Redlands City Council
June 16, 2026

Program Objectives:
• Administer and ensure all minimum mandated training is provided for all members of the Fire Department.
• Ensure that each Company/Individual completes an average of 20 hours training per person per month.
• Compile and maintain training records for all field operational personnel. • Conduct regularly scheduled performance standard drills to enhance individual skills. This includes Fire Company functions and multi-company coordination for emergency application, including technical training, team training, officer training programs, and specialized equipment training.
• Schedule and conduct mandated Hazardous Materials First Responder training. • Schedule and conduct mandated Wildland Fire Training. • Submit Monthly CFFJAC (California Fire Fighter Joint Apprenticeship Committee) reports. • Submit semester training hours, training documentation, department student rosters, and coordinate site visits with Crafton Hills Community College. • Conduct Pre-Fire Planning and Industrial Facility Tours for personnel. • Conduct single and multi-company training with Fire Departments throughout the region. • Ensure succession training needs are met for all positions within the department. • Schedule additional training as mandated by federal and state requirements. • Coordinate recruitment and promotional manipulative examinations.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 136 • Manage training materials at Fire Stations (i.e., training manuals, new textbooks & videos, accident/investigation reports from Firefighter injury or Fatality incidents, etc.) Accomplishments for Fiscal Years 2025-2026:
 19,031 Total Training Hours: Achieved full compliance with State and Federal mandates through the delivery of 19,031 total training hours. This represents a significant commitment to professional development, with personnel averaging 317 training hours during 2025.  Infection Control Training: Executed specialized training in infection control, bloodborne pathogens, and disease prevention. This proactive approach underscores the Department’s commitment to mitigating occupational health risks and ensuring personnel safety.  Firefighter Rescue & Survival: Conducted comprehensive, multi-company drills focused on high-stakes rescue operations. Training emphasized Rapid Intervention Crew (RIC) proficiency and the strategic command of Mayday events, utilizing the K-Mart facility and Crafton Hills College for realistic operational environments.  Confined Space Rescue Awareness: Delivered departmental training on confined space operations, emphasizing OSHA regulatory compliance and technical rescue competencies.

The curriculum focused on critical incident command roles necessary for managing these high-risk scenarios.
 Technical Rope Rescue: Integrated specialized rope rescue training with the deployment of new technical equipment. These sessions focused on maintaining the manipulative skills required for high-risk, low-frequency rescue operations.  Wildland Firefighter Training: Completed wildland fire training in accordance with CICCS requirements. To address the complexities of wildland interface operations, training was conducted through a collaborative framework involving Cal Fire, Crafton Hills College, and the SBCTOA.
 Tractor Drawn Aerial (TDA): Continued training on the TDA to enhance skillsets, with the new curriculum now fully integrated into the annual training cycle.  Officer Certification & Succession Planning: Continued to enhance the Engineer and Captain Candidate Certification programs to provide structured, on-duty professional development. These initiatives create a sustainable internal succession path, preparing personnel for future leadership roles within the Department.  Promotional Examinations: Prepared and administered promotional exams. The process utilizes industry-validated benchmarks to identify and rank candidates, ensuring the Department’s leadership tier remains high-performing and mission-ready.  Regional Collaboration & External Testing: Strengthened regional partnerships by deploying Battalion Chiefs, Captains, and Engineers to serve as proctors for neighboring agencies’ promotional exams. These efforts facilitate inter-agency networking and the exchange of critical operational intelligence.

Training Courses Attended for Fiscal Years 2025-2026:
 Rio Hondo Regional Truck Academy: Completed a rigorous, two-week residency specializing in advanced truck company operations. The curriculum provided mastery in high-stakes disciplines, including Rapid Intervention Crew (RIC) tactics, firefighter survival, and complex high-rise fire operations.
 Advanced Swiftwater Rescue: Facilitated participation in a 40-hour technical rescue program in Northern California. This intensive course utilized high-velocity waterways and lifelike scenarios to develop advanced proficiency in hydraulic rescue strategies and specialized equipment deployment.
 State Fire Instructor Certification: Continued to meet CSFM requirements for personnel to become certified State Fire Instructors. This investment establishes a sustainable internal framework to validate departmental training against state-recognized benchmarks.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 137  Peer Support & Behavioral Health: Enhanced the Department’s Peer Support cadre through advanced clinical coursework. These sessions prepared members to provide critical intervention and support for personnel navigating occupational mental health challenges and trauma.
 Fire Arson & Origin/Cause Investigation: Continued CSFM-aligned investigator certification pathways. Training emphasized scientific methodologies for origin and cause determination, fostering improved forensic collaboration with the Redlands Police Department (RPD).  Advanced Auto Extrication Practicum: Completed a specialized three-day intensive course in Corona focused on complex vehicle stabilization. Personnel gained technical mastery in utilizing hydraulic systems to manage multi-vehicle collisions and unconventional extrication scenarios, significantly enhancing field operational capabilities.

Training Goals for Fiscal Year 2027-2028:
 Professional Development & Operational Readiness: Prioritize personnel attendance in advanced training programs that align with departmental objectives. This strategic focus ensures continuous enhancement of emergency response capabilities, career progression, and the cultivation of a robust instructor cadre.
 Strategic Succession Planning: Continue the systematic development of personnel for leadership advancement. A primary objective is the implementation of a Professional Development Guide, designed to provide members with a clear roadmap for career aspirations while ensuring the Department maintains elite service delivery through proactive preparation.
 Fiscal Optimization & Reimbursement: Sustain active participation in training reimbursement frameworks, including the Instructional Service Agreement (ISA) with Crafton Hills College and Cal-JAC. These programs are essential for capturing external revenue, effectively offsetting training expenditures for both the City and the Department.  Internal Instructional Capacity: Advance the initiative to meet CSFM State Fire Instructor requirements for department personnel. Internalizing this certification capability will allow the Department to issue state-recognized credentials locally, significantly reducing long-term training costs and providing a formal mechanism for curriculum validation.  Integrated Tactical Response: Maintain and expand strategic partnerships with the Redlands Police Department (RPD) and Redlands Unified School District (RUSD) for unified active shooter and hostile event training. These joint exercises are critical for synchronizing inter-agency roles and ensuring a cohesive response to high-threat incidents.  Regional Interoperability: Preserve strong engagement with neighboring fire agencies through consistent regional training. This commitment ensures seamless technical interoperability and a unified command structure during large-scale mutual aid responses.  Strategic Facility Partnerships: Formalize an agreement with Crafton Hills College (CHC) for the utilization of their training tower. While the Department pursues a long-term municipal solution, this partnership provides an immediate, mutually beneficial environment for essential manipulative skills training.
 Fire Training Facility Development: Initiate foundational research and master planning for a dedicated Redlands Fire Department Training Facility. Establishing a permanent site is a critical requirement for meeting National and State training mandates, including Live Fire operations—that currently cannot be accommodated within the city’s existing infrastructure.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 138

DEPARTMENT/DIVISION

FIRE TRAINING

FUND ORGKEY
GENERAL FUND 101252
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services - 5,250 2,250 6,000 6,500 6401 Meeting & Prof Development 990 8,000 8,000 5,000 5,000 6402 Travel
Expense/Reimbursement
8,480 8,000 8,000 10,000 10,000
6403 Training 10,606 50,000 50,000 40,000 40,000
6703 Software Support/Development 355 2,000 2,000 2,500 2,500 6710 Special Contractual Services 5,600 24,100 24,100 18,500 18,500 6901 Printing and Binding - 2,500 2,500 2,500 2,500
6902 Advertising - 1,600 1,600 1,600 1,600
6909 Subscriptions & Memberships 259 4,000 4,000 4,000 4,000 TOTAL SERVICES 26,290 105,450 102,450 90,100 90,600

SUPPLIES
7001 Books & Supplies 1,949 3,000 3,000 3,000 3,000
7002 Office Supplies - 2,000 2,000 1,500 1,500
7004 Uniform/Safety Clothing 688 4,500 4,500 3,500 3,500 7005 Photo & Copying Supplies - 2,000 2,000 2,000 2,000 7102 Small Tools & Equipment 5,455 6,500 6,500 6,500 6,500 7211 Computer Components - 5,000 5,000 4,000 4,000
7807 Food 868 3,150 3,150 3,150 3,150
7810 Special Departmental Supplies 562 3,000 3,000 2,000 2,000 7812 Audio-Visual Materials - 1,000 1,000 1,000 1,000
TOTAL SUPPLIES 9,521 30,150 30,150 26,650 26,650

FIXED ASSETS
8706 All Other Equipment 22,316 - - - -
TOTAL FIXED ASSETS 22,316 - - - -
DIVISION TOTAL 58,127 135,600 132,600 116,750 117,250
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 139 Fire
Emergency Preparedness
Program Description:

The Emergency Management and Preparedness Program is overseen by the Administrative Battalion Chief and Emergency Operations Coordinator. The program has the task of planning and preparing all City departments, residents, and businesses for man-made and natural emergencies. The Emergency Operations division utilizes planning, training, and exercises to continually develop and sustain the City’s mitigation, preparedness, response, and recovery capabilities. These capabilities minimize the loss of life and property and protect the environment from emergencies and significant disruptions. The Emergency Operations Division works with the city departments, other local municipalities, and an array of community-based organizations to ensure that the city and its residents have the resources and information they need to prepare, respond and recover from emergencies, disasters, and significant events.

Program Objectives:
• Update and maintain the City’s Emergency Operations Plan and Local Hazard Mitigation Plan, Continual maintenance of the plan is required for the City to receive grant funding opportunities, as well as disaster recovery monies after an emergency, from the State of California and the Federal Government.
• Develop and coordinate with the American Red Cross, Redlands Unified School District, and the County of San Bernardino Office of Emergency Services on the mass care and sheltering needs of the city, as well as evacuation processes of the citizens within the city and their animals. The sheltering and evacuation needs will include the Access and Functional Needs community.
• Maintain and operate a viable Emergency Operations Center to ensure the readiness of the city.
• Coordinate with appropriate federal, state, and other local agencies, as well as applicable segments of private sector entities and volunteer agencies. • Provide maintenance, updates to the system, and community outreach on the City’s Emergency Notification System.
• Coordinate with local, county, and state agencies and organizations through mutual aid and mitigation agreements for disaster training.
• Standardized Emergency Management Systems (SEMS) and the National Incident Management System (NIMS).
• Develop NIMS compliance training program for all City employees. • Develop an exercise program to include Tabletop, functional and full-scale training for all EOC responders.
• Develop and implement a community outreach program to include CERT, BERTT, Teen CERT, and citizen corps.
• Develop a communication partnership with the Redlands Emergency Communication Group to assist with mass care and shelter needs.
• Develop a partnership with the Faith-Based Community for donation management needs.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 140 Accomplishments for Calendar Year 2025 and 2026:
• Upgraded EOC with Activu visibility software and large monitors. • Completed Emergency Operations training with city staff through JGA. • Purchased new disaster supplies including Starlink Satellite Internet Systems, five community water filtration systems, and two 106 gallon portable fuel tanks. o 4 Disaster Council Meetings.
• Upgraded training and incident response trailers.
• Taught 3 CERT Classes
o 2 English Classes
o 1st Spanish Class.
• Prepared CERT volunteers
o Continued with training every other month.
o Issued Medical bags for them to be ready to deploy.
• Provided Emergency Management Support to the following Incidents:
o Worked with GIS to monitor the 4th of July reporting. o Continued to train the Evacuation Coordinators.
o Maintain continuity of operations.
o Exercises with other city agencies; 2 tabletops.
• Continue to participate in events throughout the city to promote:
o New Alert system
o Disaster preparedness
o CERT Classes
o 15 events total in the City.
• Managed the Emergency Management Program Grant
o $22,159 FY2025
• Working on upgrading plans
o Working on updated EOP with anticipated completion of 10/26. o Added both an airport and animal shelter annex for the EOP City of Redlands FY2027 and FY2028 Proposed Biennial Budget 141

DEPARTMENT/DIVISION

EMERGENCY

PREPAREDNESS

FUND ORGKEY
GENERAL FUND 101254
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 12,869 29,845 29,845 17,845 20,248 5005 Vacancies - - - (876) (890)
5202 Holiday Pay 141 - - - -
5204 Accrual Payout 281 - 287 334 334
5301 Banked Leave Buy Back 563 861 861 791 791
5401 Pension Contributions 8,475 8,989 8,989 8,679 8,689 5501 Social Security/Medicare 2,331 2,353 2,353 2,435 2,435 5601 Deferred Compensation 420 420 420 420 420
5701 Health/Dental Insurance 6,996 7,040 7,040 7,049 7,066 5704 Unemployment Insurance 23 152 152 152 152
5705 Life Insurance 22 22 22 22 22
5802 Eyecare Reimbursement 237 105 105 105 105
5803 Clothing Allowance 193 - - 385 385
5903 Other Taxable Benefits 474 473 473 473 473

TOTAL SALARIES AND

BENEFITS
33,023 50,260 50,547 37,814 40,229

SERVICES
6106 Other Professional Services - 4,000 7,000 2,000 2,000 6304 Telephone 3,085 3,500 4,000 4,000 3,500
6401 Meeting & Prof Development 300 4,000 3,500 1,000 1,000 6402 Travel
Expense/Reimbursement
2,724 3,000 5,500 3,000 3,000
6403 Training - 3,000 3,000 1,500 1,500
6601 Postage 47 500 500 500 500
6703 Software Support/Development 25 600 600 600 600
6708 Special Program Expenditures 1,876 2,500 - 2,500 2,500 6710 Special Contractual Services 73,805 53,000 50,000 53,000 53,000 6802 Info Tech Service Charges 7,616 6,709 6,709 10,879 11,242 6901 Printing and Binding 1,197 2,500 2,500 2,500 2,500 6909 Subscriptions & Memberships 274 1,000 1,000 1,000 1,000 TOTAL SERVICES 90,949 84,309 84,309 82,479 82,342

SUPPLIES
7002 Office Supplies 965 3,500 3,500 2,000 2,000
7004 Uniform/Safety Clothing 5,476 8,000 8,000 4,000 4,000 7005 Photo & Copying Supplies - 2,500 2,500 1,500 1,500 7101 Office Equipment & Furniture 424 2,500 1,500 2,500 2,500 7102 Small Tools & Equipment 1,484 5,000 6,000 5,000 5,000 7203 Office Equipment Maintenance 850 2,500 500 2,500 2,500 7208 Repair/Maintenance Supplies - 2,000 2,000 2,000 2,000 7209 Janitorial Supplies 214 1,200 1,200 1,200 1,200
7211 Computer Components 15,731 3,000 5,000 3,000 3,000 7804 Medical Supplies 12,403 15,000 14,500 10,000 10,000 7807 Food 5,471 5,000 5,000 5,000 5,000
7810 Special Departmental Supplies 13,745 10,000 13,500 10,000 10,000 7812 Audio-Visual Materials - 3,000 - 3,000 3,000
TOTAL SUPPLIES 56,764 63,200 63,200 51,700 51,700
DIVISION TOTAL 180,737 197,769 198,056 171,993 174,271
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 142

DEPARTMENT SUMMARY
FUND

GENERAL FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
FIRE SUPPRESSION 22,895,651 23,913,831 23,724,332 23,210,131 22,864,704

COMMUNITY RISK

REDUCTION
936,818 1,163,745 1,167,415 1,119,688 1,174,867
FIRE TRAINING 58,127 135,600 132,600 116,750 117,250

EMERGENCY

PREPAREDNESS
180,737 197,769 198,056 171,993 174,271
DEPARTMENT TOTAL 24,071,332 25,410,945 25,222,403 24,618,561 24,331,093 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 143

DEPARTMENT/DIVISION

FIRE DEPARTMENT
GRANTS

FUND ORGKEY
GRANTS 200250
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 16,460 16,460 255,725 - -
5401 Pension Contributions - - - -
5501 Social Security/Medicare - - - -
5601 Deferred Compensation - - - -
5701 Health/Dental Insurance - - - -
5704 Unemployment Insurance - - - -
5705 Life Insurance - - - -

TOTAL SALARIES AND

BENEFITS
16,460 16,460 255,725 - -

SERVICES
6910 Labor 4,980 - - - -
6912 Reimbursed Expenditures (156,396) - - - -
TOTAL SERVICES (151,416) - - - -

SUPPLIES
7901 Non-Capital Expenditures 213,123 - - - -
TOTAL SUPPLIES 213,123 - - - -

FIXED ASSETS
8501 Other Betterments/Improv 233,706 - - - -
8706 All Other Equipment 258,223 14,501 14,501 - -
TOTAL FIXED ASSETS 491,929 14,501 14,501 - -
DIVISION TOTAL 570,096 30,961 270,226 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 144

DEPARTMENT SUMMARY
FUND
GRANTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
FIRE DEPARTMENT GRANTS 570,096 30,961 270,226 - -
DEPARTMENT TOTAL 570,096 30,961 270,226 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 145 Fire
Emergency Medical Services
Program Description:

Overseen by the Administrative Battalion Chief and consists of an Emergency Medical Service Coordinator. The EMS Coordinator ensures compliance with federal, state, and county procedures and protocol as well as keeps pace with increased demands for service.

This program is responsible for ensuring the delivery of high-level advanced life support pre-hospital care by well-trained personnel, as well as meeting the education and delivery standards required by the State of California to ensure this level of service. The highly trained Paramedics functions as an extension of the emergency room doctor and with his/her regulatory control can administer the necessary medical treatment to stabilize the patient before transport to the hospital. Paramedics presently respond from all fire stations.

This program includes a QA/QI program which is required and monitored by Inland Counties Emergency Medical Agency (ICEMA). The QA/QI program is overseen by the EMS Coordinator and provides oversight to training and certification as well as protocol implementation for both EMTs and Paramedics.

Emergency Medical Services division operates and manages the following programs:
• Emergency Medical Technician (EMT Program)
The certification of Emergency Medical Technician is considered the basic level of prehospital emergency care in the modern-day Fire/Emergency Medical Service. This level of certification is the minimum standard for all Redlands Fire Department Suppression personnel. The responsibilities and scope of practice for the EMT are outlined in Title 22, Division 9 of the California Code of Regulations, which includes the following:
o Evaluate the ill and injured
o Render basic life support, rescue, and emergency care to patients o Obtain diagnostic signs to include, but not be limited to, temperature, blood pressure, pulse, and respiration rates, pulse oximetry, level of consciousness, and pupil status o Perform cardiopulmonary resuscitation (CPR), including the use of mechanical adjuncts to basic cardiopulmonary resuscitation
o Administer oxygen
o Use the following adjunctive airway and breathing aids:
 Oropharyngeal airway
 Nasopharyngeal airway
 Suction devices
 Basic oxygen delivery devices for supplemental oxygen therapy including, but not limited to, humidifiers, partial rebreathers, venture masks, and manual and mechanical ventilating devices designed for prehospital use including continuous positive airway pressure
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 146 o Use various types of stretchers and spinal immobilization devices o Provide initial prehospital emergency care of trauma, including, but not limited to:
 Bleeding control through the application of tourniquets  Use of hemostatic dressings
 Spinal immobilization
 Seated spinal immobilization
 Extremity splinting
 Traction splinting
o Administer over the counter medication when approved by the medical director of the LEMSA, including, but not limited to:
 Oral glucose or sugar solutions
 Aspirin
o Extricate entrapped persons
o Perform field triage
o Mechanical patient restraint
o Set up for Advance Life Support (ALS) procedures, under the direction of a Paramedic o Perform automated external defibrillation
o Assist patients with the administration of physician-prescribed devices including, but not limited to patient-operated medication pumps, sublingual nitroglycerine, and self-administered emergency medications including epinephrine devices • Paramedic Program:

The Redlands Fire Department deploys at least one Paramedic on every emergency response vehicle, who is the primary patient caregiver on all emergency medical responses within the city.

The Paramedic’s scope of practice includes basic and advanced skills focused on the acute management and transportation of patients. This also includes invasive and pharmacological interventions to reduce the morbidity and mortality associated with acute out-of-hospital medical and traumatic emergencies.

Under Title 22, Division 9 of the California Code of Regulations, the following are the minimum psychomotor skills of the Paramedic (including all skills within the EMT level):
o Utilize electrocardiographic devices and monitor electrocardiograms, including 12-lead electrocardiograms (ECG)
o Perform defibrillation, synchronized cardioversion, and external cardiac pacing o Visualize the airway by use of the manual or video laryngoscope and remove the foreign body with Magill forceps
o Perform pulmonary ventilation by use of lower airway multi-lumen adjuncts, the esophageal airway, perilaryngeal airways, stomal intubation, and adult oral endotracheal intubation
o Utilize mechanical ventilation devices for continuous positive airway pressure (CPAP)/bilevel positive airway pressure (BPAP) and positive end-expiratory pressure (PEEP) in the spontaneously breathing patient
o Use airway adjuncts to assist in maintaining adequate ventilation with the use of capnography devices, intrathoracic threshold devices, and HEPA-filters o Institute intravenous (IV) catheters, saline locks, needles, or other cannula (IV lines), in peripheral veins and monitor and administer medications through pre-existing vascular access
o Institute interosseous (IO) needles or catheters
o Administer IV or IO glucose solutions or isotonic balanced salt solutions, including Ringer's lactate solution
o Obtain venous blood samples
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 147 o Use laboratory devices, including point of care testing, for pre-hospital screening, used to measure lab values including, but not limited to, glucose, capnometry, capnography, and carbon monoxide when appropriate authorization is obtained from State and Federal agencies, including from the Centers for Medicare and Medicaid Services according to the Clinical Laboratory Improvement Amendments (CLIA)
o Utilize Valsalva maneuver
o Perform percutaneous needle cricothyroidotomy
o Perform needle thoracotomy
o Perform nasogastric and orogastric tube insertion and suction o Monitor thoracotomy tubes
o Monitor and adjust IV solutions containing potassium, equal to or less than 40 mEq/L o Administer approved medications by the following routes: IV, IO, intramuscular, subcutaneous, inhalation, transcutaneous, rectal, sublingual, endotracheal, intranasal, oral, or topical
o Administer, using prepackaged products when available, the following medications:
 10% dextrose, adenosine, aerosolized or nebulized beta-2 specific bronchodilators, aspirin, atropine sulfate, calcium chloride, diphenhydramine hydrochloride, epinephrine, fentanyl, glucagon, ipratropium bromide, ketamine, lidocaine hydrochloride, magnesium sulfate, midazolam, naloxone hydrochloride, nitroglycerine preparations, ondansetron, tranexamic acid, and sodium bicarbonate.

RFD Paramedics are held to a higher standard in terms of minimum certifications/qualifications.

In addition to the state and local mandates for recertification, RFD requires all Paramedics to maintain a valid Handtevy Pediatric certification card. Once the minimum standards are met, the Emergency Medical Services Authority will issue a valid license, at the state level. In addition to state licensure, Paramedics must also hold a valid license under the Local Emergency Medical Services Authority (LEMSA). The LEMSA for the RFD is the Inland Counties Emergency Medical Agency (ICEMA), located in San Bernardino.
• Advanced Cardiac Life Support (ACLS) Recertification Program:

The Inland Counties Emergency Medical Agency (ICEMA), which is the Local Emergency Medical Services Authority (LEMSA), mandates that all Paramedics within its region maintain a valid Advanced Cardiac Life Support (ACLS) certification. The American Heart Association is the organization that prints the curriculum and conducts the research and development to ensure Paramedics are providing the most up-to-date care about cardiac events. An ACLS certification is valid for two years. ACLS certification requires:
o Basic life support skills, including effective chest compressions, use of a bag-mask device, and use of an AED
o Recognition and early management of respiratory and cardiac arrest o Recognition and early management of peri-arrest conditions such as symptomatic bradycardia
o Airway management
o Related pharmacology
o Management of ACS and stroke
o Effective communication as a member and leader of a resuscitation team.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 148 RFD currently has seven (7) certified ACLS instructors to provide this mandated training. This training requires the use of skills mannequins, airway training tools, EKG rhythm generators, and current edition instructor manuals with DVD instruction. RFD currently offers a minimum of six (6) recertification classes every two years, to cover all current RFD Paramedics. • Handtevy Pediatric Recertification Program:

The Handtevy Pediatric certification is a course created by Dr. Antevy. Although possession of this certification is not a state or local mandate, to maintain Paramedic licensure, the Redlands Fire Department requires all Paramedics to maintain this certification as a commitment to excellence. The RFD recognizes that pediatric medical emergencies present different and complex challenges in the management of prehospital care. Handtevy certification requires:
o High-quality Child CPR AED and Infant CPR
o Recognition of patients who do and do not require immediate intervention o Recognition of cardiopulmonary arrest early and application of CPR within 10 seconds o Apply team dynamics
o Differentiation between respiratory distress and failure o Early interventions for respiratory distress and failure o Differentiation between compensated and decompensated (hypotensive) shock o Early interventions for the treatment of shock
o Differentiation between unstable and stable patients with arrhythmias o Clinical characteristics of instability in patients with arrhythmias o Post–cardiac arrest management
This certification is valid for two years. RFD currently has seven (7) certified Handtevy instructors to provide this training. This training requires the use of pediatric/child skills mannequins, pediatric/child airway training tools, EKG rhythm generators, and current edition instructor manuals with DVD instruction. RFD currently offers a minimum of six (6) recertification classes every two years, to cover all current RFD Paramedics. • Event Medic: Provides public safety and event medics to large events within the city. The medics provide Advanced Life Support EMS care to citizens and participants at events including the Redlands Bicycle Classic, Hangar 24 Air Show, Believe Walk, and A Run through Redlands (ICEMA).
• Cardiopulmonary Resuscitation-Internal Program: Each employee is required to maintain CPR certification, allowing CPR training to be taught in-house (AHA). • Infectious Control: Responsible for the administration of the Infection Prevention and Control Program, which includes the identification, investigation, reporting, prevention, and control of nosocomial infections for personnel. Responsible for coordinating in-service programs related to infection prevention and control. The program is mandated by the Ryan White Act (CFR, Cal-OSHA, CDC, OSHA 1910, 130).
• Emergency Medical Services Quality Improvement Program: The quality improvement program maintains the regulatory requirement of quality assurance/improvement for all personnel who perform emergency medical care to the sick and injured. The program is closely monitored as required by the Inland Counties Emergency Medical Services Agency, State Emergency Medical Authority, and California Code of Regulations, Title 22 (EMSA, ICEMA).

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 149 • ePCR: Management of the continued education of updates of the ICEMA mandated Electronic Patient Care Record System (ICEMA) RFD personnel are heavily involved in the ePCR working group and assist in updates, maintenance, and training of the program. • Vaccination Administration Program: The Redlands Fire Department recently received local optional scope vaccination program approval through ICEMA to support EMT and EMT-P COVID-19 Intramuscular vaccination efforts in collaboration with the Redlands Community Hospital.

Program Objectives:
• Promote the highest standards of rapid response, patient evaluation, and emergency care possible.
• Provide ongoing training, recertification, and paramedic licensure oversight to ensure uninterrupted program delivery.
• Function as liaison for the City with County and State health care agencies. • Provide strategic and tactical judgments regarding Citywide EMS resource coordination and delivery.
• Monitor and coordinate Safety Employee Bloodborne Pathogen/Exposure/Infection Control program. Operations Fire Captain Rob Sandberg and Engineer Brad Byers serve as Infection Control Officers as Ancillary Duties to assist the EMS Coordinator. • Continue to conduct, monitor, and evaluate emergency medical technician training and operations as set forth by policy, procedure, and mandated protocol. • Provide staff recommendations concerning EMS and related incident management functions.
• Coordinate City EMS functions with Department Medical Director. • Evaluate, monitor, and coordinate the Fire Department Paramedic program. • Complete T/B mask fitting for personnel per OSHA regulations. • Maintain OSHA vaccination records and provide access to obtain titers and vaccinations as needed or requested.
• Continue to monitor and evaluate Citywide Automatic External Defibrillator Program. • Administer, monitor, and oversee Paramedic Quality Improvement Program. • Coordinate specific medical training with local ambulance providers. • Continue to provide advanced life support to the community in the most feasible economical way.
• Continue to provide input at the County level with regional changes affecting EMS. • Continue to advance medical equipment to maintain optimal functionality to provide the best and most efficient care to our communities.
• Continue to monitor the UCapIt vending machines at all fire stations for restocking purposes to improve inventory tracking and decrease unnecessary budgetary replacement costs. • Continue to monitor the PS Trax controlled substance tracking software to improve the system in line with DEA requirements.
• Continue to advance training equipment and programs to align with current AHA and resuscitation academy recommendations for feedback and simulation devices to simulate real-life training scenarios.
• Continue to align with the RUSD to provide Stop the Bleed Training to all RUSD staff and students (post-COVID).

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 150 Significant Program Changes:
• The EMS Coordinator has conducted post-incident quality assurance review and training for paramedic and emergency medical technician personnel. The QA/QI program has identified residents who are frequent users of our emergency medical services and now assist them in accessing resources specific to their needs and condition. This lowers the demand for emergency services and keeps resources available for more pressing emergencies.

Implementation of electronic patient care record-keeping systems in coordination with Inland Counties Emergency Medical Agency is continuing. Through CONFIRE, the Fire Department is now a party to an agreement with the Inland Counties Emergency Medical Agency and San Bernardino County Information Services Department that allows for more efficient centralization of response records.
• In-house paramedics have been certified to instruct both Advanced Cardiac Life Support and Pediatric Life Support to Paramedics, saving the City money. • The Event Medic program has expanded to include Fireline Paramedics and EMTs who serve our community as well as other communities when called upon in time of disaster or fire.
• Continue to improve the City’s infectious disease control plan to include specific procedures in the event of an outbreak in our city.

Accomplishments for Fiscal Years 2025-2026:
• The department has moved closer to becoming a certified Heart safe Community by adding public access AED’s located in three city parks.
• The department added a Substance Use Navigator position paid for through Opioid Settlement funds.
• The Redlands Fire Department continues to rank well above the national average with its ROSC (return of spontaneous circulation) rates for CPR patients. • Continued implementation of robust QI/QA program monitoring all cardiac arrests (to include CARES registry/Utstein parameters), strokes, STEMIs, TXA administrations, Narcan administrations, advanced procedures/medications, AMAs, controlled substance administrations, aspirin not administered in cardiac cases, epinephrine administrations, intubations, and capnography utilizations, pediatric incidents, trauma incidents, submersion incidents, incidents with low (less than 100%) validity. • Advancement of the High-performance CPR program with the addition of the ZOLL impedance threshold device.
• Monitoring and re-training of Handtevy program. Trained seven (7) personnel in Handtevy Instructor course for updated pediatric advanced training for the department. • Re-education of PS Trax software for controlled substance tracking. • Movement of backup (line-medic) gear for inventory and budget tracking. • Update Exposure Control Plan and Exposure Packets.
• Update Infectious Disease Plan and Protocols.
• Updated ACLS instructor training.
• Updated AHA and Handtevy training material and equipment. • Continued implementation of EMS training program with outside, peer, and EMS Coordinator instruction.
• Continued implementation of Firefighter Rehab program overseen by EMS Coordinator – procurement of rehab equipment, nutrition, and hydration. • Development of paramedic equipment replacement program (for outdated, damaged equipment)
• Continued monitoring of waste disposal program.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 151 • Assist in the implementation of the Emergency Community Nurse System at the dispatch center.
• Development and implementation of the Naloxone Leave Behind Program. • Participation in the statewide Pediatric Emergency Care Coordination Program. • Implementation and submission for AHA: Mission Lifeline Recognition. • Development and implementation of new hire and probational program. • Submission of personnel recognition through Handtevy Challenge Coins and EMSA EMS Awards.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 152

DEPARTMENT/DIVISION

EMERGENCY MEDICAL

SERVICES

FUND ORGKEY
EMERGENCY MEDICAL SERVICES 205250
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 2,115,587 2,572,869 2,572,869 2,627,546 2,811,433 5003 Labor Code Sec 4850 37,745 30,000 30,000 30,000 30,000 5101 Overtime Salaries 151,274 180,000 180,000 180,000 180,000 5102 Reimbursable Overtime 183,453 120,000 120,000 120,000 120,000 5103 Constant Staffing 665,282 800,000 650,000 800,000 800,000 5202 Holiday Pay 74,623 - 39,640 184,233 184,233
5204 Accrual Payout 7,633 - 6,074 1,906 1,906
5301 Banked Leave Buy Back - 187,307 187,307 2 2
5401 Pension Contributions 378,865 476,941 476,941 457,635 466,015 5501 Social Security/Medicare 54,918 49,386 49,386 53,362 54,332 5601 Deferred Compensation 72,167 73,450 73,450 72,116 73,084 5701 Health/Dental Insurance 364,419 475,570 475,570 447,496 448,656 5702 Workers' Comp Insurance 256,568 265,494 265,494 285,459 292,997 5703 Disability Insurance 31,836 29,096 29,096 34,131 34,800 5704 Unemployment Insurance 1,398 9,548 11,033 9,982 9,982 5705 Life Insurance 1,266 1,386 1,386 1,452 1,452
5802 Eyecare Reimbursement - 300 300 600 600
5803 Clothing Allowance 20,900 24,200 24,200 23,100 23,100 5903 Other Taxable Benefits 5,413 4,950 4,950 8,250 8,250 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
4,423,348 5,300,497 5,197,696 5,337,270 5,540,842

SERVICES
6005 License & Permits 2,738 6,500 6,500 6,500 6,500
6105 Medical/Physicals - 2,500 2,500 2,500 2,500
6106 Other Professional Services 1,719 28,000 28,000 28,000 28,000 6401 Meeting & Prof Development 960 5,800 5,800 5,800 5,800 6402 Travel
Expense/Reimbursement
1,408 6,500 6,500 6,500 6,500
6403 Training 2,778 3,500 3,500 3,500 3,500
6601 Postage - 800 800 800 800
6703 Software Support/Development 9,828 17,800 17,800 17,800 17,800 6710 Special Contractual Services 18,000 5,000 5,000 5,000 5,000 6802 Info Tech Service Charges 167,543 147,597 147,597 179,400 185,380 6803 City Garage Charges 110,135 114,736 100,402 81,210 73,620 6804 General Govt Service Charge 619,635 641,322 641,322 662,101 690,704 6901 Printing and Binding - 3,500 3,500 3,500 3,500
6902 Advertising - 2,000 2,000 2,000 2,000
6907 Comms Service & Rental 277,214 320,367 320,367 - - 6909 Subscriptions & Memberships 9,212 10,420 10,420 8,000 8,000 TOTAL SERVICES 1,221,170 1,316,342 1,302,008 1,012,611 1,039,604

SUPPLIES
7001 Books & Supplies - 1,000 1,000 1,000 1,000
7002 Office Supplies - 2,000 2,000 1,500 1,500
7003 Awards/Recognition Prgm 2,110 2,000 2,000 2,000 2,000 7004 Uniform/Safety Clothing 5,043 19,000 19,000 19,000 19,000 7101 Office Equipment & Furniture - 3,500 3,500 3,500 3,500 7102 Small Tools & Equipment - 8,500 8,500 8,500 8,500
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 153

DEPARTMENT/DIVISION

EMERGENCY MEDICAL

SERVICES

FUND ORGKEY
EMERGENCY MEDICAL SERVICES 205250
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7205 Machinery & Equip. Maint. 68,320 31,800 31,800 31,800 31,800 7208 Repair/Maintenance Supplies - 1,500 1,500 1,500 1,500 7209 Janitorial Supplies - 1,000 1,000 1,000 1,000
7211 Computer Components - 4,500 4,500 4,500 4,500
7213 Motor Vehicle Supplies - 1,500 1,500 1,500 1,500
7804 Medical Supplies 113,718 101,200 101,200 101,200 101,200 7807 Food 398 1,500 1,500 1,500 1,500
7810 Special Departmental Supplies 12,533 30,000 30,000 30,000 30,000 TOTAL SUPPLIES 202,122 209,000 209,000 208,500 208,500

DEBT SERVICE
9001 Principal - - - - 185,749
9101 Interest - - - - 52,373
TOTAL DEBT SERVICE - - - - 238,122
DIVISION TOTAL 5,846,640 6,825,839 6,708,704 6,558,381 7,027,068 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 154

DEPARTMENT SUMMARY
FUND

EMERGENCY MEDICAL SERVICES
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

EMERGENCY MEDICAL

SERVICES
5,846,640 6,825,839 6,708,704 6,558,381 7,027,068
DEPARTMENT TOTAL 5,846,640 6,825,839 6,708,704 6,558,381 7,027,068 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 155 Fire
Household Hazardous Waste
Program Description:

The Household Hazardous Waste Program, administered by the San Bernardino County Fire Protection District under contract with the City, provides for the safe and proper disposal of hazardous materials that might otherwise enter landfills or wastewater treatment systems. The program is staffed by trained personnel equipped to evaluate, accept, document, and facilitate the recycling or disposal of household hazardous waste in compliance with applicable regulations.

Through this program, the City continues its commitment to environmental stewardship by ensuring hazardous substances and electronic waste are managed responsibly. The San Bernardino County Fire Protection District also oversees the operation and maintenance of the facility. In 2025, the program served approximately 4,471 participants, demonstrating its continued effectiveness and community value.

The San Bernardino County Fire Protection District operates and manages the following programs:
• E-Waste Recycling: This program runs in conjunction with the Household Hazardous Waste Program and is operated by the SBCFPD.
• Household Hazardous Waste Disposal Program: Redlands was the first city within San Bernardino County to begin offering this service and has been operating for approximately thirty years in conjunction with San Bernardino County. Funds collected through this program pay for disposal, training, and operational needs within the department as it relates to hazardous materials (SARA, OSHA, RCRCA, TSCA, DOT, California Health and Safety Code). As of March 2020, the City ceded the program to SBCFPD by way of an amendment to the original contract set to expire June 30, 2027. SBCFPD now operates the Redlands HHW location on behalf of the City.

Program Objectives:
• Continue operation and maintenance of the Household Hazardous Waste Collection site each Saturday, from 9:00 a.m. to 2:00 p.m., for the citizens of Redlands • Continue the safe collection, categorization, lab packaging, and storage of household hazardous waste collection for proper disposal
• Continue to collaborate with San Bernardino County Household Hazardous Waste to provide outreach and public education regarding the proper disposal of hazardous materials used in the home
• Seek State and/or Federal grants to help fund programs • Continue site inventory control and monitoring
• Coordination of inter-agency waste disposal programs
• Maintain State and County mandated certification and program elements City of Redlands FY2027 and FY2028 Proposed Biennial Budget 156 Accomplishments for Calendar Year 2025:
• Approximately 4,471 countywide residents used the program in 2025 including 3,592 Redlands residents.
• Collection and proper disposal of 219,912 (pounds) of Household Hazardous Waste including used motor oil and oil products.
• Collected 59,376.24 pounds of electronic waste.
• Collection and disposal of:
o 43,542.58 lbs. of Latex Paint
o 20,231.90 lbs. of Oil Base Paints
o 11,875.25 lbs. of Flammable Liquids/ Solids
o 2,858.86 lbs. of Bulked Flammable Liquids
o 3,298.68 lbs. of Poison
o 1,539.38 lbs. of Corrosive Acids
o 439.82 lbs. of Corrosive bases
o 879.65 lbs. of Oxidizers
o 2,638.94 lbs. of Aerosols
o 1,495.40 lbs. of Home Generated Sharps
o 4,838.06 lbs. of Antifreeze
o 6,245.50 lbs. of Lead/ Acid Batteries
o 4,618.15 lbs. of Household Batteries
o 1,759.30 lbs. of NiCad Batteries
o 14,382.24 lbs. of Motor Oil/ Oil products
o 769.69 lbs. of Oil Filters
o 21,331.49 lbs. of Covered Electronic Waste
o 59,376.24 lbs. of Electronic Devices
o 1,979.21 lbs. of Fluorescent Tubes
o 879.65 lbs. of Compressed Gas Cylinders
o 2,199.12 lbs. of Cooking Oil
o 3,078.77 lbs. of Pharmaceuticals
o 5,717.71 lbs. of Waste Exchanged Materials
o 3,936.42 lbs. of other Hazardous Materials
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 157

DEPARTMENT/DIVISION

HOUSEHOLD

HAZARDOUS WASTE

FUND ORGKEY
HOUSEHOLD HAZARDOUS WASTE 206250
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6710 Special Contractual Services 143,059 148,424 148,424 154,360 165,000 6804 General Govt Service Charge 9,016 9,332 9,332 9,634 10,050 TOTAL SERVICES 152,075 157,756 157,756 163,994 175,050

SUPPLIES
7102 Small Tools & Equipment - 500 500 500 500
TOTAL SUPPLIES - 500 500 500 500
DIVISION TOTAL 152,075 158,256 158,256 164,494 175,550
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 158

DEPARTMENT SUMMARY
FUND

HOUSEHOLD HAZARDOUS WASTE
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

HOUSEHOLD HAZARDOUS
WASTE
152,075 158,256 158,256 164,494 175,550
DEPARTMENT TOTAL 152,075 158,256 158,256 164,494 175,550 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 159 A. K. Smiley Public Library
Mission Statement:

The mission of the A. K. Smiley Public Library is to inspire lifelong learning by providing free and open access to information, thereby enhancing the community of Redlands. We accomplish this mission by providing access to:
• Current and classic books, periodicals, and audiovisual material for circulation to adults, teens, and children
• E-books, audiobooks, films, and electronic reference databases • A diverse range of informational, educational and entertainment programming including in our Assembly Room and Contemporary Club facility
• Free usage of computers and high-speed Internet
• The Lincoln Memorial Shrine, a museum/library dedicated to Abraham Lincoln and the American Civil War
• The Museum of Redlands, which in the Fall of 2026 will open as a museum dedicated to preserving the history and culture of our community
• The Adult Literacy Program, which assists those who seek to improve their reading, writing and conversational skills
• Smiley Heritage Tours, which provides cultural bus tours of Redlands to all fourth graders in the Redlands Unified School District area
Current Projects:
• Designing and installing exhibits at the Museum of Redlands towards the goal of opening the facility in the fall of 2026 (City Strategic Plan CSP priority A and C) • Expanding our programming, building on the success of such events as Smiley LIVE! Library Days, Family Day and our Dia de los Muertos celebration (CSP priority A and C) • Evaluating future library space needs as directed in the five-year library strategic plan adopted by the Library Board of Trustees (CSP priority A and C) • Addressing several major infrastructure and accessibility issues at both the Library and the Contemporary Club (CSP priority A and C)
• Collaborating with the Watchorn Lincoln Memorial Association on commemorating the semiquincentennial of the Declaration of Independence
Major Completed Projects:
• Collaborated with FCS on installation of a new elevator and fire suppression door in the library's lower level utilizing a California State Library grant (CSP priority C) • Collaborated with the Redlands Historical Museum Association to transfer the completed Museum of Redlands building to the City to be administered by the Library • Collaborated with the First Baptist Church to develop a new partnership to hold adult literacy meetings and events at their facility (CSP priority A and C) City of Redlands FY2027 and FY2028 Proposed Biennial Budget 160

DEPARTMENT/DIVISION

LIBRARY

ADMINISTRATION

FUND ORGKEY
GENERAL FUND 101190
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 1,739,154 1,875,843 1,875,843 2,038,685 2,192,043 5002 Salaries: Part-Time 245,819 257,000 257,000 256,941 256,941 5005 Vacancies - - - (80,692) (80,967)
5101 Overtime Salaries 19,026 - 5,000 10,500 10,815
5201 Stand By 2,009 - 2,472 - -
5202 Holiday Pay 21,984 - 12,665 - -
5203 Bonus - - - 4,378 4,378
5204 Accrual Payout 22,743 - 14,755 17,731 17,731
5301 Banked Leave Buy Back 29,696 49,592 49,592 34,113 34,113 5401 Pension Contributions 510,010 550,765 550,765 513,457 520,941 5501 Social Security/Medicare 157,709 163,964 163,964 169,495 171,518 5601 Deferred Compensation 37,910 31,386 37,269 32,084 32,084 5701 Health/Dental Insurance 363,589 390,305 390,305 353,034 354,040 5702 Workers' Comp Insurance 91,960 95,160 95,160 109,095 111,976 5703 Disability Insurance 10,026 10,786 10,786 13,709 14,013 5704 Unemployment Insurance 2,599 16,926 16,926 16,926 16,926 5705 Life Insurance 1,488 1,512 1,512 1,578 1,578
5801 Vehicle Allowance 4,800 4,800 4,800 4,800 4,800
5802 Eyecare Reimbursement 2,680 7,200 7,200 7,200 7,200 5803 Clothing Allowance 4,500 4,800 5,100 3,600 3,600
5804 Uniform Rental 251 - 139 - -
5903 Other Taxable Benefits 3,432 3,600 3,600 7,350 7,350 5904 Tuition Reimbursement - - - - -
5905 Employee Wellness Program 840 - 529 - -

TOTAL SALARIES AND

BENEFITS
3,272,225 3,463,639 3,505,381 3,513,984 3,681,080

SERVICES
6102 Legal Services 1,017 - - - -
6106 Other Professional Services 19 102 102 102 102
6304 Telephone 3,508 2,377 2,377 2,448 2,521
6401 Meeting & Prof Development 257 383 463 476 490
6403 Training 1,276 510 510 510 510
6601 Postage 6,848 4,080 4,080 4,202 4,328
6703 Software Support/Development - 3,073 3,073 3,165 3,260 6710 Special Contractual Services - 100,000 - 100,000 - 6802 Info Tech Service Charges 5,262 4,636 4,636 10,000 10,600 6803 City Garage Charges 3,473 3,618 3,166 2,561 2,321
6901 Printing and Binding 1,713 1,772 1,772 1,812 1,867 6904 Land and Building Rent 12,000 - 6,000 - -
6906 Office Equip & Furn Rent 1,659 6,077 - 5,479 6,879 6912 Reimbursed Expenditures 3,000 182,591 182,591 - -
TOTAL SERVICES 40,032 309,219 208,770 130,757 32,879

SUPPLIES
7002 Office Supplies 6,915 13,211 7,011 7,222 7,439
7101 Office Equipment & Furniture 26,372 - 3,057 4,149 3,243 7102 Small Tools & Equipment 422 408 408 420 433
7206 Vehicle Maintenance 150 1,020 1,020 1,051 1,082
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 161

DEPARTMENT/DIVISION

LIBRARY

ADMINISTRATION

FUND ORGKEY
GENERAL FUND 101190
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7208 Repair/Maintenance Supplies 3,085 3,290 6,382 5,573 6,771 7210 Building Supplies 1,765 1,928 1,928 1,986 2,045
7211 Computer Components 11,136 - 4,723 4,864 5,010
7301 Gasoline - 1,530 - - -
7810 Special Departmental Supplies 630 680 680 700 721
7811 Books 5,077 5,100 5,107 5,253 5,411
7812 Audio-Visual Materials 1,120 1,037 1,051 1,051 1,082 7901 Non-Capital Expenditures 40,228 100,000 100,000 1,400 - TOTAL SUPPLIES 96,899 128,204 131,367 33,669 33,237

FIXED ASSETS
8801 Capital Lease - 13,800 10,175 10,202 10,202
TOTAL FIXED ASSETS - 13,800 10,175 10,202 10,202
DIVISION TOTAL 3,409,157 3,914,862 3,855,693 3,688,611 3,757,398 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 162 AK Smiley Public Library – Special Collections Division Mission Statement:

As a research center and museum exhibition program, the Special Collections Division seeks to deepen the understanding of the history of Redlands, San Bernardino County, and Southern California, as well as President Abraham Lincoln and the American Civil War, through education, interaction, exhibition, and research.

Programs:

The Special Collections Division includes three major programs:
• The Heritage Room research center
• The Lincoln Memorial Shrine
• Museum of Redlands
Current Projects:
• Exhibitions and Programs – Develop and present relevant exhibits that are engaging, offer new perspectives, and help achieve deeper understanding to inspire vibrant communities, especially with regard to Museum of Redlands and the Lincoln Memorial Shrine.
• Build the capacity to design, develop, staff, and fund appropriate educational programming to be the prime resource to the community for information on the history of the greater Redlands area and Southern California, Abraham Lincoln, the American Civil War, and enslavement of people of African origin and their descendants. • Increase visibility and raise public awareness of Special Collections’ programs, such as The Lincoln Memorial Shrine and Museum of Redlands, through marketing and communication, branding, visibility and recognition, partnering with Watchorn Lincoln Memorial Association and Redlands Historical Museum Association • Ensuring responsible management of the collections through appropriate acquisitions, accessibility, and by review of the Collections Development Plan, to confirm it supports collections stewardship goals and revising the plan as needed Major Completed Projects in 2025/26:
• Volunteer Docent Program - Created and implemented inaugural docent training program cohort for Museum of Redlands
• Consolidated object collections from three separate locations into a single storage facility at Museum of Redlands
• Completed Special Collections Institutional Plan 2025-2029 • Continued the “Southern California in Film” series
• Presented “Redlands History,” a 6-week class for the public, conducted fall 2025 and spring 2026
• Recruited and trained new volunteers working with historical materials • Welcomed 8,018 visitors to the Lincoln Memorial Shrine 7/1/2025-3/31/2026 • Served 409 research visits in the Heritage Room 7/1/2025-3/31/2026 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 163

DEPARTMENT/DIVISION

LINCOLN SHRINE

FUND ORGKEY
GENERAL FUND 101191
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6601 Postage 242 260 260 268 276
TOTAL SERVICES 242 260 260 268 276

SUPPLIES
7811 Books 1,056 1,097 1,097 1,129 1,163
TOTAL SUPPLIES 1,056 1,097 1,097 1,129 1,163
DIVISION TOTAL 1,298 1,357 1,357 1,397 1,439
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 164

DEPARTMENT/DIVISION

MUSEUM OF REDLANDS

FUND ORGKEY
GENERAL FUND 101192
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6301 Water Wastewater Refuse - 27,200 11,150 28,016 28,857 6304 Telephone - 4,500 2,500 2,575 2,650
6307 Electricity & Gas - 81,600 110,925 114,255 117,863 6502 Property Insurance - 279,540 - - -
6601 Postage - 1,500 250 6,000 1,591
6710 Special Contractual Services - 104,400 45,000 107,532 110,758 6712 Landfill Tipping Charges - - 533 549 565
6802 Info Tech Service Charges - 750 750 8,000 8,000
6901 Printing and Binding - 1,500 1,500 2,500 1,592
6903 Janitorial Services - 71,400 71,400 73,542 75,748
6906 Office Equip & Furn Rent - 2,000 - - -
TOTAL SERVICES - 574,390 244,008 342,969 347,624

SUPPLIES
7002 Office Supplies - 1,500 1,500 1,545 1,591
7101 Office Equipment & Furniture - 10,000 12,000 5,000 5,150 7102 Small Tools & Equipment - 1,000 1,000 1,030 1,061
7204 Building/Grounds Maintenance - 25,500 23,000 23,690 24,401 7208 Repair/Maintenance Supplies - 11,500 14,000 14,420 14,853 7210 Building Supplies - 500 500 515 530
TOTAL SUPPLIES - 50,000 52,000 46,200 47,586
DIVISION TOTAL - 624,390 296,008 389,169 395,210
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 165

DEPARTMENT SUMMARY
FUND

GENERAL FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
LIBRARY ADMINISTRATION 3,409,157 3,914,862 3,855,693 3,688,611 3,757,398 LINCOLN SHRINE 1,298 1,357 1,357 1,397 1,439
MUSEUM OF REDLANDS - 624,390 296,008 389,169 395,210
DEPARTMENT TOTAL 3,410,455 4,540,608 4,153,057 4,079,178 4,154,047 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 166

DEPARTMENT/DIVISION

LIBRARY GRANTS

FUND ORGKEY
GRANTS 200190
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6912 Reimbursed Expenditures (3,000) (182,591) (182,591) - - TOTAL SERVICES (3,000) (182,591) (182,591) - -

SUPPLIES
7901 Non-Capital Expenditures 2,000,000 - - - -
TOTAL SUPPLIES 2,000,000 - - - -

FIXED ASSETS
8301 Construction In Progress 9,002 - - - -
8503 Building Const/Improv - 547,761 547,761 - -
TOTAL FIXED ASSETS 9,002 547,761 547,761 - -
DIVISION TOTAL 2,006,002 365,170 365,170 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 167

DEPARTMENT SUMMARY
FUND
GRANTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
LIBRARY GRANTS 2,006,002 365,170 365,170 - -
DEPARTMENT TOTAL 2,006,002 365,170 365,170 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 168 Development Services Department
Mission Statement:

The Development Services Department provides quality service to customers through professionalism, integrity, and the efficient use of resources. The Department responds to the changing needs of the community by promoting and implementing policies, goals, procedures, and actions that address community issues related to the physical environment and to strengthen and diversify the economic base of the City. The Department endeavors to enhance and protect the urban and natural environment of the City of Redlands, ensuring that the City remains an ideal place to live and work.

The Development Services Department is responsible for the administration and oversight of the following divisions and functions:
• Building and Safety Division: Building inspections, plan review, and building permit processing • Community Development Block Grant (CDBG) Program: Capital improvement project and public service agency sub-recipient awards administration • Economic Development Division: Business attraction and retention, business assistance, workforce development, and tourism promotion
• Engineering: Review and inspection of development proposals for compliance with State and City codes, standards, and other governmental requirements relating to land subdivisions, grading, drainage, and improvements within the City rights-of-way • Planning Division: Land development application review, general plan, specific plan and development code maintenance and updates, long range planning, and historic preservation Departmental Goals:
• Provide for the short- and long-term physical development within the City consistent with the policies and goals established in the General Plan
• Provide professional, accurate, timely, and courteous service to the public • Provide opportunities that will improve and preserve housing for all income levels • Provide for managed development that will preserve, enhance, and maintain the special quality of life valued by this community
• Allow for development within the City of Redlands which occurs in a way that promotes the optimum social and economic well-being of the entire community • Provide a high standard of technical expertise by department staff through regular training and awareness of new legislation, innovative construction techniques, and architectural/planning design techniques
• Provide continued review, update and implementation of the City’s General Plan, Specific Plans and zoning ordinances in response to the changing needs of the community • Monitor historic resources of the community and encourage their preservation Performance Measures:
• All telephone calls received before noon to be returned the same day • 90% of Plan Checks processed in 3 weeks for first review • 90% of "LEED" Plan Checks processed in 4 weeks for second review • 100% of Inspections completed next business day if requested by 4:00 pm of the previous day City of Redlands FY2027 and FY2028 Proposed Biennial Budget 169 Development Services Department
Economic Development Division
Program Description:

The Economic Development Division administers a variety of economic development programs and services that support businesses and residents in the City of Redlands. Division staff are actively involved in business attraction and retention activities, embracing and growing the relationship between the City and the Redlands Chamber of Commerce and the local business community, as well as participating in regional conferences and collaborating with other economic development agencies in California. Division staff are actively involved in business networking, marketing, workforce development, tourism, and project support.

Program Objectives:
• Implementation of the City Council-approved Strategic Plan Economic Development initiatives.
• Liaison to the business community of Redlands and the Redlands Chamber of Commerce relating to questions, concerns and suggestions about governmental affairs. • Growth of collaborative partnerships with Redlands Chamber of Commerce, Redlands Visitor Center and other local entities to continue the promotion of tourism in Redlands. • Support of new developments in Redlands by providing guidance and assistance through the development process.
• Establishment and administration of business retention and attraction programs. • Development of strategic and effective marking campaigns for Redlands. • Collaboration with other local, county and state economic development agencies to continue to promote the Inland Empire as a region.
• Attendance at national and regional trade shows to increase Redlands’ visibility in the marketplace.
• Continue to enhance resource and business information pages on City’s website. • Identification and implementation of parking solutions for the Downtown Redlands area. • Spearhead the development of funding applications through elected officials for City infrastructure projects supporting economic development.

Significant Program Changes for Fiscal Year 2026-27 and 2027-28:
• Development of an Economic Development Strategic Plan to identify development opportunities and challenges in Redlands.
• Development of a Business Outreach program to identify ways the City can better serve the business community.
• Expansion of the digital communication system with Downtown Redlands businesses for upcoming special events, announcements and significant developments via the City’s email and text communication platforms.
• Adoption of the use of digital technology (Placer AI) to aid business attraction and retention efforts, as well as identify trends in the Redlands marketplace. • Growth of leveraging of collaboration with economic development agencies like Team California to continue the promotion of Redlands.
• Coordination with other City departments to begin the exploration of a Wayfinding sign program to direct the public to attractions in the City.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 170 Accomplishments for Fiscal Year 2024-25 and 2025-26:
• Implemented a digital communication system with Downtown Redlands businesses to bring awareness to special events, announcements and significant developments in the Downtown area that may impact their business.
• Completed a feasibility study to determine the viability and costs associated with the demolition of the existing Redlands City Hall site and replacement with a surface level parking lot and second level.
• Completed a feasibility study to determine the viability and costs associated with the demolition of the existing Redlands City Hall site and replacement with a multi-level parking structure with retail space on Citrus Avenue or Cajon Street. • Negotiated a lease agreement with the property owner of the Redlands Mall to ensure public parking remains available while the Redlands Mall is demolished and site begins redevelopment.
• Negotiated an interim lease agreement with San Bernardino County Transportation Authority (SBCTA) for the use of a vacant lot between 7th & 9th street for a public parking lot, while concurrently negotiating potential acquisition of the property. • Coordinated and collaborated with other City divisions and Southern California Edison on finding an energy solution for development projects in northwest Redlands. • Signed a contract with Placer AI, a location intelligence company, to gain greater insight into the locations, brands and enterprises that are successful in Redlands. • Led successful efforts in receiving funding through the Community Project Funding program through Congressman Aguilar’s and Obernolte’s offices for New Safety Hall and Texonia Park Modernization and Renovations projects.
• Represented Redlands at numerous economic development conferences including the International Council of Shopping Centers (ICSC), ICSC Western and the State of the County. • Expansion of the relationship with Redlands Chamber of Commerce through spearheading partnership with their Leadership Redlands program and monthly presentations at the Chamber’s Government Review Committee.
• Growth of the City’s advertising efforts via Inland Empire Magazine, Audacy, and other digital avenues.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 171

DEPARTMENT/DIVISION

ECONOMIC

DEVELOPMENT

FUND ORGKEY
GENERAL FUND 101161
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 250,614 235,153 235,153 264,890 282,823 5005 Vacancies - - - (9,706) (9,718)
5101 Overtime Salaries 39 - 25 - -
5202 Holiday Pay 1,594 - 188 - -
5203 Bonus 1,308 1,185 2,452 1,185 1,185
5204 Accrual Payout 4,837 - 1,616 1,334 1,334
5301 Banked Leave Buy Back 15,976 9,764 16,800 10,740 10,740 5401 Pension Contributions 71,632 69,043 69,043 70,199 70,535 5501 Social Security/Medicare 19,608 17,255 17,255 19,365 19,433 5601 Deferred Compensation 7,736 4,511 14,733 4,331 4,331 5701 Health/Dental Insurance 42,787 42,803 42,803 39,389 39,513 5702 Workers' Comp Insurance 13,694 14,170 14,170 17,098 17,549 5703 Disability Insurance 118 123 123 267 279
5704 Unemployment Insurance (1,174) 868 868 846 846
5705 Life Insurance 132 126 126 123 123
5801 Vehicle Allowance 1,500 1,500 1,500 1,500 1,500
5802 Eyecare Reimbursement 300 600 600 510 510
5803 Clothing Allowance 60 60 90 60 60
5903 Other Taxable Benefits 414 450 450 413 413

TOTAL SALARIES AND

BENEFITS
431,176 397,611 417,995 422,542 441,456

SERVICES
6304 Telephone - 417 - - -
6401 Meeting & Prof Development 1,774 4,115 1,926 6,918 6,918 6402 Travel
Expense/Reimbursement
1,144 4,425 308 4,800 5,260
6601 Postage - 131 67 100 100
6703 Software Support/Development - 2,081 10,000 10,000 10,000 6710 Special Contractual Services 4,800 34,355 25,600 - - 6802 Info Tech Service Charges 15,231 13,418 13,418 21,759 22,484 6901 Printing and Binding - 1,500 1,500 1,500 1,500
6902 Advertising 14,991 14,159 16,000 16,000 16,000
6909 Subscriptions & Memberships 15,927 5,275 12,048 17,650 17,715 TOTAL SERVICES 53,867 79,876 80,867 78,727 79,977

SUPPLIES
7002 Office Supplies 160 2,125 1,284 1,300 1,400
7101 Office Equipment & Furniture - 257 753 500 500
7211 Computer Components 2,160 4,044 - 1,500 1,500
7806 Promotional Supplies - 3,592 500 2,500 2,500
7807 Food - 78 78 80 80
7810 Special Departmental Supplies 55 3,172 1,500 1,500 1,500 TOTAL SUPPLIES 2,374 13,269 4,115 7,380 7,480
DIVISION TOTAL 487,418 490,755 502,977 508,649 528,913
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 172 Development Services Department
Building and Safety Division
Program Description:

This program provides for the administration of California codes and City ordinances to safeguard life, health, property, and public welfare by regulating the design, construction, accessibility, quality of materials, flood protection, use, occupancy, location, and maintenance of all buildings and structures within the community of Redlands. This includes plan review of proposed buildings and structures, on-site inspections to assure compliance, complaint investigation and enforcement, disaster emergency response, maintenance, storage and retrieval of building records, and coordination with other government agencies.

Program Objectives:
• Maintain and promote excellent customer service standards at the One Stop Permit Center and in the field.
• Perform requested onsite building inspections in a timely and courteous manner. • Perform final occupancy inspections on building projects, as required, to ensure compliance with conditions of approval and development code standards. • Perform effective and efficient plan review within acceptable timeframes for compliance with the California Code of Regulations Title 24 parts 1 through 12, Federal Emergency Management Agency (FEMA) regulations, California Senate and Assembly bills, and locally adopted municipal codes.
• Provide staff support to the Development Review Committee, Minor Exception Permit Committee, Historic and Scenic Preservation Commission, Disaster Council, Fire Department, Code Enforcement, Municipal Utilities and Engineering Department, and local chapters of the International Code Council.
• Review and implement Assembly Bill 717 and Senate Bill 1608, to meet the continuing education and accessibility requirements that applies to the Building Division. • Continue to upgrade department storage methods of building plans to comply with state laws by digitizing plans.
• Evaluate and investigate existing structures within the City for compliance with various municipal codes and state regulations.
• Prepare for disaster response by training and certification in emergency services. • Maintain and improve accessibility throughout the City by employing a Certified Access Specialist (CASp).

