Agenda packet — Rancho Cucamonga City Council, July 16, 2025 (part 11 of 11)

____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 9 Fiscal Year 2025/26
Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Personnel Services: This item includes the costs attributed to the salaries of all full -time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees.

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Utilities: This item includes the costs to furnish electricity and telephone services , as required, for the operation and maintenance of the street lights, traffic signals, and appurtenant facilities throughout the District.

Assessment Administration: This item includes the cost to all particular departments and staff of the City, and consultants for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings.

General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also includes an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure.

Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include installation of safety lights and other large improvements.

Transfer Out - General City Street Lights Fund: This item includes the cost for the replacement and installation of District owned street lights. These costs are incurred in the General City Street Lights Fund and reimbursed by the District.

Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees.

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 10 Fiscal Year 2025/26

METHOD OF ASSESSMENT
Overview
Pursuant to the 1972 Act and Article XIII D, all parcels that have a special benefit conferred upon them as a result of the maintenance and operation of improvements and services shall be identified, and the proportionate special benefit derived by each identified parcel shall be determined in relationship to the entire costs of the maintenance and operation of improvements. The 1972 Act, permits the establishment of assessment districts for the purpose of providing certain public improvements which include the public lighting facilities, including traffic signals.

Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefit to be received by each such lot or parcel from the improvements.

The determination of whether or not a lot or parcel will benefit from the improvements shall be made pursuant to the Improvement Act of 1911 (Division 7 commencing with Section 5000) [of the Streets and Highways Code, State of California].

Section 22547 of the 1972 Act also permits the designation of zones of benefit within any individual assessment district if "by reasons or variations in the nature, location, and extent of the improvements, the various areas will receive different degrees of benefit fr om the improvement".

Article XIII D, Section 4(a) of the California Constitution limits the amount of any assessment to the proportional special benefit conferred on the property. Article XIII D also provides that publicly owned properties must be assessed unless there is clear and convincing evidence that those properties receive no special benefit from the assessment. Exempted from the assessment would be the areas of public streets, public avenues, public lanes, public roads, public drives, public courts, public alleys, public easements and rights -of-ways, public greenbelts and public parkways.

The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed.

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 11 Fiscal Year 2025/26
Special Benefit
The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by:

• improving the livability, safety, appearance, and desirability for properties within the boundaries of the District, and
• ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District.

The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance.

General Benefit
In addition to the special benefits received by parcels within the District, there are derivative general benefits that are conferred on parcels outside the boundaries of the District which include:

• the safety and visual enhancement of the area to persons or vehicles that may travel through the District

However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed.

Method of Assessment Spread
Each of the parcels within the District is deemed to receive special benefit from the improvements. Each parcel that has a special benefit conferred upon it as a result of the maintenance and operation of improvements are identified and the proportionate special benefit derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements.

When the District was formed, Article XIII D and Proposition 218 had not yet been passed.

Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 12 Fiscal Year 2025/26
property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed.

To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The EBU method of apportionment uses the single-family home as the basic unit of assessment.

A single-family home equals one Equivalent Dwelling Unit ( EBU). Every other land- use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EBU assignment.

Land-Use Equivalent Dwelling Units

Property Type (County Use Code) EBU Value Multiplier
Single Family Residential 1.00 Parcel
Multi-Family Residential 0.50 Unit
Non-Residential 2. 00 Acre

The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EBU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EBU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment.

The following table summarizes the Fiscal Year 2025/26 maximum allowable assessment rates for the District:

Property Type (County Use Code)
Maximum
Allowable
Assessment
Rate per EBU
Actual
Asessment Rate
per EBU
Total
Units/Acres Total EBUs
Single Family Residential $28.96 $28.96 2,652.00 2,652.00 Multi-Family Residential 28.96 28.96 5,250.00 2,625.00
Non-Residential 28.96 28.96 234.39 468.78

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 13 Fiscal Year 2025/26
The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report.

ASSESSMENT DIAGRAM
An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the Assessor of the County San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer's Report.

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 14 Fiscal Year 2025/26

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____________________________________________________________________________ Street Lighting Maintenance District No. 4 – City of Rancho Cucamonga 15 Fiscal Year 2025/26

ASSESSMENT ROLL AND ANNEXATIONS
Assessment Roll
The assessment roll is a listing of the assessment for Fiscal Year 202 5/26 apportioned to each lot or parcel, as shown on the last equalized roll of the Assessor of the County of San Bernardino. The following table summarizes the Fiscal Year 2025/26 actual assessments for the District:

Property Type (County Use Code)
Actual
Assessment
Rate per EBU
Total
Units/Acres Total EBUs Total Assessment
Single Family Residential $28.96 2,652.00 2,652.00 $76,801.92 Multi-Family Residential 28.96 5,250.00 2,625.00 76,020.00 Non-Residential 28.96 234.39 468.78 13,575.87
Totals 8,136.39 5,745.78 $166,397.79

A copy of the full assessment roll is available for review in the City Clerk's office.

Annexations
There are no effective annexations for Fiscal Year 2025/26.

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ATTACHMENT 14

Annual Engineer’s Report
Fiscal Year 2025/26

City of Rancho Cucamonga
Street Lighting Maintenance District No. 5
(Caryn Planned Community)

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CITY OF RANCHO CUCAMONGA
STREET LIGHTING MAINTENANCE DISTRICT NO. 5
(CARYN PLANNED COMMUNITY)
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
Phone: 909.477.2700
Fax: 909.477.2845

CITY COUNCIL
L. Dennis Michael, Mayor
Lynne B. Kennedy, Mayor Pro Tem
Ryan A. Hutchison, Council Member
Kristine D. Scott, Council Member
Ashley N. Stickler, Council Member

CITY STAFF
John R. Gillison, City Manager
Elisa Cox, Assistant City Manager
Jason C. Welday, Director of Engineering Services/City Engineer Maritza Martinez, Public Works Services Director
Jevin Kaye, Finance Director

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TABLE OF CONTENTS

ENGINEER’S LETTER 1
INTRODUCTION 3
Reason for Assessment 3
Process for Annual Assessment 3
PLANS AND SPECIFICATIONS 4
Description of the Boundaries of the District 4
Description of Improvements and Services 4
Map of Improvements 5
ESTIMATE OF COSTS 7
District Budget 7
Definitions of Budget Items 9
METHOD OF ASSESSMENT 10
Overview 10
Special Benefit 11
General Benefit 11
Method of Assessment Spread 11
ASSESSMENT DIAGRAM 13
ASSESSMENT ROLL AND ANNEXATIONS 15
Assessment Roll 15
Annexations 15

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 1 Fiscal Year 2025/26
ENGINEER’S LETTER
WHEREAS, on June 4, 2025, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2025-032, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 5 (Caryn Planned Community) (the “District”); and

WHEREAS, the Resolution Initiating Proceedings directed the City Engineer to prepare and file an Annual Engineer’s Report for Fiscal Year 2025/26 pursuant to the requirements of the 1972 Act. The Annual Engineer’s Report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the maintenance, operations and servicing of the improvements for the District for the referenced fiscal year, a diagram for the District, showing the area and properties proposed to be assessed, and an assessment of the estimated costs of the maintenance, operations and servicing of the improvements, assessing the net amount upon all assessable lots and/or parcels within the District in proportion to the special benefit received; and

NOW THEREFORE, the following assessment is proposed to be authorized in order to pay for the acquisition of street lights, the installation of Light Emitting Diode (LED) street lighting, and estimated costs of maintenance, operation and servicing of the improvements to be paid by the assessable real property within the boundaries of the District in proportion to the special benefit received. The following table summarizes the proposed assessment.

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance 46,160
Transfer Out 9, 560
Total Expenditures Budget 55,720
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 44,150 A
nticipated Prior Year Delinquencies Collection 490
Subtotal - Taxes 44,640
Transfer In - General Fund 11,080
Total Revenues Budget 55,720
Contribution to/(Use of) Fund Balance -$
Total District EBU Count 1,276.00
Actual Assessment per EBU 34.60$
Maximum Allowable Assessment per EBU 34.60$

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 2 Fiscal Year 2025/26
In making the assessments contained herein pursuant to the 1972 Act:

1. I have identified all parcels which will have a special benefit conferred upon them from the improvement described in the Special Benefit Section of this Annual Engineer’s Report (the “Specially Benefited Parcels”). For particulars as to the identification of said parcels, reference is made to the Assessment Diagram, a copy of which is included in this Annual Engineer’s Report.

2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation:

a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entiret y of the maintenance costs of the improvements;

b. No assessment has been imposed on any Specially Benefi ted Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and

c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report , and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law.

07/16/25

Jason C. Welday
Director of Engineering Services/City Engineer
Date

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 3 Fiscal Year 2025/26

INTRODUCTION
Reason for Assessment
Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to:

Provide for the maintenance and servicing of the improvements described in this Engineer’s Report. Maintenance may include but is not limited to, all of the following: the upkeep, repair, removal or replacement of all or any part of any improvement. Servicing means the furnishing of electricity, gas or other illuminating energy for the lighting or appurtenant facilities. This shall also include material, vehicle, equipment, capital improvements, the installation of LED street lighting, and administrative costs associated with the annual administration and operation of the District.

Process for Annual Assessment
The City cannot levy and collect annual assessments within the District without complying with the procedures specified in the 1972 Act. On an annual basis, an Engineer’s Report must be prepared which contains a full and detailed description of the improvements, the boundaries of the District and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.

The City Council must also adopt a resolution of intention which:
• Declares the intention of the City Council to levy and collect assessments within the District for the fiscal year stated therein.
• Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements.
• Refers to the District by its distinctive designation and indicate the general location of the District.
• Refers to the Engineer’s Report , on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the D istrict and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the District.
• Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment.
• States whether the assessment is proposed to increase from the previous year.

If the assessments are to be levied in the same or lesser amounts than the maximum assessment amount approved, the City Clerk shall give notice by causing the resolution of intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 4 Fiscal Year 2025/26
During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment.

The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment.

If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to express their support for, o r opposition to, the proposed assessment or increase in such assessment.

PLANS AND SPECIFICATIONS
The District provides for the administration, maintenance, operations, and servicing of various improvements located within the public right -of-way and dedicated easements within the boundaries of the District.

Description of the Boundaries of the District
The District is located in the City of Rancho Cucamonga. The boundaries of the District are generally described as that area located north of the 210 Freeway, south of Banyan St, west of Rochester Ave and east of Milliken Ave, also known as the Caryn Planned Community. The boundaries also include Tract No. 13835 east of Rochester Ave and Tracts No. 13748, 13857 and 13858 west of Milliken Ave.

Reference is also made to the Assessment Diagram included in this Report.

Description of Improvements and Services
The improvements are the maintenance and servicing of street lights, traffic signals and appurtenant facilities throughout the District. The maintenance and servicing includes, but is not limited to, furnishing electric current for public lighting facilities including street lights and traffic signals, and associated appurtenant facilities. Services include personnel, materials, contracting services, utilities, and all necessary costs associated with the maintenance, replacement and repair required to keep the improvements in operational and satisfactory condition. In addition, it is the City's intention to continue to use cost effective materials, in order to lower expenses of the District. In Fiscal Year 2017/18, the acquisition by the City of the street lights and installation of LED street lighting specially benefiting the properties within the District has been added to the improvements.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 5 Fiscal Year 2025/26
Map of Improvements
The following page shows the map of street light and traffic signal improvements to be maintained using District funds.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 6 Fiscal Year 2025/26

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 7 Fiscal Year 2025/26

ESTIMATE OF COSTS
The estimated costs of administration, maintenance, operations, and servicing the improvements as described in the Plans and Specifications are summarized below. Each year, as part of the D istrict levy calculation process, the costs and expenses are reviewed and the annual costs are projected for the following fiscal year.

District Budget

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance:

Operations and Maintenance:

Contract Services 1,770
Electric Utilities 37, 174
Assessment Administration 4,570
Admin./General Overhead 2,646
Subtotal - Operations and Maintenance 46,160
Transfer Out - General Street Lights Fund 9,560
Total Expenditures Budget 55,720$

Fiscal Year
2025/26 Budget
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 44,150$ Anticipated Prior Year Delinquencies Collection 490
Subtotal - Taxes 44,640
Transfer In
Transfer In - General Fund 11,080
Total Revenues Budget 55,720
Contribution to/(Use of) Fund Balance -$
Total Gross Estimated Assessments 44,149.60$
Total District EBU Count 1,276.00
Actual Assessment per EBU - Fiscal Year 2025/26 34.60$
Maximum Allowable Assessment per EBU - Fiscal Year 2025/26 34.60$

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 8 Fiscal Year 2025/26

The maximum allowable assessment per Equivalent Benefit Unit ( EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EB U will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218.

It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County, whichever is later. The reserve balance information for the District is as follows:

Operating Reserve
Estimated Reserve Fund Balance, June 30, 2025 (68,001)$ Contribution to/(Use of) Reserve - Fiscal Year 2025/26 - Estimated Reserve Fund Balance, June 30, 2026 (68,001)$

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 9 Fiscal Year 2025/26
Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Debt Service: This item includes the repayment of interest and principal to the City Capital Reserve Fund for the acquisition of street lights and installation of LED street lighting within the District. In Fiscal Year 2023/24, the debt service has been suspended due to the structural operating deficit and will be routinely monitored.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 10 Fiscal Year 2025/26
Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees.

Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states:

The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 11 Fiscal Year 2025/26
the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed.

Special Benefit
The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by:

• the safety and visual enhancement of the area to persons or vehicles that may travel through the District

However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 12 Fiscal Year 2025/26
derived by each identified parcel is determined in relationship to the entire costs of the maintenance and operation of the improvements.

When the District was formed, Article XIII D and Proposition 218 had not yet been passed.

Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed.

A single-family home equals one EBU . The following table provides the weighting factors applied by land-use types, as assigned by County use code, to determine each parcel's EB U assignment.

Land-Use Equivalent Dwelling Units

Property Type (County Use Code) EBU Value M ultiplier
Single Family Residential 1.00 Parcel

The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments, unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EB U assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the E BU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment.

The following table summarizes the Fiscal Year 2025/26 maximum allowable assessment rates for the District:

Property Type (County Use Code)
Maximum
Allowable
Assessment
Rate per EBU
Actual
Asessment Rate
per EBU
Total
Units/Acres Total EBUs
Single Family Residential $34.60 $34.60 1,276.00 1,276.00

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 13 Fiscal Year 2025/26
The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report.

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 14 Fiscal Year 2025/26

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____________________________________________________________________________ Street Lighting Maintenance District No. 5 – City of Rancho Cucamonga 15 Fiscal Year 2025/26

Property Type (County Use Code)
Actual
Assessment
Ra
te per EBU
Total
Units/Acres Total EBUs Total Assessment
Single Family Residential $34.60 1, 276.00 1,276.00 $44,149.60 Totals 1,276.00 1,276.00 $44,149.60

A copy of the full assessment roll is available for review in the City Clerk's office.

Annexations
There are no effective annexations for Fiscal Year 2025/26.

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ATTACHMENT 15

Annual Engineer’s Report
Fiscal Year 2025/26

City of Rancho Cucamonga
Street Lighting Maintenance District No. 6
(Commercial Industrial)

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CITY OF RANCHO CUCAMONGA
STREET LIGHTING MAINTENANCE DISTRICT NO. 6
(COMMERCIAL INDUSTRIAL)
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
Phone: 909.477.2700
Fax: 909.477.2845

CITY COUNCIL
L. Dennis Michael, Mayor
Lynne B. Kennedy, Mayor Pro Tem
Ryan A. Hutchison, Council Member
Kristine D. Scott, Council Member
Ashley N. Stickler, Council Member

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TABLE OF CONTENTS

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 1 Fiscal Year 2025/26
ENGINEER’S LETTER
WHEREAS, on June 4, 2025, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2025-032, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 6 (Commercial Industrial) (the “District”); and

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance 73,839$
Transfer Out 14,980
Total Expenditures Budget 88,819
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 132,010 Anticipated Prior Year Delinquencies Collection 1,610
Subtotal - Taxes 133,620
Transfer In - CFD Empire Lakes 270
Transfer In - CFD Street Lighting Services 8,550
Total Revenues Budget 142,440
Contribution to/(Use of) Fund Balance 53,621$
Total District EBU Count 2,568.10
Actual Assessment per EBU 51.40$
Maximum Allowable Assessment per EBU 51.40$

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 2 Fiscal Year 2025/26
In making the assessments contained herein pursuant to the 1972 Act:

2. I have evaluated the costs and expenses of the improvem ents upon the Specially Benefited Parcels. In making such evaluation:

a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entiret y of the maintenance costs of the improvements;

b. No assessment has been imposed on any Specially Benefi ted Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and

c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law.

07/16/25

Jason C. Welday
Director of Engineering Services/City Engineer
Date

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 3 Fiscal Year 2025/26

INTRODUCTION
Reason for Assessment
Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to:

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 4 Fiscal Year 2025/26
During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment.

The City Council, upon conclusion of the public hearing, must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the assessment.

If the assessment to be levied exceeds the maximum assessment amount previously approved, the City must comply with the procedures specified in Article XIII D and Proposition 218. The voters in the State of California in November 1996 added Article XIII D to the California Constitution imposing, among other requirements, the necessity for the City to conduct an assessment ballot procedure to enable the owners of each property on which assessments are proposed to be enacted or increased, the opportunity to, express their support for, or opposition to the proposed assessment or increase in such assessment.

Description of the Boundaries of the District
The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as the commercial and industrial area of the City which is generally bounded by Foothill Blvd on the north, 4th St on the south, East Ave on the east and Grove Ave on the west.

Reference is also made to the Assessment Diagram included in this Report.

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 5 Fiscal Year 2025/26
Map of Improvements
The following page shows the map of street light and traffic signal improvements to be maintained using District funds.

Page 1526 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 6 Fiscal Year 2025/26

Page 1527 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 7 Fiscal Year 2025/26

District Budget

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance:

Contract Services 2,780$
Electric Utilities 64,393
Assessment Administration 4,030
Admin./General Overhead 2,636
Subtotal - Operations and Maintenance 73,839
Transfer Out - General Street Lights Fund 14,980
Total Expenditures Budget 88,819$

Page 1528 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 8 Fiscal Year 2025/26
Fiscal Year
2025/26 Budget
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 132,010$ Anticipated Prior Year Delinquencies Collection 1,610
Subtotal - Taxes 133,620
Transfer In:

Transfer In - CFD Empire Lakes 270
Transfer In - CFD Street Lighting Services 8,550
Subtotal - Transfer In: 8,820
Total Revenues Budget 142,440
Contribution to/(Use of) Fund Balance 53,621$
Total Gross Estimated Assessments 132,000.23$
Total District EBU Count 2,568.10
Actual Assessment per EBU - Fiscal Year 2025/26 51. 40$ Maximum Allowable Assessment per EBU - Fiscal Year 2025/26 51.40$

The maximum allowable assessment per Equivalent Benefit Unit ( EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218.

Operating
Operating Reserve
Estimated Reserve Fund Balance, June 30, 2025 207,373$
Contribution to/(Use of) Reserve - Fiscal Year 2025/26 53,621 Estimated Reserve Fund Balance, June 30, 2026 260,994$

Page 1529 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 9 Fiscal Year 2025/26
Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District.

In FY 2021/22, the outstanding balance of the interfund was fully repaid.

Page 1530 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 10 Fiscal Year 2025/26

Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states:

Page 1531 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 11 Fiscal Year 2025/26
Special Benefit
The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by:

• improving the livability , safety , appearance, and desirability for properties within the boundaries of the District, and
• ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District.

• the safety and visual enhancement of the area to persons or vehicles that may travel through the District

However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed.

When the District was formed, Article XIII D and Proposition 218 had not yet been passed.

Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as

Page 1532 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 12 Fiscal Year 2025/26
property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined, however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed.

A single-family home equals one EBU. Every other land-use is converted to EBUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land-u se types, as assigned by County use code, to determine each parcel's EBU assignment.

Land-Use Equivalent Dwelling Units

Property Type (County Use Code) EBU Value Multiplier
Non-Residential 1.00 Acre

The following table summarizes the Fiscal Year 2025/26 maximum allowable assessment rate for the District:

Property Type (County Use Code)
Maximum
Allowable
Assessment
Rate per EBU
Actual
Asessment Rate
per EBU
Total
Units/Acres Total EBUs
Non-Residential $51.40 $51.40 2,568.10 2,568.10

The total amount of maintenance and incidental costs for maintaining the streetlights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report.

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____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 13 Fiscal Year 2025/26

Page 1534 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 14 Fiscal Year 2025/26

Page 1535 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 6 – City of Rancho Cucamonga 15 Fiscal Year 2025/26

Property Type (County Use Code)
Actual
Assessment
Rate per EBU
Total
Units/Acres Total EBUs Total Assessment
Non-Residential $51.40 2,568.10 2,568.10 $132,000.23
Totals 2,568.10 2,568.10 $132,000.23

A copy of the full assessment roll is available for review in the City Clerk's office.

Annexations
There were no effective annexations for Fiscal Year 2025/26.

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ATTACHMENT 16

Annual Engineer’s Report
Fiscal Year 2025/26

City of Rancho Cucamonga
Street Lighting Maintenance District No. 7
(North Etiwanda)

Page 1537 ends

CITY OF RANCHO CUCAMONGA
STREET LIGHTING MAINTENANCE DISTRICT NO. 7
(NORTH ETIWANDA)
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
Phone: 909.477.2700
Fax: 909.477.2845

CITY COUNCIL
L. Dennis Michael, Mayor
Lynne B. Kennedy, Mayor Pro Tem
Ryan A. Hutchison, Council Member
Kristine D. Scott, Council Member
Ashley N. Stickler, Council Member

Page 1538 ends

TABLE OF CONTENTS

Page 1539 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 1 Fiscal Year 2025/26
ENGINEER’S LETTER
WHEREAS, on June 4, 2025, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2025-032, a Resolution Initiating Proceedings fo r the Levy of Annual Assessments for Street Light Maintenance District No. 7 (North Etiwanda) (the “District”); and

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance 138,499
Transfer Out 30,310
T
otal Expenditures Budget 168,809
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 131,150 Anticipated Prior Year Delinquencies Collection 1,610
Subtotal - Taxes 132,760
Transfers In 36,050
Total Revenues Budget 168,810
Contribution to/(Use of) Fund Balance 1$
Total District EBU Count 3,936.00
Actual Assessment per EBU 33.32$
Maximum Allowable Assessment per EBU 33.32$

Page 1540 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 2 Fiscal Year 2025/26
In making the assessments contained herein pursuant to the 1972 Act:

2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation:

a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entiret y of the maintenance costs of the improvements;

b. No assessment has been imposed on any Specially Benefi ted Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and

c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law.

07/16/25

Jason C. Welday
Director of Engineering Services/City Engineer
Date

Page 1541 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 3 Fiscal Year 2025/26

INTRODUCTION
Reason for Assessment
Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to:

Page 1542 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 4 Fiscal Year 2025/26
During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment.

Description of the Boundaries of the District
The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as North Etiwanda, which is generally bounded by Highland Ave on the south, Day Creek Channel on the west and City limits on the east and north.

Reference is also made to the Assessment Diagram included in this Report.

Page 1543 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 5 Fiscal Year 2025/26
Map of Improvements
The following page shows the map of street light and traffic signal improvements to be maintained using District funds.

Page 1544 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 6 Fiscal Year 2025/26

Page 1545 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 7 Fiscal Year 2025/26

District Budget

Fiscal Year
2025/26 Budget
Expenditures
Operations and Maintenance:

Contract Services 5,630
Electric Utilities 114,821
Assessment Administration 13,980
Admin./General Overhead 4,068
Subtotal - Operations and Maintenance 138,499
Transfer Out - General Street Lights Fund 30,310
Total Expenditures Budget 168,809$

Page 1546 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 8 Fiscal Year 2025/26
Fiscal Year
2025/26 Budget
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 131,150$ Anticipated Prior Year Delinquencies Collection 1,610
Subtotal - Taxes 132,760
Transfer In:

General Fund 36,050
Total Revenues Budget 168,810
Contribution to/(Use of) Fund Balance 1$
Total Gross Estimated Assessments 131,147.52$
Total District EBU Count 3,936.00
Actual Assessment per EBU - Fiscal Year 2025/26 33.32$
Maximum Allowable Assessment per EBU - Fiscal Year 2025/26 33.32$

The maximum allowable assessment per Equivalent Benefit Unit ( EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EDU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218.

