Attachment 4 Reso 2025-338 EXHIBIT C — Mayor and City Council, July 16, 2025

11661 San Vicente Blvd. Suite 306 Los Angeles, California 90049-5111 310.820.2680-p www.stanleyrhoffman.com DRAFT Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino Prepared for: City of San Bernardino 290 North D Street San Bernardino, CA 92418 909.384.5242 July 3, 2024 SRHA Job # 1408 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 i Plan for Service and Fiscal Analysis CERTIFICATION The City of San Bernardino hereby certifies that this document presents the data and information required for the Plan for Service and Fiscal Impact Analysis for the Meyers Road Island Area Annexation to the best of my ability, and that the facts, statements, and information presented herein are true and correct to the best of my knowledge and belief. DATE ____________ ___________ _ SIGNATURE OF APPLICANT ___________ _ TITLE OF APPLICANT City of San Bernardino, California Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 ii Plan for Service and Fiscal Analysis CONTENTS Tables ...................................................................................................................................................... iv Figures ....................................................................................................................................................... v EXECUTIVE SUMMARY ......................................................................................................................... v CHAPTER 1 INTRODUCTION ................................................................................................................ 1 1.1 Purpose of the Study .................................................................................................................... 1 1.2 Overview of the City of San Bernardino ....................................................................................... 3 1.3 Organization of the Report ........................................................................................................... 3 CHAPTER 2 PROJECT DESCRIPTION ..................................................................................................... 4 2.1 Residential Development ............................................................................................................. 4 2.2 Assessed Valuation and Property Tax ........................................................................................... 7 2.3 Sales and Use Tax ......................................................................................................................... 9 CHAPTER 3 PUBLIC FACILITIES BEFORE AND AFTER ANNEXATION ..................................................... 11 3.1 General Government .................................................................................................................. 12 3.2 Fire and Paramedic ..................................................................................................................... 13 3.3 Sheriff/Police .............................................................................................................................. 15 3.4 Library ......................................................................................................................................... 15 3.5 Parks and Recreation .................................................................................................................. 16 3.6 Animal Control ............................................................................................................................ 17 3.7 Street Lighting ............................................................................................................................ 17 3.8 Landscape Maintenance ............................................................................................................. 18 3.9 Water .......................................................................................................................................... 18 3.10 Wastewater Collection ............................................................................................................... 18 3.11 Transportation ............................................................................................................................ 19 3.12 Flood Control and Drainage ........................................................................................................ 19 3.13 Utilities ....................................................................................................................................... 20 3.14 Schools ........................................................................................................................................ 20 3.15 Solid Waste Management .......................................................................................................... 21 3.16 Public Health and Welfare .......................................................................................................... 21 CHAPTER 4 PAYING FOR PUBLIC FACILITIES AND INFRASTRUCTURE .................................................. 22 4.1 Overview of Development Impact Fees ..................................................................................... 22 4.2 Schools ........................................................................................................................................ 22 4.3 Utilities ....................................................................................................................................... 22 4.4 Roads and Drainage .................................................................................................................... 22 4.5 Water and Sewer ........................................................................................................................ 22 CHAPTER 5 FISCAL IMPACTS ............................................................................................................. 24 5.1 City General Fund ....................................................................................................................... 24 5.2 Other Funds ................................................................................................................................ 26 CHAPTER 6 CITY OF SAN BERNARDINO FISCAL ASSUMPTIONS ............................................................ 27 6.1 City General Assumptions .......................................................................................................... 27 6.2 City Revenue Assumptions ......................................................................................................... 29 6.3 City Cost Assumptions ................................................................................................................ 33 APPENDIX A NEIGHBORHOOD INFRASTRUCTURE IMPROVEMENTS .................................................. 38 APPENDIX B SUPPORTING FISCAL TABLES ......................................................................................... 39 APPENDIX C PROJECT REFERENCES ................................................................................................... 45 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 iii Plan for Service and Fiscal Analysis TABLES 1 Summary of Projected Recurring Fiscal Impacts ....................................................................... vi 2 Summary of Projected Other Funds Recurring Revenues ........................................................ vii 2-1 Residential Development Description ....................................................................................... 7 2-2 Assessed Valuation and Property Tax ....................................................................................... 8 2-3 Estimated Existing Assessed Valuation ..................................................................................... 9 2-4 Estimated Offsite Sales and Use Tax by Project Residents ..................................................... 10 3-1 Current and Anticipated Service Providers in the Meyers Road Island Area Annexation ....... 12 4-1 Summary of City Development Impact Fees ........................................................................... 23 5-1 Summary of Projected Recurring Fiscal Impacts ..................................................................... 24 5-2 Detailed General Fund Projected Recurring Fiscal Impacts .................................................... 25 5-3 Summary of Projected Other Funds Recurring Revenues ....................................................... 26 6-1 City Population, Housing and Employment Assumptions ....................................................... 28 6-2 General Fund and Other Funds Recurring Revenue Factors ................................................... 30 6-3 General Fund Recurring Cost Factors ...................................................................................... 34 6-4 Calculation of City General Government Overhead Rate ....................................................... 35 A-1 Spring Trails Specific Plan, Roads, Drainage, Sewer, Parks, Trails and Open Space Phasing ... 38 B-1 General Fund Adopted Revenues, Fiscal Year 2022-23 ........................................................... 39 B-2 Revenues for Other City Fund, Fiscal Year 2022-23 ................................................................ 41 B-3 Estimated In Lieu Property Tax of Vehicle License Fees (VLF) Factor ..................................... 42 B-4 Calculation of Use Tax Factor .................................................................................................. 42 B-5 Estimated Annual Residential Turnover .................................................................................. 43 B-6 General Fund Net Community Development Cost Factor ....................................................... 44 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 iv Plan for Service and Fiscal Analysis FIGURES 1-1 Meyers Road Island Area Annexation Regional Vicinity ........................................................... 2 2-1 Meyers Road Island Area Annexation Local Vicinity ................................................................. 5 2-2 Meyers Road Island Area Annexation Parcels ........................................................................... 6 3-1 Fire Protection ........................................................................................................................ 14 3-2 City of San Bernardino Police Department: Northwest District .............................................. 16 3-3 Local Elementary, Middle and High Schools ........................................................................... 20 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 v Plan for Service and Fiscal Analysis EXECUTIVE SUMMARY This Plan for Service and Fiscal Analysis report provides an assessment of public service delivery capabilities of the City of San Bernardino and other agencies, or special districts affected by the proposed annexation of the Meyers Road “Island Area” to the City of San Bernardino (the City). A commitment to annex the Island Area by the City was made a precondition by the San Bernardino County Local Agency Formation Commission (LAFCO) for approving the City annexation of the Spring Trails specific plan located to the north-east of the Island Area. The specific plan’s annexation to the City would create an unincorporated county island (the Island Area), which is now being assessed for LAFCO approval in this study. This report is being submitted to the San Bernardino County LAFCO as a “Plan for Service” required by California Government Code Section 56653. Currently, the County of San Bernardino provides many services to the annexation area including fire and paramedic services, general government, development services, sheriff patrol, public library, regional parks and recreation, street lighting, transportation, flood control and drainage, and health and welfare. Public schools are provided by the San Bernardino Unified School District. After annexation, the City is anticipated to provide services including general government, community development, police protection, local parks and recreation, community services and public works’ services. The City has annexed into the San Bernardino County Fire Protection District (SBCFPD) and its Service Zone FP-5 for fire protection and emergency medical response services. Since the Island Area is already within SBCFPD and Service Zone FP-5, the SBCFPD will continue to be the service provider for fire protection and emergency medical services. The County of San Bernardino will continue to provide other services such as regional parks and recreation, regional flood control and drainage and health and welfare. Fiscal Impacts Based on an analysis of current service delivery capabilities, the City is equipped to handle additional demand from the proposed Island Area annexation comprising six parcels totaling 26.38 acres with four existing homes. No additional growth is assumed in the Island Area for the 5-year post-annexation analysis period required by LAFCO, which is presented in this study.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 vi Plan for Service and Fiscal Analysis Roads, drainage systems, lighting, and utilities will be maintained by the City. The San Bernardino Municipal Water Department will maintain the onsite and offsite water and sewer systems. This report explains the transfer of service requirements upon annexation, estimates development impact fees and other cost responsibilities. As required by LAFCO, this study analyzes and presents the fiscal impacts of the Island Area on the City General Fund and other funds for the first five years upon annexation. First year post-annexation is assumed to be 2026. General Fund. As shown in Table 1, projected recurring fiscal impacts to the City General Fund for the Island Area Annexation is shown to generate an extremely small deficit for all years. Projected deficit to the General Fund declines slightly from $2,756 in Year 1 upon annexation through $2,474 in Year 5. The calculation assumes revenues from the recently adopted CFD 2018-1 tax for safety services family unit, which increases over time. Other Funds. Projected recurring revenues for the Gas Tax Fund and Measure I Fund that are earmarked for street and road related expenditures are presented in Table 2. Gas Tax Fund. As shown in Panel A of Table 2, projected recurring gasoline revenues to the City are projected at $292 across all years. Measure I Fund. Projected recurring Measure I sales tax revenues to the City are projected at $89 across all years. Table 1 Summary of Projected General Fund Recurring Fiscal Impacts Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 1 Summary of Projected Recurring Fiscal Impacts