Significant Program Changes for Fiscal Year 2026-27:
• Continue with the digital scanning of all paper records for properties within the City. This will reduce the printing costs of the department, reduce PRA department record response times, and allow public access to records for viewing by using a Laserfiche web link on the City website at all hours of the day.
• Launch the Online Public Portal for building trade permits with the ability to pay electronically.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 173 Significant Program Changes for Fiscal Year 2027-28:
• Continue with the digital scanning of all paper records for properties within the City. This will reduce the printing costs of the department, reduce PRA department record response times, and allow public access to records for viewing by using a Laserfiche web link on the City website at all hours of the day.
• Rework Cityworks building permit case types and workflows to streamline and simplify processing of permits and backend fee calculations.
• Make available to the public the option to submit plans electronically for electronic plan review through Project Dox.

Accomplishments for Fiscal Year 2025-26:
• Issued over 2,981 permits for building, electrical, mechanical, plumbing, or combinations thereof ensuring compliance with current city-adopted building and municipal codes. • Performed 1,877 plan reviews for construction permit submittals, with a 10 day average delivery to applicants.
• Performed 17,753 construction permit inspections by next business day after inspection request, improving community/department relations.
• Provided staff support for the improvement of City Works computer permitting software program.
• Provided community building activity reports to the county, state, and federal levels of government.
• Enforced the 2022 editions of the California Building Standards Codes, resulting in improved citywide construction safety and improved energy efficiency reducing CO2 emissions by 152,858 metric tons per year compared to the 2019 Energy Code, the equivalent of taking 32,051 gas cars off the road each year.
• Enforced the City’s Local Agency Management Plan (LAMP) to review plans and field inspect the installation and abandonment of Onsite Wastewater Treatment Systems for properties within the City’s jurisdiction.
• Updated the Municipal Code for the new FEMA Flood Insurance Rate Maps effective October 20, 2025.
• Updated the Municipal Code with the adoption of the 2025 California Building Code updates effective January 1, 2026.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 174

DEPARTMENT/DIVISION

BUILDING & SAFETY

FUND ORGKEY
GENERAL FUND 101162
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 892,854 962,584 962,584 989,181 1,066,288 5005 Vacancies - - - (36,069) (36,526)
5101 Overtime Salaries 143 - 500 2,500 2,500
5202 Holiday Pay 12,978 - 7,503 - -
5203 Bonus 2,858 711 3,058 2,511 2,511
5204 Accrual Payout 17,672 - 10,325 16,330 16,330
5301 Banked Leave Buy Back 724 6,739 6,739 1,277 1,277
5401 Pension Contributions 259,514 259,589 259,589 280,179 282,644 5501 Social Security/Medicare 67,418 66,679 66,679 75,634 76,211 5601 Deferred Compensation 16,200 8,921 19,059 12,770 12,770 5701 Health/Dental Insurance 179,466 165,291 165,291 187,435 187,817 5702 Workers' Comp Insurance 21,910 22,672 22,672 22,797 23,399 5703 Disability Insurance 6,392 5,884 5,884 7,930 8,036 5704 Unemployment Insurance 609 3,906 3,906 4,223 4,223 5705 Life Insurance 579 567 567 614 614
5801 Vehicle Allowance 3,180 900 1,590 3,180 3,180
5802 Eyecare Reimbursement 2,262 2,700 2,700 2,760 2,760 5803 Clothing Allowance 1,950 1,950 2,100 1,950 1,950
5903 Other Taxable Benefits 1,998 1,755 1,755 3,488 3,488

TOTAL SALARIES AND

BENEFITS
1,488,707 1,510,848 1,542,500 1,578,690 1,659,471

SERVICES
6106 Other Professional Services 82,928 157,473 106,200 121,200 121,200 6304 Telephone 4,449 3,442 2,313 2,500 2,500
6401 Meeting & Prof Development 2,838 8,800 5,168 7,300 7,300 6402 Travel
Expense/Reimbursement
78 2,550 24 1,250 2,300
6403 Training - 103 500 500 -
6601 Postage 1 21 5 100 -
6703 Software Support/Development 99,345 95,457 97,853 129,242 96,657 6705 Filming and Microfilming - 2,294 - 1,000 1,000
6710 Special Contractual Services - 5,000 - 25,000 25,000 6802 Info Tech Service Charges 68,540 60,381 60,381 97,915 101,179 6803 City Garage Charges 31,751 33,077 28,945 23,412 21,224 6901 Printing and Binding 572 2,292 1,138 1,000 1,000
6906 Office Equip & Furn Rent 2,850 3,476 1,500 - 2,500 6909 Subscriptions & Memberships 3,835 5,372 1,510 5,411 5,608 TOTAL SERVICES 297,186 379,737 305,536 415,830 387,468

SUPPLIES
7001 Books & Supplies - 1,326 6,045 2,000 2,040
7002 Office Supplies 2,516 7,086 3,912 3,500 3,500
7004 Uniform/Safety Clothing 1,432 - 1,000 1,500 2,000
7101 Office Equipment & Furniture 1,916 7,097 3,527 3,600 3,700 7206 Vehicle Maintenance 1,042 670 1,400 1,200 1,200
7211 Computer Components 2,160 3,500 1,500 2,000 2,000
7810 Special Departmental Supplies 61 3,060 400 3,750 3,825 TOTAL SUPPLIES 9,127 22,738 17,784 17,550 18,265
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 175

DEPARTMENT/DIVISION

BUILDING & SAFETY

FUND ORGKEY
GENERAL FUND 101162
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

FIXED ASSETS
8801 Capital Lease 5,600 25,369 15,822 13,621 13,621
TOTAL FIXED ASSETS 5,600 25,369 15,822 13,621 13,621

DEBT SERVICE
9002 Principal - Lease 7,927 - - - -
9102 Interest - Lease 968 - - - -
TOTAL DEBT SERVICE 8,895 - - - -
DIVISION TOTAL 1,809,516 1,938,693 1,881,642 2,025,691 2,078,825 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 176 Development Services Department
Land Use Engineering
Program Description:

Land Use Engineering is a division within the Development Services Department. This division is intended to work hand-in-hand with developers and staff in the Planning Division to achieve excellence in design and construction of development projects in the City.

Program Objectives:
• Manage One-Stop Permit Center for public records and information related to properties and development. The One-Stop Permit Center is designed to guide developers through multi-Departmental requirements, the Redlands Municipal Code, Measure U, and State regulations.
• Review of improvement plans, maps, and building permits. • Process encroachment permits and street closures.
• Issue grading permits, truck route permits and wide load permits. • Perform National Pollutant Discharge Elimination System (NPDES) investigations and plan reviews.
• Coordinate with Planning Division and other City Departments for entitlements, including conditional use permits, Planning Commission Review and Approval, lot line adjustments, and other land use activities.
• Work with Planning Division on initial planning phases needed for development of the University Village plan.
• Coordinate with Facilities and Community Services and outside consultants for annexations into Community Facilities District 2004-1.
• Prepare annual reports for Street Lighting District No. 1 and Landscape Maintenance District No. 1.
• Assess Development Impact Fees on development and redevelopment projects that are then used by other departments to mitigate the impact of those projects on the infrastructure of the City.
• Provide customer assistance regarding city policies and procedures related to land development issues, grading, street improvements, and utility connections. • Perform plan reviews for building, grading, streets design, erosion control, water quality management, sewer, water, irrigation, street trees, storm drainage, storm water pollution prevention, street lights, hydrology, lot line adjustment, parcel map, and tract maps. • Process applications for sewer and water service in the Mentone area as mandated by Measure ”U”.
• Create and maintain an organizational ethos amongst all OSPC staff that customer service is of the utmost importance. Respond to telephone, e-mail, and public counter inquiries for customer assistance at the One Stop Permit Center.
• Provide engineering related assistance to other City departments, such as the City Manager, City Attorney, Municipal Utilities & Engineering Department, and Code Enforcement Division.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 177 Significant Program Changes for Fiscal Year 2026-27:
• Continued participation in the implementation of an Electronic Plan Review process across all divisions of the One-Stop Permit Center with the objective of creating an integrated, and simplified, method for intake, review, and return of all types of development plans submitted to the City for review.
• Transfer of operations to the new State Street City Hall facility. • Assist developers with implementation of SB 9 lot splits for creation of additional housing opportunities
Significant Program Changes for Fiscal Year 2027-28:
• Finalize implementation of operational procedures for the new One Stop Permit Center at the new State Street City Hall facility.
• Assist University of Redlands with progress on their University Village development plans Accomplishments for Fiscal Year 2025-26:
• Issued over 1000 encroachment permits for work within the public right-of-way. • Prepared conditions of approval for all entitlement cases presented to the Planning Commission.
• Performed more than 175 engineering plan reviews.
• Assessed development impact fees in excess of $5M on new development projects.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 178

DEPARTMENT/DIVISION

LAND USE

ENGINEERING

FUND ORGKEY
GENERAL FUND 101163
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 330,525 352,501 352,501 251,101 281,197 5005 Vacancies - - - (10,523) (10,811)
5202 Holiday Pay 2,401 - 2,634 - -
5204 Accrual Payout 1,377 - 1,404 1,963 1,963
5301 Banked Leave Buy Back 4,481 5,285 5,285 2,961 2,961 5401 Pension Contributions 96,887 104,693 104,693 98,640 99,710 5501 Social Security/Medicare 25,632 27,432 27,432 27,076 27,334 5601 Deferred Compensation 11,847 8,443 12,133 8,337 8,337 5701 Health/Dental Insurance 52,186 44,322 44,322 53,404 53,554 5702 Workers' Comp Insurance 8,216 8,502 8,502 21,696 22,269 5703 Disability Insurance 1,167 1,307 1,307 1,611 1,636 5704 Unemployment Insurance 1,541 1,541 1,541 1,541 1,541 5705 Life Insurance 226 224 224 224 224
5802 Eyecare Reimbursement 738 1,065 1,065 1,065 1,065
5803 Clothing Allowance 720 540 720 720 720
5903 Other Taxable Benefits 263 263 263 533 533
5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
538,206 556,118 564,026 460,347 492,232

SERVICES
6005 License & Permits 161,452 209,537 170,560 220,000 250,000 6102 Legal Services 240 - 15,500 15,500 15,500
6106 Other Professional Services 79,088 221,847 27,500 80,000 80,000 6401 Meeting & Prof Development 616 2,400 2,400 3,550 3,550 6402 Travel
Expense/Reimbursement
- 500 500 500 500
6403 Training - 5,000 300 5,000 5,000
6802 Info Tech Service Charges 60,925 53,672 53,672 87,035 89,937 6901 Printing and Binding - 375 50 50 50
6902 Advertising - 10,000 - - -
6906 Office Equip & Furn Rent - 1,500 - - -
6909 Subscriptions & Memberships 305 5,000 - 5,000 5,000 TOTAL SERVICES 302,626 509,831 270,482 416,635 449,537

SUPPLIES
7001 Books & Supplies - 2,040 500 500 500
7002 Office Supplies 1,417 2,515 2,275 1,900 1,950
7101 Office Equipment & Furniture - - 3,527 3,600 3,600 7211 Computer Components - 1,500 - - -
7810 Special Departmental Supplies - 1,275 200 1,250 1,250 TOTAL SUPPLIES 1,417 7,330 6,502 7,250 7,300
DIVISION TOTAL 842,250 1,073,279 841,010 884,232 949,069 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 179 Development Services Department
Planning Division
Program Description:

The Planning Division plays a key role in achieving the City’s goals and objectives in terms of physical development and growth management. Three general categories of Planning activities include: Current Planning (development review); Long-Range Planning; and Historic Preservation. Current Planning functions include: processing of land development applications; responding to land use inquiries from residents, business owners, and development professionals; project management for special projects; administering contracts with consultants hired to perform environmental and planning services; and annexation requests. Long-Range Planning functions include: maintenance and updates of the General Plan, Housing Element, Climate Action Plan, various Specific Plans, and the zoning code (RMC Title 18); inter-agency coordination and strategic planning; and grant administration for State planning grants. Planning administers the City’s historic preservation program including related permits and policy documents. Planning Division staff also regularly provide technical and professional support to the City Council, Planning Commission, Historic & Scenic Preservation Commission, Preliminary/Development Review Committee, and the Minor Exception Permit Committee.

Program Objectives:
• Respond to telephone, e-mail, and public counter inquiries for customer assistance at the One Stop Permit Center and the Planning Division office.
• Support business assistance and economic development activities including review of Business License applications, special event applications, commercial property searches, zoning research, etc.
• Accept, process, and prepare staff reports for land use applications and permits. • Provide staff support to the Planning Commission and the Historic & Scenic Preservation Commission, in the form of agendas, legal advertising and notices, staff reports, presentations, and recording meeting minutes.
• Provide staff support to the Minor Exception Committee, in the form of agendas, legal advertising and notices, project reviews, and meeting minutes. • Provide staff support to the Preliminary/Development Review Committee, in the form of agendas, project review, and conducting meetings.
• Process General Plan amendments, Zoning Map and Zoning Code amendments, and Specific Plan amendments.
• Prepare and submit an annual Housing Element Progress Report and General Plan Progress Report as required by the State of California.
• Maintain and expand the Historic Preservation program, including advising property owners, issuing permits, maintaining restoration/rehabilitation agreements (Mills Act Contracts) with private property owners, implementing the Historic Architectural Design Guidelines, and public outreach/information.
• Process annexation applications for surrounding unincorporated areas to accommodate proposed development projects.
• Process Pre-Annexation Agreement applications for developments in surrounding unincorporated areas to connect to City water and/or sewer services. • Review final grading, building, and landscaping plans prior to issuance of building permits to ensure compliance with code requirements and any applicable conditions of approval. • Perform final occupancy inspections on building projects as required to ensure compliance with conditions of approval and municipal code standards.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 180 • Provide Planning-related assistance to other City departments, such as the City Manager, City Attorney, Municipal Utilties & Engineering Department, and Code Enforcement Division. • Continue to evaluate Planning procedures for efficiency and effectiveness, and implement improvements or changes to department procedures and zoning code regulations. • Seek and apply for State or regional grant funding in support of Planning work programs and activities.
• Coordinate Planning activities with other agencies, such as the County of San Bernardino, the San Bernardino County Transportation Authority (SBCTA), Southern California Association of Governments (SCAG), Caltrans, and Omnitrans.

Significant Program Changes for Fiscal Years 26-27 and 27-28:
• Facilitate redevelopment of the Redlands Mall site with a new mixed-use development project, in cooperation with the property’s new ownership.
• Continue implementation of the adopted 2021-2029 Housing Element and completing the relevant remaining tasks contained in the work program. • Administer new inclusionary housing program including in-lieu fees for affordable housing projects.
• Implement and provide pre-approved ADU Standard Plans to residents and property owners. • Facilitate the long-term expansion of the Kaiser medical facility complex on California Street with new medical office building(s).
• Assist with implementation of policies and programs in the Climate Action Plan. • Complete a citywide historical reconnaissance survey for the historical preservation program.

Accomplishments for Fiscal Years 24-25 and 25-26:
• Completed several significant work program items listed in the 2021-2029 Housing Element including:
o Adopted Ordinance No. 2983 to complete the required rezoning actions to accommodate the Regional Housing Needs Allocation (RHNA).
o Adopted Ordinance No. 2985 updating housing definitions, various housing regulaions in the Zoning Regulations (RMC Title 18), and adoped new development standards for Single-Room Occupancy homes as well as Agricultural Worker housing. o Adopted Ordinance No. 2959 creating an Inclusionary Housing program and new chapter in the Zoning Regulaitons (RMC Title 18).
o Prepared draft ordinance to update Accesssory Dwelling Units (ADU) development standards.
o Hired architectural consultant to prepare pre-approved ADU Standard Plans with four different architectural styles for use by residents and property owners (available to the public at no cost).
• Adopted Ordinance No. 2961 to permit agri-tourim land uses in the Agricultural (A-1) District and related development standards and performance criteria. • Completed a comprehensive update to the adopted Climate Action Plan. • Completed a comprehensive update to the City’s Truck Route Map (per AB 98 requirements) contained in the 2035 General Plan’s “Connected City” chapter. • Preparation and noticing responsibilities for Planning Commission agendas, Historic & Scenic Preservation Commission agendas, Development Review Committee agendas, and Minor Exception Permit Committee agendas.
• Developer completed construction of the Liberty Lane Apartments project with 80 apartments affordable to lower-income housholds located at the southwest corner of Texas St. and Lugonia Ave.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 181 • Prepare staff reports for matters scheduled before the City Council, Planning Commission, and Historic & Scenic Preservation Commission.
• Developer completing the build-out of the Bergamot Specific Plan (SP No. 64) with 434 new single-family homes plus a new 12-acre public park (now dedicated to the City) located to the north and west of Citrus Valley High School.
• Entitled the long-term expansion of the Kaiser medical center property on California Street. • Entitled a new mixed use project in the downtown within the Transit Villages Specific Plan. • New hotel under construction on West Colton Ave. near downtown Redlands (Tru Hotel by Hilton).
• Several applications currently under review for new retail, commercial, and shopping center developments.
• Prepared required annual progress reports for the 2035 General Plan as well as the Housing Element.
• Provided administrative oversight, including contract administration, for Surface Mining and Reclamation Act (SMARA) compliance for six quarries and two reclamation plants operated by CEMEX Materials and Robertson’s Ready Mix in the Santa Ana River Wash. • Participated in inter-agency coordination for regional Planning efforts, including those of the San Bernardino Council of Governments (SBCOG) and other studies by the San Bernardino County Transportation Authority (SBCTA), including seeking and receiving grant funds.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 182

DEPARTMENT/DIVISION

PLANNING

FUND ORGKEY
GENERAL FUND 101164
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 928,925 1,127,247 1,127,247 1,277,159 1,373,069 5002 Salaries: Part-Time 1,680 16,000 16,000 33,660 33,660 5005 Vacancies - - - (44,172) (44,554)
5101 Overtime Salaries 1,338 - 500 1,500 2,000
5202 Holiday Pay 8,848 - 6,489 - -
5203 Bonus 5,125 2,844 6,169 4,644 4,644
5204 Accrual Payout 28,915 - 10,073 19,379 19,379
5301 Banked Leave Buy Back 2,250 22,700 22,700 3,661 3,661 5401 Pension Contributions 269,555 310,756 310,756 330,737 337,906 5501 Social Security/Medicare 68,685 79,503 79,503 90,968 92,808 5601 Deferred Compensation 36,755 18,448 45,774 21,637 21,637 5701 Health/Dental Insurance 114,440 127,435 127,435 136,473 136,850 5702 Workers' Comp Insurance 21,872 22,633 22,633 28,943 29,707 5703 Disability Insurance 2,303 1,925 1,925 3,878 4,069 5704 Unemployment Insurance 679 4,340 4,340 5,243 5,243 5705 Life Insurance 521 567 567 636 636
5801 Vehicle Allowance 5,880 3,600 3,600 5,880 5,880
5802 Eyecare Reimbursement 1,726 2,700 2,700 2,730 2,730 5803 Clothing Allowance 390 690 1,110 690 690
5903 Other Taxable Benefits 4,704 3,045 3,045 5,820 5,820 5904 Tuition Reimbursement - - - 5,000 5,000

TOTAL SALARIES AND

BENEFITS
1,504,591 1,744,433 1,792,566 1,934,466 2,040,836

SERVICES
6005 License & Permits 269 150 3,119 500 500
6102 Legal Services 99,352 - 75,000 100,000 100,000
6106 Other Professional Services 313,745 597,245 534,232 125,583 125,583 6107 Reimb Professional Services 339,723 851,969 458,743 181,814 24,500 6304 Telephone 1,068 2,065 900 2,200 2,300
6401 Meeting & Prof Development 3,951 11,091 13,355 13,550 14,160 6402 Travel
Expense/Reimbursement
2,475 4,910 10,451 5,600 5,850
6403 Training 1,245 550 1,119 575 600
6601 Postage 3,074 3,570 2,500 3,700 3,850
6703 Software Support/Development - 26,450 10,000 - -
6705 Filming and Microfilming 2,364 10,000 - 10,300 10,600 6710 Special Contractual Services - 150 - - -
6802 Info Tech Service Charges 68,540 60,381 60,381 97,915 101,179 6803 City Garage Charges 4,961 5,168 4,523 3,658 3,316
6901 Printing and Binding 794 2,244 348 3,050 3,175
6902 Advertising 9,876 11,471 15,000 11,500 11,500
6906 Office Equip & Furn Rent 1,191 3,000 3,000 3,975 4,095 6909 Subscriptions & Memberships 4,093 5,800 4,981 6,125 6,350 6910 Labor - - 3,000 - -
6912 Reimbursed Expenditures - - - - -
TOTAL SERVICES 856,722 1,596,213 1,200,652 570,045 417,558

SUPPLIES
7001 Books & Supplies 2,969 1,170 250 2,000 2,000
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 183

DEPARTMENT/DIVISION

PLANNING

FUND ORGKEY
GENERAL FUND 101164
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7002 Office Supplies 4,737 7,223 4,243 3,950 3,950
7101 Office Equipment & Furniture - 1,170 3,569 5,000 5,000 7203 Office Equipment Maintenance - 444 500 500 500
7206 Vehicle Maintenance 380 - 430 500 550
7211 Computer Components 4,188 1,754 488 5,500 5,500
7807 Food 798 530 950 1,550 1,575
7810 Special Departmental Supplies 387 530 2,000 2,550 2,650 TOTAL SUPPLIES 13,460 12,824 12,429 21,550 21,725

FIXED ASSETS
8801 Capital Lease 4,858 16,887 3,850 3,615 3,615
TOTAL FIXED ASSETS 4,858 16,887 3,850 3,615 3,615
DIVISION TOTAL 2,379,631 3,370,357 3,009,496 2,529,676 2,483,734 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 184

DEPARTMENT SUMMARY
FUND

GENERAL FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
ECONOMIC DEVELOPMENT 487,418 490,755 502,977 508,649 528,913 BUILDING & SAFETY 1,809,516 1,938,693 1,881,642 2,025,691 2,078,825 LAND USE ENGINEERING 842,250 1,073,279 841,010 884,232 949,069 PLANNING 2,379,631 3,370,357 3,009,496 2,529,676 2,483,734 DEPARTMENT TOTAL 5,518,814 6,873,084 6,235,125 5,948,249 6,040,541 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 185 Development Services Department
Grants Program
Program Description:

The Grants Program within the Development Services Department consists of the administration of the City’s Community Development Block Grant (CDBG) program as well as researching, applying, securing, and administering other county, state, or federal grant opportunities that benefit advance planning and community development needs.

As a Participating Jurisdiction (PJ) in the County of San Bernardino’s Urban County Program, the City receives an annual award from the U.S. Department of Housing and Urban Development (HUD). The County of San Bernardino administers the award on behalf of the City and retains 20% of the annual award for administrative expenses.

CDBG Program Objectives:
• Development of a viable urban community by providing decent housing, suitable living environment, and expanded economic opportunity for City residents, particularly those earning low and moderate incomes.
• Aid in the prevention or elimination of slums or blight. • Aid in activities designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs.

Other Grants Program Objectives:
• To secure funding opportunities that encourage and support advanced planning activities that help plan for future growth and development.

Significant Program Changes for Fiscal Year 2026-27 and 2027-28:
• Identify and fund new rehabilitation projects with CDBG funds that benefit low to moderate income residents with CDBG funds.
• Implement new public service programs that benefit low-to-moderate income residents with CDBG funds.
• Fund emergency generator projects at the designated cooling centers.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 186 Accomplishments for Fiscal Year 2024-2026:
• Completed the Joslyn Senior Center Rehabilitation Project Phase I. • Provided contract administration for the Joslyn Senior Center Rehabilitation Project Phase II. • Provided contract administration to five CDBG funded public services programs that benefited low to moderate income residents.
• Provided contract administration for Flores Senior Center Rehabilitation Project. • Provided contract administration for the ECBG HVAC replacement at the Joslyn Senior Center.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 187

DEPARTMENT/DIVISION

PLANNING GRANTS

FUND ORGKEY
GRANTS 200164
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time - 67,249 67,249 - -

TOTAL SALARIES AND

BENEFITS
- 67,249 67,249 - -

SERVICES
6005 License & Permits 366 366 - -
6710 Special Contractual Services 54,502 46,700 46,700 - - 6901 Printing and Binding 400 400 - -
TOTAL SERVICES 54,502 47,466 47,466 - -

SUPPLIES
7901 Non-Capital Expenditures 29,069 8,011 8,011 - -
TOTAL SUPPLIES 29,069 8,011 8,011 - -

FIXED ASSETS
8501 Other Betterments/Improv 279,770 279,770 - -
8503 Building Const/Improv 545,474 545,474 - -
8706 All Other Equipment - 133,300 133,300 - -
TOTAL FIXED ASSETS - 958,544 958,544 - -
DIVISION TOTAL 83,571 1,081,269 1,081,269 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 188

DEPARTMENT SUMMARY
FUND
GRANTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
PLANNING GRANTS 83,571 1,081,269 1,081,269 - -
DEPARTMENT TOTAL 83,571 1,081,269 1,081,269 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 189 Development Services Department
Inclusionary Housing Program
Program Description:

The Inclusionary Housing Program, adopted by the City Council on December 19, 2023, is an integral part of the City’s implementation programs contained in the 2021-2029 Housing Element.

The Inclusionary Housing Program requires that a percentage of housing units in new residential developments be provided at an affordable cost to low- and moderate-income households, or an in-lieu fee be paid, in all new residential developments with ten (10) or more residential units.

The in-lieu fees collected under this program must be utilized for the provision of housing affordable to Very Low-income, Low-income, and Moderate-income households in the City, and administration and compliance monitoring of the Inclusionary Housing Program.

Inclusionary Housing Program Objectives:
• Promote the development of affordable housing throughout the City. • Increase the supply of housing affordable to very low-, low- and moderate-income families through the assistance and cooperation of private residential developers.

Significant Program Changes for Fiscal Year 2026-27 and 2027-28:
• This was a new program and budget added for this fiscal year. • Received In-Lieu revenue in the amount of $1.86 million in 2025-2026 for future projects.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 190

DEPARTMENT/DIVISION

INCLUSIONARY

HOUSING OPERATIONS

FUND ORGKEY
INCLUSIONARY HOUSING 255900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time - 75,000 75,000 - -

TOTAL SALARIES AND

BENEFITS
- 75,000 75,000 - -

SERVICES
6102 Legal Services - 35,000 35,000 35,000 35,000
TOTAL SERVICES - 35,000 35,000 35,000 35,000
DIVISION TOTAL - 110,000 110,000 35,000 35,000
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 191

DEPARTMENT/DIVISION

INCLUSIONARY

HOUSING

PROJECTS/GRANTS

FUND ORGKEY
INCLUSIONARY HOUSING 255910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services - 35,000 35,000 35,000 35,000 TOTAL SERVICES - 35,000 35,000 35,000 35,000
DIVISION TOTAL - 35,000 35,000 35,000 35,000
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 192

DEPARTMENT SUMMARY
FUND

INCLUSIONARY HOUSING
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

INCLUSIONARY HOUSING

OPERATIONS
- 110,000 110,000 35,000 35,000

INCLUSIONARY HOUSING

PROJECTS/GRANTS
- 35,000 35,000 35,000 35,000
DEPARTMENT TOTAL - 145,000 145,000 70,000 70,000
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 193 Facilities and Community Services
Program Description:

The mission of the Facilities and Community Services Department is to promote and develop policies and practices that minimize impact to the environment, improve response experience to reports and service requests, provide quality service to city residents, businesses, and visitors, and improve the quality of life for present and future generations.

Program Objectives:
• Administration: Providing customer service and support to residents, businesses, and visitors of the city for requests for service and information. • Animal Services: Overseeing animal welfare and services. • Building Maintenance Division: Maintaining city facilities and projects. • Citrus Groves and Preservation Division: Focusing on the preservation and management of the City’s citrus groves.
• Code Enforcement Division: Ensuring compliance with state and local laws and codes. • Downtown Division: Managing the City’s Certified Farmers Markets and other downtown events, promoting tourism, and serving the downtown business community. • Equipment Maintenance Division: Maintaining the city fleet, operating the natural gas fuel station, and maintenance of the Corporate Yard.
• Hillside Memorial Park: Management and operation of the city-owned cemetery. • Parks Division: Maintaining parks, Landscape Maintenance Districts, and Community Facility Districts.
• Recreation and Senior Services Divisions: Managing Community and Senior Centers and their programs.
• Redlands Municipal Airport: Management and operation of the city-owned airport. • State Street Building (Future City Hall): Management and operation of the new city hall facility.
• Street Tree Division: Providing tree trimming and emergency tree services. • Street Maintenance and Electrical: Maintaining the city streets, street lighting and public right of way areas.
• Solid Waste and Landfill Division: Collection of residential and commercial green waste, refuse, recyclables, operating the California Street Landfill, and developmental and implementation of the city’s recycling programs.

Accomplishments Fiscal Year 2024-2026:
• Issued 371 special events permits.
• Processed 2607 work orders.
• Completed 14 Capital Improvement Projects.

Fiscal Year 2026-2028 Goals:
• Issuance of 420 special events permits.
• Process 2900 work orders.
• Complete 21 Capital Improvement Projects.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 194

DEPARTMENT/DIVISION

FACILITIES AND

COMMUNITY SERVICES

ADMINISTRATION

FUND ORGKEY
GENERAL FUND 101300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 417,872 378,726 378,726 252,798 288,092 5005 Vacancies - - - (12,627) (12,863)
5101 Overtime Salaries 8,195 1,500 10,000 8,195 8,195
5202 Holiday Pay 3,351 - 1,932 - -
5203 Bonus 3,975 3,564 3,564 3,601 3,601
5204 Accrual Payout 28,627 - 25,757 28,685 28,685
5301 Banked Leave Buy Back 97 32,164 1,582 115 115
5401 Pension Contributions 120,378 157,731 157,731 120,530 123,053 5501 Social Security/Medicare 31,379 38,373 38,373 33,578 34,325 5601 Deferred Compensation 9,567 11,015 11,015 9,904 9,911 5701 Health/Dental Insurance 72,144 92,308 92,308 61,193 61,483 5702 Workers' Comp Insurance 18,543 19,188 19,188 44,728 45,910 5703 Disability Insurance 1,565 1,276 1,276 2,079 2,181 5704 Unemployment Insurance 325 2,322 2,322 2,040 2,040 5705 Life Insurance 292 337 337 297 297
5801 Vehicle Allowance 4,560 5,016 5,016 4,560 4,560
5802 Eyecare Reimbursement 2,100 1,605 1,605 1,182 1,182 5803 Clothing Allowance 306 831 831 636 636
5903 Other Taxable Benefits 1,651 1,002 1,002 1,701 1,701 5904 Tuition Reimbursement - - - - -
5905 Employee Wellness Program 901 - 601 - -

TOTAL SALARIES AND

BENEFITS
725,830 746,958 753,166 563,195 603,104

SERVICES
6005 License & Permits 27,293 - 27,293 28,112 28,955
6006 Taxes 104 - - - -
6102 Legal Services - - 111 - -
6106 Other Professional Services 7,146 18,375 18,375 5,000 5,000 6301 Water Wastewater Refuse - 321 - - -
6304 Telephone 11,016 8,190 8,190 9,000 9,000
6401 Meeting & Prof Development 2,409 1,600 5,000 5,150 5,250 6402 Travel
Expense/Reimbursement
4,470 1,680 2,217 2,300 2,500
6403 Training 515 3,400 505 - -
6501 Settlements/Judgments - 1,820,000 1,820,000 - -
6601 Postage 13,724 1,995 1,500 2,055 2,117
6703 Software Support/Development - 840 30,840 30,000 30,000 6708 Special Program Expenditures 20,000 51,000 162,735 380,308 380,308 6710 Special Contractual Services 131,693 355,320 200,000 150,000 151,500 6802 Info Tech Service Charges 83,772 73,799 73,799 119,674 123,663 6803 City Garage Charges 63,502 66,154 28,945 23,412 21,224 6901 Printing and Binding 6,996 6,600 6,600 6,463 6,463 6902 Advertising 5,000 - - 1,000 1,000
6906 Office Equip & Furn Rent 1,659 4,310 3,000 4,310 4,310 6909 Subscriptions & Memberships 2,466 7,516 7,976 8,553 8,858 6910 Labor 993 18,783 18,783 - -
TOTAL SERVICES 382,758 2,439,883 2,415,869 775,337 780,148 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 195

DEPARTMENT/DIVISION

FACILITIES AND

COMMUNITY SERVICES

ADMINISTRATION

FUND ORGKEY
GENERAL FUND 101300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7002 Office Supplies 17,653 23,750 13,000 16,223 16,709 7004 Uniform/Safety Clothing 612 840 2,000 1,000 1,000
7101 Office Equipment & Furniture 6,791 36,948 10,500 10,815 11,140 7204 Building/Grounds Maintenance - - 713,000 - -
7205 Machinery & Equip. Maint. - 4,482 - - -
7206 Vehicle Maintenance 1,432 1,447 1,447 1,447 1,447
7208 Repair/Maintenance Supplies 365 220 2,446 250 250
7209 Janitorial Supplies - 857 - - -
7211 Computer Components 3,975 10,150 7,000 10,150 10,150 7807 Food 4,918 6,825 7,500 8,000 8,000
7810 Special Departmental Supplies 3,501 9,272 1,000 1,050 1,050 7901 Non-Capital Expenditures 223 4,000 - 1,000 1,000
TOTAL SUPPLIES 39,471 98,791 757,893 49,935 50,746

FIXED ASSETS
8001 Land Acquisitions 365 - 25,304 - -
8301 Construction In Progress 22,263 - - - -
8501 Other Betterments/Improv - 713,038 - - -
8706 All Other Equipment - 50,000 50,000 - -
8801 Capital Lease 33,657 44,944 22,609 22,316 22,316
TOTAL FIXED ASSETS 56,284 807,982 97,913 22,316 22,316
DIVISION TOTAL 1,204,343 4,093,614 4,024,841 1,410,782 1,456,313 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 196 Facilities and Community Services
Building Maintenance Division
Program Description:

The Building Maintenance Division performs routine maintenance and emergency services for all City-owned facilities, and oversees all capital improvement projects. This division provides maintenance services to all City facilities totaling approximately 583,000 square feet, including the Citrus Center, Civic Center, three parking structures, A.K. Smiley Library, Lincoln Shrine, Contemporary Club, four Fire stations, Police Annex, Joslyn Senior Center, Community and Senior Center, Corporate Yard, Redlands Airport, Landfill, Hillside Memorial Park and 1625 Redlands Blvd. In 2026, the State Street building at 300 E. State Street and the Museum of Redlands was added to the City facility list as well.

This Division is utilized for a wide range of building maintenance functions including carpentry, plumbing, electrical, HVAC, painting, furniture assembly and relocation, general cleaning services, and special projects including office construction, remodeling, janitorial issues, and environmental testing.

City staff prepares scope of services, solicits bids, and administers contracts for various vendors to provide ongoing and specialized maintenance services. Among the contracted services are janitorial, pest control, HVAC maintenance, elevator servicing, and security alarm systems.

Program Objectives:
• Provide quality service when responding to calls from various departments regarding maintenance and repair of City-owned facilities.
• Reduce response time for maintenance and service calls. • Work synergistically with other divisions for various department and city-wide projects. • Manage CIP and other facility related projects.

Accomplishments for Fiscal Year 2024-2026:
• HVAC replacement at Joslyn Senior Center.
• Managed Animal Shelter Kennel Expansion.
• Managed Citrus Avenue Parking Structure Improvement Plan. • Managed Ford Park Restroom Placement Project.
• Managed the Library Modernization Project.
• Worked alongside Tilden-Coil on State Street building Renovation Project. • Completed Fire Station 2 remodel project.
• Completed 860 work orders.

Goals for Fiscal Year 2026-2028:
• Complete Citrus Center Remodel and move city staff into new offices. • Manage CIP projects for Roof and HVAC replacements at several City Facilities. • Complete 265 preventative maintenance requests.
• Complete 680 work orders.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 197

DEPARTMENT/DIVISION

BUILDING

MAINTENANCE

FUND ORGKEY
GENERAL FUND 101301
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 487,111 580,455 580,455 637,580 683,943 5002 Salaries: Part-Time - - 11,415 - -
5005 Vacancies - - - (23,782) (24,044)
5101 Overtime Salaries 67,367 29,242 85,000 50,000 55,000 5201 Stand By 4,684 - 8,000 5,000 5,000
5202 Holiday Pay 10,702 - - - -
5203 Bonus - 440 440 - -
5204 Accrual Payout 1,624 - 10,042 1,650 1,650
5301 Banked Leave Buy Back 3,955 14,156 14,156 4,422 4,422 5401 Pension Contributions 140,829 168,440 168,440 153,941 156,410 5501 Social Security/Medicare 44,177 43,873 43,873 42,325 42,943 5601 Deferred Compensation 3,518 4,796 4,796 3,932 3,990 5701 Health/Dental Insurance 119,230 153,347 153,347 123,852 124,184 5702 Workers' Comp Insurance 21,230 21,968 21,968 20,574 21,117 5703 Disability Insurance 4,446 4,143 4,143 4,972 5,047 5704 Unemployment Insurance 547 3,147 3,147 3,103 3,103 5705 Life Insurance 431 457 457 451 451
5801 Vehicle Allowance - 600 600 - -
5802 Eyecare Reimbursement - 2,175 2,175 2,145 2,145
5803 Clothing Allowance 810 1,830 1,830 2,010 2,010
5804 Uniform Rental 408 - 278 - -
5903 Other Taxable Benefits 2,641 2,813 2,813 3,653 3,653

TOTAL SALARIES AND

BENEFITS
913,710 1,031,882 1,117,375 1,035,828 1,091,025

SERVICES
6005 License & Permits 1,350 - - 5,000 5,000
6007 Penalties and Interest 1,700 - 45 - -
6301 Water Wastewater Refuse 122,927 130,826 130,826 162,767 167,650 6304 Telephone 24,180 17,544 17,544 18,070 18,613
6307 Electricity & Gas 1,023,305 931,173 931,173 1,043,156 1,074,451 6402 Travel
Expense/Reimbursement
3 - 58 - -
6403 Training 401 1,721 1,721 1,773 1,826
6601 Postage - - 48 - -
6703 Software Support/Development 103,653 4,984 43,093 30,000 30,900 6710 Special Contractual Services 141,561 150,886 150,840 153,325 155,885 6712 Landfill Tipping Charges - 1,092 1,092 1,125 1,159 6802 Info Tech Service Charges 30,462 26,836 26,836 43,518 44,968 6803 City Garage Charges 42,665 44,447 38,895 31,460 28,520 6901 Printing and Binding 716 - 109 - -
6902 Advertising - 2,122 2,122 2,185 2,251
6903 Janitorial Services 411,771 477,405 477,405 548,805 565,269 6904 Land and Building Rent 12,000 - 6,000 6,000 6,000
6908 Other Rentals 195,358 54,188 190,000 190,000 100,000 6910 Labor 302,513 290,008 290,008 300,000 303,000
TOTAL SERVICES 2,414,565 2,133,232 2,307,816 2,537,184 2,505,491

SUPPLIES
7002 Office Supplies 1,915 4,065 2,000 2,642 2,721
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 198

DEPARTMENT/DIVISION

BUILDING

MAINTENANCE

FUND ORGKEY
GENERAL FUND 101301
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7004 Uniform/Safety Clothing 7,224 6,203 10,000 10,000 10,000 7101 Office Equipment & Furniture 1,436 1,700 3,500 1,751 1,804 7102 Small Tools & Equipment 5,461 4,000 4,000 4,120 4,244 7204 Building/Grounds Maintenance 11,074 - - - -
7205 Machinery & Equip. Maint. 3,110 - - - -
7206 Vehicle Maintenance 2,943 - 4,333 5,000 5,000
7208 Repair/Maintenance Supplies 334,091 352,160 362,724 253,818 262,653 7209 Janitorial Supplies 8,810 10,609 10,609 10,927 11,255 7210 Building Supplies 1,779 26,503 3,000 5,000 7,000
7211 Computer Components 1,685 - 1,500 1,000 1,000
7807 Food 170 750 750 773 796
7810 Special Departmental Supplies 25,893 120,418 45,000 50,000 50,000 TOTAL SUPPLIES 405,590 526,408 447,417 345,031 356,472

FIXED ASSETS
8501 Other Betterments/Improv - - - 225,000 -
8503 Building Const/Improv 33,214 - - - -
8704 Motor Vehicles 141,884 - - - -
8706 All Other Equipment 20,500 - - - -
8801 Capital Lease (14,022) 53,462 100,147 89,335 89,335 TOTAL FIXED ASSETS 181,576 53,462 100,147 314,335 89,335

DEBT SERVICE
9002 Principal - Lease 52,074 - - - -
9102 Interest - Lease 3,895 - - - -
TOTAL DEBT SERVICE 55,968 - - - -
DIVISION TOTAL 3,971,409 3,744,983 3,972,754 4,232,379 4,042,323 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 199 Facilities and Community Service
Streets and Electrical Division
Program Description:

The Street Division provides for the general maintenance and repair of 314 miles of streets, and 90 miles of storm drains within the city. Crews respond to approximately 1,000 annual calls for routine street maintenance services.

The division also provides routine street cleaning and sweeping services on public roadways within the city. Cleaning actions include mechanical sweeping, debris removal, storm cleanup, and other related services. Streets are swept on a bi-monthly basis totaling 510 curb-miles swept during each sweeping rotation, equating to 1,020 curb-miles cleaned per month.

The division is also charged with providing the maintenance and repair of 72 city-owned traffic signals and approximately 5,000 city-owned streetlights.

Program Objectives:
• Patch and repair asphalt surfaces, including potholes, utility trenches, and cracks. • Repair and ramping of sidewalks damaged by tree roots. • General maintenance and repair to the storm drain system, including clearing of vegetation, repairs to open and rock channels, debris removal, clearing of blockages, and general inspections.
• Operation of a weed abatement program to include shoulder grading and mowing, spraying, and removal to comply with Fire Department abatement requirements. • Provide support to public safety departments for barricades, signs, and human resources in response to emergencies.
• Install, replace, repair, and maintain all traffic signage within the public right-of-way. • Install, restore, and maintain all roadway markings and striping, including painted curbs, street legends, crosswalks, centerline and lane-line stripes, and parking lot lines. • The field service coordinator is responsible for oversight of the City’s contracted street sweeping and traffic signal infrastructure.
• Service, repair, and maintain streetlights.

Accomplishments for Fiscal Year 2024-2026:
• Maintained over 300 miles of streets, including potholing and skin patching, and sidewalk ramping, using 10 tons of asphalt in 457 locations. • Provide street sweeping for 12,000 curb miles throughout the City. • Completed approximately 7,800 underground service alert tickets. These are USA dig alerts that the streets / electrical to have to locate underground utilities • Serviced and/or repaired 1,560 street lights.
• Completed annual cleaning of all storm drain inlets and channels. • Fabricated, replaced, or serviced 870 street signs.
• Replaced 27 streetlights/traffic signals knocked down in traffic accidents. • Provided 400 labor hours, eradicating illegal dumps.
• Roughly 12 lane miles of curbs to sweep added to stripe City of Redlands FY2027 and FY2028 Proposed Biennial Budget 200 Projects Completed:
• Worked with SBCTA on light rail traffic signal integration. • Replaced 4 power pedestals that were knocked down in traffic accidents. • Cleared canyon roads during heavy winter rain events. • Retro fitted intersection traffic signal power feed Redlands Blvd. and Orange St. • Installation of approx. 2,900 linear ft of guardrail from Ford St to Palm Ave. • Worked alongside Parks and Building Maintenance staff to complete various downtown projects including Christmas holiday decorations and lighting and community service day. • Completed city wide speed limit sign replacement estimated 70 signs.

Accomplishments for Fiscal Year 2024-2026:
• 586 Field Responses.
• 463 Signs created and replaced.
• 8,000 underground service alerts.

Goals for Fiscal Year 2026-2028:
• 430 field responses.
• 454 signs create and replace.
• 8,200 Underground service alerts.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 201

DEPARTMENT/DIVISION

ELECTRICAL

FUND ORGKEY
GENERAL FUND 101302
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 77,204 95,003 95,003 91,432 99,388 5005 Vacancies - - - (3,655) (3,696)
5101 Overtime Salaries - 4,000 4,000 - -
5202 Holiday Pay 3,463 - 1,497 - -
5204 Accrual Payout 608 - 2 238 238
5301 Banked Leave Buy Back 2,561 3,911 3,911 1,487 1,487 5401 Pension Contributions 23,048 28,216 28,216 24,491 25,368 5501 Social Security/Medicare 6,394 7,596 7,596 6,785 7,014 5601 Deferred Compensation 300 300 10,631 300 300
5701 Health/Dental Insurance 25,926 32,621 32,621 33,268 33,356 5702 Workers' Comp Insurance 2,739 2,834 2,834 2,850 2,925 5703 Disability Insurance 591 779 779 816 857
5704 Unemployment Insurance 92 543 543 543 543
5705 Life Insurance 68 79 79 79 79
5802 Eyecare Reimbursement 299 375 375 375 375
5803 Clothing Allowance 300 338 338 600 600
5804 Uniform Rental 106 - 69 - -
5903 Other Taxable Benefits 2 38 38 188 188

TOTAL SALARIES AND

BENEFITS
143,701 176,633 188,532 159,795 169,020

SERVICES
6007 Penalties and Interest - - 40 - -
6008 State Mandated Fees 2,361 3,500 3,500 3,500 3,605
6304 Telephone 2,176 2,500 2,500 2,575 2,652
6307 Electricity & Gas 10,041 8,000 8,000 8,240 8,487
6311 Elec Service-CA Traffic Sgl 26,633 24,000 24,000 24,720 25,462 6312 Elec Service-City Traffic Sgl 79,774 70,000 70,000 72,100 74,263 6314 Elec Service-SCE Street Light 661 3,000 3,000 3,090 3,183 6315 Electric Service-Street Light 651,370 600,000 600,000 618,000 636,540 6316 Elec Service-State Str Light 73,028 40,000 40,000 41,200 42,436 6402 Travel
Expense/Reimbursement
- 250 - - -
6403 Training 812 1,300 1,300 1,339 1,379
6710 Special Contractual Services 452,396 628,600 600,000 600,000 600,000 6802 Info Tech Service Charges 15,231 13,418 13,418 21,759 22,484 6803 City Garage Charges 65,486 68,221 59,699 48,287 43,774 6902 Advertising - 500 100 515 530
6904 Land and Building Rent 9,608 12,128 12,128 12,492 12,867 TOTAL SERVICES 1,389,577 1,475,417 1,437,685 1,457,817 1,477,662

SUPPLIES
7002 Office Supplies 18 1,000 - - -
7003 Awards/Recognition Prgm - 500 500 515 530
7004 Uniform/Safety Clothing - 600 - - -
7102 Small Tools & Equipment - 2,000 - - -
7205 Machinery & Equip. Maint. - 15,000 - - -
7208 Repair/Maintenance Supplies 292,961 209,996 150,000 155,400 160,962 7209 Janitorial Supplies - 50 - - -
7210 Building Supplies - 500 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 202

DEPARTMENT/DIVISION

ELECTRICAL

FUND ORGKEY
GENERAL FUND 101302
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7211 Computer Components - 1,000 - - -
7804 Medical Supplies - 100 - - -
7807 Food - 250 - 258 265
7810 Special Departmental Supplies 159 11,000 5,000 7,000 8,000 TOTAL SUPPLIES 293,138 241,996 155,500 163,173 169,758

FIXED ASSETS
8706 All Other Equipment 136,281 - - - -
8801 Capital Lease (9,291) - - - -
TOTAL FIXED ASSETS 126,989 - - - -

DEBT SERVICE
9001 Principal 21,684 - - - -
9002 Principal - Lease 9,081 - - - -
9101 Interest 1,816 - - - -
9102 Interest - Lease 211 - - - -
TOTAL DEBT SERVICE 32,791 - - - -
DIVISION TOTAL 1,986,197 1,894,046 1,781,717 1,780,784 1,816,440 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 203

DEPARTMENT/DIVISION

STREETS

FUND ORGKEY
GENERAL FUND 101304
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 800,396 888,186 888,186 943,865 1,018,873 5005 Vacancies - - - (37,979) (38,353)
5101 Overtime Salaries 39,263 35,000 40,000 36,050 37,132 5201 Stand By 10,703 15,000 15,000 15,450 15,914
5202 Holiday Pay 16,234 - 12,260 - -
5204 Accrual Payout 3,130 - 1,637 991 991
5301 Banked Leave Buy Back 23,643 24,496 27,799 9,852 9,852 5401 Pension Contributions 236,326 259,743 259,743 251,111 253,190 5501 Social Security/Medicare 68,334 68,873 68,873 69,732 70,218 5601 Deferred Compensation 1,248 1,248 32,241 1,248 1,248 5701 Health/Dental Insurance 181,733 168,066 168,066 237,840 238,430 5702 Workers' Comp Insurance 95,393 98,712 98,712 96,544 99,093 5703 Disability Insurance 8,157 8,535 8,535 10,602 10,693 5704 Unemployment Insurance 955 5,768 5,768 5,768 5,768 5705 Life Insurance 801 837 837 839 839
5802 Eyecare Reimbursement 580 3,987 3,987 3,987 3,987
5803 Clothing Allowance 3,450 3,788 3,788 4,100 4,100
5804 Uniform Rental 1,554 - 735 - -
5903 Other Taxable Benefits 2,178 2,856 2,856 3,494 3,494

TOTAL SALARIES AND

BENEFITS
1,494,078 1,585,095 1,639,021 1,653,493 1,735,468

SERVICES
6004 Bank/Collection Agent Fees - 60 - - -
6005 License & Permits - 206,000 - - -
6007 Penalties and Interest 4 309 309 - -
6105 Medical/Physicals 1,350 2,060 2,060 2,122 2,060
6106 Other Professional Services - - 4,483 - -
6301 Water Wastewater Refuse 4,196 4,635 4,635 4,774 4,635 6304 Telephone 7,733 6,695 5,500 6,896 6,695
6307 Electricity & Gas 19,971 12,875 12,875 13,261 12,875 6401 Meeting & Prof Development - 2,575 1,000 2,652 2,575 6402 Travel
Expense/Reimbursement
- 3,914 - 4,031 3,914
6403 Training 4,600 10,300 8,000 8,000 8,000
6601 Postage - 103 - 106 103
6703 Software Support/Development - - 2,153 2,200 2,400 6710 Special Contractual Services 1,056,805 947,912 1,084,912 755,036 758,836 6712 Landfill Tipping Charges 17,918 87,550 20,000 20,000 20,600 6802 Info Tech Service Charges 91,387 80,508 80,508 108,000 111,600 6803 City Garage Charges 597,778 614,328 412,464 362,884 295,808 6901 Printing and Binding - 103 - - -
6902 Advertising 291 1,030 - - -
6908 Other Rentals 4,291 25,750 15,000 20,000 20,000
6909 Subscriptions & Memberships - 1,030 - - -
6910 Labor 5,614 62,272 15,000 15,000 20,000
6911 Bad Debt Expense 108 - - - -
TOTAL SERVICES 1,812,047 2,070,009 1,668,898 1,324,963 1,270,101 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 204

DEPARTMENT/DIVISION

STREETS

FUND ORGKEY
GENERAL FUND 101304
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7002 Office Supplies 2,595 6,090 3,000 3,183 3,278
7003 Awards/Recognition Prgm - 3,090 2,000 3,183 3,278
7004 Uniform/Safety Clothing 26,497 36,050 36,050 37,132 38,245 7101 Office Equipment & Furniture - 515 127 - -
7102 Small Tools & Equipment 10,174 15,450 10,000 15,914 16,391 7204 Building/Grounds Maintenance - 15,450 - - -
7206 Vehicle Maintenance 4,786 3,090 5,000 3,183 3,278
7208 Repair/Maintenance Supplies 192,616 227,666 211,180 198,094 204,936 7209 Janitorial Supplies 2,567 2,060 2,060 2,122 2,185
7211 Computer Components - - 554 - -
7802 Purchased Water 439 - 700 - -
7804 Medical Supplies - 309 - - -
7807 Food 1,998 1,030 500 1,061 1,093
7810 Special Departmental Supplies 30,874 31,013 50,000 31,827 32,782 TOTAL SUPPLIES 272,548 341,812 321,170 295,696 305,467

FIXED ASSETS
8403 Street Construction 21,995 - - - -
8602 Other Land Improvements 174,600 - - - -
8704 Motor Vehicles 89,628 580,813 580,813 - -
8706 All Other Equipment 43,149 101,439 60,000 - -
8801 Capital Lease 31,437 72,124 70,556 67,063 67,063
TOTAL FIXED ASSETS 360,810 754,376 711,369 67,063 67,063

DEBT SERVICE
9001 Principal 29,870 30,835 30,835 17 -
9002 Principal - Lease 40,871 - - - -
9101 Interest 2,241 1,165 1,165 84 -
9102 Interest - Lease 2,249 - - - -
TOTAL DEBT SERVICE 75,231 32,000 32,001 101 -
DIVISION TOTAL 4,014,713 4,783,292 4,372,460 3,341,316 3,378,098 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 205 Facilities and Community Services
Parks Division
Program Description:

The Parks Division is responsible for the maintenance and upkeep of approximately 800 acres consisting of 27 established parks, over 60 water well and reservoir sites, parking lots, 14.5 acres of median strips and traffic islands throughout the City, the downtown area, and the improved I-10 Gateway. The division is comprised of 20 full-time employees who provide maintenance to the City’s Park and open space system. The division also has a dedicated staff member to handle graffiti abatement within the city. City parks and medians. Parks Division staff also help facilitate special events along with maintaining all the downtown areas within the City’s purview.

Program Objectives:
• Provide clean, safe, and attractive open space and parkland areas. • Maintain irrigation systems and facility plumbing systems in all areas of responsibility. • Maintain playgrounds and other facilities in a safe and clean manner. • Maintain city owned medians, trails and open space.
• Oversee, coordinate, and assist with various park volunteer efforts and other programs. • Support the annual Day of Service volunteer event.

Accomplishments for Fiscal Year 2024-2026:
• Annual Dog Park renovation and seeding.
• Ford Park and Sylvan Park annual Day of Service events. • Texonia Park Renovation design work completed and awarded grant funds. • BMX pump track design work completed.
• Parks Master Plan completed.
• Acceptance of Coyazo Park.
• Closed out 685 graffiti abatement work orders.

Goals for Fiscal Year 2026-2028:
• Texonia Park renovations, construction phase.
• Sylvan restroom renovation.
• Playground and restroom replacements.
• Replacement of bleachers in various parks.
• Coyazo Park Crow’s nest building completion.
• Park maintenance increased to 840 acres.
• 5 park renovations completed.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 206

DEPARTMENT/DIVISION
PARKS

FUND ORGKEY
GENERAL FUND 101303
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 944,958 1,114,240 1,114,240 1,105,303 1,198,672 5005 Vacancies - - - (44,371) (45,009)
5101 Overtime Salaries 160,928 124,800 100,000 120,000 125,000 5201 Stand By 14,612 8,000 13,000 8,240 8,487
5202 Holiday Pay 28,344 - 13,724 - -
5203 Bonus 143 - - - -
5204 Accrual Payout 1,131 - 381 953 953
5301 Banked Leave Buy Back 21,071 22,057 24,590 10,172 10,172 5401 Pension Contributions 282,627 330,808 330,808 302,884 308,669 5501 Social Security/Medicare 88,716 87,291 87,291 85,005 86,471 5601 Deferred Compensation 1,200 1,200 1,200 1,200 1,200 5701 Health/Dental Insurance 258,755 243,513 243,513 236,519 237,164 5702 Workers' Comp Insurance 43,820 45,344 45,344 76,312 78,327 5703 Disability Insurance 10,997 11,204 11,204 13,332 13,598 5704 Unemployment Insurance 1,260 7,986 7,986 7,573 7,573 5705 Life Insurance 1,091 1,159 1,159 1,101 1,101
5802 Eyecare Reimbursement 610 5,520 5,520 5,235 5,235
5803 Clothing Allowance 4,103 5,325 5,325 6,166 6,166
5804 Uniform Rental 1,844 - 1,017 - -
5903 Other Taxable Benefits 427 450 450 2,918 2,918
5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
1,866,636 2,008,897 2,006,752 1,938,544 2,046,697

SERVICES
6005 License & Permits - - 2,001 - -
6007 Penalties and Interest - - 76 - -
6105 Medical/Physicals 165 - 100 - -
6301 Water Wastewater Refuse 223,580 420,887 250,000 250,000 260,000 6304 Telephone 7,611 7,600 7,600 7,600 7,600
6307 Electricity & Gas 128,330 96,067 96,067 120,000 120,000 6402 Travel
Expense/Reimbursement
628 - 881 - -
6403 Training 8,068 3,986 11,000 3,986 3,986
6710 Special Contractual Services 1,366,133 1,355,100 1,206,529 1,277,465 1,318,722 6712 Landfill Tipping Charges 29,905 26,264 26,264 26,264 26,264 6802 Info Tech Service Charges 152,312 134,180 134,180 157,800 163,060 6803 City Garage Charges 518,400 531,634 331,056 304,355 242,748 6901 Printing and Binding 66 - - - -
6902 Advertising 3,822 400 - - -
6903 Janitorial Services - 17,500 - - -
6908 Other Rentals 3,655 2,833 2,833 2,833 2,833
6910 Labor 73,835 174,097 85,000 80,000 85,000
TOTAL SERVICES 2,516,509 2,770,548 2,153,586 2,230,303 2,230,213

SUPPLIES
7002 Office Supplies 4,007 9,000 2,000 4,000 4,000
7004 Uniform/Safety Clothing 41,576 45,856 45,856 47,232 48,649 7102 Small Tools & Equipment 27,739 41,299 15,900 42,538 43,814 7204 Building/Grounds Maintenance - 100,548 100,548 50,000 50,000 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 207

DEPARTMENT/DIVISION
PARKS

FUND ORGKEY
GENERAL FUND 101303
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7206 Vehicle Maintenance 9,216 6,507 10,000 10,000 10,000 7208 Repair/Maintenance Supplies 287,973 231,331 231,331 208,271 215,419 7209 Janitorial Supplies 38,228 38,714 38,714 39,876 41,072 7210 Building Supplies 11,250 - - - -
7807 Food 199 750 750 1,000 1,000
7810 Special Departmental Supplies 20,334 49,004 75,000 - - 7901 Non-Capital Expenditures 132,365 - 67,779 - -
TOTAL SUPPLIES 572,887 523,009 587,879 402,917 413,954

FIXED ASSETS
8501 Other Betterments/Improv 716,398 2,552,485 1,738,746 295,230 - 8503 Building Const/Improv - 170,000 830,022 - -
8602 Other Land Improvements - - 243,718 - -
8704 Motor Vehicles 67,404 - - - -
8706 All Other Equipment 31,831 90,000 - - -
8801 Capital Lease 60,967 188,101 221,478 197,227 197,227 TOTAL FIXED ASSETS 876,599 3,000,586 3,033,963 492,457 197,227

DEBT SERVICE
9002 Principal - Lease 71,543 - - - -
9102 Interest - Lease 7,659 - - - -
TOTAL DEBT SERVICE 79,202 - - - -
DIVISION TOTAL 5,911,834 8,303,040 7,782,180 5,064,221 4,888,092 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 208 Facilities and Community Services
Trees
Program Description:

The City’s urban forest is a recognized asset and landmark of the City of Redlands, valued at approximately $151,929,920.00. The Facilities and Community Services Street Tree Division staff oversee the maintenance of approximately 56,520 tree sites located within the City’s right-of-way, City-owned facilities, parking lots, trails, and parks. Of these sites, approximately 43,720 are home to living trees. This count includes approximately 6,675 trees within the City’s park system, and the remaining 37,045 trees in parkway areas, easement areas, and City-owned properties. Palm trees continue to be the single most prominent genus of trees within the City’s inventory, which numbers approximately 8,875. A close second is the Crape Myrtle tree which numbers approximately 6,872. Both of these tree species are iconic Redlands trees. In partnership with the Redlands Street Tree Committee, the Street Tree Division is dedicated to the continued enhancement, maintenance, and care of this living asset.

Program Objectives:
• Provide trimming (based on safety, tree health, and aesthetics) and maintenance of City trees with a primary focus on individual specimens within the city right-of-way. • Provide safe and efficient removals of dead, diseased, and hazardous trees, either on a pre-approved or emergency basis.
• Provide an active response to mitigate and resolve emergency tree concerns. • Work cooperatively with various volunteer groups, special interest organizations, and city departments to promote urban forest health and preservation. • Provide continual updates to maintain accurate records and reports.

Significant Program Changes and Process Improvements:

The Street Tree Division advanced a focused tree replacement initiative in partnership with a contractor, establishing a target for removal and planting to meet a 1:1 ratio. Through coordinated planning and execution, the program exceeded expectations, resulting in 480 newly planted trees. This effort not only addressed immediate canopy loss but also strengthened the long-term sustainability and resilience for the City’s tree canopy.