Operating Reserve
Estimated Reserve Fund Balance, June 30, 2025 188,870$
Contribution to/(Use of) Reserve - Fiscal Year 2025/26 1 Estimated Reserve Fund Balance, June 30, 2026 188,871$

Page 1547 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 9 Fiscal Year 2025/26
Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Page 1548 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 10 Fiscal Year 2025/26
Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings and Developer Energizing Fees.

Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states:

The net amount to be assessed may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels. Proposition 218, approved by

Page 1549 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 11 Fiscal Year 2025/26
the voters in November 1996, requires the City to separate general benefit from special benefit, where only special benefit is assessed.

• improving the livability , safety , appearance, and desirability for properties within the boundaries of the District, and
• ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District.

• the safety and visual enhancement of the area to persons or vehicles that may travel through the District

However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed.

Page 1550 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 12 Fiscal Year 2025/26

When the District was formed, Article XIII D and Proposition 218 had not yet been passed.

Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed.

To assess special benefit appropriately, it is necessary to relate the different type of parcel improvements to each other. The Equivalent Dwelling Unit ("EDU") method of apportionment uses the single-family home as the basic unit of assessment.

A single-family home equals one Equivalent Dwelling Unit (EDU). Every other land- use is converted to EDUs based on an assessment formula that equates to the property's specific development status, type of development (land-use), and size of the property, as compared to a single-family home. The following table provides the weighting factors applied to various land- use types, as assigned by County use code, to determine each parcel's EDU assignment.

Land-Use Equivalent Dwelling Units

Property Type (County Use Code) EBU Value Multiplier
Single Family Residential 1.00 Parcel
Multi-Family Residential 0.50 Unit
Non-Residential 2.00 Acre

The use of the latest County Assessor's Secured Roll shall be the basis for the Property Type determination and units/acreage assignments unless better data is available to the City. In addition, if any parcel within the District is identified by the County Auditor/Controller to be an invalid parcel number for the current fiscal year, the Property Type and EDU assignment shall be based on the correct parcel number and/or new parcel number(s) County use code and subsequent property information. If a single parcel has changed to multiple parcels, the EDU assignment and assessment amount applied to each of the new parcels will be recalculated rather than spread the proportionate share of the original assessment.

Page 1551 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 13 Fiscal Year 2025/26
The following table summarizes the Fiscal Year 2025/26 maximum allowable assessment rates for the District:

Property Type (County Use Code)
Maximum
Allowable
Assessment Rate
per EBU
Actual
Asessment
Rate per EBU
Total
Units/Acres Total EBUs
Single Family Residential $33.32 $33.32 3,936.00 3,936.00

Page 1552 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 14 Fiscal Year 2025/26

Page 1553 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 7 – City of Rancho Cucamonga 15 Fiscal Year 2025/26

Property Type (County Use Code)
Actual
Assessment
Rate per EBU
Total
Units/Acres Total EBUs
Total
Assessment
Single Family Residential $33.32 3,936.00 3,936.00 $131,147.52 Totals 3,936.00 3,936.00 $131,147.52

A copy of the full assessment roll is available for review in the City Clerk's office.

Annexations
The were no effective annexations for Fiscal Year 2025/26.

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ATTACHMENT 17

Annual Engineer’s Report
Fiscal Year 2025/26

City of Rancho Cucamonga
Street Lighting Maintenance District No. 8
(South Etiwanda)

Page 1555 ends

CITY OF RANCHO CUCAMONGA
STREET LIGHTING MAINTENANCE DISTRICT NO. 8
(SOUTH ETIWANDA)
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
Phone: 909.477.2700
Fax: 909.477.2845

CITY COUNCIL
L. Dennis Michael, Mayor
Lynne B. Kennedy, Mayor Pro Tem
Ryan A. Hutchison, Council Member
Kristine D. Scott, Council Member
Ashley N. Stickler, Council Member

Page 1556 ends

TABLE OF CONTENTS

Page 1557 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 1 Fiscal Year 2025/26
ENGINEER’S LETTER
WHEREAS, on June 4, 2025, the City Council of Rancho Cucamonga (the “City”), under the Landscaping and Lighting Act of 1972 (the “1972 Act”) adopted its Resolution No. 2025-032, a Resolution Initiating Proceedings for the Levy of Annual Assessments for Street Light Maintenance District No. 8 (South Etiwanda) (the “District”); and

Fiscal Year
2025/26 Budget
Expenditures
Personnel Services 69,420$
Operations and Maintenance 63,644
Transfer Out 10,680
Total Expenditures Budget 143,744
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 81,120 Anticipated Prior Year Delinquencies Collection 610
Total Revenues Budget 81,730
Contribution to/(Use of) Fund Balance (62,014)$
Total District EBU Count 2,650.78
Actual Assessment per EBU 30.60$
Maximum Allowable Assessment per EBU 193.75$

Page 1558 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 2 Fiscal Year 2025/26
In making the assessments contained herein pursuant to the 1972 Act:

2. I have evaluated the costs and expenses of the improvements upon the Specially Benefitted Parcels. In making such evaluation:

a. The proportionate special benefit derived by each Specially Benefited Parcel from the improvements was determined in relationship to the entiret y of the maintenance costs of the improvements;

b. No assessment has been imposed on any Specially Benefi ted Parcel which exceeds the reasonable cost of the proportional special benefit conferred on such parcel from the improvements; and

c. Any general benefits from the improvements have been separated from the special benefits and only special benefits have been assessed.

I, the undersigned, respectfully submit the enclosed Annual Engineer’s Report and, to the best of my knowledge, information and belief, I certify that the Annual Engineer’s Report and Assessment Diagram included herein have been prepared and computed in accordance with the order of the City Council of the City of Rancho Cucamonga and the Assessment Law.

07/16/25

Jason C. Welday
Director of Engineering Services/City Engineer
Date

Page 1559 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 3 Fiscal Year 2025/26

INTRODUCTION
Reason for Assessment
Approval of the assessment covered by this Engineer’s Report will generate the revenue necessary to:

Page 1560 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 4 Fiscal Year 2025/26
During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including the improvements, to the zones within the District, and the proposed diagram or the proposed assessment.

Description of the Boundaries of the District
The District is located in the City of Rancho Cucamonga, State of California. The boundaries of the District are generally described as that area of the City known as South Etiwanda, which is generally bounded by Etiwanda Ave on the west, Highland Ave on the north and Foothill Blvd on the south. The southern portion of the District is bounded by East Ave on the east and the northern portion of the District is bounded by the I-15 Freeway on the east.

Reference is also made to the Assessment Diagram included in this Report.

Page 1561 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 5 Fiscal Year 2025/26
Map of Improvements
The following page shows the map of street light and traffic signal improvements to be maintained using District funds.

Page 1562 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 6 Fiscal Year 2025/26

Page 1563 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 7 Fiscal Year 2025/26

District Budget

Fiscal Year
2025/26 Budget
Expenditures
Personnel Services:

Regular Salaries 46,280$
Fringe Benefits 23,140
Subtotal - Personnel 69,420
Operations and Maintenance:

Operations and Maintenance:

Training 230
Membership Dues and Fees 80
General Operations 430
Repairs and Maintenance Equipment 50
Contract Services General 1,980
Subtotal - Operations and Maintenance 2,770
Electric Utilities 43,430
Assessment Administration 5,700
Admin./General Overhead 11,744
Subtotal - Operations and Maintenance 63,644
Transfer Out - General City Street Lights Fund 10,680
Total Expenditures Budget 143,744$

Page 1564 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 8 Fiscal Year 2025/26
Fiscal Year
2025/26 Budget
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 81,120$ Anticipated Prior Year Delinquencies Collection 610
Subtotal - Taxes 81,730
Contribution to/(Use of) Fund Balance (143,744)$
Total Gross Estimated Assessments 81,113.86$
Total District EBU Count 2,650.78
Actual Assessment per EBU - Fiscal Year 2025/26 30.60$
Maximum Allowable Assessment per EBU - Fiscal Year 2025/26 193.75$

The maximum allowable assessment per Equivalent Benefit Unit ( EBU) listed in the District budget above, is the amount which was approved in Fiscal Year 1996/97 and subsequent District annexations. Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year. The actual assessment per EBU will be based on the total amount of funds needed to maintain the improvements in a satisfactory and healthy condition. The actual assessment amount may be lower than the maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218.

Operating Reserve
Estimated Reserve Fund Balance, June 30, 2025 1,849,102$ Contribution to/(Use of) Reserve - Fiscal Year 2025/26 (62,014) Estimated Reserve Fund Balance, June 30, 2026 1,787,088$

Page 1565 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 9 Fiscal Year 2025/26
Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Debt Service: This item includes the repayment of interest and principal to the City General Fund for the acquisition of street lights and installation of LED street lighting within the District.

In FY 2021/22, the outstanding balance of the interfund was fully repaid.

Page 1566 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 10 Fiscal Year 2025/26

Section 22573 of the 1972 Act requires that maintenance assessments must be levied according to benefit rather than according to assessed value. This Section states:

Page 1567 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 11 Fiscal Year 2025/26
Special Benefit
The maintenance and servicing of the improvements within the District (which are described in the Description of Improvements and Services Section of this report) are for the benefit of the properties within the District, and as such confer a special and direct benefit to parcels within the District by:

• improving the livability , safety , appearance, and desirability for properties within the boundaries of the District, and
• ensuring that improvements do not reach a state of deterioration or disrepair so as to be materially detrimental to properties within the District, and • providing for safe vehicular and pedestrian access for properties within the District, and • providing beautification and overall enhancement to properties within the District.

The above mentioned items affect the assessed property in a way that is particular and distinct from their effect on other parcels and that real property in general and the public at large do not share. They contribute to a specific enhancement of the properties within the District. Since these improvements, including the community trails, were installed and are maintained specifically for the properties within the District; only properties within the District receive a special benefit and are assessed for said maintenance.

• the safety and visual enhancement of the area to persons or vehicles that may travel through the District

However, it has been determined that these benefits are derivative and do not provide a direct benefit to parcels outside of the district that are not being assessed.

When the District was formed, Article XIII D and Proposition 218 had not yet been passed.

Upon the passage of Article XIII D and the subsequent passage of the Proposition Omnibus Implementation Act, new rules were put into place. Due to the changes in legal requirements, as

Page 1568 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 12 Fiscal Year 2025/26
property annexed to the District after the passage of the Assessment Law, the description of the method of assessment became more refined; however, the assessment per parcel has remained the same since Fiscal Year 1996/97. Further, no parcel included in the District formation or annexations prior to when the language was refined, are now being levied differently than they were at the time the District was formed or the parcels were annexed.

Land-Use Equivalent Dwelling Units

Property Type (County Use Code) EBU Value M ultiplier
Single Family Residential 1.00 Parcel
Multi-Family Residential 1.00 Unit
Non-Residential 2.00 Acre

The following table summarizes the Fiscal Year 2025/26 maximum allowable assessment rates for the District:

Property Type (County Use Code)
Maximum
Allowable
Assessment
Rate per EBU
Actual
Asessment Rate
per EBU
Total
Units/Acres Total EBUs
Single Family Residential $193.75 $30.60 1,206.00 1,206.00 Multi-Family Residential 193.75 30.60 1,381.00 1,381.00 Non-Residential 193.75 30.60 31.89 63.78

Page 1569 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 13 Fiscal Year 2025/26
The total amount of maintenance and incidental costs for maintaining the street lights and traffic signals is assessed to the individual parcels of real property within the District in proportion to the special benefit received by such parcels of real property. The proposed individual assessments are shown on the assessment roll in this report.

Page 1570 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 14 Fiscal Year 2025/26

Page 1571 ends

____________________________________________________________________________ Street Lighting Maintenance District No. 8 – City of Rancho Cucamonga 15 Fiscal Year 2025/26

Property Type (County Use Code)
Actual
Assessment
Rate per EBU
Total
Units/Acres Total EBUs Total Assessment
Single Family Residential $30.60 1,206.00 1, 206.00 $36,903.60 Multi-Family Residential 30.60 1,381.00 1,381.00 42,258.60 Non-Residential 30.60 31.89 63.78 1,951.66
Totals 2,618.89 2,650.78 $81,113.86

A copy of the full assessment roll is available for review in the City Clerk's office.

Annexations
There were no effective annexations for Fiscal Year 2025/26.

Page 1572 ends

ATTACHMENT 18

Annual Engineer’s Report
Fiscal Year 2025/26

City of Rancho Cucamonga
Parks and Recreation Improvement
District No. PD-85

07/16/25

Jason C. Welday
Director of Engineering Services/City Engineer
Date

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CITY OF RANCHO CUCAMONGA
PARKS AND RECREATION IMPROVEMENT DISTRICT NO. PD-85
10500 Civic Center Drive
Rancho Cucamonga, CA 91730
Phone: 909.477.2700
Fax: 909.477.2845

CITY COUNCIL
L. Dennis Michael, Mayor
Lynne B. Kennedy, Mayor Pro Tem
Ryan A. Hutchison, Council Member
Kristine D. Scott, Council Member
Ashley N. Stickler, Council Member

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TABLE OF CONTENTS

AUTHORITY FOR REPORT 1
FINDINGS 1
DISTRICT ANALYSIS 2
ESTIMATE OF WORK 3
District Budget 3
Definitions of Budget Items 5
METHOD OF SPREAD 6
Annexations 8
Boundary Map 8

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 1 Fiscal Year 2025/26

AUTHORITY FOR REPORT
This report for the Fiscal Year 2025/26 is prepared pursuant to the order of the City Council of the City of Rancho Cucamonga (the “City”) and in compliance with the requirements of Article 4, Chapter 1, Landscape and Lighting Act of 1972 (the “1972 Act”), being Division 15, Section 22500 of the Streets and Highways code. Provisions for this annual assessment are included in Chapter 3 of the 1972 Act.

The purpose of this report is to set forth findings and the assessment analysis for the annual levy of assessments for the Park and Recreation Improvement District No. PD-85 (the “District”). This District, using direct benefit assessments, was originally created to provide funds to finance the cost of construction, maintenance, operation and debt payment of Heritage Community Park and Red Hill Community Park in the City of Rancho Cucamonga. Subsequently, the debt has been repaid with only the ongoing mai ntenance and operation with periodic capital improvement expenditures of the parks remaining.

FINDINGS
Section 22573 of the 1972 Act, requires assessments to be levied according to benefit rather than according to assessed value. The section states:

The net amount to be assessed upon lands within an assessment district may be apportioned by any formula or method which fairly distributes the net amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each such lot or parcel from the improvements.

The means of determining whether or not a parcel will benefit from the improvements is contained in the Improvement Act of 1911 (Division 7, commencing with Section 5000 of the Streets and Highways Code, State of California).

The 1972 Act also provides for the classification of various areas within an assessment district into benefit areas where, by reason of variations in the nature, location, and extent of the improvements, the various areas will receive differing degrees of all territory receiving substantially the same degree of benefit from the improvements and may consist of contiguous or noncontiguous areas.

As the assessments are levied on the bases of benefit, they are considered a user’s fee, not a tax; and, therefore, are not governed by Article XIII A. Properties owned by public agencies, such as a city, county, s tate, or the Federal government, are not assessable without the approval of the particular agency and, normally, are not assessed. Certain other parcels used for railroad mainline right-of-way, public utility transmission right-of-way, and common areas are also exempt from assessment.

The assessment for mobile home parks will be based upon underlying lot acreage.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 2 Fiscal Year 2025/26

DISTRICT ANALYSIS
A. District Boundary
The District includes all of the City of Rancho Cucamonga with the general exception of land east of Deer Creek Channel and the Victoria, Caryn and Terra Vista Planned Communities.

All parcels of real property affected are more particularly described in maps prepared in accordance with Section 327 of the Revenue and Taxation Code, which are on file in the office of the San Bernardino County Assessor in the Hall of Records, 172 West Third Street, San Bernardino, California and which are hereby made a part hereof by reference.

B. District Name
City of Rancho Cucamonga Park and Recreation Improvement District No. PD-85.

C. Facilities
The existing works within the District boundary are generally described as follows:

1. The maintenance and operation of Heritage Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, restrooms, equestrian facilities, playground equipment, picnic facilities, athletic facilities, and walking, jogging and equestrian trails and sanitary sewer connections.

2. The maintenance and operation of Red Hill Community Park including, but not limited to, grading, planting, irrigation, onsite roads, sidewalks, parking lots, lighting, waterscape, restrooms, senior citizens facilities, playground equipment, picnic facilities, major lighted athletic facilities, jogging trail, sanitary sewer connections and onsite drainage inlets.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 3 Fiscal Year 2025/26

ESTIMATE OF WORK
The 1972 Act permits carrying forward surpluses or recovering deficits in subsequent fiscal years.

Costs for the district will be reviewed annually. Any surplus credited against assessment or any deficits shall be included in the assessment for the following fiscal year.

District Budget

Fiscal Year
2025/26 Budget
Expenditures
Personnel Services:

Regular Salaries 171,320$
Fringe Benefits 85,670
Subtotal - Personnel 256,990
Operations and Maintenance:

Operations and Maintenance:

General Operations 55,770
Building and Equipment Rental 8,500
Repairs and Maintenance Equipment 3,300
Subtotal - Operations and Maintenance 67,570
Contract Services:

General Services 80,490
Contract Services Facilities 15,820
Parks and Landscaping 328,490
Tree Maintenance 36,040
Subtotal - Contract Services 460,840
Utilities:

Telephone Utilities 1,920
Water Utilities 195,950
Electric Utilities 194,381
Subtotal - Utilities 392,251
Assessment Administration 99,190
Admin./General Overhead 95,309
Other Expenses 2,960
Subtotal - Operations and Maintenance 1,118,120
Capital Expenditures:

Captial Outlay Equipment and Furnishing 52,500
Captial Outlay Improvements 800,000
Subtotal - Capital Expenditures 852,500
Transfers Out:

Transfers Out PD-85 Capital Reserve Fund 116,800
Subtotal - Transfer Out 116,800
Total Expenditures Budget 2,344,410$

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 4 Fiscal Year 2025/26
Fiscal Year
2025/26 Budget
Revenues
Taxes:

Estimated Assessments, Net of Estimated Delinquencies 1,164,190$ Anticipated Prior Year Delinquencies Collection 13,560
Subtotal - Taxes 1,177,750
Other Revenues:

Rental Revenue 124,120
Park Maintenance Fees 4,210
Sports Lighting Fees 17,270
Other Revenue 100
Subtotal - Other Revenues: 145,700
Transfer In:

Transfer In - PD-85 Operating Fund 235,170
Transfer In - CFD Empire Lakes 90,000
Subtotal - Transfer In: 325,170
Total Revenues Budget 1,648,620
Contribution to/(Use of) Fund Balance (695,790)$
Total Gross Estimated Assessments 1,164,189.50$
Total District EBU Count 37,554.50
Actual Assessment per EBU - Fiscal Year 2025/26 31.00$
Maximum Allowable Assessment per EBU - Fiscal Year 2025/26 31.00$

Each year, prior to the assessments being placed on the tax roll, the City will review the budget and determine the amount needed to maintain the improvements for the upcoming fiscal year.

The actual assessment will be based on the estimated costs of maintenance, available fund balance and maximum allowable assessment; however, it may not exceed the maximum unless the increase is approved by the property owners in accordance with Proposition 218.

It is the intent of the City to maintain an Operating Reserve which shall not exceed the estimated costs of maintenance and servicing of the improvements prior to December 10 of the fiscal year, or when the City expects to receive its apportionment of special assessments and tax collections from the County of San Bernardino, whichever is later. Beginning with Fiscal Year 2016/17, the City will maintain a Capital Reserve to be used for deferred maintenance and pending capital projects.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 5 Fiscal Year 2025/26
The reserve balance information for the District is as follows:

Operating Capital Total
Reserve Reserve Reserve
Estimated Reserve Fund Balance, June 30, 2025 4,028,889$ 786,468$ 4,815,357$ Contribution to/(Use of) Reserve - Fiscal Year 2025/26 (566,398) (129,392) (695,790) E
stimated Reserve Fund Balance, June 30, 2026 3,462,491$ 657,076$ 4,119,567$

Definitions of Budget Items
The following definitions describe the costs and expenses included in the District Budget:

Personnel Services: This item includes the costs attributed to the salaries of all full- time and part-time employees dedicated to maintenance of the District improvements. Additionally, this includes benefits available to City employees.

Operations and Maintenance: This item includes the costs of City staff to perform maintenance duties within the boundaries of the District.

Contract Services: This item includes the contract costs of a landscape maintenance company responsible for the ongoing maintenance of the District improvements.

Utilities: This item includes the costs to furnish electricity, water, and telephone services , as required, for the operation and maintenance of the sprinklers and irrigation controllers in the District.

Assessment Administration: This item includes the cost of all particular departments and staff of the City, as well as consultants, for providing the administration, coordination and management of District services, operations, and incidental expenses related to the District. This item also includes creation of an annual Engineer's Report, resolutions and placing the assessment amounts onto the County tax roll each year, along with responding to any public inquiries and future Proposition 218 balloting proceedings.

General Overhead: This item includes the costs of all central services departments of the City for providing the coordination of District services, inspections, annual bid management, responding to public concerns, public education, accounting, auditing and procedural matters associated with the District. This item also inclu des an allocation for general City staff time for administrative functions and systems that provide for a functional and operational District within the City's administrative structure.

Capital Outlay: This item includes new improvements to further enhance the level and quality of service provided within the boundaries of the District. This may include new monuments, irrigation systems, and other large improvements.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 6 Fiscal Year 2025/26
Other Revenues: This includes other revenues that are not levied through the annual assessments that support the District operations. These other revenues may include: interest earnings, other rental/lease income (cell site tower leases), Park Maintenance Fees, Sports Field User Group Rentals, and parking permits (Metrolink Station paid parking).

METHOD OF SPREAD
The 1972 Act indicates that assessments may be apportioned by any formula or method which fairly distributes costs among all lots or parcels within the District in proportion to the estimated benefit received.

A. Definitions
The District is divided into three categories for the purpose of determining the assessments as follows:

CATEGORY A – includes parcels based on the number of existing residential units within certain ranges of parcel size.

CATEGORY B – includes all parcels not defined in Category A or Category C CATEGORY C – includes exempt parcels. Exempt parcels are those parcels listed by the County Assessor’s as exempt and/or which have an assessed value of less than $500.

B. Formula
The assessment formula is based on actual land use information contained in the current San Bernardino Assessor’s computer files and Assessor’s parcel maps.

Category A:

All parcels containing existing residential dwelling units and meeting the following conditions.

Parcel Size/Range Dwelling Units/Parcel
Less than 1.5 Acres and 1 or more dwelling units

1.51 to 3.5 Acres and 2 or more dwelling units

3.51 to 7.0 Acres and 4 or more dwelling units

7.01 to 14.0 Acres and 8 or more dwelling units

14.01 to 25 Acres and 15 or more dwelling units

25.01 Acres and larger 26 or more dwelling units

Category A is based on the number of existing residential units.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 7 Fiscal Year 2025/26
Category B: All parcels not defined in Category A or Category C.

Category C: All exempt parcels as defined below:

1. All properties currently tax exempt;

2. All public ownership;

3. Railroad mainline right-of-ways;

4. Major utility transmission right-of-ways;

5. Mineral rights;

6. Parcels so small they currently cannot be built upon;

7. All normally assessable parcels within an assessed valuation of less than $500 and 1.5 acres or less; and,

C. Summary of Preliminary Assessment Amounts
Category A:

The preliminary estimated assessment rate, which will be levied during the Fiscal Year 2025/26, is $31.00 per residential dwelling unit for those parcels in Category A. Category A parcels containing more than one residential dwelling unit will be assessed for an amount equal to $31.00 times the number of residential dwelling units.

Category B:

The assessment, which may be levied for parcels within Category B during the Fiscal Year 2025/26, shall be according to the following schedule:

Definition Assessment Per Parcels
Single Family Residential $31.00
Multi-Family Residential $31.00
Less than 1.5 Acres $15.50

1.51 Acres to 3.50 Acres $46.50

3.51 Acres to 7.0 Acres $108.50

7.01 Acres to 14.0 Acres $217.00

14.01 Acres to 25.0 Acres $434.00

25.01 Acres and larger $775.00

Category C:

The assessment shall be $0.00 for Category C parcels.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 8 Fiscal Year 2025/26
Annexations
There are no effective annexations for Fiscal Year 2025/26.