Year 1 Year 2 Year 3Year 4 Year 5
General Fund 2026 2027 2028 2029 2030
Estimated Annual Recurring Revenues$5,456$5,522$5,591$5,664$5,738 Estimated Annual Recurring Costs$8,212$8,211$8,212$8,212$8,212 Estimated Annual Recurring Surplus($2,756)($2,689)($2,620)($2,548)($2,474) Estimated Annual Revenue/Cost Ratio0.66 0.67 0.68 0.69 0.70 Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 vii Plan for Service and Fiscal Analysis Table 2 Summary of Projected Other Funds Recurring Revenues Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 2 Summary of Projected Other Funds Recurring Revenues

Year 1 Year 2 Year 3 Year 4 Year 5
Other Funds 2026 2027 2028 2029 2030
A. Fund 126 - Gas Tax 1
Annual Recurring Gasoline Tax $292 $292 $292 $292 $292
B. Fund 129 - Measure I 1
1/2 cent sales and road tax $89 $89 $89 $89 $89

1. Annual recurring gasoline tax and Measure I revenues are restricted to street related expenditures.

Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 1 Plan for Service and Fiscal Analysis CHAPTER 1 INTRODUCTION The Meyers Road Island Area is in unincorporated San Bernardino County located on the northern edge of the City of San Bernardino in the foothills of the San Bernardino Mountains, as shown in Figure 1.1. The annexation area is approximately 1.5 miles east of the unincorporated community of Devore and the junction of Interstate 215 (I-215) and I-15. The Island Area is bounded by the San Bernardino National Forest on three sides and the City of San Bernardino on the southern side. 1.1 Purpose of the Study The Local Agency Formation Commission (LAFCO) of the County of San Bernardino requires a jurisdiction to submit a Plan for Service and Fiscal Impact Analysis when the jurisdiction is affected by a proposed change in boundaries, formation, or organization. The annexation of the Island Area into the City requires the City to show that necessary infrastructure improvements and services can be provided to this area. Per the application form in the LAFCO Policy and Procedure Manual, Updated July 2023, the Plan for Service must include the following components: a. A description of the level and range of each service to be provided to the affected territory. b. An indication of when those services can feasibly be extended to the affected territory. c. An identification of any improvement or upgrading of structures, roads, water or sewer facilities, other infrastructure, or other conditions the affected agency would impose upon the affected territory. d. The Plan shall include a Fiscal Impact Analysis which shows the estimated cost of extending the service and a description of how the service or required improvements will be financed. The Fiscal Impact Analysis shall provide, at a minimum, a five (5)-year projection of revenues and expenditures. A narrative discussion of the sufficiency of revenues for anticipated service extensions and operations is required. e. An indication of whether the affected territory is, or will be, proposed for inclusion within an existing or proposed improvement zone/district, redevelopment area, assessment district, or community facilities district. f. If retail water service is to be provided through this change of organization, provide a description of the timely availability of water for projected needs within the area based upon the factors identified in Government Code Section 65352.5 (as required by Government Code Section 56668(k)).

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 2 Plan for Service and Fiscal Analysis Figure 1-1 Meyers Road Island Area Annexation Regional Vicinity Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 1-1 Meyers Road Island Area Annexation Regional Vicinity Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 3 Plan for Service and Fiscal Analysis

1.2 Overview of the City of San Bernardino The City of San Bernardino is the county seat of San Bernardino County, occupying 62.5 square miles and is an anchor city for the Inland Empire. The 2023 city population is estimated at 223,230. Residents have access to more than 40 parks and fields, including premier athletic facilities, 7 community centers, a year-round aquatics center, a public library system, two higher education institutions, and 73 K-12 public schools. Major employers in the city include the County of San Bernardino, San Bernardino City Unified School District, California State University, the City of San Bernardino, Saint Bernardine Medical Center, the Community Hospital of San Bernardino, Caltrans, Stater Bros. Markets, Wells Fargo and Omnitrans. The city has been a major transit hub for over 100 years with the Interstate 10 and 215, the 210 and 259 Freeways, and the Metrolink commuter rail service. San Bernardino is a charter city, which means that the city has supreme authority over its municipal affairs, rather than being bound by the state’s general law if the City were a general law city. The City operates under a City Council-City Manager form of government. The Mayor and the seven-seat City Council are elected positions. Under the supervision of the City Council, the City Manager is the Chief Administrative Officer and directs most of the City Departments, other than the City Attorney and City Clerk, who report directly to the City Council, and the Municipal Water Department and the Library, which are governed by the Water Board and the Library Board of Trustees, respectively. 1.3 Organization of the Report Chapter 2 contains the description of the annexation area and existing development. The analysis of existing public service delivery in the annexation area and upon annexation into the City is presented in Chapter 3. Chapter 4 discusses the development impact fees and charges for infrastructure associated with the proposed annexation. The fiscal impact analysis of the annual operations and maintenance costs for the provision of services to the annexation area is provided in Chapter 5. Chapter 6 covers the revenue and cost assumptions used for the fiscal analysis. Appendix A includes a summary of the neighborhood infrastructure improvements associated with the Spring Trails Specific Plan. Supporting tables for the fiscal assumptions appear in Appendix B. Appendix C lists the project contacts and references used in the preparation of this study.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 4 Plan for Service and Fiscal Analysis CHAPTER 2 PROJECT DESCRIPTION This chapter presents the land uses for the Meyers Road Island Area. Information includes housing units, population, assessed valuation and taxable sales. The total Meyers Road Island Area includes six parcels with four existing single-family units and two vacant parcels. As shown in Figure 2-1, the Island Area is fronted by Meyers Road between Wendy Ranch Road and Martin Ranch Road. This area is generally about one-third mile northwest of the intersection of Meyers Road and Little League Drive, with the latter connecting to the frontage road along I-215. Freeway access is from the Palm Avenue interchange and the Glen Helen Parkway/Devore Road interchange. As shown in Figure 2-2, the Island Area includes six parcels zoned for single-family residential use for a total of 26.38 acres. Of these, four parcels include existing single-family residential units, and two parcels are currently vacant. The parcel APNs include 034811147, 034811148, 034811149, 034811150, 034811136, and 034811109. The annexation area is abutted by San Bernardino City to the south and west. To the north and east is the proposed Spring Trails Specific Plan, which was approved by San Bernardino LAFCO in October 2019 for annexation into the City pending certain conditions of approval. The Island Area, in the first place, was created due to the Spring Trails annexation, which LAFCO’s conditions of approval remedied by requiring the City to adopt a resolution for commitment to annex the Island Area at some point in the future. 2.1 Residential Development As shown in Panel A of Table 2-1, there are an estimated 4 single family residential units in the Island Area, while 2 parcels are vacant. No additional development is assumed in this area for the LAFCO required 5-year post-annexation period that is analyzed in this study. Based on the January 1, 2023, Citywide average estimate of 3.34 persons per unit from the Department of Finance, total population for the Annexation is projected at 13 persons over the 5-year period, as shown in Panel B of Table 2-1.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 5 Plan for Service and Fiscal Analysis Figure 2-1 Meyers Road Island Area Annexation Local Vicinity Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 2-1 Meyers Road Island Area Annexation Local Vicinity Sources: Stanley R. Hoffman Associates, Inc. J.P. Weber Group, November 2016 Proposed Spring Trails Project
Meyers Road Island Annexation Study Area
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 6 Plan for Service and Fiscal Analysis Figure 2-2 Annexation Parcels Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 2-2 Meyers Road Island Area Annexation Parcels Sources: Stanley R. Hoffman Associates, Inc. Joseph E. Bondiman & Associates, Inc.; J.P. Weber Group, 2024