Accomplishments for Fiscal Year 2024-2026:
• 476 trees were removed
• 12,430 trees were pruned
• 540 trees were planted
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 209 Goals for Fiscal Year 2026-2028:
• Tree replacement and removal is a 1:1 ratio.
• Continued to fulfill tree trimming service that meets the needs of the community for safety and welfare.
• 50 new trees will be planted with volunteer work
• Estimated 800 (400 per year) trees will be removed.
• Estimated 13,000 (6,500 per year) trees will be trimmed. • Estimated 600 (300 per year) new trees will be planted.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 210

DEPARTMENT/DIVISION
TREES

FUND ORGKEY
GENERAL FUND 101305
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 319,823 324,283 324,283 324,337 352,829 5005 Vacancies - - - (13,514) (13,650)
5101 Overtime Salaries 81,976 25,000 80,000 20,000 20,000 5201 Stand By 5,063 - 5,000 5,000 5,000
5202 Holiday Pay 10,673 - 5,122 - -
5204 Accrual Payout 445 - 1,962 372 372
5301 Banked Leave Buy Back 7,000 6,433 6,433 2,805 2,805 5401 Pension Contributions 94,967 96,016 96,016 97,180 97,549 5501 Social Security/Medicare 32,365 25,290 25,290 26,618 26,687 5601 Deferred Compensation 468 468 468 468 468
5701 Health/Dental Insurance 81,218 79,322 79,322 100,152 100,441 5702 Workers' Comp Insurance 10,955 11,336 11,336 11,399 11,700 5703 Disability Insurance 4,068 3,083 3,083 4,010 4,018 5704 Unemployment Insurance 315 2,035 2,035 2,101 2,101 5705 Life Insurance 305 295 295 306 306
5802 Eyecare Reimbursement 600 1,407 1,407 1,452 1,452
5803 Clothing Allowance 1,260 1,290 1,290 1,035 1,035
5804 Uniform Rental 376 - 208 - -
5903 Other Taxable Benefits 4,086 539 2,137 4,806 4,806

TOTAL SALARIES AND

BENEFITS
655,965 576,797 645,687 588,525 617,918

SERVICES
6105 Medical/Physicals 470 552 100 1,000 1,030
6304 Telephone 216 - - - -
6401 Meeting & Prof Development - 5,000 - 500 500
6402 Travel
Expense/Reimbursement
2 1,000 39 1,000 1,000
6403 Training 330 3,150 3,150 3,245 3,150
6710 Special Contractual Services 862,196 1,200,000 1,202,000 607,000 607,210 6712 Landfill Tipping Charges - 10,609 1,000 1,000 1,000 6802 Info Tech Service Charges 25,200 22,200 22,200 36,000 37,200 6803 City Garage Charges 254,004 264,617 231,559 187,295 169,791 6901 Printing and Binding 359 - - - -
TOTAL SERVICES 1,142,777 1,507,128 1,460,048 837,040 820,881

SUPPLIES
7002 Office Supplies 161 - - - -
7208 Repair/Maintenance Supplies 1,423 12,000 12,000 5,000 5,150 TOTAL SUPPLIES 1,584 12,000 12,000 5,000 5,150
DIVISION TOTAL 1,800,326 2,095,925 2,117,735 1,430,565 1,443,949 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 211 Facilities and Community Services
Code Enforcement Division
Program Description:

The Code Enforcement Division is responsible for improving the quality of life of residents, protecting property values, and ensuring the health and safety of our community by fair and consistent enforcement of the Redlands Municipal Code. Such enforcement activities include, but are not limited to, enforcement of codes related to property maintenance, graffiti, inoperative vehicles, unsafe conditions, unsafe buildings, unpermitted (unsafe) construction, and the eradication of neighborhood blight. This division consists of one full-time senior code officer, three full-time code officers, and one full-time administrative technician. The Code Enforcement Division provides a balance of providing customer service to residents concerned with municipal code violations while working to educate and gain voluntary compliance, increasing the quality of life and serving the entire community.

Program Objectives:
• Provide excellent customer service to the residents and businesses of the City of Redlands.
• Increase the quality of life in the City of Redlands by improving the visual appearance of our neighborhoods through the fair and consistent enforcement of the property maintenance ordinance.
• Respond to citizen concerns pertaining to Municipal Code violations. • Educate property owners and responsible parties of code requirements and work with stakeholders to resolve issues raised by residents and businesses through voluntary compliance.
• When voluntary compliance is not gained through education, enforcement action is initiated to gain compliance to provide the appropriate customer service to the overall community.

Accomplishments for Fiscal Years 2024-26:
• Open 1805 cases.
• Closed 1,508 cases.
• 1,840 Requests for service.
• 4,658 code inspections completed.

The Code Enforcement Division participates in a monthly meeting with the City’s Police Department, Building and Safety Department, and Fire Department to discuss current public safety issues, code cases, and municipal code violations. This partnership assists in improving interdepartmental communications, the successful closing of cases, and providing health and safety to the community.

Goals for Fiscal Year 2026-2028:
• Open 1,800 cases.
• Close 1,950 cases.
• 1,840 requests for service.
• Complete 4,000 code inspections.
• 1000 cases brought into compliance.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 212

DEPARTMENT/DIVISION

CODE ENFORCEMENT

FUND ORGKEY
GENERAL FUND 101306
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 295,820 345,311 345,311 363,265 392,559 5005 Vacancies - - - (13,033) (13,225)
5101 Overtime Salaries 3,165 18,191 2,000 5,000 6,000
5202 Holiday Pay 4,301 - 3,341 - -
5204 Accrual Payout 999 - 1,578 1,096 1,096
5301 Banked Leave Buy Back 3,897 4,213 5,413 2,474 2,474 5401 Pension Contributions 72,768 97,989 97,989 89,231 90,704 5501 Social Security/Medicare 23,688 25,576 25,576 26,590 27,065 5601 Deferred Compensation 1,380 300 1,385 1,380 1,380
5701 Health/Dental Insurance 61,117 77,742 77,742 69,229 69,451 5702 Workers' Comp Insurance 16,432 17,004 17,004 14,248 14,624 5703 Disability Insurance 2,071 3,289 3,289 3,000 3,027 5704 Unemployment Insurance 307 1,888 1,888 1,884 1,884 5705 Life Insurance 259 274 274 274 274
5802 Eyecare Reimbursement 53 1,305 1,305 1,302 1,302
5803 Clothing Allowance 1,368 1,230 1,230 1,074 1,074
5804 Uniform Rental 310 - 187 - -
5903 Other Taxable Benefits 1,617 1,118 1,118 1,731 1,731

TOTAL SALARIES AND

BENEFITS
489,552 595,430 586,630 568,745 601,418

SERVICES
6007 Penalties and Interest 69 - - - -
6102 Legal Services 90,824 30,000 130,000 95,000 75,000 6106 Other Professional Services 425 35,500 - 5,665 5,835 6304 Telephone 5,971 5,532 5,532 5,698 5,869
6401 Meeting & Prof Development 1,275 500 500 515 530
6402 Travel
Expense/Reimbursement
5,289 1,200 1,200 1,236 1,273
6403 Training 107 1,824 1,824 1,878 1,935
6601 Postage 2,028 3,038 3,800 3,600 3,700
6703 Software Support/Development - 1,323 1,500 1,550 1,600 6710 Special Contractual Services 100,128 234,148 140,000 - - 6712 Landfill Tipping Charges - 1,216 1,216 1,253 1,216 6802 Info Tech Service Charges 45,694 40,254 40,254 65,277 67,452 6803 City Garage Charges 15,875 16,539 14,472 11,706 10,612 6901 Printing and Binding 490 2,675 2,675 2,755 2,755
6909 Subscriptions & Memberships 9,642 7,182 7,397 7,397 7,619 6911 Bad Debt Expense 263 - - - -
TOTAL SERVICES 278,081 380,931 350,370 203,530 185,396

SUPPLIES
7002 Office Supplies 775 3,431 3,431 2,504 2,579
7004 Uniform/Safety Clothing - 2,431 2,431 2,504 2,579
7807 Food 81 165 165 170 175
7810 Special Departmental Supplies 811 1,216 1,216 1,253 1,290 TOTAL SUPPLIES 1,667 7,243 7,243 6,431 6,624
DIVISION TOTAL 769,299 983,604 944,243 778,706 793,439
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 213 Facilities and Community Services
Recreation and Senior Services
Program Description:

The City of Redlands Recreation and Senior Services Division is a customer-driven service that is responsive to the needs of the public. Recreation and Senior programs promote wellness and human development through leisure pursuits. The Division operates the Joe R. Gonzales Community Center, Eddie and Gloria Flores Senior Center, and Joslyn Senior Center, which are open to the community for a variety of educational and leisure activities. The centers feature a gymnasium, computer labs, classrooms, reading lounges, multi-purpose rooms, and kitchen facilities. In addition to manning the centers, the Division also facilitates the rentals of indoor and outdoor recreation sites as well as the Morning Market within the downtown area.

The Senior Services programs focus on community support and partnerships, nutrition and healthy eating, and active living. The Senior Information and Referral Services Offices are in the Community Center at 111 W. Lugonia Avenue, and offers assistance to seniors seeking housing, medical, and financial information. Numerous programs are offered, including the Meals on Wheels program and the Family Service Association Nutrition Program, ensuring the availability of hot meals to seniors for a reasonable price.

Program Objectives:
• Strengthen community image and sense of place.
• Provide and support recreation and leisure services offered throughout the community. • Promote health and wellness.
• Foster human development
• Increase cultural unity.
• Provide programs and activities to stimulate and strengthen senior lives, including health and fitness, education and instruction, referral and support, and social activities and events.

Significant Improvements Related to Operations:

The Joe R. Gonzalez Community Center has recently undergone targeted enhancements to better service the needs of its patrons:
• Renovation of the Joe R. Gonzalez Community Center back lobby, including a new service counter, updated flooring, paint, and lighting.
• Renovation of small classroom at the Joe R. Gonzalez Community Center, including new paint, flooring, and lighting, along with the addition of a mounted projector screen and speakers to support audiovisual programming.
• Gymnasium enhancements and maintenance, including replacement of four backyard winches used to raise and lower basketball hoops, and the addition of a backboard lowering device to better accommodate younger participants and expand introductory your basketball programming.
• Installation of new volleyball nets, poles, and a referee stand to support expanded volleyball programming.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 214 • Replacement of a 20-year-old scoreboard with a modern, wireless-operated system, improving ease of use and overall service delivery.

Accomplishments for Fiscal Year 2024-2026:
• 12 Community events held.
• 170 City programs offered for kids, youths, and seniors. • 155,000 registered participants across all programs.
• 80% of community satisfaction level reports for services provided.

Goals for Fiscal Year 2026-2028:
• On-going collaboration with independent contractors for program activities. • Continue to provide special events for community engagement and demand. • Continue to provide cooling centers for the community. • Continue to provide senior services and recreational programming to meet the community needs.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 215

DEPARTMENT/DIVISION

RECREATION AND

SENIOR SERVICES

FUND ORGKEY
GENERAL FUND 101309
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 563,791 750,261 750,261 768,436 837,874 5002 Salaries: Part-Time 34,325 35,580 35,580 36,300 36,300 5005 Vacancies - - - (30,606) (31,095)
5101 Overtime Salaries 15,808 11,992 11,992 12,352 12,723 5201 Stand By 5,979 - 6,000 6,000 6,000
5202 Holiday Pay 9,942 - 8,543 - -
5204 Accrual Payout 1,288 - 9,470 1,698 1,698
5301 Banked Leave Buy Back 4,631 10,813 10,813 4,835 4,835 5401 Pension Contributions 165,226 217,579 217,579 216,843 221,161 5501 Social Security/Medicare 46,506 59,678 59,678 62,076 63,172 5601 Deferred Compensation 4,438 3,864 4,164 3,992 4,050 5701 Health/Dental Insurance 156,208 195,647 195,647 197,086 197,513 5702 Workers' Comp Insurance 32,112 33,229 33,229 38,884 39,911 5703 Disability Insurance 4,607 6,370 6,370 7,975 8,146 5704 Unemployment Insurance 1,090 6,293 6,293 6,293 6,293 5705 Life Insurance 694 788 788 789 789
5802 Eyecare Reimbursement 1,400 3,750 3,750 3,750 3,750 5803 Clothing Allowance - 3,300 3,300 600 600
5903 Other Taxable Benefits 2,545 2,625 2,625 4,275 4,275 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
1,050,588 1,341,769 1,366,082 1,341,578 1,417,994

SERVICES
6004 Bank/Collection Agent Fees 28,365 8,029 20,000 20,000 20,000 6005 License & Permits 4,448 2,294 3,000 3,051 4,058
6007 Penalties and Interest - - 235 250 250
6101 Architect & Engineer - 10,610 10,610 10,928 11,256 6105 Medical/Physicals - 241 241 249 256
6106 Other Professional Services 162,208 298,917 316,791 329,000 329,000 6304 Telephone 5,812 8,858 8,858 9,124 9,397
6307 Electricity & Gas 23,321 15,589 25,000 25,000 16,539 6401 Meeting & Prof Development 850 4,588 5,500 5,500 5,750 6402 Travel
Expense/Reimbursement
- 2,294 5,000 2,363 2,434
6403 Training 268 2,294 2,294 2,363 2,422
6510 Other Insurance 1,745 - 7,000 5,000 5,000
6601 Postage 25,108 1,147 10,000 12,000 14,000
6703 Software Support/Development 9,352 14,866 5,000 14,000 14,000 6708 Special Program Expenditures 53,167 65,896 70,000 72,000 74,000 6710 Special Contractual Services 438,636 430,306 353,569 542,000 549,000 6712 Landfill Tipping Charges 3,198 5,735 5,735 5,907 6,084 6802 Info Tech Service Charges 99,003 87,217 87,217 114,000 117,800 6803 City Garage Charges 16,867 17,572 15,377 12,438 11,275 6901 Printing and Binding 3,177 1,147 15,000 12,983 13,372 6902 Advertising 39,775 54,314 20,000 55,944 57,622
6906 Office Equip & Furn Rent 11,715 16,672 - 17,173 17,688 6907 Comms Service & Rental 4,990 - - 5,000 5,000
6908 Other Rentals 4,200 3,441 6,000 3,544 3,651
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 216

DEPARTMENT/DIVISION

RECREATION AND

SENIOR SERVICES

FUND ORGKEY
GENERAL FUND 101309
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6909 Subscriptions & Memberships 2,685 2,294 5,000 2,363 2,434 6910 Labor 19,902 12,522 19,000 12,859 13,245
TOTAL SERVICES 958,792 1,066,845 1,016,427 1,295,038 1,305,533

SUPPLIES
7002 Office Supplies 10,419 10,735 11,500 12,000 12,500 7004 Uniform/Safety Clothing 4,898 5,735 5,735 6,022 6,624 7101 Office Equipment & Furniture 26,022 15,493 15,493 15,957 16,436 7102 Small Tools & Equipment - 574 - - -
7203 Office Equipment Maintenance - 2,867 - 2,953 3,042 7204 Building/Grounds Maintenance 11,680 - 600 12,000 12,250 7205 Machinery & Equip. Maint. 13,557 69,666 10,000 20,000 30,000 7206 Vehicle Maintenance 387 - 2,500 2,750 3,000
7208 Repair/Maintenance Supplies 13,752 16,532 16,532 17,028 17,539 7209 Janitorial Supplies 3,133 4,588 4,588 4,726 4,868
7210 Building Supplies 1,693 1,147 2,000 1,181 1,217
7302 Compressed Natural Gas
(LCNG)
- 3,191 - - -
7804 Medical Supplies - 1,147 - 1,181 1,217
7807 Food 13,430 22,808 40,000 42,500 55,000
7810 Special Departmental Supplies 63,681 71,939 71,939 61,162 62,997 7901 Non-Capital Expenditures 2,000 29,823 94 30,718 31,639 TOTAL SUPPLIES 164,651 256,245 180,981 230,179 258,329

FIXED ASSETS
8501 Other Betterments/Improv - 204,000 - - -
8602 Other Land Improvements 6,700 - - - -
8706 All Other Equipment - 71,173 71,173 - -
8801 Capital Lease 444 65,840 19,146 19,950 19,950
TOTAL FIXED ASSETS 7,144 341,013 90,319 19,950 19,950

DEBT SERVICE
9002 Principal - Lease 11,931 - - - -
9102 Interest - Lease 1,242 - - - -
TOTAL DEBT SERVICE 13,173 - - - -
DIVISION TOTAL 2,194,349 3,005,872 2,653,809 2,886,746 3,001,806 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 217 Facilities and Community Services
City Hall 300 E. State Street
Program Description:

The City acquired the new facility at 300 E. State Street on October 1, 2021, for the purpose of a future City Hall location. The building was built in 1981 and includes approximately 80,000 square feet comprised of six floors. The new facility is located at 300 E. State Street in the heart of the City’s historic downtown area. The building is an iconic feature of the typical international style or corporate architecture and is the tallest building in the city. The facility will house the administrative offices and public facilities such as the Council Chambers and various customer service departments.

Program Objective:
• To locate all administrative public services within one facility for customer service accessibility and engagement with the residents and business community. • Accommodate growth and expansion of City facilities and services necessary for future stability.

Accomplishments for Fiscal Year 2024-2026:
• The space planning and necessary retrofitting design is underway with City departments anticipated to move in throughout 2026.
• The City Manager’s and City Council offices have been occupied on the 6th floor and were completed by the end of the year 2023.

Strategic Plan:

Conversion of this facility into a future City Hall supports the Strategic Plan Priority D – Sustainability Strategic Objective 2 – Infrastructure.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 218

DEPARTMENT/DIVISION

CITY HALL - STATE
STREET

FUND ORGKEY
GENERAL FUND 101310
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 43,716 108,688 108,688 46,136 49,691 5002 Salaries: Part-Time 774 88,725 88,725 - -
5005 Vacancies - - - (1,593) (1,615)
5101 Overtime Salaries 514 4,872 800 800 800
5202 Holiday Pay 176 - 68 - -
5203 Bonus - 220 220 - -
5204 Accrual Payout 314 - 327 238 238
5301 Banked Leave Buy Back 3,897 5,129 5,129 2,470 2,470 5401 Pension Contributions 12,917 30,503 30,503 12,261 12,357 5501 Social Security/Medicare 3,781 14,787 14,787 3,524 3,546 5601 Deferred Compensation 300 796 796 300 300
5701 Health/Dental Insurance 5,058 4,676 4,676 4,816 4,825 5702 Workers' Comp Insurance 2,739 2,834 2,834 - -
5703 Disability Insurance 111 643 643 126 130
5704 Unemployment Insurance 26 1,476 1,476 174 174
5705 Life Insurance 28 88 88 25 25
5801 Vehicle Allowance - 300 300 - -
5802 Eyecare Reimbursement - 420 420 120 120
5803 Clothing Allowance 375 330 330 45 45
5903 Other Taxable Benefits 108 45 45 60 60

TOTAL SALARIES AND

BENEFITS
74,832 264,532 260,855 69,502 73,166

SERVICES
6005 License & Permits 2,691 1,181 - - -
6006 Taxes - 940 - - -
6007 Penalties and Interest 8 - 94 - -
6301 Water Wastewater Refuse 8,671 24,843 10,000 10,000 10,000 6304 Telephone 10,290 10,793 10,793 11,117 11,451
6307 Electricity & Gas 43,240 39,165 45,000 45,000 55,000 6308 Elec Service-Facility Ops 314,480 342,974 342,974 353,263 363,861 6601 Postage - 111 111 110 110
6703 Software Support/Development 432 26,045 26,045 26,827 27,632 6708 Special Program Expenditures - 2,840 - - -
6710 Special Contractual Services 253,826 191,055 191,055 186,087 190,177 6901 Printing and Binding - - 150 - -
6902 Advertising - 700 - - -
6903 Janitorial Services 124,227 146,423 146,423 150,000 154,500 6907 Comms Service & Rental 2,712 2,047 2,500 2,047 2,047 6908 Other Rentals 2,200 - - - -
6910 Labor 166,408 142,947 142,947 147,235 151,652
6912 Reimbursed Expenditures 434 - - - -
TOTAL SERVICES 929,618 932,064 918,093 931,686 966,430

SUPPLIES
7002 Office Supplies 175 1,603 2,500 1,801 1,855
7004 Uniform/Safety Clothing - 863 - - 863
7101 Office Equipment & Furniture 9,809 - - - -
7208 Repair/Maintenance Supplies 77,843 138,611 25,000 125,263 129,021 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 219

DEPARTMENT/DIVISION

CITY HALL - STATE
STREET

FUND ORGKEY
GENERAL FUND 101310
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7209 Janitorial Supplies - 6,070 - - -
7210 Building Supplies 479 2,263 7,992 8,232 8,478
7211 Computer Components 32,443 - - - -
7810 Special Departmental Supplies 3,404 10,385 2,000 2,000 2,000 7901 Non-Capital Expenditures - 18,534 - - -
TOTAL SUPPLIES 124,153 178,328 37,492 137,295 142,218
DIVISION TOTAL 1,128,603 1,374,924 1,216,439 1,138,484 1,181,813 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 220 Facilities and Community Services
Animal Services
Program Description:

The Animal Services Division provides a variety of services to meet the needs of the community and ensure the welfare of animals. The division enforces state and federal animal laws and city municipal codes. The animal control officers are responsible for handling stray animals on city streets, animal disturbance calls, reports of injured or aggressive animals, and animals receiving fatal injuries. The Animal Service Division also quarantines animals after reported animal bites, investigates reports of animal abuse, and temporarily provides shelter to neglected livestock and injured wildlife.

Program Objectives:
• Provide humane care for all animals housed within the shelter. • Promote the adoption and placement of animals through adoption and rescue efforts. • Increase participation in the spay and neuter program to reduce animal overpopulation. • Deliver professional and responsive customer service to the community. • Strengthen community partnerships to enhance animal welfare outcomes. • Educate the public on responsible pet ownership, including licensing, vaccinations, and wildlife awareness.
• Improve operational efficiency through increased information in the field by moving towards paperless systems.
• Provide at least two low-cost microchip events annually to help reduce lost pets entering the shelter system. Develop and implement community engagement events, such as “Take a Shelter Dog Out for a Day,” to increase public interaction with the shelter and promote adoptions.

Accomplishments – Prior Fiscal year 2024-2026:
• Completed the remodel of the cattery to provide adequate space, updated kennels with privacy areas, and improved cleanability.
• Participated in more than a dozen community events promoting the Animal Services Division and highlighting adoptable animals currently in the shelter. • Worked with Best Friends Animal Society to provide additional staff training, develop updated policies and procedures for shelter operations, and coordinated with additional rescue groups to find positive outcomes for shelter animals. • Developed master plan for expansion and renovation of the facility to meet the current and future needs of the community.
• Increased participation in our volunteer program, providing much needed interaction and activity time for shelter animals.
• Added additional shelter staff to ensure operation is adequately staffed to provide required services 365 days per year.
• Upgraded computer software system to provide mobile field access via phones and tablets.
• Facilitated 506 animal adoptions.
• Oversaw the intake process for 707 stray animals, maintaining detailed records.

Goals for Fiscal Year 2026-2028:

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 221 • Identify funding for the construction of the facility expansion. Complete the design phase and prepare for construction phase.
• Expanded the Animal Services Center’s kennel capacity by approximately 86% through the addition of new modular kennels (Accomplished)
• Explore various partnerships, both public and private, to expand services and adoption opportunities.
• Complete renovation of the isolation room to provide adequate space and separation of animals under care.
• Evaluate and implement additional staffing positions to effectively maintain the approximately 86% increase in kennel capacity, ensuring continued high standards of animal care, facility maintenance, and public service.
• Evaluate and establish a partnership with a pet licensing platform (e.g., DocuPet) to improve licensing compliance, enhance return-to-owner rates, and reduce shelter intake of stray animals.
• Establish lead positions for Animal Control Officers, Kennel Attendants, and a Shelter Coordinator to improve operational oversight, distribute workload more effectively, enhance accountability, and reduce staff burnout.
• Design and construct a holding area consisting of approximately 10–12 kennels to support intake operations, improve animal flow, and reduce the risk of disease transmission within the shelter.
• Convert the existing small dog room into a dedicated isolation area for sick or high-risk animals to improve disease control, enhance recovery outcomes, and prevent crosscontamination with healthy animal populations. • Facilitate 730 adoptions.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 222

DEPARTMENT/DIVISION

ANIMAL SERVICES

FUND ORGKEY
GENERAL FUND 101311
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 458,432 570,982 570,982 564,772 618,943 5005 Vacancies - - - (22,980) (23,352)
5101 Overtime Salaries 9,244 25,000 30,000 25,000 25,000 5202 Holiday Pay 25,264 - 13,590 - -
5203 Bonus - - 3,000 - -
5204 Accrual Payout 7,468 - 6,913 745 745
5301 Banked Leave Buy Back 4,071 6,613 6,613 2,646 2,646 5401 Pension Contributions 133,319 168,846 168,846 165,341 171,814 5501 Social Security/Medicare 39,465 44,714 44,714 45,485 47,179 5601 Deferred Compensation 8,131 12,344 12,344 12,472 12,530 5701 Health/Dental Insurance 88,597 106,445 106,445 120,174 120,506 5702 Workers' Comp Insurance 27,952 28,924 28,924 68,038 69,834 5703 Disability Insurance 4,743 5,633 5,633 6,986 7,262 5704 Unemployment Insurance 818 4,123 4,123 4,123 4,123 5705 Life Insurance 543 599 599 600 600
5802 Eyecare Reimbursement 246 2,850 2,850 2,850 2,850
5803 Clothing Allowance 8,750 9,300 9,300 8,425 8,425
5903 Other Taxable Benefits - 75 474 1,425 1,425

TOTAL SALARIES AND

BENEFITS
817,043 986,448 1,015,350 1,006,101 1,070,529

SERVICES
6007 Penalties and Interest 58 - 152 - -
6102 Legal Services 5,450 - - - -
6103 Veterinary Services 188,907 154,350 140,000 153,000 158,620 6106 Other Professional Services 702 25,000 25,000 25,000 25,000 6304 Telephone 4,647 4,200 4,200 4,326 4,200
6403 Training 6,989 8,000 5,000 10,000 10,000
6710 Special Contractual Services 13,750 20,000 45,860 20,000 20,000 6712 Landfill Tipping Charges - 600 - - -
6802 Info Tech Service Charges 68,540 60,381 60,381 85,800 88,660 6803 City Garage Charges 31,751 33,077 28,945 23,412 21,224 6901 Printing and Binding - 2,955 1,200 3,043 3,135
6906 Office Equip & Furn Rent 1,658 1,261 1,500 1,550 1,600 6909 Subscriptions & Memberships 234 83 75 - -
6910 Labor 1,530 - 11,235 11,572 11,919
TOTAL SERVICES 324,216 309,907 323,548 337,703 344,358

SUPPLIES
7002 Office Supplies 2,819 5,716 3,000 5,800 6,200
7004 Uniform/Safety Clothing 3,802 8,180 5,000 5,000 5,000 7101 Office Equipment & Furniture - - 7,759 2,000 2,060 7102 Small Tools & Equipment - 1,200 - - -
7206 Vehicle Maintenance 899 506 2,000 2,500 2,800
7208 Repair/Maintenance Supplies - 5,694 13,000 9,500 10,000 7211 Computer Components - - 2,500 2,500 2,575
7804 Medical Supplies - 13,230 - 13,500 14,500
7805 Weapons & Ammunitions - 1,459 - - -
7807 Food 155 4,011 500 650 700
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 223

DEPARTMENT/DIVISION

ANIMAL SERVICES

FUND ORGKEY
GENERAL FUND 101311
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7810 Special Departmental Supplies 55,751 44,143 90,000 63,000 65,790 TOTAL SUPPLIES 63,426 84,139 123,759 104,450 109,625

FIXED ASSETS
8501 Other Betterments/Improv - 832,600 832,600 - -
8502 Building Acquisitions - 275,000 275,000 - -
8704 Motor Vehicles 141,422 - - - -
8801 Capital Lease 5,600 26,608 28,081 26,721 26,721
TOTAL FIXED ASSETS 147,023 1,134,208 1,135,681 26,721 26,721

DEBT SERVICE
9002 Principal - Lease 17,111 - - - -
9102 Interest - Lease 2,399 - - - -
TOTAL DEBT SERVICE 19,510 - - - -
DIVISION TOTAL 1,371,218 2,514,702 2,598,339 1,474,975 1,551,233 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 224

DEPARTMENT SUMMARY
FUND

GENERAL FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

FACILITIES AND

COMMUNITY SERVICES

ADMINISTRATION
1,204,343 4,093,614 4,024,841 1,410,782 1,456,313
BUILDING MAINTENANCE 3,971,409 3,744,983 3,972,754 4,232,379 4,042,323 ELECTRICAL 1,986,197 1,894,046 1,781,717 1,780,784 1,816,440 PARKS 5,911,834 8,303,040 7,782,180 5,064,221 4,888,092 STREETS 4,014,713 4,783,292 4,372,460 3,341,316 3,378,098 TREES 1,800,326 2,095,925 2,117,735 1,430,565 1,443,949 CODE ENFORCEMENT 769,299 983,604 944,243 778,706 793,439

RECREATION AND SENIOR

SERVICES
2,194,349 3,005,872 2,653,809 2,886,746 3,001,806
CITY HALL - STATE STREET 1,128,603 1,374,924 1,216,439 1,138,484 1,181,813 ANIMAL SERVICES 1,371,218 2,514,702 2,598,339 1,474,975 1,551,233 DEPARTMENT TOTAL 24,352,291 32,794,003 31,464,517 23,538,956 23,553,506 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 225

DEPARTMENT/DIVISION

FCS GRANTS

FUND ORGKEY
GRANTS 200300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 277 - - - -
5401 Pension Contributions 88 - - - -
5501 Social Security/Medicare 22 - - - -
5701 Health/Dental Insurance 53 - - - -
5703 Disability Insurance 3 - - - -
5705 Life Insurance - - - - -

TOTAL SALARIES AND

BENEFITS
443 - - - -

SERVICES
6402 Travel
Expense/Reimbursement
- 1,238 1,238 - -
6708 Special Program Expenditures 712 712 - -
TOTAL SERVICES - 1,950 1,950 - -

SUPPLIES
7807 Food 4,322 4,020 4,020 - -
7810 Special Departmental Supplies - 624 624 - -
TOTAL SUPPLIES 4,322 4,644 4,644 - -
DIVISION TOTAL 4,765 6,595 6,595 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 226

DEPARTMENT/DIVISION

FUND ORGKEY
GRANTS 200303
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

FIXED ASSETS
8501 Other Betterments/Improv 221,685 221,685 - -
TOTAL FIXED ASSETS 221,685 221,685 - -
DIVISION TOTAL 221,685 221,685 - -

PARK GRANTS
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 227

DEPARTMENT SUMMARY
FUND
GRANTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
FCS GRANTS 4,765 6,595 6,595 - -
DEPARTMENT TOTAL 4,765 228,280 228,280 - -
PARKS GRANTS 221,685 221,685
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 228 Facilities and Community Services
Downtown Redlands
Program Description:

The Downtown Redlands Division is dedicated to ensuring the downtown area is the cornerstone of the community; offering an enhanced experience of shopping and dining that makes Redlands a true destination. The division concentrates efforts on the promotion of events, enhanced maintenance efforts, and customer service outreach for the downtown businesses. Promotional events include our Certified Farmers Market, Christmas tree lighting, annual Holiday Décor, and Entertainment Program, along with other various popular downtown events.

Program Objectives:
• Preserve the integrity of historic downtown and cultivate prosperity for the local businesses.
• Help stimulate downtown’s economic vitality.
• Provide information to and address service requests from the local business community and patrons.
• Enrich the downtown area with activities that are conducive to family participation. • Enrich the downtown area with enhanced streetscape, furnishings, and decorations.

Priority Focus Area:
• In support of the City’s Strategic Plan Focus Area B – Economic Development, during the Fiscal Year 2026-2028, the Downtown Division will provide support to the local downtown businesses. This will include managing the weekly Certified Farmers Market as part of the Morning Market Event which provides essential produce to the community and includes annual celebrations such as the Tree Lighting Ceremony and holiday decorations. In addition, the City supports several non-profit events within the downtown area for economic prosperity.

These non-profit events include the Redlands Bicycle Classic, the New’s Year’s Eve celebration, Redlands’ Firefighters’ Car show, the Believe Walk, various art events, and the Christmas Parade.

Ongoing maintenance is further performed to ensure downtown is aesthetically inviting and maintains its historic and unique character. This includes items such as the quarterly replacement of the umbrellas within the Orange Street Alley, maintaining the State Street audio system for use with various events and daily ambient music, the downtown tree lights for enhanced aesthetic in the evening hours, and the ongoing upkeep of existing infrastructure.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 229

DEPARTMENT/DIVISION

DOWNTOWN

REDLANDS BUSINESS
AREA

FUND ORGKEY
DOWNTOWN RDLDS BUSINESS ASSOC 236300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6004 Bank/Collection Agent Fees 540 573 573 573 573
6005 License & Permits 1,870 6,242 6,242 6,242 6,242
6106 Other Professional Services 2,950 5,285 5,285 5,285 5,285 6301 Water Wastewater Refuse 3,675 5,202 5,202 5,202 5,202 6307 Electricity & Gas 1,962 1,501 1,900 1,501 1,501
6708 Special Program Expenditures 2,485 1,027 1,027 1,027 1,027 6710 Special Contractual Services 24,177 56,100 30,000 30,000 35,000 6802 Info Tech Service Charges - 9,479 - - -
6803 City Garage Charges 4,961 5,168 4,523 3,658 3,316
6804 General Govt Service Charge 15,788 16,341 16,341 16,870 17,599 6902 Advertising - 5,100 5,100 5,100 5,100
TOTAL SERVICES 58,407 112,019 76,194 75,458 80,845

SUPPLIES
7002 Office Supplies - 826 - - -
7810 Special Departmental Supplies - 15,300 - - -
TOTAL SUPPLIES - 16,126 - - -
DIVISION TOTAL 58,407 128,145 76,194 75,458 80,845
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 230

DEPARTMENT SUMMARY
FUND

DOWNTOWN RDLDS BUSINESS ASSOC
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

DOWNTOWN REDLANDS

BUSINESS AREA
58,407 128,145 76,194 75,458 80,845
DEPARTMENT TOTAL 58,407 128,145 76,194 75,458 80,845
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 231 Facilities and Community Services
Community Facility, Land Maintenance, and Street Lighting Division Program Description:

The City established Landscape District No. 1 and Street Lighting District No. 1 in accordance with the "Landscaping and Lighting Act of 1972."
The San Bernardino County Assessor's Office collects annual assessments from affected district property owners to provide for the district's management, administration, maintenance, and operational expenses. Maintenance costs associated with Landscape District No. 1 include water and labor costs, materials, equipment to maintain or replace trees, bushes, groundcover and turf, and repairs for irrigation lines and irrigation control systems. Maintenance costs associated with the Street Lighting District include the cost of power to illuminate the streetlights and the labor, materials, and equipment to replace burnt-out or broken street light infrastructure within these districts.

The revenues collected through the assessments in both districts have not been adequate to cover the cost of providing high levels of maintenance. As a result, General Fund revenues have been used to subsidize the cost of providing these services. The intent of a maintenance district is to provide adequate funding to support all necessary maintenance services within its boundaries. Services provided will be minimized to a level supported by the annual assessments to reduce the burden on the General Fund. Additionally, Landscape Maintenance District reductions will include reduced irrigation periods, cutbacks to the frequency of the landscape maintenance activities, and minor repair work. Landscaping and irrigation will be systematically removed and replaced with drought-tolerant plant material and drip irrigation that will require fewer maintenance hours. Furthermore, staff review, and inspections and general City administrative overhead will not be included in the cost of service for these Districts.

Program Objectives:
• Comply with the requirements of the "Landscaping and Lighting Act of 1972". • Implement adjustments to services to ensure there is adequate cost recovery. • Provide satisfactory landscape maintenance to meet the City's desire for well-maintained attractive, and aesthetically landscaped areas.
• Provide appropriate street light maintenance to provide well lighted and safe pedestrian and vehicular travel ways.

Significant Program Changes and Process Improvements:
• The City accepted Coyazo Park, which is partially funded by the CFD.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 232 Community Facility Districts
Program Description:

The City established Community Facility District No. 2004-1 in July of 2004 under the "Mello-Roos Community Facilities Act of 1982."
In 1978, Proposition 13 was enacted by Californians, which limited the ability of many public agencies to finance new projects. In 1982, Senator Henry Mello and Assemblyman Mike Roos affected the passage of the "Mello-Roos Community Facilities Act of 1982" (the Act) authorizing local governments and developers to create Community Facilities Districts (CFDs) for the purpose of selling tax-exempt bonds to fund public improvements. The Act allows any county, city, special district, school district, or joint powers of authority to establish a CFD, which provides for the financing of public services and facilities. The Act allows communities to raise funds for improvements to infrastructure (streets, sewers, and storm drain) even though Proposition 13 limits their ability to tax property. The revenues collected through the assessments are used to support the maintenance of parks, parkways, and open spaces as well as flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems and on-site retention basins. The city currently facilitates the maintenance of 21 CFD areas.

Program Objectives:
• Comply with the requirements of the "Mello-Roos Community Facilities Act of 1982". • Provide satisfactory maintenance to CFD common areas, park areas, open spaces, and retention basins.
• Provide landscape maintenance to meet the City's desire for well-maintained, attractive, and aesthetically landscaped areas to improve community quality of life.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 233

DEPARTMENT/DIVISION

STREET LIGHTING
DISTRICT #1

FUND ORGKEY
STREET LIGHTING DISTRICT #1 260300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 5,517 5,565 5,565 5,962 6,437
5202 Holiday Pay 13 - 32 - -
5204 Accrual Payout 37 - 38 29 29
5301 Banked Leave Buy Back 336 261 261 222 222
5401 Pension Contributions 1,601 1,653 1,653 1,602 1,626 5501 Social Security/Medicare 442 447 447 453 458
5601 Deferred Compensation 36 36 36 36 36
5701 Health/Dental Insurance 1,398 729 729 1,406 1,410
5703 Disability Insurance 15 19 19 23 24
5704 Unemployment Insurance 4 26 26 26 26
5705 Life Insurance 4 4 4 4 4
5802 Eyecare Reimbursement - 18 18 18 18
5803 Clothing Allowance 15 9 9 9 9
5903 Other Taxable Benefits 11 5 5 9 9

TOTAL SALARIES AND

BENEFITS
9,429 8,772 8,842 9,797 10,307

SERVICES
6315 Electric Service-Street Light - 23,690 23,690 23,690 23,690 6401 Meeting & Prof Development - - 5 - -
6804 General Govt Service Charge 3,470 3,591 3,591 3,708 3,868 TOTAL SERVICES 3,470 27,281 27,286 27,398 27,558
DIVISION TOTAL 12,899 36,053 36,128 37,195 37,865
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 234

DEPARTMENT SUMMARY
FUND
STREET LIGHTING DISTRICT #1
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

STREET LIGHTING DISTRICT
#1
12,899 36,053 36,128 37,195 37,865
DEPARTMENT TOTAL 12,899 36,053 36,128 37,195 37,865
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 235

DEPARTMENT/DIVISION

COMMUNITY FACILITIES
DISTRICT 2004-1

FUND ORGKEY
CFD 2004-1 ASSESSMENTS 261300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 32,801 35,135 35,135 35,215 37,900 5101 Overtime Salaries 21 - 30 - -
5202 Holiday Pay 198 - 59 - -
5203 Bonus - 44 44 - -
5204 Accrual Payout 203 - 207 205 205
5301 Banked Leave Buy Back 2,133 2,540 2,540 1,749 1,749 5401 Pension Contributions 9,662 10,424 10,424 9,406 9,454 5501 Social Security/Medicare 2,652 2,825 2,825 2,694 2,704 5601 Deferred Compensation 429 466 466 365 365
5701 Health/Dental Insurance 7,367 5,999 5,999 7,796 7,818 5703 Disability Insurance 60 69 69 87 89
5704 Unemployment Insurance 20 139 139 135 135
5705 Life Insurance 20 20 20 20 20
5801 Vehicle Allowance - 60 60 - -
5802 Eyecare Reimbursement - 96 96 93 93
5803 Clothing Allowance 45 38 38 30 30
5903 Other Taxable Benefits 142 93 93 107 107

TOTAL SALARIES AND

BENEFITS
55,751 57,948 58,243 57,900 60,667

SERVICES
6102 Legal Services - 5,000 - - -
6106 Other Professional Services 561 - - - -
6301 Water Wastewater Refuse 171,874 216,865 180,000 200,000 210,000 6307 Electricity & Gas 1,857 1,591 2,600 3,000 3,090
6401 Meeting & Prof Development - - 9 - -
6710 Special Contractual Services 203,903 286,870 273,433 407,512 339,958 6804 General Govt Service Charge 26,401 27,325 27,325 28,210 29,429 6902 Advertising - - 2,500 2,500 -
6910 Labor 12,612 880 15,000 15,000 15,450
TOTAL SERVICES 417,208 538,531 500,867 656,222 597,927

SUPPLIES
7208 Repair/Maintenance Supplies 6,432 47,565 15,000 15,000 17,000 TOTAL SUPPLIES 6,432 47,565 15,000 15,000 17,000
DIVISION TOTAL 479,391 644,044 574,110 729,122 675,594
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 236

DEPARTMENT SUMMARY
FUND
CFD 2004-1 ASSESSMENTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

COMMUNITY FACILITIES
DISTRICT 2004-1
479,391 644,044 574,110 729,122 675,594
DEPARTMENT TOTAL 479,391 644,044 574,110 729,122 675,594 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 237

DEPARTMENT/DIVISION

LANDSCAPE

MAINTENANCE

DISTRICT

FUND ORGKEY
LANDSCAPE MAINTENANCE DISTRICT 263300
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 5,367 5,565 5,565 5,814 6,337
5202 Holiday Pay 13 - 32 - -
5204 Accrual Payout 37 - 38 29 29
5301 Banked Leave Buy Back 336 261 261 222 222
5401 Pension Contributions 1,560 1,653 1,653 1,602 1,626 5501 Social Security/Medicare 430 447 447 453 458
5601 Deferred Compensation 36 36 36 36 36
5701 Health/Dental Insurance 1,374 729 729 1,406 1,410
5703 Disability Insurance 15 19 19 23 24
5704 Unemployment Insurance 4 26 26 26 26
5705 Life Insurance 4 4 4 4 4
5802 Eyecare Reimbursement - 18 18 18 18
5803 Clothing Allowance 9 9 9 9 9
5903 Other Taxable Benefits 5 5 5 9 9

TOTAL SALARIES AND

BENEFITS
9,189 8,772 8,842 9,649 10,207

SERVICES
6301 Water Wastewater Refuse 25,994 25,000 32,000 32,000 34,000 6307 Electricity & Gas 792 400 1,200 400 400
6401 Meeting & Prof Development - - 5 - -
6710 Special Contractual Services 10,000 16,225 18,000 18,000 18,000 6804 General Govt Service Charge 5,954 6,162 6,162 6,362 6,637 6902 Advertising - 497 497 497 497
TOTAL SERVICES 42,740 48,284 57,864 57,259 59,534

SUPPLIES
7204 Building/Grounds Maintenance - 5,000 5,000 5,000 5,000 TOTAL SUPPLIES - 5,000 5,000 5,000 5,000
DIVISION TOTAL 51,929 62,056 71,706 71,908 74,741
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 238

DEPARTMENT SUMMARY
FUND

LANDSCAPE MAINTENANCE DISTRICT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

LANDSCAPE MAINTENANCE

DISTRICT
51,929 62,056 71,706 71,908 74,741
DEPARTMENT TOTAL 51,929 62,056 71,706 71,908 74,741
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 239 Facilities and Community Services
Solid Waste
Program Description:

The Solid Waste Division operates automated refuse, recycling, and green waste collection for approximately 20,300 single-family residential units. Commercial bin service is provided for one to six days per week to 989 customers, and commercial recycling service is provided to about 614 businesses. New commercial organic waste recycling is provided to 35 customers.

Businesses have recently received notification of compliance for AB 1826 (Mandatory Commercial Recycling). Roll-off bin service is provided using 171 roll-off bins, which customers rent weekly. An un-staffed recycling drop-off center is provided at the City Yard for residents and businesses that don’t otherwise have an opportunity to recycle. As a community service, the Solid Waste Division provides cleanup of illegal dumping, educational activities with schools, and other solid waste education, including recycling and waste reduction for Redlands residents and businesses.

Program Objectives:
• Comply with all local, state, and federal regulatory requirements such as AB939, AB341, AB1826, SB1383, SCAQMD 1150.1 Clean Air Acts, and landfill operating requirements. • Provide cost-effective, high-quality service to all solid waste customers. • Operate the City’s landfill in an efficient and fiscally responsible manner to ensure regulatory compliance.
• Ensure landfill regulatory requirements and compliance are met or exceeded. • Ensure continued compliance with increasing state diversion/recycling requirements.

Significant Projects and Improvements:
• The California Street Landfill began construction of the installation of 13 vertical gas extraction wells on Phases 2 and 3. The project was completed on March 2, 2024. • Staff continue to provide customer outreach for SB1383. These new regulations require the recycling of organic/food waste material by businesses and residents. • To address mandatory recycling requirements of AB341, SB1383, and AB1826, the City’s Solid Waste Division is continuing the recycling outreach programs and has developed an organics collection route to provide service to approximately 87 commercial customers.

April 1, 2024, the Solid Waste Division began servicing curbside organic waste material for city residents.
• The Solid Waste Division continues to offer a Bulky Item Collection program to residential customers. The program allows customers to request a collection of bulky items retrieved from their curbside.
• The Solid Waste Division continues participating in a no-cost mattress recycling program offered through the State of California. This program allows staff to recycle mattresses collected through the City’s bulky item program. This program enables Landfill staff to extract mattresses from the waste stream and recycle them. Staff is also working with CalRecycle on the possibility of implementing a used carpet recycling program. • February 21, 2024, the California Street Landfill received a draft permit from the South Coast Air Quality Management District (SCAQMD) for a permit to construct one Enclosed Flare to accommodate the future needs and growth of the city. The Flare was purchased in March 2026 and is currently in the process of production.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 240 • Two new front-end loading, and one automated side loader collection truck was delivered to the Solid Waste Division in November of 2023.
• Implementation of Senate Bill 1383 (SB 1383) residential curbside organics collection.

Implementation included “Talking Trash” educational videos, updates to the city website, and free kitchen pails to residential and multi-family households. • Staff worked collaboratively to determine commercial businesses that were out of compliance with AB 341 (Mandatory Commercial Recycling) and brought over 326 commercial businesses into compliance.
• Implementation of a new Recycling program to help staff determine compliance for Mandatory Commercial Recycling (AB 341), Mandatory Commercial Organics Recycling (AB 1826), and Short-Lived Climate Pollutant Reduction Strategy (SB 1383).

Accomplishments for Fiscal Year 2024-2026:
• Solid Waste collected approximately 1,000,175 tons of refuse, and 26,500 total tons of organic material was diverted from the landfill through green waste and food waste collection.
• 87% of successful residential pick-ups.
• 100% efficiency of collection routes.
• CalRecycle certified that the City of Redlands meets the requirements of AB939, AB1826, AB341, and SB1383 and has adequately implemented a diversion program • Staff began outreach meetings and public speaking engagements to inform residents and business owners of the new assembly bills and recycling requirements of AB1826, AB341, and SB1383.
• The Landfill began the importation of compost material for erosion control and to remain in compliance with SB 1383.

Goals for Fiscal Year 2026-2028:
• Landfill will purchase a new landfill scraper in the amount of $1.2 million to support the ongoing operations and maintain regulatory compliance.
• The Landfill Division has purchased a new gas flare for $900,000 and will advertise a Request for Bids (RFB) for installation upon completion of fabrication. • The Landfill Phase 5 Expansion Project will receive contractor bids and is anticipated to break ground in 2026 to ensure continued disposal capacity. • The Solid Waste Division will place an order for three new solid waste collection trucks to support service reliability and fleet replacement needs. • Residential pick-up success will be at 92%.
• 675,000 total tons will be collected.
• Efficiency: 100% sustained.
• Organic diversion: 15,600 tons.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 241

DEPARTMENT/DIVISION
SOLID WASTEOPERATIONS

FUND ORGKEY
SOLID WASTE 511900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 3,072,824 3,618,820 3,618,820 4,524,253 4,848,163 5101 Overtime Salaries 527,049 400,000 450,000 408,320 408,320 5102 Reimbursable Overtime 17,444 - 25,000 20,000 20,000 5201 Stand By 2,805 - 2,536 3,000 3,000
5202 Holiday Pay 159,804 - 74,873 2,076 2,076
5203 Bonus 1,831 2,067 2,067 1,681 1,681
5204 Accrual Payout 24,827 - 28,518 15,798 15,798
5301 Banked Leave Buy Back 32,316 64,948 64,948 45,874 45,874 5401 Pension Contributions 906,918 965,709 965,709 972,657 990,374 5402 GASB68 Pension Expense (322,668) - - - -
5501 Social Security/Medicare 287,443 252,082 252,082 276,075 280,805 5601 Deferred Compensation 12,093 9,059 14,239 15,257 15,340 5701 Health/Dental Insurance 769,919 883,751 883,751 841,626 844,182 5702 Workers' Comp Insurance 394,305 408,023 408,023 277,263 284,585 5703 Disability Insurance 34,177 32,101 32,101 40,822 41,587 5704 Unemployment Insurance 4,081 21,874 21,874 22,898 22,898 5705 Life Insurance 3,142 3,175 3,175 3,330 3,330
5801 Vehicle Allowance 2,400 2,880 2,880 2,400 2,400
5802 Eyecare Reimbursement 3,172 15,120 15,120 15,663 15,663 5803 Clothing Allowance 14,321 14,190 14,190 17,441 17,441 5804 Uniform Rental 4,640 - 2,733 - -
5901 Compensated Absences
Expense
46,753 - - - -
5903 Other Taxable Benefits 2,699 885 2,384 10,326 10,326 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
6,002,294 6,694,684 6,885,022 7,516,761 7,873,845

SERVICES
6005 License & Permits 95,672 113,591 113,591 117,013 121,693 6006 Taxes 427 5,498 1,500 2,000 2,000
6007 Penalties and Interest 215 661 661 626 651
6008 State Mandated Fees 72,655 85,048 85,048 100,000 100,000 6105 Medical/Physicals 4,810 3,634 4,000 3,927 4,162
6106 Other Professional Services 779,652 1,066,456 682,189 732,189 1,023,000 6301 Water Wastewater Refuse 1,275 19,388 3,000 7,513 7,813 6304 Telephone 6,083 5,512 8,900 9,000 9,000
6307 Electricity & Gas 17,710 14,000 16,000 15,000 15,000 6401 Meeting & Prof Development - - 100 100 100
6402 Travel
Expense/Reimbursement
160 1,050 750 2,233 2,322
6403 Training 3,630 10,500 10,500 30,000 30,000
6505 Retiree Health Insurance 445,824 720,000 720,000 700,000 700,000 6601 Postage 6,606 - - - -
6703 Software Support/Development - 525 - - -
6710 Special Contractual Services 1,860,974 2,933,585 2,716,403 2,933,903 3,526,500 6712 Landfill Tipping Charges 62,494 90,101 90,101 100,000 100,000 6713 Landfill Closure/PC Expense 578,252 300,000 600,000 600,000 600,000 6801 City Attorney Legal Service 29,073 29,351 29,351 30,341 30,355 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 242

DEPARTMENT/DIVISION
SOLID WASTEOPERATIONS

FUND ORGKEY
SOLID WASTE 511900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6802 Info Tech Service Charges 373,164 328,740 378,740 533,092 550,861 6803 City Garage Charges 3,701,774 3,886,864 3,696,345 2,989,773 2,843,006 6804 General Govt Service Charge 748,326 774,517 774,517 1,199,612 1,234,155 6805 Billing Services 500,000 500,000 575,000 650,000 750,000 6901 Printing and Binding 15,085 7,445 11,500 15,000 15,000 6902 Advertising - 2,625 - - -
6903 Janitorial Services 11,773 27,642 25,000 26,000 26,500 6904 Land and Building Rent 6,341 5,985 5,985 6,319 6,572 6908 Other Rentals 128,109 52,500 - 50,000 50,000
6909 Subscriptions & Memberships 1,430 1,155 2,850 1,171 1,218 6910 Labor 20,296 18,088 25,000 20,000 20,000
6911 Bad Debt Expense 17,074 - - - -
6914 Depreciation Expense 1,088,761 - - - -
6916 Lease Amortization 48,302 - - - -
TOTAL SERVICES 10,625,947 11,004,460 10,577,032 10,874,812 11,769,908

SUPPLIES
7002 Office Supplies 2,543 9,000 4,000 4,000 4,000
7004 Uniform/Safety Clothing 91,703 51,000 90,000 90,000 90,000 7101 Office Equipment & Furniture 2,635 771 771 5,208 5,416 7102 Small Tools & Equipment 13,887 7,350 7,350 11,300 11,752 7203 Office Equipment Maintenance 675 - - 5,208 5,416
7204 Building/Grounds Maintenance 400 11,184 11,184 12,000 12,000 7205 Machinery & Equip. Maint. 13,770 14,700 25,000 17,135 17,820 7206 Vehicle Maintenance 3,386 1,764 5,600 1,987 2,066
7208 Repair/Maintenance Supplies 58,419 30,608 75,000 55,000 60,000 7209 Janitorial Supplies 15,645 7,350 7,350 8,433 8,770 7210 Building Supplies - 1,575 1,575 4,092 4,256
7211 Computer Components 4,654 4,200 4,200 4,242 4,284
7807 Food 1,745 1,260 1,260 1,531 1,592
7810 Special Departmental Supplies 565,736 806,386 806,386 753,831 783,984 TOTAL SUPPLIES 775,199 947,148 1,039,675 973,967 1,011,356

FIXED ASSETS
8501 Other Betterments/Improv 148,870 - - - -
8706 All Other Equipment 37,699 - - - -
8801 Capital Lease 30,835 28,714 113,950 187,039 228,651 8999 Capital Expenditure Offset (162,838) - - - -
TOTAL FIXED ASSETS 54,566 28,714 113,950 187,039 228,651

DEBT SERVICE
9102 Interest - Lease 4,411 - - - -
TOTAL DEBT SERVICE 4,411 - - - -
DIVISION TOTAL 17,462,417 18,675,006 18,615,678 19,552,580 20,883,760 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 243

DEPARTMENT/DIVISION
SOLID WASTEPROJECTS AND
GRANTS

FUND ORGKEY
SOLID WASTE 511910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 6,494 7,865 7,865 - -
5101 Overtime Salaries 143 - - - -
5401 Pension Contributions 2,008 - - - -
5501 Social Security/Medicare 475 - - - -
5701 Health/Dental Insurance 2,736 - - - -
5703 Disability Insurance 63 - - - -
5704 Unemployment Insurance 48 - - - -
5705 Life Insurance 7 - - - -

TOTAL SALARIES AND

BENEFITS
11,975 7,865 7,865 - -

SERVICES
6106 Other Professional Services 2,127 - - - -
6703 Software Support/Development 27,142 5,546 29,761 - - 6708 Special Program Expenditures - 34,957 33,105 - -
6710 Special Contractual Services 24,625 47,750 36,375 - - 6901 Printing and Binding - - 6,854 - -
6902 Advertising 5,594 - - - -
TOTAL SERVICES 59,489 88,253 106,094 - -

SUPPLIES
7206 Vehicle Maintenance 14,352 - 14,352 - -
7810 Special Departmental Supplies 47,665 104,027 86,185 - - 7901 Non-Capital Expenditures 16,751 - 5,352 - -
TOTAL SUPPLIES 78,768 104,027 105,889 - -

FIXED ASSETS
8301 Construction In Progress 6,520 - - - -
8501 Other Betterments/Improv - 1,183,034 1,792,660 4,250,000 - 8704 Motor Vehicles 1,420,048 3,464,969 4,664,969 2,000,000 5,036,438 8999 Capital Expenditure Offset (1,426,568) - - - -
TOTAL FIXED ASSETS - 4,648,002 6,457,628 6,250,000 5,036,438

DEBT SERVICE
9001 Principal - 323,257 328,155 222,301 237,841
9101 Interest 51,693 46,896 54,323 38,728 22,691
TOTAL DEBT SERVICE 51,693 370,153 382,478 261,029 260,531 DIVISION TOTAL 201,925 5,218,299 7,059,955 6,511,029 5,296,969 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 244

DEPARTMENT/DIVISION

SOLID WASTE-DEBT

SERVICE

FUND ORGKEY
SOLID WASTE 511930
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6004 Bank/Collection Agent Fees 12,054 12,913 12,913 12,913 12,913 TOTAL SERVICES 12,054 12,913 12,913 12,913 12,913

DEBT SERVICE
9001 Principal - 304,691 304,691 314,212 324,031
9101 Interest 117,353 107,856 107,856 98,061 87,961
TOTAL DEBT SERVICE 117,353 412,547 412,547 412,274 411,992 DIVISION TOTAL 129,407 425,460 425,460 425,187 424,905
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 245

DEPARTMENT/DIVISION

FUND ORGKEY
SOLID WASTE 511981
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5802 Eyecare Reimbursement 300 - - - -

TOTAL SALARIES AND

BENEFITS
300 - - - -
DIVISION TOTAL 300 - - - -

LANDFILL
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 246

DEPARTMENT SUMMARY
FUND

SOLID WASTE
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
SOLID WASTE-OPERATIONS 17,462,417 18,675,006 18,615,678 19,552,580 20,883,760

SOLID WASTE-PROJECTS

AND GRANTS
201,925 5,218,299 7,059,955 6,511,029 5,296,969

SOLID WASTE-DEBT

SERVICE
129,407 425,460 425,460 425,187 424,905
LANDFILL 300 - - - -
DEPARTMENT TOTAL 17,794,049 24,318,765 26,101,093 26,488,795 26,605,634 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 247

DEPARTMENT/DIVISION

SOLID WASTE CAPITAL

IMPROVEMENT FUND

FUND ORGKEY
SOLID WASTE CAPITAL IMPROV 519920
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge - 2,000 - - -
TOTAL SERVICES - 2,000 - - -
DIVISION TOTAL - 2,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 248

DEPARTMENT SUMMARY
FUND

SOLID WASTE CAPITAL IMPROV
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SOLID WASTE CAPITAL

IMPROVEMENT FUND
- 2,000 - - -
DEPARTMENT TOTAL - 2,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 249 Facilities and Community Services
Citrus Groves
Program Description:

The City currently farms 22 separate citrus groves totaling approximately 184 acres. Several citrus varieties, including Navel orange, Valencia orange, Ruby Star grapefruit, and Rio grapefruit, are farmed within these groves. The department staff provides onsite repairs and maintenance as well as oversight of various contractors.

The Citrus Preservation Commission has been appointed by the City Council to advise staff and the City Council on both technical and business matters related to citrus grove management.

Seventy acres of the city-owned groves are designated as Citrus Heritage Groves to be protected for future generations. The groves were primarily purchased with funds from Measure “O” and Park Acquisition Funds.

The Citrus Grove budget is presented in twenty-one separate job ledgers/programs as an Enterprise Fund, to be supported by revenue received from the sale of citrus products from these groves. The groves currently owned and maintained by the city are known as:

1. California

2. Palmetto1, Palmetto 2

3. Dearborn & Pioneer

4. Fifth

5. Granite

6. Jacinto Memorial

7. Judson

8. Lugonia

9. Mountain View

10. Mullin

11. Olive

12. Judson East

13. Judson West

14. Prospect

15. Riverview

16. Texas

17. University

18. Gateway

19. West Riverview

20. Sessums

21. Wabash

22. San Bernardino

23. England
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 250 Program Objectives:
• Staff support for the Citrus Preservation Commission on matters of acquisition, improvement, preservation, operation, and retention of citrus properties within the City. • Efficiently, effectively, and economically manage the day-to-day operation of the groves, and market the crops to recover all costs of operation. • Preserve acreage in citrus production consistent with the City’s historical and cultural heritage as a citrus growing community while providing an economic basis for supporting private citrus development and processing facilities.

Significant Program Changes and Process Improvements:
• Staff continues to monitor the impact of the Asian citrus psyllid on the California citrus industry and implementing prevention methods.

Accomplishments for Fiscal Year 2024-2026:
• Accepted possession of England Grove.
• Farmed 184 acres.
• 93,058 cartons of fruit were harvested.