Boundary Map
An Assessment Diagram for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of San Bernardino, at the time this report was prepared, and are incorporated by reference herein and made part of this Engineer’s Report.

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____________________________________________________________________________ Park and Recreation Improvement District No. PD-85 – City of Rancho Cucamonga 9 Fiscal Year 2025/26

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Resolution No. 2025-XXX – Page 1 of 3
ATTACHMENT 19
RESOLUTION NO. 2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO

CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAMS AND
ASSESSMENTS; APPROVING THE ANNUAL ENGINEER’S
REPORTS; AND ORDERING THE LEVY AND COLLECTION OF THE

ANNUAL ASSESSMENTS WITHIN LANDSCAPE MAINTENANCE
DISTRICTS NOS. 1, 2, 3B, 4-R, 6-R, 7, 8, 9 AND 10 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Rancho Cucamonga did on the 4th day of June 2025, adopt its Resolution of Intention No. 2025-029 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Landscape Maintenance Districts Nos. 1, 2, 3B, 4-R, 6-R, 7, 8, 9, and 10 (each a "District" and collectively the "Districts") for Fiscal Year 2025/26 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and
WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer (each an "Annual Engineer's Report" and collectively the "Annual Engineer's Reports") for each District as required pursuant to Article 4 of Chapter 1 of the 1972 Act, Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”); and
WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by the Assessment Law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and
WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, and said City Council having now acquired jurisdiction to order the proposed work.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows:

SECTION 1. This City Council hereby finds and determines that:

A. Notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within each District have been undertaken in accordance with the 1972 Act; and
B. The annual assessments for Fiscal Year 2025/26 proposed to be levied within each District as set forth in the applicable Annual Engineer's Report do not exceed the annual assessments as previously authorized to be levied within such District, and therefore, the proposed levy of assessments for Fiscal Year 2025/26 within such District are not deemed to be “increased” over the maximum authorized annual assessments.

SECTION 2. The final assessments and diagrams for the proceedings, as contained in the

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Resolution No. 2025-XXX – Page 3 of 3
Annual Engineer’s Report for each of the Districts, is hereby approved and confirmed. The assessments for the Districts contained in the Annual Engineer’s Reports for Fiscal Year 2025/26 are hereby levied upon the respective lots or parcels in the Districts in the amounts as set forth in the applicable Annual Engineer’s Report.

SECTION 3. This City Council hereby orders that the work, as set forth and described in the Resolution of Intention, be done and made.

SECTION 4. The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection.

SECTION 5. The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Such filing shall be made no later than the 3rd Monday in August 2025.

SECTION 6. After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment.

SECTION 7. The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments.

SECTION 8. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2025, and ending June 30, 2026.

PASSED, APPROVED, AND ADOPTED this ________ day of ______________ 2025.

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Resolution No. 2025-XXX – Page 1 of 3
ATTACHMENT 20
RESOLUTION NO. 2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO

CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAMS AND
THE ASSESSMENTS; APPROVING THE ANNUAL ENGINEER’S
REPORTS; AND ORDERING THE LEVY AND COLLECTION OF THE

ANNUAL ASSESSMENTS WITHIN STREET LIGHTING
MAINTENANCE DISTRICTS NOS. 1, 2, 3, 4, 5, 6, 7 AND 8, FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Rancho Cucamonga did on the 4th day of June 2025, adopt its Resolution of Intention No. 2025-032 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Street Lighting Maintenance Districts Nos. 1, 2, 3, 4, 5, 6, 7 and 8 (each a "District" and collectively the "Districts") for Fiscal Year 2025/26 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer (each an "Annual Engineer’s Report" and collectively the "Annual Engineer’s Reports") for each District as required pursuant to Article 4 of Chapter 1 of the 1972 Act, Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1972 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”); and
WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by the Assessment Law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and
WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom and said City Council having now acquired jurisdiction to order the proposed work.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows:

SECTION 1. This City Council hereby finds and determines that:

SECTION 2. The final assessments and diagrams for the proceedings, as contained in the Annual Engineer’s Report for each of the Districts, is hereby approved and confirmed. The assessments

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Resolution No. 2025-XXX – Page 3 of 3
for the Districts contained in the Annual Engineer’s Reports for Fiscal Year 2025/26 are hereby levied upon the respective lots or parcels in the Districts in the amounts as set forth in the applicable Annual Engineer’s Report.

SECTION 3. This City Council hereby orders that the work, as set forth and described in the Resolution of Intention, be done and made.

SECTION 8. The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2025, and ending June 30, 2026.

PASSED, APPROVED, AND ADOPTED this ________ day of ____________ 2025.

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Resolution No. 2025-XXX – Page 1 of 3
ATTACHMENT 21
RESOLUTION NO. 2025-XXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO

CUCAMONGA, CALIFORNIA, CONFIRMING THE DIAGRAM AND
ASSESSMENT; APPROVING THE ANNUAL ENGINEER’S REPORT;

AND ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS
WITHIN PARK AND RECREATION IMPROVEMENT DISTRICT NO.

PD-85 FOR FISCAL YEAR 2025/26
WHEREAS, the City Council of the City of Rancho Cucamonga did on the 4th day of June 2025, adopt its Resolution of Intention No. 2025-035 (the "Resolution of Intention") pursuant to the Landscaping and Lighting Act of 1972, as amended (the "1972 Act"), declaring its intention to levy and collect assessments within Park and Recreation Improvement District No. PD-85 (the “District”) for Fiscal Year 2025/26 and giving notice of the time and place for a public hearing by the City Council on the levy of the proposed assessments within the Districts; and
WHEREAS, the City Council previously received and preliminarily approved a report of the Assessment Engineer as required by the 1972 Act; and
WHEREAS, notice of such public hearing was duly and legally published in the time, form and manner as required by law, shown by the affidavit of Publication of said Resolution of Intention on file in the Office of the City Clerk; and
WHEREAS, said City Council having duly received and considered evidence, oral and documentary, concerning the jurisdiction facts in this proceeding and concerning the necessity for the contemplated work and the benefits to be derived therefrom, and said City Council having now acquired jurisdiction to order the proposed work.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, HEREBY RESOLVES, as follows:

SECTION 1: This City Council hereby finds and determines that notice of the public hearing has been given and the proceedings for the consideration of the levy of the annual assessments within the District have been undertaken in accordance with the 1972 Act.

SECTION 2: The final assessments and diagram for the proceedings, as contained in the final Annual Engineer’s Report for the District, are hereby approved and confirmed. The assessments for the District contained in the Annual Engineer’s Report for Fiscal Year 2025/26 are hereby confirmed and levied upon the respective lots or parcels in the District in the amounts as set forth in applicable Annual Engineer’s Report.

SECTION 3: This City Council finds and determines that the public interest and convenience requires the levy and collection of assessments within the District for Fiscal Year 2025/26, and said City Council hereby orders that the work, as set forth and described in said Resolution of Intention be done and made.

SECTION 4: The above-referenced diagram and assessment shall be filed in the Office of the City Clerk. Said diagram and assessment, and the certified copy thereof, shall be open for public inspection.

SECTION 5: The City Clerk is hereby ordered and directed to immediately file a certified copy of the diagram and assessment with the County Auditor. Said filing is to be made no later than the 3rd

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Resolution No. 2025-XXX – Page 3 of 3
Monday in August 2025.

SECTION 6: After the filing of the diagram and assessment, the County Auditor shall enter on the County assessment roll opposite each lot or parcel of land the amount assessed thereupon, as shown in the assessment.

SECTION 7: The assessments shall be collected at the same time and in the same manner as County taxes are collected, and all laws providing for the collection and enforcement of County taxes shall apply to the collection and enforcement of the assessments.

SECTION 8: The assessments as above confirmed and levied for these proceedings will provide revenue and relate to the fiscal year commencing July 1, 2025, and ending June 30, 2026.

PASSED, APPROVED, AND ADOPTED this ________ day of _____________ 2025.

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DATE:July 16, 2025
TO:President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY:Peter Castro, Deputy City Manager, Administrative Services Mike McCliman, Fire Chief
Jevin Kaye, Finance Director
Rick Flinchum, Deputy Finance Director
Michelle Cowles, Management Analyst II
SUBJECT:Consideration of a Resolution Adopting the Fire District's General Fund Final Budget for Fiscal Year 2025-26. (RESOLUTION NO. FD 2025-019) (FIRE)
RECOMMENDATION:

Staff recommends the Fire Board of the Rancho Cucamonga Fire Protection District (District) approve a Resolution adopting the General Fund Final Budget for FY 2025/26 in the amount of $68,308,520, which is a combination of $46,911,410. General Fund operational expenditures and $21,397,110 Fire Protection Capital Fund expenditures.

BACKGROUND:

The Health and Safety Code, commencing with Section 13890 et seq, requires the Fire Protection District:

1. Adopt a preliminary budget;

2. Publish a notice regarding a public hearing for final budget adoption; and

3. Adopt its final budget on or before October 1 of each year.

ANALYSIS:

In compliance with the above requirements, the Fire Board of Directors has:

1. Conducted a public budget workshop on June 19, 2025, and adopted the preliminary budget on June 26, 2025;

2. Published on two (2) occasions in the Inland Valley Daily Bulletin, notices regarding the public hearing for consideration of final budget adoption; and

3. Submitted a proposed resolution adopting the General Fund Final Budget during the Board meeting scheduled for July 16, 2025.

The preliminary budget for public inspection has been available in accordance with the Health and Safety Code.

FISCAL IMPACT:

The actions taken by the Fire Board will establish the Rancho Cucamonga Fire Protection District's final spending plan for Fiscal Year 2025/26.

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COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

This item brings together portions of the Council's vision and core values. Delivering vital fire and life safety services to residents, visitors, and businesses through an innovative combination of risk reduction and emergency response programs promotes and enhances a safe and healthy community for all.

ATTACHMENTS:

Attachment 1 - Resolution No. FD 2025-019, General Fund Final Budget FY 2025-26

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Resolution No. FD 25-xxx
ATTACHMENT 1
RESOLUTION NO. FD 2025-XXX

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE RANCHO

CUCAMONGA FIRE PROTECTION DISTRICT, COUNTY OF SAN

BERNARDINO, STATE OF CALIFORNIA, ADOPTING A FINAL
BUDGET FOR THE FISCAL YEAR JULY 1, 2025 THROUGH JUNE 30, 2026
WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District adopted its General Fund Preliminary Budget on June 26, 2025, and made said preliminary budget available for inspection by interested taxpayers; and
WHEREAS, the Board of Directors noticed a time and place for a public hearing regarding the preliminary budget; and
WHEREAS, the Board of Directors of the Rancho Cucamonga Fire Protection District conducted said hearing in accordance with requirements set forth in the Health and Safety Code of the State of California.

NOW, THEREFORE, the BOARD OF DIRECTORS OF THE RANCHO CUCAMONGA FIRE PROTECTION DISTRICT HEREBY RESOLVES to adopt the General Fund Final Budget for the District for Fiscal Year 2025/26 in the amount of $68,308,520, which is a combination of $46,911,410 General Fund operational expenditures and $21,397,110 Fire Protection Capital Fund expenditures. The General Fund's Final Budget is on file in the office of the Finance Director.

PASSED, APPROVED, AND ADOPTED this 16th day of July 2025.

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DATE:July 16, 2025
TO:Mayor and Members of the City Council
FROM:John R. Gillison, City Manager
INITIATED BY:Elisa Cox, Assistant City Manager
Matt Marquez, Economic Development Director
SUBJECT:Presentation from Empire Economics Inc. on the City’s Annual Economic and Housing Trends Study. This Item is not a Project as Defined by the California Environmental Quality Act (CEQA) and is Therefore Exempt from CEQA Review. (CITY)
____________________________________________________________________________ RECOMMENDATION:

Staff recommends that the City Council receive a presentation from Dr. Joe Janczyk of Empire Economics Inc. on the City’s Annual Economic and Housing Trends Study.

BACKGROUND:

Over the years the City has worked with Empire Economics to develop an annual forecast of Rancho Cucamonga’s economic and housing growth and conditions. Additionally, different supplemental analyses are prepared on an as needed basis. Factors impacting the City’s economy and housing market change regularly, and there is a need to understand the reasons behind these changes and the impacts they have on the community.

On February 15, 2023, the City Council approved a professional services agreement with Empire Economics for the main purpose of continuing to prepare these annual studies. The agreement approved by Council covers a three-year period. The Empire team has completed this year’s work and will now be presenting their findings to the City Council.

ANALYSIS:

As the City continues to grow and evolve, understanding changes to its economy and housing market remain key for future planning efforts. Listed below is some key information from Empire’s study. The complete study has been provided as an attachment to this staff report.

1. Expected Impacts on the Economy/Employment: The City’s economy has recovered from the impacts of the Covid 19 pandemic. Certain sectors performed better than others as the economy has evolved and reshaped itself. Among the relatively strong sectors, administrative and support services is performing at a much higher rate than pre-Covid 19 conditions. The Administrative and Support services category now makes up approximately 11.7% of the jobs in the city. Additional sectors that have shown growth over the last few years include leisure and hospitality, administrative support, government services and health care. Alternatively, the manufacturing sector has been weaker than pre-Covid 19 levels. Policies at the federal level will continue to impact the City’s economy over the next several years and cause even more restructuring. The real estate and

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finance employment sectors continue to lag in their recovery due to higher mortgage and interest rates overall. Additionally, following the decline in 2020, employment in the city increased to approximately 78,388 in 2022. Employment then moderated, declining to an estimated 77,739 in 2024. Growth is anticipated to continue, with high- speed rail helping to further the long-term potential for hotel, retail, and restaurant uses.

The overall forecast for 2025-2030, shows employment growth rising gradually to about 83,000 in 2030.

2. Expected Impacts on the Housing Market: Mortgage rates are a secondary driver of housing demand; employment growth is typically the primary driver. Rates remained at historic lows through December of 2021 (3.2%). Since then, policies at the Federal level have significantly increased mortgage rates to over 7.7%, but recently, rates have fallen to 6.7%. Even with a reduction in mortgage rates, there is still hesitancy to purchase a new home with a much higher new mortgage rate. For example, with a 30-year fixed rate for a mortgage loan of $800,000:
For a 3% mortgage rate in 2021, the mortgage interest rate payments would be $12,500 a year.
For a 7.7% mortgage rate in 2023, the mortgage interest rate payments would be $36,500 a year.
For a 6.3% mortgage rate in 2025, the mortgage interest rate payments would be $26,500 a year.

Mortgage rates are expected to remain stable, and therefore the incentives for homeowners to stay in their current homes with historically low rates remains strong. The supply of existing homes will therefore remain constrained.

3. Market Conditions for Apartment Units: Monthly rental rates in Rancho Cucamonga continue to remain higher than the County’s, by over $250. Average rents in the city are now over $2,700/month. The new active and forthcoming apartments have a sufficient supply to support absorption of about 525 units annually during the foreseeable future.

4. Current State of Warehouse/Distribution Market in Rancho Cucamonga: The current vacancy rate is roughly 7.0% in the city and 7.1% in the Inland Empire. This represents major increases from last year, as vacancy rates were 3.5% for the city and 4.87% for the Inland Empire. The current lease rate amounts to $1.25 per square foot in the city, which is approximately $0.22 higher than the rest of the Inland Empire. As detailed in this year’s Budget Message, logistics and trade is a huge driver of the warehouse market in the Inland Empire. Many cities have heavily invested in the warehouse and logistics sector and if it is significantly impacted due to tariffs or other market forces, job loses throughout the entire supply chain will occur. In San Bernardino County, nearly 1 in 5 jobs are associated with logistics.

5. Multi-Family Socioeconomic Analysis: Empire’s analysis includes a review of housing units at different stages of the development and leasing processes. This year, the focus was on an apartment market with the potential for 4,200 units (recently constructed, recently approved, and forthcoming). Newly developed projects (Homecoming at the Resort for example) generally have higher rents as compared to established apartments (Ironwood Apartments for example), as the strong demand for housing in Rancho Cucamonga has even impacted apartment rental rates. Newer projects have average

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monthly rents of $3,255, while more established projects have average monthly rents of $2,695. Residents of newer projects generally have higher median household incomes

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versus those of established projects ($96,906 vs $92,389). While the City has historically seen most of its working residents commute outwardly to their jobs, residents of the newer apartment projects are working in the City at a higher rate (24%) than those in the more established developments (21%). As new residential development continues to occur throughout the city, future studies will include increasing levels of socioeconomic data and analysis.

As described in the City Manager’s Budget Message, despite the stagnation in labor force and population overall in California, as well as rising house prices, the Inland Empire, Riverside and San Bernardino County, are one of the few areas growing. Growth is happening because compared to the rest of California, house prices are still somewhat affordable and new home construction continues to grow in the Inland Empire. Rancho Cucamonga continues to grow also, but at a slower pace than lower-priced areas of the County such as San Bernardino, Fontana, Ontario and Victorville. Rancho Cucamonga’s slower growth is in part attributable to slightly less new construction and a price premium which makes houses less affordable than in other communities. Although the City has been aggressively approving entitlements for thousands of homes per year, the pace of construction has slowed which has led to a continuation of higher price points. Rancho Cucamonga remains among the most expensive places to purchase a home in San Bernardino County.

While our size is helping us grow, until we improve the percentage of our residents with college degrees, this will continue to limit our economic growth, wage gains, overall output and comparison to other large metropolitan statistical areas. This year represents the first-time staff and Empire Economics utilized Placerai to analyze the characteristics of residents of both new and established apartment development. This year’s analysis shows us that residents to newer developments are working in the city at higher rates and have different levels of income and educational attainment than residents of more established apartment developments. As also discussed in this year’s Budget Message, if we improve the percentage of our residents with college degrees, as well as the percentage that both live and work in the city, our potential for growth will also continue to improve.

FISCAL IMPACT:

There is no fiscal impact associated with this presentation to the City Council. The cost for the annual forecast and supplemental analysis was budgeted for in Fiscal Year 2024-2025.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

This item addresses the City Council’s Core Values of “Intentionally embracing and anticipating the future”, and “Equitable prosperity for all” by ensuring that Rancho Cucamonga’s vibrant economy ensures prosperity and opportunities now and in the future.

ATTACHMENTS (1):

Attachment 1 – 2025 Annual Economic and Housing Study

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CITY OF RANCHO CUCAMONGAI. ANNUAL ECONOMIC AND HOUSING STUDYRECENT TRENDS AND FORECASTS FOR EMPLOYMENT AND HOUSING (Pages 2-52; Highlights: 3-4)II. SUPPLEMENTAL RESEARCH (Pages 53)(ENHANCEMENTS TO ANNUAL STUDY)1. DETAILED ANALYSIS OF SECTORS: RESIDENTIAL/ EMPLOYMENT (Pages 54-74; Highlights: 56-57 )2. BRIEF BW-HSR UPDATE ON FEBRUARY 2024 STUDY (Pages 75-80 Highlights: 77)3. DEVELOPMENT IMPACT FEES (Pages 81-90 Highlights: 84, 90)4. SOCIOECONOMIC CHARACTERISTICS OF APARTMENT TENANTS (Pages 91-104; Highlights: 92-93)PREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.MAY 27, 2025(GRAMMATICAL REVISIONS FROM DRAFT STUDY DATED APRIL 21, 2025) 1 ATTACHMENT 1

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CITY OF RANCHO CUCAMONGAANNUAL ECONOMIC AND HOUSING STUDYPREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.2

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•RANCHO CUCAMONGA ’S EMPLOYMENT RECOVERY RA TE FROM COVID-19 HAS EXCEEDED CALIFORNIA ’S BUT LAGGED RIVERSIDE-SAN BERNARDINO’S.THE CITY’S RECENT UNEMPLOYMENT RA TE OF 4.3% IS BELOW SAN BERNARDINO COUNTY (5.1%) BUT SLIGHTLYABOVE THE UNITED STA TES (4.1%).•THE CITY AGGREGA TE LEVEL OF EMPLOYMENT IS FORECASTED TO RISE FROM ~78,000 IN 2024 TO ~83,000 IN 2030, WITH WAREHOUSE/DISTRIBUTIONHA VING SMALLER THAN EXPECTED GAINS AND CONSTRUCTION OF THE BW-HSR BEING SLIGHTLY DELAYED.•THE STRONGEST SECTORS IN THE CITY OVER THE LAST 5 YEARS HA VE BEEN EDUCA TION, REAL ESTA TE AND ADMINISTRA TIVE, WHILE THE WEAKESTSECTORS HA VE BEEN MANAGEMENT, FINANCE/INSURANCE, TRANSPORTATION/ WAREHOUSING AND MANUFACTURING.•MORTGAGE RA TES REMAIN ELEV A TED A T ~6.5-7% SINCE THE EARLY 2022 LOW OF ~3%. SO THE SUPPLY OF EXISTING HOMES FOR-SALES IS CONSTRICTEDSINCE ABOUT 64% OF HOMEOWNERS HA VE RA TES BELOW 4%. EXCESS DEMAND HAS SHIFTED TO NEW HOMES AND NEW APARTMENTS.•TOTAL MORTGAGE PAYMENTS ARE ~50% ABOVE 2019-2021 LEVELS, DRIVEN BY HIGHER MORTGAGE RA TES AND PRICES, WITH ALMOST HALF OFPAYMENTS NOW GOING TO MORTGAGE INTEREST RA TES.EXECUTIVE SUMMARY 3RECENT PRICE APPRECIA TION HAS BEEN DRIVEN BY EXCESS DEMAND FOR EXISTING HOMESEMPLOYMENT EXCEEDED ITS PRE-COVID LEVEL IN 2022CONSTRUCTION OF THE BW-HSR DURING 2026-20293%30%41%54%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%70%01002003004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002018-03-012018-06-012018-09-012018-12-012019-03-012019-06-012019-09-012019-12-012020-03-012020-06-012020-09-012020-12-012021-03-012021-06-012021-09-012021-12-012022-03-012022-06-012022-09-012022-12-012023-03-012023-06-012023-09-012023-12-012024-03-012024-06-012024-09-012024-12-01RANCHO CUCAMONGA HOUSING PRICE CHANGE SINCE JAN. 2018RANCHO CUCAMONGA PENDING LISTINGS AND INVENTORYRANCHO CUCAMONGA PENDING LISTINGS AND HOUSING INVENTORY, AND CUMULATIVE LAGGED 12 MONTH HOUSING PRICE CHANGE SINCE JAN. 2018(JANUARY 2018 - FEBRUARY 2025)Rancho Cucamonga Housing Price ChangeRancho Cucamonga Housing InventoryRancho Cucamonga Pending SalesAFTER FIRST YEAR OFCOVID,INVENTORYFELL CLOSER TO AND EVEN BELOW PENDING SALES2020 Q2: First Qtr. of Significant COVID EBCDAFEBR. 2025 74,55075,36968,04072,12278,38877,13177,73977,88480,29482,78283,71883,57683,042020,00040,00060,00080,000100,000120,0002018201920202021202220232024-Est.2025-F2026-F2027-F2028-F2029-F2030-FCITY OF RANCHO CUCAMONGA: RECENT/EXPECTEDLEVELS OF EMPLOYMENT BY FIRMS LOCATED IN THE CITY*WITH HIGH SPEED RAIL*3%41%53%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%70%2018-03-012018-06-012018-09-012018-12-012019-03-012019-06-012019-09-012019-12-012020-03-012020-06-012020-09-012020-12-012021-03-012021-06-012021-09-012021-12-012022-03-012022-06-012022-09-012022-12-012023-03-012023-06-012023-09-012023-12-012024-03-012024-06-012024-09-012024-12-0130-YEAR FIXED MORTGAGE RATESRANCHO CUCAMONGA PENDING PRICE CHANCE SINCE JAN. 2018RANCHO CUCAMONGA PENDING LISTINGS AND HOUSING INVENTORY, AND CUMULATIVE LAGGED 12 MONTH HOUSING PRICE CHANGE SINCE JAN. 2018(JANUARY 2018 - FEBRUARY 2025)RANCHO CUCAMONGA HOUSING PRICE CHANGE30 YEAR FIXED MORTGAGE RATESMORTGAGE RATES REMAINED AT HIGH LEVELS OF 6.5-7% IN 20242020 Q2: FIRST QUARTER OF SIGNIFICANT COVID FEBR. 2025DESPITE INCREASING MORTGAGE RATES, HOUSING PRICES CONTINUED TO RISE, NOW DRIVEN BY LOW INVENTORY PRICE APPRECIA TION DESPITE HIGH MORTGAGE RA TES: UNIQUE EVENT