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 7 Plan for Service and Fiscal Analysis Table 2-1 Residential Development Description Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 2-1 Residential Development Description

2.2 Assessed Valuation and Property Tax Assessed valuation for the total Meyers Road Island Area is estimated at $2.57 million at Year 5 after annexation, as shown in Panel B of Table 2-2. The current assessed valuation of about $2.57 million is estimated for Year 1, which remains unchanged as no new development is assumed over the 5-year study period. Existing assessed valuation is based on the County Assessor’s 2023 tax roll value (accessed in March 2024), as shown in Table 2-3. Projected Property Tax As shown in Panel C of Table 2-2, the City General Fund will not receive property tax for the assessed valuation of the annexation area. The San Bernardino County Fire Protection District (SBCFPD) is now providing fire protection to the City. Based on the service agreement between the two jurisdictions, the property tax that would usually accrue to the City will remain with the SBCFPD and no property tax from other County funds and districts will be allocated to the City.

Year 1Year 2Year 3Year 4Year 5Category 20262027202820292030Total A. Residential UnitsExisting Units 4 0 0 0 0 4New Units 0 0 0 0 0 0Total Annual Units 4 0 0 0 0 4 Total Cumulative Units4 4 4 4 4
New Annual Residential Square Feet 2 n/a 0 0 0 0 0
Total Cumulative New Square Feetn/a 0 0 0 0
B. Population 3
Total Annual Population13 0 0 0 0 13
Total Cumulative Population13 13 13 13 13

1. Population is projected at the Citywide average of 3.34 persons per unit for January 1, 2023.

Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 8 Plan for Service and Fiscal Analysis Table 2-2 Assessed Valuation and Property Tax Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 2-2 Assessed Valuation and Property Tax

ExistingNew GrowthNew GrowthNew GrowthNew Growth
Year 1 Year 2 Year 3Year 4Year 5
Category 2026 2027 2028 2029 2030 Total
A. Residential Units 1
Existing Units 4 4
New Units 0 0 0 0 0
Total Annual Units 4 0 0 0 0 4
Total Cumulative Units4 4 4 4 4
B. Assessed Valuation
Current Valuation 2 $2,565,029
New Valuation $0 $0 $0 $0Total Annual Valuation $2,565,029 $0 $0 $0 $0$2,565,029 Total Cumulative Valuation$2,565,029$2,565,029$2,565,029$2,565,029$2,565,029 C. Projected Property Tax - CumulativeAnnual 1 Percent Property Tax Levy $25,650$25,650$25,650$25,650$25,650$128,251(@ 1% of Valuation) Annual General Fund Property 3 $0 $0 $0 $0 $0 $0
(@ 0% of 1 Percent Levy)
Total Cumulative Projected Property Tax$0 $0 $0 $0 $0
D. Projected Property Tax In Lieu VLF
Total Annual Valuation for Property Tax In Lieu VLF 4 $0 $0 $0 $0 $0 $0 Total Cumulative Valuation for Property Tax In Lieu VLF$0 $0 $0 $0 $0 Total Cumulative Projected Property Tax In Lieu VLF$0 $0 $0 $0 $0(@ $1,270 per $1,000,000 Assessed Valuation)times Share Allocated to General Fund 5 73.5% 73.5% 73.5%73.5% 73.5% equalsGeneral Fund Property In Lieu VLF $0 $0 $0 $0 $0

1. Existing units obtained from the County Assessor data. No incremental growth is assumed over the 5-year period.2. Current assessed valuation is based on the 2024 County Assessor tax roll values.3. The San Bernardino County Fire Protection District (SBCFPD) provides fire protection to the City. Based on an agreement between the City and the SBCFPD, the City will not receive any allocation of the basic one percent property tax levy upon annexation of the Spring Trails project.4. Property tax in lieu of vehicle license fees (VLF) is projected based on the increase in assessed valuation in a jurisdiction. Per State law, when an annexation occurs the existing valuation in the annexing area cannot be used in adjusting the amount of assessed valuation in the annexing City. Therefore, the current valuation of $2,569,029 is not included in the projection of property tax in lieu of VLF. No PTVLF is projected because there is no new development assumed.5. Based on the agreement between the SBCFPD and the City, the City will receive 73.5 percent of the projected property tax in lieu of VLF and the remaining 26.5 percent of the property tax in lieu of VLF will go to the SBCFPD. No PTVLF is projected because no new growth is assumed.