Goals for Fiscal Year 2026-2028:
• Farm 190 acres.
• Harvest 110,000 cartons of fruit.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 251

DEPARTMENT/DIVISION

GROVES-OPERATIONS

FUND ORGKEY
GROVES FUND 538900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 191,367 224,664 224,664 233,787 252,065 5101 Overtime Salaries 18,673 15,000 15,000 15,450 15,914 5202 Holiday Pay 7,668 - 3,560 - -
5203 Bonus - 132 132 - -
5204 Accrual Payout 4,197 - 2,701 340 340
5301 Banked Leave Buy Back 948 5,244 5,244 1,060 1,060
5401 Pension Contributions 55,757 66,550 66,550 63,995 66,573 5402 GASB68 Pension Expense 146,700 - - - -
5501 Social Security/Medicare 16,854 17,456 17,456 17,520 18,200 5601 Deferred Compensation 716 1,071 1,071 798 810
5701 Health/Dental Insurance 43,567 73,628 73,628 55,912 55,965 5702 Workers' Comp Insurance 8,216 8,502 8,502 - -
5703 Disability Insurance 1,972 2,028 2,028 2,568 2,683 5704 Unemployment Insurance 383 1,554 1,554 1,541 1,541 5705 Life Insurance 217 226 226 224 224
5801 Vehicle Allowance - 180 180 - -
5802 Eyecare Reimbursement - 1,074 1,074 1,065 1,065
5803 Clothing Allowance 750 1,005 1,005 1,100 1,100
5804 Uniform Rental 364 - 189 - -
5901 Compensated Absences
Expense
2,614 - - - -
5903 Other Taxable Benefits - 50 50 533 533

TOTAL SALARIES AND

BENEFITS
500,962 418,364 424,814 395,890 418,072

SERVICES
6007 Penalties and Interest 28 - 25 - -
6102 Legal Services - - 8,759 - -
6304 Telephone 368 1,530 1,530 1,576 1,623
6308 Elec Service-Facility Ops 26,799 - 16,000 - -
6707 Stock Assessment 5,856 - - - -
6708 Special Program Expenditures - - 10 - -
6710 Special Contractual Services 406 - 1,252 - -
6802 Info Tech Service Charges 30,462 26,836 26,836 43,518 44,968 6804 General Govt Service Charge 28,776 29,784 29,784 30,749 32,077 6914 Depreciation Expense 24,915 - - - -
6916 Lease Amortization 6,865 - - - -
TOTAL SERVICES 124,477 58,150 84,196 75,843 78,668

SUPPLIES
7102 Small Tools & Equipment 5,381 - - - -
7204 Building/Grounds Maintenance 3,753 1,247 1,247 - - 7206 Vehicle Maintenance 911 2,500 2,500 2,575 2,652
7208 Repair/Maintenance Supplies 10,750 5,838 15,000 5,150 5,150 7810 Special Departmental Supplies - 3,500 3,500 3,605 3,713 TOTAL SUPPLIES 20,796 13,085 22,247 11,330 11,515

FIXED ASSETS
8801 Capital Lease 8,671 16,560 17,016 17,162 17,162
TOTAL FIXED ASSETS 8,671 16,560 17,016 17,162 17,162
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 252

DEPARTMENT/DIVISION

GROVES-OPERATIONS

FUND ORGKEY
GROVES FUND 538900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

DEBT SERVICE
9102 Interest - Lease 63 - - - -
TOTAL DEBT SERVICE 63 - - - -
DIVISION TOTAL 654,969 506,159 548,272 500,226 525,417
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 253

DEPARTMENT/DIVISION

GROVES-PROJECTS

AND GRANTS

FUND ORGKEY
GROVES FUND 538910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6006 Taxes 788 - 189 - -
6106 Other Professional Services 56 - 45 - -
6301 Water Wastewater Refuse 88,621 84,143 170,850 106,394 109,585 6307 Electricity & Gas 5,660 6,834 7,523 4,413 4,545
6308 Elec Service-Facility Ops - 12,240 - 12,607 12,985 6510 Other Insurance - 7,350 7,350 7,334 7,365
6710 Special Contractual Services 810,487 818,321 1,089,078 1,173,262 1,220,571 6902 Advertising - 1,000 1,000 1,000 1,000
TOTAL SERVICES 905,611 929,888 1,276,036 1,305,010 1,356,051

SUPPLIES
7002 Office Supplies - 1,020 1,020 - -
7208 Repair/Maintenance Supplies - 37,830 37,830 38,965 40,134 TOTAL SUPPLIES - 38,850 38,850 38,965 40,134

FIXED ASSETS
8001 Land Acquisitions - 90,000 91,684 - -
TOTAL FIXED ASSETS - 90,000 91,684 - -
DIVISION TOTAL 905,611 1,058,738 1,406,570 1,343,975 1,396,185 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 254

DEPARTMENT SUMMARY
FUND

GROVES FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
GROVES-OPERATIONS 654,969 506,159 548,272 500,226 525,417

GROVES-PROJECTS AND
GRANTS
905,611 1,058,738 1,406,570 1,343,975 1,396,185
DEPARTMENT TOTAL 1,560,580 1,564,897 1,954,842 1,844,201 1,921,603 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 255 Facilities and Community Services
Cemetery Division
Program Description:

Hillside Memorial Park is a historic cemetery consisting of more than fifty acres of land. There are 11.75 acres of undeveloped land reserved for future developments. The cemetery has performed and recorded over 33,400 interments since it was established in 1886. Hillside Memorial Park provides a place of reflection and remembrance for those that visit. Families that select Hillside Memorial Park as a final resting place are presented with an array of products to choose from, which span from ground burials to mausoleum entombments. There are also multiple options for families that prefer cremation services. Hillside staff works diligently with public and private organizations to provide the best possible service to families. The cemetery conducts an average of 200 interments per year.

The cemetery is an Enterprise Fund organized to produce revenue to offset expenditure. Portions of the cemetery revenues are placed into the Cemetery Perpetual Care Fund to help offset the expenses associated with future maintenance and upkeep of the cemetery grounds as well as to fund capital improvement projects.

Program Objectives:
• Provide excellent customer service to residents and the community by offering an array of services and products.
• Continue to modernize record-keeping systems to include digital information storage and retrieval.
• Digitize archived records in an electronic format for efficient and accurate research. • Implement capital improvement projects that will allow the cemetery to remain modern and competitive.

Significant Projects and Improvements:
• Management of property inventory database to track available inventory spaces more effectively.
• Maintained permanent records for 33,548 recorded interments. • Sold 129 plots.
• Performed 189 new interments, 43.39% of which were cremation related services. • Sunset Lawn Phase II was developed and will add an additional 220 casket burial spaces and 350 cremation spaces. (This area is classified as a Basic product option.) • Garden of Hope was developed and will add an additional 500 casket burial spaces and 300 cremation spaces. (This area is classified as a Traditional product option.) • Garden of Peace was developed and will add 350 casket spaces and 220 cremation spaces. (This area is classified as a Premium product option.) • Cemetery staff have started an ongoing property inventory verification project to identify usable spaces located on the historic north end of the cemetery. An additional 10 usable cremation spaces were identified and added to the property inventory by staff.

Fiscal Year 2026-2028 Goals:

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 256 • Complete 185 burials.
• Sell 200 plots.
• Additional surveying for lot 12.
• GIS location project with online customer information completed.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 257

DEPARTMENT/DIVISION

CEMETERY

FUND ORGKEY
CEMETERY 562900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 348,632 402,698 402,698 439,839 472,958 5002 Salaries: Part-Time - 16,000 16,000 16,830 16,830
5101 Overtime Salaries 10,096 10,000 13,000 10,000 10,000 5201 Stand By 74 - - - -
5202 Holiday Pay 9,724 - 3,548 - -
5203 Bonus - 88 88 - -
5204 Accrual Payout 1,095 - 822 1,086 1,086
5301 Banked Leave Buy Back 3,476 8,248 8,248 2,871 2,871 5401 Pension Contributions 102,747 120,213 120,213 116,059 116,350 5402 GASB68 Pension Expense (89,349) - - - -
5501 Social Security/Medicare 28,414 32,630 32,630 33,374 33,416 5601 Deferred Compensation 1,368 1,567 1,567 1,368 1,368 5701 Health/Dental Insurance 84,372 99,267 99,267 84,809 85,089 5702 Workers' Comp Insurance 17,802 15,587 15,587 16,320 16,751 5703 Disability Insurance 2,661 3,092 3,092 3,934 3,940 5704 Unemployment Insurance 290 2,773 2,773 2,765 2,765 5705 Life Insurance 307 340 340 339 339
5801 Vehicle Allowance - 120 120 - -
5802 Eyecare Reimbursement 1,753 1,617 1,617 1,611 1,611 5803 Clothing Allowance 1,110 1,277 1,277 1,094 1,094
5804 Uniform Rental 336 - 222 - -
5901 Compensated Absences
Expense
4,585 - - - -
5903 Other Taxable Benefits 2,663 2,634 2,634 3,266 3,266 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
532,157 718,151 725,743 735,566 769,733

SERVICES
6005 License & Permits 1,650 800 800 800 800
6007 Penalties and Interest 13 - - - -
6301 Water Wastewater Refuse 33,041 31,500 31,500 31,500 31,500 6304 Telephone 3,717 2,900 2,900 2,900 2,900
6307 Electricity & Gas 4,152 4,300 4,300 4,300 4,300
6401 Meeting & Prof Development 150 7,000 1,200 7,000 5,000 6402 Travel
Expense/Reimbursement
1 1,200 19 1,200 1,200
6403 Training 434 1,500 1,500 1,500 1,500
6505 Retiree Health Insurance 31,939 70,000 70,000 70,000 70,000 6601 Postage 13 250 250 250 -
6703 Software Support/Development - - - 45,000 -
6710 Special Contractual Services 127,560 214,644 187,658 275,352 241,940 6802 Info Tech Service Charges 45,694 33,545 33,545 54,397 56,210 6803 City Garage Charges 48,618 50,649 44,322 35,849 32,499 6804 General Govt Service Charge 79,974 82,773 82,773 85,455 89,146 6901 Printing and Binding - 500 500 500 500
6902 Advertising 2,626 5,000 5,000 5,000 5,000
6903 Janitorial Services 19,654 31,148 31,148 35,000 35,000 6906 Office Equip & Furn Rent 1,659 2,500 - - -
6909 Subscriptions & Memberships - 330 330 330 330
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 258

DEPARTMENT/DIVISION

CEMETERY

FUND ORGKEY
CEMETERY 562900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6910 Labor 705 792 7,000 - -
6911 Bad Debt Expense 300 - - - -
6914 Depreciation Expense 44,834 - - - -
6916 Lease Amortization 41,636 - - - -
TOTAL SERVICES 488,370 541,330 504,745 656,333 577,825

SUPPLIES
7002 Office Supplies 2,375 4,200 4,200 2,000 2,000
7004 Uniform/Safety Clothing 3,372 2,508 3,500 3,600 3,600 7101 Office Equipment & Furniture - 1,500 4,500 2,500 2,500 7102 Small Tools & Equipment 2,126 2,500 3,500 2,000 2,000 7204 Building/Grounds Maintenance 17,159 22,000 1,000 - - 7206 Vehicle Maintenance 1,748 1,259 4,000 2,500 2,500
7208 Repair/Maintenance Supplies 20,360 14,658 16,250 14,500 14,500 7209 Janitorial Supplies - 200 100 200 200
7801 Resale Materials 56,196 67,352 50,000 50,000 50,000 7806 Promotional Supplies - 2,500 2,500 1,200 1,100
7807 Food 21 500 521 500 500
7810 Special Departmental Supplies 7,653 2,750 7,000 2,500 2,500 7901 Non-Capital Expenditures 5,537 - - - -
TOTAL SUPPLIES 116,546 121,928 97,071 81,500 81,400

FIXED ASSETS
8301 Construction In Progress 13,300 - - - -
8501 Other Betterments/Improv - 100,000 43,000 500,000 115,000 8602 Other Land Improvements - 9,600 57,000 - -
8801 Capital Lease 8,647 71,335 70,244 89,498 91,758
8999 Capital Expenditure Offset (13,300) - - - -
TOTAL FIXED ASSETS 8,647 180,935 170,244 589,498 206,758

DEBT SERVICE
9001 Principal - 150,000 150,000 150,000 60,077
9101 Interest 22,545 - - - -
9102 Interest - Lease 2,492 - - - -
TOTAL DEBT SERVICE 25,038 150,000 150,000 150,000 60,077 DIVISION TOTAL 1,170,757 1,712,344 1,647,803 2,212,898 1,695,793 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 259

DEPARTMENT SUMMARY
FUND

CEMETERY
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
CEMETERY 1,170,757 1,712,344 1,647,803 2,212,898 1,695,793 DEPARTMENT TOTAL 1,170,757 1,712,344 1,647,803 2,212,898 1,695,793 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 260 Facilities and Community Services
Redlands Municipal Airport
(Aviation Division)
Program Description:

The Aviation Division manages all airfield operations, airport land leases, tie-downs, and city airfield facilities and equipment. The Division ensures compliance with the Federal Aviation Administration and the California Department of Transportation Aeronautics Division requirements for General Aviation airport facilities. The airport budget is an Enterprise Fund to sustain the program through airport revenue. The City Council has appointed the Airport Advisory Board to advise the City Council on airport management matters. Oversight is provided by department staff that coordinate airport maintenance activities, grant acquisition, and administration through various department divisions.

The airport encompasses 177 acres, with 197 hangars, 25 offices, 210 tie-downs, and approximately 200 based aircraft. There are currently 14 businesses based at the airport.

Program Objectives:
• Maintain a safe aviation environment.
• Operate the airport as a self-sustaining Enterprise Fund. • Provide regular education, inspections of airport facilities and equipment along with recurring maintenance.
• Leverage FAA and Caltrans entitlements to maximize capital improvements through FAA and Caltrans grant programs.
• Administer the city-owned west ramp tie-downs.
• Administer Fixed Base Operators (FBO’s) with land leases. • Administer, advise, coordinate, and communicate land use and airspace compatibility. • Provide staff liaison to the Airport Advisory Board.

Accomplishments for Fiscal Year 2024-2026:
• Hosted the annual Halloween Plane-or-Treat event bringing over 3500 participants to the airfield to learn about aviation activities and the Redlands Airport. • $750,000 in FAA Grants awarded.
• Processed for approval FAA Entitlement Planning Grants and State of California Matching Grants for runway and taxiway resurfacing, Wildlife Hazardous Management Plan, design for a new airfield security fence, and associated environmental documents. • Continued agreement with Civil Air Patrol to base a youth squadron at Redlands Municipal Airport, which teaches youth participants about aviation careers and activities and provides support to airport events and operations.
• Completed the FAA funded runway resurfacing project.
• Complied with FAA Hangar Policy and San Bernardino Possessory Tax requirements through hangar inspection program.
• Sustained maintenance of Storm Water Pollution Prevention Program, achieving recognition and approval to limit sampling one time per year for staying within compliance standards.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 261 • Secured on-call service agreement with design, planning, and engineering consultants to provide all FAA required documents and information for grant funded projects. • Conducted outreach/engagement with FAA, San Bernardino International Airport, and Redlands Pilot community relating to a new flight pattern transecting through Redlands Municipal Airport airspace.
• Remediated v-ditch between Taxiway-Alpha and the West Ramp. • 47,000 runway operations.

Goals for Fiscal Year 2026-2028:
• Secure $563,000 in FAA grants to continue to support improvements. • Host the annual Halloween Plane-or-Treat event bringing over 3500 participants to the airfield in the second year to learn about aviation activities and Redlands Airport. • Develop and release an RFP to provide additional fuel service at the airport, including JetA fuel utilized by growing number of helicopters at KREI. • Restore the beacon tower as a showcase to aviation history in Redlands and the Inland Empire.
• Continue to enhance the Airport with landscaping and clearing of the Runway Safety Areas.
• Grow to 49,000 runway operations.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 262

DEPARTMENT/DIVISION

AIRPORT-OPERATIONS

FUND ORGKEY
REDLANDS MUNICIPAL AIRPORT 564900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 61,436 100,670 100,670 92,101 100,569 5101 Overtime Salaries 12 - 44 - -
5202 Holiday Pay 50 - 46 - -
5203 Bonus - 44 44 - -
5204 Accrual Payout 15,579 - 1,260 1,013 1,013
5301 Banked Leave Buy Back 65 1,499 1,499 75 75
5401 Pension Contributions 17,284 29,910 29,910 24,739 25,969 5402 GASB68 Pension Expense (90,530) - - - -
5501 Social Security/Medicare 6,105 7,775 7,775 7,106 7,430 5601 Deferred Compensation 1,390 1,512 1,512 1,423 1,428 5701 Health/Dental Insurance 4,461 5,068 5,068 6,186 6,193 5702 Workers' Comp Insurance - 2,834 2,834 7,446 7,642
5703 Disability Insurance 28 - 17 39 41
5704 Unemployment Insurance 124 456 463 473 473
5705 Life Insurance 45 66 66 69 69
5801 Vehicle Allowance - 60 60 - -
5802 Eyecare Reimbursement - 315 315 327 327
5803 Clothing Allowance 38 - 15 15 15
5901 Compensated Absences
Expense
794 - - - -
5903 Other Taxable Benefits 182 158 158 164 164

TOTAL SALARIES AND

BENEFITS
17,063 150,367 151,755 141,175 151,407

SERVICES
6005 License & Permits 1,873 - - - -
6007 Penalties and Interest 69 - 14 - -
6008 State Mandated Fees - - 27 - -
6106 Other Professional Services - - 3,158 - -
6301 Water Wastewater Refuse 10,530 14,000 12,000 14,000 14,000 6304 Telephone 8,875 14,000 8,000 14,000 14,000
6307 Electricity & Gas 29,274 43,000 25,000 43,000 43,000 6403 Training 32 1,000 36 1,000 1,000
6505 Retiree Health Insurance 3,535 - 11 - -
6510 Other Insurance - - 1,000 - -
6601 Postage - - 300 - -
6703 Software Support/Development 129 1,500 1,125 1,500 1,500 6710 Special Contractual Services 53,075 26,712 65,000 49,000 39,500 6712 Landfill Tipping Charges 3,195 - 2,000 - -
6802 Info Tech Service Charges - 6,709 6,709 10,879 11,242 6803 City Garage Charges 4,961 5,168 4,523 3,658 3,316
6804 General Govt Service Charge 80,375 83,188 83,188 85,883 89,593 6902 Advertising 7,025 2,500 8,340 3,500 3,000
6903 Janitorial Services 11,710 39,918 23,400 26,000 25,000 6907 Comms Service & Rental - 1,654 1,000 2,000 1,500
6909 Subscriptions & Memberships 250 500 500 500 500
6910 Labor 22,669 9,549 40,000 40,000 40,000
6911 Bad Debt Expense 57 - 500 500 500
6912 Reimbursed Expenditures 34,247 3,605 3,605 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 263

DEPARTMENT/DIVISION

AIRPORT-OPERATIONS

FUND ORGKEY
REDLANDS MUNICIPAL AIRPORT 564900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6914 Depreciation Expense 221,534 - - - -
6918 Unreimbursed Expenditures 40,000 - - - -
TOTAL SERVICES 533,416 253,002 289,436 295,420 287,651

SUPPLIES
7002 Office Supplies 111 1,600 1,312 1,000 1,000
7102 Small Tools & Equipment - 1,200 1,000 600 600
7204 Building/Grounds Maintenance 12,776 50,000 15,000 15,000 20,000 7208 Repair/Maintenance Supplies 17,969 25,818 40,000 35,000 35,000 7209 Janitorial Supplies - - 3,000 4,000 4,000
7210 Building Supplies 224 4,000 16,504 4,000 4,000
7807 Food - 500 2,500 - -
7810 Special Departmental Supplies 2,491 - 1,617 2,000 2,000 TOTAL SUPPLIES 33,572 83,118 80,933 61,600 66,600

FIXED ASSETS
8801 Capital Lease - 24,400 - - -
TOTAL FIXED ASSETS - 24,400 - - -

DEBT SERVICE
9001 Principal - 57,000 57,000 57,000 57,000
9101 Interest 32,228 3,000 3,000 3,000 3,000
TOTAL DEBT SERVICE 32,228 60,000 60,000 60,000 60,000
DIVISION TOTAL 616,279 570,887 582,125 558,195 565,658
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 264

DEPARTMENT/DIVISION

AIRPORT-PROJECTS

AND GRANTS

FUND ORGKEY
REDLANDS MUNICIPAL AIRPORT 564910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6710 Special Contractual Services 2,857 36,051 36,051 - - 6912 Reimbursed Expenditures (34,135) (3,605) (3,605) - - TOTAL SERVICES (31,278) 32,446 32,446 - -

SUPPLIES
7204 Building/Grounds Maintenance 15,872 25,872 - -
7901 Non-Capital Expenditures 617,039 - - - -
TOTAL SUPPLIES 617,039 15,872 25,872 - -
DIVISION TOTAL 585,761 48,318 58,318 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 265

DEPARTMENT SUMMARY
FUND

REDLANDS MUNICIPAL AIRPORT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
AIRPORT-OPERATIONS 616,279 570,887 582,125 558,195 565,658

AIRPORT-PROJECTS AND
GRANTS
585,761 48,318 58,318 - -
DEPARTMENT TOTAL 1,202,040 619,205 640,442 558,195 565,658 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 266 Facilities and Community Services
Equipment Maintenance Division
Program Description:

The Equipment Maintenance Division provides maintenance and repair services as well as safety inspections for the City’s vehicles and equipment. Emphasis is placed on safety, preventive maintenance, and compliance with air quality and other State regulations. Equipment Maintenance staff provide the support necessary to maintain over 600 units of vehicles, heavy equipment, generators, and compressors, as well as operation of the City’s L/CNG fuel station.

The Equipment Maintenance Division is an Internal Service Fund.

Program Objectives:
• Provide maintenance and repair services to City departments to maintain an in-service rate of 93% or higher.
• Continue to receive an annual award of tax rebates through consistent and timely L/CNG tax reporting.
• Maintain and provide timely reporting for programs required by the State of California and other regulatory agencies.
• Maintain continuous training for mechanics to ensure up-to-date skills and knowledge of computer and electronic technology on the newer model electric, and alternative fuel vehicles.

Accomplishments for Fiscal Year 2024-2026:
• 2 Vehicle charging stations were developed.
• Percentage of city facilities with chargers is 6%.
• 1% of fleet vehicles were transitioned to Zero Emission Vehicles. • 18 fleet vehicles are alternative fuel.

Goals for Fiscal Year 2026-2028:
• The average fleet age will be 15 years old. 5-Years Old by end of 2028 • Percentage of city facilities with chargers 24%.
• 8 vehicle charging stations will be developed.
• 10% of fleet will transition to zero emission vehicles. • 16% of fleet will meet CARB Zero Emission Vehicle Standards. • 34 vehicles in fleet will be alternative fuel vehicles.

Strategic Plan
The Equipment Maintenance Division supports the Strategic Plan Priority D – Sustainability through continued evaluation of the City's medium and light-duty vehicles under the vehicle lease and maintenance program with Enterprise Fleet Management. Through this program, 290 City vehicles have been replaced, resulting in an increase in safety and a reduction in maintenance costs associated with older vehicles.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 267

DEPARTMENT/DIVISION

EQUIPMENT

MAINTENANCE

FUND ORGKEY
EQUIPMENT MAINTENANCE 607900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 352,262 696,947 696,947 1,175,039 1,251,688 5101 Overtime Salaries 54,940 42,588 150,000 160,000 170,000 5201 Stand By 67 811 811 12,480 13,104
5202 Holiday Pay 6,904 - 13,878 - -
5203 Bonus - 440 440 - -
5204 Accrual Payout 31,512 - 10,548 1,496 1,496
5301 Banked Leave Buy Back 9,386 23,434 23,434 4,945 4,945 5401 Pension Contributions 102,143 200,031 200,031 188,928 192,444 5402 GASB68 Pension Expense (301,130) - - - -
5501 Social Security/Medicare 34,614 52,946 52,946 52,085 52,990 5601 Deferred Compensation 1,884 2,877 2,877 1,884 1,884 5701 Health/Dental Insurance 67,002 175,316 175,316 132,977 133,250 5702 Workers' Comp Insurance 104,547 108,185 108,185 37,070 38,049 5703 Disability Insurance 3,015 5,460 5,460 6,835 6,931 5704 Unemployment Insurance 455 3,763 3,763 3,719 3,719 5705 Life Insurance 287 546 546 541 541
5801 Vehicle Allowance - 600 600 - -
5802 Eyecare Reimbursement 890 2,601 2,601 2,571 2,571
5803 Clothing Allowance 1,788 2,250 2,250 3,125 3,125
5804 Uniform Rental 235 - 347 - -
5901 Compensated Absences
Expense
5,745 - - - -
5903 Other Taxable Benefits 1,019 311 780 1,346 1,346

TOTAL SALARIES AND

BENEFITS
477,565 1,319,105 1,451,761 1,785,041 1,878,084

SERVICES
6004 Bank/Collection Agent Fees 9,742 28,078 18,078 18,078 28,078 6005 License & Permits 16,056 109,453 15,000 20,000 20,000 6006 Taxes 71,196 30,341 30,341 30,341 30,341
6007 Penalties and Interest 14,196 - 850 1,000 1,000
6008 State Mandated Fees 7,594 500 26,000 26,000 26,000 6105 Medical/Physicals 80 200 435 200 200
6304 Telephone 5,329 6,655 6,655 6,655 6,655
6401 Meeting & Prof Development 675 - 805 5,000 5,000
6402 Travel
Expense/Reimbursement
944 500 500 5,000 5,000
6403 Training 258 3,000 18,000 25,000 15,000
6505 Retiree Health Insurance 119,654 140,000 140,000 140,000 140,000 6601 Postage 619 600 600 600 600
6703 Software Support/Development 47,034 39,310 120,500 86,810 86,810 6710 Special Contractual Services 47,249 52,000 195,491 59,740 59,780 6802 Info Tech Service Charges 38,078 33,545 33,545 54,397 56,210 6804 General Govt Service Charge 494,184 511,480 511,480 528,052 550,864 6901 Printing and Binding - - 202 200 200
6906 Office Equip & Furn Rent 1,659 2,244 - - -
6908 Other Rentals 86,592 36,954 225,000 225,000 225,000 6909 Subscriptions & Memberships 36,127 1,000 7,000 2,000 1,000 6910 Labor 216,411 125,750 218,750 218,750 111,240
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 268

DEPARTMENT/DIVISION

EQUIPMENT

MAINTENANCE

FUND ORGKEY
EQUIPMENT MAINTENANCE 607900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6914 Depreciation Expense 59,512 - - - -
6916 Lease Amortization 16,532 - - - -
TOTAL SERVICES 1,289,720 1,121,610 1,569,232 1,452,823 1,368,978

SUPPLIES
7002 Office Supplies 3,692 10,950 4,000 8,950 8,950
7004 Uniform/Safety Clothing 9,652 37,560 17,560 25,000 25,000 7101 Office Equipment & Furniture 12,164 9,561 9,561 9,561 9,561 7102 Small Tools & Equipment 84,647 30,670 75,000 110,000 65,000 7201 Hardware Maint/Replace 458 - - - -
7203 Office Equipment Maintenance 9,853 - 2,880 4,500 4,500 7204 Building/Grounds Maintenance 75,650 83,822 120,000 110,000 110,000 7205 Machinery & Equip. Maint. 4,448 80,282 250,000 250,000 260,000 7206 Vehicle Maintenance 2,006,629 1,807,675 1,400,000 692,808 995,724 7208 Repair/Maintenance Supplies 480,465 104,286 104,285 121,700 121,700 7209 Janitorial Supplies 29,535 26,807 40,000 25,000 25,000 7210 Building Supplies 16,086 57,238 100,000 60,000 70,000 7211 Computer Components 5,451 13,584 6,000 14,263 14,977 7212 Equipment Parts 30,683 62,491 200,000 165,615 182,491 7213 Motor Vehicle Supplies 1,909,833 1,713,024 2,000,000 1,750,280 1,837,794 7214 Tires & Tubes 285,217 355,186 300,000 300,000 300,000 7301 Gasoline 587,088 642,163 600,000 620,000 620,000
7302 Compressed Natural Gas
(LCNG)
438,283 2,090,345 430,000 430,000 430,000
7303 Oil and Lubricants 105,800 147,594 100,000 97,594 107,594 7304 Diesel Fuel 253,319 475,836 315,000 350,000 350,000 7807 Food 1,004 2,362 2,362 7,362 8,362
7810 Special Departmental Supplies 48,801 16,633 25,132 27,132 30,645 7901 Non-Capital Expenditures 654 16,900 900 900 900
TOTAL SUPPLIES 6,399,410 7,784,969 6,102,681 5,180,666 5,578,197

FIXED ASSETS
8501 Other Betterments/Improv - 746,845 48,000 875,000 - 8503 Building Const/Improv - 425,000 - - -
8704 Motor Vehicles - - - 200,000 -
8706 All Other Equipment 90,282 150,865 82,052 - -
8801 Capital Lease 2,248 14,851 19,466 75,676 72,719
8999 Capital Expenditure Offset (104,058) - - - -
TOTAL FIXED ASSETS (11,528) 1,337,560 149,518 1,150,676 72,719

DEBT SERVICE
9102 Interest - Lease 1,240 - - - -
TOTAL DEBT SERVICE 1,240 - - - -
DIVISION TOTAL 8,156,408 11,563,244 9,273,191 9,569,206 8,897,978 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 269

DEPARTMENT SUMMARY
FUND

EQUIPMENT MAINTENANCE
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
EQUIPMENT MAINTENANCE 8,156,408 11,563,244 9,273,191 9,569,206 8,897,978 DEPARTMENT TOTAL 8,156,408 11,563,244 9,273,191 9,569,206 8,897,978 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 270 Municipal Utilities and Engineering Department
Mission:

The mission of the Municipal Utilities & Engineering Department (MUED) is to provide reliable service to the community with professionalism, integrity, accountability, quality, transparency, and innovation. MUED plans, designs, constructs, operates, and maintains Redlands’ physical infrastructure for the residents and businesses in the City; making our community a desirable place to live, work, and visit.

MUED is responsible for delivering the following services to the City’s residents and businesses:
• Utility Operations:
o Water production and distribution
o Non-potable and recycled water distribution
o Wastewater collection, treatment, and disposal
• Engineering review and inspection of development proposals for compliance with State and City codes, standards, and other governmental requirements relating to land subdivisions, grading, drainage, and improvements within the City rights-of-way. • Management, rehabilitation, and replacement of infrastructures such as water mains, sewer mains, storm drains, streets, and traffic signals to provide reliable service to the community. • Development and construction of new public facilities to protect and enhance Redlands’ livability.

MUED is organized into three (3) divisions, including Engineering (Development Review, Capital Improvement Program and Construction Management), Water Utility Operations (Potable and Non-Potable), and Wastewater Utility Operations. In total, MUED employs 94 full-time, and one (1) part-time, professionals.

Departmental Goals:
• Preserve City Assets
o Provide responsible leadership and management to preserve the City’s physical assets and resources.
o Optimize City’s physical assets to ensure reliability and exceed anticipated service life. o Maximize sustainable practices and ensure City infrastructure improvements support the City’s mission to limit its environmental footprint.
o Provide fiscally responsible water, non-potable (including recycled) water, and wastewater services.
o Provide a safe, well-maintained, and efficient transportation system. o Ensure regulatory compliance by mandating MUED and vendor practices are consistent with all related codes and regulations; and
o Develop and implement effective emergency management strategies to ensure continuity of services during and after significant events.
• Provide Quality Customer Service
o Promptly deliver requested services with the highest quality of workmanship. o Develop and train staff to effectively communicate with customers. o Expand online self-service opportunities.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 271 • Ensure Employee Effectiveness and Satisfaction
o Recruit and retain high-performing employees.
o Provide resources necessary for employees to perform work tasks safely and efficiently. o Create and maintain a diverse work environment that encourages staff engagement, teamwork, high-performance, and professional satisfaction. o Encourage professional development to prepare City employees for promotion opportunities.
o Emphasize the importance of employee leadership and accountability at all levels. • Establish Effective and Long-term Partnerships
o Promote productive working relationships with other departments, City stakeholders, other municipalities, and regional partners.
o Expand collaboration with education and industry partners on technology projects. • Utilize Innovation
o Leverage new ideas and technology to solve problems and accomplish the City’s mission. o Create and sustain an organizational culture that encourages and supports innovation. o Optimize the use of emerging technologies.
o Improve data collection and promote data-driven decision-making. • Stimulate the Redlands Economy
o Provide a One-Stop Permit Center for the prompt processing of development permits in the City.
o Provide a One-Stop Permit Center to guide developers through Departmental requirements, the Redlands Municipal Code, Measure U, and State regulations. o Enhance Redlands’ economic curb appeal.
• Encourage Environmental Protection
o Collaborate with State, Regional, and Local agencies to promote environmentally sound policies and procedures.
o Continually assess Redlands water sources (Santa Ana River, Mill Creek, and Bunker Hill Basin) to monitor the health of each source.
o Implement the City’s National Pollutant Discharge Elimination System (NPDES) to ensure stormwater discharges comply with the Municipal Separate Storm Sewer Systems (MS4) permits for Capital Improvement Projects, Water Utility Operations, and Wastewater Utility Operations.
• Social Responsibility
o Collaborate with local Universities and Colleges to encourage students to consider a career in municipal government.
o Establish an apprenticeship program to mentor young professionals. o Promote Departmental programs through community outreach at local events (Market Night, Redlands Bicycle Classic, etc.).

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 272 Municipal Utilities and Engineering Department
Engineering Division
Program Description:

The City of Redlands Engineering Division provides quality engineering services for the citizens of Redlands and the private development community. Engineering reviews capital improvement projects and manages the construction of City infrastructure improvement projects, such as street rehabilitation, water, and sewer main replacement, and storm drain construction.

Program Objectives:
• Efficiently deliver Capital Improvement Projects.
• Capitalize on opportunities to improve the effectiveness of services provided to community. • Leverage State and Federal grant funds to implement major capital improvement projects. • Extend and maintain the useful lifespan of public infrastructure in a fiscally responsible and sustainable manner.
• Maintain a CIP noticing program to educate and inform the general public.

Sustainability Efforts:
• Rehabilitate well and booster pumps with energy-efficient units. • Capitalize on building energy consumption and efficiency improvement opportunities. • Reduce pollutants and greenhouse gases by reducing traffic congestion. • Support sustainable transportation such as biking and walking. • Identify grant opportunities and emerging technologies. • Promote the use of LED streetlights and identify opportunities to replace existing HPS streetlights.

Significant Programs:

PARIS
In 2012, the City completed the Pavement Accelerated Repair Implementation Strategy (PARIS), a funding strategy for pavement condition assessment and a pavement management platform that strategically prioritizes investment in road improvements. PARIS resurfaced approximately 440 lane miles of public streets (2/3 of all City streets) from 2013 to 2021 and increased the Redlands Street network pavement condition index from 53 to 82. PARIS was completed in FY 2020-21. The remaining 210 lane miles of City streets will be rehabilitated, and streets rehabilitated through PARIS will be maintained through a new Pavement Management Program (PMP 2020), which was adopted by City Council in April 2020.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 273 MEASURE I & SB1
Measure I is the half-cent countywide sales tax levy approved by the voters to fund local transportation improvements. The City’s annual Measure I allocation was used in its entirety to fund the PARIS program and is expected to be used in the same manner for the PMP.

Additionally, the Road Maintenance and Rehabilitation Account established through Senate Bill 1 (SB1) provides funding to Redlands for not only PMP improvements, but also other local transportation improvements.

DEVELOPMENT IMPACT FEES
Development Impact Fees (DIF) are collected for the construction, expansion, and improvement of arterial streets, freeway interchanges, traffic signals, public facilities, public parks, storm drain facilities, wastewater facilities, solid waste facilities, and water facilities. DIF provides partial funding for the construction of master-planned facilities to accommodate the impacts of new development projects.

WATER CONSERVATION
In 2012-13, Redlands adopted a Water Conservation Rebate Program to incentivize customers to reduce water consumption and contribute to the City’s effort to meet the 2009 Water Conservation Act goals, which required a twenty percent (20%) reduction in water consumption by 2020. The rebate program and successful implementation of additional programs, such as irrigation controller scheduling assistance, a water waste investigation program, have resulted in a citywide residential water consumption rate reduction of approximately 50 gallons per capita per day over the last five years.

Accomplishments in Fiscal Year 2025-26:
• Construction of the PMP 2024 and PMP 2025, completing approximately sixty-eight (68) lane miles of streets out of the remaining 1/3 of the City’s streets (210 lane miles out of 650) after completing the PARIS program.
• Replacement of ten (10) miles of water pipeline.
• Rehabilitation of four (4) miles of sewer pipeline by replacing and slip lining. • Replacement of thirty-one (31) sewer manholes.
• Replacement of four (4) miles of sidewalks.
• Replacement of thirty-two (32) ADA curb ramps.
• Awarded approximately $150,000 in Water Efficiency Rebates. • Design and bidding of WWTP Phase 2 (overall rehabilitation of the plant) is completed. • Construction of the Joint Utilities Laboratory expansion has begun. • Engineering review of land development activities and permit applications. • Construction inspection for capital projects and land development activities.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 274

DEPARTMENT/DIVISION

ENGINEERING

FUND ORGKEY
GENERAL FUND 101400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 380,912 419,615 419,615 391,739 433,759 5002 Salaries: Part-Time 14,884 13,489 13,489 16,786 16,786 5005 Vacancies - - - (16,804) (17,026)
5101 Overtime Salaries 7,232 5,513 17,000 6,000 -
5201 Stand By 748 - 1,000 - -
5202 Holiday Pay 8,310 - 3,500 - -
5203 Bonus 546 498 615 498 498
5204 Accrual Payout 9,137 - 12,860 6,070 6,070
5301 Banked Leave Buy Back 3,204 11,837 11,837 4,357 4,357 5401 Pension Contributions 104,681 122,972 122,972 140,978 143,533 5501 Social Security/Medicare 31,529 32,826 32,826 39,928 40,577 5601 Deferred Compensation 5,357 5,192 5,691 6,364 6,364 5701 Health/Dental Insurance 61,504 73,911 73,911 77,403 77,589 5702 Workers' Comp Insurance 43,951 45,480 45,480 53,081 54,483 5703 Disability Insurance 1,962 2,084 2,084 2,932 2,998 5704 Unemployment Insurance 359 2,083 2,083 2,461 2,461 5705 Life Insurance 257 258 258 314 314
5801 Vehicle Allowance - - - 600 600
5802 Eyecare Reimbursement 3,261 1,230 1,390 1,461 1,461 5803 Clothing Allowance 803 645 1,210 822 822
5804 Uniform Rental 61 - 46 - -
5903 Other Taxable Benefits 303 293 492 986 986
5905 Employee Wellness Program 942 - 510 - -

TOTAL SALARIES AND

BENEFITS
679,941 737,926 768,870 735,976 776,630

SERVICES
6005 License & Permits 9,547 540 1,000 540 540
6101 Architect & Engineer 157,324 77,285 95,535 - -
6102 Legal Services 4,946 - 44,863 - -
6106 Other Professional Services 5,483 200,000 200,000 200,000 200,000 6304 Telephone 908 2,800 2,800 4,000 4,000
6401 Meeting & Prof Development - 7,500 7,500 7,500 7,500 6402 Travel
Expense/Reimbursement
865 1,600 1,600 1,600 1,600
6403 Training 1,350 7,500 7,500 7,500 7,500
6601 Postage 165 1,000 1,000 1,000 1,000
6708 Special Program Expenditures 1,100 - 5,000 - -
6710 Special Contractual Services 16,710 - 9,264 - -
6802 Info Tech Service Charges 76,156 67,090 67,090 108,794 112,421 6803 City Garage Charges 31,751 33,077 39,799 27,070 24,540 6901 Printing and Binding 410 4,590 4,590 3,000 3,000
6902 Advertising 8,458 3,000 3,000 3,000 3,000
6906 Office Equip & Furn Rent 1,659 - - - -
6909 Subscriptions & Memberships 1,126 2,100 2,100 2,100 2,100 6912 Reimbursed Expenditures 65,950 214,107 214,107 - - TOTAL SERVICES 383,907 622,189 706,748 366,104 367,201

SUPPLIES
7001 Books & Supplies 43 2,200 2,200 2,200 2,200
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 275

DEPARTMENT/DIVISION

ENGINEERING

FUND ORGKEY
GENERAL FUND 101400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7002 Office Supplies 1,395 3,800 3,800 2,200 2,200
7003 Awards/Recognition Prgm - 3,000 3,000 3,000 3,000
7004 Uniform/Safety Clothing - 1,600 1,600 1,600 1,600
7101 Office Equipment & Furniture - 1,000 1,000 1,000 1,000 7102 Small Tools & Equipment - 500 500 500 500
7206 Vehicle Maintenance 5,995 - 6,009 6,009 6,900
7208 Repair/Maintenance Supplies 88 - - - -
7211 Computer Components 1,069 3,600 3,600 3,600 3,600
7807 Food 454 - 543 - -
7810 Special Departmental Supplies - 15,000 15,000 - -
7901 Non-Capital Expenditures 4,751 - - - -
TOTAL SUPPLIES 13,795 30,700 37,252 20,109 21,000

FIXED ASSETS
8403 Street Construction 714,041 529,406 529,406 - -
8405 Other Infrastucture 64,707 - - - -
8801 Capital Lease (2,376) 88,998 82,892 82,218 82,218
TOTAL FIXED ASSETS 776,371 618,404 612,298 82,218 82,218

DEBT SERVICE
9002 Principal - Lease 81,181 - - - -
9102 Interest - Lease 10,365 - - - -
TOTAL DEBT SERVICE 91,546 - - - -
DIVISION TOTAL 1,945,560 2,009,219 2,125,168 1,204,407 1,247,049 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 276

DEPARTMENT SUMMARY
FUND

GENERAL FUND
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
ENGINEERING 1,945,560 2,009,219 2,125,168 1,204,407 1,247,049 DEPARTMENT TOTAL 1,945,560 2,009,219 2,125,168 1,204,407 1,247,049 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 277

DEPARTMENT/DIVISION

ENGINEERING GRANTS

FUND ORGKEY
GRANTS 200400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 15,200 15,200 - -
6912 Reimbursed Expenditures (68,299) (199,317) (199,317) - - TOTAL SERVICES (68,299) (184,117) (184,117) - -

SUPPLIES
7901 Non-Capital Expenditures 5,316 129,255 129,255 - - TOTAL SUPPLIES 5,316 129,255 129,255 - -

FIXED ASSETS
8301 Construction In Progress 23,429 - - - -
8501 Other Betterments/Improv 570,399 2,070,097 2,070,097 - - TOTAL FIXED ASSETS 593,828 2,070,097 2,070,097 - -
DIVISION TOTAL 530,845 2,015,235 2,015,235 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 278

DEPARTMENT SUMMARY
FUND
GRANTS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
ENGINEERING GRANTS 530,845 2,015,235 2,015,235 - -
DEPARTMENT TOTAL 530,845 2,015,235 2,015,235 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 279

DEPARTMENT/DIVISION
MEASURE I (2010)

FUND ORGKEY
MEASURE I 2010 210400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge 8,197 8,484 8,484 8,759 9,137 TOTAL SERVICES 8,197 8,484 8,484 8,759 9,137
DIVISION TOTAL 8,197 8,484 8,484 8,759 9,137
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 280

DEPARTMENT SUMMARY
FUND
MEASURE I 2010
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
MEASURE I (2010) 8,197 8,484 8,484 8,759 9,137
DEPARTMENT TOTAL 8,197 8,484 8,484 8,759 9,137
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 281

DEPARTMENT/DIVISION

PAVEMENT

ACCELERATED REPAIR

IMPLEMENTATION

STRATEGY (PARIS)

FUND ORGKEY
PARIS 211400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 416,000 454,674 454,674 - -
5002 Salaries: Part-Time - - 572 - -
5101 Overtime Salaries 7,029 3,750 19,000 - -
5201 Stand By 748 - 1,000 - -
5202 Holiday Pay 5,723 - 2,536 - -
5203 Bonus 262 249 300 - -
5204 Accrual Payout 12,093 - 8,825 - -
5301 Banked Leave Buy Back 4,856 12,006 12,006 - -
5401 Pension Contributions 117,103 133,999 133,999 - -
5501 Social Security/Medicare 33,163 34,589 34,589 - -
5601 Deferred Compensation 11,800 10,148 12,048 - -
5701 Health/Dental Insurance 60,592 72,739 72,739 - -
5703 Disability Insurance 1,343 1,728 1,728 - -
5704 Unemployment Insurance 307 1,779 1,865 - -
5705 Life Insurance 253 258 258 - -
5801 Vehicle Allowance - - - - -
5802 Eyecare Reimbursement - 1,230 1,230 - -
5803 Clothing Allowance 233 525 855 - -
5804 Uniform Rental 36 - 32 - -
5903 Other Taxable Benefits 225 353 373 - -

TOTAL SALARIES AND

BENEFITS
671,765 728,027 758,628 - -

SERVICES
6106 Other Professional Services - 100,000 95,593 400,000 - 6401 Meeting & Prof Development - - 28 - -
6804 General Govt Service Charge 131,439 136,039 136,039 140,447 146,514 6901 Printing and Binding 410 1,590 1,590 2,000 2,000
TOTAL SERVICES 131,849 237,629 233,250 542,447 148,514

SUPPLIES
7810 Special Departmental Supplies 8,043 15,411 15,411 3,900 3,900 7901 Non-Capital Expenditures - 1,520 1,520 - -
TOTAL SUPPLIES 8,043 16,931 16,931 3,900 3,900
DIVISION TOTAL 811,656 982,587 1,008,809 546,347 152,414 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 282

DEPARTMENT/DIVISION

FUND ORGKEY
PARIS 211910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services - 100,000 100,000 - -
6710 Special Contractual Services - 40,000 40,000 - -
6901 Printing and Binding - 2,000 2,000 - -
6902 Advertising - - - - -
TOTAL SERVICES - 142,000 142,000 - -

SUPPLIES
7901 Non-Capital Expenditures 292,698 - - - -
TOTAL SUPPLIES 292,698 - - - -

FIXED ASSETS
8403 Street Construction 3,629,787 5,564,574 5,564,574 3,000,000 3,500,000 8501 Other Betterments/Improv 1,105,431 500,000 500,000 500,000 500,000 TOTAL FIXED ASSETS 4,735,218 6,064,574 6,064,574 3,500,000 4,000,000 DIVISION TOTAL 5,027,916 6,206,574 6,206,574 3,500,000 4,000,000

PARIS PROJECTS/GRANTS
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 283

DEPARTMENT SUMMARY
FUND
PARIS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

PAVEMENT ACCELERATED

REPAIR IMPLEMENTATION

STRATEGY (PARIS)
811,656 982,587 1,008,809 546,347 152,414
DEPARMENT TOTAL 5,839,573 7,189,161 7,215,383 4,046,347 4,152,414 PARIS PROJECTS/GRANTS 5,027,916 6,206,574 6,206,574 3,500,000 4,000,000 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 284

DEPARTMENT/DIVISION

TRANSPORTATION

DEVELOPMENT ACT

FUND ORGKEY
TRANSPORTATION DEVELOPMENT ACT 241400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 50,000 50,000 - -
6912 Reimbursed Expenditures (525) (191,775) (191,775) - - TOTAL SERVICES (525) (141,775) (141,775) - -

FIXED ASSETS
8301 Construction In Progress 3,500 - - - -
8405 Other Infrastucture 46,340 1,228,500 1,228,500 - - TOTAL FIXED ASSETS 49,840 1,228,500 1,228,500 - -
DIVISION TOTAL 49,315 1,086,725 1,086,725 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 285

DEPARTMENT SUMMARY
FUND

TRANSPORTATION DEVELOPMENT ACT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

TRANSPORTATION

DEVELOPMENT ACT
49,315 1,086,725 1,086,725 - -
DEPARTMENT TOTAL 49,315 1,086,725 1,086,725 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 286

DEPARTMENT/DIVISION

PARK & OPEN SPACE

DEVELOPMENT

FUND ORGKEY
PARK & OPEN SPACE FACILITIES 250400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6004 Bank/Collection Agent Fees 3,263 3,500 3,500 3,500 3,500 6804 General Govt Service Charge 8,973 10,000 10,000 12,229 15,126 TOTAL SERVICES 12,236 13,500 13,500 15,729 18,626

FIXED ASSETS
8501 Other Betterments/Improv - 1,255,660 755,660 375,000 - TOTAL FIXED ASSETS - 1,255,660 755,660 375,000 -

DEBT SERVICE
9001 Principal 68,988 71,162 71,162 73,403 75,715
9101 Interest 33,172 30,964 30,964 28,687 26,339
TOTAL DEBT SERVICE 102,160 102,126 102,126 102,091 102,054 DIVISION TOTAL 114,396 1,371,286 871,286 492,820 120,680 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 287

DEPARTMENT SUMMARY
FUND

PARK & OPEN SPACE FACILITIES
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

PARK & OPEN SPACE

DEVELOPMENT
114,396 1,371,286 871,286 492,820 120,680
DEPARTMENT TOTAL 114,396 1,371,286 871,286 492,820 120,680 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 288

DEPARTMENT/DIVISION

PUBLIC FACILITY

DEVELOPMENT

FUND ORGKEY
PUBLIC FACILITY DEVELOPMENT 251400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge 12,574 7,200 7,200 38,766 46,246 TOTAL SERVICES 12,574 7,200 7,200 38,766 46,246

FIXED ASSETS
8503 Building Const/Improv - - - 600,000 -
TOTAL FIXED ASSETS - - - 600,000 -
DIVISION TOTAL 12,574 7,200 7,200 638,766 46,246
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 289

DEPARTMENT SUMMARY
FUND

PUBLIC FACILITY DEVELOPMENT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

PUBLIC FACILITY

DEVELOPMENT
12,574 7,200 7,200 638,766 46,246
DEPARTMENT TOTAL 12,574 7,200 7,200 638,766 46,246
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 290

DEPARTMENT/DIVISION

ARTERIAL STREET

CONSTRUCTION

FUND ORGKEY
ARTERIAL STREET CONSTRUCTION 252400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 905 15,298 15,298 - -
6804 General Govt Service Charge 5,957 4,400 4,400 21,674 2,447 TOTAL SERVICES 6,862 19,698 19,698 21,674 2,447

FIXED ASSETS
8301 Construction In Progress 71,666 - - - -
8403 Street Construction - - - - 1,500,000
8501 Other Betterments/Improv - 6,562,131 4,400,000 3,350,000 - TOTAL FIXED ASSETS 71,666 6,562,131 4,400,000 3,350,000 1,500,000 DIVISION TOTAL 78,528 6,581,829 4,419,698 3,371,674 1,502,447 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 291

DEPARTMENT SUMMARY
FUND

ARTERIAL STREET CONSTRUCTION
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

ARTERIAL STREET

CONSTRUCTION
78,528 6,581,829 4,419,698 3,371,674 1,502,447
DEPARTMENT TOTAL 78,528 6,581,829 4,419,698 3,371,674 1,502,447 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 292

DEPARTMENT/DIVISION

TRAFFIC SIGNALS

FUND ORGKEY
TRAFFIC SIGNALS 253400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge 363 260 260 1,324 1,493 6912 Reimbursed Expenditures 2,874 176,986 176,986 - -
TOTAL SERVICES 3,237 177,246 177,246 1,324 1,493

FIXED ASSETS
8501 Other Betterments/Improv - 575,000 - 240,000 1,666,000 TOTAL FIXED ASSETS - 575,000 - 240,000 1,666,000
DIVISION TOTAL 3,237 752,246 177,246 241,324 1,667,493
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 293

DEPARTMENT SUMMARY
FUND

TRAFFIC SIGNALS
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
TRAFFIC SIGNALS 3,237 752,246 177,246 241,324 1,667,493 DEPARTMENT TOTAL 3,237 752,246 177,246 241,324 1,667,493 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 294

DEPARTMENT/DIVISION

FREEWAY

INTERCHANGES

FUND ORGKEY
FREEWAY INTERCHANGES 254400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 15,727 - 427 - -
6804 General Govt Service Charge 3,512 2,200 2,200 12,770 14,402 TOTAL SERVICES 19,238 2,200 2,627 12,770 14,402

FIXED ASSETS
8301 Construction In Progress 99,155 - - - -
8403 Street Construction - - 23,708 - -
TOTAL FIXED ASSETS 99,155 - 23,708 - -
DIVISION TOTAL 118,394 2,200 26,336 12,770 14,402
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 295

DEPARTMENT SUMMARY
FUND

FREEWAY INTERCHANGES
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
FREEWAY INTERCHANGES 118,394 2,200 26,336 12,770 14,402 DEPARTMENT TOTAL 118,394 2,200 26,336 12,770 14,402
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 296

DEPARTMENT/DIVISION

STORM DRAIN

CONSTRUCTION

FUND ORGKEY
STORM DRAIN CONSTRUCTION 405400
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6708 Special Program Expenditures - 2,400 2,400 2,400 2,400 6804 General Govt Service Charge 3,400 1,500 1,500 9,448 11,123 TOTAL SERVICES 3,400 3,900 3,900 11,848 13,523

FIXED ASSETS
8404 Storm Drain Construction - 83,094 83,094 500,000 - TOTAL FIXED ASSETS - 83,094 83,094 500,000 -
DIVISION TOTAL 3,400 86,994 86,994 511,848 13,523
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 297

DEPARTMENT SUMMARY
FUND

STORM DRAIN CONSTRUCTION
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

STORM DRAIN

CONSTRUCTION
3,400 86,994 86,994 511,848 13,523
DEPARTMENT TOTAL 3,400 86,994 86,994 511,848 13,523
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 298 Municipal Utilities and Engineering Department
Water Utility Division
Potable Water Utility Program Description:

The water utility produces and distributes water through approximately 23,500 water service lines to approximately 77,800 customers within its service area. Generally, the service area includes the City of Redlands, a small portion of the City of Loma Linda, and unincorporated areas of the County (Mentone and Crafton areas), as well as the San Bernardino County Donut Hole area.

The City’s average daily water consumption is 20 million gallons per day (mgd), peaking at 35 mgd in the summer. The average consumption per capita is approximately 170 gallons per day.

The water utility operates and maintains approximately 384 miles of potable pipelines, within seven pressure zones and two sub-zones, and provides a maximum storage capacity of 54.5 million gallons. Water division employees operate approximately 3,500 fire hydrants, eighteen (18) reservoirs, two surface water treatment plants, four engineered blending sites, twenty-two (22) active potable groundwater production wells, and fourteen (14) booster station facilities. The City also has two interconnections established with Loma Linda and Western Heights, which allow for supplemental water delivery when needed.

The water budget includes all expenses required to operate and maintain the entire system, including production, treatment, and distribution; laboratory operations; regulatory compliance; utility billing services; and water conservation.

Program Objectives:
• Provide a safe, reliable drinking water supply that meets or exceeds all water quality requirements.
• Deliver water in a fiscally responsible manner.
• Publish an annual Consumer Confidence Report to educate the public about drinking water quality and water sources.
• Promote water conservation awareness and practices.

Accomplishments in Fiscal Year 2025-26:
• Replaced approximately nine (9) miles of aging water distribution mainlines. • Received the 2023 and 2024 Climate Impact Award and $104,756 of incentive rebates for participation in the energy demand response program.
• Rehabilitated five (5) potable wells & four (4) booster pumps.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 299

DEPARTMENT/DIVISION

WATER-OPERATIONS

FUND ORGKEY
WATER 501900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 4,561,218 6,037,939 6,037,939 6,704,990 7,230,429 5002 Salaries: Part-Time 3,189 2,891 8,780 3,597 3,597
5101 Overtime Salaries 230,424 235,000 240,300 245,000 255,000 5102 Reimbursable Overtime 17,444 - 19,479 - -
5201 Stand By 124,207 120,000 120,000 120,000 120,000
5202 Holiday Pay 133,018 - 68,823 2,076 2,076
5203 Bonus 7,341 2,988 9,988 4,164 4,164
5204 Accrual Payout 106,955 - 82,502 39,689 39,689
5301 Banked Leave Buy Back 65,069 101,643 101,643 58,808 58,808 5401 Pension Contributions 1,327,291 1,427,480 1,427,480 1,676,164 1,711,906 5402 GASB68 Pension Expense 129,697 - - - -
5501 Social Security/Medicare 389,032 371,978 371,978 456,708 465,770 5601 Deferred Compensation 51,855 28,982 54,981 56,516 56,677 5701 Health/Dental Insurance 957,650 1,037,406 1,037,406 1,201,315 1,203,787 5702 Workers' Comp Insurance 214,991 222,471 222,471 181,822 186,623 5703 Disability Insurance 41,305 44,999 44,999 59,192 60,560 5704 Unemployment Insurance 4,248 24,890 24,890 29,334 29,334 5705 Life Insurance 3,548 3,604 3,604 4,257 4,257
5801 Vehicle Allowance 1,680 - 840 5,460 5,460
5802 Eyecare Reimbursement 6,287 17,160 17,160 19,914 19,914 5803 Clothing Allowance 16,423 15,990 15,990 19,399 19,399 5804 Uniform Rental 5,547 - 3,095 - -
5901 Compensated Absences
Expense
61,548 - - - -
5903 Other Taxable Benefits 3,999 2,003 3,121 13,728 13,728 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
8,463,967 9,697,424 9,917,468 10,902,134 11,491,178

SERVICES
6005 License & Permits 155,661 190,500 190,500 188,000 188,000 6006 Taxes 4,663 7,500 7,500 8,000 8,000
6007 Penalties and Interest 6,836 200 200 200 200
6008 State Mandated Fees 2,361 6,000 6,000 6,500 6,500
6102 Legal Services 238,428 - 30,000 - -
6105 Medical/Physicals 2,560 2,500 2,630 2,500 2,500
6106 Other Professional Services 172,799 533,929 533,929 248,000 348,000 6301 Water Wastewater Refuse 17,045 21,842 21,842 15,000 15,000 6302 City Water 579,084 500,000 500,000 600,000 600,000 6304 Telephone 70,483 68,500 68,500 68,500 68,500
6306 Water Recharge 255,700 250,000 250,000 250,000 250,000 6307 Electricity & Gas 622,210 700,000 700,000 700,000 700,000 6308 Elec Service-Facility Ops 2,446,213 2,491,788 2,491,788 2,500,000 2,600,000 6310 Gas Service - Facility Ops 756 1,103 1,103 1,150 1,300 6313 Service for Facility Ops 3,165 85,220 85,220 85,220 85,220 6401 Meeting & Prof Development 17,895 5,500 7,000 5,500 5,500 6402 Travel
Expense/Reimbursement
13,377 7,000 7,000 7,000 7,000
6403 Training 36,567 46,850 46,850 56,000 56,000
6505 Retiree Health Insurance 490,644 92,943 490,000 490,000 490,000 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 300

DEPARTMENT/DIVISION

WATER-OPERATIONS

FUND ORGKEY
WATER 501900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6601 Postage 9,200 17,000 17,000 30,500 30,500
6703 Software Support/Development 67,575 209,000 209,000 245,000 330,000 6706 Energy for Treatment 72,873 77,175 77,175 77,175 77,175 6707 Stock Assessment 1,122,879 1,365,000 1,365,000 1,250,000 1,250,000 6708 Special Program Expenditures 23,376 28,520 28,520 26,900 26,900 6709 Conservation Rebate 57,815 80,000 80,000 80,000 80,000 6710 Special Contractual Services 1,152,069 2,097,842 2,137,842 1,855,000 1,760,000 6712 Landfill Tipping Charges 179 1,874 1,874 1,874 1,874 6801 City Attorney Legal Service 41,533 41,930 41,930 43,344 43,354 6802 Info Tech Service Charges 787,398 729,374 829,374 1,110,000 1,137,000 6803 City Garage Charges 1,410,916 1,469,864 1,447,241 1,036,708 939,820 6804 General Govt Service Charge 695,090 719,418 719,418 1,142,727 1,174,813 6805 Billing Services 650,000 650,000 825,000 1,000,000 1,085,000 6901 Printing and Binding 17,704 5,397 5,397 15,000 15,000 6902 Advertising 5,961 5,000 5,000 5,000 5,000
6903 Janitorial Services 15,962 70,868 70,868 60,000 60,000 6904 Land and Building Rent 3,267 5,513 5,513 5,500 5,500 6905 Clothing and Linen Rent 28,951 42,500 42,500 42,500 42,500 6906 Office Equip & Furn Rent 3,318 5,775 5,775 5,775 5,775 6908 Other Rentals 35,397 81,121 81,121 85,500 85,500
6909 Subscriptions & Memberships 13,694 14,325 14,325 14,500 14,500 6910 Labor 7,925 5,071 5,071 - -
6911 Bad Debt Expense 15,643 - - - -
6914 Depreciation Expense 4,620,140 - - - -
6916 Lease Amortization 477,211 - - - -
TOTAL SERVICES 16,472,523 12,733,940 13,455,004 13,364,573 13,601,931

SUPPLIES
7001 Books & Supplies - 1,500 1,500 1,500 1,500
7002 Office Supplies 9,373 25,500 25,500 12,750 12,750
7003 Awards/Recognition Prgm 214 10,000 10,000 10,000 10,000 7004 Uniform/Safety Clothing 19,527 35,000 35,000 29,000 29,000 7101 Office Equipment & Furniture 99,608 28,753 28,753 20,000 20,000 7102 Small Tools & Equipment 37,807 58,000 58,000 42,500 40,500 7204 Building/Grounds Maintenance 76,953 117,500 150,000 168,000 127,000 7205 Machinery & Equip. Maint. 57,147 114,045 114,045 158,250 158,250 7206 Vehicle Maintenance 12,950 - 15,000 25,000 25,000
7207 Street Repairs 345,818 540,473 540,473 300,000 300,000 7208 Repair/Maintenance Supplies 1,187,389 2,213,569 2,213,569 2,374,000 2,457,700 7209 Janitorial Supplies 3,810 6,500 6,500 6,500 6,500
7211 Computer Components 6,409 20,000 20,000 15,000 15,000 7213 Motor Vehicle Supplies 13,205 105,000 105,000 25,000 25,000 7802 Purchased Water 145,554 294,770 333,183 245,000 245,000 7803 Chemical & Lab Supplies 604,484 651,500 651,500 708,500 742,000 7807 Food 4,965 4,000 4,000 4,000 4,000
7808 Water Meters & Fittings 375,076 500,000 500,000 500,000 500,000 7810 Special Departmental Supplies 46,461 65,911 50,000 51,000 40,000 7901 Non-Capital Expenditures 3,785 - - - -
TOTAL SUPPLIES 3,050,535 4,792,020 4,862,022 4,696,000 4,759,200 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 301

DEPARTMENT/DIVISION

WATER-OPERATIONS

FUND ORGKEY
WATER 501900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

FIXED ASSETS
8501 Other Betterments/Improv - 500,000 500,000 - -
8503 Building Const/Improv 12,985 - - - -
8704 Motor Vehicles 285,865 388,500 388,500 370,000 388,500 8705 Laboratory Equipment 42,112 65,000 65,000 - -
8706 All Other Equipment 413,891 - - - -
8801 Capital Lease 12,012 217,651 423,568 582,752 601,676 8999 Capital Expenditure Offset (736,139) - - - -
TOTAL FIXED ASSETS 30,725 1,171,151 1,377,068 952,752 990,176

DEBT SERVICE
9102 Interest - Lease 40,984 - - - -
TOTAL DEBT SERVICE 40,984 - - - -
DIVISION TOTAL 28,058,735 28,394,535 29,611,562 29,915,459 30,842,485 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 302

DEPARTMENT/DIVISION

WATER-PROJECTS AND
GRANTS

FUND ORGKEY
WATER 501910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6005 License & Permits 2,966 - - - -
6106 Other Professional Services 536,690 714,268 781,093 425,000 1,200,000 TOTAL SERVICES 539,656 714,268 781,093 425,000 1,200,000

SUPPLIES
7808 Water Meters & Fittings 4,219,697 - - - -
7901 Non-Capital Expenditures 219,235 - - - -
TOTAL SUPPLIES 4,438,932 - - - -

FIXED ASSETS
8301 Construction In Progress 8,291,095 - - - -
8402 Water Infrastructure 238,951 12,328,875 12,328,875 5,500,000 9,000,000 8501 Other Betterments/Improv - 12,628,730 8,903,730 6,065,000 1,500,000 8503 Building Const/Improv - - 10,885 - -
8706 All Other Equipment - 4,212,753 3,408,328 - -
8999 Capital Expenditure Offset (8,526,734) - - - -
TOTAL FIXED ASSETS 3,312 29,170,358 24,651,818 11,565,000 10,500,000 DIVISION TOTAL 4,981,900 29,884,626 25,432,911 11,990,000 11,700,000 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 303

DEPARTMENT/DIVISION

WATER DEBT SERVICE

FUND ORGKEY
WATER 501930
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6001 Fiscal Agent Fees 135 90 90 90 90
TOTAL SERVICES 135 90 90 90 90

DEBT SERVICE
9001 Principal - 898,165 898,165 728,306 552,226
9101 Interest 160,143 138,669 138,669 116,669 100,890
TOTAL DEBT SERVICE 160,143 1,036,835 1,036,835 844,976 653,116 DIVISION TOTAL 160,278 1,036,925 1,036,925 845,066 653,206 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 304

DEPARTMENT SUMMARY
FUND
WATER
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
WATER-OPERATIONS 28,058,735 28,394,535 29,611,562 29,915,459 30,842,485

WATER-PROJECTS AND
GRANTS
4,981,900 29,884,626 25,432,911 11,990,000 11,700,000
WATER DEBT SERVICE 160,278 1,036,925 1,036,925 845,066 653,206 DEPARTMENT TOTAL 33,200,912 59,316,085 56,081,398 42,750,525 43,195,691 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 305

DEPARTMENT/DIVISION

SOURCE ACQUISITION

FUND ORGKEY
SOURCE ACQUISITION 508900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge - 1,600 - - -
TOTAL SERVICES - 1,600 - - -
DIVISION TOTAL - 1,600 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 306

DEPARTMENT SUMMARY
FUND

SOURCE ACQUISITION
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
SOURCE ACQUISITION - 1,600 - - -
DEPARTMENT TOTAL - 1,600 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 307

DEPARTMENT/DIVISION

WATER CAPITAL

IMPROVEMENT

FUND ORGKEY
WATER CAPITAL IMPROVEMENT 509920
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge - 13,000 - - -
TOTAL SERVICES - 13,000 - - -
DIVISION TOTAL - 13,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 308

DEPARTMENT SUMMARY
FUND

WATER CAPITAL IMPROVEMENT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

WATER CAPITAL

IMPROVEMENT
- 13,000 - - -
DEPARTMENT TOTAL - 13,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 309 Municipal Utilities and Engineering Department
Wastewater Division
Program Description:

The wastewater utility collects municipal wastewater from approximately 18,000 customers within the service area. Generally, the service area includes the City of Redlands, unincorporated areas of the county (Mentone and Crafton areas), and the San Bernardino County Donut Hole area.