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•RANCHO CUCAMONGA RENT LEVELS ARE HIGHER THAN SAN BERNARDINO COUNTY BUT THEIR PERCENT CHANGE DURING 2015-2023 WAS LOWER.•COMPARING 2025 TO 2024 RENTS , CHANGES WERE THE CORE:+5.9%, HOMECOMING + 1.0% , WESTBURY -4.1%, FOR AN OVERALL A VERAGE OF +1.0%.•THE CITY HAS 13 NEW APARTMENT PROJECTS WITH SOME 4,205 UNITS: RECENT/ACTIVE/LEASING (3 WITH 1,191 UNITS), UNDER CONSTRUCTION (2WITH 508 UNITS) AND FUTURE (8 WITH 2,506 UNITS).•BASED UPON RECENT MARKET CONDITIONS, THE ABSORPTION FOR APARTMENTS AMOUNTS TO ABOUT 525 UNITS ANNUALLY .•RANCHO CUCAMONGA HAS RECENTLY EXPERIENCED A SIGNIFICANT AMOUNT OF ACTIVITY IN THE WAREHOUSE DISTRIBUTION SECTOR:5 BUILDINGS WITH A 2,874,380 SQ FT. RECENTLY SOLD AND INITIALLY LEASED.EXECUTIVE SUMMARY (CON’T.) 402004006008001,0001,2001,400NUMBER OF APARTMENT RENTAL'S - ANNUALLYRANCHO CUCAMONGA NEW APARTMENT PROJECTSRECENTLY LEASED, ACTIVE/LEASING, CONSTRUCTION AND FUTURERECENTLY LEASEDUNDER CONSTRUCTIONOPEN - 2026OPEN 2027OPEN 2028+CITY’S THE RECENT V ACANCY RA TE ROSE FROM 3.5% TO 7.0% AND IS NOW SIMILAR TO THE INLAND EMPIRE’S RA TE OF 7.1% .NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTSREMARK: POTENTIAL “OPEN” DATES PER PLANNING APPROVALSABSORPTION /TENANTS BASED UPON EMPIRE’S FORECAST 3.5%7.0%4.9%7.1%0%1%2%3%4%5%6%7%8%VACANCY RATERECENT VACANCY RATE TRENDS FOR WAREHOUSE/DISTRIBUTIONSPACE IN RANCHO CUCAMONGA AND INLAND EMPIRE

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TABLE OF CONTENTSEMPIRICAL FOUNDATION: DATA COMPILED SPECIFICALLY FOR RANCHO CUCAMONGA...........6I. OVERVIEW OF RECENT AND EXPECTED MACROECONOMIC CONDITIONS……….…………........7II. ECONOMY/EMPLOYMENT: RECENT TRENDS AND FORECASTS ……………………………………12III. METHODOLOGY UNDERLYING THE COMPOSITION OF EMPLOYMENT BY SECTORS ……….22IV . HOUSING MARKET: RECENT TRENDS AND FORECASTS ….…………………………………….….26V . MARKET CONDITIONS FOR APARTMENT UNITS………………………………………………….......37VI. CURRENT STATE OF WAREHOUSE/DISTRIBUTION MARKET…………………………………….....47CREDENTIAL/QUALIFICATIONS OF EMPIRE ECONOMICS…………….……………….……….…..…....505

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EMPIRICAL FOUNDATION: SPECIFIC DATA FOR RANCHO CUCAMONGA*PRIMARY DATA COMPILED BY EMPIRE ECONOMICS SPECIFICALLY FOR THE CITY* EMPLOYMENT AND PAYROLL DATA SPECIFICALLY FOR THE CITYEMPLOYMENT BY FIRMS LOCA TED IN THE CITY – INCLUDES CITY HOUSEHOLDS AND THOSE COMMUTING INTO THE CITYEMPLOYMENT FOR HOUSEHOLDS RESIDING IN THE CITY – EITHER FOR FIRMS IN THE CITY OR ELSEWHERE TOTAL EMPLOYMENT, RECENT TRENDS AND PATTERNS FOR EACH ECONOMIC SECTOR, PAYROLL LEVELS AND RECENT EMPLOYMENT CHANGES MARKET SURVEYS OF APARTMENT AND NEW HOME PROJECTS IN THE CITYACTIVE-LEASING, UNDER CONSTRUCTION, GRADING AND PLANNING DEPARTMENT – APPROV AL STATUSCITY PLANNING DEPARTMENTMARKET SURVEYS FOR ACTIVE PROJECTS, INCLUDING RENT LEVELS AND LEASING STA TUS SITE VISITS FOR W AREHOUSE/DISTRIBUTION PROJECTSCURRENT DEVELOPMENT CONDITION OF THE PROPERTIESSTATUS OF DEVELOPMENT APPROV ALS – CITY PLANNING DEPARTMENT 6

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7 I. OVERVIEW OF RECENT AND EXPECTED MACROECONOMIC CONDITIONS.COVID-19 - MARCH 2020: ECONOMY SHUT-DOWN; POTENTIAL FOR MAJOR RECESSIONSIGNIFICANT PROACTIVE POLICIES BY FEDERAL RESERVE BOARD (FED) AND FEDERAL GOVERNMENTRECESSION A VOIDED BUT INFLATION SURGES TO PEAK LEVEL IN JANUARY 2022FED RAISES SHORT-TERM RATES, INFLATION DECLINES TO ABOUT 3%POTENTIAL STAGFLATION: INFLATION ABOVE 2% TARGET AND EMPLOYMENT GROWTH MODERATE

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9-2%-1%0%1%2%3%4%5%6%7%8%9%2005-02-012005-12-012006-10-012007-08-012008-06-012009-04-012010-02-012010-12-012011-10-012012-08-012013-06-012014-04-012015-02-012015-12-012016-10-012017-08-012018-06-012019-04-012020-02-012020-12-012021-10-012022-08-012023-06-012024-04-012025-02-01 CHANGE - ANNUALIZED MAJOR COMPONENT OF THE PCE INDEX IS HOUSING (~16%)HOUSING COMPONENT REPRESENTS THE RENTAL RATE FOR HOMES(PCE = PERSONAL CONSUMPTION INDEX, FED'S INFLATION INDEX) CHANGE PCECHANGE- HOUSING

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11 SURVEY OF 40 PROFESSIONAL FORECASTERS – CONSENSUS FORECAST SOURCE: FEDERAL RESERVE BANK PHILADELPHIA 1STQTR 2025

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II. ECONOMY/EMPLOYMENT RECENT TRENDS AND FORECASTS RECENT EMPLOYMENT TRENDS BY V ARIOUS GEOGRAPHIC AREAS UNEMPLOYMENT RATES: RANCHO CUCAMONGA, SB-R COUNTIES AND UNITED STATES COMPOSITION OF RANCHO CUCAMONGA EMPLOYMENT BY SECTOR (2024-EST.)RANCHO CUCAMONGA VS. CALIFORNIA: EMPLOYMENT RECOVERY BY SECTORSRANCHO CUCAMONGA - RECENT AND FORECASTED AGGREGATE LEVELS OF EMPLOYMENTLOCATION OF EMPLOYMENT VS. AFFORDABILITY OF HOUSING12

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RECENT EMPLOYMENT TRENDS BY V ARIOUS GEOGRAPHIC AREAS •SINCE MARCH 2020, COVID-19 HAS DRAMATICALLY IMPACTED THE ECONOMY/EMPLOYMENT IN UNIQUE WAYS:•IN APRIL 2020 EMPLOYMENT DECLINED SIGNIFICANTLY , BY -18% FOR THE CITY DUE TO COVID-19•THEN EMPLOYMENT RECOVERED, SURPASSING ITS PRE-COVID LEVEL IN NOVEMBER 2021•IN DECEMBER 2022, THE CITY W AS ABOUT 6% ABOVE ITS PRE-COVID LEVELS•HOWEVER, THEREAFTER EMPLOYMENT DECLINED, TO ONL Y 3% ABOVE THE PRE-COVID LEVEL•COMPARING THE OTHER AREAS TO THE CITY, RIV-SB HAD A STRONGER RECOVERY WHILE CA HAD A WEAKER RECOVERY 1380%84%88%92%96%100%104%108%112%Jan.-Feb. 202020-Apr20-Jun20-Aug20-Oct20-Dec21-Feb21-Apr21-Jun21-Aug21-OctDec-21Feb-22Apr-22Jun-22Aug-22Oct-22Dec-22Feb-23Apr-23Jun-23Aug-23Oct-23Dec-23Feb-24Apr-24Jun-24Aug-24Oct-24Dec-24Feb-25 % TOTAL NONFARM EMPLOYMENT VS. PRE-COVID LEVELS (JAN.-FEB. 2020)RANCHO CUCAMONGA, CALIFORNIA, AND RIV-SB COUNTIES CHANGE VS. BENCHMARK JAN-FEBR. 2020 PRE-COVID(NOT SEASONALLY ADJUSTED)Rancho CucamongaRiverside-San Bernardino MSACaliforniaEmpire EconomicsPRECIPITOUS DECLINERECOVERINGNEW HIGHSSTEADY / MODEST GROWTH

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10.1%2.6%12.9%2.6%4.8%4.3%0%1%2%3%4%5%6%7%8%9%10%11%12%13%14%2010-Jan2010-Aug2011-Mar2011-Oct2012-May2012-Dec2013-Jul2014-Feb2014-Sep2015-Apr2015-Nov2016-Jun2017-Jan2017-Aug2018-Mar2018-Oct2019-May2019-Dec2020-Jul2021-Feb2021-Sep2022-Apr2022-Nov2023-June2024-Jan2024-Aug CITY OF RANCHO CUCAMONGA: MONTHLY UNEMPLOYMENT RATE(JANUARY 2010 - FEBRUARY 2025)Dec. 2019May 2020May 2010Aug.2024May 2022Feb.2025

RANCHO CUCAMONGA HISTORICAL AND RECENT UNEMPLOYMENT RATES 14FEBR 2025

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UNEMPLOYMENT RATES: RANCHO CUCAMONGA, SAN BERNARDINO COUNTY AND UNITED STATES RANCHO CUCAMONGA HAS AN UNEMPLOYMENT RATE OF 4.3%BELOW THAT OF SAN BERNARDINO COUNTY: 5.1%BUT SLIGHTLY ABOVE THAT OF THE UNITED STATES: 4.1% 154.3%5.1%4.1%0%1%2%3%4%5%6%Rancho Cucamonga San Bernardino County United States RECENT UNEMPLOYMENT RATES - RANCHO CUCAMONGA, SAN BERNARDINO COUNTY AND THE UNITED STATES(FEB 2025 )THE RANCHO CUCAMONGA UNEMPLOYMENT RA TE REPRESENTS THE SHARE OF THE CITY’S HOUSEHOLDS THA T ARE UNEMPLOYED, 4.3%FOR THE RESIDENTS THA T ARE EMPLOYED, 95.7%,THIS INCLUDES THOSE THA T ARE EMPLOYED BY FIRMS IN THE CITY OR ELSEWHERE EMPIRE RESEARCH HAS SHOWN THA T MOST OF THE CITY’S EMPLOYED RESIDENTS ARE EMPLOYED IN OTHER CITIES.

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COMPOSITION OF RANCHO CUCAMONGA EMPLOYMENT BY SECTOR (2024-EST.)•ABOUT 38% OF JOBS ARE IN ADMINISTRATIVE SUPPORT SERVICES, GOVERNMENT AND RESTAURANT/HOTELS•ABOUT 20% OF JOBS ARE IN RETAIL TRADE AND MANUFACTURING 16Government, 13.5%Restaurants/Hotels, 12.8%Administrative-Support Services, 11.7%Retail Trade, 10.2%Manufacturing, 9.8%Health Care, 8.9%Construction, 7.0%Wholesale Trade, 6.2%Professional Services, 4.9%Transportation/Warehouse, 4.1%Finance & Insurance, 3.2%Real Estate, 2.3%Other Services, 2.5%Educational Services, 1.2%Arts, Entertainment, 0.8%Management Services, 0.5%Information, 0.4%RANCHO CUCAMONGA: SHARES OF EMPLOYMENT BY ECONOMIC SECTORS IN 2024-EST. (SECTOR EMPLOYMENT / TOTAL EMPLOYMENT)

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RANCHO CUCAMONGA EMPLOYMENT BY SECTORS: COVID RESTRUCTURING IMPACTS(2024-EST. VS. 2019 PRE-COVID)•SECTOR WITH BIGGEST JOB ADDITIONS FOR 2024-EST. VS. 2019:ADMINISTRATIVE SUPPORT +1,974 AND GOVERNMENT +1.904•SECTOR WITH BIGGEST JOB LOSES FOR 2024-EST. VS. 2019: MANUFACTURING -1,815 AND TRANSPORTATION/WAREHOUSE -880 171,97480187053935-880-681-283-1,8151,90496247028819-158-793-621-2,000 -1,500 -1,000 -500 0 500 1,000 1,500 2,000CORE SECTORS (+560)Administrative-Support ServicesWholesale TradeRestaurants/HotelsProfessional ServicesInformationTransportation/WarehouseConstructionManagement ServicesManufacturingSUPPORT SECTORS (+2,071)GovernmentHealth CareReal EstateEducational ServicesArts, EntertainmentOther Services Finance & Insurance Retail Trade RANCHO CUCAMONGA: CHANGE IN LEVELS OF EMPLOYMENT FROM 2019 TO 2024-EST. BY ECONOMIC SECTOR

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31%20%16%15%14%9%8%6%6%6%5%5%1%-9%-9%-9%-20%-21%-30%-20%-10%0%10%20%30%40%CALIFORNIA AND RANCHO CUCAMONGA EMPLOYMENT RECOVERY - SECTORSDEC 2024 EMPLOYMENT LEVEL VS. PRE-COVID (JAN.-FEB. 2020)

RED RANCHO CUCAMONGAGREEN - CALIFORNIA
RANCHO CUCAMONGA VS. CALIFORNIA: EMPLOYMENT RECOVERY BY SECTORSOVERALL, RANCHO CUCAMONGA AGGREGATE TOTAL NONFARM EMPLOYMENT IS ABOVE PRE-COVID-19 LEVELSDEC. 2024 RANCHO CUCAMONGA SECTORSAHEADOF CALIFORNIA•EDUCA TION•GOVERNMENT•INFORMATION•PROFESSIONAL SCIENTIFIC•ACCOMMODA TIONS •REAL ESTA TE AND RENTAL LEASING•RETAIL TRADE•WHOLESALE TRADE•ADMIN AND SUPPORT SERVICES DEC. 2024RANCHO CUCAMONGA SECTORSBEHIND CALIFORNIA•FINANCE / INSURANCE•MANAGEMENT•OTHER SERVICES•MANUFACTURING•CONSTRUCTION•ARTS AND ENTERTAINMENT•TRANSPORTATION AND WAREHOUSING •HEALTHCARE AND SOCIAL ASSISTANCERED- RANCHO CUCAMONGA GREEN – CALIFORNIA 18

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RANCHO CUCAMONGA - RECENT AND FORECASTED AGGREGATE LEVELS OF EMPLOYMENT*WITH HIGH SPEED RAIL*•FOLLOWING THE DECLINE IN 2020, EMPLOYMENT INCREASED TO 78,388 IN 2022, EXCEEDING ITS PRE-COVID LEVEL•EMPLOYMENT THEN MODERATED, DECLINING SLIGHTLY TO AN ESTIMATED LEVEL OF 77,739 IN 2024 •FOR 2025-2030 THE FORECAST IS FOR EMPLOYMENT TO RISE GRADUALLY TO ABOUT 83,000 IN 2030•REMARK: THE FORECASTED GROWTH IS SOMEWHA T LOWER THAN THE STUDY LAST YEAR•CITY EMPLOYMENT IN 2023 AND 2024 BEING SLIGHTLY BELOW THAT OF 2022•W AREHOUSE/DISTRIBUTION SECTOR HA VING SMALLER EMPLOYMENT GAINS THAN EXPECTED 19 74,55075,36968,04072,12278,38877,13177,73977,88480,29482,78283,71883,57683,042020,00040,00060,00080,000100,000120,0002018201920202021202220232024-Est.2025-F2026-F2027-F2028-F2029-F2030-FCITY OF RANCHO CUCAMONGA: RECENT/EXPECTEDLEVELS OF EMPLOYMENT BY FIRMS LOCATED IN THE CITY*WITH HIGH SPEED RAIL*

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20 1.1%-9.7%6.0%8.7%-1.6%0.8%0.2%3.1%3.1%1.1%-0.2%-0.6%-15%-10%-5%0%5%10%15%2019 /20182020 /20192021 /20202022 /20212023 /20222024-Est. /20232025-F /2024-F2026-F /2025-F2027-F /2026-F2028-F /2027-F2029-F /2028-F2030-F /2029-F CITY OF RANCHO CUCAMONGA: TOTAL EMPLOYMENTCHANGE PER YEAR OVER PRIOR YEAR THROUGH 2030 FORECASTED*WITH HIGH SPEED RAIL*

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LOCATION OF EMPLOYMENT VS. AFFORDABILITY OF HOUSING*WITH HIGH SPEED RAIL*•RANCHO CUCAMONGA’S HOUSEHOLDS WITH JOBS (BLUE LINE) EXCEED THE NUMBER OF JOBS BY FIRMS IN THE CITY (GREEN LINE)•CURRENTL Y ABOUT 20,000 (NET) CITY RESIDENTS COMMUTE TO JOBS OUTSIDE THE CITY , TYPICALLY A T HIGHER SALARIESTHAT ENABLE THEM TO AFFORD HOUSING IN THE CITY .•THE GAP EXPECTED TO DIMINISH, TO A DIFFERENCE OF SOME 18,000 BY 2030 2173,57585,81677,41193,10087,90097,401100,730100,91036,83065,13958,21075,36968,04077,73982,78283,042020,00040,00060,00080,000100,000120,0002000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024-Est.2025-F2026-F2027-F2028-F2029-F2030-FCITY OF RANCHO CUCAMONGA: EMPLOYMENT BY FIRMS AND HOUSEHOLDSWorking Households Residing in Rancho CucamongaFirms - Employees Located in Rancho Cucamonga REMARKOF THE WORKING HOUSEHOLDS THA T RESIDE IN THE CITY (97,401 IN 2024), AN ESTIMA TED 26% (26,450) OF THEM ARE ALSO EMPLOYED BY FIRMS WITHIN THE CITYSO SOME 74% COME INTO RANCHO CUCAMONGA FROM OTHER CITIES THIS IS BASED UPON CENSUS DATA THAT SHOW DRIVING TIMES TO WORKPLACES.

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III. METHODOLOGY UNDERLYING THE COMPOSITION OF EMPLOYMENT BY SECTORS •THE CITY’S EMPLOYMENT FOR 2025-F TO 2030-F IS BASED UPON THE PERFORMANCE OF ITS 17 SECTORS•SECTORS EXPECTED TO CONTINUE THEIR GROWTH BASED UPON RECENT TRENDS: SPECIAL ADJUSTMENTS MADE BASED ON HIGH-SPEED RAIL: TEMPORARY CONSTRUCTION JOBS AS WELL AS SOME ADDITIONAL RELATED ADMINISTRATIVE JOBS AND SUPPORTING SECTOR ROLES•SECTORS THAT HA VE RECENTLY (2018-2024) HAD THE HIGHEST RECENT GROWTH RATES:•EDUCATION (+6%/YR.)•REAL ESTATE (+5%/YR.)•ADMINISTRA TIVE (+4%/YR).•WHOLESALE TRADE (3%/YR.)•SECTORS THAT HA VE HAD THE LOWEST GROWTH RATES ARE:•MANAGEMENT (-8%/YR.)•FINANCE AND INSURANCE (-5%/YR.)•TRANSPORTATION AND W AREHOUSING (-4%/YR.)•MANUFACTURING (-4%/YR.)22

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FORECASTED CHANGE FOR THE HISTORICALLY MOSTLY STABLE SECTORS •LEAST VOLATILE: FROM 2018-2024-EST., NINE SECTORS CHANGED BETWEEN -1% AND +3% PER YEAR (THREE SECTORS DECLINING AND SIX SECTORS RISING)•CONTINUANCE OF OVERALL TRENDS EXPECTED: GROWTH RATES 2018-2024-EST. EXPECTED TO CONTINUE FOR 2024-EST.-2030-F•COLLECTIVELY, THESE ARE EXPECTED TO ADD OVER 2,300 JOBS THROUGH 2030-F23010,00020,00030,00040,00050,00060,0002018201920202021202220232024-Est.2025-F2026-F2027-F2028-F2029-F2030-FCITY OF RANCHO CUCAMONGA: RECENT/EXPECTEDLEVELS OF EMPLOYMENT BY HISTORICALLY MORE STABLE SECTORS InformationArts, Entertainment, andRecreationOther ServicesProfessional, Scientific, Tech.ConstructionRetail TradeHealth Care & Social Assist.Accommodation & FoodGovernment-2%-1%-1%1%2%2%3%3%3%-1%-1%-1%1%2%2%3%3%4%-3%-2%-1%0%1%2%3%4%Construction Other Services Retail Trade Arts,Entertainment,and RecreationAccommodation& FoodInformation Health Care& Social Assist.Professional,Scientific, Tech.GovernmentCITY OF RANCHO CUCAMONGA: SECTOR EMPLOYMENT CHANGE/YEAR FOR 2018 TO 2024-Est. AND 2024-Est. TO 2030-F FOR THE HISTORICALLY MORE STABLE SECTORS W/2018-24-Est. 2018-2024-Est.Avg. Change/Yr.2024-Est.-2030-FAvg. Change/Yr.

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FORECASTED CHANGE FOR HISTORICALLY LARGER CHANGING SECTORS •MOST VOLATILE: FROM 2018-2024-EST., EIGHT SECTORS CHANGED BETWEEN -8% AND -4% PER YEAR AND +3% TO +6% (FOUR SECTORS DECLINING AND FOUR SECTORS RISING)•CONTINUANCE OF OVERALL TRENDS EXPECTED: GROWTH RATES 2018-2024-EST. EXPECTED TO CONTINUE FOR 2024-EST.-2030-F •COLLECTIVELY, THESE ARE EXPECTED TO ADD ABOUT 2,800 JOBS THROUGH 2030-F2405,00010,00015,00020,00025,00030,00035,0002018201920202021202220232024-Est.2025-F2026-F2027-F2028-F2029-F2030-FCITY OF RANCHO CUCAMONGA: RECENT/EXPECTEDLEVELS OF EMPLOYMENT BY HISTORICALLY LARGEST CHANGING SECTORS Management of CompaniesEducational ServicesFinance & InsuranceReal Estate, Rental, LeasingTransportation & WarehousingWholesale TradeManufacturingAdministrative & Support-8%-5%-4%-4%3%4%5%6%-8%-4%-4%-4%3%5%5%6%-10%-8%-6%-4%-2%0%2%4%6%8%Management ofCompaniesFinance &InsuranceTransportation &WarehousingManufacturing Wholesale Trade Administrative &SupportReal Estate, Rental,LeasingEducationalServicesCITY OF RANCHO CUCAMONGA: RECENT/EXPECTED LEVELS OF EMPLOYMENT BY FIRMS LOCATED IN THE CITY FOR THE HISTORICALLY LARGEST CHANGING SECTORS W/2018-24-Est. 2018-2024-Est.Avg. Change/Yr.2024-Est.-2030-FAvg. Change/Yr.

