

1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance.

2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California.

3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date of this chapter.

4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date of this chapter.

5. For the purposes of subparagraphs (3) and (4) of this subsection, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised.

6. Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but no t limited to, soliciting or receiving the order, either directly or indirectly, at a place of 21 business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer.

7. “A retailer engaged in business in the City” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City.

D. Any person subject to use tax under this ordinance may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for, a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax.

3-13.11 - Amendments.

All amendments subsequent to the effective date of this ordinance to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Ordinance, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Ordinance.

3-13.12 - Enjoining Collection Forbidden.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action or proceeding in any court against the State or the City, or against any officer of the State or the City, to prevent or enjoin the collection under this chapter, or Part 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected.

3-13.13 – Duration of Tax.

The tax imposed by this chapter shall continue until this chapter is repealed.

22 RESOLUTION NO. ______

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

CALIFORNIA, PROVIDING FOR THE FILING OF DIRECT AND

REBUTTAL ARGUMENTS AND SETTING RULES FOR THE FILING OF

WRITTEN ARGUMENTS REGARDING A C ITY MEASURE TO BE
SUBMITTED AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL
ELECTION.

WHEREAS, a General Municipal Election is to be held in the City of Ontario, California on November 3, 2026 , at which there will be submit ted to the voters the following measure:

“To maintain fire, paramedic, police, 911 response, anti -gang programs; respond to property crimes, thefts, burglaries; clean and maintain public areas; repair streets/potholes; address homelessness; increase access to affordable housing for seniors/families/individuals; retain/attract local businesses; for general City services; shall the measure establishing a half-cent sales tax providing approximately $32,500,000 annually until ended by voters; requiring audits, spending disclosure, funds locally controlled, be adopted?”

Yes

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1. Direct Arguments. That the City Council authorizes (i) the City Council or any member(s) of the City Council, (ii) a ny individual voter eligible to vote on the above measure, (iii) a bona fide association of such citizens or (iv) any combination of voters and associations , to file a written argument in favor of or against the City measure, accompanied by the printed nam e(s) and signature(s) of the author(s) submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California , and to change the argument until and including the date fixed below by the City Clerk , after which no arguments for or against the City measure may be submitted to the City Clerk.

The deadline to submit direct arguments for or against the City Measure pursuant to this Resolution is Monday August 17, 2026. Each argument shall not exceed 300 words and shall be filed with the City Clerk, signed, and include the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signa ture of at least one of its principal officers who is the author of the argument.

SECTION 2. Rebuttal Arguments. Pursuant to Section 9285 of the Elections Code of the State of California, when the City Clerk has selected the primary arguments for and against the City Measure which will be printed and distributed to the voters, the Clerk shall send copies of the primary argument in favor of the Measure to the authors of 23 the primary argument against, and copies of the primary argument against to the authors of the primary argument in favor. The authors or persons designated by them may prepare and submit rebuttal arguments not exceeding 250 words. The rebuttal arguments shall be filed with the City Clerk not later than Friday, August 21, 2026 . Rebuttal arguments shall be printed in the same manner as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut.

SECTION 3. November 3, 2026 Election. That the provisions of Sections 1 and 2 shall apply only to the election to be held on November 3, 2026, and shall then be repealed.

SECTION 4. Certification. T he City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.

PASSED, APPROVED, AND ADOPTED this _th day of August 2026.

_____________________________________
PAUL S. LEON, MAYOR

ATTEST:

____________________________________

SHEILA MAUTZ, CITY CLERK

APPROVED AS TO FORM:

____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY

24 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

____________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

The foregoing is the original of Resolution No. 2026- duly passed and adopted by the Ontario City Council at their special meeting held August _, 2026.

_____________________________________

SHEILA MAUTZ, CITY CLERK

(SEAL)

Ontario City CouncilAugust 7, 2026

Ontario City Council
August 7, 2026