The wastewater utility includes the operation and maintenance of approximately 250 miles of sewer mainline, one sewer lift station, and a wastewater treatment plant capable of treating approximately 9.5 million gallons per day (mgd) of influent raw water. The wastewater treatment plant, originally constructed in 1962, includes a water quality laboratory where routine regulatory compliance tests are performed. In 2004, the plant became the largest membrane bioreactor facility in the West Coast of the United States, producing an average of 4.0 million gallons per day (mgd) of high-quality tertiary effluent (reclaimed water). Today, the plant continues to process secondary wastewater, directing it to percolation ponds to recharge Bunker Hill Basin B, and treats tertiary wastewater for recycling purposes, particularly for irrigation and cooling tower water for a local generation plant.

The wastewater budget includes all expenses required to operate and maintain the entire system, including system maintenance, wastewater treatment and disposal, recycled water system operation and maintenance, laboratory operations, and wastewater regulatory compliance.

Program Objectives:
• Provide reliable wastewater collection and treatment services in a fiscally responsible manner. • Proactively inspect collection system facilities to identify and plan wastewater system rehabilitation and replacement capital projects.
• Clean and maintain the entire wastewater collection system mainlines every three (3) years. • Maintain a 24/7 Emergency Response Team to reduce the potential for Sanitary Sewer System Overflows.
• Educate residents and businesses about problems associated with fats, oils, and grease (FOG) discharges into the wastewater collection and treatment system and implement a FOG reduction program.
• Establish a regulatory compliance program and pretreatment program for significant industrial dischargers.
• Meet or exceed wastewater treatment and discharge requirements, and recycled water service regulatory requirements.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 310 Municipal Utilities and Engineering Department
Accomplishments in Fiscal Year 2025-26
Wastewater Treatment Plant:
• Replaced eight (8) variable frequency drives (VFD) throughout WWTP. • Completed the WWTP Enhancement Project including:
o Refurbishment of the four (4) Primary clarifiers
o Refurbishment Secondary clarifier #2
o Replacement of the biological HACH Real Time Control System (RTC) o SCADA System Upgrade
o Degas pond cleanup
• LF/WWTP shared waste gas flare improvement project
Wastewater Collections:
• Root Control Program – 5.00 miles of sewer pipe were treated for root prevention. • Roach Control Program - 2,434 sewer manholes were treated with Latex-Insecticidal Coating. • Fifty-five (55) sewer main spot repairs were made to the Collection System because of sewer inspections.
• Adjusted sixty-five (65) sewer manhole frames and covers. • Addition of one (1) Wastewater Collection System Worker. • Cleaned over 184.5 miles of sewer pipe.
• Inspected over sixty (58) miles of sewer pipe.

Joint Utilities Laboratory
• Completed amendment to the laboratory's accreditation in accordance with the Method Update Rules 2021.
• Successfully passed all annual proficiency testing for water pollutants and water quality (Wastewater and Drinking Water).
• Successfully completed the transition into TNI (The NELAC Institute) standards implementation mandated by the state.
• Acquired additional laboratory equipment to add additional analytes to the laboratory's accreditation, reducing dependency on third-party laboratories. • Successfully completed the preliminary design for the Laboratory Expansion Project. • Successfully initiated construction of Phase 1 of the Laboratory Expansion Project. • Updated and finalized the Lab Quality Manual.
• Met and successfully completed all external audit requirements for 2024.

City of Redlands FY2027 and FY2028 Proposed Biennial Budget 311

DEPARTMENT/DIVISION

WASTEWATER SERVICE

FUND ORGKEY
WASTEWATER SERVICE 521900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 2,679,472 3,244,989 3,244,989 3,453,528 3,744,542 5002 Salaries: Part-Time 3,189 2,891 3,863 3,597 3,597
5101 Overtime Salaries 158,474 157,500 200,000 160,000 168,000 5102 Reimbursable Overtime 17,444 - 19,479 20,000 22,000 5201 Stand By 103,604 105,000 105,000 110,250 115,763
5202 Holiday Pay 102,858 - 55,733 2,076 2,076
5203 Bonus 1,390 996 1,496 1,389 1,389
5204 Accrual Payout 79,836 - 103,326 16,128 16,128
5301 Banked Leave Buy Back 47,698 47,101 57,101 34,389 34,389 5401 Pension Contributions 796,650 790,576 790,576 901,813 917,350 5402 GASB68 Pension Expense (479,928) - - - -
5501 Social Security/Medicare 237,801 206,319 206,319 246,378 250,191 5601 Deferred Compensation 19,530 12,554 14,682 24,780 24,828 5701 Health/Dental Insurance 538,273 515,077 515,077 592,590 594,132 5702 Workers' Comp Insurance 99,460 102,920 102,920 87,032 89,330 5703 Disability Insurance 26,730 24,729 24,729 32,163 32,775 5704 Unemployment Insurance 2,390 13,172 13,172 15,307 15,307 5705 Life Insurance 2,066 1,903 1,903 2,217 2,217
5801 Vehicle Allowance 480 - 240 1,800 1,800
5802 Eyecare Reimbursement 4,713 9,060 9,060 10,401 10,401 5803 Clothing Allowance 9,918 8,265 10,264 9,652 9,652
5804 Uniform Rental 3,224 - 1,697 - -
5901 Compensated Absences
Expense
36,758 - - - -
5903 Other Taxable Benefits 4,972 2,873 2,873 9,360 9,360 5904 Tuition Reimbursement - - - - -

TOTAL SALARIES AND

BENEFITS
4,497,000 5,245,925 5,484,498 5,734,851 6,065,226

SERVICES
6005 License & Permits 107,125 180,500 180,500 178,000 186,900 6007 Penalties and Interest - - 2,032 - -
6105 Medical/Physicals 1,620 1,650 1,650 1,800 1,890
6106 Other Professional Services 192,873 399,656 450,000 260,000 273,000 6301 Water Wastewater Refuse 49,304 30,000 50,000 30,000 31,500 6304 Telephone 20,909 18,000 18,000 18,000 18,900
6308 Elec Service-Facility Ops 1,248,617 1,250,000 1,250,000 1,250,000 1,312,500 6401 Meeting & Prof Development 9,866 9,000 9,000 9,000 9,450 6402 Travel
Expense/Reimbursement
9,156 8,100 8,100 8,100 8,505
6403 Training 33,796 40,000 40,000 49,000 51,450
6505 Retiree Health Insurance 197,719 441,000 113,956 117,375 120,896 6601 Postage 33 500 500 500 525
6703 Software Support/Development 28,830 100,000 100,000 263,000 128,000 6708 Special Program Expenditures 4,457 5,500 5,500 9,000 9,450 6710 Special Contractual Services 1,538,806 2,486,047 2,526,047 2,550,500 2,583,000 6801 City Attorney Legal Service 12,460 12,579 12,579 13,003 13,009 6802 Info Tech Service Charges 167,543 147,597 197,597 359,400 371,380 6803 City Garage Charges 494,118 514,762 450,454 364,348 330,297 6804 General Govt Service Charge 666,786 690,124 690,124 1,112,484 1,143,263 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 312

DEPARTMENT/DIVISION

WASTEWATER SERVICE

FUND ORGKEY
WASTEWATER SERVICE 521900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6805 Billing Services 250,000 250,000 350,000 375,000 440,000 6901 Printing and Binding 978 3,897 3,897 3,500 3,675
6902 Advertising 2,601 2,000 2,500 2,000 2,100
6903 Janitorial Services 26,813 75,182 75,182 53,700 56,385 6905 Clothing and Linen Rent 32,678 38,000 38,000 39,000 40,950 6906 Office Equip & Furn Rent 1,659 3,300 3,300 5,500 5,775 6908 Other Rentals 32,771 62,121 62,121 80,000 84,000
6909 Subscriptions & Memberships 11,778 19,000 19,000 19,000 19,950 6911 Bad Debt Expense 5,510 - - - -
6914 Depreciation Expense 2,749,468 - - - -
6916 Lease Amortization 141,272 - - 5,000 5,000
TOTAL SERVICES 8,039,546 6,788,515 6,660,039 7,176,210 7,251,750

SUPPLIES
7001 Books & Supplies - 1,500 1,500 1,000 1,050
7002 Office Supplies 9,915 35,000 35,000 17,500 18,375
7003 Awards/Recognition Prgm 214 6,000 6,000 7,000 7,350 7004 Uniform/Safety Clothing 16,964 30,000 30,000 30,000 31,500 7101 Office Equipment & Furniture 284 4,000 4,000 5,000 5,250 7102 Small Tools & Equipment 29,065 41,500 41,500 46,000 58,800 7204 Building/Grounds Maintenance 68,866 106,000 106,000 91,000 121,800 7205 Machinery & Equip. Maint. 342,732 378,454 618,454 536,000 562,800 7206 Vehicle Maintenance 4,609 9,000 9,000 9,000 9,000
7208 Repair/Maintenance Supplies 634,047 983,261 983,261 1,218,500 1,340,350 7209 Janitorial Supplies 1,342 7,000 7,000 7,000 7,000
7211 Computer Components 3,489 14,000 14,000 12,250 12,862 7213 Motor Vehicle Supplies - 10,000 10,000 - -
7803 Chemical & Lab Supplies 910,484 1,252,500 1,252,500 1,252,000 1,524,599 7804 Medical Supplies - 500 500 500 500
7807 Food 2,508 4,500 5,500 4,500 4,500
7810 Special Departmental Supplies 36,968 94,411 94,411 83,800 83,800 7901 Non-Capital Expenditures 3,785 - - - -
TOTAL SUPPLIES 2,065,269 2,977,626 3,218,626 3,321,050 3,789,536

FIXED ASSETS
8501 Other Betterments/Improv 29,361 125,000 125,000 - - 8704 Motor Vehicles 303,469 - - - -
8705 Laboratory Equipment 91,974 65,000 65,000 - -
8706 All Other Equipment 10,695 240,000 - - -
8801 Capital Lease 56,098 227,776 186,683 187,248 187,248 8999 Capital Expenditure Offset (333,895) - - - -
TOTAL FIXED ASSETS 157,703 657,776 376,683 187,248 187,248

DEBT SERVICE
9102 Interest - Lease 9,944 - - - -
TOTAL DEBT SERVICE 9,944 - - - -
DIVISION TOTAL 14,769,462 15,669,842 15,739,846 16,419,358 17,293,759 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 313

DEPARTMENT/DIVISION
WASTEWATERPROJECTS AND
GRANTS

FUND ORGKEY
WASTEWATER SERVICE 521910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 207,717 207,965 288,071 200,000 200,000 TOTAL SERVICES 207,717 207,965 288,071 200,000 200,000

SUPPLIES
7901 Non-Capital Expenditures 242,737 - - - -
TOTAL SUPPLIES 242,737 - - - -

FIXED ASSETS
8301 Construction In Progress 394,510 - - - -
8401 Wastewater Infrastructure 4,210,417 1,813,744 1,653,667 1,650,000 2,050,000 8403 Street Construction 95,400 - - - -
8501 Other Betterments/Improv 59,500 47,956,625 2,277,043 47,144,582 1,700,000 8503 Building Const/Improv - - - - 150,000
8602 Other Land Improvements 10,100 - - - -
8706 All Other Equipment 263,398 33,171 33,171 - -
8999 Capital Expenditure Offset (5,033,324) - - - -
TOTAL FIXED ASSETS - 49,803,540 3,963,881 48,794,582 3,900,000 DIVISION TOTAL 450,454 50,011,505 4,251,952 48,994,582 4,100,000 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 314

DEPARTMENT/DIVISION

WASTEWATER DEBT

SERVICE

FUND ORGKEY
WASTEWATER SERVICE 521930
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6004 Bank/Collection Agent Fees 8,903 - - - -
TOTAL SERVICES 8,903 - - - -

DEBT SERVICE
9001 Principal - - - - -

TOTAL DEBT SERVICE - - - - -
DIVISION TOTAL 8,904 - - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 315

DEPARTMENT SUMMARY
FUND

WASTEWATER SERVICE
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
WASTEWATER SERVICE 14,769,462 15,669,842 15,739,846 16,419,358 17,293,759

WASTEWATER-PROJECTS

AND GRANTS
450,454 50,011,505 4,251,952 48,994,582 4,100,000

WASTEWATER DEBT

SERVICE
8,904 - - - -
DEPARTMENT TOTAL 15,228,819 65,681,347 19,991,798 65,413,940 21,393,759 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 316

DEPARTMENT/DIVISION

WASTEWATER CAPITAL

IMPROVEMENT

FUND ORGKEY
WASTEWATER CAPITAL IMPROVE 529920
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6804 General Govt Service Charge - 16,000 - - -
TOTAL SERVICES - 16,000 - - -
DIVISION TOTAL - 16,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 317

DEPARTMENT SUMMARY
FUND

WASTEWATER CAPITAL IMPROVE
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

WASTEWATER CAPITAL

IMPROVEMENT
- 16,000 - - -
DEPARTMENT TOTAL - 16,000 - - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 318 Municipal Utilities and Engineering Department
Non-Potable Water Division
Program Description:

The non-potable water utility produces and distributes water to an increasing number of customers to preserve precious water resources. The City encourages the use of non-potable (including recycled) water and requires that new developments install non-potable (including recycled) water facilities where non-potable water is or will become available. The City operates six non-potable water systems, one of which is supplemented with a blend of recycled water and includes twelve (12) non-potable groundwater production wells. MUED currently serves approximately 130 non-potable customers and operates and maintains fifteen (15) non-potable fire hydrants and approximately 38 miles of non-potable pipelines.

Program Objectives:
• Provide non-potable and recycled water that meets or exceeds customer needs and all water quality requirements.
• Deliver non-potable and recycled water in a fiscally responsible manner. • Expand non-potable system infrastructure as necessary to meet increasing demands. • Increase public water conservation awareness.

Accomplishments in Fiscal Year 2025-26:
• Rehabilitated four (4) Non-Potable Groundwater wells and one (1) booster pump station City of Redlands FY2027 and FY2028 Proposed Biennial Budget 319

DEPARTMENT/DIVISION

NONPOTABLE WATER

FUND ORGKEY
NON-POTABLE WATER 531900
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SALARIES AND BENEFITS
5001 Salaries: Full-Time 51,753 61,590 61,590 57,694 62,125 5002 Salaries: Part-Time - - 572 - -
5101 Overtime Salaries 1,272 4,961 4,961 5,000 5,000
5201 Stand By 740 1,103 1,103 1,000 1,000
5202 Holiday Pay 575 - 243 - -
5203 Bonus 262 249 300 249 249
5204 Accrual Payout 1,789 - 5,115 1,990 1,990
5301 Banked Leave Buy Back 838 2,898 2,898 649 649
5401 Pension Contributions 12,265 16,729 16,729 15,571 15,757 5402 GASB68 Pension Expense (11,968) - - - -
5501 Social Security/Medicare 4,026 4,161 4,161 4,139 4,185 5601 Deferred Compensation 1,870 1,511 2,009 1,635 1,635 5701 Health/Dental Insurance 8,140 9,439 9,439 7,654 7,677 5703 Disability Insurance 197 247 247 227 231
5704 Unemployment Insurance 25 174 174 165 165
5705 Life Insurance 25 25 25 24 24
5801 Vehicle Allowance - - - 300 300
5802 Eyecare Reimbursement - 120 120 99 99
5803 Clothing Allowance 281 75 102 48 48
5804 Uniform Rental 32 - 17 - -
5901 Compensated Absences
Expense
625 - - - -
5903 Other Taxable Benefits 24 30 33 57 57

TOTAL SALARIES AND

BENEFITS
72,770 103,312 109,838 96,500 101,191

SERVICES
6308 Elec Service-Facility Ops 17,166 22,271 22,271 22,271 22,271 6401 Meeting & Prof Development 47 - 27 - -
6402 Travel
Expense/Reimbursement
12 - 16 - -
6710 Special Contractual Services 64,264 250,736 250,736 250,000 250,000 6803 City Garage Charges 4,961 5,168 4,523 3,658 3,316
6804 General Govt Service Charge 8,962 9,276 9,276 9,577 9,990 6914 Depreciation Expense 5,979 - - - -
TOTAL SERVICES 101,390 287,451 286,849 285,505 285,577

SUPPLIES
7208 Repair/Maintenance Supplies - 50,000 50,000 50,000 50,000 TOTAL SUPPLIES - 50,000 50,000 50,000 50,000
DIVISION TOTAL 174,160 440,762 446,686 432,005 436,768
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 320

DEPARTMENT/DIVISION
NONPOTABLE WATERPROJECTS AND
GRANTS

FUND ORGKEY
NON-POTABLE WATER 531910
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SUPPLIES
7901 Non-Capital Expenditures - 125,270 - - -
TOTAL SUPPLIES - 125,270 - - -

FIXED ASSETS
8301 Construction In Progress 57,573 - - - -
8405 Other Infrastucture 29,927 29,927 - -
8999 Capital Expenditure Offset (57,573) - - - -
TOTAL FIXED ASSETS - 29,927 29,927 - -
DIVISION TOTAL - 155,197 29,927 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 321

DEPARTMENT SUMMARY
FUND

NON-POTABLE WATER
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED
NONPOTABLE WATER 174,160 440,762 446,686 432,005 436,768 NONPOTABLE WATERPROJECTS AND GRANTS- 155,197 29,927 - - DEPARTMENT TOTAL 174,160 595,959 476,613 432,005 436,768 City of Redlands FY2027 and FY2028 Proposed Biennial Budget 322

DEPARTMENT/DIVISION

NONPOTABLE CAPITAL

IMPROVEMENT

FUND ORGKEY
NON-POTABLE CAPITAL IMPROV 532920
OBJECT
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

SERVICES
6106 Other Professional Services 54,053 133,867 133,867 - - 6804 General Govt Service Charge - 2,500 - - -
TOTAL SERVICES 54,053 136,367 133,867 - -

FIXED ASSETS
8402 Water Infrastructure - 144,580 144,580 - -
TOTAL FIXED ASSETS - 144,580 144,580 - -
DIVISION TOTAL 54,053 280,947 278,447 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 323

DEPARTMENT SUMMARY
FUND

NON-POTABLE CAPITAL IMPROV
FY 2025
ACTUAL
(AUDITED)
FY 2026

ADJUSTED
BUDGET
FY 2026
12 MONTH

ESTIMATED
FY 2027

CITY MANAGER

RECOMMENDED
FY 2028

CITY MANAGER

RECOMMENDED

NONPOTABLE CAPITAL

IMPROVEMENT
54,053 280,947 278,447 - -
DEPARTMENT TOTAL 54,053 280,947 278,447 - -
City of Redlands FY2027 and FY2028 Proposed Biennial Budget 324 CITY MANAGER FY 2027 AND 2028 PROPOSED BUDGET

ATTACHMENT C
Governmental Funds Reserve
General Fund (101) Contingency 11,069,310 - 11,069,310
Set-asides:

Public Benefit - Parks & Rec. 67,780 - 67,780
Public Benefit - Trails Develpmt. 766 - 766
Public Benefit - Open Space - - -
Public Benefit - Other Impv. 36,930 - 36,930
Reserve for Parking Imprv. 345,453 - 345,453
Maint: Park Facilities 100,000 - 100,000
Maint: Buildings & Imprvs. 1,003,968 (100,000) 903,968
Unfunded Mandates 328,462 - 328,462
Capital: HVAC, IT Equip. 200,000 - 200,000
Capital: over $50,000 93,064 - 93,064
General Fund Vehicles 62,506 - 62,506
Fire Equipment 79,369 (50,000) 29,369
Sidewalk Imprv. 121,056 - 121,056
Future Facilites 10,529,059 4,100,000 14,629,059
Public Safety / Homelessness 700,000 - 700,000
Total $ 24,737,724 $ 3,950,000 $ 28,687,724
Parks and Open Space (250) Capital $ $ 1,846,461 - $ 1,846,461 Enterprise Funds
Water (501) Operating $ 2,936,131 $ - $ 2,936,131
Maintenance 2,612,655 (2,612,655) -
Rate Stabilization 200,000 - 200,000
Capital 3,442,600 (3,442,600) -
Treatment Plant Capital 5,000,000 (5,000,000) -
Total $ 14,191,386 $ (11,055,255) $ 3,136,131
Solid Waste (511) Operating $ 171,601 $ - $ 171,601
Landfill Expansion 1,200,000 $ - 1,200,000
Total $ 1,371,601 $ - $ 1,371,601
Wastewater (521) Capital Contingency 201,585 (201,585) - Non-Potable (531) Capital Contingency $ 29,441 $ - $ 29,441 Internal Service Funds
Liability Insurance (602) Self-Insured Retention $ 500,000 $ - $ 500,000 Workers Comp (606) Self-Insured Retention $ 1,000,000 $ - $ 1,000,000 Schedule of Proposed Reserves
FY 2027
Estimated Net Proposed Estimated
Balance Increase (Decrease) Total Reserve
6/30/2026 2026-27 6/30/2027
CITY MANAGER FY 2027 AND 2028 PROPOSED BUDGET

ATTACHMENT C
Governmental Funds Reserve
General Fund (101) Contingency 11,069,310 - 11,069,310
Set-asides:

Public Benefit - Parks & Rec. 67,780 - 67,780
Public Benefit - Trails Develpmt. 766 - 766
Public Benefit - Open Space - - -
Public Benefit - Other Impv. 36,930 - 36,930
Reserve for Parking Imprv. 345,453 - 345,453
Maint: Park Facilities 100,000 - 100,000
Maint: Buildings & Imprvs. 903,968 - 903,968
Unfunded Mandates 328,462 - 328,462
Capital: HVAC, IT Equip. 200,000 - 200,000
Capital: over $50,000 93,064 - 93,064
General Fund Vehicles 62,506 - 62,506
Fire Equipment 29,369 - 29,369
Sidewalk Imprv. 121,056 - 121,056
Future Facilites 14,629,059 5,000,000 19,629,059
Public Safety / Homelessness 700,000 - 700,000
Total $ 28,687,724 $ 5,000,000 $ 33,687,724
Parks and Open Space (250) Capital $ 1,846,461 $ 504,219 $ 2,350,680 Enterprise Funds
Water (501) Operating $ 2,936,131 $ - $ 2,936,131
Rate Stabilization 200,000 - 200,000
Total $ 3,136,131 $ - $ 3,136,131
Solid Waste (511) Operating $ 171,601 $ - $ 171,601
Capital 1,200,000 $ - 1,200,000
Total $ 1,371,601 $ - $ 1,371,601
Non-Potable (531) Capital Contingency $ 29,441 $ - $ 29,441 Internal Service Funds
Liability Insurance (602) Self-Insured Retention $ 500,000 $ - $ 500,000 Workers Comp (606) Self-Insured Retention $ 1,000,000 $ - $ 1,000,000 Schedule of Proposed Reserves
FY 2028
Estimated Net Proposed Estimated
Balance Increase (Decrease) Total Reserve
6/30/2027 2027-28 6/30/2028

ATTACHMENT D

LOANS OUTSTANDING
FY 2027 AND 2028 PROPOSED BUDGET
Water (501) Loan Outstanding to:

Cemetery (562) $ 210,077 - 150,000 $ 60,077
Solid Waste (511) Loan Outstanding to:

Aviation (564) $ 620,157 - 60,000 $ 560,157
Balance New Loans Repayments Balance
6/30/2026 2026-27 2026-27 6/30/2027
Loans Outstanding
Fiscal Year 2027
Unaudited Estimated Estimated Estimated

ATTACHMENT D

LOANS OUTSTANDING
FY 2027 AND 2028 PROPOSED BUDGET
Water (501) Loan Outstanding to:

Cemetery (562) $ 60,077 - 60,077 $ -
Solid Waste (511) Loan Outstanding to:

Aviation (564) $ 560,157 - 60,000 $ 500,157
Balance New Loans Repayments Balance
6/30/2027 2027-28 2027-28 6/30/2028
Loans Outstanding
Fiscal Year 2028
Unaudited Estimated Estimated Estimated
Attachment E
Beginning Ending
Fund Balance/ Inter-Fund Inter-Fund Fund Balance/
Cash Balance Revenues Transfers From Other* TOTAL Appropriations Transfers To Other* TOTAL Cash Balance 101 General Fund $ 43,660,145 125,551,079 $ 2,647,868 $ 1,275,000 $ 173,134,093 $ 118,267,980 $ 11,933,149 5,000,000 $ 135,201,130 $ 37,932,963 200 General Govt. Grants 430,974 - - - 430,974 - - - - 430,974 205 Emergency Services - 1,105,000 5,453,381 - 6,558,381 6,558,381 - - 6,558,381 -206 Household Haz. Waste 326,505 140,000 - - 466,505 164,494 - - 164,494 302,010 207 Gas Tax 4,206,653 525,843 - - 4,732,496 - 4,206,653 - 4,206,653 525,843 209 Local Transportation 229,986 5,000 - - 234,986 - - - - 234,986 210 Measure I 2010 - 1,953,719 - - 1,953,719 8,759 1,944,960 - 1,953,719 -211 PARIS 394,131 39,040 4,006,925 - 4,440,096 4,046,347 - - 4,046,347 393,749 221 Air Quality Improv. 472,663 106,000 - - 578,663 985 - - 985 577,678 223 Traffic Safety - 127,000 - - 127,000 - 127,000 - 127,000 - 227 Open Space 2,964,594 203,815 - - 3,168,409 4,076 - - 4,076 3,164,333 236 Downtown Business Area - 11,810 63,649 - 75,459 75,458 - - 75,458 -237 Parking Authority - 4,000 20,443 - 24,443 24,443 - - 24,443 - 238 Public Art Fund 10,523 188 - - 10,710 - - - - 10,710 241 Trans. Dev. Act Grant 92 - - - 92 - - - - 92
246 Asset Forfeiture 1,926,563 248,630 - - 2,175,193 457,903 - - 457,903 1,717,290 249 Supp. Law Enforcement 174,833 328,030 - - 502,863 502,753 - - 502,753 110 250 Park & Open Space Dvlp. 1,796,430 667,851 - - 2,464,280 492,820 - 1,846,461 2,339,281 125,000 251 Public Facilities Develop. 3,470,517 1,938,280 - - 5,408,797 638,766 - - 638,766 4,770,031 252 Arterial Street Construction 2,022,725 3,943,315 - - 5,966,039 3,371,674 - - 3,371,674 2,594,365 253 Traffic Signals 720,923 272,582 - - 993,505 241,324 - - 241,324 752,181 254 Freeway Interchanges 3,047,019 715,726 - - 3,762,744 12,770 - - 12,770 3,749,974 255 Inclusionary Housing 1,727,911 1,500,000 - - 3,227,911 70,000 - - 70,000 3,157,911 260 Street Lighting Dist. #1 43,439 25,564 - - 69,003 37,195 - - 37,195 31,808 261 CFD 2004-1 312,885 844,611 - - 1,157,496 729,122 196,610 - 925,732 231,764 263 Landscape Maint. Dist. - 29,000 42,908 - 71,908 71,908 - - 71,908 -305 General Debt Service 654,123 5,000 - 455,789 1,114,911 443,179 - - 443,179 671,732 405 Storm Drain Construction 3,373,104 529,101 - - 3,902,205 511,848 - - 511,848 3,390,357 406 Safety/City Hall Replacement 439,778 35,562 - - 475,340 - - - - 475,340 501 Water Service 18,459,185 34,301,460 2,041,948 11,115,332 65,917,925 42,750,525 698,852 - 43,449,377 22,468,548 508 Source Acquisition 2,450,147 612,485 - - 3,062,632 - - - - 3,062,632 509 Water Capital Improvement - 2,041,948 - - 2,041,948 - 2,041,948 - 2,041,948 -511 Solid Waste Service 7,289,331 25,833,907 400,000 60,000 33,583,238 26,488,795 827,355 - 27,316,150 6,267,088 517 Calif St Landfill Closure 89,241 300,000 300,000 - 689,241 - - 300,000 300,000 389,241 519 Solid Waste Cap. Improv. 3,012,248 118,197 - - 3,130,445 - 400,000 - 400,000 2,730,445 521 Wastewater Service 7,112,444 61,130,583 3,919,550 201,585 72,364,162 65,413,940 423,207 - 65,837,147 6,527,015 529 WW Capital Improvement 4,070,443 362,242 - - 4,432,685 - 3,919,550 - 3,919,550 513,135 531 Non-Potable Water Service 3,841,110 757,393 - - 4,598,503 432,005 - - 432,005 4,166,498 532 Non-Potable Capital Imprv 1,318,877 - 226,098 - 1,544,975 - - - - 1,544,975 538 Groves 51,498 1,207,433 585,270 - 1,844,201 1,844,201 - - 1,844,201 -562 Cemetery 1,905,117 - 1,376,826 - 3,281,943 2,062,898 - 150,000 2,212,898 1,069,045 564 Aviation 470,418 - 540,332 - 1,010,750 498,195 - 60,000 558,195 452,554 602 Liability Self-Insurance 500,000 1,545 7,237,343 - 7,738,888 7,238,887 - - 7,238,887 500,001 604 Dept of Innovation & Tech 2,589,059 6,400,002 - - 8,989,061 7,824,129 - - 7,824,129 1,164,932 606 Workers' Compensation 4,597,056 3,458,111 - - 8,055,167 3,556,264 - - 3,556,264 4,498,903 607 Equipment Maintenance 7,633,835 7,627,751 - - 15,261,586 9,569,206 - - 9,569,206 5,692,380 608 Utility Billing 1,275,819 2,657,300 - - 3,933,119 3,291,804 - - 3,291,804 641,316 705 Simonds Endowment 31,974 - - - 31,974 - - - - 31,974 706 Pauline Stancliff Mem. Trust 4,662 - - - 4,662 - - - - 4,662 810 CFD Trust 1,774,167 850,000 - - 2,624,167 864,490 - - 864,490 1,759,677 TOTAL (MEMO ONLY) $ 137,202,338 $ 294,340,168 $ 26,719,284 $ 13,107,706 $ 471,369,496 $ 308,567,525 $ 26,719,284 $ 7,356,461 $ 342,643,270 $ 128,726,226 * Other includes Decreases & Increases in Reserves, Loan Repayments From & To, etc. For specific detail, refer to the Financial Plans and Summaries section.

City of Redlands
Proposed Budget Summary
Summary of 2027 Financial Sources and Requirements

SOURCES REQUIREMENTS
Attachment E
Beginning Ending
Fund Balance/ Inter-Fund Inter-Fund Fund Balance/
Cash Balance Revenues Transfers From Other* TOTAL Appropriations Transfers To Other* TOTAL Cash Balance 101 General Fund $ 37,932,963 128,307,065 $ 2,691,327 $ - $ 168,931,355 $ 120,857,484 $ 13,173,062 5,000,000 $ 139,030,546 $ 29,900,808 200 General Govt. Grants 430,974 - - - 430,974 - - - - 430,974 205 Emergency Services - 1,105,000 5,922,068 - 7,027,068 7,027,068 - - 7,027,068 - 206 Household Haz. Waste 302,010 140,000 - - 442,010 175,550 - - 175,550 266,460207 Gas Tax 4,369,501 525,843 - - 4,895,344 - 4,369,501 - 4,369,501 525,843 209 Local Transportation 234,986 5,000 - - 239,986 - - - - 239,986210 Measure I 2010 - 1,999,724 - - 1,999,724 9,137 1,990,587 - 1,999,724 -211 PARIS 393,749 39,040 4,175,856 - 4,608,646 4,152,414 - - 4,152,414 456,232221 Air Quality Improv. 577,678 106,000 - - 683,678 1,005 - - 1,005 682,673 223 Traffic Safety - 127,000 - - 127,000 - 127,000 - 127,000 - 227 Open Space 3,164,333 252,097 - - 3,416,430 5,042 - - 5,042 3,411,388236 Downtown Business Area - 11,810 69,036 - 80,845 80,845 - - 80,845 -237 Parking Authority - 4,000 21,227 - 25,227 25,227 - - 25,227 -238 Public Art Fund 10,710 188 - - 10,898 - - - - 10,898241 Trans. Dev. Act Grant 92 - - - 92 - - - - 92246 Asset Forfeiture 1,717,290 249,666 - - 1,966,956 207,230 - - 207,230 1,759,726 249 Supp. Law Enforcement 110 328,803 - - 328,913 302,280 - - 302,280 26,633250 Park & Open Space Dvlp. 125,000 812,696 - - 937,696 120,680 - 504,219 624,899 312,796251 Public Facilities Develop. 4,770,031 2,312,319 - - 7,082,350 46,246 - - 46,246 7,036,104 252 Arterial Street Construction 2,594,365 2,479,134 - - 5,073,499 1,502,447 - - 1,502,447 3,571,052 253 Traffic Signals 752,181 1,377,630 - - 2,129,811 1,667,493 - - 1,667,493 462,318254 Freeway Interchanges 3,749,974 797,299 - - 4,547,273 14,402 - - 14,402 4,532,871255 Inclusionary Housing 3,157,911 8,500 - - 3,166,411 70,000 - - 70,000 3,096,411260 Street Lighting Dist. #1 31,808 25,564 - - 57,372 37,865 - - 37,865 19,507261 CFD 2004-1 231,764 844,611 - - 1,076,375 675,594 206,088 - 881,682 194,693263 Landscape Maint. Dist. - 29,000 45,741 - 74,741 74,741 - - 74,741 -305 General Debt Service 671,732 5,000 - 471,205 1,147,938 463,343 - - 463,343 684,595405 Storm Drain Construction 3,390,357 612,827 - - 4,003,183 13,523 - - 13,523 3,989,660406 Safety/City Hall Replacement 475,340 36,629 - - 511,969 - - - - 511,969 501 Water Service 22,468,548 35,142,601 1,678,200 60,077 59,349,427 43,195,691 701,689 - 43,897,380 15,452,047 508 Source Acquisition 3,062,632 721,100 - - 3,783,733 - - - - 3,783,733 509 Water Capital Improvement - 2,429,332 - - 2,429,332 - 1,678,200 - 1,678,200 751,132511 Solid Waste Service 6,267,088 27,596,098 431,525 60,000 34,354,711 26,605,634 829,289 - 27,434,923 6,919,788 517 Calif St Landfill Closure 389,241 300,000 300,000 - 989,241 - - 300,000 300,000 689,241519 Solid Waste Cap. Improv. 2,730,445 129,692 - - 2,860,138 - 431,525 - 431,525 2,428,612 521 Wastewater Service 6,527,015 17,897,949 419,550 - 24,844,514 21,393,759 423,522 - 21,817,281 3,027,233 529 WW Capital Improvement 513,135 347,589 - - 860,724 - 419,550 - 419,550 441,174531 Non-Potable Water Service 4,166,498 767,393 - - 4,933,892 436,768 - - 436,768 4,497,124532 Non-Potable Capital Imprv 1,544,975 - 226,098 - 1,771,073 - - - - 1,771,073 538 Groves - 1,235,813 685,790 - 1,921,603 1,921,603 - - 1,921,603 -562 Cemetery 1,069,045 1,401,742 - - 2,470,787 1,725,639 - 60,077 1,785,716 685,071 564 Aviation 452,554 - 540,332 - 992,886 505,658 - 60,000 565,658 427,228 602 Liability Self-Insurance 500,001 1,591 7,909,694 - 8,411,286 7,911,285 - - 7,911,285 500,002 604 Dept of Innovation & Tech 1,164,932 6,600,000 - - 7,764,932 7,417,963 - - 7,417,963 346,970606 Workers' Compensation 4,498,903 3,458,144 - - 7,957,047 3,645,478 - - 3,645,478 4,311,569607 Equipment Maintenance 5,692,380 6,943,994 - - 12,636,374 8,897,978 - - 8,897,978 3,738,396608 Utility Billing 641,316 2,907,300 - - 3,548,616 3,283,839 - - 3,283,839 264,776 705 Simonds Endowment 31,974 - - - 31,974 - - - - 31,974 706 Pauline Stancliff Mem. Trust 4,662 - - - 4,662 - - - - 4,662810 CFD Trust 1,759,677 850,000 - - 2,609,677 878,580 - - 878,580 1,731,097 TOTAL (MEMO ONLY) $ 128,726,226 $ 255,882,869 $ 24,350,013 $ 591,282 $ 409,550,391 $ 265,349,491 $ 24,350,013 $ 5,924,296 $ 295,623,800 $ 113,926,591 * Other includes Decreases & Increases in Reserves, Loan Repayments From & To, etc. For specific detail, refer to the Financial Plans and Summaries section.

City of Redlands
Proposed Budget Summary
Summary of 2028 Financial Sources and Requirements

SOURCES REQUIREMENTS
CAPITAL IMPROVEMENT PLAN - FY 2027 THROUGH FY 2032

CAPITAL IMROVEMENT PLAN
The City of Redlands’ Capital Improvement Plan (CIP) guides the City’s long term, strategic decisions regarding the construction, repair and replacement of the City’s assets including streets, public buildings, water and sewer pipeline, and parks. The CIP covers a six-year planning horizon, or three biennial budget cycles. It serves as a financial tool, identifying funds for the wide variety of mid- and longer-term capital projects, as well as a planning tool to ensure capital projects are consistent with the City’s General Plan.

It is a projection of the City’s needed capital investments over a six-year period, both funded and unfunded.

The CIP will be updated with each new biennial budget and will be adjusted periodically to maintain its relevance. The City Budget will incorporate the first two years of the CIP into a Capital Budget.

Development of the CIP is an intensive process and involves a comprehensive review of the goals and direction of the City’s future infrastructure needs. Before capital projects become official CIP projects, they undergo a prioritization process, where City staff identify assets for repair, replacement, or purchase in the next two-year budget cycle. When the City Council adopts the biennial budget, projects included in those fiscal years become part of the Capital Budget.

Capital projects included in the CIP are projects specifically designed for large-scale, long-term investment that builds, replaces, or improves an asset (for example, buildings, parks, storm drains, water pipeline, roads, etc.). Capital projects should have a design life of at least ten years and a minimum cost of approximately $50,000. Additionally, capital items not meeting the criteria of “capital projects” as mentioned above are referred to as “Capital Outlay”. These items include vehicles, equipment, and other capital expenses that do not meet criteria for a project.

It is important to note that capital projects differ from maintenance projects, which are not within the CIP.

Maintenance projects are typically smaller in scale and cost and refer to more short-term repairs or preventative measures to ensure vital public infrastructure remains operational. Capital Project •Create or exand upon existing
assets
•Provide a link between long-range
strategic plans and current
resources/needs
•May be funded through cash or
debt financing
•Extend the useful life of an asset
and/or increase its value/capacity
Maintenance
Project
•Repair relatively minor damage to
an asset
•Preserve the original state of a
capital asset through preventative
or curative measures
•Mostly routine
•Conserve the operational abilities
of City property
•Part of ongoing operational budget
Attachment F - 6-Year Capital Improvement Plan (CIP)
The CIP includes two years’ worth of budgeted projects and a four-year plan for projects intended to meet the City’s current or anticipated capital needs, the funding sources (if available), and some highlighted projects with details and descriptions.

General Fund and Safety/City Hall Replacement Fund CIP
Significant CIP projects planned within the General Fund and Safety/City Hall Replacement Fund include the following:
• New Public Safety Facility (Safety Hall): Funding is included for the construction of the new Public Safety facility through debt financing. The project represents a once-in-a-generation investment that will consolidate Police Department operations currently spread across multiple facilities into a modern, centralized public safety facility designed to improve operational coordination, efficiency, accessibility, and long-term service capacity. Debt service for the financing of this project will be funded by the General Fund.
• Fire Station Design and Construction: Funding is included for architectural design and related preconstruction activities of a new fire station. This portion of the project will be funded by the General Fund and Public Facilities Fund. The construction phase of this project will be funded through debt financing. Debt service for the financing of this project will be funded by the General Fund. • A.K. Smiley Public Library HVAC Cooling Tower Replacement: The Proposed CIP Budget includes funding for design and replacement of the Library’s aging cooling tower system. This project will be funded through debt financing. Debt service for the financing of this project will be funded by the General Fund.
• Joslyn Senior Center Roof Replacement: Funding is included for replacing the roof of the Joslyn Senior Center as the current roof is beyond its useful life. This project will be funded by the General Fund.

Water Fund CIP
In the Water Fund, appropriations for FY 2027 and FY 2028 total roughly $42.7 and $43.2 million, respectively, with about $12 million dedicated to CIP in FY 2027 and $11.7 million dedicated in FY 2028.

These projects include approximately $9 million in pipeline replacement, expansion and renovation of the Joint Utilities Laboratory, wellhead perchlorate treatment for two wells, and a filter press to dewater sludge at the Hinckley Water Treatment Plant.

Wastewater Fund CIP
In the Wastewater Fund, appropriations total approximately $65.4 and $21.4 million for FY 2027 and FY 2028, respectively, with $2.5 million in pipeline replacement to replace a combined total of roughly 4 to 5 miles of sewer pipeline. It is worth noting that the Wastewater Fund’s largest planned capital project, the Wastewater Treatment Plant Capital Modifications Phase 2 project (approximately $45 million), is included in the CIP. The City has been awarded State Revolving Fund (SRF) financing for construction of this project. Debt service for the SFR loan will be funded by the Wastewater Fund.

Solid Waste Fund CIP
In the Solid Waste Fund, annual appropriations total roughly $27.3 and $27.4 million for FY 2027 and FY 2028, respectively. Included in these appropriations is approximately $4.25 million in CIP projects, including $4 million for the Phase V Landfill Cell Expansion and $250,000 for remodeling Solid Waste facilities.

Attachment F - 6-Year Capital Improvement Plan (CIP)
Other Fund CIP
The City has also invested in capital projects for other funds, including the Paris Fund, Traffic Signals Fund, and Arterial Street Construction Fund. Capital investments for these other funds include the following: $7.5 million in FY 2027 and FY 2028 for the Paris Fund for street resurfacing; $1.9 million in FY 2027 and FY 2028 for the Traffic Signals Fund for traffic signal improvements at three intersections; and $4.9 million in FY 2027 and FY 2028 for the Arterial Street Construction Fund for street widening projects.

The CIP is divided into sections according to fund. Each fund contains a list of projects included in the sixyear planning horizon, a brief description of each project, and an estimated dollar amount for each project.

Attachment F - 6-Year Capital Improvement Plan (CIP)
Orgkey Object Division Project Name Funding Source FY 2027 Budget FY 2028 Budget Unfunded
2027 and 2028
Requests
FY 2029 Plan FY 2030 Plan FY 2031 Plan FY 2032 Plan 6 Year Funded and Planned Total 101190 8501 Library Contemporary Club Remodel and New Roof General Fund - - 1,500,000 750,000 750,000 - - 1,500,000 101190 8503 Library Library Reference Basement Overhaul General Fund - - 5,100,000 1,700,000 1,700,000 1,700,000 - 5,100,000 Total Library - - 6,600,000 2,450,000 2,450,000 1,700,000 - 6,600,000 101250 8501 Suppression/Operations Fuel Tank at Fire Station 263 General Fund - - 700,000 - - - 700,000 700,000 101250 8503 Suppression/Operations New Fire Station Design General Fund 900,000 - - - - - - 900,000 Total Fire Department 900,000 - 700,000 - - - 700,000 1,600,000 101301 8501 Building Maintenance Annex HVAC Design/Replacement General Fund - - 1,015,000 515,000 500,000 - - 1,015,000 101301 8501 Building Maintenance Library, Lincoln Shrine and Contemporary Club Roof Replacement General Fund - - 750,000 250,000 250,000 250,000 - 750,000 101301 8501 Building Maintenance Community Center Senior Nutrition Roof Replacement General Fund - - 700,000 350,000 350,000 - - 700,000101301 8501 Building Maintenance Joslyn Center Roof Replacement General Fund 225,000 - - - - - - 225,000 101303 8501 Parks Pump Track at the Skate Park General Fund - - 350,000 - - 350,000 - 350,000101303 8501 Parks Prospect Park Sewell Theatre Fencing and Doors General Fund - - 170,000 170,000 - - - 170,000 101303 8501 Parks Redlands Bowl Security Fencing (Behind Procellis) General Fund - - 100,000 100,000 - - - 100,000 101303 8501 Parks Park playground renovation General Fund - - 1,000,000 500,000 500,000 500,000 500,000 2,000,000 101303 8501 Parks Smiley Park Restroom Renovation General Fund - - 800,000 400,000 400,000 - - 800,000 101303 8501 Parks Sylvan Park Restroom Renovation General Fund 95,230 - - - - - - 95,230 101304 8501 Streets Renovation crew room, kitchen, and restroom General Fund - - 50,000 50,000 - - - 50,000 101304 8501 Streets Sidewalk rehab around the Citrus Center General Fund - - 150,000 150,000 - - - 150,000 101309 8501 Recreation Carriage House Improvements General Fund - - 100,000 - 100,000 - - 100,000101309 8501 Recreation Community Center Game room Renovation General Fund - - 1,460,000 460,000 500,000 500,000 - 1,460,000 320,230 - 6,645,000 2,945,000 2,600,000 1,600,000 500,000 7,965,230 101400 8403 Engineering Alley Resurfacing Project General Fund - - 1,000,000 500,000 500,000 500,000 500,000 2,000,000 101400 8501 Engineering Traffic & Parking Commission Recommended Projects General Fund - - 200,000 100,000 100,000 100,000 100,000 400,000 101400 8501 Engineering Sidewalks and ADA Ramps Replacement Project General Fund - - 2,000,000 1,000,000 1,000,000 1,000,000 1,000,000 4,000,000 - - 3,200,000 1,600,000 1,600,000 1,600,000 1,600,000 6,400,000 Grand Total General Fund 1,220,230 - 17,145,000 6,995,000 6,650,000 4,900,000 2,800,000 22,565,230 City of Redlands 6-Year Capital Improvement Plan (CIP)

GENERAL FUND
Fire Department
Facilities and Community Services
Library
Municipal Utilities and Engineering Department
Total Facilities and Community Services
Total Municipal Utilities and Engineering Department
Attachment F - 6-Year Capital Improvement Plan (CIP)
Orgkey Object Division Project Name Funding Source FY 2027 Budget FY 2028 Budget Unfunded
2027 and 2028
Requests
FY 2029 Plan FY 2030 Plan FY 2031 Plan FY 2032 Plan 6 Year Funded and Planned Total City of Redlands 6-Year Capital Improvement Plan (CIP)
211910 8403 PARIS/PMP PMP 2026 Street Resurfacing Project Gas Tax and Measure I Funds 3,000,000 - - - - - - 3,000,000211910 8403 PARIS/PMP PMP 2027 Street Resurfacing Project Gas Tax and Measure I Funds - 3,500,000 - - - - - 3,500,000211910 8403 PARIS/PMP PMP 2028 Street Resurfacing Project Gas Tax and Measure I Funds - - - 3,500,000 - - - 3,500,000 211910 8403 PARIS/PMP PMP 2029 Street Resurfacing Project Gas Tax and Measure I Funds - - - - 3,500,000 - - 3,500,000 211910 8403 PARIS/PMP PMP 2030 Street Resurfacing Project Gas Tax and Measure I Funds - - - - - 3,500,000 - 3,500,000 211910 8403 PARIS/PMP PMP 2031 Street Resurfacing Project Gas Tax and Measure I Funds - - - - - - 3,500,000 3,500,000 211910 8501 PARIS/PMP 2026 Alley Resurfacing Project Gas Tax and Measure I Funds 500,000 - - - - - - 500,000 211910 8501 PARIS/PMP 2027 Alley Resurfacing Project Gas Tax and Measure I Funds - 500,000 - - - - - 500,000 211910 8501 PARIS/PMP 2028 Alley Resurfacing Project Gas Tax and Measure I Funds - - - 500,000 - - - 500,000 211910 8501 PARIS/PMP 2029 Alley Resurfacing Project Gas Tax and Measure I Funds - - - - 500,000 - - 500,000 211910 8501 PARIS/PMP 2030 Alley Resurfacing Project Gas Tax and Measure I Funds - - - - - 500,000 - 500,000 211910 8501 PARIS/PMP 2031 Alley Resurfacing Project Gas Tax and Measure I Funds - - - - - - 500,000 500,000 Total PARIS Fund 3,500,000 4,000,000 - 4,000,000 4,000,000 4,000,000 4,000,000 23,500,000 250400 8501 Public Facilities Sylvan Park Restroom Renovation Parks and Open Space Fund 375,000 - - - - - - 375,000 Total Parks and Open Space Fund 375,000 - - - - - - 375,000 251400 8503 Public Facilities New Fire Station Design Public Facilities Fund 600,000 - - - - - - 600,000 Total Public Facilities Fund 600,000 - - - - - - 600,000 252400 8403 Arterial Citrus Avenue Widening Project - Dearborn to Wabash Arterial Street Fund - 1,500,000 - - - - - 1,500,000252400 8501 Arterial California Street & Lugonia Avenue Widening Project Arterial Street Fund 1,350,000 - - - - - - 1,350,000 252400 8501 Arterial Citrus Avenue and Redlands High School Underpass Project Arterial Street Fund 1,500,000 - - 5,500,000 - - - 7,000,000 252400 8501 Arterial Highland/Redlands Regional Gap Connector Project Arterial Street Fund 500,000 - - - - - - 500,000 Total Arterial Street Fund 3,350,000 1,500,000 - 5,500,000 - - - 10,350,000 253400 8501 Traffic Signal Traffic Signal Improvement at University St & Colton Ave Traffic Signals Fund 120,000 780,000 - - - - - 900,000 253400 8501 Traffic Signal Traffic Signal Improvement at Wabash Ave & Citrus Ave Traffic Signals Fund - 136,000 - 820,000 - - - 956,000 253400 8501 Traffic Signal Traffic Signal Improvements at Dearborn Ave & Citrus Ave Traffic Signals Fund 120,000 750,000 - - - - - 870,000 Total Traffic Signals Fund 240,000 1,666,000 - 820,000 - - - 2,726,000 405400 8404 Storm Drain Judson Street Storm Drain Improvement Storm Drain Fund 500,000 - - - - - - 500,000 Total Storm Drain Fund 500,000 - - - - - - 500,000
406501 8503 Safety Hall Construction of New Safety Hall Facility for Police Department Future Debt Financing* 78,500,000 - - - - - - 78,500,000 406501 8503 Fire Station Construction of New Fire Station Future Debt Financing* - 15,000,000 - - - - - 15,000,000 406501 8503 Additional Fire Station Additional Fire Station TBD - - - - - - 18,700,000 18,700,000 406501 8503 Library Improvements Library Cooling Tower Replacement (HVAC) Future Debt Financing* 1,500,000 - - - - - - 1,500,000 80,000,000 15,000,000 - - - - 18,700,000 113,700,000
*City of Redlands is actively working on debt financing for these projects. Anticipated funding from debt issuance is expected in FY2027 and funding for these projects will be appropriated at that time.