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13%10%7%12%13%13%11%13%15%11%10%9%9%12%14%8%7%6%8%9%10%5%4% 3%5%6%7%4%3%2%4%5%5%3%3%2%0%10%20%30%40%50%60%70%80%90%100%20182024-Est.2030-F CITY OF RANCHO CUCAMONGA: RECENT/EXPECTEDLEVELS OF EMPLOYMENT BY FIRMS LOCATED IN THE CITYSECTOR NONFARM SHARE FOR 2018, 2024-Est., AND 2030-FInformationArts, Entertainment, and RecreationEducational ServicesManagement of CompaniesReal Estate, Rental, LeasingOther ServicesProfessional, Scientific, Tech.Finance & InsuranceWholesale TradeTransportation & WarehousingHealth Care & Social Assist.ConstructionAdministrative & SupportRetail TradeGovernmentAccommodation & FoodManufacturing PRIOR AND FORECAST SECTOR GROWTH COMPOSITION CHANGE2018 TO 2030-F: (+) HIGHEST SHARE GAINS:- ADMINISTRATIVE AND SUPPORT SERVICES (+5%)- GOVERNMENT (+4%)- HEALTHCARE AND SOCIAL ASSISTANCE (+2%)(-) GREATEST SHARE LOSSES:- MANUFACTURING (-6%) - RETAIL TRADE (-2%)NOTE: CHANGES ROUNDED TO NEAREST %25

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IV . HOUSING MARKET: RECENT TRENDS AND FORECASTS CONSUMER SENTIMENTTRENDS/PATTERNS FOR U.S. MORTGAGE RATESOUTSTANDING RESIDENTIAL MORTGAGE STATISTICS RANCHO CUCAMONGA – ANNUAL HOUSING PAYMENTS BY MONTHRANCHO CUCAMONGA: MORTGAGE INTEREST PAYMENTSRANCHO CUCAMONGA HOUSING SUPPLY , DEMAND, AND PRICE APPRECIA TIONRANCHO CUCAMONGA STRONG PRICE APPRECIATIONRANCHO CUCAMONGA: NEW FOR-SALE HOMESRANCHO CUCAMONGA: PLANNED PROJECTS 26

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CONSUMER SENTIMENT (JAN. 2014 – JAN. 2025)•CONSUMER SENTIMENT W AS BETWEEN 80 AND 100 FROM 2014 THROUGH 2019•SENTIMENT FELL FROM JANUARY 2020 A T 101 TO A MINIMUM OF 50 IN JUNE 2022 •THEN SENTIMENT ROSE TO 79 AS OF JAN. 2024•SINCE APRIL 2024, SENTIMENT HAS DECLINED 27020406080100120January 2014July 2014January 2015July 2015January 2016July 2016January 2017July 2017January 2018July 2018January 2019July 2019January 2020July 2020January 2021July 2021January 2022July 2022January 2023July 2023January 2024July 2024January 2025UNITED STATES CONSUMER SENTIMENT INDEX (JAN. 2020 = 100)

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TRENDS/PATTERNS FOR U.S. MORTGAGE RATES SINCE 2018 •MORTGAGE RATES ARE A SECONDARY DRIVER OF HOUSING DEMAND; EMPLOYMENT GROWTH IS TYPICALLY THE PRIMARY DRIVER.•MORTGAGE RATES IN NOVEMBER 2018 HAD A PRIOR PEAK OF 4.9%.•RA TES THEN DECLINED TO THEIR LOWEST LEVEL OF 2.8% IN JANUARY 2021, DUE TO FED POLICIES TO STIMULA TE THE ECONOMY .•RA TES REMAINED AT HISTORICALLY LOW LEVELS, BELOW 3.2%, THROUGH DECEMBER 2021.•DUE TO FED POLICIES TO REDUCE INFLA TION, MORTGAGE RA TES ROSE TO 7.7% IN OCTOBER 2023, BUT RECENTLY FELL TO 6.7%. 284.9%3.7%2.8%3.2%6.9%7.7%6.7%0%1%2%3%4%5%6%7%8%9%10%January 2018April 2018July 2018October 2018January 2019April 2019July 2019October 2019January 2020April 2020July 2020October 2020January 2021April 2021July 2021October 2021January 2022April 2022July 2022October 2022January 2023April 2023July 2023Oct-23Jan. 2024April 2024July 2024Oct-24Jan. 2025 30-YEAR FIXED MORTGAGE RATESUNITED STATES: 30-YEAR FIXED MORTGAGE RATES(JAN. 2018 - MARCH 2025 BY MONTH)

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OUTSTANDING RESIDENTIAL MORTGAGE STATISTICS (2019Q4 – 2024Q4)FROM 2019Q4 TO 2024Q4, FOR CALIFORNIA HOMEOWNERS CHANGES IN MORTGAGE RATE SHARESFOR HOMEOWNERS BELOW 3.0%, PEAK OF 31% IN 2022-Q1, SLIGHT DECLINE TO 29% IN 2024-Q4 FOR HOMEOWNERS BELOW 4.0%, SLIGHT DECLINE FROM 72% IN 2022-Q1 VS 64% IN 2024-Q4** SO SOME HOMEOWNERS WITH LOW RATES MOVING, BUT MAJORITY STAYING IN CURRENT HOMES 85%29

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RANCHO CUCAMONGA – ANNUAL HOUSING PAYMENTS BY MONTH (JAN. 2018 – DEC. 2025 FORECAST) ANNUAL HOUSING PAYMENTS REPRESENT THE SUM OF MORTGAGE PRINCIPAL, MORTGAGE INTEREST RATES AND PROPERTY TAXES 2019-2021: LOWER MORTGAGE RATES OFFSET HOUSING APPRECIATION,PAYMENTS OF $40,000/YR.2022-2023:HIGHER PRICES AND HIGHER MORTGAGE RATES DROVE PAYMENTS HIGHER WITHPEAK PAYMENTS OF $65,000/YR.ANNUAL HOUSINGPAYMENT LEVELS2024-2025:PAYMENTSRELATIVELY STABLE AS MORTGAGE RATES REMAIN HIGH AT ABOUT 6.3% WITH A -8% DECLINE IN PRICES FROM END 2024 TO END 202530$0$10,000$20,000$30,000$40,000$50,000$60,000$70,0001/1/20184/1/20187/1/201810/1/20181/1/20194/1/20197/1/201910/1/20191/1/20204/1/20207/1/202010/1/20201/1/20214/1/20217/1/202110/1/20211/1/20224/1/20227/1/202210/1/20221/1/20234/1/20237/1/202310/1/20231/1/20244/1/20247/1/202410/1/20241/1/20254/1/20257/1/202510/1/2025 ANNUAL HOUSING PAYMENT AMOUNTS (IN 2024 $)RANCHO CUCAMONGA (JAN. '18 - DEC. '25-F) - ESTIMATED ANNUAL HOUSING PAYMENT COMPONENTS (MORTGAGE INTEREST + MORTGAGE PRINCIPAL + PROPERTY TAXES) PROPERTY TAXMORTG-PRINCIPALMORTG-INTERESTMORTGAGE INTEREST RATESMORTGAGE PRINCIPAL (HOUSING PRICE APPRECIATION)PROPERTY TAXES (HOUSING PRICE APPRECIATION)EMPIRE ECONOMICS~$40K+ ~50%DEC. 2021DEC.2023DEC. 2025~$65K

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RANCHO CUCAMONGA – SHARE OF ANNUAL HOUSING PAYMENTS BY MONTH (JAN. 2018 – DEC. 2025F) ANNUAL HOUSING PAYMENTS = MORTGAGE PRINCIPAL + MORTGAGE INTEREST + PROPERTY TAXES FOR THE FIRST YEAR •JAN. 2018:MORTGAGE INTEREST PAYMENT SHARE MADE UP ABOUT34%OF THE TOTAL ANNUAL HOUSING PAYMENT•JAN. 2018 TO DEC. 2021:MORTGAGE INTEREST PAYMENT SHARE DECLINED TO28%:RATES FELL AND PRINCIPAL SHARE ROSE WITH PRICES•DEC. 2021 TO DEC. 2023:MORTGAGE INTEREST PAYMENT ROSE TO49%:RATES ROSE AND PRINCIPAL SHARE FELL•DEC. 2023 TO DEC. 2025:INTEREST PAYMENT EXPECTED TO FALL SLIGHTLY TO46%WITH SOME DECLINES IN MORTGAGE RA TES AND PRICES 310%10%20%30%40%50%60%70%80%90%100%1/1/20185/1/20189/1/20181/1/20195/1/20199/1/20191/1/20205/1/20209/1/20201/1/20215/1/20219/1/20211/1/20225/1/20229/1/20221/1/20235/1/20239/1/20231/1/20245/1/20249/1/20241/1/20255/1/20259/1/2025 ANNUAL HOUSING PAYMENT SHARES (IN 2023 $)RANCHO CUCAMONGA (JAN. '18 - DEC. '25-F) - ESTIMATED ANNUAL HOUSING PAYMENT COMPONENTS (MORTGAGE INTEREST + MORTGAGE PRINCIPAL + PROPERTY TAXES) PROPERTY TAXMORTG-PRINCIPALMORTG-INTERESTMORTGAGE PRINCIPAL (HOUSING PRICE APPRECIATION)PROPERTY TAXES (HOUSING PRICE APPRECIATION)EMPIRE ECONOMICSJAN. 2018DEC2023DEC. 2025MORTGAGE INTEREST RATES34%DEC202145%21%28%50%22%49%35%16%46%37%17%DEC 2024 TO DEC. 2025 PRICES -8%WITH MORTGAGE RATES TO 6.3%

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RANCHO CUCAMONGA – MORTGAGE INTEREST PAYMENTS (JAN. 2020– DEC. 2025F) FOR A ~$800,000 HOUSE PURCHASE, HOUSEHOLDS THA T USED A 3% MORTGAGE RATE IN 2021 HA VE MORTGAGE INTEREST RA TE PAYMENTS OF ABOUT $12,500 A YEARIF SUCH A HOUSEHOLD WERE TO PURCHASE A SIMILAR PRICE HOME IN OCTOBER 2023, WITH A 7.7% MORTGAGE RATE.THIS PAYMENT WOULD BE ABOUT +36,500 A YEAR (~3X) SO THE HOUSEHOLD HAS A STRONG INCENTIVE TO STAY IN THEIR CURRENT HOMESINCE MORTGAGE RA TES ARE EXPECTED TO REMAIN AROUND 6.3% THE PAYMENT IN DEC. 2025 WOULD BE ~$26,500 A YEAR (ADJUSTED FOR W AGE GROWTH) THEREFORE, SINCE MORTGAGE RATES ARE EXPECTED TO REMAIN STABLE, THE INCENTIVES FOR HOMEOWNERS TO STAY IN THEIR CURRENT HOMES WITH HISTORICALLY LOW RATES REMAINS STRONG AND SO THE SUPPLY OF EXISTING HOMES REMAINS CONSTRAINED 32$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,0001/1/20204/1/20207/1/202010/1/20201/1/20214/1/20217/1/202110/1/20211/1/20224/1/20227/1/202210/1/20221/1/20234/1/20237/1/202310/1/20231/1/20244/1/20247/1/202410/1/20241/1/20254/1/20257/1/202510/1/2025 MORTGAGE INTEREST PAYMENT - ANNUALLY RANCHO CUCAMONGA (JAN. '20 - DEC. '25-F) - MORTGAGE INTEREST AND MORTGAGE PRINCIPAL - HOMEOWNERS WITH HISTORICALLY LOW RATES (~$800K PRICED HOME OVER TIME) MORTG-INTERESTMORTG-INTEREST - ABOVE HISTORICAL LOWMORTGAGE INTEREST PAYMENTS - HISTORICALLY LOW ($12,500)EMPIRE ECONOMICSMORTGAGE INTEREST PAYMENTS - ABOVE HISTORICALLY LOW $12,500/YR. $26,500/YR.$30,000-35,000/YR.

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RANCHO CUCAMONGA HOUSING SUPPLY, DEMAND, AND PRICE APPRECIATION (JAN. 2018 – FEBRUARY 2025)A. IN 2018 TO EARLY 2020, THE CITY HOUSING INVENTORY(SUPPLY/RED)WAS HIGHER THAN PENDING SALES(DEMAND/ORANGE), NORMALB. HOWEVER, BEGINNING IN2NDQUARTER OF 2020, HOUSING DEMAND AND SUPPLY STARTED TO CONVERGE AND MET IN 2021.C. ONCE SUPPL Y AND DEMAND CURVES STARTED TO CONVERGE, THIS RESULTED IN A SIGNIFICANT INCREASE INPRICE APPRECIATION.D. DURING 2022,INVENTORY EXCEEDED PENDING SALES, CLOSER TO NORMAL PATTERNS, BUTINVENTORY IS STILL LOW DUE TO HIGH RATES.SINCE 2023, WITH HIGH MORTGAGE RATES,INVENTORY DECLINED TO LEVELS ONLY SLIGHTLY ABOVE SALES. 33

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RANCHO CUCAMONGA STRONG PRICE APPRECIATION (JAN. 2018 – FEBRUARY 2025)DESPITE HIGHER MORTGAGE RATES – UNIQUE EVENT 34 •THE RECENT HOUSING PRICE APPRECIA TION HAS BEEN DRIVEN BY HIGHER MORTGAGE RATES WHICH IS A UNIQUE EVENT.•DURING 2018 TO 2021. MORTGAGE RA TES DECLINED BUT HOUSING PRICE APPRECIATION W AS MINIMAL.•HOWEVER, STARTING IN 2022 AND CONTINUING THEREAFTER AS MORTGAGE RA TES ROSE, HOUSING PRICE APPRECIATION ACCELERATED.•THIS UNIQUE EVENT REFLECTED OWNERS OF EXISTING HOMES WITH MORTGAGE RA TES STAYING IN THEIR HOUSES.•FOR THE EXISTING HOUSING MARKET, THE LEVEL OF DEMAND EXCEEDED SUPPL Y RESULTING IN STRONG APPRECIATION. •SINCE 2023, THOUGH MORTGAGE RA TES ABOVE 6.5%, APPRECIATION HAS CONTINUED DUE TO THE LIMITED INVENTORY .3%41%53%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%70%2018-03-012018-06-012018-09-012018-12-012019-03-012019-06-012019-09-012019-12-012020-03-012020-06-012020-09-012020-12-012021-03-012021-06-012021-09-012021-12-012022-03-012022-06-012022-09-012022-12-012023-03-012023-06-012023-09-012023-12-012024-03-012024-06-012024-09-012024-12-0130-YEAR FIXED MORTGAGE RATES RANCHO CUCAMONGA PENDING PRICE CHANGE SINCE JAN. 2018RANCHO CUCAMONGA PENDING LISTINGS AND HOUSING INVENTORY , AND CUMULATIVE LAGGED 12 MONTH HOUSING PRICE CHANGE SINCE (JANUARY 2018 - FEBRUARY 2025)RANCHO CUCAMONGA HOUSING PRICE CHANGE30 YEAR FIXED MORTGAGE RATESMORTGAGE RATES REMAINED AT HIGH LEVELS OF 6.5-7% IN 20242020 Q2: FIRSTQUARTER OF SIGNIFICANT COVID FEB. 2025DESPITE INCREASING MORTGAGE RATES, HOUSING PRICES CONTINUED TO RISE,

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35 RANCHO CUCAMONGA RECENT HOUSING MARKET CONDITIONSHOUSING PRICES HA VE CONTINUED TO RISE WHILE SALES HA VE DECLINED SIGNIFICANTLY. $0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000$1,000,000Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23Jul-23Jan-24Jul-24Jan-25RANCHO CUCAMONGA - EXISTING/NEW HOME PRICE PATTERNSMONTHLY AND MOVING AVERAGESDETACHEDATTACHED020406080100120140160180200Jan-15Jul-15Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20Jan-21Jul-21Jan-22Jul-22Jan-23Jul-23Jan-24Jul-24Jan-25RANCHO CUCAMONGA - EXISTING/NEW HOME SALES TRENDS MONTHLY AND MOVING AVERAGESDETACHEDATTACHED

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PRIOR SALES AND PRICES FOR NEW HOME PROJECTS •THE MARKET FOR NEW FOR-SALE HOMES PEAKED IN 2021:•SALES AMOUNTED TO 578 HOMES.•THE V ALUE RATIO (PRICE/LIVING AREA) SURGED TO $428.•THE REMAINING CLOSED OUT IN EARLY 2022.214104112189197305272316636729530857817$173$142$179$174$206$217$236$241$253$287$290$300$42801002003004005006007002009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022CITY OF RANCHO CUCAMONGANEW RESIDENTIAL PROJECTS: SALES TRENDS AND PRICE PATTERNS Sale Rate - AnnuallyValue Ratio-Avg.36 RANCHO CUCAMONGA: NEW FOR-SALE HOMESRECENT SALES, UNDER CONSTRUCTION AND PLANNED PROJECTS NEW RESIDENTIAL PROJECT UNDER CONSTRUCTIONSYCAMORE HEIGHTS BY LENNAR HOMES IS A NEWL Y DEVELOPINGPROJECT WITH 175 A TTACHED CONDOMINIUMS LOCATED NEAR FOOTHILLBLVD. AND REDHILL COUNTRY CLUB DRIVE THA T ARE CURRENTL YUNDER CONSTRUCTION. CONDOS ARE EXPECTED TO HA VE 1335 – 2199SQ.FT. OF LIVING AREA.FORTHCOMING RESIDENTIAL PROJECTS WITH FOR-SALE HOMES THERE ARE ALSO THREE OTHER PLANNED PROJECTS IN THE RESORTNORTH WITH 258 PLANNED SINGLE-FAMILY A TTACHED. HOMES/ CONDOS..Project Name Location Units DescriptionDevelopment/ Planning StatusSycamore HeightsNorth side of Foothill Boulevard, between Red Hill Country Club Drive and the Pacific Electric Trail Right-of-Way175 175 attached condominiums Under ConstructionResort North PA N15 Lot 129097 Cleveland Ave9999 single-family attached units, 3-story condosEntitled, Not Yet GradingResort North PA N14 Lot 1NEC 6th Street and "B" Street8484 condos mix of 2-3 bedroomsEntitled, Not Yet GradingResort North PA 12 Lot 79097 Cleveland Avenue7575 attached 3-story condosEntitled, Not Yet GradingTOTALS 433

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37 RANCHO CUCAMONGA: PLANNED PROJECTS RICHLAND TRACT: FORTHCOMING NEW HOME PROJECT SOURCE: RANCHO CUCAMONGA PLANNING DEPARTMENT “Originally approved in 2004, a development project consisting of 151acres of land located north of Wilson Ave. between Etiwanda Ave. andEast Ave.The product mix is expected to be 358 single family detached homesand 24,924 square feet of commercial space.Lot sizes will vary, with an average lot size of 11,000 square feet.The property has been graded and parcels have been sold to variousbuilders.Home designs have not yet been submitted or approved by the City.ௗThe builders would need to secure these approvals and thenconstruction of the homes could commence.ETIW ANDA HEIGHTS SOURCE: RANCHO CUCAMONGA PLANNING DEPARTMENT Previously approved for 3,000 housing units.Project currently in discussions with the City regarding potentialchanges in the number of housing units.Currently no grading activity on the site.Project market-entry timing uncertain.

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V. MARKET CONDITIONS FOR APARTMENT RENTALSOVERVIEW OF APARTMENT RENTAL RATE TRENDS AND APPRECIATION RATES FOR RANCHO CUCAMONGA AND SAN BERNARDINO COUNTYCHARACTERISTICS OF THE NEW APARTMENT PROJECTSRECENTLY LEASED, ALL UNITS LEASED ONCEUNDER CONSTRUCTION & FUTUREOVERVIEW OF RENTS FOR RECENTLY LEASED APARTMENT PROJECTSRANCHO CUCAMONGA: CHARACTERISTICS OF RECENTLY LEASED NEW APARTMENT PROJECTSESTIMATED ABSORPTION SCHEDULES FOR NEW APARTMENT PROJECTS 38

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OVERVIEW OF APARTMENT RENTAL RATE TRENDS RANCHO CUCAMONGA AND SAN BERNARDINO COUNTY•RANCHO CUCAMONGA RENTS INCREASED FROM $1,727 IN 2015 TO $2,798 RECENTL Y , + 62%.•WHILE SAN BERNARDINO COUNTY (SBC) RENTS INCREASED FROM AROUND $1,308 IN 2015 TO $2,484 RECENTL Y , +89%.•SO RANCHO CUCAMONGA RENT LEVELS ARE HIGHER THAN SBC BUT THEIR PERCENT CHANGE DURING 2015-2023 W AS LOWER. 39$0$250$500$750$1,000$1,250$1,500$1,750$2,000$2,250$2,500$2,750$3,0001/1/20157/1/20151/1/20167/1/20161/1/20177/1/20171/1/20187/1/20181/1/20197/1/20191/1/20207/1/20201/1/20217/1/20211/1/20227/1/20221/1/20237/1/20231/1/20247/1/20241/1/2025RECENT APARTMENT RENTAL TRENDS - EXISTING APARTMENTS RANCHO CUCAMONGA AND SAN BERNARDINO COUNTYRancho CucamongaSan Bernardino County

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OVERVIEW OF APARTMENT RENTAL APPRECIATION RATES RANCHO CUCAMONGA AND SAN BERNARDINO COUNTY•SAN BERNARDINO COUNTY (SBC) APARTMENTS EXPERIENCED APPRECIA TION OF 7.0%/A VG. ANNUALLY FROM 2015 TO 2024. •RANCHO CUCAMONGA (RC) APPRECIATION AMOUNTED TO 5.3%/A VG. ANNUALLY , SOMEWHA T LOWER.•IN SUMMER 2021 SBC AND RC BOTH EXPERIENCED PEAK APPRECIA TION RA TES OF ABOUT ~20%/yr.•HOWEVER, SINCE JANUARY 2023, BOTH SBC AND RC EXPERIENCED LOWER APPRECIATION, LESS THAN 4%/YR.•RECENTL Y , SB’S RENT INCREASED BY ABOUT 4.0%/YR WHILE RC’S APPRECIATION RA TE W AS ABOUT 2%/YR. 40-6%-4%-2%0%2%4%6%8%10%12%14%16%18%20%22%24%26%1/1/20167/1/20161/1/20177/1/20171/1/20187/1/20181/1/20197/1/20191/1/20207/1/20201/1/20217/1/20211/1/20227/1/20221/1/20237/1/20231/1/20247/1/20241/1/2025RECENT APARTMENT RENTAL APPRECIATION - EXISTING APARTMENTS RANCHO CUCAMONGA AND SAN BERNARDINO COUNTYRancho CucamongaSan Bernardino County

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CHARACTERISTICS OF THE NEW APARTMENT PROJECTSRECENTLY LEASED, UNDER CONSTRUCTION & FUTURE(SOURCES: CITY OF RANCHO CUCAMONGA & EMPIRE ECONOMICS) 41 PROJECT NAMES LOCATIONPLANNED UNITSCOMMERCIAL SQ.FT.DESCRIPTIONUNITS LEASED/ ONCE+PLANNING DEPARTMENTRECENTLY LEASEDHomecoming at the Resort The Resort 867 5,000867 Apartments with commercial component867 The Core/La Mirage NWC of Foothill and East 193 3,246193 Unit Mixed Use Development with 3,246 square feet of 193 WestburyWest Side of East Avenue North of Foothill131 1,500133 Unit Mixed Use Project131 TOTAL 1,191 9,746 UNDER CONSTRUCTIONAlta Merita/Alta CurveeSEC of Foothill Blvd and Etiwanda Ave260 2,253260-Unit Mixed-Use Apartments.Pre-LeasingHaven and Arrow SWC Haven and Arrow 248 23750Mixed-use project with 248 units, 23,750 sf ground floor Started ConstructionTOTAL 508 26,003

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CHARACTERISTICS OF THE NEW APARTMENT PROJECTSRECENTLY LEASED, UNDER CONSTRUCTION & FUTURE(SOURCES: CITY OF RANCHO CUCAMONGA & EMPIRE ECONOMICS) 42 PROJECT NAMES LOCATIONPLANNED UNITSCOMMERCIAL SQ.FT.DESCRIPTIONUNITS LEASED/ ONCE+PLANNING DEPARTMENTFUTURE: NEAR TERM-EST.Alexan at Victoria Gardens Vicinity of Victoria Gardens 385 No CommercialIn Pre-Inspection. Likely to begin grading by end of AprilHarvest at Terra VistaNWC of Foothill Blvd and Milliken Ave660 20,841660-Unit Mixed Use Apartments with 20,841 SF of Expected to begin construction by end of 2025FUTURE 2026-EST.Foothill & GroveNEC Foothill Blvd and Grove Ave308 147044-Story mixed-use project with 308 unitsBuilding Permit Required by 6/12/2026Lions GateNEC Foothill Blvd and Lion St141 0141 Apartments with 12 (11%) very-low income unitsBuilding Permit Required by 8/14/2026FUTURE 2027-EST.Foothill Landing NE of Foothill & Etiwanda 367 7300Mixed-use project with 367 units, 7,300 sf. commercialBuilding Permit Required by 4/9/202733 North SEC of Foothill and Haven Avenue311 16,000311 Unit Mixed Use DevelopmentBuilding Permit Required by 5/9/2027Spruce & Red OakNWC of Spruce Ave and Red Oak Str.176 5670176 Apartments with 5,670 Non-ResidentialBuilding Permit Required by 8/20/2027Leap DevelopmentSW Corner Carnelian & Foothill158 No CommercialBuilding permit Required by 10/26/2027FUTURE TOTAL 2,506 64,515TOTALS 4,205 100,264

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43 CODES PROJECT NAMESRECENTLY LEASED1 Homecoming at the Resort2 The Core/La Mirage3 WestburyUNDER CONSTRUCTION4 Alta Merita/Alta Curvee5 Haven and ArrowFUTURE: NEAR TERM-EST.6 Alexan at Victoria Gardens7 Harvest at Terra Vista FUTURE 2026-EST.8 Foothill & Grove9 Lions GateFUTURE 2027-EST.10 Foothill Landing11 33 North 12 Spruce & Red Oak13 Leap Development RANCHO CUCAMONGA: RECENT NEW AND FUTURE APARTMENT PROJECTS (APPROXIMATE LOCATIONS) 12345679811101312

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RANCHO CUCAMONGA NEW APARTMENT PROJECTSRECENTLY LEASED, UNDER CONSTRUCTION AND FUTURE THERE ARE A TOTAL OF 13 APARTMENT PROJECTS THA T HA VE ENTITLEMENTS FOR 4,205 UNITS3 PROJECTS WITH 1,191 HA VE BEEN LEASED/OCCUPIED2 PROJECTS UNDER CONSTRUCTION: 508 PLANNED UNITS 8 FUTURE PROJECTS WITH 2,506 PLANNED UNITS 448671931311,1912602485083856603081413673111761582,50605001,0001,5002,0002,5003,000RANCHO CUCAMONGA NEW APARTMENT PROJECTSCURRENT PROJECT STATUSTOTAL UNITSLEASED UNITS

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OVERVIEW OF RENTS FOR RECENTLY LEASED APARTMENT PROJECTS•LIVING AREAS/A VG. 938 SQ.FT. FOR WESTBURY , 1,057 FOR THE CORE, AND 1,082 SQ.F.T. FOR THE HOMECOMING•MONTHLY RENTS/A VG. $2,867 FOR THE CORE, $3,130 FOR WESTBURY AND $3,080 FOR THE HOMECOMING•COMPARING 2025 TO 2024 RENTS LEVELS, THE CHANGES WERE AS FOLLOWS: THE CORE -1.3%, HOMECOMING -2.6% , WESTBURY -11.0% •THE TYPICAL/A VERAGE 2025 RENTS/SQ.FT. $2.71 FOR THE CORE, $2.85 FOR HOMECOMING AND $3.34 FOR WESTBURY 45$3,161$2,905$2,819$2,962$3,080$2,867$3,130$3,026$2.85$2.71$3.34$2.95-$5.00-$4.00-$3.00-$2.00-$1.00$0.00$1.00$2.00$3.00$4.00$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000HOMECOMI NG THE CORE WESTBURY RANCHO CUCAMONGARANCHO CUCAMONGA NEW APARTMENT PROJECTS OVERVIEWRENT-2024, RENT-2025 AND AND 2025-RENT/SQ.FT.RENT-2024RENT 20252025 RENT/SQ.FT.