Sources: Stanley R. Hoffman Associates, Inc. City of San Bernardino, Finance Director Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 9 Plan for Service and Fiscal Analysis Table 2-3 Estimated Existing Assessed Valuation: 2023 Tax Roll Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 2-3 Estimated Existing Assessed Valuation Projected Property Tax in Lieu VLF The City General Fund will receive property tax in lieu of vehicle license fees (PTVLF) based on the increase in assessed valuation in the City. Per State law, when an annexation occurs the existing valuation in the area that is being annexed cannot be used in adjusting the base amount of assessed valuation in the annexing City. The City will receive property tax in-lieu of VLF based on the change in its gross assessed valuation of taxable property for new development in the annexed area. As shown in Appendix Table B-5, the property tax in lieu of VLF in the City is projected to increase at $1,270 per million dollars of new assessed valuation (AV). However, based on the service agreement between the San Bernardino County Fire Protection District (SBCFPD) and the City, the City will receive 73.5 percent of the projected property tax in lieu of VLF and the remaining 26.5 percent will go to the SBCFPD. As shown in Panel D of Table 2-2, no PTVLF is projected for the Island Area over the 5-year post-annexation study period, as no new development is assumed over this time frame. Over the long-term (beyond Year 5), it is possible that the study area parcels might redevelop, including new development on currently vacant parcels, which will then generate the PTVLF revenues as described above. 2.3 Sales and Use Tax Sales and use tax are shown for the retail taxable sales that can be attributed to the existing residents in the Island Area. Offsite retail sales and use tax is estimated based on the estimated Tax Rate
APN LandImprovementTotalArea
0348111472.92 2,300$234,812$547,895$782,707107150SFR
0348111482.94 1,888$170,000$405,000$575,000107150SFR
0348111492.93 3,698$96,584$393,574$490,158107150SFR
0348111502.92 0$208,080 $0$208,080107150SFR - Vacant
03481113610.372,447$206,196$293,388$499,584107150SFR
0348111094.30 0$9,500 $0 $9,500107150SFR - Vacant

26.3810,333$925,172$1,639,857$2,565,029
Sources: Stanley R. Hoffman Associates, Inc.

San Bernardino County Assessor, 2024
Valuation
Land UseAcres
Building
Sq.Ft.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 10 Plan for Service and Fiscal Analysis household income and taxable retail purchases. Household income is estimated at 28 percent of average housing value based on a mortgage cost analysis by Stanley R. Hoffman Associates. Based on the U.S. Bureau of Labor Statistic, Consumer Expenditure Survey, the fiscal analysis estimates the current residents generate total taxable retail purchases at about 33 percent of household income. As shown in Table 2-5, estimated annual offsite retail sales and use tax that can currently be attributed to the Island Area is estimated at $954 per annum, and stays at this level through Year 5. This is based on the estimated total annual household income for the Island Area, at about $718,000, 33 percent of which are spent on retail taxable purchases with a 35 percent capture within the City. A use tax factor of 14.9 percent is applied to the Bradley-Burns 1 percent point sales tax in the calculation. Table 2-4 Estimated Offsite Sales and Use Tax by Project Residents Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 2-4 Estimated Offsite Sales and Use Tax by Project Residents

Year 1Year 2Year 3Year 4Year 5Cumulative
Category 2026 2027202820292030 Total
A. ANNUALIZED PROJECTIONS
Annual New Residential Valuation $2,565,029$0 $0 $0 $0$2,565,029 Annual Household Income (@ 28% of household valuation) 1 $718,208 $0 $0 $0 $0$718,208 Annual Taxable Retail Spending (@ 33% of household income)$237,009 $0 $0 $0 $0$237,009 Annual Projected Off-Site Retail Taxable Sales Captured in City$82,953 $0 $0 $0 $0$82,953 (@ 35% capture)
Annual Projected Sales and Use Tax to City
Sales Tax (@ 1% of taxable sales) $830 $0 $0 $0 $0 $830 Use Tax (@ 14.9% of sales tax) 124 0 0 0 0 124
Total Projected Sales and Use Tax $954 $0 $0 $0 $0 $954 B. CUMULATIVE PROJECTIONS
Cumulative Sales and Use Tax $954$954$954$954$954

1. Based on current mortage-based estimates obtained from Zillow, and with housing expenditures at 30% of household income.

Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 11 Plan for Service and Fiscal Analysis CHAPTER 3 PUBLIC FACILITIES BEFORE AND AFTER ANNEXATION This chapter describes the existing and anticipated future service providers for the proposed Meyers Road Island Area Annexation project area. The level and range of the services for the annexation area are described, if they are known. The following services are detailed in this chapter: • General Government • Fire and Paramedic • County Sheriff and Public Safety • Library • Parks and Recreation • Animal Control • Street Lighting • Landscape Maintenance • Water • Sewer • Transportation • Flood Control and Drainage • Utilities • Schools • Solid Waste Management • Health and Welfare On a general note, the Island Area will experience positive spillover neighborhood benefits from the many improvements required for the proposed Spring Trails Specific Plan annexation. This includes roadways, open space, parks and trails, landscaping, and water/sewer system infrastructure improvements. This will reduce the network costs for the City to service the overall area, including the Island Area. These details are not discussed in this report and can be found in the Plan for Services for the Spring Trails Specific Plan annexation. A summary table of these improvements is included in Appendix A-1. Table 3-1 presents current and anticipated service providers in the Meyers Road Island Area Annexation area. In many cases, such as general government, community development, economic development, and sheriff/police, among others, responsibilities shift from the County of San Bernardino to the City of San Bernardino. The City of San Bernardino has annexed into the San Bernardino County Fire Protection District (SBCFPD) and its Service Zone FP-5 for fire protection and emergency medical response services. Since the annexation area is already within SBCFPD and Service Zone FP-5, the SBCFPD will continue to be the service provider for fire protection and emergency medical services upon annexation.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 12 Plan for Service and Fiscal Analysis Table 3-1 Current and Anticipated Service Providers in the Meyers Road Island Area Annexation Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 3-1 Current and Anticipated Service Providers in the Meyers Road Island Area Annexation

3.1 General Government Before Annexation The County of San Bernardino provides general government services, including: all Administrative services, Community Development services, and Economic Development services to the annexation area. After Annexation After the annexation, the City of San Bernardino will provide the general government services Service Type Current Service Provider Anticipated Service Provider General Government - Administrative Services: Finance Division County of San Bernardino City of San Bernardino Human Resources DivisionCounty of San Bernardino City of San Bernardino Business RegistrationCounty of San Bernardino City of San BernardinoCommunity Development: Planning County of San Bernardino City of San Bernardino Building & Safety County of San Bernardino City of San Bernardino Code Compliance County of San Bernardino City of San Bernardino Police Department Fire and Paramedic San Bernardino County Fire Protection District (SBCFPD), Service Zone FP-5 San Bernardino County Fire Protection District (SBCFPD), Service Zone FP-5Sheriff/Police County of San Bernardino Sheriff's DepartmentCity of San Bernardino Police DepartmentLibrary County of San Bernardino Library DistrictCity of San Bernardino Public LibraryParks and Recreation: Local Facilities County of San Bernardino City of San Bernardino Regional Facilities County of San Bernardino County of San Bernardino Animal Control Contract with City of San Bernardino Animal Services Department City of San Bernardino Animal Services DepartmentStreet Lighting City of San Bernardino City of San Bernardino Public Works DepartmentLandscape MaintenanceForest/Natural City of San Bernardino Public Works DepartmentWater: Domestic Water Private City of San Bernardino Municipal Water Dept. (SBMWD) Recycled Water Private City of San Bernardino Municipal Water Dept. (SBMWD) Water Quality Private City of San Bernardino Municipal Water Dept. (SBMWD)Sewer Private/Septic Systems City of San Bernardino Municipal Water Dept. (SBMWD)Transportation: Freeways and Interchanges Caltrans Caltrans Arterials and CollectorsSan Bernardino County - Public WorksCity of San Bernardino Public Works Department Local Roads San Bernardino County - Public WorksCity of San Bernardino Public Works Department Transit Omnitrans OmnitransFlood Control and Drainage: Local Facilities San Bernardino County Flood Control DistrictSan Bernardino County Flood Control District Regional Facilities San Bernardino County Flood Control DistrictSan Bernardino County Flood Control DistrictUtilities: Cable/Internet Provider/PhoneCharter Communications Charter Communications Telephone Verizon Verizon Power Southern California Edison Southern California Edison Natural Gas Southern California Gas CompanySouthern California Gas CompanySchools San Bernardino City Unified School District (SBCUSD)San Bernardino City Unified School District (SBCUSD) Solid Waste ManagementSan Bernardino County Solid Waste Management Division contract with Burrtec City of San Bernardino contract with BurrtecHealth and Welfare San Bernardino County Department of Public HealthSan Bernardino County Department of Public Health Sources: Stanley R. Hoffman Associates, Inc. City of San Bernardino, Website Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 13 Plan for Service and Fiscal Analysis which include administrative services as well as General Governance, Community Development and Economic Development. 3.2 Fire and Paramedic Before Annexation Currently, the annexation area is in a State Responsibility Area (SRA), where CAL FIRE is responsible for fire and emergency response services. The area is also serviced by San Bernardino County Fire Station Number 2 (Devore Station). The proposed project is also located within the recently expanded boundary of the San Bernardino County Fire Protection District (SBCFPD), Service Zone FP-5 which is a special tax zone for funding fire protection and EMS. The current annual special tax for property in Service Zone FP-5 is estimated at $157.26 per parcel. The tax includes an annual inflationary factor up to a maximum of 3 percent. No water facilities are available to serve fire protection in the project area. After Annexation The City of San Bernardino has annexed their fire protection services to the SBCFPD. Therefore, the SBCFPD, Service Zone FP-5 will be the service provider for fire prevention, fire protection and emergency medical services (EMS) after annexation. Most of the existing City fire stations and equipment are transferred to the SBCFPD; with existing Station 232 (City), located at 6065 Palm Avenue, being the closest (approximately 1 mile) to Island Area, as shown in Figure 3-1. Water facilities for fire protection will be owned and operated by the San Bernardino Municipal Water Department. All water facilities, hydrants, and water systems for fire protection in the area shall meet the water flow demands and be installed prior to development. All previous agreed upon egress for the project site that has been approved in the Environmental Impact Report shall be in place prior to construction. This includes the primary and secondary egress outlets.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 14 Plan for Service and Fiscal Analysis Figure 3-1 Fire Protection Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 3-1 Fire Protection Sources: Stanley R. Hoffman Associates, Inc. Google Earth Pro