Storm Drain Fund
PARIS Fund
Public Facilities Fund

OTHER FUNDS
Parks and Open Space Fund
Arterial Street Fund
Traffic Signals Fund
Safety/City Hall Replacement Fund
Total Safety/City Hall Replacement Fund
Attachment F - 6-Year Capital Improvement Plan (CIP)
Orgkey Object Division Project Name Funding Source FY 2027 Budget FY 2028 Budget Unfunded
2027 and 2028
Requests
FY 2029 Plan FY 2030 Plan FY 2031 Plan FY 2032 Plan 6 Year Funded and Planned Total City of Redlands 6-Year Capital Improvement Plan (CIP)
501910 8501 Water/Wastewater Joint Utilities Laboratory Renovation & Expansion Project Water Fund 1,700,000 1,700,000 - - - - - 3,400,000 501910 6106 Water Projects Tate Water Treatment Plant Upgrades Water Fund - - - - 1,000,000 - - 1,000,000 501910 8402 Water Projects Well Drilling Project Water Fund 1, 1,000,000 000,000 - 4,000,000 - - - 6,000,000 501910 8402 Water Projects 2026 CIP Water Pipeline Replacement Project Water Fund 4,500,000 - - - - - - 4,500,000 501910 8402 Water Projects 2027 CIP Water Pipeline Replacement Project Water Fund - 4,500,000 - - - - - 4,500,000 501910 8402 Water Projects 2028 CIP Water Pipeline Replacement Project Water Fund - - - 4,500,000 - - - 4,500,000 501910 8402 Water Projects 2029 CIP Water Pipeline Replacement Project Water Fund - - - - 4,500,000 - - 4,500,000 501910 8402 Water Projects 2030 CIP Water Pipeline Replacement Project Water Fund - - - - - 4,500,000 - 4,500,000 501910 8402 Water Projects 2031 CIP Water Pipeline Replacement Project Water Fund - - - - - - 4,500,000 4,500,000 501910 8402 Water Projects Sunset Reservoir Replacement Water Fund - - - - 10,000,000 10,000,000 6,000,000 26,000,000 501910 8402 Water Projects Tate Water Treatment Plant Upgrades Water Fund - - - - - 4,000,000 4,000,000 8,000,000 501910 8402 Water Projects Tate WTP Raw Water Influent Line Replacement Water Fund - - - 8,000,000 4,000,000 - - 12,000,000 501910 8402 Water Projects Wellhead Perchlorate Treatment - Well 38 & 39 Water Fund - 4,500,000 - 4,500,000 - - - 9,000,000 501910 8501 Water Projects Hinckley WTP Parking Lot Improvements Water Fund 975,000 - - - - - - 975,000 501910 8501 Water Projects Hinckley WTP Sludge Press Water Fund 3,815,000 - - - - - - 3,815,000 Total Water Fund 11,990,000 11,700,000 - 21,000,000 19,500,000 18,500,000 14,500,000 97,190,000 511910 8501 Solid Waste CQA for the Phase 5 Landfill Expansion Project Solid Waste Fund 500,000 - - - - - - 500,000 511910 8501 Solid Waste Phase 5 of the Landfill Expansion Solid Waste Fund 3,500,000 - - - - - - 3,500,000 511910 8501 Solid Waste Solid Waste office/breakroom, locker remodel Solid Waste Fund 250,000 - - 1,736,438 607,753 1,276,282 2,010,143 5,880,616 Total Solid Waste Fund 4,250,000 - - 1,736,438 607,753 1,276,282 2,010,143 9,880,616 521910 8501 Water/Wastewater Joint Utilities Laboratory Renovation & Expansion Project Wastewater Fund 1,700,000 1,700,000 - - - - - 3,400,000 521910 8401 Wastewater 2026 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund 1,000,000 - - - - - - 1,000,000521910 8401 Wastewater 2027 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund - 1,500,000 - - - - - 1,500,000 521910 8401 Wastewater 2028 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund - - - 1,500,000 - - - 1,500,000 521910 8401 Wastewater 2029 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund - - - - 1,500,000 - - 1,500,000 521910 8401 Wastewater 2030 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund - - - - - 1,500,000 - 1,500,000 521910 8401 Wastewater 2031 CIP Sewer Pipeline & Manhole Replacement Project Wastewater Fund - - - - - - 1,500,000 1,500,000521910 8401 Wastewater Sewer Pipeline Upsizing Project - Brockton Ave Wastewater Fund - - - - 500,000 - - 500,000 521910 8401 Wastewater Sewer Pipeline Upsizing Project - Cajon St at Citrus Ave Wastewater Fund - - - 141,000 - - - 141,000521910 8401 Wastewater Sewer Pipeline Upsizing Project - Cajon Street (Cypress to Fern) Wastewater Fund - - - 827,000 - - - 827,000 521910 8501 Wastewater Brine Cap Solar Panel Replacement Wastewater Fund - - - - 650,000 - - 650,000 521910 8501 Wastewater Secondary Clarifier #2 Refurbish Wastewater Fund - - - 1,200,000 - - - 1,200,000 521910 8501 Wastewater Wastewater Treatment Plant Upgrade Phase 2 SRF Loan - Debt Financing 45,644,582 - - - - - - 45,644,582 Total Wastewater Fund 48,344,582 3,200,000 - 3,668,000 2,650,000 1,500,000 1,500,000 60,862,582 562900 8501 Cemetery Cemetery Mausoleums Roof Replacement (2) roofs needing replacement Cemetery Fund 500,000 - - - - - - 500,000 562900 8501 Cemetery Restore Historic Stone Cut Curbing (NORTH END) Cemetery Fund - 75,000 - - - 150,000 - 225,000 562900 8501 Cemetery Wrought Iron Fence Cemetery Fund - - - 250,000 - - - 250,000 Total Cemetery Fund 500,000 75,000 - 250,000 - 150,000 - 975,000 607900 8501 Fleet Fuel Island Rehabilitation Equipment Maintenance Fund 875,000 - - - - - - 875,000 Total Equipment Maintenance Fund 875,000 - - - - - - 875,000 Grand Total Other Funds 154,524,582 37,141,000 - 36,974,438 26,757,753 25,426,282 40,710,143 321,534,198 Total CIP All Funds 155,744,812 37,141,000 17,145,000 43,969,438 33,407,753 30,326,282 43,510,143 344,099,428 Cemetery Fund
Water Fund
Wastewater Fund
Solid Waste Fund
Equipment Maintenance Fund
Attachment F - 6-Year Capital Improvement Plan (CIP)

ATTACHMENT G

CAPITAL OUTLAY

GENERAL FUND

DEPARTMENT / DIVISION / PROJECT ORG OBJECT DESCRIPTION
2025-26
12-MONTH

ESTIMATED
2026-27

CITY MANAGER

RECOMMENDED
2027-28

CITY MANAGER

RECOMMENDED
FY 2027 & FY 2028

UNFUNDED
AMOUNT

EXPENDITURE
TYPE
GENERAL FUND (101)
Library 101190 8501 Carpet Replacement Throughout Library 250,000 Capital Outlay Library 101190 8501 Contemporary Club Remodel and New Roof 1,500,000 CIP ProjectLibrary 101190 8503 Library Reference Basement Overhaul 5,100,000 CIP ProjectLibrary 101190 8503 Contemporary Club Entrance Door Replacement and ADA Upgrade 15,000 Capital OutlayLibrary 101190 8706 Bookmobile Purchase 200,000 Capital Outlay Total - - - 7,065,000
Support Services 101202 8501 PD Wellness Facility ( Donations) 70,000 CIP ProjectSupport Services 101202 8706 PD Wellness Facility ( Donations) 180,000 CIP Project Total - 250,000 - -
Fire Suppression 101250 8501 Restroom Tile Replacement 151,553 Capital OutlayFire Suppression 101250 8501 Fuel Tank at Fire Station 263 700,000 CIP ProjectFire Suppression 101250 8503 Fire Station Bay Door Replacement 491,595 CIP ProjectFire Suppression 101250 8503 Fire Station 262 Remodel 26,232 Capital OutlayFire Suppression 101250 8503 Fire Station 261 Mini Split Unit 8,913 Capital OutlayFire Suppression 101250 8503 New Fire Station Design 900,000 CIP ProjectFire Suppression 101250 8704 Water Tender And Type 3 Brush Engine 1,331,773 Capital OutlayFire Suppression 101250 8704 Big Bear Ambulance 20,000 Capital OutlayFire Suppression 101250 8704 Vehicle Outfitting (Apple Valley Fire Department) 250,000 Capital OutlayFire Suppression 101250 8704 Incident Support Apparatus 800,000 Capital OutlayFire Suppression 101250 8704 Paramedic Squad 400,000 Capital OutlayFire Suppression 101250 8706 Fire Station 263 Generator 225,000 Capital OutlayFire Suppression 101250 8706 Fire Station 262 Generator 6,632 Capital OutlayFire Suppression 101250 8706 UAS Drone Program - DJI Matrice 30T Combo 12,000 Capital OutlayFire Suppression 101250 8706 UAS Drone Program - Mavic 3Ts 26,000 Capital OutlayFire Suppression 101250 8706 UAS Drone Program - DJI Thermal Combo 10,000 Capital Outlay Total 1,300,000 2,511,698 - 1,548,000
FCS Admin 101300 8001 Property Transfer Agreement with Redlands Historical Museum Assoc 25,304 Capital OutlayFCS Admin 101300 8706 Ed Hales Gazebo 50,000 Capital Outlay Building Maintenance 101301 8501 Library HVAC Design and installation 15,000 Capital OutlayBuilding Maintenance 101301 8501 Redlands Bowl Sink Plumbing 25,000 Capital OutlayBuilding Maintenance 101301 8501 Annex HVAC Design/Replacement 1,015,000 CIP ProjectBuilding Maintenance 101301 8501 Library, Lincoln Shrine and Contemporary Club Roof Replacement 750,000 CIP ProjectBuilding Maintenance 101301 8501 Community Center Senior Nutrition Roof Replacement 700,000 CIP ProjectBuilding Maintenance 101301 8501 Joslyn Center roof (Donations) 225,000 CIP ProjectBuilding Maintenance 101301 8706 Scissor Lift 50,000 Capital Outlay Parks 101303 8501 Texonia Renovations 1,648,746 CIP ProjectParks 101303 8501 Freeway Frontage Landscape 90,000 Capital OutlayParks 101303 8501 Bleachers at Martinez Park, Crafton Park, Israel Beal Park 200,000 Capital OutlayParks 101303 8501 Pump Track at the Skate Park 350,000 CIP ProjectParks 101303 8501 Prospect Park Sewell Theatre Fencing and Doors 170,000 CIP ProjectParks 101303 8501 Redlands Bowl Security Fencing (Behind Procellis) 100,000 CIP ProjectParks 101303 8501 Martinez Park Booster Pumps 25,000 Capital OutlayParks 101303 8501 Park playground renovation 1,000,000 CIP ProjectParks 101303 8501 Smiley Park Restroom Renovation 800,000 CIP ProjectParks 101303 8501 Sylvan Park Restroom Renovation 95,230 CIP ProjectParks 101303 8503 Ford Park Renovations 660,022 CIP ProjectParks 101303 8503 Citywide Park Furnishing Replacement 50,000 Capital OutlayParks 101303 8503 Citywide Playground Structure Replacement 120,000 Capital OutlayParks 101303 8602 Ford Park Restroom Renovation 243,718 CIP Project Streets 101304 8501 State St bulb outs rehabilitation 225,000 Capital OutlayStreets 101304 8501 Streets Facilities Upgrades ( crew room, kitchen, and restroom) 50,000 CIP ProjectStreets 101304 8501 Sidewalk rehab around the Citrus Center 150,000 CIP Project Fire Department
Facilities & Community Services
Library
Police

ATTACHMENT G

CAPITAL OUTLAY

GENERAL FUND

DEPARTMENT / DIVISION / PROJECT ORG OBJECT DESCRIPTION
2025-26
12-MONTH

ESTIMATED
2026-27

CITY MANAGER

RECOMMENDED
2027-28

CITY MANAGER

RECOMMENDED
FY 2027 & FY 2028

UNFUNDED
AMOUNT

EXPENDITURE
TYPE
Streets 101304 8501 Overhead Street Sign Replacement 250,000 Capital OutlayStreets 101304 8704 Heavy Duty Dump Flat Bed 170,000 Capital OutlayStreets 101304 8704 Two Ford F-750 Flatbed Trucks 410,813 Capital OutlayStreets 101304 8704 Water Truck 200,000 Capital OutlayStreets 101304 8706 Meridian Barrier Gate System 60,000 Capital Outlay Trees 101305 8704 Tree Crew Wheel Loader 173,250 Capital Outlay Recreation and Senior Services 101309 8501 Carriage House Improvements 100,000 CIP ProjectRecreation and Senior Services 101309 8501 Community Center Game room Renovation 1,460,000 CIP ProjectRecreation and Senior Services 101309 8706 Joslyn HVAC Replacement(Donations) 71,173 Capital Outlay Animal Services 101311 8501 Dog Kennel Construction 693,700 CIP ProjectAnimal Services 101311 8501 Animal Shelter Isolations Room (Donations) 110,000 CIP ProjectAnimal Services 101311 8501 Animal Shelter Pavement Repair 28,900 Capital OutlayAnimal Services 101311 8501 Pest Control Netting Installment 20,000 Capital OutlayAnimal Services 101311 8501 Isolation & Holding Area Kennels 15,000 Capital OutlayAnimal Services 101311 8502 Dog Kennel Structure 275,000 Capital Outlay Total $ 520,230 4,682,072 $ - $ 7,643,250 $
Engineering 101400 8403 Citywide Sidewalk/ADA Ramps 529,406 CIP ProjectEngineering 101400 8403 2027 Alley Resurfacing Project 500,000 CIP ProjectEngineering 101400 8403 2026 Alley Resurfacing Project 500,000 CIP ProjectEngineering 101400 8501 Traffic & Parking Commission Recommended Projects 200,000 CIP ProjectEngineering 101400 8501 2027 Sidewalks and ADA Ramps Replacement Project 1,000,000 CIP ProjectEngineering 101400 8501 2026 Sidewalks and ADA Ramps Replacement Project 1,000,000 CIP Project Total $ - 529,406 $ - $ 3,200,000 $
Total General Fund (101) 1,820,230 7,973,176 - 19,456,250 Municipal Utilities and Engineering Department

ATTACHMENT G

CAPITAL OUTLAY

OTHER FUNDS
DEPARTMENT / DIVISION / PROJECT PROJECT LEDGER ORG OBJECT DESCRIPTION 2025-26 12-MONTH ESTIMATED 2026-27 CITY MANAGER RECOMMENDED 2027-28 CITY MANAGER RECOMMENDED EXPENDITURE TYPE GOVERNMENTAL GRANTS FUND (200)
Development Services F164069 200164 8501 Sylvan Park Renovation 279,770 CIP Project Development Services F164058 200164 8503 FY23/24 Joslyn Senior Center Rehab Ph II 252,229 CIP ProjectDevelopment Services F164010 200164 8503 Joslyn Senior Center Rehab Project 19,777 CIP ProjectDevelopment Services F164061 200164 8503 Redlands Senior Ctr Kitchen Rehab. 273,468 CIP ProjectDevelopment Services F164064 200164 8706 HVAC Units at Joslyn Senior Center 133,300 Capital Outlay Library S190001 200190 8503 A.K. Smiley Public Library Lower Level Revive Project 547,761 CIP Project Police S202004 200202 8706 Police Equipment 46,594 Capital Outlay Fire F250040 200250 8706 Mobile Radios 14,501 Capital Outlay Parks S303012A/B 200303 8501 Texonia Park Improvements 221,685 CIP Project Engineering F400032 200400 8501 Redlands Regional Connector (South) Project 194,697 CIP ProjectEngineering S400028 200400 8501 Cycle 11-1 Traffic Signal @ San Bernardino Ave & Church St 538,600 CIP ProjectEngineering S400029 200400 8501 Cycle 11-2 Signalized Intersections Improvements 202,000 Capital OutlayEngineering S400021 200400 8501 HSIP Cycle 10-Crosswalk Enhancement 234,800 Capital OutlayEngineering S400034 200400 8501 HSIP Cycle12 Traffic Signal @ Cypress & Cajon 900,000 CIP Project Total Governmental Grants Fund (200) $ - 3,859,182 $ - $ PAVEMENT ACCELERATED REPAIR IMPLEMENTATION STRATEGY FUND (PARIS) (211) PARIS Projects 211013 211910 8403 2025 Pavement Management Plan 5,564,574 CIP Project PARIS Projects 211014 211910 8501 2025 Alley Paving 500,000 CIP ProjectPARIS Projects NEW 211910 8403 PMP 2026 Street Resurfacing Project 3,000,000 CIP ProjectPARIS Projects NEW 211910 8403 PMP 2027 Street Resurfacing Project 3,500,000 CIP ProjectPARIS Projects NEW 211910 8501 2026 Alley Resurfacing Project 500,000 CIP ProjectPARIS Projects NEW 211910 8501 2027 Alley Resurfacing Project 500,000 CIP Project Total PARIS Fund (211) $ 3,500,000 6,064,574 $ 4,000,000 $ AIR QUALITY IMPROVEMENT FUND (221)
Air Quality Improvement 221400 8706 Changeable Signs and Mobile Radar Detection 50,000 Capital Outlay Total Air Quality Improvement Fund (221) $ - 50,000 $ - $ TRANSPORTATION DEVELOPMENT ACT FUND (241)
Transportation Development Act S241006 241400 8405 Orange Blossom Trail Phase IV 1,228,500 CIP Project Total Asset Forfeiture Fund (246) $ - 1,228,500 $ - $
PARKS AND OPEN SPACE FUND (250)
Parks and Open Space 250400 8501 Coyazo Park Crows Nest & Building 400,000 CIP Project Parks and Open Space 250400 8501 Texonia Park Improvements 220,000 CIP ProjectParks and Open Space 250400 8501 Ford Park Improvements 135,660 CIP ProjectParks and Open Space 250400 8501 Sylvan Park Restroom Renovation 375,000 CIP Project Total Parks and Open Space Fund (250) $ 375,000 755,660 $ - $ PUBLIC FACILITY DEVELOPMENT (251)
Public Facilities 251400 8503 New Fire Station Design 600,000 CIP Project Total Public Facility Development (251) $ 600,000 - $ - $

ATTACHMENT G

CAPITAL OUTLAY

OTHER FUNDS
DEPARTMENT / DIVISION / PROJECT PROJECT LEDGER ORG OBJECT DESCRIPTION 2025-26 12-MONTH ESTIMATED 2026-27 CITY MANAGER RECOMMENDED 2027-28 CITY MANAGER RECOMMENDED EXPENDITURE TYPE ARTERIAL STREET CONSTRUCTION FUND (252)
Arterial Street Construction 252002 252400 8501 Cal St & Rdl Blvd Intersec Widening 4,400,000 CIP Project Arterial Street Construction 252001 252400 8403 Citrus Avenue Widening Project - Dearborn to Wabash 1,500,000 CIP ProjectArterial Street Construction 252003 252400 8501 California Street & Lugonia Avenue Widening Project 1,350,000 CIP ProjectArterial Street Construction New 252400 8501 Citrus Avenue and Redlands High School Underpass Project 1,500,000 CIP ProjectArterial Street Construction New 252400 8501 Highland/Redlands Regional Gap Connector Project 500,000 CIP Project Total Arterial Street Construction Fund (252) $ 3,350,000 4,400,000 $ 1,500,000 $ TRAFFIC SIGNALS FUND (253)
Traffic Signals NEW 253400 8501 Traffic Signal Improvement at University St & Colton Ave 780,000 120,000 CIP Project Traffic Signals NEW 253400 8501 Traffic Signal Improvement at Wabash Ave & Citrus Ave 136,000 CIP ProjectTraffic Signals NEW 253400 8501 Traffic Signal Improvements at Dearborn Ave & Citrus Ave 750,000 120,000 CIP Project Total Traffic Signals Fund (253) $ 240,000 - $ 1,666,000 $ FREEWAY INTERCHANGES FUND (254)
Freeway Interchange 254002 254400 8403 I-10 Alabama Ramp Improvements $ 23,708 CIP Project Total Freeway Interchanges Fund (254) $ - 23,708 $ - $
STORM DRAIN CONSTRUCTION FUND (405)
Storm Drain Construction 405004 405400 8404 Redlands Country Cub Drainage 83,094 CIP Project Storm Drain Construction 405004 405400 8404 Judson Street Storm Drain Improvement 500,000 CIP Project Total Storm Drain Construction Fund (405) $ 500,000 83,094 $ - $ SAFETY/CITY HALL REPLACEMENT FUND (406)
Safety Hall Replacement 406001 406501 8501 Holt Architects Inc-Safety Hall Design & Construction Management Services 2,614,850 CIP Project Safety Hall Replacement 406001 406501 8503 Redlands Police Department Safety Hall-Phase 1 3,494,000 CIP ProjectSafety Hall Replacement C300009 406501 8501 Miller Architecture Corp-New City Hall Design and Construction Mgt Services 804,822 CIP ProjectSafety Hall Replacement C300009 406501 8503 Construction Projects @ 300 State S 16,145,666 CIP Project Total Safety/City Hall Replacement Fund (406) $ - 23,059,338 $ - $ WATER FUND (501)
Water Operations 501900 8501 AWIA Improvements 500,000 CIP Project Water Operations 501900 8704 Maintenance & Distribution Fleet Needs 388,500 Capital OutlayWater Operations 501900 8705 Joint Utility Lab Improvements 65,000 CIP Project Water Projects and Grants 501032 501910 8402 Highline Replacement 4,475,911 CIP ProjectWater Projects and Grants 501040 501910 8402 Tate Transmission 63,215 CIP ProjectWater Projects and Grants 501063 501910 8402 2023 & 2024 Water CIP 6,495,375 CIP ProjectWater Projects and Grants 501055 501910 8402 Sunset Reservoir Replacement 882,067 CIP ProjectWater Projects and Grants 501066 501910 8402 Recycled Water for Cali St Orange 412,306 CIP ProjectWater Projects and Grants 501028 501910 8501 Fixed Gen-5Th Ave,Texas St,Cntry 4,632,521 CIP ProjectWater Projects and Grants 501048 501910 8501 Laboratory Expansion 2,127,313 CIP ProjectWater Projects and Grants 501065 501910 8501 AWIAS Security Fencing 2,143,896 CIP ProjectWater Projects and Grants 501048 501910 8503 Laboratory Expansion 10,885 Capital OutlayWater Projects and Grants 501028 501910 8706 Fixed Generator - 5th Ave,Texas St,Cntry Cl 907,479 CIP ProjectWater Projects and Grants 501006 501910 8706 Water SCADA System Upgrade 1,765,368 CIP ProjectWater Projects and Grants 501009 501910 8501 Hinckley Sludge Press 3,815,000 735,481 CIP Project Water Operations NEW 501900 8704 (1) F-550 Flat Rack Dump Truck, (1) F-550 Valve Truck 388,500 370,000 Capital Outlay Water Projects and Grants 521028/501048 501910 6106/8501 Joint Utilities Laboratory Renovation & Expansion Project 1,700,000 1,700,000 CIP ProjectWater Projects and Grants 501054 501910 6106/8402 Well Drilling Project 1,000,000 1,000,000 CIP ProjectWater Projects and Grants NEW 501910 8402 2026 CIP Water Pipeline Replacement Project 4,500,000 CIP ProjectWater Projects and Grants NEW 501910 8402 2027 CIP Water Pipeline Replacement Project 4,500,000 CIP ProjectWater Projects and Grants 501044 501910 8402 Wellhead Perchlorate Treatment - Well 38 & 39 4,500,000 CIP ProjectWater Projects and Grants 501067 501910 8501 Hinckley WTP Parking Lot Improvements 975,000 CIP Project Total Water Fund (501) $ 12,360,000 25,605,318 $ 12,088,500 $

ATTACHMENT G

CAPITAL OUTLAY

OTHER FUNDS
DEPARTMENT / DIVISION / PROJECT PROJECT LEDGER ORG OBJECT DESCRIPTION 2025-26 12-MONTH ESTIMATED 2026-27 CITY MANAGER RECOMMENDED 2027-28 CITY MANAGER RECOMMENDED EXPENDITURE TYPE SOLID WASTE FUND (511)
Solid Waste Projects and Grants 511005 511910 8704 CNG Vehicle Purchases 3,464,969 Capital Outlay Solid Waste Projects and Grants 511005 511910 8704 Landfill Scraper 1,200,000 Capital OutlaySolid Waste Projects and Grants 511010 511910 8501 Landfill Phase 5 Expansion 3,500,000 183,034 CIP ProjectSolid Waste Projects and Grants 511010 511910 8501 CQA for the Phase 5 Landfill Expansion Project 500,000 CIP ProjectSolid Waste Projects and Grants 511011 511910 8501 Landfill Gas Flare System 1,609,626 CIP ProjectSolid Waste Projects and Grants NEW 511910 8501 Solid Waste office/breakroom, locker remodel 250,000 CIP ProjectSolid Waste Projects and Grants NEW 511910 8704 Solid Waste Vehicle Replacements 1,736,438 - Capital OutlaySolid Waste Projects and Grants NEW 511910 8704 ZEV Vehicles and Infrastructure 3,300,000 2,000,000 Capital Outlay Total Solid Waste Fund (511) $ 6,250,000 6,457,628 $ 5,036,438 $ WASTEWATER SERVICE FUND (521)
Wastewater Operations 521900 8501 Modular Office 125,000 CIP Project Wastewater Operations 521900 8705 Laboratory Equipment 65,000 Capital Outlay Wastewater Projects and Grants 521038 521910 8401 Hillside Project 214,557 CIP ProjectWastewater Projects and Grants 521033 521910 8401 Recycled Water For Ca St Orange Gro 71,596 CIP ProjectWastewater Projects and Grants 521040 521910 8401 2025 CIP Sewerline Replacement & Manhole 1,367,514 CIP ProjectWastewater Projects and Grants NEW 521910 8401 2026 CIP Sewer Pipeline & Manhole Replacement Project 1,000,000 CIP ProjectWastewater Projects and Grants NEW 521910 8401 2027 CIP Sewer Pipeline & Manhole Replacement Project 1,500,000 CIP ProjectWastewater Projects and Grants 521003 521910 8401 Alabama Septage Pond Remediation 50,000 650,000 Capital OutlayWastewater Projects and Grants NEW 521910 8401 WWTP Drying Bed Leachate Remediation 500,000 Capital OutlayWastewater Projects and Grants 521037 521910 8501 Concrete Steps 50,000 CIP ProjectWastewater Projects and Grants 521028 521910 8501 Joint Utilities Laboratory Design & Construction (Phases) 2,133,175 CIP ProjectWastewater Projects and Grants 521034 521910 8501 WWTP Rehabilitation - Phase 2 93,868 CIP ProjectWastewater Projects and Grants 521028/501048 521910 6106/8501 Joint Utilities Laboratory Renovation & Expansion Project 1,700,000 1,700,000 CIP ProjectWastewater Projects and Grants 521034 521910 8501 Wastewater Treatment Plant Implementation Phase 2 - 45,644,582 CIP ProjectWastewater Projects and Grants NEW 521910 8501 WWTP Landscaping Improvement 200,000 Capital OutlayWastewater Projects and Grants NEW 521910 8503 Maintenance Building Upgrade 150,000 Capital OutlayWastewater Projects and Grants 521036 521910 8706 A Basin RTC Replacement 33,171 Capital Outlay Total Waste Water Service Fund (521) $ 48,994,582 4,153,881 $ 4,100,000 $ NONPOTABLE WATER SERVICE FUND (531)
Nonpotable Projects and Grants S531021 531910 8405 Prop 1 Rnd 1 Orange Grv Irrigation 29,927 Capital Outlay Total Nonpotable Water Service Fund (531) $ - 29,927 $ - $ NONPOTABLE WATER CAPITAL IMPROVEMENT FUND (532)
Nonpotable Capital Improvement Fund 532002 532920 8402 Recycled Water System Expansion 144,580 CIP Project Total Groves Fund (532) $ - 144,580 $ - $

GROVES FUND
Groves Projects 538025 538910 8001 England Grove Purchase 91,684 CIP Project Total Nonpotable Water Service Fund (531) $ - 91,684 $ - $ CEMETERY FUND (562)
Cemetery Operations 562900 8501 Plot Expansion 43,000 Capital Outlay Cemetery Operations 562900 8501 Cemetery Mausoleums Roof Replacement (2) roofs needing replacement 500,000 CIP ProjectCemetery Operations 562900 8501 Public Restroom Design 40,000 Capital OutlayCemetery Operations 562900 8501 Restore Historic Stone Cut Curbing (NORTH END) 75,000 CIP ProjectCemetery Operations 562900 8602 Survey and Mapping for New Developed Areas 57,000 CIP Project Total Cemetery Fund (562) $ 500,000 100,000 $ 115,000 $ INNOVATION & TECHNOLOGY FUND (604)
Innovation & Technology Operations 604900 8703 Computer Equipment $ 70,344 Capital Outlay Innovation & Technology Operations 604900 8703 Network Storage (NAS) 20,000 Capital Outlay Total Innovation & Technology Fund (604) $ 20,000 70,344 $ - $ EQUIPMENT MAINTENANCE FUND (607)
Equipment Maintenance Operations 607900 8501 Vehicle Exhaust System $ 48,000 Capital Outlay Equipment Maintenance Operations 607900 8706 Toyota Forklift 82,052 Capital OutlayEquipment Maintenance Operations 607900 8501 Fuel Island Rehabilitation 875,000 CIP ProjectEquipment Maintenance Operations 607900 8704 F-750 Service Truck 200,000 Capital Outlay Equipment Maintenance Fund (607) $ 1,075,000 130,052 $ - $

ATTACHMENT G

CAPITAL OUTLAY

OTHER FUNDS
DEPARTMENT / DIVISION / PROJECT PROJECT LEDGER ORG OBJECT DESCRIPTION 2025-26 12-MONTH ESTIMATED 2026-27 CITY MANAGER RECOMMENDED 2027-28 CITY MANAGER RECOMMENDED EXPENDITURE TYPE UTILITY BILLING FUND (608)
Utility Billing 608900 8706 Payment Kiosk for State Street through the wall 80,000 Capital Outlay Utility Billing 608900 8706 Payment Kiosk for State Street Lobby 60,000 Capital Outlay Total Utility Billing Fund (608) $ 140,000 - $ - $
Total Other Funds $ 77,904,582 76,307,471 $ 28,505,938 $ City Council AGENDA ITEM NO. N3.

DATE: June 16, 2026
TO: Honorable Chair and Members of the Board of Trustees SUBJECT: Approve the regular minutes of the Redlands Public Improvement Corporation of March 17, 2026 (City Clerk Donaldson)
MOTION:

I move to approve the regular meeting minutes of March 17, 2026.

Attachments
031726 CC-RPIC.pdf

MINUTES
Regular meetings of the City Council and the Redlands Public Improvement Corporation of the City of Redlands held in the Council Chambers, Civic Center, 35 Cajon Street, on Tuesday, March 17, 2026 at 5:00 P.M.

Present: Mario Saucedo, Mayor
Marc Shaw, Mayor Pro Tempore
Paul Barich, Council Member
Eddie Tejeda, Council Member
Denise Davis, Council Member
Staff:

Charles M. Duggan, Jr., City Manager; Yvette M. Abich Garcia, City Attorney; Jeanne Donaldson, City Clerk; Phillip Doolittle, City Treasurer; Janice McConnell, Assistant City Manager; Chris Boatman, Assistant City Manager; Carl Baker, Public Information Officer; Danielle Garcia, Management Services/Finance Director; Rich Sessler, Fire Chief; Sean Flynn, Police Commander; Tabitha Crocker, Facilities and Community Services Director; Robert Meteau, HR/Risk Management Director; Ray Casey, Interim Municipal Utilities and Engineering Director; Sean Reilly, Development Services Director
A. Call City Council Meeting to Order
Mayor Saucedo called the meeting to order and explained that comments could be presented in-person, via Zoom, via cell phone or landline. He offered the public an opportunity to provide comment on any item on the agenda for the closed session.

B. Public Comment
There was no public comment.

C. Recess City Council Meeting to a Closed Session

1. Performance Evaluations of Public Employees – Government Code §54957(b)(1) Position: City Manager

2. Conference with labor negotiator - Government Code §54957.6 Staff requested Item C.2 be removed from the Closed Session agenda. Consideration of this matter will be scheduled for a future meeting.

3. Conference with legal counsel: Existing Litigation - Government Code §54956.9(d)(1) (City Attorney Garcia) D. Reconvene City Council Meeting at 6:00 p.m.

Mayor Saucedo reconvened the meeting at 6:00 P.M. He announced the City Council agreed to continue Closed Session discussion and to reconvene Closed Session following the conclusion of the City Council meeting.

E. Invocation by Mayor Pro Tem Shaw - Pledge of Allegiance by Kingsbury Elementary School F. Closed Session Report
See below.

G. Presentations
In honor of Cesar E. Chavez, Mayor Saucedo read aloud from the official proclamation declaring March 31, 2026 as Cesar E.

Chavez Day in Redlands.

H. Public Comment
Burro Attacks - Dorre Yamashiro raised attention to a series of mutilations in the wild burro population that live in San Timoteo and Reche Canyon areas. The injuries sustained have been catastrophic and there is a reward for information leading to the capture of those committing these crimes. She urged the City to partner with Donkeyland, a sanctuary for burros, to protect these animals.

I. Consent Calendar

1. Approve minutes of the regular meeting March 3, 2026 On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, approved the regular meeting minutes of March 3, 2026.

Vote: 5 - 0 Passed

2. Authorize issuance of a proclamation declaring March 31, 2026, as Cesar E. Chavez Day On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, authorized the issuance of a proclamation declaring March 31, 2026, as Cesar E. Chavez Day.

Vote: 5 - 0 Passed

3. Approve the purchase of a 2014 Chevrolet Van Ambulance from the Big Bear Fire Authority in the amount of $20,000 and approve a supplemental appropriation for the same amount from the General Fund unassigned fund balance On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, approved the purchase of the 2014 Chevrolet Van Ambulance from the Big Bear Fire Authority in the amount of $20,000, and authorize the City Manager to execute all necessary documents to complete the transaction; and approved an additional appropriation in the amount $20,000 from the unassigned fund balance in the General Fund to cover the cost of the purchase.

Vote: 5 - 0 Passed

4. Adopt Resolution No. 8756 dissolving the Redlands Financing Authority and terminating the Joint Exercise of Powers Agreement dated May 1, 1999
On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, adopted Resolution No. 8756 dissolving the Redlands Financing Authority (RFA); and approved the termination of the Joint Exercise of Powers Agreement dated May 1, 1999 creating the RFA.

Vote: 5 - 0 Passed

5. Approve the Termination of License Agreement with Avis Budget Car Rental, LLC for the use of 30 parking spaces on City-owned property located at 1625 W. Redlands Blvd. and Authorize the City Manager or designee to sign the Letter of Termination of a License Agreement
On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, terminated the License Agreement with Avis Budget Car Rental; and authorized the City Manager or designee to sign the Letter of Termination of a License Agreement with Avis Budget Car Rental.

Vote: 5 - 0 Passed

6. Approve a $50,000 contribution for the 2026 Fourth of July Celebration to the Redlands 4th of July Committee and determine that the financial support serves a public benefit and approve the additional appropriation in the amount of $50,000
On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, approved a contribution of $50,000 for the 2026 Fourth of July Celebration to the Redlands 4th of July Committee and determine that the financial support serves a public benefit; and approved the additional appropriation in the amount of $50,000.

Vote: 5 - 0 Passed
J. Communications

1. Discussion and possible action relating to the designation of Voting Delegates to represent the City at the 2026 Regional Conference of the Southern California Association of Governments (SCAG) and General Assembly Mayor Saucedo opened the discussion to consider designating a Voting Delegate to represent the City.

On motion of Mayor Saucedo, seconded by Council Member Barich, the City Council unanimously designated, by roll call vote, Mayor Pro Tem Shaw to serve as the voting delegate at the 2026 Regional Conference of the Southern California Association of Governments (SCAG); and designated Council Member Davis to serve as the alternate voting delegate at the 2026 Regional Conference of SCAG.

Vote: 5 - 0 Passed

2. Annual Report of the Cultural Arts Commission given by Chairman Daniel Gohman Chairman Daniel Gohman provided the Annual Report of the Cultural Arts Commission, identifying Commission members and the Commission's Mission and Initiatives. These include efforts to collaborate and promote public interest in the arts, recommend new art programs, and recommend policies to encourage, develop, and support the Arts in Redlands. Initiatives consist of the Art on Loan Program, Artlands REACH (Regional Eco-Arts Community Hub), Artist-In-Residency Program and the Community Garden at Sylvan Park. In collaboration with the City's consultant, the Commissioners dedicated significant time and effort to the development and approval of the Art and Culture Master Plan. He provided an overview of the plan's objectives and stated the plan has been proposed to the City Council for their final endorsement. Mayor Saucedo and Council Member Davis thanked Chair Gohman and expressed their appreciation of the Commission's work.

3. Receive and file the Annual Report from the Measure T Citizens' Oversight Committee for FY 2025 Chairwoman Ruth Cook and Committee Member Ed Millican presented the annual report of the Measure T Citizens' Oversight Committee for FY 2025. During FY 2025, the City collected $20,337,840 from Measure T sales tax, surpassing the budget estimate by about $194,840, which indicates a stable local economy. The Measure T Citizens' Oversight Committee reviewed the City Manager's Proposed Budget and confirmed that funds were spent according to budget plans. The review included updates on homelessness initiatives, infrastructure improvements, public safety staffing, and park enhancements. The Committee recognizes the importance of Measure T in supporting city services and infrastructure projects. Overall, the funds have been used as intended, with transparent information provided by City staff. The Committee appreciates the residents' support, which ensures stable funding for essential services and infrastructure improvements, and looks forward to continued progress.

Council Members thanked the Committee Members for their dedication and commitment to the City. The City Council agreed, without objection, to receive and file the annual report from the Measure T Citizens' Oversight Committee for FY 2025.

4. Receive and file FY 2026 Mid-Year General Fund Review Management Services/Finance Director Garcia gave a broad overview of the Mid-Year General Fund Budget for Fiscal Year 2026. She explained the review provided an opportunity to evaluate the City’s financial performance in the current fiscal year relative to the Adopted FY 2026 Budget, using actual results from the first seven months of FY 2026. She reviewed the recommendations, analyzed the financial outcomes from FY 2025, assessed the City’s current fiscal standing, and considered the broader economic conditions and other key factors that may influence the General Fund going forward. The City enters the second half of FY 2026 on solid financial footing. Through January 31, 2026, the City's revenues and expenditures are generally tracking consistent with historical seasonal patterns. No material year-end variances are currently anticipated.

Looking ahead, three significant commitments will define the City's near-term fiscal course. First, the City is entering into negotiations with all nine employee bargaining units, whose MOUs are approaching expiration. Combined with an ongoing Classification and Compensation Study, labor costs (the City's largest General Fund expenditure) will require careful and fiscally responsible deliberation. Second, construction of the long-awaited Safety Hall at 1625 W.

Redlands Boulevard, the former Kmart site, is scheduled to begin in July 2026, with completion anticipated in summer 2028. This investment marks a generational commitment to the Redlands Police Department and the community it serves. Third, formal deliberations and presentations to the City Council and public on the FY 2027 & 2028 Biennial Budget will begin in May and June 2026, providing the appropriate forum to address all emerging cost pressures in a structured and transparent manner.

Mayor Saucedo expressed his appreciation for the thorough presentation and report. The City Council agreed, without objection, to receive and file this report.

K. Public Hearings

1. Public Hearing to consider the following applications for an approximately 8.5-acre site located at the northeast corner of Lugonia Avenue and Tennessee Street within the Special Development (EV/SD) District of the East Valley Corridor Specific Plan (APNs: 0167-171-16-0000, 0167-171-11-0000, and 0167-171-12-0000), by applicant Regency Centers: a) Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program in accordance with Section 15074 of the California Environmental Quality Act b) Measure U Socio-Economic Cost/Benefit Study c) Amendment to the East Valley Corridor Specific Plan to remove the project site (8.5 acres) from the boundaries of Specific Plan 40 and remove the Special Development (EV/SD) District designation d) To change the zoning designation 8.5-acre project site from Special Development (EV/SD) District to General Commercial (C-3) District e) A site plan approval and architectural design review to construct a commercial shopping center with approximately 71,400 square feet of commercial space consisting of one major tenant grocery building (36,000 square feet), one drive-through restaurant building (3,900 square feet), four multitenant shop buildings (6,600 to 10,000 square feet) and related on-site and off-site improvements including a parking lot, driveways, landscaping, lighting, utilities and drainage improvements f) A Conditional Use Permit to establish a Type 21 (Off-Sale General) Alcoholic Beverage Control license for a proposed 36,000 square-foot grocery store and to construct and operate a 3,900 square foot drive-through restaurant g) A request to merge three parcels within the project site into one parcel totaling approximately 8.5 acres
Mayor Saucedo declared the meeting open as a public hearing and called on Development Services Director Sean Reilly, who detailed the applications for an approximately 8.5-acre site, located at the northeast corner of Lugonia Avenue and Tennessee Street, by applicant Regency Centers. On January 13, 2026, the Planning Commission reviewed the proposed project and voted 7 to 0 to adopt Resolution No. 1732, recommending the City Council approve the proposed entitlements for the project. Four conditions of approval were added to address the Commissioners' concerns related to vehicle circulation within the project, pedestrian access, and the proposed architecture of the drive-through facing Tennessee Street.

The proposal includes approximately 71,400 square feet of commercial space divided between six buildings, which includes a grocery store anchor tenant (36,000 sq. ft.), a drive-through building (3,900 sq. ft.) and four multi-tenant shops buildings ranging in size from 6,600 to 10,000 sq. ft. The project also includes related on-site and off-site improvements such as parking lot improvements, access driveways, landscaping, lighting, utilities and drainage improvements.

Mayor Saucedo expressed concerns regarding the traffic flow as vehicles would exit the development onto Tennessee Street, and recommended the Applicant explore the possibility of incorporating public art and include elements from the City's citrus heritage, to enhance the aesthetic appeal of the plain walls at the drive-through site. Mayor Pro Tem Shaw also offered his concerns related to traffic and wondered about adding a protected leftturn pocket.

Regency Centers Traffic Engineering Consultant Rawad Hani responded to Council Member questions and proposed the idea of prohibiting left turns when exiting onto Tennessee. Additionally, he suggested the implementation of traffic calming measures to improve safety and manage traffic flow effectively. Ray Kayacan, representing Regency Centers, mentioned that the project includes a comprehensive landscaping design intended to enhance the overall aesthetic appeal and break up the appearance of plain walls, and he expressed a willingness to incorporate public art into the design.

As public comment, John Malcolm wondered how the developer was addressing the limited electrical infrastructure capacity at this project location. Mr. Kayacan reported that the developer is actively engaged in discussions with Southern California Edison to address the issue of insufficient infrastructure capacity, and they are in the process of seeking an economically viable power source. With no further comments, Mayor Saucedo closed the public hearing.

On motion of Council Member Tejeda, seconded by Mayor Pro Tem Shaw, the City Council, by roll call vote, adopted Resolution No. 8752 to approve entitlements for the Regency Centers Redlands Marketplace project; and introduced Ordinance No. 3001. It was noted the Applicant would work with staff to incorporate public art for certain areas of the project.

Vote:  5 - 0 Passed

2. Public Hearing to Consider Resolution No. 8758 Overruling Objections and Proceeding with the Weed Abatement of Subject Properties
Mayor Saucedo declared the meeting open as a public hearing and called on Fire Chief Sessler for a report on Resolution No. 8758. Beginning in February, Community Risk Reduction staff conducted inspections of parcels throughout the City to identify fire hazards, finding approximately 130 parcels that required abatement. Notice was provided to each affected property owner, allowing 14 days to abate the nuisance. Property owners were advised that failure to comply would result in the City abating the property, with associated costs assessed against the property as a lien until paid. Resolution No. 8758 will authorize the City to proceed with abatement of the identified parcels found to be in violation. Continued abatement efforts mitigate the threat of wildland fires, which can overwhelm firefighting resources and contribute to the destruction of homes and property. With no further discussion, Mayor Saucedo closed the public hearing.

On motion of Mayor Pro Tem Shaw, seconded by Council Member Davis, the City Council, by roll call vote, adopted Resolution No. 8758, overruling objections and proceeding with the abatement of subject properties.

Vote: 5 - 0 Passed
L. New Business

1. Consideration of Resolution No. 8757 Updating the City's Fund Balance Policy and Rescission of Resolution No. 7346 Management Services/Finance Director Garcia presented Resolution No. 8757 adopting an updated Fund Balance Policy. Resolution No. 8757 adopts an updated Fund Balance Policy to clarify that certain General Fund surplus setasides are discretionary and subject to City Manager recommendation and City Council action. The proposed update is intended to clarify the policy framework and align the written language with the City’s established procedures, while maintaining consistency with GASB 54 fund balance classifications. Under the updated policy, year-end fund balance actions would continue to be implemented through City Council approval during the normal budget cycles.

On motion of Council Member Barich, seconded by Council Member Davis, the City Council, by roll call vote, approved Resolution No. 8757 adopting an updated Fund Balance Policy and rescinding Resolution No. 7346.

Vote: 5 - 0 Passed

2. Consideration of the recommendation for appointment of three (3) Trustees to the Board of the Redlands Public Improvement Corporation
Management Services/Finance Director Garcia explained that the Redlands Public Improvement Corporation (RPIC) is a California nonprofit public benefit corporation formed in 1985 to support public improvement financing and related municipal purposes. Its Bylaws were adopted in August 1985 and remain in effect. The Board is required to consist of three trustees, and the powers of the Corporation are exercised by that Board.

The City is currently advancing the construction of a new Redlands Police Department Safety Hall facility. As part of that process, the City is evaluating financing structures commonly used for municipal capital projects of this scale, including lease revenue bond or certificate of participation structures. Because the Corporation has not met in many years, all trustee positions are currently vacant. Pursuant to Article IV of the Bylaws, the Board must consist of three (3) trustees designated by the City Council.

Appointment of three trustees will allow the Corporation to:

Convene and organize,
Review its current Bylaws and update, as necessary,
Take action, if directed, in support of the Safety Hall financing.

On motion of Mayor Saucedo, seconded by Council Member Tejeda, the City Council, by roll call vote, appointed Mayor Pro Tem Shaw, Council Member Barich and Council Member Davis to serve as Trustees on the Board of the Redlands Public Improvement Corporation pursuant to its Bylaws.

Vote: 5 - 0 Passed

3. Consideration of Resolution No. 8767 Amending the Bylaws of the Redlands Public Improvement Corporation Management Services/Finance Director Garcia introduced Resolution No. 8767 Amending the Bylaws of the Redlands Public Improvement Corporation. The Redlands Public Improvement Corporation (RPIC) was originally established to assist the City in facilitating the financing of public capital improvements. As the City prepares to advance the Redlands Police Department Safety Hall (RPDSH) project, the RPIC may serve an important role in supporting a potential Certificates of Participation (COPs) financing structure. In order for the RPIC to function effectively in this capacity, certain updates to its governing bylaws are necessary to align its structure with the City’s current administrative framework and operational practices.

The most significant change relates to the composition of the Board of Trustees. Under the original bylaws adopted in 1985, the Corporation was governed by a three-member board appointed by the City Council for staggered threeyear terms. The amended bylaws instead provide that the members of the Redlands City Council shall serve ex officio as the members of the Board of Trustees, with each trustee’s term automatically tied to their service on the City Council. This change simplifies governance and ensures that the Corporation’s actions remain directly accountable to the City’s elected officials.

On motion of Mayor Pro Tem Shaw, seconded by Council Member Tejeda, the City Council, by roll call vote, adopted Resolution No. 8767.

Vote: 5 - 0 Passed

4. Consideration of a First Amendment to the Professional Services Agreement with Tilden-Coil Constructors, Inc., for Master Construction Management Services for State Street City Hall to increase the total agreement to an amount not to exceed $2,108,510, approval of an additional appropriation, and determination that this action is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act
Assistant City Manager Boatman explained the need for a First Amendment to the Professional Services Agreement with Tilden-Coil Constructors, Inc., for Master Construction Management Services for State Street City Hall to increase the total agreement to an amount not to exceed $2,108,510. In December 2024 City Council approved a Professional Services Agreement with Tilden-Coil Constructors, Inc. for Master Construction Management Services for State Street City Hall. Since that time, Tilden-Coil Constructors, Inc., has provided pre-construction evaluation of the designs as the development of the new City Hall Facility has progressed. The proposed First Amendment to the Agreement with Tilden-Coil Constructors reflects additional pre-construction services and associated cost adjustments resulting from an extended design period necessary to obtain fully biddable and approved construction documents.

On motion of Council Member Tejeda, seconded by Council Member Barich, the City Council, by roll call vote, determined that approval of the First Amendment to the Professional Services Agreement with Tilden-Coil Constructors, Inc., is exempt from environmental review pursuant to Section 15061(b)(3) of the State's guidelines implementing the California Environmental Quality Act; approved the First Amendment to the Professional Services Agreement with Tilden-Coil Constructors, Inc. for Master Construction Management Services for State Street City Hall to increase the total agreement to an amount not to exceed $2,108,510; and approved an additional appropriation of $745,152.

Vote: 5 - 0 Passed

5. Consideration of a First Amendment to the Purchase and Sale Agreement with Sartin Properties, LLC Assistant City Manager Boatman offered context surrounding the First Amendment to the Purchase and Sale Agreement with Sartin Properties, LLC, stating that on March 3, 2026, the City Council approved a Purchase and Sale Agreement with Sartin Properties, LLC for the sale of the property. The buyer has indicated that the intended use of the property will be agricultural. The proposed First Amendment to the Purchase and Sale Agreement increases the purchase price from $250,000 to $300,000 so that the purchase price aligns with the appraised value of the property. The amendment also provides that the City will pay customary closing costs associated with the transaction. All other terms of the previously approved agreement remain unchanged.

On motion of Council Member Barich, seconded by Council Member Tejeda, the City Council, by roll call vote, approved the First Amendment to the Purchase and Sale Agreement with Sartin Properties, LLC.

Vote: 5 - 0 Passed
M. Individual Council Member Announcements and/or Reports on Activities Council Members expressed their deep gratitude for everyone involved with the Community Day of Service held on Saturday at Ford Park. There were close to 600 people working, shoveling, digging, and raking, making the park look beautiful. A big thanks went to Redlands Kiwanis Club for feeding the hungry workers.

N. Adjournment
The City Council meeting recessed to continue Closed Session discussion at 7:24 P.M.

The City Council reconvened at 8:00 P.M..

Closed Session Report: City Attorney Garcia announced the following actions: C.1 - No reportable action; C.2 - The item was removed from the agenda; C.3 - No reportable action.

There being no further action required, the meeting adjourned at 8:01 P.M. The next regular meeting of the City of Redlands City Council will be held on April 7, 2026.

O. Redlands Public Improvement Corporation

1. Call regular meeting of the Board of Trustees of the Redlands Public Improvement Corporation Chair Saucedo opened the regular meeting of the Board of Trustees of the Redlands Public Improvement Corporation (RPIC) and offered the public an opportunity to address them on any subject within its jurisdiction, which is not already scheduled on the agenda.

2. Public Comment - Redlands Public Improvement Corporation There was no public comment.

3. Consideration of Resolution No. 2026-01 Amending Bylaws of the Redlands Public Improvement Corporation City Manager Duggan briefly reviewed Resolution No. 2026-01 amending and restating the Bylaws for the Redlands Public Improvement Corporation. The Redlands Public Improvement Corporation (“RPIC” or “Corporation”) is a nonprofit public benefit corporation established by the City of Redlands to assist the City in financing, acquiring, and constructing public improvements that benefit the health, safety, and welfare of the City and its residents. The Corporation may participate with the City in financing structures such as leases or other arrangements that support the delivery of municipal capital projects.

In connection with the potential use of the Corporation to support future municipal financing activities, Amended and Restated Bylaws for the Corporation were prepared. The amendments modernize the governance structure of the Corporation while maintaining the original organizational framework established when the Corporation was formed. Key updates include aligning the membership of the Board of Trustees with the members of the Redlands City Council, who will serve as ex officio, and designating the officers of the Corporation to correspond with existing City leadership positions, including the Mayor as Chair of the Board, the City Manager as President, the City Clerk as Secretary, and the City Treasurer as Treasurer.

The amended bylaws also clarify meeting procedures and administrative provisions, including establishing that the Board will hold at least one regular meeting annually and that all meetings will comply with the requirements of the Ralph M. Brown Act. These updates are intended to ensure that the Corporation can operate efficiently and transparently when needed to support City financing activities while maintaining alignment with the City’s governance structure. Adoption of the resolution will approve the Amended and Restated Bylaws and allow them to stand as the governing bylaws of the Corporation, subject to approval by the Redlands City Council as required by the bylaws.

On motion of Board Member Barich, seconded by Board Member Davis, the RPIC Board of Directors, by roll call vote, approved Resolution No. 2026-01 amending and restating the Bylaws for the Redlands Public Improvement Corporation.

Vote: 3 - 0 Passed

4. Adjourn Redlands Public Improvement Corporation
There being no further action required the meeting adjourned at 8:04 P.M. 1 I:\cmo\Resolutions\Resolution 2026-02.bm.06.02.2026.docx RESOLUTION NO. 2026-02

A RESOLUTION OF THE BOARD OF TRUSTEES OF THE REDLANDS

PUBLIC IMPROVEMENT CORPORATION APPROVING A GROUND

LEASE, A LEASE AGREEMENT, AN ASSIGNMENT AGREEMENT, A

TRUST AGREEMENT AND A PURCHASE AGREEMENT WITH RESPECT

TO THE EXECUTION AND DELIVERY OF CITY OF REDLANDS

CERTIFICATES OF PARTICIPATION, EVIDENCING PRINCIPAL IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $85,000,000 AND

AUTHORIZING RELATED ACTIONS
WHEREAS, the City of Redlands (the “City”) desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City, and the improvements thereto, consisting of the future police facility and site (the “Property”), to the Redlands Public Improvement Corporation (the “Corporation”) pursuant to a Ground Lease (such Ground Lease, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Ground Lease”); and
WHEREAS, the City will sublease the Property back from the Corporation pursuant to a Lease Agreement (such Lease Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Lease Agreement”); and
WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the execution and delivery, pursuant to a Trust Agreement, by and among U.S.

Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”), evidencing direct, fractional undivided interests in the base rental payments to be made by the City under the Lease Agreement (such Trust Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Trust Agreement”); and WHEREAS, in connection with the execution and delivery of the Trust Agreement, the Corporation proposes to assign substantially all of its rights in the Ground Lease and Lease Agreement to the Trustee pursuant to an Assignment Agreement (such Assignment Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Assignment Agreement”); and WHEREAS, BofA Securities, Inc. and Stifel, Nicolaus & Company, Incorporated, as counderwriters (the “Underwriters”), have submitted to the City and the Corporation a proposal to 2 I:\cmo\Resolutions\Resolution 2026-02.bm.06.02.2026.docx purchase the Certificates in the form of a Purchase Agreement (such Purchase Agreement, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the “Purchase Agreement”); and WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Ground Lease;
(b) the Lease Agreement;
(c) the Trust Agreement;
(d) the Assignment Agreement; and
(e) the Purchase Agreement; and
WHEREAS, the Board of Trustees of the Corporation (the “Board of Trustees”) desires to proceed to authorize the execution and delivery of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and delivery of the Certificates; WHEREAS, all acts, conditions and things required by the laws of the State of California to exist, to have happened and to have been performed precedent to and in connection with the consummation of the actions authorized hereby do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the Corporation is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such actions for the purpose, in the manner and upon the terms herein provided;

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE REDLANDS PUBLIC IMPROVEMENT CORPORATION AS FOLLOWS;
Section 1. The foregoing recitals are true and correct, and the Board of Trustees so finds and determines.

Section 2. The form of the Ground Lease, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Chair of the Board of Trustees, the President of the Corporation, the Secretary of the Corporation and the Treasurer of the Corporation, and such other officers of the Corporation as the President of the Corporation may designate (the “Authorized Officers”) is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the Corporation, to execute and deliver the Ground Lease in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Ground Lease by such Authorized Officer; provided, however, that the term of the Ground Lease shall not terminate later than May 1, 2057 (provided that such term may be extended as provided therein).

Section 3. The form of the Lease Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby 3 I:\cmo\Resolutions\Resolution 2026-02.bm.06.02.2026.docx directed, for and in the name and on behalf of the Corporation, to execute and deliver the Lease Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Lease Agreement by such Authorized Officer; provided, however, that (a) the aggregate amount of the principal components of the base rental payments payable under the Lease Agreement shall not exceed $85,000,000, (b) the term of the Lease Agreement shall not terminate later than May 1, 2057 (provided that such term may be extended as provided therein), and (c) the true interest cost applicable to the interest components of the base rental payments evidenced by the Certificates shall not exceed 5.00% per annum.

Section 4. The form of the Assignment Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the Corporation, to execute and deliver the Assignment Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Assignment Agreement by such Authorized Officer.

Section 5. The form of the Trust Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the Corporation, to execute and deliver the Trust Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Trust Agreement by such Authorized Officer.

Section 6. The execution and delivery of the Certificates evidencing principal in an aggregate amount not to exceed $85,000,000, payable in the years and in the amounts, and evidencing interest as specified in the Trust Agreement as finally executed, and with such additional or other series designations as may be approved by an Authorized Officer, are hereby authorized and approved.

Section 7. The form of the Purchase Agreement, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, is hereby approved. Each of the Authorized Officers is hereby authorized, and any one of the Authorized Officers is hereby directed, for and in the name and on behalf of the Corporation, to execute and deliver the Purchase Agreement in the form submitted to this meeting, with such changes, insertions and omissions as the Authorized Officer executing the same may require or approve, such requirement or approval to be conclusively evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided, however, that the underwriters’ discount for the sale of the Certificates shall not exceed 0.30% of the aggregate amount of principal evidenced by such Certificates.

Section 8. The Board of Trustees of the Corporation hereby approves the execution and delivery of any and all agreements, documents, certificates and instruments referred to herein with electronic signatures as may be permitted under the California Uniform Electronic 4 I:\cmo\Resolutions\Resolution 2026-02.bm.06.02.2026.docx Transactions Act and digital signatures as may be permitted under Section 16.5 of the California Government Code using DocuSign.

Section 9. The officers of the Corporation are, and each of them is, hereby authorized and directed, for and in the name of the Corporation, to do any and all things and to execute and deliver any and all agreements, documents, certificates and instruments that they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution.

Section 10. All actions heretofore taken by the officers and agents of the Corporation with respect to the Certificates, or in connection with or related to any of the agreements, documents, certificates or instruments referred to herein, are hereby approved, confirmed and ratified.

Section 11. This Resolution shall take effect immediately upon its adoption.

ADOPTED, SIGNED AND APPROVED this 16th day of June, 2026.

Mario Saucedo, Chair
ATTEST:

Jeanne Donaldson, Secretary
5 I:\cmo\Resolutions\Resolution 2026-02.bm.06.02.2026.docx I, Jeanne Donaldson, Secretary of the Redlands Public Improvement Corporation, hereby certify that the foregoing Resolution was duly adopted by the Board of Trustees at a regular meeting thereof, held on the 16th day of June, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

Jeanne Donaldson, Secretary
4148-8913-8020.3

TO BE RECORDED AND WHEN
RECORDED RETURN TO:

Orrick, Herrington & Sutcliffe LLP
2050 Main Street, Suite 1100
Irvine, California 92614-8255
Attention: Donald S. Field, Esq.

THIS TRANSACTION IS EXEMPT FROM CALIFORNIA DOCUMENTARY TRANSFER TAX PURSUANT TO SECTION 11929 OF THE CALIFORNIA REVENUE AND TAXATION CODE.

THIS DOCUMENT IS EXEMPT FROM RECORDING FEES PURSUANT TO SECTION 27383 OF THE CALIFORNIA GOVERNMENT CODE.

GROUND LEASE
by and between

CITY OF REDLANDS
and

REDLANDS PUBLIC IMPROVEMENT CORPORATION
Dated as of [_________] 1, 2026

TABLE OF CONTENTS
Page
i 4148-8913-8020.3
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION ...........................................................2 Section 1.01. Definitions.................................................................................................................2 Section 1.02. Rules of Construction ...............................................................................................2 ARTICLE II LEASE OF THE PROPERTY; RENTAL ......................................................................3 Section 2.01. Lease of Property ......................................................................................................3 Section 2.02. Rental........................................................................................................................3 ARTICLE III QUIET ENJOYMENT....................................................................................................3 ARTICLE IV SPECIAL COVENANTS AND PROVISIONS .............................................................3 Section 4.01. Waste.........................................................................................................................3 Section 4.02. Further Assurances and Corrective Instruments.......................................................4 Section 4.03. Waiver of Personal Liability.....................................................................................4 Section 4.04. Taxes.........................................................................................................................4 Section 4.05. Right of Entry ...........................................................................................................4 Section 4.06. Representations of the City.......................................................................................4 Section 4.07. Representations of the Corporation...........................................................................5 ARTICLE V ASSIGNMENT, SELLING AND SUBLEASING; TITLE TO PROPERTY ................5 Section 5.01. Assignment to Trustee; Third-Party Beneficiaries....................................................5 Section 5.02. Assignment, Selling and Subleasing.........................................................................5 Section 5.03. Restrictions on City...................................................................................................5 Section 5.04. Title to Property ........................................................................................................5 ARTICLE VI IMPROVEMENTS .........................................................................................................5 ARTICLE VII TERM; TERMINATION................................................................................................6 Section 7.01. Term..........................................................................................................................6 Section 7.02. Extension; Early Termination ...................................................................................6 Section 7.03. Action on Default......................................................................................................6 ARTICLE VIII MISCELLANEOUS........................................................................................................6 Section 8.01. Notices......................................................................................................................6 Section 8.02. Binding Effect...........................................................................................................7 Section 8.03. Partial Invalidity........................................................................................................7 Section 8.04. Amendments; Substitution and Release....................................................................7 Section 8.05. Governing Law .........................................................................................................8 Section 8.06. Execution in Counterparts.........................................................................................8 EXHIBIT A DESCRIPTION OF THE PROPERTY..................................................................................1 4148-8913-8020.3

GROUND LEASE
THIS GROUND LEASE (this “Ground Lease”), dated as of [_________] 1, 2026, is by and between the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), as lessor, and the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), as lessee.

W I T N E S S E T H:

WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to this Ground Lease, and the City will sublease the Property back from the Corporation pursuant to a Lease Agreement, dated as of the date hereof (the “Lease Agreement”); and WHEREAS, the Property is more particularly described in Exhibit A hereto; and WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to the Trust Agreement, dated as of the date hereof (the “Trust Agreement”), by and among U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments (the “Base Rental Payments”) to be made by the City under the Lease Agreement; and
WHEREAS, in order to provide for the execution and delivery of the Certificates, the Corporation desires to sell, assign and transfer to the Trustee, irrevocably and absolutely, without recourse, for the benefit of the owners of the Certificates, substantially all of its right, title and interest in and to this Ground Lease and the Lease Agreement, including its right to receive the Base Rental Payments, pursuant to an Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”), by and between the Corporation and the Trustee; and WHEREAS, in consideration of such assignment and the execution of the Trust Agreement, the Trustee has agreed to execute and deliver the Certificates; and WHEREAS, this Ground Lease and a memorandum of the Lease Agreement are being recorded with the San Bernardino County Recorder concurrently with the recordation of the Assignment Agreement; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Ground Lease do exist, have happened and have been performed in regular and due time, form and 4148-8913-8020.3 2
manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Ground Lease;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.01. Definitions. Except as otherwise defined herein, or unless the context clearly otherwise requires, words and phrases defined in Article I of the Lease Agreement shall have the same meanings in this Ground Lease.

Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Ground Lease. (h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Ground Lease and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be. 4148-8913-8020.3 3

ARTICLE II
LEASE OF THE PROPERTY; RENTAL
Section 2.01. Lease of Property. The City hereby leases to the Corporation, and the Corporation hereby leases from the City, for the benefit of the Owners of the Certificates, the Property, subject only to Permitted Encumbrances, to have and to hold for the term of this Ground Lease.

Section 2.02. Rental. The Corporation shall pay, or cause to be paid, to the City as and for rental of the Property hereunder, the sum of not to exceed $[________] (the “Ground Lease Payment”). The Ground Lease Payment shall be paid from the proceeds of the Certificates; provided, however, that in the event the available proceeds of the Certificates are not sufficient to enable the Corporation to pay such amount in full, the remaining amount of the Ground Lease Payment shall be reduced to an amount equal to the amount of the remaining available proceeds.

The City shall deposit the Ground Lease Payment in one or more separate funds or accounts to be held and administered for the purpose of financing the Project.

The Corporation and the City hereby find and determine that the amount of the Ground Lease Payment does not exceed the fair market value of the leasehold interest in the Property that is conveyed hereunder by the City to the Corporation. No other amounts of rental shall be due and payable by the Corporation for the use and occupancy of the Property under this Ground Lease.

ARTICLE III

QUIET ENJOYMENT
The parties intend that the Property will be leased back to the City pursuant to the Lease Agreement for the term thereof. It is further intended that, to the extent provided herein and in the Lease Agreement, if a Lease Default Event occurs, the Corporation, or its assignee, will have the right, for the then remaining term of this Ground Lease to (a) take possession of the Property, (b) if it deems it appropriate, cause an appraisal of the Property and a study of the then reasonable use thereof to be undertaken, and (c) relet the Property. Subject to any rights the City may have under the Lease Agreement (in the absence of a Lease Default Event) to possession and enjoyment of the Property, the City hereby covenants and agrees that it will not take any action to prevent the Corporation from having quiet and peaceable possession and enjoyment of the Property during the term hereof and will, at the request of the Corporation and at the City’s cost, to the extent that it may lawfully do so, join in any legal action in which the Corporation asserts its right to such possession and enjoyment.

ARTICLE IV

SPECIAL COVENANTS AND PROVISIONS
Section 4.01. Waste. At all times that the Corporation is in possession of the Property, the Corporation shall not commit, suffer or permit any waste on the Property and shall not willfully or knowingly use or permit the use of the Property for any illegal purpose or act. 4148-8913-8020.3 4
Section 4.02. Further Assurances and Corrective Instruments. The City and the Corporation shall, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Property hereby leased or intended so to be or for carrying out the expressed intention of this Ground Lease, the Lease Agreement and the Trust Agreement.

Section 4.03. Waiver of Personal Liability. (a) All liabilities under this Ground Lease on the part of the Corporation shall be solely liabilities of the Corporation as a nonprofit public benefit corporation, and the City hereby releases each and every director, officer and employee of the Corporation of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the Corporation shall, at any time or under any circumstances, be individually or personally liable under this Ground Lease to the City or to any other party whomsoever for anything done or omitted to be done by the Corporation hereunder. (b) All liabilities under this Ground Lease on the part of the City shall be solely liabilities of the City as a city and municipal corporation, and the Corporation hereby releases each and every director, officer and employee of the City of and from any personal or individual liability under this Ground Lease. No director, officer or employee of the City shall at any time or under any circumstances be individually or personally liable under this Ground Lease to the Corporation or to any other party whomsoever for anything done or omitted to be done by the City hereunder.

Section 4.04. Taxes. The City shall pay any and all assessments of any kind or character and also all taxes, including possessory interest taxes, levied or assessed upon the Property.

Section 4.05. Right of Entry. The City reserves the right for any of its duly authorized representatives to enter upon the Property at any reasonable time to inspect the same.

Section 4.06. Representations of the City. The City represents to the Corporation, the Insurer and the Trustee as follows:
(a) the City has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution of this Ground Lease; (b) except for Permitted Encumbrances, the Property is not subject to any dedication, easement, right of way, reservation in patent, covenant, condition, restriction, lien or encumbrance that would prohibit or materially interfere with the use of the Property for purposes as contemplated by the City;
(c) all taxes, assessments or impositions of any kind with respect to the Property, except current taxes, have been paid in full; (d) the City has good and marketable fee simple to the Property; and (e) the Property is necessary to the City in order for the City to perform its governmental functions.
4148-8913-8020.3 5
Section 4.07. Representations of the Corporation. The Corporation represents to the City, the Insurer and the Trustee that the Corporation has the full power and authority to enter into, to execute and to deliver this Ground Lease, and to perform all of its duties and obligations hereunder, and has duly authorized the execution and delivery of this Ground Lease.

ARTICLE V
ASSIGNMENT, SELLING AND SUBLEASING; TITLE TO PROPERTY
Section 5.01. Assignment to Trustee; Third-Party Beneficiaries. (a) The City acknowledges and agrees that, upon the execution and delivery of the Assignment Agreement, which is occurring simultaneously with the execution and delivery hereof, substantially all of the right, title and interest of the Corporation in and to this Ground Lease will be sold, assigned and transferred to the Trustee for the benefit of the Owners of the Certificates. The City consents to such sale, assignment and transfer. Upon the execution and delivery of the Assignment Agreement, references in the operative provisions hereof to the Corporation shall be deemed to be references to the Trustee, as assignee of the Corporation.
(b) The City consents to the Trust Agreement and acknowledges and agrees to the rights of the Trustee and the Insurer as set forth therein. (c) As a material inducement to the Trustee and the Insurer, the Corporation and the City agree that the Trustee and the Insurer shall be third-party beneficiaries of this Ground Lease.

Section 5.02. Assignment, Selling and Subleasing. This Ground Lease may be assigned or sold, and the Property may be subleased, as a whole or in part, by the Corporation, with the prior written consent of the Insurer, or at the direction of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy), without the necessity of obtaining the consent of the City, if a Lease Default Event occurs. The Corporation shall, within 30 days after such an assignment, sale or sublease, furnish or cause to be furnished to the City a true and correct copy of such assignment, sublease or sale, as the case may be.

Section 5.03. Restrictions on City. Except with respect to Permitted Encumbrances and except as provided in Section 8.04 hereof, the City shall not mortgage, sell, encumber, assign, transfer or convey the Property or any portion thereof during the term of this Ground Lease.

Section 5.04. Title to Property. The City shall hold and maintain good and marketable title to all of the Property during the term of this Ground Lease. If necessary, to maintain good and marketable title to Property, the City shall take all actions necessary, including eminent domain or condemnation proceedings or such other actions as the City deems appropriate, to ensure that title to the Property is good and marketable.

ARTICLE VI

IMPROVEMENTS
Title to all improvements made on the Property during the term hereof shall vest in the City, but shall be subject to the terms of this Ground Lease. 4148-8913-8020.3 6

ARTICLE VII
TERM; TERMINATION
Section 7.01. Term. The term of this Ground Lease shall commence as of the date of commencement of the term of the Lease Agreement and shall remain in full force and effect from such date to and including the Scheduled Termination Date, May 1, 20[__], unless such term is extended or sooner terminated as hereinafter provided.