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46 APARTMENTLIVING AREA MARCH 2025RENTS MARCH 2025CHANGE 2025 VS. 2024HOMECOMING 825827 $2,725 -3.5%777 $2,875 7.3%819 $2,578 -6.0%821 817912 $2,798 -2.8%1,045 $2,997 -7.2%1,0461,0921,142 $3,287 9.6%1,0971,112 $3,134 0.5%1,336 $3,699 4.5%1,6801,438 $3,629 3.0%1,602AVERAGES 1,082 $3,080 0.59% APARTMENTLIVING AREA MARCH 2025RENTS MARCH 2025CHANGE 2025 VS. 2024THE CORE 734 $2,530 1.2%763 $2,570 9.4% 1,043 1,127 1,280 $3,500 7.0% 1,396 1,968 2,631 3,185 AVERAGES 1,057 $2,867 5.9% WESTBURY 694 745 765 1,098 1,035 1,060 $3,070 -1.9%1,167 $3,190 -6.3%1,098 AVERAGES 938 $3,130 -4.1% RANCHO CUCAMONGA: CHARACTERISTICS OF RECENTLY LEASED NEW APARTMENT PROJECTS

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•ABSORPTION AMONG THE PROJECTS IS PRIORITIZED ACCORDING TO THEIR CURRENT DEVELOPMENT APPROV AL STA TUS.•EMPIRE ALLOWS FOR A ONE YEAR TIME PERIOD BETWEEN THE ISSUANCES OF THE BUILDING PERMIT AND OCCUPANCIES•BASED UPON RECENT MARKET CONDITIONS, THE ABSORPTION FOR APARTMENTS AMOUNTS TO ABOUT 525 UNITS ANNUALLY•THE PACE OF NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTS•SHOULD EXCESS UNITS ENTER THE MARKETPLACE, RENTS WOULD NEED TO BE LOWERED TO MAINTAIN ABSORPTIONESTIMATED ABSORPTION FOR NEW APARTMENT PROJECTS 4702004006008001,0001,2001,400NUMBER OF APARTMENT RENTAL'S - ANNUALLYRANCHO CUCAMONGA NEW APARTMENT PROJECTSRECENTLY LEASED, ACTIVE/LEASING, CONSTRUCTION AND FUTURERECENTLY LEASEDUNDER CONSTRUCTIONOPEN - 2026OPEN 2027OPEN 2028+REMARK: POTENTIAL “OPEN” DA TES PER PLANNING APPROV ALSABSORPTION /OCCUPANCY BASED UPON EMPIRE’S FORECAST

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ESTIMATED ABSORPTION SCHEDULES FOR NEW APARTMENT PROJECTS THE PACE OF NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTS.SHOULD EXCESS UNITS ENTER THE MARKETPLACE, RENTS WOULD NEED TO BE LOWERED TO MAINTAIN ABSORPTION. 48 RECENTLY UNDER FUTURE FUTURE FUTURE TOTALLEASED CONSTRUCTION START 2025 START 2026 START 2027 PLANNED UNITS 1,191 508 1,045 449 1,012 4,2052022 208 0 0 0 0 2082023 284 0 0 0 0 2842024 525 0 0 0 0 525Jan.-March 2025 174 0 0 0 0 174April-Dec. 2025 0 260 0 0 0 2602026 0 248 277 0 0 5252027 0 0 525 0 0 5252028 0 0 243 282 0 5252029+ 0 0 0 167 1,012 1,179TOTAL 1,191 508 1,045 449 1,012 4,205

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VI. CURRENT STATE OF W AREHOUSE/DISTRIBUTION MARKET IN RANCHO CUCAMONGA THE CHARACTERISTICS OF THE RANCHO CUCAMONGA (RC) INDUSTRIAL MARKET ARE NOW DISCUSSED, AND COMPARED TO THOSE OF THE INLAND EMPIRE (IE) AS A WHOLE.WHILE WAREHOUSE/DISTRIBUTION (W/D) REPRESENTS THE MAJOR COMPONENT OF THE INDUSTRIAL PROPERTY DESCRIPTION, IT ALSO INCLUDES SOMEMANUFACTURING AND RESEARCH DEVELOPMENT AS WELL.HOWEVER, SINCE THE SAME INDUSTRIAL METRICS ARE UTILIZED FOR BOTH THE INLAND EMPIRE (IE) AND RANCHO CUCAMONGA (RC) GEOGRAPHIC AREAS, THEN COMPARISONS BETWEEN THEM ARE MEANINGFUL.THE RECENT V ACANCY RA TE AMOUNTS TO 7.0% FOR RC AND 7.1% FOR IETHE CURRENT ASKING LEASE RA TE AMOUNTS TO $1.25/SQ.FT. FOR RC AND $1.03/SQ.FT. FOR IE; 49$1.75$1.25$1.41$1.03$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00LEASE RATE/SQ.FT.RECENT LEASE RATE TRENDS FOR WAREHOUSE/DISTRIBUTIONSPACE IN RANCHO CUCAMONGA3.5%7.0%4.9%7.1%0%1%2%3%4%5%6%7%8%VACANCY RATERECENT VACANCY RATE TRENDS FOR WAREHOUSE/DISTRIBUTIONSPACE IN RANCHO CUCAMONGA AND INLAND EMPIRE

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50 RANCHO CUCAMONGA W AREHOUSE/DISTRIBUTIONRANCHO CUCAMONGA HAS RECENTL Y EXPERIENCED A SIGNIFICANT AMOUNT OF ACTIVITY IN THE W AREHOUSE DISTRIBUTION SECTOR.RECENTL Y SOLD AND INITIALLY LEASED: 5 BUILDINGS WITH 2,874,380 SQ FT.NEWL Y BUILT/A V AILABLE: 2 BUILDINGS WITH 209,325 SQ.FT.UNDER CONSTRUCTION : 1 BUILDING WITH 91,269 SQ.FT.FOR FUTURE CONSTRUCTION THERE IS 1 BUILDING WITH 74,387 SQ. FT.2,874,380209,32591,26974,3870500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,000RANCHO CUCAMONGA: WAREHOUSE/DISTRIBUTION DEVELOPMENT AND MARKETING ACTIVITY

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51 RANCHO CUCAMONGA W AREHOUSE/DISTRIBUTION BUILDINGSRECENTLY BUILT, UNDER CONSTRUCTION AND IN PLANNING Project NameLocation# of BuildingsSquare FootageDescriptionDevelopment/ Planning StatusBUILT/LEASEDBridge Point 12434 4th Street 2 2,200,0002,200,000 square feet between two industrial warehouse buildingsC urrently LeasedC ommercial Warehouse 9150 Hyssop 1 23,38023,380 square foot commercial warehouse buildingLeased as of April 2024Napa Industrial DevelopmentNorth of Napa St, East of Etiwanda Ave2 651,0002 warehouse buildings with a combined square footage of 651,000C urrently LeasedJersey Industrial C omplex 11280 Jersey Boulevard 1 159,580159,580 warehouse buildingC onstructed, not yet leasedArrow and Rochester Industrial NEC Arrow and Rochester 1 49,74549,745 square foot warehouse with officeC onstructed, not yet leasedTOTAL 3,083,705UNDER CONSTRUCTIONPatriot Partners 4th and HermosaNEC 4th St and Hermosa Ave2 91,2692 warehouse buildings with combined square footage of 91,369Under C onstructionTOTAL 91,269FUTURENewcastle 6th Street 9910 6th Street 2 74,3872 industrial/warehousing buildings with combined square footage of 74,387Entitled, not yet in plancheckTOTAL 74,387

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Resume: Joseph T. Janczyk, Ph.D.President of Empire EconomicsEducation:University of California, Riverside, Ph.D. in Economics, Completed in 1976Specializations in Urban Economics, Mathematical Modeling and Econometric AnalysisState University of New York at Buffalo, Bachelors, Completed in 1970Dual Majors: Economics and Psychology Prior Employment: California State University, Tenured Economics Professor: 1976-1985Courses Taught: Microeconomics, Macroeconomics, Urban Economics, Regional, Computer Modeling, Econometrics, among othersEmpire Economics:Chairman and President: 1986-Present Perform Independent Real Estate Consulting Services Primarily for Land Secured FinancingsWork for Public Entities including Counties, Cities, School Districts and Water Districts Long-term Relationships with Many Clients, 25+ years Well Established Relationships with Numerous Professionals in the Municipal Finance Industry Performed 500+ Studies on behalf of Public Entities for $15B+ in municipal financingoLand Secured Financings for Planned Communities, Business Parks and Retail Centersfor 400+ CFDs/ADs for $7.5B bondsPrice Point Study – Establish Special Taxes that conform to public entities’ policies Market Absorption Studies - Provide timelines for phasing infrastructureHomeowner Equity Studies and Forecasts of Assessed Values Economic Forecasting Studies: Forecast Employment and Housing DemandSocioeconomic Studies Orange County Transportation Corridors: 2 studies $2.75B bondsoDesignated as Municipal Bond Issue of the Year for 1999 oRating Agency and Bond Insurer Presentations – Trips to New York CityMortgage Revenue Bond Issues: Lower Mortgage Rates 50+ studies for $1.7B bondsOther Municipal Bond Issues: 35+ studies $2B+ bonds; Certificates of Participation, others Forthcoming Bond Issues: 25+ studies for $400M+ future bond salesIndustry Contributions – Regular Speaker/Panelist at Following Events: State Treasurer, Mr. John Chiang: Council of Economic Advisors: January 2015 – December 2018oBi-annual meetings and published articles in the Treasurer’s Newsletter, IntersectionsUCLA Municipal Bond Financing Seminars (10+ times, as Featured Speaker) Bond Buyer Conference League of Cities Municipal Bond Industry Association Best Practices for Continuing Disclosure Appraisal Standards for Land Secured Financing by CDIAC Meetings with Municipal Bond Funds Dedicated to Public Sector: Certifications Provided in each Study:Empire has not performed any consulting services for the CFD/AD property owners nor the developers/builders, during the past thirty+ years.Empire will not perform any consulting services for the CFD/AD property owners nor the developers/builders, during the next five years. 52

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CITY OF RANCHO CUCAMONGASUPPLEMENTAL RESEARCH(ENHANCEMENTS TO ANNUAL STUDY)COMPONENT 1: DETAILED ANALYSIS OF SECTORSRESIDENTIAL AND EMPLOYMENT (Page 52)COMPONENT 2: BRIEF BW-HSR UPDATE ON FEBRUARY 2024 STUDY (Page 73)COMPONENT 3: DEVELOPMENT IMPACT FEES (Page 79)COMPONENT 4: SOCIOECONOMIC CHARACTERISTICS (Page 89)OF APARTMENT TENANTSPREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.53

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CITY OF RANCHO CUCAMONGASUPPLEMENTAL RESEARCH(ENHANCEMENTS TO ANNUAL STUDY)COMPONENT 1: DETAILED ANALYSIS OF SECTORSRESIDENTIAL AND EMPLOYMENTPREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.54

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55 OVERVIEW EXECUTIVE SUMMARYI MACROECONOMIC CONDITIONS UNDERLYING THE ANALYSISBROAD NA TIONAL ECONOMIC AND FINANCIAL FACTORS.RECENT EMPLOYMENT TRENDS IN SOUTHERN CALIFORNIA.II. RESIDENTIAL SECTORSUNIQUE HOUSING MARKET CONDITIONS DUE TO COVID 19 APPRECIATION DESPITE HIGH MORTGAGE RATESIMPACT ON NEW FOR-SALE HOME PROJECTSIMPACT ON NEW MULTIFAMILY APARTMENT PROJECTSIII. EMPLOYMENT SECTORS RECENT TRENDS AND FORECASTSMANUFACTURINGRETAIL TRADECONSTRUCTION AND HIGH-SPEED RAILW AREHOUSE DISTRIBUTION AND WHOLESALE TRADERESTAURANTS AND HOTELSOFFICE AND RELA TED FACILITIESGOVERNMENT: ALL LEVELS

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56 EXECUTIVE SUMMARY: HIGHLIGHTS CITY’S RATE OF EMPLOYMENT GROWTH EXPECTED TO BE ONLY MODERATEIMPACTS DEVELOPMENT POTENTIAL FOR RESIDENTIAL AND NON-RESIDENTIAL PRODUCTS RESIDENTIAL FOR-SALE DETACHED HAS LIMITED POTENTIALCITY MOSTLY DEVELOPED - SCARCITY OF LARGE V ACANT PARCELS RESIDENTIAL FOR-SALE ATTACHED HAS MODERATE POTENTIALIN-FILL PROJECTS ALONG WITH SOME MIXED USE RESIDENTIAL APARTMENTS HA VE STRONG POTENTIALBUT SOME CONCERN ABOUT MANY PROJECTS IN THE PLANNING PROCESSHIGH SPEED RAIL HAS STRONG INTERMEDIATE POTENTIAL WITH 2029 OPENING VISITOR RELATED PRODUCTS: HOTELS, RESTAURANTS, ENTERTAINMENT & SHOPPINGCONSTRUCTION OF HSR DURING 2026-2029 IMPACTS NEAR TERM ONLY

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57 EXECUTIVE SUMMARY: DEVELOPMENT POTENTIAL BY SECTORSRESIDENTIAL SECTORS : UNIQUELY BENEFITING FROM SPILLOVER OF DEMAND FROM THE EXISTING HOUSING MARKET.UNIQUE HOUSING MARKET CONDITIONS DUE TO COVID 19: STRONG APPRECIATION DESPITE HIGH MORTGAGE RA TESNEW FOR-SALE DETACHED HOMES – NO PROJECTS CURRENTL Y CURRENTL Y , A TTACHED FOR-SALE PROJECT BENEFICIAL FOR NEW MULTIFAMILY/APARTMENT PROJECTS STRONG NOW BUT MANY MORE UNITS IN PLANNINGEMPLOYMENT SECTORS RECENT TRENDS AND FORECASTS – BASED UPON *EMPLOYMENT* TRENDS HIGH-SPEED RAILCONSTRUCTION LIMITED TO 2026-2029LONG-TERM: POTENTIAL FOR HOTELS, RESTAURANTS, RETAIL -1.4%1.0%-0.5%-2.3%-0.3%2.5%-2.6%5.5%-3.2%-1.1%-1.9%0.6%1.3%1.6%2.7%3.8%-6%-4%-2%0%2%4%6%8% MANUFACTURING RETAIL TRADE CONSTRUCTION & HSRWAREHOUSE/DISTRIBUTION*** AGGREGATE ***RESTAURANTS AND HOTELSTOTAL OFFICE & RELATED GOVERNMENTRANCHO CUCAMONGA RECENT/EXPECTED GROWTH RATES BY SECTORS - ANNUALLY2022-2024/YR.2024-2030/YR.

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58 I. MACROECONOMIC CONDITIONS UNDERLYING THE ANALYSISBROAD NATIONAL ECONOMIC AND FINANCIAL FACTORS.RECENT EMPLOYMENT TRENDS IN SOUTHERN CALIFORNIA..

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59 BROAD NATIONAL ECONOMIC AND FINANCIAL FACTORS
.COVID-19 - MARCH 2020: ECONOMY SHUTDOWN; POTENTIAL FOR MAJOR RECESSIONSIGNIFICANT PROACTIVE POLICIES UNDERTAKEN BY THE FEDERAL RESERVE BOARD (MONETARY) AND FEDERAL GOVERNMENT (FISCAL).. ..RECESSION A VOIDED BUT INFLA TION SURGES TO PEAK LEVEL IN JANUARY 2022.FED RAISE THE SHORT-TERM RA TES, INFLATION DECLINES TO ABOUT 3%.POTENTIAL STAGFLATION: INFLA TION ABOVE 2% TARGET AND EMPLOYMENT GROWTH MODERA TE.

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60 RECENT EMPLOYMENT TRENDS IN SOUTHERN CALIFORNIARANCHO CUCAMONGA (CITY), RIVERSIDE AND SAN BERNARDINO COUNTIES (R-SB) , CALIFORNIA (CA) AND ORANGE COUNTY (OC)ALL OF THE GEOGRAPHIC AREAS EXPERIENCED A SIMILAR PATTERN WITH MODERA TE GROWTH IN 2019, RECESSION IN 2020, RECOVERY IN 2021 AND 2022 AND THEN MINIMAL/SLIGHTLY NEGATIVE GROWTH IN 2023 AND 2024.DURING 2018 TO 2024, RANCHO CUCAMONGA GREW BY 4.3% PERCENT, HIGHER THAN ORANGE COUNTY AND CALIFORNIABUT LOWER THAN THE INLAND EMPIRE DUE TO W AREHOUSE/DISTRIBUTION AND MODERATEL Y PRICED NEW HOMES.1.1%-9.7%6.0%8.7%-1.3%0.5%4.3%-15%-10%-5%0%5%10%15%2019 /20182020 /2019 2021 /2020 2022 /2021 2023 /20222024 /20232024 /2018RECENT EMPLOYMENT TRENDS - ANNUAL GROWTH RATESRANCHO CUCAMONGA, CALIFORNIA, INLAND EMPIRE, ORANGE COUNTYRANCHO CUCAMONGAORANGE COUNTYRIVERSIDE-SAN BERNARDINOCALIFORNIA

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61 II. RESIDENTIAL SECTORSUNIQUE HOUSING MARKET CONDITIONS DUE TO COVID 19 APPRECIATIONDESPITE HIGH MORTGAGE RATESIMPACT ON NEW FOR-SALE HOME PROJECTSIMPACT ON NEW MULTIFAMILY APARTMENT PROJECTS

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62 UNIQUE HOUSING MARKET CONDITIONS DUE TO COVID 19 APPRECIATIONDESPITE HIGH MORTGAGE RATESALTHOUGH MORTGAGE RATES DECLINED IN 2021, HOUSING PRICE APPRECIA TION W AS MINIMAL..STARTING IN 2022 , EVEN THOUGH MORTGAGE RA TES ROSE, APPRECIA TION ACCELERA TED.A UNIQUE EVENT!IN 2021 A $800,000 HOUSE WITH A 3% MORTGAGE RATE WOULD HA VE MORTGAGE INTEREST OF ABOUT $12,500 A YEARRECENTL Y WITH A 6.3% MORTGAGE RATE.THIS PAYMENT WOULD BE ABOUT +$26,500 MOREHOUSEHOLD WITH LOW MORTGAGE RATES HA VE A STRONG INCENTIVE TO STAY IN THEIR CURRENT HOMES.$0$5,000$10,000$15,000$20,000$25,000$30,000$35,000$40,0001/1/20204/1/20207/1/202010/1/20201/1/20214/1/20217/1/202110/1/20211/1/20224/1/20227/1/202210/1/20221/1/20234/1/20237/1/202310/1/20231/1/20244/1/20247/1/202410/1/20241/1/20254/1/20257/1/202510/1/2025 MORTGAGE INTEREST PAYMENT - ANNUALLY RANCHO CUCAMONGA (JAN. '20 - DEC. '25-F) - MORTGAGE INTEREST AND MORTGAGE PRINCIPAL -HOMEOWNERS WITH HISTORICALLY LOW RATES (~$800K PRICED HOME OVER TIME) MORTG-INTERESTMORTG-INTEREST - ABOVE HISTORICAL LOWMORTGAGE INTEREST PAYMENTS - HISTORICALLY LOW ($12,500)EMPIRE ECONOMICSMORTGAGE INTEREST PAYMENTS - ABOVE HISTORICALLY LOW $12,500/YR. $26,500/YR.$30,000-35,000/YR.3%41%53%0.0%2.0%4.0%6.0%8.0%10.0%12.0%14.0%16.0%18.0%-70%-60%-50%-40%-30%-20%-10%0%10%20%30%40%50%60%70%2018-03-012018-06-012018-09-012018-12-012019-03-012019-06-012019-09-012019-12-012020-03-012020-06-012020-09-012020-12-012021-03-012021-06-012021-09-012021-12-012022-03-012022-06-012022-09-012022-12-012023-03-012023-06-012023-09-012023-12-012024-03-012024-06-012024-09-012024-12-0130-YEAR FIXED MORTGAGE RATES RANCHO CUCAMONGA PENDING PRICE CHANGE SINCE JAN. 2018RANCHO CUCAMONGA PENDING LISTINGS AND HOUSING INVENTORY , AND CUMULATIVE LAGGED 12 MONTH HOUSING PRICE CHANGE SINCE (JANUARY 2018 - FEBRUARY 2025)RANCHO CUCAMONGA HOUSING PRICE CHANGE30 YEAR FIXED MORTGAGE RATESMORTGAGE RATES REMAINED AT HIGH LEVELS OF 6.5-7% IN 20242020 Q2: FIRSTQUARTER OF SIGNIFICANT COVID FEB. 2025DESPITE INCREASING MORTGAGE RATES, HOUSING PRICES CONTINUED TO RISE,