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 15 Plan for Service and Fiscal Analysis

3.3 Sheriff/Police Before Annexation The San Bernardino County Sheriff-Coroner’s Department provides public safety services to the unincorporated areas. The County Sheriff operates from an office in the City of San Bernardino at 655 East Third Street. The Sheriff’s Department and the City Police Department provide mutual backup services upon request within both the City and unincorporated areas. The California Highway Patrol in San Bernardino provides traffic patrol on State Highways within the unincorporated areas of the County. The Highway Patrol can also provide emergency response backup to the City Police and the County Sheriff upon request. After Annexation After the annexation, the City of San Bernardino Police Department will be providing the public safety services for the Island Area and Spring Trails. The area is served by a main police station, located at 710 North D Street, and four designated geographical patrol districts (Northwest, Northeast, Southwest, and Southeast). The project site belongs to patrol beat B1 in the Northwest Patrol District, as shown in Figure 3-2. The San Bernardino Police Department maintains a ratio of approximately one sworn officer for every 1,000 residents. The City Police Department operates under a mutual aid agreement with police agencies in the surrounding cities that allows use of up to fifty percent of adjacent agency resources upon request and for automatic response within zones of mutual aid. The California Highway Patrol in San Bernardino will continue to provide traffic patrol on State Highways within the unincorporated areas. 3.4 Library Before Annexation Currently, the existing households within the annexation area is served by the San Bernardino County Library system. However, the nearest County library, the Carter Branch Library is located at 2630 North Linden Drive in Rialto and is a driving distance of about 12.2 miles away from the annexation area. After Annexation The Howard M. Rowe Branch Library facility is a branch of the San Bernardino City Library system. Located at 108 East Marshall Boulevard in the City of San Bernardino, this branch is closest to the Island Area, with a driving distance of about 9.6 miles. The annexation area would continue to receive library services from the City of San Bernardino Branch library upon annexation.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 16 Plan for Service and Fiscal Analysis Figure 3-2 City of San Bernardino Police Department: Northwest District Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 3-2 City of San Bernardino Police Department: Northwest District Sources: Stanley R. Hoffman Associates, Inc. City of San Bernardino, Police Department 3.5 Parks and Recreation Before Annexation The County Regional Parks Department provides regional park services to all residents within the County, including unincorporated areas. The County Regional Parks system includes the following parks: Glen Helen, Yucaipa, Lake Gregory, Cucamonga, Guasti, and Prado. The closest regional park is Glen Helen Regional Park which has various recreation areas with amenities for fishing, boating, and picnicking. However, the County does not provide local park services, and, currently, there are no local parks within the annexation area.

ISLAND AREA
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 17 Plan for Service and Fiscal Analysis After Annexation The City of San Bernardino General Plan indicates that there are a total of 52 developed parks and recreational facilities in the City. There are a variety of different types of parks, including: 19 neighborhood, 10 community, 17 mini-parks, 3 regional parks, and 3 special facilities. The parks contain a broad range of facilities; including children’s play equipment, tennis and volleyball courts, and athletic fields. The special facilities include community buildings and senior centers. Al Guhin Park, located at 3650 Little League Drive, is the closest City park to the annexation area (approximately 1.3 miles). The proposed Spring Trails Specific Plan to the north of the Island Area will add additional open spaces that are meant to function as recreational opportunities, buffers, visual landmarks, and interconnecting trails. The facilities will consist of community trails, equestrian/pedestrian trails and hiking trails. 3.6 Animal Control Before Annexation Currently, the annexation area is serviced by the City of San Bernardino’s Animal Control on a contract basis. Animal Control is a field service provided by the City of San Bernardino Animal Services Department and is responsible for animal licensing, dead animal pickup, loose animal investigations, animal shelter management, and other services. After Annexation The Animal Control field service of the City of San Bernardino Animal Services Department will continue to provide services to the area after annexation. 3.7 Street Lighting Before Annexation Street lighting is a service provided to the area by Southern California Edison. However, the street lighting only extends to the southern border at Meyers Road, and no street lighting exists within the Island Area along Wendy Ranch Road. After Annexation Upon annexation, the City of San Bernardino Public Works Department is responsible for the maintenance of lighting in the public right of ways.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 18 Plan for Service and Fiscal Analysis