Section 7.02. Extension; Early Termination. If, on the Scheduled Termination Date, the Certificates shall not be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, or the Trust Agreement shall not be discharged by its terms, or if the Rental Payments payable under the Lease Agreement shall have been abated at any time, then the term of this Ground Lease shall be automatically extended until the date upon which all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms, except that the term of this Ground Lease shall in no event be extended more than ten years beyond the Scheduled Termination Date. If, prior to the Scheduled Termination Date, all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms, the term of this Ground Lease shall end simultaneously therewith.

Section 7.03. Action on Default. In each and every case upon the occurrence and during the continuance of a default by the Corporation hereunder, the City shall have all the rights and remedies permitted by law, except the City, to the extent permitted by law, waives any and all rights to terminate this Ground Lease.

ARTICLE VIII

MISCELLANEOUS
Section 8.01. Notices. All written notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:

If to the City: City of Redlands
P.O. Box 3005
Redlands, California 92373
Attention: Director of Management Services/Finance
Department
If to the Corporation: Redlands Public Improvement Corporation 300 East State Street, Suite 690
Redlands, California 92373
Attention: Chief Financial Officer
4148-8913-8020.3 7
If to the Trustee: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Global Corporate Trust
If to the Insurer: [INSURER]
[___________]
[___________], [______] [______]
Attention: [___________]
Re: Insurance Policy No. [___________]
Telephone: [___________]
Email: [___________]
In each case in which the notice or other communication refers to an Event of Default or claim on the Insurance Policy, such notice or other communication shall be marked “URGENT MATERIAL ENCLOSED” and a copy shall also be sent to the attention of the General Counsel at the above address and at [___________].

Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (c) if given by electronic mail, on the date sent, but only if confirmation of the receipt of such electronic mail is received or if notice is concurrently sent by another means specified herein, and (d) if given by any other means, upon delivery at the address specified in this Section.

Section 8.02. Binding Effect. This Ground Lease shall inure to the benefit of and shall be binding upon the City, the Corporation and their respective successors and assigns.

Section 8.03. Partial Invalidity. If any agreement, condition, covenant or term required herein to be observed or performed by or on the part of the City or the Corporation is, to any extent, held to be invalid or unenforceable in any jurisdiction, but the extent of such invalidity or unenforceability does not destroy the basis of the bargain between the parties as contained herein, the remainder of the agreements, conditions, covenants or terms required herein to be observed or performed by or on the part of the City or the Corporation, or the application of such agreements, conditions, covenants or terms to Persons or circumstances other than those as to which such agreement, condition, covenant or term is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability, and each remaining agreement, condition, covenant and term required herein to be observed or performed by or on the part of the City and the Corporation shall be valid and shall be enforced to the fullest extent permitted by law.

Section 8.04. Amendments; Substitution and Release. This Ground Lease may be amended, changed, modified, altered or terminated (subject to the prior written consent of the Insurer) only in accordance with the provisions of the Lease Agreement. The City shall have the right to substitute alternate real property for the Property or to release portions of the Property as provided in the Lease Agreement.
4148-8913-8020.3 8
Section 8.05. Governing Law. This Ground Lease shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

Section 8.06. Execution in Counterparts. This Ground Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.
[Remainder of page left intentionally blank.]
4148-8913-8020.3
IN WITNESS WHEREOF, the parties hereto have caused this Ground Lease to be executed by their respective officers thereunto duly authorized, all as of the day and year first written above.

CITY OF REDLANDS
By:
[________],
[________]

REDLANDS PUBLIC IMPROVEMENT

CORPORATION
By:
[________],
[________]
[Signature Page to Ground Lease]
4148-8913-8020.3 1

EXHIBIT A

DESCRIPTION OF THE PROPERTY
City Police Facility
All that real property situated in San Bernardino County, State of California, described as follows, together with any improvements thereto:

STATE OF CALIFORNIA )
) ss

COUNTY OF SAN BERNARDINO )
On _________________, before me, ______________________________, Notary Public, personally appeared _________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
__________________________________
[Seal]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss

COUNTY OF SAN BERNARDINO )
On _________________, before me, ______________________________, Notary Public, personally appeared _________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.
__________________________________
[Seal]
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
4148-8913-8020.3

CERTIFICATE OF ACCEPTANCE
This is to certify that the interest in real property conveyed by the Ground Lease, dated as of [_________] 1, 2026, by and between the City of Redlands, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), and the Redlands Public Improvement Corporation, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), from the City to the Corporation, is hereby accepted by the undersigned on behalf of the Corporation pursuant to authority conferred by resolution of the Board of Directors of the Corporation adopted on [_______, 2026, and the Corporation consents to recordation thereof by its duly authorized officer.

Dated: [_________], 2026

REDLANDS PUBLIC IMPROVEMENT

CORPORATION
By:
[_______], [_______]
4126-7526-6404.4

LEASE AGREEMENT
by and between

CITY OF REDLANDS
and

REDLANDS PUBLIC IMPROVEMENT CORPORATION
Dated as of [_________] 1, 2026

TABLE OF CONTENTS
Page
i
4126-7526-6404.4
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION...................................................... 3 Section 1.01. Definitions.................................................................................................... 3 Section 1.02. Rules of Construction .................................................................................. 3 ARTICLE II LEASE OF PROPERTY; TERM............................................................................. 4 Section 2.01. Lease of Property ......................................................................................... 4 Section 2.02. Term; Occupancy......................................................................................... 4 ARTICLE III RENTAL PAYMENTS .......................................................................................... 6 Section 3.01. Base Rental Payments.................................................................................. 6 Section 3.02. Additional Rental Payments ........................................................................ 6 Section 3.03. Fair Rental Value ......................................................................................... 7 Section 3.04. Payment Provisions...................................................................................... 7 Section 3.05. Appropriations Covenant............................................................................. 7 Section 3.06. Rental Abatement......................................................................................... 8 Section 3.07. Prepayment .................................................................................................. 8 ARTICLE IV REPRESENTATIONS ......................................................................................... 10 Section 4.01. Representations of the City........................................................................ 10 Section 4.02. Representations of the Corporation ........................................................... 10 ARTICLE V COVENANTS........................................................................................................ 12 Section 5.01. Recordation................................................................................................ 12 Section 5.02. Quiet Enjoyment ........................................................................................ 12 Section 5.03. Net-Net-Net Lease ..................................................................................... 12 Section 5.04. Right of Entry ............................................................................................ 12 Section 5.05. Use of the Property .................................................................................... 12 Section 5.06. Maintenance and Utilities.......................................................................... 12 Section 5.07. Additions to Property................................................................................. 13 Section 5.08. Installation of City’s Equipment................................................................ 13 Section 5.09. Taxes.......................................................................................................... 13 Section 5.10. Mechanics’ Liens....................................................................................... 13 Section 5.11. Other Liens................................................................................................. 14 Section 5.12. Environmental Compliance ....................................................................... 14

TABLE OF CONTENTS
Page
ii
4126-7526-6404.4
Section 5.13. Condemnation............................................................................................ 15 Section 5.14. Other Obligations....................................................................................... 16 Section 5.15. Corporation Not Liable; Indemnification .................................................. 16 Section 5.16. Further Assurances..................................................................................... 17 ARTICLE VI INSURANCE; NET PROCEEDS; EMINENT DOMAIN................................... 18 Section 6.01. Property Casualty Insurance; Rental Interruption Insurance ..................... 18 Section 6.02. Title Insurance ........................................................................................... 18 Section 6.03. Additional Insurance Provision; Form of Policies..................................... 19 Section 6.04. Self-Insurance ............................................................................................ 19 Section 6.05. Eminent Domain ........................................................................................ 20 ARTICLE VII LEASE DEFAULT EVENTS AND REMEDIES .............................................. 21 Section 7.01. Lease Default Events and Remedies.......................................................... 21 Section 7.02. Waiver........................................................................................................ 24 ARTICLE VIII AMENDMENTS; ASSIGNMENT AND SUBLEASING;
SUBSTITUTION OR RELEASE ..................................................................... 25 Section 8.01. Amendments.............................................................................................. 25 Section 8.02. Assignment and Subleasing ....................................................................... 26 Section 8.03. Substitution or Release of the Property ..................................................... 26 ARTICLE IX MISCELLANEOUS ............................................................................................. 28 Section 9.01. Notices ....................................................................................................... 28 Section 9.02. Assignment to Trustee; Effect ................................................................... 29 Section 9.03. Rights of Insurer ........................................................................................ 29 Section 9.04. Third-Party Beneficiary ............................................................................. 29 Section 9.05. Partial Invalidity......................................................................................... 29 Section 9.06. Governing Law .......................................................................................... 30 Section 9.07. Electronic Signatures................................................................................. 30 Section 9.08. Execution in Counterparts.......................................................................... 30 EXHIBIT A MASTER DEFINITIONS....................................................................................... 1 EXHIBIT B DESCRIPTION OF THE PROPERTY................................................................... 1 EXHIBIT C BASE RENTAL PAYMENT SCHEDULE............................................................ 1 4126-7526-6404.4

LEASE AGREEMENT
THIS LEASE AGREEMENT (this “Lease Agreement”), dated as of [_________] 1, 2026, is by and between the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”), as lessee, and the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), as lessor.

W I T N E S S E T H:

WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to a Ground Lease, dated as of the date hereof (the “Ground Lease”), and the City will sublease the Property back from the Corporation pursuant to this Lease Agreement; and WHEREAS, the Property is more particularly described in Exhibit B hereto; and WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to the Trust Agreement, dated as of the date hereof (the “Trust Agreement”), by and among U.S. Bank Trust Company, National Association, as trustee (the “Trustee”), the Corporation and the City, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments (the “Base Rental Payments”) to be made by the City under this Lease Agreement; and
WHEREAS, in order to provide for the execution and delivery of the Certificates, the Corporation desires to sell, assign and transfer to the Trustee, irrevocably and absolutely, without recourse, for the benefit of the owners of the Certificates, substantially all of its right, title and interest in and to the Ground Lease and this Lease Agreement, including its right to receive the Base Rental Payments, pursuant to an Assignment Agreement, dated as of the date hereof (the “Assignment Agreement”), by and between the Corporation and the Trustee; and WHEREAS, in consideration of such assignment and the execution of the Trust Agreement, the Trustee has agreed to execute and deliver the Certificates; and WHEREAS, the Ground Lease and a memorandum of this Lease Agreement are being recorded with the San Bernardino County Recorder concurrently with the recordation of the Assignment Agreement; and
2 4126-7526-6404.4
WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Lease Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Lease Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
3 4126-7526-6404.4

ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION
Section 1.01. Definitions. Certain terms are defined in Exhibit A attached hereto and by this reference incorporated herein. Unless the context otherwise requires, the terms defined in Exhibit A hereto shall, for all purposes of this Lease Agreement, have the meanings herein specified.

Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Lease Agreement.
(h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Lease Agreement and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be. 4 4126-7526-6404.4

ARTICLE II
LEASE OF PROPERTY; TERM
Section 2.01. Lease of Property. (a) The Corporation hereby leases to the City and the City hereby leases from the Corporation the Property, on the terms and conditions herein set forth, and subject to all Permitted Encumbrances.
(b) The leasing of the Property by the City to the Corporation pursuant to the Ground Lease shall not effect or result in a merger of the City’s leasehold estate in the Property as lessee under this Lease Agreement and its fee estate in the Property as lessor under the Ground Lease, and the Corporation shall continue to have a leasehold estate in the Property pursuant to the Ground Lease throughout the term thereof and hereof. This Lease Agreement shall constitute a sublease with respect to the Property. The leasehold interest in the Property granted by the City to the Corporation pursuant to the Ground Lease is and shall be independent of this Lease Agreement; this Lease Agreement shall not be an assignment or surrender of the leasehold interest in the Property granted to the Corporation under the Ground Lease.

Section 2.02. Term; Occupancy. (a) The City shall take possession of the Property on the Delivery Date.
(b) The term of this Lease Agreement shall commence on the Delivery Date and shall end on the Scheduled Termination Date, unless such term is extended or sooner terminated as hereinafter provided.
(c) If prior to the Scheduled Termination Date, or prior to the date to which the term of this Lease Agreement has been extended pursuant to this Section, all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, the Trust Agreement shall be discharged by its terms and all Rental Payments shall have been paid in full, the term of this Lease Agreement shall end simultaneously therewith. (d) If all of the Property shall be taken under the power of eminent domain, and the City does not elect to cause alternate real property to be substituted for the Property pursuant to, and in accordance with the provisions of, Section 8.03 hereof, as provided in clause (i) of Section

6.05(d) hereof, but, rather, elects to deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of all or a portion of the Outstanding Certificates, as provided in clause (ii) of Section 6.05(d) hereof, then, on the date that possession thereof shall be so taken, the term of this Lease Agreement shall terminate. (e) If on the Scheduled Termination Date the Certificates shall not be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, or the Trust Agreement shall not be discharged by its terms, or if the Rental Payments shall remain due and payable or shall have been abated at any time and for any reason, then the term of this Lease Agreement shall be automatically extended until the date upon which all Certificates shall be fully paid, or provision therefor made in accordance with Article X of the Trust Agreement, and the Trust Agreement shall be discharged by its terms and all Rental Payments shall have been paid in 5 4126-7526-6404.4
full, except that the term of this Lease Agreement shall in no event be extended more than ten years beyond the Scheduled Termination Date.
(f) Upon the termination or expiration of the term of this Lease Agreement, other than as provided in Section 7.01 hereof, and the first date upon which the Certificates are no longer Outstanding, all right, title and interest in and to the Property shall vest in the City. Upon any such termination or expiration, the Corporation shall execute such conveyances, deeds and other documents as may be necessary to effect such vesting of record. 6 4126-7526-6404.4

ARTICLE III

RENTAL PAYMENTS
Section 3.01. Base Rental Payments. (a) Subject to the provisions of Sections 3.06 and

6.05 hereof and the provisions hereof relating to a revision of the Base Rental Payment Schedule pursuant to subsection (b) of this Section, the City shall pay to the Corporation, as Base Rental Payments, the amounts, at the times, specified in the Base Rental Payment Schedule, a portion of which Base Rental Payments shall constitute principal components and a portion of which shall constitute interest components. The interest components of the Base Rental Payments shall be paid by the City as and constitute interest paid on the principal components of the Base Rental Payments. Except to the extent specified in Section 3.06 hereof, Rental Payments, including Base Rental Payments, shall be paid by the City to the Corporation for and in consideration of the right to use and occupy the Property and in consideration of the continued right to the quiet use and enjoyment thereof during each Rental Period for which such Rental Payments are to be paid.

The obligation of the City to make the Base Rental Payments does not constitute a debt of the City or of the State of California or of any political subdivision thereof within the meaning of any constitutional or statutory debt limit or restriction, and does not constitute an obligation for which the City or the State of California is obligated to levy or pledge any form of taxation or for which the City or the State of California has levied or pledged any form of taxation. (b) If the term of this Lease Agreement shall have been extended pursuant to Section

2.02 hereof, the obligation of the City to pay Rental Payments shall continue to and including the date of termination of the term of this Lease Agreement as so extended. Upon such extension, the principal and interest components of the Base Rental Payments shall be established so that the principal components will in the aggregate be sufficient to pay all extended and unpaid principal components and the interest components will in the aggregate be sufficient to pay all extended and unpaid interest components; provided, however, that the Rental Payments payable in any Rental Period shall not exceed the annual fair rental value of the Property.

Section 3.02. Additional Rental Payments. The City shall also pay, as Additional Rental Payments, such amounts as shall be required for the payment of the following:
(a) all taxes and assessments of any type or nature charged to the Corporation or the City or affecting the Property or the respective interests or estates of the Corporation or the City therein;
(b) all reasonable administrative costs of the Corporation relating to the Property including salaries, wages, fees and expenses, compensation and indemnification of the Trustee payable by the Corporation under the Trust Agreement, fees of auditors, accountants, attorneys or engineers, and all other necessary and reasonable administrative costs of the Corporation or charges required to be paid by it in order to maintain its existence or to comply with the terms of the Trust Agreement or this Lease Agreement or to defend the Corporation and its members, directors, officers, agents and employees; (c) insurance premiums for all insurance required pursuant to Article VI hereof; 7 4126-7526-6404.4
(d) any amounts with respect to this Lease Agreement, the Trust Agreement or the Certificates required to be rebated to the federal government in accordance with Section 148(f) of the Code; and
(e) all other payments not constituting Base Rental Payments required to be paid by the City under the provisions of this Lease Agreement or the Trust Agreement, including any other amounts payable to the Insurer.

Amounts constituting Additional Rental Payments payable hereunder shall be paid by the City directly to the person or persons to whom such amounts shall be payable. The City shall pay all such amounts when due or at such later time as such amounts may be paid without penalty or, in any other case, within 60 days after notice in writing from the Trustee to the City stating the amount of Additional Rental Payments then due and payable and the purpose thereof.

Section 3.03. Fair Rental Value. The parties hereto have agreed and determined that the Rental Payments are not in excess of the Fair Rental Value of the Property as of the Delivery Date.

In making such determination of Fair Rental Value, consideration has been given to the uses and purposes that may be served by the Property and the benefits therefrom that will accrue to the City and the general public. Payments of the Rental Payments for the Property during each Rental Period shall constitute the total rental for said Rental Period.

Section 3.04. Payment Provisions. Each installment of Base Rental Payments payable hereunder shall be paid in lawful money of the United States of America to or upon the order of the Trustee, as assignee of the Corporation, at the Principal Office of the Trustee, or such other place or entity as the Trustee shall designate. Each Base Rental Payment shall be deposited with the Trustee, as assignee of the Corporation, no later than the Base Rental Deposit Date preceding the Interest Payment Date on which such Base Rental Payment is due. Any Base Rental Payment that shall not be paid by the City when due and payable under the terms of this Lease Agreement shall bear interest from the date when the same is due hereunder until the same shall be paid (a) at the Insurer Rate to the extent that such Base Rental Payment has been paid to the Owners, on behalf of the City, by the Insurer pursuant to the Insurance Policy, or (b) in all other cases, at the rate equal to the highest rate of interest evidenced by any of the Outstanding Certificates.

Notwithstanding any dispute between the Corporation and the City, the City shall make all Rental Payments when due without deduction or offset of any kind and shall not withhold any Rental Payments pending the final resolution of such dispute. In the event of a determination that the City was not liable for said Rental Payments or any portion thereof, said payments or excess of payments, as the case may be, shall be credited against subsequent Rental Payments due hereunder or refunded at the time of such determination. Amounts required to be deposited by the City with the Trustee pursuant to this Section on any date shall be reduced to the extent of available amounts on deposit in the Base Rental Payment Fund, the Interest Fund or the Principal Fund.

Section 3.05. Appropriations Covenant. The City covenants to take such action as may be necessary to include all Rental Payments due hereunder as a separate line item in its annual budgets and to make necessary annual appropriations for all such Rental Payments. The covenants on the part of the City herein contained shall be deemed to be and shall be construed to be duties imposed by law and it shall be the duty of each and every public official of the City to take such action and do such things as are required by law in the performance of the official duty of such 8 4126-7526-6404.4
officials to enable the City to carry out and perform the covenants and agreements in this Lease Agreement agreed to be carried out and performed by the City.

Section 3.06. Rental Abatement. (a) Except as otherwise specifically provided in this Section, during any period in which, by reason of material damage to, or destruction or condemnation of, the Property, or any defect in title to the Property, there is substantial interference with the City’s right to use and occupy any portion of the Property, Rental Payments shall be abated proportionately, and the City waives the benefits of California Civil Code Sections 1932(1), 1932(2) and 1933(4) and any and all other rights to terminate this Lease Agreement by virtue of any such interference, and this Lease Agreement shall continue in full force and effect. The City and the Corporation shall, in a reasonable manner and in good faith, determine the amount of such abatement; provided, however, that the Rental Payments due for any Rental Period shall not exceed the annual fair rental value of that portion of the Property available for use and occupancy by the City during such Rental Period. The City and the Corporation shall provide the Trustee and the Insurer with a certificate setting forth the amount of abatement and the basis therefor. Such abatement shall continue for the period commencing with the date of interference resulting from such damage, destruction, condemnation or title defect and, with respect to damage to or destruction of the Property, ending with the substantial completion of the work of repair or replacement of the Property, or the portion thereof so damaged or destroyed; and, to the extent necessary to pay unpaid Rental Payments, the term of this Lease Agreement shall be extended as provided in Section 2.02 hereof, except that the term of this Lease Agreement shall in no event be extended more than ten years beyond the Scheduled Termination Date. (b) Notwithstanding the foregoing, to the extent that moneys are available for the payment of Rental Payments in any of the funds and accounts established under the Trust Agreement, Rental Payments shall not be abated as provided above but, rather, shall be payable by the City as a special obligation payable solely from said funds and accounts.

Section 3.07. Prepayment. (a) The City may prepay all or a portion of the Base Rental Payments that are payable on or after May 1, 20__, from any source of available funds, on any date on or after May 1, 20__, by paying (A) all or a portion, as elected by the City, of the principal components of the Base Rental Payments, and (B) the accrued but unpaid interest component of such Base Rental Payments to be prepaid to the date of such prepayment. (b) The City may prepay, from any source of available funds, all or any portion of the Base Rental Payments by depositing with the Trustee moneys or securities as provided, and subject to the terms and conditions set forth, in Article X of the Trust Agreement sufficient to make such Base Rental Payments when due or to make such Base Rental Payments through a specified date on which the City has a right to prepay such Base Rental Payments pursuant to subsection (a) of this Section, and to prepay such Base Rental Payments on such prepayment date, at a prepayment price determined in accordance with subsection (a) of this Section. (c) If less than all of the Base Rental Payments are prepaid pursuant to this Section then, as of the date of such prepayment pursuant to subsection (a) of this Section, or the date of a deposit pursuant to subsection (b) of this Section, the principal and interest components of the Base Rental Payments shall be recalculated in order to take such prepayment into account. If, following a partial prepayment of Base Rental Payments, the Property is damaged, destroyed or 9 4126-7526-6404.4
taken by eminent domain, or a defect in title to the Property is discovered, the City shall not be entitled to, and by such prepayment waives the right of, abatement of such prepaid Base Rental Payments and the City shall not be entitled to any reimbursement of such Base Rental Payments. (d) If all of the Base Rental Payments are prepaid pursuant to this Section and if all amounts due to the Insurer have been paid in full then, as of the date of such prepayment pursuant to subsection (a) of this Section, or deposit pursuant to subsection (b) of this Section, the term of this Lease Agreement shall be terminated.
(e) Prepayments of Base Rental Payments made pursuant to this Section shall be applied to the prepayment of Certificates as provided in Section 4.01 of the Trust Agreement. (f) Before making any prepayment pursuant to this Section, the City shall give written notice to the Corporation and the Insurer specifying the date on which such prepayment will be made, which date shall be not less than 40 nor more than 60 days from the date such notice is given, unless the Corporation agrees to a different notice period. 10 4126-7526-6404.4

ARTICLE IV

REPRESENTATIONS
Section 4.01. Representations of the City. The City represents that, as of the Delivery Date:
(a) the City has the full power and authority to enter into, to execute and to deliver this Lease Agreement and the Trust Agreement, and to perform all of its covenants and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement and the Trust Agreement; (b) the Property is not located in a 100-year flood plain; (c) the City has, after due inquiry, no knowledge and has not given or received any written notice indicating that the Property or the past or present use thereof or any practice, procedure or policy employed by it in the conduct of its business materially violates any Applicable Laws;
(d) without limiting the generality of the foregoing, neither the City nor to the best of its knowledge, after due inquiry, any prior or present owner, tenant or subtenant of the Property has, other than as set forth in this subsection or as may have been remediated in accordance with Environmental Regulations (i) used, treated, stored, transported or disposed of any material amount of Hazardous Materials on, from or beneath the Property, (ii) released any material amount of Hazardous Materials on, from or beneath the Property, or (iii) stored any material amount of petroleum products at the Property in underground storage tanks; provided, however, that excluded from the representations and warranties in this paragraph with respect to Hazardous Materials are those Hazardous Materials in such amounts as are ordinarily found in the inventory of, or used in the maintenance of city buildings, the use, treatment, storage, transportation and disposal of which has been and shall be in compliance with all Environmental Regulations; (e) no portion of the Property located in an area of high potential incidence of radon has an unventilated basement or subsurface portion that is occupied or used for any purpose other than the foundation or support of the improvements to the Property, respectively; and
(f) the City has not received any notice from any insurance company that has issued a policy with respect to the Property or from Applicable Laws relating to insurance standards requiring the performance of any repairs, alterations or other work, which repairs, alterations or other work have not been completed at the Property. The City has not received any notice of default or breach that has not been cured under any covenant, condition, restriction, right-of-way, reciprocal easement, agreement or other easement affecting the Property that is to be performed or complied with by it.

Section 4.02. Representations of the Corporation. The Corporation represents that the Corporation, as of the Delivery Date, has the full power and authority to enter into, to execute and to deliver this Lease Agreement, the Assignment Agreement and the Trust Agreement to perform 11 4126-7526-6404.4
all of its covenants and obligations hereunder and thereunder, and has duly authorized the execution and delivery of this Lease Agreement, the Assignment Agreement and the Trust Agreement.
12 4126-7526-6404.4

ARTICLE V

COVENANTS
Section 5.01. Recordation. The City shall record, or cause to be recorded, with the San Bernardino County Recorder, this Lease Agreement, the Ground Lease and the Assignment Agreement, or memoranda thereof.

Section 5.02. Quiet Enjoyment. The City, by keeping and performing the covenants and agreements herein contained, shall at all times during the term of this Lease Agreement peaceably and quietly have, hold and enjoy the Property without suit, trouble or hindrance from the Corporation.

Section 5.03. Net-Net-Net Lease. This Lease Agreement shall be deemed and construed to be a “net-net-net lease” and the Rental Payments shall be an absolute net return to the Corporation, free and clear of any expenses, charges or set-off whatsoever and notwithstanding any dispute between the City and the Corporation.

Section 5.04. Right of Entry. The Corporation shall have the right to enter upon and to examine and inspect the Property during reasonable business hours, and in emergencies at all times, for any reasonable purpose connected with the Corporation’s rights or obligations under this Lease Agreement, and for all other lawful purposes. The Insurer shall have the right to enter upon and to examine and inspect the Property during reasonable business hours, and in emergencies at all times, for any reasonable purpose connected with the Insurer’s rights or obligations under this Lease Agreement.

Section 5.05. Use of the Property. The City shall not use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary to that contemplated by this Lease Agreement. In addition, the City shall comply in all respects, including with respect to the use, maintenance and operation of the Property, with all laws of the jurisdictions in which its operations may extend and any legislative, executive, administrative or judicial body exercising any power or jurisdiction over the Property; provided, however, that the City may contest in good faith the validity or application of any such law or rule in any reasonable manner that does not, in the opinion of the Corporation, adversely affect the estate of the Corporation in and to any of the Property or its interest or rights under this Lease Agreement.

Section 5.06. Maintenance and Utilities. Throughout the term of this Lease Agreement, as part of the consideration for rental of the Property, all improvement, repair and maintenance of the Property shall be the responsibility of the City, and the City shall pay for or otherwise arrange for the payment of all utility services supplied to the Property, which may include janitor service, security, power, gas, telephone, light, heating, ventilation, air conditioning, water and all other utility services, and shall pay for or otherwise arrange for payment of the cost of the repair and replacement of the Property resulting from ordinary wear and tear or want of care on the part of the City or any assignee or sublessee thereof. In exchange for the Rental Payments, the Corporation agrees to provide only the Property.
13 4126-7526-6404.4
Section 5.07. Additions to Property. Subject to the provisions of Section 5.10 hereof, the City and any sublessee shall, at its own expense, have the right to make additions, modifications and improvements to the Property. To the extent that the removal of such additions, modifications or improvements would not cause material damage to the Property, such additions, modifications and improvements shall remain the sole property of the City or such sublessee, and neither the Corporation nor the Trustee shall have any interest therein. Such additions, modifications and improvements shall not in any way damage the Property or cause it to be used for purposes other than those authorized under the provisions of state and federal law; and the Property, upon completion of any additions, modifications and improvements made pursuant to this Section, shall be of a value that is at least equal to the value of the Property immediately prior to the making of such additions, modifications and improvements.

Section 5.08. Installation of City’s Equipment. The City and any sublessee may at any time and from time to time, in its sole discretion and at its own expense, install or permit to be installed items of equipment or other personal property in or upon the Property. All such items shall remain the sole property of the City or such sublessee, and neither the Corporation nor the Trustee shall have any interest therein. The City or such sublessee may modify or remove such equipment or other personal property at any time, provided that such party shall repair and restore any and all damage to the Property resulting from the installation, modification or removal of any such items. Nothing in this Lease Agreement shall prevent the City or any sublessee from purchasing items to be installed pursuant to this Section under a conditional sale or lease purchase contract, or subject to a vendor’s lien or security agreement as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any part of the Property.

Section 5.09. Taxes. (a) The City shall pay or cause to be paid all taxes and assessments of any type or nature charged to the Corporation or affecting the Property or the respective interests or estates therein; provided, however, that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the City shall be obligated to pay only such installments as are required to be paid during the term of this Lease Agreement as and when the same become due.
(b) After giving notice to the Corporation, the Insurer and the Trustee, the City or any sublessee may, at the City’s or such sublessee’s expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, in the event of any such contest, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom unless the Corporation, the Insurer or the Trustee shall notify the City or such sublessee that, in the opinion of independent counsel, by nonpayment of any such items, the interest of the Corporation in the Property will be materially endangered or the Property, or any part thereof, will be subject to loss or forfeiture, in which event the City or such sublessee shall promptly pay such taxes, assessments or charges or provide the Corporation with full security against any loss that may result from nonpayment, in form satisfactory to the Corporation, the Insurer and the Trustee.

Section 5.10. Mechanics’ Liens. In the event the City shall at any time during the term of this Lease Agreement cause any changes, alterations, additions, improvements, or other work to be done or performed or materials to be supplied, in or upon the Property, the City shall pay, 14 4126-7526-6404.4
when due, all sums of money that may become due for, or purporting to be for, any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to or for the City in, upon or about the Property and that may be secured by a mechanics’, materialmen’s or other lien against the Property or the Corporation’s interest therein, and shall cause each such lien to be fully discharged and released at the time the performance of any obligation secured by any such lien matures or becomes due; provided, however, that if the City desires to contest any such lien, it may do so as long as such contest is in good faith. If any such lien shall be reduced to final judgment and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed and said stay thereafter expires, the City shall forthwith pay and discharge said judgment.

Section 5.11. Other Liens. The City shall keep the Property and all parts thereof free from judgments and materialmen’s and mechanics’ liens and free from all claims, demands, encumbrances and other liens of whatever nature or character, and free from any claim or liability that materially impairs the City in conducting its business or utilizing the Property, and the Trustee at its option (after first giving the City ten days’ written notice to comply therewith and failure of the City to so comply within such ten-day period) may defend against any and all actions or proceedings, or may pay or compromise any claim or demand asserted in any such actions or proceedings; provided, however, that, in defending against any such actions or proceedings or in paying or compromising any such claims or demands, the Trustee shall not in any event be deemed to have waived or released the City from liability for or on account of any of its agreements and covenants contained herein, or from its obligation hereunder to perform such agreements and covenants. The Trustee shall have no liability with respect to any determination made in good faith to proceed or decline to defend, pay or compromise any such claim or demand.

Section 5.12. Environmental Compliance. (a) Neither the City nor the Corporation shall use or permit the Property or any part thereof to be used to generate, manufacture, refine, treat, store, handle, transport or dispose of, transfer, produce or process Hazardous Materials, except, and only to the extent, if necessary to maintain the improvements on the Property and then only in compliance with all Environmental Regulations, nor shall it permit, as a result of any intentional or unintentional act or omission on its part or by any tenant, subtenant, licensee, guest, invitee, contractor, employee or agent, the storage, transportation, disposal or use of Hazardous Materials or the Release or threat of Release of Hazardous Materials on, from or beneath the Property or onto any other property, excluding, however, those Hazardous Materials in those amounts ordinarily found in the inventory of cities, the use, storage, treatment, transportation and disposal of which shall be in compliance with all Environmental Regulations. Upon the occurrence of any Release or threat of Release of Hazardous Materials, the Corporation or the City shall promptly commence and perform, or cause to be commenced and performed promptly, without cost to the Trustee, all investigations, studies, sampling and testing, and all remedial, removal and other actions necessary to clean up and remove all Hazardous Materials so released on, from or beneath the Property or other property, in compliance with all Environmental Regulations.

Notwithstanding anything to the contrary contained herein, underground storage tanks shall only be permitted subject to compliance with subsection (d) of this Section and only to the extent necessary to maintain the improvements on the Property. (b) The City and the Corporation shall comply with, and shall cause all tenants, subtenants, licensees, guests, invitees, contractors, employees and agents on the Property to 15 4126-7526-6404.4
comply with, all Environmental Regulations, and shall keep the Property free and clear of any liens imposed pursuant thereto; provided, however, that any such liens, if not discharged, may be bonded. The City and the Corporation shall cause each tenant under any lease, and use their best efforts to cause all of such tenant’s subtenants, agents, licensees, employees, contractors, guests and invitees and the guests and invitees of all of the foregoing to comply with all Environmental Regulations with respect to the Property; provided, however, that the Corporation and the City shall remain solely responsible for ensuring such compliance and such limitation shall not diminish or affect in any way the Corporation’s or the City’s obligations contained in subsection (c) of this Section. Upon receipt of any notice from any Person with regard to the Release of Hazardous Materials on, from or beneath the Property, the City or the Corporation, as appropriate, shall give prompt written notice thereof to the City or the Corporation, as appropriate, the Trustee, and the Insurer prior to the expiration of any period in which to respond to such notice under any Environmental Regulation.
(c) Irrespective of whether any representation or warranty contained in Article IV hereof is not true or correct, the Corporation and the City shall, to the extent permitted by law, defend, indemnify and hold harmless the Corporation, the Insurer and the Trustee and any director, member, officer, employee, successor or assignee thereof from and against any claims, demands, penalties, fines, attorneys’ fees (including attorneys’ fees incurred to enforce the indemnification contained in this Section), consultants’ fees, investigation and laboratory fees, liabilities, settlements (five Insurance Business Days’ prior notice of which the Corporation, the Insurer or the Trustee, as appropriate, shall have delivered to the City), court costs, damages, losses, costs or expenses of whatever kind or nature, known or unknown, contingent or otherwise, occurring in whole or in part, arising out of, or in any way related to (i) the presence, disposal, Release, threat of Release, removal, discharge, storage or transportation of any Hazardous Materials on, from or beneath the Property, (ii) any personal injury, including wrongful death, or property damage, real or personal, arising out of or related to such Hazardous Materials, (iii) any lawsuit brought or threatened, settlement reached (five Insurance Business Days’ prior notice of which the Corporation, the Insurer or the Trustee, as appropriate, shall have delivered to the City), or governmental order relating to Hazardous Materials on, from or beneath the Property, (iv) any violation of Environmental Regulations or subsection (a) or (b) of this Section by the City or the Corporation or any of their agents, tenants, employees, contractors, licensees, guests, subtenants or invitees, and (v) the imposition of any governmental lien for the recovery of environmental cleanup or removal costs. To the extent that either the Corporation or the City is strictly liable under any Environmental Regulation, the City’s obligation to the Corporation, the Insurer and the Trustee and the other indemnitees under the foregoing indemnification shall likewise be without regard to fault on its part with respect to the violation of any Environmental Regulation that results in liability to any indemnitee. The obligations and liabilities under this subsection shall survive the payment of all Certificates and the discharge of the Trust Agreement. (d) The City shall conform to and carry out a reasonable program of maintenance and inspection of all underground storage tanks, and shall maintain, repair and replace such tanks only in accordance with Environmental Regulations.

Section 5.13. Condemnation. So long as the Certificates are Outstanding, the City, to the extent it may lawfully so bind itself, shall not exercise the power of condemnation with respect to the Property. To the extent permitted by law, if for any reason the foregoing covenant is 16 4126-7526-6404.4
determined to be unenforceable or if the City shall fail or refuse to abide by such covenant and condemns the Property, for purposes of such condemnation, the value of the City’s leasehold estate hereunder in the Property shall be not less than the amount sufficient to pay the Base Rental Payments to the first date on which they may be prepaid pursuant to Section 3.07(a) hereof and to prepay the Base Rental Payments on such date.

Section 5.14. Other Obligations. Except for the Certificates and Permitted Encumbrances, the City shall not, during the term of this Lease Agreement, issue or incur or cause to be executed and delivered, directly or indirectly, any additional certificates of participation, notes, bonds or other indebtedness that are either (a) payable from or secured by lease payments or rentals payable under this Lease Agreement, or (b) secured by, or granted a lien on, the Property.

Section 5.15. Corporation Not Liable; Indemnification. (a) None of the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof shall be liable to the City or to any other Person for any death, injury or damage that may result to any person or property by or from any cause whatsoever in, on or about the Property. To the extent permitted by law, the City shall, at its expense, indemnify and hold the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof harmless against and from any and all claims by or on behalf of any Person arising from the acquisition, construction, occupation, use, operation, maintenance, possession, conduct or management of or from any work done in or about the Property or from the subletting of any part thereof, including any liability for violation of conditions, agreements, restrictions, laws, ordinances, or regulations affecting the Property or the occupancy or use thereof, but excepting the negligence or willful misconduct of the Person seeking indemnity. To the extent permitted by law, the City shall, at its expense, pay and indemnify and save the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof harmless against and from any and all claims arising from (i) any condition of the Property and the adjoining sidewalks and passageways, (ii) any breach or default on the part of the City in the performance of any covenant or agreement to be performed by the City pursuant to this Lease Agreement, (iii) any act or negligence of licensees in connection with their use, occupancy or operation of the Property, or (iv) any accident, injury or damage whatsoever caused to any person, firm or corporation in or about the Property or upon or under the sidewalks and from and against all costs, reasonable counsel fees, expenses and liabilities incurred in any action or proceeding brought by reason of any claim referred to in this Section, but excepting the negligence or willful misconduct of the Person seeking indemnity. In the event that any action or proceeding is brought against the Corporation, the Insurer or the Trustee or any director, member, officer or employee thereof, by reason of any such claim, the City, upon notice from the Corporation, the Insurer or the Trustee or such director, member, officer or employee thereof, shall resist or defend such action or proceeding by counsel reasonably satisfactory to the Corporation, the Insurer or the Trustee or such director, member, officer or employee thereof. (b) Notwithstanding the fact that it is the intention of the parties that the Corporation, the Insurer and the Trustee and all directors, members, officers and employees thereof shall not incur any pecuniary liability by reason of the terms of this Lease Agreement, or the undertakings required of the Corporation hereunder or any director, member, officer or employee thereof, by reason of the execution and delivery of the Certificates, by reason of the execution or authorization of any document or certification in connection with the Certificates, including the Trust Agreement, this Lease Agreement or any preliminary or final official statement, by reason of the 17 4126-7526-6404.4
performance or nonperformance of any act required of any of them by this Lease Agreement or the Trust Agreement or by reason of the performance or nonperformance of any act requested of any of them by the City, the Corporation, the Insurer or the Trustee, including all claims, liabilities, damages, losses or expenses arising in connection with the violation of any statute or regulation pertaining to the foregoing; nevertheless, if the Corporation, the Insurer or the Trustee or any director, member, officer or employee thereof should incur any such pecuniary liability, then in such event the City, to the extent permitted by law, shall indemnify and hold harmless the Corporation, the Insurer and the Trustee, and all directors, members, officers and employees thereof, against all claims by or on behalf of any Person arising out of the same, or in connection with any action or proceeding brought thereon, but excepting the negligence or willful misconduct of the Person seeking indemnity, and upon notice from the Corporation, the Insurer or the Trustee, the City shall defend the Corporation, the Insurer and the Trustee in any such action or proceeding.

This Section shall survive the termination of this Lease Agreement for any claim, proceeding or action arising from any event or omission occurring during the term of this Lease Agreement.

Section 5.16. Further Assurances. The City shall make, execute and deliver any and all such further agreements, instruments and assurances as may be reasonably necessary or proper to carry out the intention or to facilitate the performance of this Lease Agreement and for the better assuring and confirming unto the Corporation of the rights and benefits provided in this Lease Agreement.
18 4126-7526-6404.4

ARTICLE VI
INSURANCE; NET PROCEEDS; EMINENT DOMAIN
Section 6.01. Property Casualty Insurance; Rental Interruption Insurance. (a) The City shall maintain reasonable and customary liability insurance. The City’s obligations under this subsection may be satisfied by self-insurance, provided that such self-insurance complies with the provisions of Section 6.04 hereof.
(b) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, casualty insurance insuring the Property against fire, lightning and all other risks covered by an extended coverage endorsement (excluding earthquake and flood) to the full insurable value of the Property, subject to a $100,000 loss deductible provision, unless some other deductible is acceptable to the Insurer. The City’s obligations under this subsection may be satisfied by self-insurance, provided that such self-insurance complies with the provisions of Section 6.04 hereof. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section 5.03 of the Trust Agreement. (c) The City shall maintain or cause to be maintained, throughout the term of this Lease Agreement, rental interruption insurance to cover the Corporation’s loss, total or partial, of Base Rental Payments resulting from the loss, total or partial, of the use of any part of the Property as a result of any of the hazards required to be covered pursuant to subsection (c) of this Section in an amount equal to the lesser of (i) the amount sufficient at all times to pay an amount not less than the product of two times the maximum amount of Base Rental Payments scheduled to be paid during any Rental Period, or (ii) such lesser amount as may be agreed to by the Insurer. The City’s obligations under this subsection may not be satisfied by self-insurance. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section

5.01(c) of the Trust Agreement.
(d) The insurance required by this Section (other than when satisfied with selfinsurance in compliance with the provisions of section 6.04 hereof) shall be provided by reputable insurance companies with claims paying abilities determined, in the reasonable opinion of the City’s professionally certified risk manager or an independent insurance consultant, to be adequate for the purposes hereof.

Section 6.02. Title Insurance. The City shall provide, at its own expense, one or more CLTA or ALTA title insurance policies for the Property, in the aggregate amount of not less than the initial aggregate amount of principal evidenced by the Certificates. Said policy or policies shall insure (a) the fee interest of the City in the Property, (b) the Corporation’s ground leasehold estate in the Property under the Ground Lease, and (c) the City’s leasehold estate hereunder in the Property, subject only to Permitted Encumbrances; provided, however, that one or more of said estates may be insured through an endorsement to such policy or policies. All Net Proceeds received under said policy or policies shall be deposited with the Trustee and applied as provided in Section 5.04 of the Trust Agreement. So long as any of the Certificates remain Outstanding, each policy of title insurance obtained pursuant hereto or required hereby shall provide that all proceeds thereunder shall be payable to the Trustee for the benefit of the Owners. 19 4126-7526-6404.4
Section 6.03. Additional Insurance Provision; Form of Policies. (a) The City shall pay or cause to be paid when due the premiums for all insurance policies required by Section 6.01 hereof, and shall promptly furnish or cause to be furnished evidence of such payments to the Trustee. All such policies shall contain a standard lessee clause in favor of the Trustee and the general liability insurance policies shall be endorsed to show the Trustee as an additional insured.

All such policies shall provide that the Trustee and the Insurer shall be given 30 days’ notice of the expiration thereof, any intended cancellation thereof or any reduction in the coverage provided thereby. The Trustee shall be fully protected in accepting payment on account of such insurance or any adjustment, compromise or settlement of any loss agreed to by the Trustee; provided, however, that the Trustee shall not agree to any adjustment, compromise or settlement without the Insurer’s written consent.
(b) The City shall cause to be delivered to the Trustee and the Insurer on or before August 15 of each year, commencing August 15, 2026, a schedule of the insurance policies being maintained in accordance herewith and a Written Certificate of the City stating that such policies are in full force and effect and that the City is in full compliance with the requirements of this Article. The City shall, upon request of the Insurer, deliver to the Insurer certificates or duplicate originals or certified copies of each insurance policy described in such schedule. The Trustee shall be entitled to rely upon said Written Certificate of the City as to the City’s compliance with this Article. Neither the Trustee nor the Insurer shall be responsible for the sufficiency of coverage or amounts of such policies. All policies of insurance required by this Lease Agreement shall be in form satisfactory to the Insurer.

Section 6.04. Self-Insurance. Insurance provided through a California joint powers authority of which the City is a member or with which the City contracts for insurance shall be deemed to be self-insurance for purposes hereof. All statements of self-insurance provided in accordance with this Lease Agreement shall be in form satisfactory to the Insurer. Any selfinsurance maintained by the City pursuant to this Article shall comply with the following terms:
(a) the self-insurance program shall be approved in writing by the Insurer; (b) the self-insurance program shall be approved in writing by the City’s professionally certified risk manager or by an Independent Insurance Consultant; (c) the self-insurance program shall include an actuarially sound claims reserve fund out of which each self-insured claim shall be paid, the adequacy of each such fund shall be evaluated on an annual basis by the City’s professionally certified risk manager or by the Independent Insurance Consultant and any deficiencies in any self-insured claims reserve fund shall be remedied in accordance with the recommendation of the City’s professionally certified risk manager or such Independent Insurance Consultant, as applicable;
(d) the self-insured claims reserve fund shall be held in a separate trust fund; and
20 4126-7526-6404.4
(e) in the event the self-insurance program shall be discontinued, the actuarial soundness of its claims reserve fund, as determined by the City’s professionally certified risk manager or by the Independent Insurance Consultant, shall be maintained.

Section 6.05. Eminent Domain. (a) If all or a portion of the Property shall be taken under the power of eminent domain, the City shall, no later than 60 days prior to the day that possession thereof shall be so taken, notify the Trustee in writing of the City’s determination as to whether or not such taking will result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof.
(b) If a portion, but not all, of the Property is so taken and the City determines that such taking will not result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof, the Net Proceeds of any award made in the eminent domain proceedings for such taking shall be remitted to the City and used for any lawful purpose thereof. (c) If a portion, but not all, of the Property is so taken and the City determines that such taking will result in a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments pursuant to Section 3.06 hereof, the City shall (i) no later than 45 days prior to the day that possession thereof shall be so taken, cause alternate real property to be substituted the portion of the Property so taken pursuant to, and in accordance with the provisions of, Section 9.03 hereof, or (ii) immediately upon receipt thereof, deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of a portion of the Outstanding Certificates. (d) If all of the Property is so taken, the City shall (i) no later than 45 days prior to the day that possession thereof shall be so taken, cause alternate real property to be substituted for the Property pursuant to, and in accordance with the provisions of, Section 9.03 hereof, or (ii) immediately upon receipt thereof, deliver or cause to be delivered the Net Proceeds of any award made in the eminent domain proceedings for such taking to the Trustee for the application to the prepayment, pursuant to Section 4.01(a) of the Trust Agreement, of all or a portion of the Outstanding Certificates.
21 4126-7526-6404.4

ARTICLE VII

LEASE DEFAULT EVENTS AND REMEDIES
Section 7.01. Lease Default Events and Remedies. (a) If (i) the City shall fail to pay any Rental Payment payable hereunder when the same becomes due and payable, time being expressly declared to be of the essence in this Lease Agreement, (ii) the City shall fail to keep, observe or perform any other term, covenant or condition contained herein to be kept or performed by the City, if such failure shall have continued for a period of 30 days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the City by the Corporation, the Trustee, the Insurer or the Owners of not less than a majority of the aggregate principal evidenced by Certificates then Outstanding; provided, however, that if the failure stated in the notice can be corrected, but not within such 30 day period, such failure shall not constitute a Lease Default Event if corrective action is instituted by the City within such 30 day period, the Insurer consents in writing to an extended period of time, and the City shall thereafter diligently and in good faith cure such failure in a reasonable period of time, provided, further, that, unless consented to by the Trustee and the Insurer, such period of time shall not exceed 180 days, (iii) the City shall fail to observe and perform any of the covenants, agreements or conditions on its part in the Trust Agreement contained, if such failure shall have continued for a period of 30 days after written notice thereof, specifying such failure and requiring the same to be remedied, shall have been given to the City by the Corporation, the Trustee, the Insurer or the Owners of not less than a majority of the aggregate principal evidenced by Certificates then Outstanding; provided, however, that if the failure stated in the notice can be corrected, but not within such 30 day period, such failure shall not constitute a Lease Default Event if corrective action is instituted by the City within such 30 day period, the Insurer consents in writing to an extended period of time, and the City shall thereafter diligently and in good faith cure such failure in a reasonable period of time, provided, further, that, unless consented to by the Trustee and the Insurer, such period of time shall not exceed 180 days, (iv) except as otherwise provided in Article VIII hereof, the City’s interest in this Lease Agreement or any part thereof shall be assigned or transferred, either voluntarily or by operation of law or otherwise, (v) the City shall abandon or vacate the Property, or (vi) the City shall commence a voluntary case under Title 11 of the United States Code or any substitute or successor statute, such failure or event shall constitute a Lease Default Event.
(b) Upon the occurrence of any Lease Default Event, the Corporation, in addition to all other rights and remedies it may have at law, shall have the option to do any of the following:
(i) terminate this Lease Agreement in the manner hereinafter provided on account of such Lease Default Event, notwithstanding any re-entry or re-letting of the Property as hereinafter provided for in subparagraph (ii) hereof, and to re-enter the Property and remove all persons in possession thereof and all personal property whatsoever situated upon the Property and place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City. In the event of such termination, the City agrees to surrender immediately possession of the Property, without let or hindrance, and to pay the Corporation all damages recoverable at law that the Corporation may incur by reason of such Lease Default Event, including any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon 22 4126-7526-6404.4
the Property and removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. Neither notice to pay Rental Payments or to deliver up possession of the Property given pursuant to law nor any entry or re-entry by the Corporation nor any proceeding in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Property nor the appointment of a receiver upon initiative of the Corporation to protect the Corporation’s interest under this Lease Agreement shall of itself operate to terminate this Lease Agreement, and no termination of this Lease Agreement on account of such Lease Default Event shall be or become effective by operation of law or acts of the parties hereto, or otherwise, unless and until the Corporation shall have given written notice to the City of the election on the part of the Corporation to terminate this Lease Agreement. No surrender of the Property or of the remainder of the term hereof or any termination of this Lease Agreement shall be valid in any manner or for any purpose whatsoever unless the Corporation so provided in such written notice; or (ii) without terminating this Lease Agreement (A) collect each installment of Rental Payments as the same become due and enforce any other terms or provisions hereof to be kept or performed by the City, regardless of whether or not the City has abandoned the Property, or (B) exercise any and all rights of entry and re-entry upon the Property. In the event the Corporation does not elect to terminate this Lease Agreement in the manner provided for in subparagraph (i) hereof, the City (I) shall remain liable and shall keep or perform all covenants and conditions herein contained to be kept or performed by the City, (II) if the Property is not re-let, shall pay the full amount of the Rental Payments to the end of the term of this Lease Agreement, (III) if the Property is re-let, shall pay any deficiency in Rental Payments that results therefrom, and (IV) shall pay said Rental Payments and/or Rental Payment deficiency punctually at the same time and in the same manner as hereinabove provided for the payment of Rental Payments hereunder, notwithstanding the fact that the Corporation may have received in previous years or may receive thereafter in subsequent years Rental Payments in excess of the Rental Payments herein specified, and notwithstanding any entry or re-entry by the Corporation or suit in unlawful detainer, or otherwise, brought by the Corporation for the purpose of effecting such re-entry or obtaining possession of the Property. Should the Corporation elect to re-enter as herein provided, the City hereby irrevocably appoints the Corporation as the agent and attorneyin-fact of the City to re-let the Property, or any part thereof, from time to time, either in the Corporation’s name or otherwise, upon such terms and conditions and for such use and period as the Corporation may deem advisable and to remove all persons in possession thereof and all personal property whatsoever situated upon the Property and to place such personal property in storage in any warehouse or other suitable place, for the account of and at the expense of the City, and the City hereby indemnifies and agrees to save harmless the Corporation from any costs, loss or damage whatsoever arising out of, in connection with, or incident to any such re-entry upon and re-letting of the Property and removal and storage of such property by the Corporation or its duly authorized agents in accordance with the provisions herein contained. The City agrees that the terms of this Lease Agreement constitute full and sufficient notice of the right of the Corporation to re-let the Property in the event of such re-entry without effecting a surrender of this Lease Agreement, and further agrees that no acts of the Corporation in effecting such re-letting shall constitute a surrender or termination of this Lease Agreement irrespective of the use 23 4126-7526-6404.4
or the term for which such re-letting is made or the terms and conditions of such re-letting, or otherwise, but that, on the contrary, in the event of such Lease Default Event the right to terminate this Lease Agreement shall vest in the Corporation to be effected in the sole and exclusive manner provided for in subparagraph (i) hereof. The City shall pay the Corporation the cost of any alterations or additions to the Property necessary to place the Property in condition for re-letting immediately upon notice to the City of the completion and installation of such additions or alterations.

The City hereby waives any and all claims for damages caused or which may be caused by the Corporation in re-entering and taking possession of the Property as herein provided and all claims for damages that may result from the destruction of or injury to the Property and all claims for damages to or loss of any property belonging to the City, or any other person, that may be in or upon the Property.
(c) In addition to the other remedies set forth in this Section, upon the occurrence of a Lease Default Event, the Corporation shall be entitled to proceed to protect and enforce the rights vested in the Corporation by this Lease Agreement or by law. The provisions of this Lease Agreement and the duties of the City and of its board, officers or employees shall be enforceable by the Corporation by mandamus or other appropriate suit, action or proceeding in any court of competent jurisdiction. Without limiting the generality of the foregoing, the Corporation shall have the right to bring the following actions:
(i) Accounting. By action or suit in equity to require the City and its board, officers and employees and its assigns to account as the trustee of an express trust. (ii) Injunction. By action or suit in equity to enjoin any acts or things that may be unlawful or in violation of the rights of the Corporation. (iii) Mandamus. By mandamus or other suit, action or proceeding at law or in equity to enforce the Corporation’s rights against the City (and its board, officers and employees) and to compel the City to perform and carry out its duties and obligations under the law and its covenants and agreements with the City as provided herein. (d) Each and all of the remedies given to the Corporation hereunder or by any law now or hereafter enacted are cumulative and the single or partial exercise of any right, power or privilege hereunder shall not impair the right of the Corporation to the further exercise thereof or the exercise of any or all other rights, powers or privileges. The term “re-let” or “re-letting” as used in this Section shall include re-letting by means of the operation by the Corporation of the Property. If any statute or rule of law validly shall limit the remedies given to the Corporation hereunder, the Corporation nevertheless shall be entitled to whatever remedies are allowable under any statute or rule of law.
(e) In the event the Corporation shall prevail in any action brought to enforce any of the terms and provisions of this Lease Agreement, the City shall pay a reasonable amount as and for attorney’s fees incurred by the Corporation in attempting to enforce any of the remedies available to the Corporation hereunder.
24 4126-7526-6404.4
(f) Notwithstanding anything to the contrary contained in this Lease Agreement, the Corporation shall have no right upon a default by the City hereunder, a Lease Default Event or otherwise to accelerate Rental Payments.
(g) Notwithstanding anything herein to the contrary, the termination of this Lease Agreement by the Corporation on account of a Lease Default Event shall not effect or result in a termination of the lease of the Property by the City to the Corporation pursuant to the Ground Lease.
(h) Notwithstanding anything to the contrary contained in this Lease Agreement, so long as the Insurer is not in default in its payment obligations under the Insurance Policy, no remedy shall be exercised hereunder without the prior written consent of the Insurer and the Insurer shall have the right to direct the exercise of any remedy hereunder.

Section 7.02. Waiver. Failure of the Corporation to take advantage of any default on the part of the City shall not be, or be construed as, a waiver thereof, nor shall any custom or practice that may grow up between the parties in the course of administering this instrument be construed to waive or to lessen the right of the Corporation to insist upon performance by the City of any term, covenant or condition hereof, or to exercise any right given the Corporation on account of such default. A waiver of a particular default shall not be deemed to be a waiver of any other default or of the same default subsequently occurring. The acceptance of Rental Payments hereunder shall not be, or be construed to be, a waiver of any term, covenant or condition of this Lease Agreement.
25 4126-7526-6404.4

ARTICLE VIII
AMENDMENTS; ASSIGNMENT AND SUBLEASING;

SUBSTITUTION OR RELEASE
Section 8.01. Amendments. (a) This Lease Agreement and the Ground Lease, and the rights and obligations of the Corporation and the City hereunder and thereunder, may be amended at any time by an amendment hereto or thereto, which shall become binding upon execution by the City and the Corporation, but only with the written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owners of a majority of the aggregate amount of principal evidenced by the Certificates then Outstanding, provided that no such amendment shall (i) extend the payment date of any Base Rental Payment, reduce the interest component or principal component of any Base Rental Payment or change the prepayment terms and provisions, without the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owner of each Certificate so affected, or (ii) reduce the percentage of the aggregate amount of principal evidenced by the Certificates, the consent of the Owners of which is required for the execution of any amendment of this Lease Agreement or the Ground Lease without the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and the Owners of all the Certificates then Outstanding. (b) This Lease Agreement and the Ground Lease, and the rights and obligations of the City and the Corporation hereunder and thereunder, may also be amended at any time by an amendment hereto or thereto, which shall become binding upon execution by the City and the Corporation, but without the written consents of any Owners, but only with the prior written consent of the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and only to the extent permitted by law and only for any one or more of the following purposes:
(i) to add to the agreements, conditions, covenants and terms required by the Corporation or the City to be observed or performed herein or therein other agreements, conditions, covenants and terms thereafter to be observed or performed by the Corporation or the City, or to surrender any right or power reserved herein or therein to or conferred herein or therein on the Corporation or the City, and which in either case shall not materially adversely affect the interests of the Insurer or the Owners; (ii) to make such provisions for the purpose of curing any ambiguity or of correcting, curing or supplementing any defective provision contained herein or therein or in regard to questions arising hereunder or thereunder that the Corporation or the City may deem desirable or necessary and not inconsistent herewith or therewith, and which in either case shall not materially adversely affect the interests of the Insurer or the Owners; (iii) to make such additions, deletions or modifications as may be necessary or appropriate to assure the exclusion from gross income for federal income tax purposes of the interest components of Base Rental Payments;
26 4126-7526-6404.4
(iv) to provide for the substitution or release of a portion of the Property in accordance with the provisions of Section 8.03 hereof; or (v) to make such other changes herein or therein or modifications hereto or thereto as the Corporation or the City may deem desirable or necessary, provided such changes or modifications do not adversely affect the rights or interests of the Insurer or the Owners.

Section 8.02. Assignment and Subleasing. Neither this Lease Agreement nor any interest of the City hereunder shall be sold, mortgaged, pledged, assigned or transferred by the City by voluntary act or by operation of law or otherwise; provided, however, that the Property may be subleased in whole or in part by the City with the prior written consent of the Corporation and the Insurer (so long as the Insurer is not in default in its payment obligations under the Insurance Policy) and, provided, further, that, any such sublease shall be subject to all of the following conditions:
(a) this Lease Agreement and the obligation of the City to make all Rental Payments hereunder shall remain the primary obligation of the City; (b) the City shall, within 30 days after the delivery thereof, furnish or cause to be furnished to the Corporation and the Trustee a true and complete copy of such sublease; (c) no such sublease by the City shall cause the Property to be used for a purpose other than a governmental or proprietary function authorized under the provisions of the Constitution and laws of the State of California; (d) any sublease of the Property by the City shall explicitly provide that such sublease is subject to all rights of the Corporation under this Lease Agreement, including, the right to re-enter and re-let the Property or terminate this Lease Agreement upon a Lease Default Event; and
(e) the City shall furnish the Trustee with an Opinion of Counsel to the effect that such sublease will not, in and of itself, cause the interest evidenced by the Certificates to be included in gross income for federal income tax purposes.

Section 8.03. Substitution or Release of the Property. The City shall have the right, but only with the written consent of the Insurer, to substitute alternate real property for any portion of the Property or to release a portion of the Property from this Lease Agreement pursuant to this Section. All costs and expenses incurred in connection with such substitution or release shall be borne by the City. Notwithstanding any substitution or release pursuant to this Section, there shall be no reduction in or abatement of the Base Rental Payments due from the City hereunder as a result of such substitution or release. Any such substitution or release of any portion of the Property shall be subject to the following specific conditions, which are hereby made conditions precedent to such substitution or release:
(a) a qualified employee of the City or an independent certified real estate appraiser selected by the City shall have found (and shall have delivered a certificate to the Corporation and the Insurer setting forth its findings) that the Property, as constituted after 27 4126-7526-6404.4
such substitution or release, (i) has an annual fair rental value greater than or equal to 105% of the maximum amount of Base Rental Payments payable by the City in any Rental Period, and (ii) has a useful life equal to or greater than the maximum remaining term of this Lease Agreement (including extensions thereof under Section 2.02 hereof); (b) the City shall have obtained or caused to be obtained a CLTA or an ALTA title insurance policy or policies with respect to any substituted property in the amount of the fair market value of such substituted property (which fair market value shall have been determined by a qualified employee of the City or an independent certified real estate appraiser) of the type and with the endorsements described in Section 6.02 hereof; (c) the City shall have certified to the Corporation and the Insurer that the substituted real property is essential for performing the City’s governmental functions; (d) the City shall have provided the Trustee with an Opinion of Counsel to the effect that such substitution or release will not, in and of itself, cause the interest evidenced by the Certificates to be included in gross income for federal income tax purposes; and (e) the City, the Corporation and the Trustee shall have executed, and the City shall have caused to be recorded with the San Bernardino County Recorder, any document necessary to reconvey to the City the portion of the Property being substituted or released and to include any substituted real property in the description of the Property contained herein and in the Ground Lease.
28 4126-7526-6404.4

ARTICLE IX

MISCELLANEOUS
Section 9.01. Notices. All written notices, statements, demands, consents, approvals, authorizations, offers, designations, requests or other communications hereunder shall be given to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other parties in writing from time to time, namely:

If to the City: City of Redlands
P.O. Box 3005
Redlands, California 92373
Attention: Director of Management Services/Finance
Department
If to the Corporation: Redlands Public Improvement Corporation 300 East State Street, Suite 690
Redlands, California 92373
Attention: Chief Financial Officer
If to the Trustee: U.S. Bank Trust Company, National Association 633 West Fifth Street, 24th Floor
Los Angeles, California 90071
Attention: Global Corporate Trust
If to the Insurer: [INSURER]
[___________]
[___________], [______] [______]
Attention: [___________]
Re: Insurance Policy No. [___________]
Telephone: [___________]
Email: [___________]
In each case in which the notice or other communication refers to an Event of Default or claim on the Insurance Policy, such notice or other communication shall be marked “URGENT MATERIAL ENCLOSED” and a copy shall also be sent to the attention of the General Counsel at the above address and at [___________].