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63 NEW FOR-SALE HOME PROJECTSTHERE IS A SCARCITY OF EXISTING HOMES FOR SALE, DUE TO MANY SUCH HOMEOWNERS HA VING HISTORICALLY LOW MORTGAGE RATES CONSEQUENTLY , SOME OF THE EXCESS DEMAND SHIFTS TO NEW HOMESRANCHO CUCAMONGA HAS LIMITED ABILITY TO ACCOMMODATE SUCH SPILLOVERDUE TO ITS CITY ALREADY HA VING DEVELOPED MOST OF ITS PROPERTYBY COMPARISON, THE CITIES OF ONTARIO AND FONTANA HA VE RELATIVELY LARGE DEVELOPING AND/OR V ACANT PROPERTIES THAT CAN ACCOMMODATEMODERATELY PRICED DETACHED HOUSING PROJECTSHOWEVER, RANCHO CUCAMONGA HAS POTENTIALFOR HIGHER DENSITY INFILL TYPE PRODUCTSSYCAMORE HEIGHTS BY LENNAR HOMES FEATURES 175 CONDOMINIUM PRODUCTSTHE RESORT NORTH NEAR THE METROLINK STATION (FUTURE HSR STATION) HAS PLANNING APPROV ALS FOR SEVERAL PROJECTS WITH ATTACHED PRODUCTS

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64 NEW MULTIFAMILY APARTMENT PROJECTSTHE SCARCITY OF EXISTING HOMES FOR SALE, DUE TO MANY SUCH HOMEOWNERS HA VING HISTORICALLY LOW MORTGAGE RATES ALSO SHIFTS OVER TO APARTMENTS PROJECTS SOME OF THESE HOUSEHOLDS MAY NOT BE ABLE TO AFFORD A NEW HOME DUE TO:HOUSING PRICES ALONG WITH PROPERTY TAXES BEING SOME 50%+ ABOVE THEIR 2020 LEVELSMORTGAGES RATES BEING ABOVE 6.5% AS COMPARED TO JANUARY 2021 LEVELS OF ABOUT 2.8%THERE ARE 13 RECENT/ACTIVE/FORTHCOMING PROJECTS WITH ENTITLEMENTS FOR 4,205 UNITS3 PROJECTS 1,191 HA VE RECENTLY BEEN LEASED/OCCUPIED2 PROJECTS UNDER CONSTRUCTION WITH 508 PLANNED UNITSANOTHER 8 PROJECTS WITH 2,506 UNITS RANCHO CUCAMONGA CURRENTLY HAS A STRONG DEMAND FOR APARTMENTS, AS REFLECTED BY THE LEASE-UP OF SOME 525 UNITS IN 2024CURRENTLY THERE IS ONLY ONE PROJECT WITH NEARLY COMPLETED CONSTRUCTION AND A SECOND PROJECT THAT HAS JUST COMMENCED VERTICAL CONSTRUCTION

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•ABSORPTION AMONG PROJECTS IS PRIORITIZED ACCORDING TO THEIR CURRENT DEVELOPMENT APPROV AL STATUS.•THE PACE OF NEW DEVELOPMENT IS EXPECTED TO OCCUR IN A SYNCHRONIZED MANNER TO MAINTAIN STABLE RENTS.•SHOULD EXCESS UNITS ENTER THE MARKETPLACE, RENTS WOULD NEED TO BE LOWERED TO MAINTAIN ABSORPTION.ESTIMATED ABSORPTION FOR NEW APARTMENT PROJECTS 6502004006008001,0001,2001,400NUMBER OF APARTMENT RENTAL'S - ANNUALLYRANCHO CUCAMONGA NEW APARTMENT PROJECTSRECENTLY LEASED, ACTIVE/LEASING, CONSTRUCTION AND FUTURERECENTLY LEASEDUNDER CONSTRUCTIONOPEN - 2026OPEN 2027OPEN 2028+REMARK: POTENTIAL “OPEN” DA TES PER PLANNING APPROV ALSABSORPTION /OCCUPANCY BASED UPON EMPIRE’S FORECAST

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66 III. EMPLOYMENT SECTORS RECENT TRENDS AND FORECASTSMANUFACTURINGRETAIL TRADECONSTRUCTION AND HIGH-SPEED RAILWAREHOUSE DISTRIBUTION AND WHOLESALE TRADERESTAURANTS AND HOTELSOFFICE AND RELATED FACILITIESGOVERNMENT: ALL LEVELS.

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67 MANUFACTURING.9,3729,0617,8457,3427,7817,7307,5577,2917,0346,7866,5476,3176,094 13%12%12%10%10%10%10%9%9%8%8%8%7%-4%-2%0%2%4%6%8%10%12%14%16%02,0004,0006,0008,00010,00012,00014,00016,00018,00020,0002018201920202021202220232024202520262027202820292030RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYMANUFACTURING MANUFACTURINGSHARE OF CITY 'S EMPLOYMENT

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68 RETAIL TRADE.8,4558,1867,2497,4837,6787,8557,8347,7357,8047,8737,7787,5667,307 11%11%11%10%10%10%10%10%10%10%9%9%9%-8%-6%-4%-2%0%2%4%6%8%10%12%14%16%02,0004,0006,0008,00010,00012,00014,00016,0002018201920202021202220232024202520262027202820292030

RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYRETAIL TRADE

RETAIL TRADESHARE OF CITY 'S EMPLOYMENT

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69 CONSTRUCTION AND HIGH-SPEED RAIL.6,0795,8695,4515,4185,4585,4265,3985,2926,1386,9866,8875,8394,793 8%8%8%8%7%7%7%7%8%8%8%7%6%-30%-26%-22%-18%-14%-10%-6%-2%2%6%10%14%01,0002,0003,0004,0005,0006,0007,0008,0009,00010,00011,00012,0002018201920202021202220232024202520262027202820292030

RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYCONSTRUCTION/ WITH HSR

CONSTRUCTION & HSRSHARE OF CITY 'S EMPLOYMENTHSR CONSTRUCTION

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THE CHARACTERISTICS OF THE RANCHO CUCAMONGA (RC) INDUSTRIAL MARKET ARE NOW DISCUSSED, AND COMPARED TO THOSE OF THE INLAND EMPIRE (IE) AS A WHOLE.WHILE WAREHOUSE/DISTRIBUTION (W/D) REPRESENTS THE MAJOR COMPONENT OF THE INDUSTRIAL PROPERTY DESCRIPTION, IT ALSO INCLUDES SOMEMANUFACTURING AND RESEARCH DEVELOPMENT AS WELL.HOWEVER, SINCE THE SAME INDUSTRIAL METRICS ARE UTILIZED FOR BOTH THE INLAND EMPIRE (IE) AND RANCHO CUCAMONGA (RC) GEOGRAPHIC AREAS, THEN COMPARISONS BETWEEN THEM ARE MEANINGFUL.THE RECENT V ACANCY RATE AMOUNTS TO 7.0% FOR RC AND 7.1% FOR IETHE CURRENT ASKING LEASE RATE AMOUNTS TO $1.25/SQ.FT. FOR RC AND $1.03/SQ.FT. FOR IE7070$1.75$1.25$1.41$1.03$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00LEASE RATE/SQ.FT.RECENT LEASE RATE TRENDS FOR WAREHOUSE/DISTRIBUTIONSPACE IN RANCHO CUCAMONGA3.5%7.0%4.9%7.1%0%1%2%3%4%5%6%7%8%VACANCY RATERECENT VACANCY RATE TRENDS FOR WAREHOUSE/DISTRIBUTIONSPACE IN RANCHO CUCAMONGA AND INLAND EMPIRE

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71 WAREHOUSE DISTRIBUTION AND WHOLESALE TRADE.8,0777,5587,0577,6368,3918,0567,9988,0198,0508,0918,1418,2008,269 11%10%10%11%11%10%10%10%10%10%10%10%10%0%2%4%6%8%10%12%14%02,0004,0006,0008,00010,00012,00014,00016,0002018201920202021202220232024202520262027202820292030

RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYWAREHOUSE/DISTRIBUTION AND WHOLESALE TRADE

WAREHOUSE/DISTRIBUTION & WHOLESALE TRADESHARE OF CITY 'S EMPLOYMENT

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72 RESTAURANTS AND HOTELS.9,0328,9297,0598,2509,43510,1149,90210,05510,21010,36810,52910,69110,856 12%12%10%11%12%13%13%13%13%13%13%13%13%-8%-6%-4%-2%0%2%4%6%8%10%12%14%16%18%02,0004,0006,0008,00010,00012,00014,00016,00018,00020,0002018201920202021202220232024202520262027202820292030

RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYRESTAURANTS & HOTELS

RESTAURANTS AND HOTELSSHARE OF CITY 'S EMPLOYMENT

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73 OFFICE AND RELATED FACILITIES.24,41826,35424,34126,32328,66927,08327,18227,76528,66929,61130,30531,10931,596 33%35%36%36%37%35%35%36%36%36%36%37%38%-5%0%5%10%15%20%25%30%35%40%45%05,00010,00015,00020,00025,00030,00035,00040,00045,00050,00055,00060,0002018201920202021202220232024202520262027202820292030

RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYOFFICE & RELATEDFINANCE, ADMINISTRATIVE, PROFESSIONAL, HEALTH AND OTHERS

TOTAL OFFICE & RELATEDSHARE OF CITY 'S EMPLOYMENT

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74 GOVERNMENT: ALL LEVELS.(GOVERNMENT INCLUDES ALL LEVEL: FEDERAL, STATE LOCAL CITY & COUNTY AS WELL AS EDUCATIONAL – SCHOOLS) 9,1189,4139,0399,23610,18910,86711,31011,72612,38813,06613,53213,85314,127 12%12%13%13%13%14%15%15%15%16%16%17%17%-8%-4%0%4%8%12%16%20%02,0004,0006,0008,00010,00012,00014,00016,00018,00020,00022,00024,00026,0002018201920202021202220232024202520262027202820292030 RECENT/EXPECTED EMPLOYMENT BY FIRMS IN THE CITYGOVERNMENT: ALL LEVELS

GOVERNMENT - ALL LEVELSSHARE OF CITY 'S EMPLOYMENT

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CITY OF RANCHO CUCAMONGASUPPLEMENTAL RESEARCH(ENHANCEMENTS TO ANNUAL STUDY)COMPONENT 2: BRIEF BW-HSR UPDATE ON FEBRUARY 2024 STUDYPREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.75

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76 BRIEF BW-HSR UPDATES ON THE PRIOR FEBRUARY 2024 STUDY This analysis reviews the progress that has been made for BW-HSR during the past year based on numerous press releases,official approvals for funding, full environmental clearance, and construction officially starting on April 22nd2024.Additionally, more information is available on the Brightline HSR Florida rail operating between Miami, FL and Orlando, FLwhich opened in September 2023.This updated information, including timing would be used to see how this impacts the conclusions of the prior February 2024Study with respect to the following topics:A. Update on Progress for Construction PhaseB. Comparable Existing HSR-Florida - Passenger Trip TrendsC. Ancillary Economic Development in the Vicinity of the HSR StationRemark: Empire performed its own research to provide the City with an independent analysis.The City’s Economic Development Department may have more timely informationon some of the topics discussed herein.

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77 A. UPDATE ON PROGRESS FOR CONSTRUCTION PHASE UPDATES: APRIL 2025The primary change identified is that the completion date of the BW-HSR is now expected to be December 2028, a delay from the original Summer 2028 targeted date which coincided with the Summer Olympics in Los Angeles.*** Empire’s Annual Study has modified its employment forecast for the City to reflect this change.Ridership projections are for 5.8 million passengers in 2029, the first full year, growing to 8.6 million in 2031.The expected composition of the passengers are as follows:Southern California residents: 68%Las Vegas and Clark County residents: 21% (Similar to 20% in Empire’s 2024 BW-HSR Study)Other US and international visitors: 11% (Not in Empire’s 2024 Study – Additional)

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78 B. COMPARABLE EXISTING HSR-FLORIDA - PASSENGER TRIP TRENDSUPDATES: APRIL 2025Brightline HSR -Florida: The Miami-Orlando direct non-stop route is of most interest given its distance of 235 miles withthe travel time of about 3 hours and 30 minutes.The BW-HSR route from Rancho Cucamonga to Las Vegas is 218 miles and is expected to take an estimated 2 1/2/ hours.The Miami-Orlando route opened in September 2023 and experienced ridership of about 2.76 million passengers in 2024.In January 2025, monthly ridership amounted to 266,346 passengers which exceeded the prior record for December 2024of 264,201 passengers.

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79 1,230,4942,053,8932,763,282236,263228,138258,307223,117231,883223,139220,395208,062205,479217,735246,563264,201266,3460500,0001,000,0001,500,0002,000,0002,500,0003,000,0003,500,0004,000,0004,500,0005,000,000202220232024. JANUARY 2024. FEBRUARY 2024. MARCH 2024.APRIL 2024.MAY 2024.JUNE 2024.JULY 2024.AUGUST 2024.SEPTEMBER 2024.OCTOBER 2024.NOVEMBER 2024.DECEMBER 2024. JANUARY 2025

BRIGHTLINE-FLORIDA HSR PASSENGERSMIAMI TO ORLANDO

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80 C. ANCILLARY ECONOMIC DEVELOPMENT IN THE VICINITY OF THE HSR STATIONUPDATES: APRIL 2025The Rancho Cucamonga HSR Station will be located at the existing Metrolink Station that will connect the HSRto Metrolink, buses and other transit options.Parking infrastructure is expected to be expanded based on the anticipated demand, including the addition of an estimated 300-350 spaces as well as plans for an overflow parking structure.Real estate values near the station are expected to rise, encouraging mixed use developments which increase property tax revenues.

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CITY OF RANCHO CUCAMONGASUPPLEMENTAL RESEARCH(ENHANCEMENTS TO ANNUAL STUDY)COMPONENT 3: DEVELOPMENT IMPACT FEES*** DRAFT ***PREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.81

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82 DEVELOPMENT IMPACT FEES (DIF)FEE STRUCTURES FOR V ARIOUS CITIES AND ECONOMIC IMPACTS(DIF is a one-time charge for new development imposed under the Mitigation Fee Act.)I. Compilation of Basic Development Impact Fees (DIF) for the Various Cities Development Impact Fees (DIF) are based upon website information provided by public entities.These are general estimates and they are subject to revision.II. Residential and Industrial Market Differences among the Various Cities The differences in the DIFs among these public entities are also influenced by the market values of their residential and industrial products due to various factors such as their distance from employment centers.III. Timing of Enacting DIF and Economic Implications for Property Owners/Developers/Builders .

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83 I. COMPILATION OF BASIC DEVELOPMENT IMPACT FEES (DIF) FOR V ARIOUS CITIES Compilation of Basic Development Impact Fees (DIF) for 2024Rancho CucamongaInland Empire:OntarioFontanaOrange County Irvine - Limited Data Available The differences in the DIF for Rancho Cucamonga relative to the nearby Ontario/Fontana cities as well as Irvine/Orange County are analyzed using their respective economic and socioeconomic factors.Specifically, for each of the product types, the comparative differentials based upon the relative values of their residential (housing prices and rent levels) and non-residential (industrial).

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84 The Rancho Cucamonga DIF estimates are generally lower than those of other cities, especially for apartments.For Ontario, the higher levels of its DIF may be influenced by Ontario Ranch, a newly developing area that has substantial infrastructure requirements and many amenities such as parks.For Irvine, there is limited data on the DIF. Furthermore, the DIF may by influenced by its higher levels of Special Taxes which contribute to new infrastructure as well as ongoing maintenance costs.$25,952$43,226$22,260$28,095$16,874$31,980$18,195$13,789$7,625$23,729$18,195$10,170$0$10,000$20,000$30,000$40,000$50,000$60,000RANCHOCUCAMONGAONTARIO FONTANA IRVINECOMPARISON OF DEVELOPMENT IMPACT FEESRANCHO CUCAMONGA, ONTARIO, FONTANA AND IRVINESingle Family For-SaleMulti-Family For-SaleApartment Rental

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85 A comparison of Ranch Cucamonga’s housing prices ($774,948) to the other cities reveals the following: Higher than Ontario by +16%Higher than Fontana by +23%Lower than Irvine by -48%II. RESIDENTIAL AND INDUSTRIAL MARKET DIFFERENCES AMONG THE V ARIOUS CITIES $774,948$665,359$630,310$1,492,317$0$500,000$1,000,000$1,500,000$2,000,000$2,500,000RanchoCucamongaOntario Fontana IrvineCOMPARISON OF HOUSING PRICES RANCHO CUCAMONGA, ONTARIO, FONTANA AND IRVINE

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86 A comparison of Ranch Cucamonga’s apartment rents ($2,770) to the other cities reveals the following: Higher than Ontario by +11%Lower than Fontana by -14%; some of this difference can be attributed to a new project in north FontanaLower than Irvine by -16%$2,770$2,490$3,224$3,298$0$500$1,000$1,500$2,000$2,500$3,000$3,500$4,000$4,500RanchoCucamongaOntario Fontana IrvineCOMPARISON OF RENTAL RATES - APARTMENTSRANCHO CUCAMONGA, ONTARIO, FONTANA AND IRVINE

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87 A comparison of Ranch Cucamonga’s industrial rents ($1.27/sq.ft./mo.) to the other cities reveals the following: Higher than Ontario by +38%Lower than Fontana by +4%Lower than Irvine: -26%$1.27$0.92$1.22$1.71$0.00$0.50$1.00$1.50$2.00RANCHOCUCAMONGAONTARIO FONTANA IRVINECOMPARISON OF RENTAL RATES - INDUSTRIALRANCHO CUCAMONGA, ONTARIO, FONTANA AND IRVINERENTS

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88 A comparison of Ranch Cucamonga’s industrial vacancy rates (7.1%) to the other cities reveals the following: Ontario by at 5.3%Fontana at 6.7%Irvine at 10.1%7.1%5.3%6.7%10.1%0%2%4%6%8%10%12%RANCHOCUCAMONGAONTARIO FONTANA IRVINECOMPARISON OF INDUSTRIAL VACANCY RATES RANCHO CUCAMONGA, ONTARIO, FONTANA AND IRVINEVACANCY

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89 III. TIMING OF ENACTING DIF ECONOMIC IMPLICATIONS FOR PROPERTY OWNERS A. Landowner – No Development/Vacant LandThe full economic burden would reduce the value of the parcel since a purchaser of the property would be liable for the amount of the DIF when the property is developed in the future.B. Existing/Built Occupied: There would not be any economic impact, this is past the time the DIF fees are paid. C. Between the two Scenarios, A-Landowner/Vacant & Built/Occupied, the fee would impact the owner the property at the time DIF are paid.

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90 ECONOMIC IMPACT OF DIF ON A NEW PROJECT V ARIESCURRENT DIF LEVELS – INTEGRATED INTO MARKET V ALUESVERSUSUNEXPECTED DIF INCREASES: NEW IMPACT ON MARKET V ALUE OF PROPERTY Development Stages and Economics Implications1. Current Vacant Acreage - Initial Property Owner: Development Timing UncertainHigher DIF Now Not Immediate Concern2. Property Sold to Developer: Initiate Development Plans with Planning DepartmentTentative Approval/Developer Development Timing TargetDeveloper Purchases Vacant Property Higher DIF, Feasibility of Project Reduced But Time to Adjust since Prior to Construction Final Approval/ Builder Development Timing Near Term Builder Purchases Property from DeveloperHigher DIF, Feasibility/Profit of Project ReducedBuilder Committed to Project - No Adjustment Time 3. Project Sold/Rented to End-Users: Built/Occupied: No Impact of Higher DIF

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CITY OF RANCHO CUCAMONGASUPPLEMENTAL RESEARCH(ENHANCEMENTS TO ANNUAL STUDY)COMPONENT 4: SOCIOECONOMIC CHARACTERISTICSOF APARTMENT TENANTSPREPARED BY EMPIRE ECONOMICS, INC.JOSEPH T. JANCZYK, PH.D.91

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EXECUTIVE SUMMARY OF THE MULTI-FAMILY SOCIOECONOMIC ANALYSIS The purpose of this section is to analyze the economic and fiscal impacts of the City’s newly developing apartment projects.The City’s apartment market has a potential for about 4,200 units: recent (~1,200) and forthcoming (~3,000).These newly developing apartment projects generally have higher rents as compared to established apartments.The City’s Employment Development Department in collaboration with Placer.AI’s cell phone usage identified the workplace patterns of new vs established tenants.(The privacy of specific cell phone users are protected since the data represents averages only.)There are significant geographical differences of workplaces relative to the City;tenants in new apartments generally work westerly/southerly while tenants in established apartments generally work easterly. 92WORKPLACES FOR TENANTSDIFFERENCES BETWEEN NEW VS. ESTABLISHED PROJECTS GREEN DARK/LIGHT – HIGHER SHARE NEW-HOMECOMING: RANCHO CUCAMONGA AS WELL AS NEARBY WESTERLY & SOUTHERLYRED/ORANGE - LOWER SHARE NEW-HOMECOMING:NEARBY EASTERLY AS WELL ASFURTHER IN LOS ANGELES / ORANGE COUNTYYELLOW – SIMILAR SHARES FOR NEW AND ESTABLISHED APARTMENTSGENERALLY DISPERSED GEOGRAPHICALLY

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EXECUTIVE SUMMARY OF THE MULTI-FAMILY SOCIOECONOMIC ANALYSIS Census Data was utilized to identify differences in the socioeconomic characteristics of tenants of new vs established workplaces.(Remark: Census Data is a broad measure of an overall area versus specific apartment projects.)Focusing in on the specific features of apartments, new apartments have higher rents levels and larger sized units.Empire formulated the typical rental difference between new vs. existing apartments and then estimated the income levels of their respective tenants.ESRI data on the spending patterns for Rancho Cucamonga households was utilized to estimate the economic impacts for shopping.The economic and fiscal impacts at the build-out of the 4,200 units in 2030 amounts to an estimated $21.7 million annually.Economic impact of an estimated $17.5 million annually.Fiscal sales tax impact of and estimated $1.4 million annually.Fiscal property tax impact of $2.8 million annually.93$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000$22,000,000$24,000,0002022 2023 2024 2025 2026 2027 2028 2029 2030ECONOMIC AND FISAL IMPACTS ANNUALLYECONOMIC AND FISCAL IMPACTS OF NEW APARTMENT PROJECTSCUMULATIVE V ALUE - ANNUALLY ECONOMIC IMPACTFISCAL: SALES TAXESFISCAL: PROPERTY TAXES

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94 WORKPLACE PATTERNS OF NEW VS. ESTABLISHED TENANTSApartments Project Classifications New Project with Recently Leased UnitsHomecoming at the Resort: 9350 Resort Parkway, 867 UnitsEstablished/Existing ProjectsThe Reserve at Empire Lakes: 11210 4thStreet, 467 UnitsIronwood Apartments: 11100 4thStreet, 449 UnitsDescription of Placer.ai Data and Methodology Underlying the Analysis The City’s EDD in collaboration with Placer.AI cell phone usage identified the workplace patterns of new vs established tenants.The privacy of specific cell phone users are protected since the data represent averages only.Placer.AI:* For each of the apartment projects, identification of the cell phone numbers of the tenants* For each of the identified tenants, tracking their locational/travel activity over a 30 day time period* Through sophisticated analysis, identifying their probable workplaces, using statistical averages* Identifying the probable workplace locations by city and zip codeEmpire Economics:* Compiling the data by City with regards to the number of resident observationsCity was utilized as the relevant geographic area since this coincides with Census Data*Filtering the Placer.ai data to arrive at a representative sample, eliminating outlier locations and small observation levelsKey Statistical Metrics:* For each of the apartment groups, the percentage of their tenants in each of the relevant workplace cities* For each of the cities, the difference between the share of new apartment versus share of established apartment tenants

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950%5%10%15%20%25%30%WORKPLACES OF APARTMENT TENANTS BY CITIES/COMMUNITIESNEW: HOMECOMING VS. ESTABLISHED: RESERVE AND IRONWOOD

NEW-HOMECOMINGESTABLISHED

HOMECOMING TENANTS WORKPLACE SOUTH AND ALSO WESTRESERVE AND IRONWOODWORKPLACE TENANTS PRIMARILY EASTCITY EAST NORTH SOUTH WEST

NAMES OF WORKPLACE CITIES/COMMUNITIES AND THEIR MILES FROM RANCHO CUCAMONGA CITY HALL

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WORKPLACES FOR TENANTS: DIFFERENCES BETWEEN NEW VS. ESTABLISHED PROJECTS GREEN DARK/LIGHT – HIGHER SHARE FOR HOMECOMING IN RANCHO CUCAMONGA AS WELL AS NEARBY WESTERL Y & SOUTHERL YRED/ORANGE - LOWER SHARE HOMECOMING: NEARBY EASTERL Y AS WELL AS FURTHER IN LOS ANGELES / ORANGE COUNTYYELLOW – SIMILAR SHARES: GENERALLY DISPERSED GEOGRAPHICALLY

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97 CODES PROJECT NAMESRECENTLY LEASED1 Homecoming at the Resort2 The Core/La Mirage3 WestburyUNDER CONSTRUCTION4 Alta Merita/Alta Curvee5 Haven and ArrowFUTURE: NEAR TERM-EST.6 Alexan at Victoria Gardens7 Harvest at Terra Vista FUTURE 2026-EST.8 Foothill & Grove9 Lions GateFUTURE 2027-EST.10 Foothill Landing11 33 North 12 Spruce & Red Oak13 Leap Development RANCHO CUCAMONGA: RECENT NEW AND FUTURE APARTMENT PROJECTS (APPROXIMATE LOCATIONS) 12345679811101312

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98 COMPARISON OF EDUCATION AND OCCUPATIONSNEW VS. ESTABLISHED APARTMENT TENANTSUtilizing Census Data, differences in the education and occupations for tenants in new vs established workplaces were identified.Tenants in the new projects have higher shares of advanced education and white-collar jobs than for tenants in established projects.3%6%7%14%-11%-8%-5%-2%-15%-10%-5%0%5%10%15%20%DIFFERENCES IN EDUCATIONAL ATTAINMENTNEW PROJECT (BLUE BARS) VS. ESTABLISHED PROJECTS (ORANGE BARS)NEW PROJECTESTABLISHED PROJECTS6%8%8%5%1%-1%-7%-11%-10%-3%-3%-8%-15%-10%-5%0%5%10%15%DIFFERENCES IN WORPLACE BY EMPLOYMENT OCCUPATIONSNEW PROJECT - WHITE COLLAR VS ESTABLISHED PROJECTS - BLUE COLLARNEW PROJECTESTABLISHED PROJECTS

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99 COMPARISON OF NEW VS. ESTABLISHED APARTMENT PROJECTSTO THEIR RENT LEVELS AND SIZES OF LIVING AREASThe analysis now focuses specifically on the differences in the rental levels between the new project, Homecoming, and the established projects, The Reserve and Ironwood•New Project: Rents of $3,255/avg including 3-bedrooms•Established Projects: $2,695/avg. including likely less 3-bedrooms•Difference: New Higher by +560/month or $6,720 avg./yr.1 BEDROOM 2 BEDROOM 3 BEDROOM AVERAGENEW PROJECT $2,700 $3,256 $4,500 $3,255SHARE OF UNITS -ESTIMATED 45% 35% 20% 100%ESTABLISHED PROJECTS $2,468 $2,800 $3,405 $2,695SHARE OF UNITS -ESTIMATED 50% 40% 10% 100%DIFFERENCE - MONTHLY $232 $456 $1,095 $560CHARACTERISTICS OF APARTMENT RENTS AND PRODUCT SHARES

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100$90$97$192$300$165$327$137$46$1,302$157 $157$59$0$200$400$600$800$1,000$1,200$1,400$1,600APPAREL & SERVICESEDUCATIONENTERTAINMENT/\RECREATIONFOOD AT HOMEFOOD AWAY FROM HOMEHEALTH CAREHH FURNISHINGS &EQUIPMENTPERSONAL CAREPRODUCTS & SERVICESSHELTER: HOUSING ANDRELATED EXPENSESSUPPORTPAYMENTS/CASH,/GIFTS INKINDTRAVELVEHICLE MAINTENANCE &REPAIRS INCREMENTAL SPENDING INCREMENTAL SPENDING - ANNUALLYNEW PROJECT VS. ESTABLISHED PROJECTS

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101
$96,906 $92,389 $4,517 $72,710 $69,682 $3,028 $0$20,000$40,000$60,000$80,000$100,000$120,000 NEW PROJECTS ESTABLISHED PROJECTS NEW- INCREMENTALANNUALLYINCOME AND SPENDING LEVELS NEW PROJECT VS. ESTABLISHED PROJECTS

MEDIAN HOUSEHOLD INCOMECONSUMER SPENDING

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102
CATEGORIES % SPENT % SPENT IN CITY SPENT PER UNITTOTAL SPENT IN CITY PER UNITAPPAREL & SERVICES 6% 50% $41 $2,587EDUCATION 5% 50% $30 $1,872ENTERTAINMENT/ \RECREATION 10% 80% $109 $6,934FOOD AT HOME 19% 90% $225 $14,280FOOD AWAY FROM HOME 11% 75% $104 $6,612HEALTH CARE 18% 50% $118 $7,496HH FURNISHINGS & EQUIPMENT 8% 50% $53 $3,345PERSONAL CARE PRODUCTS & SERVICES 3% 50% $18 $1,130SUPPORT PAYMENTS/CASH,/GIFTS IN KIND 8% 75% $77 $4,888TRAVEL 8% 10% $11 $677VEHICLE MAINTENANCE & REPAIRS 4% 75% $37 $2,317POST TAX SPENDING MONEY 63% $823 $52,138SALES TAXABLE REVENUE WITHIN THE CITY; 7.75% $64 $4,041

WORKSHEET FOR ADDITIONAL POST TAX SPENDING AMOUNT WITHIN RANCHO CUCAMONGA

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NEW RECENT/FUTURE APARTMENT PROJECTS: ECONOMIC AND FISCAL IMPACTS 103
Based upon the above analysis, the estimated economic and fiscal impacts for the development of the expected new 4,200 units in the recent future apartmentprojects are as follows:Considering the higher incomes of households renting new apartment units, their incremental spending for establishments in the City on variouscommodities and services generates a total economic impact at build-out for the 4,200 units of an estimated $17.5 million annually.Regarding the fiscal impact of sales taxes (7.75%) , this is expected at build-out to amount to about $1.4 million annuallyRegarding the fiscal impact of additional property taxes, this is expected to amount and build-out to about $2.8 million annuallyTherefore, the combined economic and fiscal impacts for the build-out of the 4,200 units amounts to an estimated $21.7 million annually$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,000$12,000,000$14,000,000$16,000,000$18,000,000$20,000,000$22,000,000$24,000,0002022 2023 2024 2025 2026 2027 2028 2029 2030ECONOMIC AND FISAL IMPACTS ANNUALLYECONOMIC AND FISCAL IMPACTS OF NEW APARTMENT PROJECTSCUMULATIVE V ALUE - ANNUALLY ECONOMIC IMPACTFISCAL: SALES TAXESFISCAL: PROPERTY TAXES

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104
ESTIMATED ECONOMIC AND FISCAL IMPACTS FOR NEW APARTMENT PROJECTS 2022-2024 FOR NEW RECENTLY OCCUPIED AND 2025-2030 FOR NEW FUTURE PROJECTS2022 2023 2024 2025 2026 2027 2028 2029 2030 TOTALABSORPTION/YEARANNUALLY 208 284 699 525 525 525 525 525 375 4,191C UMULATIVELY 208 492 1,191 1,716 2,241 2,766 3,291 3,816 4,191EC ONOMIC IMPAC T $840,471 $1,147,566 $2,824,466 $2,121,380 $2,121,380 $2,121,380 $2,121,380 $2,121,380 $2,121,380 $17,540,782C UMULATIVELYFISC AL: SALES TAXES $65,136 $88,936 $218,896 $164,407 $164,407 $164,407 $164,407 $164,407 $164,407 $1,359,411C UMULATIVELYFISC AL: PROPERTY TAXES $139,171 $190,021 $467,693 $351,272 $351,272 $351,272 $351,272 $351,272 $250,908 $2,804,152C UMULATIVELYTOTAL IMPAC T$1,044,778 $1,426,523 $3,511,055 $2,637,059 $2,637,059 $2,637,059 $2,637,059 $2,637,059 $2,536,695 $21,704,345

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DATE:July 16, 2025
TO:Mayor and Members of the City Council
President and Members of the Board of Directors
FROM:John R. Gillison, City Manager
INITIATED BY: Jason C. Welday, Director of Engineering Services/City Engineer Mike McCliman, Fire Chief
Marlena C. Perez, Principal Engineer
Sarine Hazarshahian, Assistant Engineer
SUBJECT: Consideration of First Reading of Ordinance No. 1044, to be Read by Title Only and Waive Further Reading, Revising Bidding Limits on Public Projects, Amending Labor Code Compliance Requirements, and Amending Title 3 of the Rancho Cucamonga Municipal Code and a Resolution Updating Signing and Purchasing Authority Limits for Public Works Projects. (ORDINANCE NO. 1044) (RESOLUTION NO. 2025-044) (RESOLUTION NO. FD 2025-016) (CITY/FIRE)
RECOMMENDATION:

Staff recommends the City Council and Fire Board of the Rancho Cucamonga Fire Protection District:

1. Conduct a first reading of Ordinance No. 1044, to be read by title only, amending Chapter

3.08 of the Rancho Cucamonga Municipal Code to revise the City’s bidding limits on public works projects to conform to the limits in the amount set forth in the Public Contract Code § 22032, amending labor code compliance requirements and amending Title 3 of the Rancho Cucamonga Municipal Code.

2. Approve the attached Resolution No. 2025-044 and Fire Board Resolution No. FD 2025- 016 to update signing authority limits and purchasing authority limits for public works projects to the limits in the amount set forth in the Public Contract Code § 22032.

BACKGROUND:

The City has adopted a centralized purchasing system, which is codified in Chapter 3. 08 of the Rancho Cucamonga Municipal Code that contains, among others, provisions regarding contracts for professional services and public works projects. It is in the public interest to amend those provisions of Chapter 3.08 regarding contracts for professional services and public works projects to allow the City the greatest flexibility allowed under state law.

Sections 37103 and 53060 of the Government Code allow the City to contract with professionals for special services to the City with or without competitive bidding. The Uniform Public Construction Cost Accounting Act, Public Contract Code § 22000 et seq. ("UPCCAA") establishes a uniform cost accounting standard for construction work performed or contracted by local public

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agencies and authorizes local public agencies that elect to be subject to the UPCCAA to use informal bidding procedures for public works projects in the amount set forth in the Public Contract Code § 22032.

Assembly Bill (AB) 2192 which took effect January 1, 2025 increased the bidding thresholds for public agencies that have opted into the California Uniform Public Construction Cost Accounting Act on public projects as defined in the Act.

ANALYSIS:

To continue our efforts to allow the greatest flexibility allowed under state law, ordinance and resolution updates are recommended to modify the solicitations for public works.

Staff Signing Authority Limits
The staff signing authority limits will be revised to the limits indicated on the chart below:

Title Up to limit
City Manager
$150,000
*Except Public Works Contracts, where signature authority will be as Set Forth in PCC Section 22032 in accordance with the California Uniform Public Construction Cost
Accounting Act.

Assistant City Manager $110,000
Deputy City Manager $95,000
Directors $75,000
In addition, rather than assigning other delegates lower levels of signature authority by resolution, the City Manager will have the discretion to designate which staff members have what limits below his/her authority. Any City Manager delegated limits will be documented and reviewed and updated on a regular basis, as needed. The continuation of this practice will allow signature authorities to be easily updated as titles and positions change in the organization, while maintaining the same level of expenditure control.

Bidding Threshold Limits
Bidding threshold limits will be revised to the limits indicated on the chart below:

Procedure Type Limits
Goods and Non-Professional
Services
Open Market - less than $20,000
Informal Solicitation - $20,000 up to $49,999
Formal Solicitation $50,000 and over
Professional Services
Solicitation
Open Market – less than $100,000
Formal Solicitation - $100,000 and over

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Page 3 ends

2 9
0 9
Public Works Bidding
Uniform Public Construction Cost Accounting Act
(UPCCAA)
Bid Limits as Set Forth in PCC Section 22032
Except for the changes to public works projects under UPCCAA, the previously approved signing authority limits adopted by Resolution No.’s 2023-124 and FD 2023-040 are not changing as part of this update. Updating the signing authority threshold and bid thresholds for public works bidding to be tied to the UPPCAA bid limits allows staff to use the increased bidding limits, as amended periodically, without requiring future updates to the Municipal Code and adoption of a new resolution thereby streamlining and expediting the informal and formal bidding process for public works bidding.

Amending Labor Code Compliance
Services obtained by the City require compliance with provisions of the Labor Code. The update defines “public works projects”, as well as the requirements for the payment of prevailing wages and compliance with Labor Code §§ 1720 through 1861.

FISCAL IMPACT:

None.

COUNCIL MISSION / VISION / GOAL(S) ADDRESSED:

Intentionally embracing and anticipating our future.

ATTACHMENTS:

Attachment 1 – Ordinance No. 1044 (First Reading)
Attachment 2 – Resolution No. 2025-044
Attachment 3 – FD Resolution No. FD 2025-016

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Ordinance No. 1044 - Page 1 of 4
ORDINANCE NO. 1044

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

RANCHO CUCAMONGA, CALIFORNIA REVISING BIDDING

LIMITS ON PUBLIC PROJECTS, AMENDING LABOR CODE
COMPLIANCE REQUIREMENTS, AND AMENDING TITLE 3 OF

THE RANCHO CUCAMONGA MUNICIPAL CODE
The Cit
y Council of the City of Rancho Cucamonga does ordain as follows:

A. RECIT
ALS

1. The City has adopted a central purchasing system, which is codified in Chapter

3.08 of the Rancho Cucamonga Municipal Code (“Municipal Code”) and that contains among others, provisions regarding contracts for professional services and public works.

2. It is in the public interest to amend Chapter 3.08 of the Municipal Code regarding contracts for services and public works to allow the City the greatest flexibility allowed under state law.

3. Maintenance and certain other kinds of services obtained by the City require compliance with provisions of the Labor Code, including payment of prevailing wages. Certain revisions to the City’s purchasing procedures are necessary to ensure Labor Code compliance by providers of such services.

4. The Uniform Public Construction Cost Accounting Act, Public Contract Code §22000, et seq. ("UPCCAA") bidding procedures, including bid amount thresholds, for public works contracting have been adopted by the City. Those amounts are revised by the Legislature from time to time. The City Council has determined that in order provide the City with the greatest flexibility in public works contracting, it is necessary revise the City’s purchasing procedures to reflect recent and future revisions to the UPCCAA.

5. All legal prerequisites to the adoption of this Resolution have occurred.

B. ORDINA
NCE
Sect
ion 1. The City Council finds that the facts set forth in the Recitals, Part A, of this Resolution are true and correct.

Section 2. Subsection B.3 of Section 3.08.070 of Chapter 3.08 of Title 3 of the Rancho Cucamonga Municipal Code is hereby amended to read as follows:
“3. Contr
acts for maintenance services, “public works” as defined in Labor Code § 1720, and public projects, as defined in Public Contract Code § 22002, that exceed $1000, as such amount may be amended from time to time, normally require the payment of prevailing wages and compliance with Labor Code §§ 1720 through 1861.” 4 ATTACHMENT 1

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Section 3. Section 3.08.110 of Chapter 3.08 of Title 3 of the Rancho Cucamonga Municipal Code is hereby amended to read as follows:
“3.08.110. - Bidding for public projects.

A. Public projects, as defined by the Public Contract Code § 22002 shall be bid, adve rtised, and awarded in accordance with t he C alifornia Uniform P ublic Construction Cost Accounting Act (“UPCCAA”), as it may be amended from time to time.

B. Contracts for p ublic pr ojects s hall be awarded pur suant to the bidding limitations established by the UPCCAA:

1. Public projects at or below the amount set forth in Public Contract Code § 22032(a) may be performed by City employees by force account, by negotiated contract, or by purchase order.

2. Public projects at or below the amount set forth in Public Contract Code § 22032(b) may be let to contract by informal bidding procedures as set forth in this section.

3. Public projects exceeding the amount set forth in Public Contract Code § 22032(c) shall, except as otherwise provided by law, be let to contract by formal bidding procedures.

C. Public projects
shall not be split or separat ed int o smaller work
orders for the purpose of evading the requirements of the UPCCAA.

D. Contractors List. The City sh all comply w ith the requirements of Public Contract Code § 22034.

E. Informal Bidding. Public projects eligible for informal bidding under the UPCCAA may be let to contract as follows:

1. A notice inviting informal bids shall be circulated using one or both of the following alternatives:
a. Notices inviting informal bids may be mailed, faxes, or emailed to all contractors for the category of work to be bid, as shown on the list developed in accordance with paragraph D of this section.
b. Notices inviting informal bids may be mailed to all
construction trade journals as specified by the California Uniform Construction Cost Accounting Commission in accordance with § 22036 of the Public Contract Code. Additional contractors and/or construction trade journals may be notified at the discretion of the City; provided however, if the product or service is proprietary in nature such that it can be obtained only from a cert ain contractor or contractors, the notice inviting informal bids may be se nt exclusively to such contractor or contractors.

2. The City M anager or his or he r designee is au thorized to award contracts at or below the dollar limitation applicable to informal bidding.

3. If all bids received through the informal bidding process exceed the amount set in Public Contract Code § 22032(b), the City Council may, by adoption of a resolution by a four -fifths vote, award the contract, at or below the amount set forth in Public Contract Code § 22034(d), if it determines the cost estimate was reasonable.

Ordinance No. 1044 - Page 2 of 4

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Ordinance No. 1044 - Page 3 of 4
F. Formal bidding. Bidding on all public projects subject to formal bidding, shall done in accordance with the procedures set forth in Public Contract Code § 22037, et seq.”
S
ection 5. The City Council declares that, should any provision, section, paragraph, sentence, or word of this Ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words of this Ordinance shall remain in full force and effect.

S
ection 6. The City Clerk shall certify as to the adoption of this Ordinance.

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Ordinance No. 1044 - Page 4 of 4
PASSED, APPROVED, AND ADOPTED this XXst day of Month 20xx.

Page 1708 ends

Resolution No. 25-0XX – Page 1 of 3
RESOLUTION 2025-044

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

RANCHO CUCAMONGA, CALIFORNIA, REPEALING ALL

PREVIOUS APPLICABLE PROCUREMENT SYSTEM

RESOLUTIONS AND ESTABLISHING UPDATED SIGNING AND

PURCHASING AUTHORITY LIMITS FOR CITY PERSONNEL
A. Reci
tals.
(i) Pursuant to Government Code Sections 37103, 53060, and 54201, and the California Constitution, the City of Rancho Cucamonga has adopted a Purchasing System, as set forth in Chapter 3.08 of Title 3 of the Rancho Cucamonga Municipal Code. (i
i) Chapter 3.08, referenced above, authorizes the City Council to establish, by resolution, various monetary limits applicable to purchasing, including, but not limited to limits governing: (a) informal and formal bidding; (b) procurements requiring no bidding; and procurement authority applicable to particular City officers and employees.

NOW
, THEREFORE, the City Council of the City of Rancho Cucamonga, hereby resolves:

Sect
ion 1. This resolutions supersedes the provisions of all previous resolutions to the extent any such provisions are inconsistent with the provisions herein.

Sect
ion 2. For the purpose of establishing Procurement Policy Limits for the City of Rancho Cucamonga Procurement Division, the City Council does hereby adopt those monetary limits attached hereto, marked as Exhibit “A”, and incorporated herein by this reference.

Sect
ion 3. For the purpose of establishing Staff Signature Authority Limits, the City Council does hereby adopt those monetary limits attached hereto, marked as Exhibit “A”, and incorporated herein by this reference.

Sect
ion 4. The signature authority limits, procurement bidding procedures and thresholds and set forth herein shall take effect as of _________________, 2025.

ATTACHMENT 2

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Resolution No. 25-0XX – Page 2 of 3
PASSED, APPROVED, AND ADOPTED this Xth day of Month, 2025.

Page 1710 ends

Resolution No. 25-0XX – Page 3 of 3
Exhibit A
Procurement Signing Authority Limits
S
taff Signing Authority Limits
Title Up to limit
City Manager
$150,000
*Except Public Works Contracts, where signature authority will be as Set Forth in PCC Section 22032 in accordance with the California Uniform Public Construction Cost
Accounting Act.

Assistant City Manager $110,000
Deputy City Manager $95,000
Directors $75,000
I
n addition, rather than assigning other delegates lower levels of signature authority by resolution, the City Manager will have the discretion to designate which staff members have what limits below his/her authority. Any City Manager delegated limits will be documented and reviewed and updated on a regular basis, as needed. The continuation of this practice will allow signature authorities to be easily updated as titles and positions change in the organization, while maintaining the same level of expenditure control.

Procurement Policy Limits
Procedure Type Limits
Goods and Non-Professional
Services
Open Market - less than $20,000
Informal Solicitation - $20,000 up to $49,999
Formal Solicitation $50,000 and over
Professional Services Solicitation Open Market – less than $100,000 Formal Solicitation - $100,000 and over
Public Works Bidding
Uniform Public Construction Cost Accounting Act
(UPCCAA)
Bid Limits as Set Forth in PCC Section 22032

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Resolution No. FD 2025-016 - Page 1 of 3
RESOLUTION NO. FD 2025-016

A RESOLUTION OF THE BOARD OF DIRECTORS OF THE

RANCHO CUCAMONGA FIRE PROTECTION DISTRICT, COUNTY

OF SAN BERNARDINO, STATE OF CALIFORNIA, REPEALING

ALL PREVIOUS APPLICABLE PROCUREMENT SYSTEM

RESOLUTIONS AND ESTABLISHING UPDATED SIGNING AND

PURCHASING AUTHORITY LIMITS FOR CITY PERSONNEL
A. Re
citals.
(i) Pursuant to Government Code Sections 37103, 53060, and 54201, and the California Constitution, the City of Rancho Cucamonga has adopted a Purchasing System, as set forth in Chapter 3.08 of Title 3 of the Rancho Cucamonga Municipal Code. (i
i) Chapter 3.08, referenced above, authorizes the City Council to establish, by resolution, various monetary limits applicable to purchasing, including, but not limited to limits governing: (a) informal and formal bidding; (b) procurements requiring no bidding; and procurement authority applicable to particular City officers and employees.

NOW
, THEREFORE, the Board of Directors of the Rancho Cucamonga Fire Protection District does hereby resolve as follows:

Sec
tion 1. This resolutions supersedes the provisions of all previous resolutions to the extent any such provisions are inconsistent with the provisions herein .

Sec
tion 2. For the purpose of establishing Procurement Policy Limits for the City of Rancho Cucamonga Procurement Division, the City Council does hereby adopt those monetary limits attached hereto, marked as Exhibit “A” , and incorporated herein by this reference.

Sec
tion 3. For the purpose of establishing Staff Signature Authority Limits, the City Council does hereby adopt those monetary limits attached hereto, marked as Exhibit “A”, and incorporated herein by this reference.

Sec
tion 4. The signature authority limits, procurement bidding procedures and thresholds and set forth herein shall take effect as of _________________, 2025.

ATTACHMENT 3

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Resolution No. FD 2025-016 - Page 2 of 3
PASSED, APPROVED AND ADOPTED this Xth day of Month, 2025.

Page 1713 ends

Resolution No. FD 2025-016 - Page 3 of 3
Ex
hibit A
Procurement Authority Limits
S
taff Signing Authority Limits
Title Up to limit
City Manager
$150,000
*Except Public Works Contracts, where signature authority will be as Set Forth in PCC Section 22032 in accordance with the California Uniform Public Construction Cost Accounting Act.

Assistant City Manager $110,000
Deputy City Manager $95,000
Directors $75,000
I
n addition, rather than assigning other delegates lower levels of signature authority by resolution, the City Manager will have the discretion to designate which staff members have what limits below his/her authority. Any City Manager delegated limits will be documented and reviewed and updated on a regular basis, as needed. The continuation of this practice will allow signature authorities to be easily updated as titles and positions change in the organization, while maintaining the same level of expenditure control.

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Rancho Cucamonga City CouncilJuly 16, 2025

Rancho Cucamonga City Council
July 16, 2025