Each such notice, statement, demand, consent, approval, authorization, offer, designation, request or other communication hereunder shall be deemed delivered to the party to whom it is addressed (a) if given by courier or delivery service or if personally served or delivered, upon delivery, (b) if given by registered or certified mail, return receipt requested, deposited with the United States mail postage prepaid, 72 hours after such notice is deposited with the United States mail, (c) if given by electronic mail, on the date sent, but only if confirmation of the receipt of such electronic mail is received or if notice is concurrently sent by another means specified herein, and (d) if given by any other means, upon delivery at the address specified in this Section. 29 4126-7526-6404.4
Section 9.02. Assignment to Trustee; Effect. The City understands and agrees that, upon the execution and delivery of the Assignment Agreement, which is occurring simultaneously with the execution and delivery hereof, substantially all of the right, title and interest of the Corporation in and to this Lease Agreement will be sold, assigned and transferred to the Trustee for the benefit of the Owners of the Certificates. The City hereby consents to such sale, assignment and transfer.

Upon the execution and delivery of the Assignment Agreement, references in the operative provisions hereof to the Corporation shall be deemed to be references to the Trustee, as assignee of the Corporation.

Section 9.03. Rights of Insurer. As long as the Insurance Policy is in effect and the Insurer is not in default in respect of its payment obligations thereunder, the Insurer shall be deemed to be the sole and exclusive Owner of the Outstanding Certificates for purposes of all approvals, consents, waivers, institution of any action, and the direction of all remedies, including approval of or consent to any amendment of this Lease Agreement and the Ground Lease that requires the consent or approval of the Owners of a majority of the aggregate principal evidenced by the Certificates then Outstanding; provided, however, that the Insurer shall not be deemed to be the sole and exclusive Owner of the Outstanding Certificates with respect to any amendment of this Lease Agreement or the Ground Lease that seeks to amend this Lease Agreement or the Ground Lease for purposes set forth in clause (i) or (ii) of subsection (a) of Section 8.01 hereof, and, provided, further, that the Insurer shall not be deemed to be the sole and exclusive Owner of the Outstanding Certificates for such purposes, and shall not have the right to direct or consent to City, Corporation, Trustee or Owner action, during any period if:
(a) the Insurer shall fail to make any payment under the Insurance Policy when due and such failure shall continue for three Business Days; (b) any material provision of the Insurance Policy shall be held to be invalid by a final, non-appealable order of a court of competent jurisdiction, or the validity or enforceability thereof shall be contested in writing by the Insurer; or (c) a proceeding shall have been instituted in a court having jurisdiction in the premises seeking an order for relief, rehabilitation, reorganization, conservation, liquidation or dissolution in respect of the Insurer under Article 16 of the Insurance Law of the State of New York or any successor provision thereto and such proceeding is not terminated for a period of 90 consecutive days or such court enters an order granting the relief sought in such proceeding.

Section 9.04. Third-Party Beneficiary. The Insurer is a third-party beneficiary of this Lease Agreement.

Section 9.05. Partial Invalidity. If any agreement, condition, covenant or term required herein to be observed or performed by or on the part of the City or the Corporation is, to any extent, held to be invalid or unenforceable in any jurisdiction, but the extent of such invalidity or unenforceability does not destroy the basis of the bargain between the parties as contained herein, the remainder of the agreements, conditions, covenants or terms required herein to be observed or performed by or on the part of the City or the Corporation, or the application of such agreements, conditions, covenants or terms to Persons or circumstances other than those as to which such 30 4126-7526-6404.4
agreement, condition, covenant or term is held invalid or unenforceable, shall not be affected by such invalidity or unenforceability, and each remaining agreement, condition, covenant and term required herein to be observed or performed by or on the part of the City and the Corporation shall be valid and shall be enforced to the fullest extent permitted by law.

Section 9.06. Governing Law. This Lease Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California.

Section 9.07. Electronic Signatures. Each of the parties hereto agrees that the transaction consisting of this Lease Agreement may be conducted by electronic means. Each party agrees, and acknowledges that it is such party’s intent, that if such party signs this Lease Agreement using an electronic signature, it is signing, adopting, and accepting this Lease Agreement and that signing this Lease Agreement using an electronic signature is the legal equivalent of having placed its handwritten signature on this Lease Agreement on paper. Each party acknowledges that it is being provided with an electronic or paper copy of this Lease Agreement in a usable format.

Section 9.08. Execution in Counterparts. This Lease Agreement may be simultaneously executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
4126-7526-6404.4
IN WITNESS WHEREOF, the parties hereto have caused this Lease Agreement to be executed by their respective officers thereunto duly authorized, all as of the day and year first written above.

CITY OF REDLANDS
By:
[________],
[________]

REDLANDS PUBLIC IMPROVEMENT

CORPORATION
By:
[________],
[________]
[Signature Page to Lease Agreement]
1 4126-7526-6404.4

EXHIBIT A

MASTER DEFINITIONS
1 4126-7526-6404.4

EXHIBIT B

DESCRIPTION OF THE PROPERTY
City Police Facility
All that real property situated in San Bernardino County, State of California, described as follows, together with any improvements thereto:
1 4126-7526-6404.4

EXHIBIT C

BASE RENTAL PAYMENT SCHEDULE
Interest Payment
Date
Principal
Component Interest Component
Total Base Rental
Payment
4160-4945-2900.4

TRUST AGREEMENT
by and among
U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION,

AS TRUSTEE
and

REDLANDS PUBLIC IMPROVEMENT CORPORATION
and

CITY OF REDLANDS
Dated as of [________] 1, 2026
Relating To
City of Redlands
Certificates of Participation, Series 2026
(Police and Fire Facilities)

TABLE OF CONTENTS
Page
-i- 4160-4945-2900.4
ARTICLE I DEFINITIONS; RULES OF CONSTRUCTION; EQUAL SECURITY ........... 2 Section 1.01. Definitions.................................................................................................... 2 Section 1.02. Rules of Construction .................................................................................. 2 Section 1.03. Equal Security.............................................................................................. 2 ARTICLE II TERMS AND CONDITIONS OF CERTIFICATES.......................................... 4 Section 2.01. Preparation and Delivery of Certificates...................................................... 4 Section 2.02. Denomination, Medium and Dating of Certificates..................................... 4 Section 2.03. Payment Dates of Certificates; Interest Computation.................................. 4 Section 2.04. Form of Certificates..................................................................................... 5 Section 2.05. Execution of Certificates.............................................................................. 5 Section 2.06. Registration Books....................................................................................... 5 Section 2.07. Transfer and Payment of Certificates; Exchange of Certificates................. 5 Section 2.08. Book-Entry System...................................................................................... 6 Section 2.09. Temporary Certificates ................................................................................ 8 Section 2.10. Certificates Mutilated, Lost, Destroyed or Stolen ....................................... 8 ARTICLE III PROCEEDS OF CERTIFICATES.................................................................... 10 Section 3.01. Delivery of Certificates.............................................................................. 10 Section 3.02. Proceeds of Certificates ............................................................................. 10 Section 3.03. Costs of Issuance Fund .............................................................................. 10 Section 3.04. Acquisition Fund........................................................................................ 10 ARTICLE IV PREPAYMENT OF CERTIFICATES.............................................................. 12 Section 4.01. Terms of Prepayment................................................................................. 12 Section 4.02. Selection of Certificates for Prepayment ................................................... 13 Section 4.03. Notice of Prepayment ................................................................................ 14 Section 4.04. Partial Prepayment of Certificates............................................................. 14 Section 4.05. Effect of Prepayment ................................................................................. 14 ARTICLE V FUNDS AND ACCOUNTS; RENTAL PAYMENTS ..................................... 16 Section 5.01. Pledge; Base Rental Payment Fund ........................................................... 16 Section 5.02. Deposit of Base Rental Payments.............................................................. 17 Section 5.03. Application of Net Proceeds...................................................................... 18

TABLE OF CONTENTS
(continued)
Page
-ii- 4160-4945-2900.4
Section 5.04. Title Insurance ........................................................................................... 19 Section 5.05. Rebate Fund ............................................................................................... 19 Section 5.06. Investments................................................................................................ 20 ARTICLE VI COVENANTS; LIMITATIONS ON LIABILITY ........................................... 21 Section 6.01. Compliance with Trust Agreement............................................................ 21 Section 6.02. Compliance with Ground Lease and Lease Agreement............................. 21 Section 6.03. Observance of Laws and Regulations........................................................ 21 Section 6.04. Other Liens................................................................................................. 21 Section 6.05. Prosecution and Defense of Suits .............................................................. 22 Section 6.06. Recordation................................................................................................ 22 Section 6.07. Tax Covenants ........................................................................................... 22 Section 6.08. Continuing Disclosure ............................................................................... 22 Section 6.09. No Liability by the Corporation to the Owners......................................... 22 Section 6.10. No Liability by the City to the Owners...................................................... 23 Section 6.11. No Liability of the Trustee to the Owners................................................. 23 Section 6.12. Further Assurances..................................................................................... 23 ARTICLE VII EVENTS OF DEFAULT AND REMEDIES.................................................... 24 Section 7.01. Action on Default....................................................................................... 24 Section 7.02. Other Remedies of the Trustee .................................................................. 24 Section 7.03. Non-Waiver................................................................................................ 24 Section 7.04. Remedies Not Exclusive ............................................................................ 25 Section 7.05. Application of Amounts After Event of Default........................................ 25 Section 7.06. Trustee May Enforce Claims Without Possession of Certificates............. 25 Section 7.07. Limitation on Suits..................................................................................... 26 ARTICLE VIII THE TRUSTEE................................................................................................. 27 Section 8.01. Duties and Liabilities of Trustee................................................................ 27 Section 8.02. Qualifications; Removal and Resignation; Successors.............................. 27 Section 8.03. Liabilities of the Trustee ............................................................................ 28 Section 8.04. Right to Rely on Documents and Opinions............................................... 30 Section 8.05. Accounting Records and Financial Statements.......................................... 30

TABLE OF CONTENTS
(continued)
Page
-iii- 4160-4945-2900.4
Section 8.06. Preservation and Inspection of Documents................................................ 30 Section 8.07. Compensation and Indemnification ........................................................... 31 ARTICLE IX AMENDMENT OF OR SUPPLEMENT TO TRUST AGREEMENT............ 32 Section 9.01. Amendment or Supplement ....................................................................... 32 Section 9.02. Disqualified Certificates ............................................................................ 33 Section 9.03. Endorsement or Replacement of Certificates After Amendment or Supplement............................................................................................ 33 Section 9.04. Amendment by Mutual Consent................................................................ 33 ARTICLE X DEFEASANCE ................................................................................................. 34 Section 10.01. Discharge of Trust Agreement................................................................. 34 Section 10.02. Certificates Deemed To Have Been Paid................................................. 34 Section 10.03. Unclaimed Moneys.................................................................................. 35 ARTICLE XI INSURANCE POLICY PROVISIONS ............................................................ 37 Section 11.01. Insurer To Be Deemed Owner; Rights of the Insurer; Payments by the Insurer; Notices................................................................................ 37 Section 11.02. Deposits to Policy Payments Account; Payments Under the Insurance Policy .................................................................................... 40 Section 11.03. Reporting Requirements .......................................................................... 42 ARTICLE XII MISCELLANEOUS.......................................................................................... 44 Section 12.01. Benefits of Trust Agreement.................................................................... 44 Section 12.02. Successor Deemed Included in all References to Predecessor................ 44 Section 12.03. Execution of Documents by Owners ....................................................... 44 Section 12.04. Waiver of Personal Liability.................................................................... 44 Section 12.05. Acquisition of Certificates by City .......................................................... 44 Section 12.06. Content of Certificates............................................................................. 45 Section 12.07. Funds and Accounts................................................................................. 45 Section 12.08. Third-Party Beneficiary ........................................................................... 45 Section 12.09. Partial Invalidity....................................................................................... 45 Section 12.10. Notices ..................................................................................................... 46 Section 12.11. Electronic Signatures............................................................................... 47 Section 12.12. Governing Law ........................................................................................ 47

TABLE OF CONTENTS
(continued)
Page
-iv- 4160-4945-2900.4
Section 12.13. Execution in Counterparts........................................................................ 47 EXHIBIT A MASTER DEFINITIONS....................................................................................A-1 EXHIBIT B FORM OF CERTIFICATE.................................................................................. B-1

EXHIBIT C FORM OF WRITTEN REQUEST FOR DISBURSEMENTS FROM THE ACQUISITION FUND ................................................................................... C-1

EXHIBIT D FORM OF WRITTEN CERTIFICATE OF THE CITY REGARDING COMPLETION OF PROJECT .......................................................................D-1 4160-4945-2900.4

TRUST AGREEMENT
THIS TRUST AGREEMENT (this “Trust Agreement”), dated as of [________] 1, 2026, is by and among U.S. BANK TRUST COMPANY, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee”), the REDLANDS PUBLIC IMPROVEMENT CORPORATION, a nonprofit public benefit corporation organized and existing under the laws of the State of California (the “Corporation”), and the CITY OF REDLANDS, a municipal corporation and general law city organized and existing under the laws of the State of California (the “City”).

W I T N E S S E T H:

WHEREAS, the City desires to finance a portion of the costs of the construction, installation and acquisition of certain capital improvements constituting a city police facility and related improvements and a city fire station and related improvements and the acquisition and installation of certain heating, ventilation and air conditioning systems (collectively, the “Project”); and
WHEREAS, in order to finance the Project, the City will lease certain real property owned by the City and the improvements thereto (the “Property”) to the Corporation pursuant to a Ground Lease, dated as of the date hereof (the “Ground Lease”), and the City will sublease the Property back from the Corporation pursuant to a Lease Agreement, dated as of the date hereof (the “Lease Agreement”); and
WHEREAS, the City and the Corporation have determined that it would be in the best interests of the City and the Corporation to provide a portion of the funds necessary to finance the Project through the sale and delivery, pursuant to this Trust Agreement, of the City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities) (the “Certificates”) evidencing direct, fractional undivided interests in the base rental payments to be made by the City under the Lease Agreement; and
WHEREAS, all rights to receive such base rental payments have been assigned without recourse by the Corporation to the Trustee pursuant to an Assignment Agreement, dated as of the date hereof; and
WHEREAS, in consideration of such assignment and the execution of this Trust Agreement, the Trustee has agreed to execute and deliver the Certificates, each evidencing a direct, fractional undivided interest in such base rental payments; and WHEREAS, all acts, conditions and things required by law to exist, to have happened and to have been performed precedent to and in connection with the execution and entering into of this Trust Agreement do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the parties hereto are now duly authorized to execute and enter into this Trust Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and covenants contained herein and for other valuable consideration, the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows:
2 4160-4945-2900.4

ARTICLE I
DEFINITIONS; RULES OF CONSTRUCTION; EQUAL SECURITY
Section 1.01. Definitions. Certain terms are defined in Exhibit A attached hereto and by this reference incorporated herein. Unless the context otherwise requires, the terms defined in Exhibit A hereto shall, for all purposes hereof and of any certificate, opinion or other document mentioned herein or therein, have the meanings herein specified.

Section 1.02. Rules of Construction. (a) The terms defined herein expressed in the singular shall, unless the context otherwise indicates, include the plural and vice versa. (b) The use herein of the masculine, feminine or neuter gender is for convenience only and shall be deemed and construed to include correlative words of the masculine, feminine or neuter gender, as appropriate.
(c) References herein to a document shall include all amendments, supplements or other modifications to such document, and any replacements, substitutions or novation of, that document.
(d) Any term defined herein by reference to another document shall continue to have the meaning ascribed thereto whether or not such other document remains in effect. (e) The use herein of the words “including” and “includes,” and words of similar import, shall be deemed to be followed by the phrase “without limitation.” (f) Headings of Articles and Sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof.
(g) All references herein to designated “Articles,” “Sections,” “Exhibits,” “subsections,” “paragraphs,” “clauses,” and other subdivisions are to the designated Articles, Sections, Exhibits, subsections, paragraphs, clauses, and other subdivisions of this Trust Agreement.
(h) The words “hereof” (except when preceded by a specific Section or Article reference), “herein,” “hereby,” “hereunder,” “hereinabove,” “hereinafter,” and other equivalent words and phrases used herein refer to this Trust Agreement and not solely to the particular portion hereof in which any such word is used.
(i) Any reference to a Person, or a Person in a specified capacity, shall be construed to include such Person’s successors or such Person’s successors in such capacity, as the case may be.

Section 1.03. Equal Security. In consideration of the acceptance of the Certificates by the Owners, this Trust Agreement shall be deemed to be and shall constitute a contract between the Trustee and the Owners to secure the full and final payment of the interest and principal evidenced by the Certificates that may be executed and delivered hereunder, subject to each of the agreements, conditions, covenants and terms contained herein; and all agreements, conditions, 3 4160-4945-2900.4
covenants and terms contained herein required to be observed or performed by or on behalf of the Trustee shall be for the equal and proportionate benefit, protection and security of all Owners without distinction, preference or priority as to security or otherwise of any Certificate over any other Certificate by reason of the number or date thereof or the time of execution or delivery thereof or for any cause whatsoever, except as expressly provided herein or therein. 4 4160-4945-2900.4

ARTICLE II

TERMS AND CONDITIONS OF CERTIFICATES
Section 2.01. Preparation and Delivery of Certificates. The Trustee is hereby authorized and directed to prepare the Certificates and, upon the Written Request of the City, shall execute and deliver the Certificates in the aggregate amount of $[PAR AMOUNT] evidencing the aggregate principal components of the Base Rental Payments and each evidencing a direct, fractional undivided interest in the Base Rental Payments. The Certificates shall be numbered, with or without prefixes, as directed by the Trustee. The Trustee is hereby authorized to deliver the Certificates to the Purchaser pursuant to the Certificate Purchase Agreement upon receipt of a Written Request of the City and upon receipt of the proceeds of sale thereof.

Section 2.02. Denomination, Medium and Dating of Certificates. The Certificates shall be designated “City of Redlands Certificates of Participation, Series 2026 (Police and Fire Facilities),” shall be prepared in the form of fully registered Certificates, without coupons, in Authorized Denominations and shall be payable in lawful money of the United States of America.

The Certificates shall be dated the Delivery Date. Each Certificate shall evidence interest from the Interest Payment Date next preceding its date of execution to which interest has been paid in full, unless such date of execution shall be after a Record Date and on or prior to the following Interest Payment Date, in which case such Certificate shall evidence interest from such Interest Payment Date, or unless such date of execution shall be on or prior to October 15, 2026, in which case such Certificate shall represent interest from the Delivery Date. Notwithstanding the foregoing, if, as shown by the records of the Trustee, interest evidenced by the Certificates shall be in default, each Certificate shall evidence interest from the last Interest Payment Date to which such interest has been paid in full or duly provided for.

Section 2.03. Payment Dates of Certificates; Interest Computation. Method and Place of Payment. (a) The principal evidenced by the Certificates shall become due and payable, subject to prior prepayment, on May 1 of the years, in the amounts, and shall accrue interest at the rates per annum set forth below, computed on the basis of a 360-day year consisting of twelve 30-day months:

Principal Payment Date
(May 1,)
Principal
Component
Interest
Rate
Except as otherwise provided in the Letter of Representations, payments of interest evidenced by the Certificates shall be made to the Owners thereof, as determined at the close of business on the Record Date next preceding the related Interest Payment Date, by check or draft 5 4160-4945-2900.4
of the Trustee mailed to the address of each such Owner as it appears on the Registration Books, or to such other address as may be furnished in writing to the Trustee by each such Owner. Except as otherwise provided in the Letter of Representations, payment of principal and prepayment premium, if any, evidenced by the Certificates, on their stated Principal Payment Dates or on prepayment in whole or in part prior thereto, shall be made only upon presentation and surrender of the Certificates at the Principal Office of the Trustee. (b) Computation of Interest. The interest evidenced by the Certificates shall be payable on each Interest Payment Date to and including their respective Principal Payment Dates or prepayment prior thereto, and shall represent the sum of the portions of the Base Rental Payments evidenced thereby designated as interest components coming due on the Interest Payment Dates in each year. The principal evidenced by the Certificates shall be payable on their respective Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year and shall represent the sum of the portions of the Base Rental Payments designated as principal components coming due on the Principal Payment Dates and Mandatory Sinking Account Payment Dates in each year.

Section 2.04. Form of Certificates. The Certificates shall be in substantially the form of Exhibit B hereto, with necessary or appropriate insertions, omissions and variations as permitted or required hereby.

Section 2.05. Execution of Certificates. The Certificates shall be executed by the Trustee by the manual signature of an authorized signatory of the Trustee.

Section 2.06. Registration Books. (a) The Trustee shall keep at its Principal Office sufficient books for the registration and transfer of the Certificates, which books shall be available for inspection and copying by the City and the Insurer at reasonable hours and under reasonable conditions; and upon presentation for such purpose the Trustee shall, under such reasonable regulations as it may prescribe, register or transfer the Certificates on such books as hereinabove provided.
(b) The Trustee may treat the Owner of any Certificate as the absolute owner of such Certificate for all purposes, whether or not the principal or interest evidenced by such Certificate shall be overdue, and the Trustee shall not be affected by any knowledge or notice to the contrary; and payment of the interest and principal evidenced by such Certificate shall be made only to such Owner, which payments shall be valid and effectual to satisfy and discharge the liability evidenced by such Certificate to the extent of the sum or sums so paid.

Section 2.07. Transfer and Payment of Certificates; Exchange of Certificates. (a) Each Certificate is transferable by the Owner thereof, in person or by such Owner’s attorney duly authorized in writing, at the Principal Office of the Trustee, upon surrender of such Certificate for cancellation accompanied by delivery of a duly executed written instrument of transfer in a form approved by the Trustee.
(b) Whenever any Certificate shall be surrendered for transfer, the Trustee shall execute and deliver a new Certificate or Certificates evidencing principal in the same aggregate amount and having the same stated Principal Payment Date. The Trustee shall require the payment 6 4160-4945-2900.4
by any Owner requesting such transfer of any tax or other governmental charge required to be paid with respect to such transfer.
(c) Each Certificate may be exchanged at the Principal Office of the Trustee for Certificates evidencing principal in a like aggregate amount and having the same stated Principal Payment Date in such Authorized Denominations as the Owner thereof may request. The Trustee shall require the payment by the Owner requesting such exchange of any tax or other governmental charge required to be paid with respect to such exchange. (d) The Trustee shall not be required to transfer or exchange any Certificate during the period commencing on the date five days before the date of selection of Certificates for prepayment and ending on the date of mailing notice of such prepayment, nor shall the Trustee be required to transfer or exchange any Certificate or portion thereof selected for prepayment from and after the date of mailing the notice of prepayment thereof.

Section 2.08. Book-Entry System. (a) The Certificates shall initially be executed and delivered as Book-Entry Certificates and the Certificates for each stated Principal Payment Date shall be in the form of a separate single fully registered Certificate (which may be typewritten).

The ownership of each Book-Entry Certificate shall be registered in the Registration Books in the name of the Nominee, as nominee of the Depository. Payment of principal or interest evidenced by any Book-Entry Certificate registered in the name of the Nominee shall be made on the applicable payment date by wire transfer of New York clearing house or equivalent next day funds or by wire transfer of same day funds to the account of the Nominee. Such payments shall be made to the Nominee at the address that is, on the Record Date, shown for the Nominee in the Registration Books.
(b) With respect to Book-Entry Certificates, the City, the Corporation and the Trustee shall have no responsibility or obligation to any Participant or to any person on behalf of which such a Participant holds an interest in such Book-Entry Certificates. Without limiting the immediately preceding sentence, the City, the Corporation and the Trustee shall have no responsibility or obligation with respect to (i) the accuracy of the records of the Depository, the Nominee or any Participant with respect to any ownership interest in Book-Entry Certificates, (ii) the delivery to any Participant or any other person, other than an Owner as shown in the Registration Books, of any notice with respect to Book-Entry Certificates, including any notice of prepayment, (iii) the selection by the Depository and its Participants of the beneficial interests in Book-Entry Certificates to be prepaid in the event Certificates are prepaid in part, (iv) the payment to any Participant or any other person, other than an Owner as shown in the Registration Books, of any amount with respect to principal, premium, if any, or interest evidenced by Book-Entry Certificates, or (v) any consent given or other action taken by the Depository as Owner. (c) The City and the Trustee may treat and consider the person in whose name each Book-Entry Certificate is registered in the Registration Books as the absolute Owner of such BookEntry Certificate for the purpose of payment of principal, prepayment premium, if any, and interest evidenced by such Certificate, for the purpose of selecting any Certificates, or portions thereof, to be prepaid, for the purpose of giving notices of prepayment and other matters with respect to such Certificate, for the purpose of registering transfers with respect to such Certificate, for the purpose of obtaining any consent or other action to be taken by Owners and for all other purposes 7 4160-4945-2900.4
whatsoever, and the City, the Corporation and the Trustee shall not be affected by any notice to the contrary.
(d) In the event of a prepayment of all or a portion of a Certificate, the Depository, in its discretion (i) may request the Trustee to execute and deliver a new Certificate, or (ii) if DTC is the sole Owner of such Certificate, shall make an appropriate notation on the Certificate indicating the date and amounts of the reduction in principal evidenced thereby resulting from such prepayment, except in the case of final payment, in which case such Certificate must be presented to the Trustee prior to payment.
(e) The Trustee shall pay all principal, premium, if any, and interest evidenced by the Certificates only to or “upon the order of” (as that term is used in the Uniform Commercial Code as adopted in the State of California) the respective Owner, as shown in the Registration Books, or such Owner’s respective attorney duly authorized in writing, and all such payments shall be valid and effective to fully satisfy and discharge the obligations with respect to payment of principal, premium, if any, and interest evidenced by the Certificates to the extent of the sum or sums so paid. No person other than an Owner, as shown in the Registration Books, shall receive a Certificate evidencing principal, premium, if any, and interest evidenced by the Certificates. Upon delivery by the Depository to the Owners, the Trustee and the City of written notice to the effect that the Depository has determined to substitute a new nominee in place of the Nominee, and subject to the provisions herein with respect to Record Dates, the word Nominee in this Trust Agreement shall refer to such nominee of the Depository. (f) In order to qualify the Book-Entry Certificates for the Depository’s book-entry system, the City shall execute and deliver to the Depository a Letter of Representations. The execution and delivery of a Letter of Representations shall not in any way impose upon the Corporation, the City or the Trustee any obligation whatsoever with respect to persons having interests in such Book-Entry Certificates other than the Owners, as shown on the Registration Books. Such Letter of Representations may provide the time, form, content and manner of transmission, of notices to the Depository. In addition to the execution and delivery of a Letter of Representations by the City, the City, the Corporation and the Trustee shall take such other actions, not inconsistent with this Trust Agreement, as are reasonably necessary to qualify Book-Entry Certificates for the Depository’s book-entry program.
(g) In the event the City determines that it is in the best interests of the Beneficial Owners that they be able to obtain certificated Certificates and that such Certificates should therefore be made available and notifies the Depository and the Trustee of such determination, the Depository shall notify the Participants of the availability through the Depository of certificated Certificates. In such event, the Trustee shall transfer and exchange certificated Certificates as requested by the Depository and any other Owners in appropriate amounts. In the event (i) the Depository determines not to continue to act as securities depository for Book-Entry Certificates, or (ii) the Depository shall no longer so act and gives notice to the Trustee of such determination, then the City shall discontinue the Book-Entry system with the Depository. If the City determines to replace the Depository with another qualified securities depository, the City shall prepare or direct the preparation of a new single, separate, fully registered Certificate for each stated Principal Payment Date of such Book-Entry Certificates, registered in the name of such successor or substitute qualified securities depository or its nominee. If the City fails to identify another 8 4160-4945-2900.4
qualified securities depository to replace the Depository, then the Certificates shall no longer be restricted to being registered in the Registration Books in the name of the Nominee, but shall be registered in whatever name or names the Owners transferring or exchanging such Certificates shall designate, in accordance with the provisions of Sections 2.06 and 2.07 hereof. Whenever the Depository requests the City to do so, the City shall cooperate with the Depository in taking appropriate action after reasonable notice (i) to make available one or more separate certificates evidencing the Book-Entry Certificates to any Participant having Book-Entry Certificates credited to its account with the Depository, and (ii) to arrange for another securities depository to maintain custody of certificates evidencing the Book-Entry Certificates. (h) Notwithstanding any other provision of this Trust Agreement to the contrary, if DTC is the sole Owner of the Certificates, so long as any Book-Entry Certificate is registered in the Registration Books in the name of the Nominee, all payments of principal, premium, if any, and interest evidenced by such Certificate and all notices with respect to such Certificate shall be made and given, respectively, as provided in the Letter of Representations or as otherwise instructed by the Depository.
(i) In connection with any notice or other communication to be provided to Owners pursuant to this Trust Agreement by the City, the Corporation or the Trustee, with respect to any consent or other action to be taken by Owners, the Trustee shall establish a record date for such consent or other action and give the Depository notice of such record date no later than 15 calendar days in advance of such record date to the extent possible. Notice to the Depository shall be given only when DTC is the sole Owner of the Certificates.

Section 2.09. Temporary Certificates. The Certificates may be initially delivered in temporary form exchangeable for definitive Certificates when ready for delivery, which temporary Certificates shall be printed, lithographed or typewritten, shall be of such denominations as may be determined by the Trustee, shall be in fully registered form and shall contain such reference to any of the provisions hereof as may be appropriate. Every temporary Certificate shall be executed and delivered by the Trustee upon the same conditions and terms and in substantially the same manner as definitive Certificates. If the Trustee executes and delivers temporary Certificates, it shall prepare and execute definitive Certificates without delay, and thereupon the temporary Certificates may be surrendered at the Principal Office of the Trustee in exchange for such definitive Certificates, and until so exchanged such temporary Certificates shall be entitled to the same benefits hereunder as definitive Certificates executed and delivered hereunder.

Section 2.10. Certificates Mutilated, Lost, Destroyed or Stolen. If any Certificate shall become mutilated, the Trustee, at the expense of the Owner thereof, shall execute and deliver a new Certificate evidencing a like principal amount and having the same stated Principal Payment Date and number in exchange and substitution for the Certificate so mutilated, but only upon surrender to the Trustee of the Certificate so mutilated. Every mutilated Certificate so surrendered to the Trustee shall be canceled by it and disposed of in a manner deemed appropriate by the Trustee. If any Certificate shall be lost, destroyed or stolen, evidence of such loss, destruction or theft may be submitted to the Trustee, and if such evidence is satisfactory to the Trustee and indemnity satisfactory to the Trustee shall be given, the Trustee, at the expense of the Owner thereof, shall execute and deliver a new Certificate evidencing a like principal amount and having the same stated Principal Payment Date, numbered as the Trustee shall determine, in lieu of and 9 4160-4945-2900.4
in substitution for the Certificate so lost, destroyed or stolen. The Trustee may require payment of a sum not exceeding the actual cost of preparing each new Certificate executed and delivered by it under this Section and of the expenses that may be incurred by it under this Section. Any Certificate executed and delivered under the provisions of this Section in lieu of any Certificate alleged to be lost, destroyed or stolen shall be equally and proportionately entitled to the benefits hereof with all other Certificates executed and delivered hereunder, and the Trustee shall not be required to treat both the original Certificate and any replacement Certificate as being Outstanding for the purpose of determining the amount of Certificates that may be executed and delivered hereunder or for the purpose of determining any percentage of Certificates Outstanding hereunder, but both the original and replacement Certificate shall be treated as one and the same.

Notwithstanding any other provision of this Section, in lieu of executing and delivering a new Certificate for a Certificate that has been lost, destroyed or stolen and that evidences principal that is then payable, the Trustee may make payment of such Certificate to the Owner thereof if so instructed by the City.
10 4160-4945-2900.4

ARTICLE III

PROCEEDS OF CERTIFICATES
Section 3.01. Delivery of Certificates. The Trustee shall execute the Certificates and deliver the Certificates to the Purchaser upon receipt of a Written Request of the City and upon receipt of the proceeds of sale thereof in the amount specified in Section 3.02.

Section 3.02. Proceeds of Certificates. The proceeds of the Certificates shall be used by the Corporation to pay the City the rental payment due under the Ground Lease. The City hereby directs the Corporation to make such payment to the Trustee. The proceeds of the sale of the Certificates so received by the Trustee, $__________ (which constitutes the purchase price of the Certificates less the premium for the Insurance Policy ($__________) to be wired directly to the Insurer by the Purchaser), shall be deposited by the Trustee as follows:
(a) the Trustee shall deposit in the Capitalized Interest Account within the Interest Fund established pursuant to Section 5.02 hereof the amount of $__________; (b) the Trustee shall deposit in the Costs of Issuance Fund established pursuant to Section 3.03 hereof the amount of $__________; and
(c) the Trustee shall deposit in the Acquisition Fund established pursuant to Section 3.04 hereof the amount of $__________.

The Trustee may establish and use temporary funds or accounts in its records to facilitate and record such deposit and transfer.

Section 3.03. Costs of Issuance Fund. (a) The Trustee shall establish and maintain a separate special fund to be held by the Trustee designated the “Costs of Issuance Fund.” On the Delivery Date, there shall be deposited in the Costs of Issuance Fund the amount required to be deposited therein pursuant to Section 3.02 hereof.
(b) The Trustee shall disburse moneys from the Costs of Issuance Fund on such dates and in such amounts as are necessary to pay Costs of Issuance, in each case upon the Written Request of the City, stating the person to whom payment is to be made, the amount to be paid, the purpose for which the obligation was incurred and that such payment is a proper charge against the Costs of Issuance Fund. On the last Business Day that is no later than six months after the Delivery Date, the Trustee shall transfer any amounts then remaining in the Costs of Issuance Fund to the Base Rental Payment Fund and the Trustee shall close the Costs of Issuance Fund.

Section 3.04. Acquisition Fund. (a) The Trustee shall establish and maintain a separate fund to be held by the Trustee designated the “Acquisition Fund.” On the Delivery Date, there shall be deposited in the Acquisition Fund the amount required to be deposited therein pursuant to Section 3.02 hereof. All moneys in the Acquisition Fund shall be held by the Trustee in trust and applied by the Trustee, as provided in this Section, to the payment of Acquisition Costs. (b) Upon receipt by the Trustee of a Written Request of the City requesting the Trustee to make a payment from the Acquisition Fund, which Written Request shall be in substantially the 11 4160-4945-2900.4
form of Exhibit C hereto, the Trustee shall pay the amount set forth in such Written Request as directed by the terms thereof.
(c) Upon the filing of a Written Certificate of the City stating (i) that the Project has been completed and that all costs of the Project have been paid, or (ii) that the Project has been substantially completed and that all remaining costs of the Project to be paid from the Acquisition Fund have been determined and specifying the amount to be retained therefor, which Written Certificate shall be in substantially the form of Exhibit D hereto, the Trustee shall (A) if the amount remaining in the Acquisition Fund (less any such retention) is equal to or greater than $50,000, transfer the portion of such amount equal to the largest integral multiple of $5,000 that is not greater than such amount to the Prepayment Fund, to be applied to the prepayment of Certificates pursuant to Section 4.01(b) hereof, and (B) after making the transfer, if any, required to be made pursuant to the preceding clause (A), transfer all of the amount remaining in the Acquisition Fund (less any such retention) to the Base Rental Payment Fund, to be applied to the payment of interest evidenced by the Certificates.
12 4160-4945-2900.4

ARTICLE IV

PREPAYMENT OF CERTIFICATES
Section 4.01. Terms of Prepayment. (a) Extraordinary Prepayment. The Certificates are subject to prepayment prior to their stated Principal Payment Dates, on any date, in whole or in part, in Authorized Denominations, from and to the extent of any Net Proceeds received with respect to all or a portion of the Property, deposited by the Trustee in the Prepayment Fund pursuant to Sections 5.03 and 5.04 hereof, at a prepayment price equal to the principal evidenced by the Certificates to be prepaid, plus unpaid accrued interest, if any, evidenced thereby to the date fixed for prepayment, without premium.
(b) Optional Prepayment. The Certificates maturing on or after May 1, 20[__] are subject to optional prepayment prior to their respective stated Principal Payment Dates, on any date on or after May 1, 20[__], in whole or in part, in Authorized Denominations, from and to the extent of prepaid Base Rental Payments paid pursuant to subsection (a) of Section 3.07 of the Lease Agreement, any such prepayment to be at a price equal to the principal evidenced by the Certificates to be prepaid, plus unpaid accrued interest evidenced thereby to the date fixed for prepayment, without premium.
(c) Mandatory Sinking Account Prepayment. The Certificates with a stated Principal Payment Date of May 1, 20[__] are subject to prepayment prior to such stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each May 1 specified below, at a prepayment price equal to the principal evidenced thereby, plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor shall be as follows:

Prepayment Date
(May 1,)
Principal
To Be Prepaid
$ *
_________________
*Stated Principal Payment Date
If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (a) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (a) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in proportion to the amount by which the principal components of the Base Rental Payments evidenced by such Certificates payable on such prepayment dates are abated pursuant to Section 3.06 of the Lease Agreement as a result of the event that caused such Certificates to be prepaid pursuant to subsection (a) of Section 4.01 hereof in amounts of Authorized Denominations. If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to 13 4160-4945-2900.4
subsection (b) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (b) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in amounts of Authorized Denominations to correspond to the prepaid Base Rental Payments elected by the City pursuant to Section 3.07 of the Lease Agreement.

The Certificates with a stated Principal Payment Date of May 1, 20[__] are subject to prepayment prior to such stated Principal Payment Date, in part, from Mandatory Sinking Account Payments, on each May 1 specified below, at a prepayment price equal to the principal evidenced thereby, plus accrued interest evidenced thereby to the date fixed for prepayment, without premium. The principal evidenced by such Certificates to be so prepaid and the dates therefor shall be as follows:

Prepayment Date
(May 1,)
Principal
To Be Prepaid
$ *
_________________
*Stated Principal Payment Date
If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (a) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (a) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in proportion to the amount by which the principal components of the Base Rental Payments evidenced by such Certificates payable on such prepayment dates are abated pursuant to Section 3.06 of the Lease Agreement as a result of the event that caused such Certificates to be prepaid pursuant to subsection (a) of Section 4.01 hereof in amounts of Authorized Denominations. If some but not all of the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] is prepaid pursuant to subsection (b) of Section 4.01 hereof, the principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] to be prepaid pursuant to subsection (c) of Section 4.01 hereof on any subsequent May 1 shall be reduced by the aggregate principal evidenced by the Certificates with a stated Principal Payment Date of May 1, 20[__] so prepaid pursuant to subsection (b) of Section 4.01 hereof, such reduction to be allocated among prepayment dates in amounts of Authorized Denominations to correspond to the prepaid Base Rental Payments elected by the City pursuant to Section 3.07 of the Lease Agreement.

Section 4.02. Selection of Certificates for Prepayment. Whenever less than all the Outstanding Certificates are to be prepaid on any one date, the Trustee shall select the Certificates to be prepaid (a) with respect to any prepayment pursuant to subsection (a) of Section 4.01 hereof, among Certificates with different stated Principal Payment Dates in proportion to the amount by 14 4160-4945-2900.4
which the principal components of the Base Rental Payments evidenced by such Certificates are abated pursuant to Section 3.06 of the Lease Agreement, and (b) with respect to any prepayment pursuant to subsection (b) of Section 4.01 hereof, as directed in a Written Request of the City, and by lot among Certificates with the same stated Principal Payment Date in any manner that the Trustee deems fair and appropriate, which decision shall be final and binding upon the City and the Owners. The Trustee shall promptly notify the City in writing of the numbers of the Certificates so selected for prepayment on such date. For purposes of such selection, any Certificate may be prepaid in part in Authorized Denominations.

Section 4.03. Notice of Prepayment. (a) The Trustee shall mail (by first class mail) notice of any prepayment to the respective Owners of any Certificates designated for prepayment at their respective addresses appearing on the Registration Books at least 30 but not more than 60 days prior to the date fixed for prepayment. Such notice shall state the date of the notice, the prepayment date, the prepayment place and the prepayment price and shall designate the CUSIP numbers, if any, the Certificate numbers and the stated Principal Payment Date or Principal Payment Dates of the Certificates to be prepaid (except in the event of prepayment of all of the Certificates in whole), and shall require that such Certificates be then surrendered at the Principal Office of the Trustee for prepayment at the prepayment price, giving notice also that further interest evidenced by such Certificates will not accrue from and after the date fixed for prepayment.

Neither the failure to receive any notice so mailed, nor any defect in such notice, shall affect the validity of the proceedings for the prepayment of the Certificates or the cessation of accrual of interest evidenced thereby from and after the date fixed for prepayment. (b) With respect to any notice of any optional prepayment of Certificates, unless at the time such notice is given the Certificates to be prepaid shall be deemed to have been paid within the meaning of Section 10.02 hereof, such notice shall state that such prepayment is conditional upon receipt by the Trustee, on or prior to the date fixed for such prepayment, of moneys that, together with other available amounts held by the Trustee, are sufficient to pay the prepayment price of, and accrued interest evidenced by, the Certificates to be prepaid, and that if such moneys shall not have been so received said notice shall be of no force and effect and such Certificates shall not be required to be prepaid. In the event a notice of prepayment of Certificates contains such a condition and such moneys are not so received, the prepayment of Certificates as described in the conditional notice of prepayment shall not be made and the Trustee shall, within a reasonable time after the date on which such prepayment was to occur, give notice to the Persons and in the manner in which the notice of prepayment was given, that such moneys were not so received and that there shall be no prepayment of Certificates pursuant to such notice of prepayment.

Section 4.04. Partial Prepayment of Certificates. Upon surrender of any Certificate prepaid in part only, the Trustee shall execute and deliver to the Owner thereof a new Certificate or Certificates evidencing the unprepaid principal with respect to the Certificate surrendered.

Section 4.05. Effect of Prepayment. If notice of prepayment has been duly given as aforesaid and moneys for the payment of the prepayment price of the Certificates to be prepaid are held by the Trustee, then on the prepayment date designated in such notice, the Certificates so called for prepayment shall become payable at the prepayment price specified in such notice; and from and after the date so designated, interest evidenced by the Certificates so called for prepayment shall cease to accrue, such Certificates shall cease to be entitled to any benefit or 15 4160-4945-2900.4
security hereunder and the Owners of such Certificates shall have no rights in respect thereof except to receive payment of the prepayment price thereof, and such moneys shall be pledged to such prepayment. The Trustee shall, upon surrender for payment of any of the Certificates to be prepaid, pay such Certificates at the prepayment price thereof.

All Certificates prepaid pursuant to the provisions of this Article shall be canceled by the Trustee and shall not be redelivered.
16 4160-4945-2900.4

ARTICLE V
FUNDS AND ACCOUNTS; RENTAL PAYMENTS
Section 5.01. Pledge; Base Rental Payment Fund. (a) Subject only to the provisions of this Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth herein, in order to secure the City’s obligations hereunder and under the Lease Agreement, the City hereby irrevocably pledges to the Owners, and grants a lien on and a security interest in, all of its right, title and interest, if any, in and to all amounts on deposit from time to time in the funds and accounts established hereunder (other than the Rebate Fund), which amounts shall be used for the payment of the Base Rental Payments in accordance with the terms hereof and of the Lease Agreement. Said pledge shall constitute a first lien on and security interest in such assets, which shall immediately attach to such assets and be effective, binding and enforceable against the City, its successors, purchasers of any of such assets, creditors and all others asserting rights therein, to the extent set forth in, and in accordance with, this Trust Agreement, irrespective of whether those parties have notice of the pledge of, lien on and security interest in such assets and without the need for any physical delivery, recordation, filing or further act. (b) It is the intent of the parties hereto that the Corporation not have any right, title or interest in or to the amounts on deposit from time to time in the funds and accounts established hereunder. If, contrary to the intent of the parties hereto, the Corporation is found to have any right, title or interest in or to any such amounts, then, subject only to the provisions of this Trust Agreement permitting the application thereof for the purposes and on the terms and conditions set forth herein, the Corporation hereby irrevocably pledges to the Owners, and grants a lien on and a security interest in, all of its right, title and interest, if any, in and to all amounts on deposit from time to time in the funds and accounts established hereunder (other than the Rebate Fund). Said pledge shall constitute a first lien on and security interest in such assets, which shall immediately attach to such assets and be effective, binding and enforceable against the Corporation, its successors, purchasers of any of such assets, creditors and all others asserting rights therein, to the extent set forth in, and in accordance with, this Trust Agreement, irrespective of whether those parties have notice of the pledge of, lien on and security interest in such assets and without the need for any physical delivery, recordation, filing or further act. (c) All Base Rental Payments shall be paid directly by the City to the Trustee, and if received by the Corporation at any time shall be deposited by the Corporation with the Trustee within one Business Day after the receipt thereof. All Base Rental Payments paid by the City shall be deposited by the Trustee in the Base Rental Payment Fund, which the Trustee shall establish and maintain until all required Base Rental Payments are paid in full pursuant to the Lease Agreement and until the first date upon which the Certificates are no longer Outstanding. The moneys in the Base Rental Payment Fund shall be held in trust by the Trustee and shall be disbursed only for the purposes and uses herein authorized. Any Net Proceeds of rental interruption insurance received with respect to the Property shall be deposited in the Base Rental Payment Fund.
(d) Pursuant to the Assignment Agreement, the Corporation has sold, assigned and transferred to the Trustee, irrevocably and absolutely, for the benefit of the Owners, substantially all of its right, title and interest in and to the Ground Lease and the Lease Agreement, including its 17 4160-4945-2900.4
right to receive Base Rental Payments to be paid by the City under and pursuant to the Lease Agreement; provided, however, that the Corporation has retained the rights to indemnifications and to payment or reimbursement of its reasonable costs and expenses under the Lease Agreement.

The Corporation shall not have any obligation or liability to the Owners with respect to the payment when due of the Base Rental Payments by the City, or with respect to the performance by the City of the other agreements and covenants required to be performed by it contained in the Ground Lease, the Lease Agreement or herein, or with respect to the performance by the Trustee of any right or obligation required to be performed by it contained herein.

Section 5.02. Deposit of Base Rental Payments. The Trustee shall transfer the amounts on deposit in the Base Rental Payment Fund, at the times and in the manner hereinafter provided, to the following respective funds, each of which the Trustee hereby agrees to establish and maintain until all required Base Rental Payments are paid in full pursuant to the Lease Agreement and until the first date upon which the Certificates are no longer Outstanding. The Trustee shall establish and maintain the Capitalized Interest Account within the Interest Fund until the date all amounts are transferred therefrom in accordance with subsection (a) of this Section. The moneys in each of such funds and account shall be held in trust by the Trustee and shall be disbursed only for the purposes and uses herein authorized.
(a) Interest Fund and Capitalized Interest Account. The Trustee, on each Interest Payment Date, shall deposit in the Interest Fund that amount of moneys representing the portion of the Base Rental Payments designated as the interest component coming due on such Interest Payment Date; provided, however, that on each Interest Payment Date occurring on or prior to November 1, 2028, prior to making said deposit, if and to the extent available in the Capitalized Interest Account within the Interest Fund, an amount equal to the interest component coming due on such Interest Payment Date shall be transferred from the Capitalized Interest Account within the Interest Fund to the Interest Fund. On November 1, 2028, the Trustee shall transfer any amounts then remaining in the Capitalized Interest Account to the Interest Fund. On each Interest Payment Date, the Trustee shall withdraw from the Interest Fund, for payment to the Owners, the interest evidenced by the Certificates coming due on such Interest Payment Date. (b) Principal Fund. The Trustee, on each Principal Payment Date and each Mandatory Sinking Account Payment Date, shall deposit in the Principal Fund that amount of moneys representing the portion of the Base Rental Payments designated as the principal component coming due on such Principal Payment Date or Mandatory Sinking Account Payment Date . On each Principal Payment Date or each Mandatory Sinking Account Payment Date, the Trustee shall withdraw from the Principal Fund, for payment to the Owners, the principal evidenced by the Certificates due and payable on such Principal Payment Date or Mandatory Sinking Account Payment Date.
(c) Prepayment Fund. The Trustee, on the prepayment date specified in the Written Request of the City filed with the Trustee at the time that any prepaid Base Rental Payment is paid to the Trustee pursuant to the Lease Agreement, shall deposit in the Prepayment Fund that amount of moneys representing the portion of the Base Rental Payments designated as prepaid Base Rental Payments. Additionally, the Trustee shall deposit in the Prepayment Fund any amounts required to be deposited therein pursuant to Section 3.04, Section 5.03 or Section 5.04 hereof. Moneys in the Prepayment Fund shall be used by the Trustee for the purpose of paying the interest, premium, 18 4160-4945-2900.4
if any, and principal evidenced by the Certificates to be prepaid. All moneys held by the Trustee in the Prepayment Fund shall either be held uninvested or invested in Defeasance Securities that mature in sufficient amounts and on the dates needed to make the prepayments of Certificates for which such moneys were deposited.

Section 5.03. Application of Net Proceeds. If the Property or any portion thereof shall be damaged or destroyed, subject to the further requirements of this Section, the City shall, as expeditiously as possible, continuously and diligently prosecute or cause to be prosecuted the repair or replacement thereof, unless the City elects not to repair or replace the Property or the affected portion thereof in accordance with the provisions hereof.

The Net Proceeds of any insurance (other than Net Proceeds of rental interruption insurance), including the proceeds of any self-insurance, received on account of any damage or destruction of the Property or a portion thereof shall as soon as possible be deposited with the Trustee and be held by the Trustee in a special account to be established by the Trustee, as an account subject to the provisions of this Trust Agreement, and made available for and, to the extent necessary, shall be applied to the cost of repair or replacement of the Property or the affected portion thereof upon receipt of a Written Request of the City, together with invoices therefor.

Pending such application, such proceeds may be invested by the Trustee as directed by the City in Permitted Investments that mature not later than such times as moneys are expected to be needed to pay such costs of repair or replacement.

Notwithstanding the foregoing, the City shall, within 60 days of the occurrence of the event of damage or destruction, notify the Trustee and the Insurer in writing as to whether the City intends to replace or repair the Property or the portions of the Property that were damaged or destroyed. If the City does intend to replace or repair the Property or portions thereof, the City shall deposit with the Trustee the full amount of any insurance deductible to be deposited to the special account.

If such damage, destruction or loss was such that there resulted a substantial interference with the City’s right to the use or occupancy of the Property and an abatement in whole or in part of Rental Payments would result from such damage or destruction pursuant to Section 3.06 of the Lease Agreement (disregarding, for the purpose of determining whether such an abatement would result, the provisions of subsection (b) of Section 3.06 of the Lease Agreement), then the City shall be required either to (a) apply sufficient funds from the insurance proceeds and other legally available funds to the replacement or repair of the Property or the portions thereof that have been damaged to the condition that existed prior to such damage or destruction, or (b) apply sufficient funds from the insurance proceeds and other legally available funds to the prepayment, as set forth in subsection (a) of Section 4.01 hereof, in full of all the Outstanding Certificates or all of those Outstanding Certificates that would have been payable from that portion of the Base Rental Payments that would be abated as a result of the damage or destruction (disregarding, for the purpose of determining what portion of the Base Rental Payments would be so abated, the provisions of subsection (b) of Section 3.06 of the Lease Agreement). Funds to be applied to the prepayment of Certificates in accordance with clause (b) above shall be deposited in the Prepayment Fund. Any proceeds of any insurance, including the proceeds of any self-insurance remaining after the portion of the Property that was damaged or destroyed is restored to and made available to the City in substantially the same condition and annual fair rental value as that which 19 4160-4945-2900.4
existed prior to the damage or destruction as required by clause (a) above or the prepayment of Certificates as required by clause (b) above, in each case as evidenced by a Written Certificate of the City to such effect, shall be paid to the City to be used for any lawful purpose. If the City is not required to replace or repair the Property, or the affected portion thereof, as set forth in clause (a) above or to use such amounts to prepay Certificates as set forth in clause (b) above, then such proceeds shall, if there is first delivered to the Trustee and the Insurer a Written Certificate of the City to the effect that the annual fair rental value of the Property after such damage or destruction, and after any repairs or replacements made as a result of such damage or destruction, is at least equal to 100% of the maximum amount of Base Rental Payments becoming due under the Lease Agreement in the then current Rental Period or any subsequent Rental Period and the fair replacement value of the Property after such damage or destruction is at least equal to the sum of the then unpaid principal components of Base Rental Payments, be paid to the City to be used for any lawful purpose.

The proceeds of any award in eminent domain with respect to the Property shall be deposited by the Trustee in the Prepayment Fund and applied to the prepayment of Outstanding Certificates pursuant to subsection (a) of Section 4.01 hereof.

Section 5.04. Title Insurance. Proceeds of any policy of title insurance received by the Trustee in respect of the Property shall be applied and disbursed by the Trustee as follows:
(a) if the City determines (and sets forth in a Written Certificate of the City) that the title defect giving rise to such proceeds has not substantially interfered with its use and occupancy of the Property and will not result in an abatement of Rental Payments payable by the City under the Lease Agreement, such proceeds shall, with the written approval of the Insurer, be remitted to the City and used for any lawful purpose thereof; or (b) if the City determines that the title defect giving rise to such proceeds has substantially interfered with its use and occupancy of the Property and would result in an abatement in whole or in part of Rental Payments payable by the City under the Lease (disregarding, for the purpose of determining whether such an abatement would result, the provisions of subsection (b) of Section 3.06 of the Lease Agreement), then the City shall, in a Written Request of the City, direct the Trustee to, and the Trustee shall, immediately deposit such proceeds in the Prepayment Fund and such proceeds shall, with the written approval of the Insurer, be applied to the prepayment of Certificates in the manner provided in subsection (a) of Section 4.01 hereof.

Section 5.05. Rebate Fund. (a) In addition to the other funds and accounts created pursuant hereto, the Trustee shall establish and maintain the “Rebate Fund.” There shall be deposited in the Rebate Fund such amounts as are required to be deposited therein pursuant to the Tax Certificate. All money at any time deposited in the Rebate Fund shall be held by the Trustee in trust, to the extent required to satisfy the Rebate Requirement, for payment to the United States of America. Notwithstanding defeasance of the Certificates pursuant to Article X hereof or anything to the contrary contained herein, all amounts required to be deposited into or on deposit in the Rebate Fund shall be governed exclusively by this Section and by the Tax Certificate (which is incorporated herein by reference). The Trustee shall have no liability or responsibility to enforce compliance by the City with the terms of the Tax Certificate. The Trustee may conclusively rely 20 4160-4945-2900.4
upon the City’s determinations, calculations and certifications required by the Tax Certificate. The Trustee shall have no responsibility to independently make any calculation or determination or to review the City’s calculations.
(b) Any funds remaining in the Rebate Fund after payment in full of all of the principal and interest evidenced by the Certificates and after payment of any amounts described in this Section, shall be withdrawn by the Trustee and remitted to the City.

Section 5.06. Investments. (a) General. Except as otherwise provided herein, all moneys in any of the funds or accounts established pursuant to this Trust Agreement and held by the Trustee shall be invested by the Trustee solely in Permitted Investments, as directed in writing by the City two Business Days prior to the making of such investment. Moneys in all funds and accounts held by the Trustee shall be invested in Permitted Investments maturing not later than the date on which it is estimated that such moneys will be required for the purposes specified in this Trust Agreement. Absent timely written direction from the City, the Trustee shall invest any funds held by it in Permitted Investments described in clause [(h)] of the definition thereof. (b) Role and Responsibilities of the Trustee. The Trustee or an affiliate thereof may act as principal or agent in the acquisition or disposition of any such Permitted Investment and shall be entitled to a customary and reasonable fee therefor. The Trustee shall not be liable or responsible for any loss suffered in connection with any such investment made by it under the terms of and in accordance with this Trust Agreement. The Trustee shall sell or present for redemption any obligations so purchased whenever it shall be necessary in order to provide moneys to meet any payment of the funds so invested, and the Trustee shall not be liable or responsible for any losses resulting from any such investment sold or presented for redemption.

The City acknowledges that to the extent regulations of the Comptroller of the Currency or other applicable regulatory entity grant the City the right to receive brokerage confirmations of security transactions as they occur, the City will not receive such confirmation to the extent permitted by law. The Trustee shall furnish the City periodic cash transaction statements, which shall include detail for all investment transactions made by the Trustee hereunder. The Trustee may make any investments hereunder through its own bond or investment department or trust investment department, or those of its parent or any affiliate. The Trustee or any of its affiliates may act as sponsor, advisor or manage in connection with any investments made by the Trustee hereunder.
(c) Valuation. Investments (except investment agreements) in any fund or account established hereunder shall be valued, exclusive of accrued interest not less often than semiannually no later than October 15 and April 15 or more frequently if deemed necessary by the Insurer but not more often than monthly. All investments of amounts deposited in any fund or account established hereunder shall be valued at the market value thereof. (d) Earnings. Any interest or profits received with respect to investments held in any of the funds or accounts established hereunder shall be retained therein. 21 4160-4945-2900.4

ARTICLE VI
COVENANTS; LIMITATIONS ON LIABILITY
Section 6.01. Compliance with Trust Agreement. The Trustee shall execute and deliver the Certificates only in accordance with the provisions hereof, and each of the Corporation and the City shall faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in this Trust Agreement required to be complied with, kept, observed and performed by it.

Section 6.02. Compliance with Ground Lease and Lease Agreement. Each of the Corporation and the City shall faithfully comply with, keep, observe and perform all the agreements, conditions, covenants and terms contained in the Ground Lease and the Lease Agreement required to be complied with, kept, observed and performed by it and, together with the Trustee, shall enforce the Ground Lease and the Lease Agreement against the other party thereto in accordance with their respective terms.

Section 6.03. Observance of Laws and Regulations. The Corporation, the City and the Trustee shall faithfully comply with, keep, observe and perform all valid and lawful obligations or regulations now or hereafter imposed on them by contract, or prescribed by any law of the United States of America or of the State of California, or by any officer, board or commission having jurisdiction or control, as a condition of the continued enjoyment of each and every franchise, right or privilege now owned or hereafter acquired by them, including their right to exist and carry on their respective businesses, to the end that such franchises, rights and privileges shall be maintained and preserved and shall not become abandoned, forfeited or in any manner impaired.

Section 6.04. Other Liens. The City shall keep the Property and all parts thereof free from judgments and materialmen’s and mechanics’ liens and free from all claims, demands, encumbrances and other liens of whatever nature or character, other than Permitted Encumbrances, and free from any claim or liability that materially impairs the City in conducting its business or utilizing the Property, and the Trustee at its option (after first giving the City ten days’ written notice to comply therewith and failure of the City to so comply within such ten-day period) may defend against any and all actions or proceedings, or may pay or, with the written consent of the Insurer, compromise any claim or demand asserted in any such actions or proceedings; provided, however, that, in defending against any such actions or proceedings or in paying or compromising any such claims or demands, the Trustee shall not in any event be deemed to have waived or released the City from liability for or on account of any of its agreements and covenants contained herein, or from its obligation hereunder to perform such agreements and covenants. The Trustee shall have no liability with respect to any determination made in good faith to proceed or decline to defend, pay or compromise any such claim or demand.

So long as any Certificates are Outstanding, neither the Trustee nor the City shall create or suffer to be created any pledge of or lien on the amounts on deposit in any of the funds or accounts created hereunder, other than the pledge and lien hereof.

The Trustee shall not encumber the Property other than in accordance with the Ground Lease, the Lease Agreement, this Trust Agreement and the Assignment Agreement. 22 4160-4945-2900.4
Section 6.05. Prosecution and Defense of Suits. The City shall promptly, upon request of the Trustee, the Insurer or any Owner, take such action from time to time as may be necessary or proper to remedy or cure any cloud upon or defect in the title to the Property or any part thereof, whether now existing or hereafter developing, shall prosecute all actions, suits or other proceedings as may be appropriate for such purpose and shall indemnify and save the Trustee, the Insurer and every Owner harmless from all cost, damage, expense or loss, including attorneys’ fees, that they or any of them may incur by reason of any such cloud, defect, action, suit or other proceeding.

Section 6.06. Recordation. The City shall record, or cause to be recorded, with the San Bernardino County Recorder, the Lease Agreement, the Ground Lease and the Assignment Agreement, or memoranda thereof.

Section 6.07. Tax Covenants. (a) The City shall not take any action, or fail to take any action, if such action or failure to take such action would adversely affect the exclusion from gross income of interest evidenced by the Certificates under Section 103 of the Code. Without limiting the generality of the foregoing, the City shall comply with the requirements of the Tax Certificate, which is incorporated herein as if fully set forth herein. This covenant shall survive payment in full or defeasance of the Certificates.
(b) In the event that at any time the City is of the opinion that for purposes of this Section it is necessary or helpful to restrict or limit the yield on the investment of any moneys held by the Trustee in any of the funds or accounts established hereunder, the City shall so instruct the Trustee in writing, and the Trustee shall take such action as may be necessary in accordance with such instructions.
(c) Notwithstanding any provisions of this Section, if the City shall provide to the Trustee an Opinion of Counsel to the effect that any specified action required under this Section is no longer required or that some further or different action is required to maintain the exclusion from federal income tax of interest evidenced by the Certificates, the Trustee may conclusively rely on such opinion in complying with the requirements of this Section and of the Tax Certificate, and the covenants hereunder shall be deemed to be modified to that extent.