3.8 Landscape Maintenance Before Annexation San Bernardino County provides road pavement and minimal landscaping maintenance. After Annexation Upon annexation and development, the responsibility will fall upon the City of San Bernardino Public Works Department. 3.9 Water Before Annexation Currently, public water facilities do not serve the parcels in the Island Area. After Annexation Upon annexation, the City of San Bernardino Municipal Water Department (SBMWD) would provide water services to the Island Area. The area lies between the 2,300 to 3,000-foot pressure zones. The nearest existing reservoir is the Meyers Canyon Reservoir, which is within the 2,100-foot pressure zone, but is not adequate for Verdemont Heights. Therefore, including the demand from the proposed Spring Trails project, water will be supplied from lower elevations by a combination of expanding and improving the offsite water system and the provision of onsite reservoirs and transmission lines. 3.10 Wastewater Collection Before Annexation Sewer service to the project site is currently via septic tanks. After Annexation The Island Area is within the City’s Public Works Department’s sanitary sewer service area. The City’s engineering sewer capacity study concluded that the existing sewer system has the capacity to accommodate the Island Area and the proposed Spring Trails project. Beginning May 2017, operation and maintenance of the City’s wastewater collection system was transferred to the City of San Bernardino Municipal Water Department (SBMWD). Under proposed improvements for Spring Trails, the project would connect to the existing 10-inch sewer line located on Little League Drive, which connects to a major interceptor system to the south and is eventually treated in the San Bernardino Water Reclamation Plant operated by Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 19 Plan for Service and Fiscal Analysis SBMWD. The only offsite improvement that may be required is North Little League Drive, which may be upgraded from an 8” to a 10” line depending upon the ultimate slope as determined in final engineering.1 3.11 Transportation Before Annexation Current transportation services for the annexation area include freeways and interchanges serviced by Caltrans; arterials and collectors serviced by the County Public Works Department; local roads also serviced by the Public Works Department of San Bernardino County; and public transit serviced by Omnitrans. The closest Omnitrans bus stop to the annexation area is at Kendall Drive and Palm Avenue with a driving distance of about 2.2 miles. After Annexation Caltrans and Omnitrans will continue to provide their services post annexation for arterials, collectors and public transit. Upon annexation, the City becomes responsible for the regional transportation fee associated with the proposed project, which is included in the review of City fees for new development in Chapter 4, Table 4-2. 3.12 Flood Control and Drainage Before Annexation The drainage area to which the Island Area belongs flows into Cable Canyon, then into Cable Creek, then into Devil Creek Diversion Channel, then into Lytle Creek Wash and eventually into the Santa Ana River. Currently, there are no local flood control or drainage facilities in the annexation area. On a regional level, the San Bernardino County Flood Control District intercepts and manages flood flows through and away from developed areas throughout the County. The District is also responsible for water conservation and storm drain construction. After Annexation Upon annexation, flood control and drainage systems remain under the San Bernardino County Flood Control District. The existing Cable Canyon and Meyers Canyon drainage ways would remain relatively unchanged, except for necessary roadway and infrastructure improvements. 1 Montecito Equities, Spring Trails Specific Plan, October 2012, p. 3-112 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 20 Plan for Service and Fiscal Analysis

3.13 Utilities Before and After Annexation Utilities include cable television, internet, telephone, electric power, and natural gas. Currently, Charter Communications is the cable television and internet service provider. Verizon maintains telephone service to the annexation area. Electricity is provided by Southern California Edison, while natural gas is supplied by the Southern California Gas Company. These service providers are not anticipated to change upon annexation. 3.14 Schools Before and After Annexation Public education in the City of San Bernardino is provided by San Bernardino City Unified School District (SBCUSD). SBCUSD is the eighth-largest public school district in California with over 54,379 students enrolled at 44 elementary schools, 10 middle schools, 8 high schools and 3 special education schools. Before the annexation, the SBCUSD served the unincorporated area. SBCUSD will continue to serve the existing development as well as any future development in the annexation with North Verdemont Elementary School (3555 West Meyers Road), Chavez Middle School (6650 North Magnolia Avenue), and Cajon High School (1200 Hill Drive), as shown in Figure 3-9. Palm Avenue Elementary School is also located near the annexation area at 6565 Palm Avenue. Figure 3-3 Local Elementary, Middle and High Schools San Bernardino City Unified School District City of San Bernardino 3-3 Local Elementary, Middle and High Schools Source: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 21 Plan for Service and Fiscal Analysis

3.15 Solid Waste Management Before Annexation The current service provider of solid waste management for the annexation area is the San Bernardino County Department of Public Works’ Solid Waste Management Division, under the contract with Burrtec. The division oversees the operation and management of the County’s solid waste disposal system, which includes five regional landfills and nine transfer stations. After Annexation Solid waste collection within the City of San Bernardino and a portion of the unincorporated planning area is provided by Burrtec on a contract basis with the City. 3.16 Public Health and Welfare Before and After Annexation The San Bernardino County Department of Public Health currently serves the City for the general public’s health and welfare services. The department provides a variety of programs and services that informs and educates the public about health issues. The County Department of Public Health additionally provides public assistance welfare and healthcare needs for all residents within San Bernardino County. There are no anticipated changes in service levels or costs after the annexation of the proposed project.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 22 Plan for Service and Fiscal Analysis CHAPTER 4 PAYING FOR PUBLIC FACILITIES AND INFRASTRUCTURE 4.1 Overview of Development Impact Fees Any new development in the Island Area will pay one-time development impact fees (DIF) to offset the additional public capital costs required of new development. If the developer constructs any facilities covered by DIFs, the developer will receive credit toward construction costs for an equivalent amount of DIF fees. At this time, no new development is assumed for the period of 5 years post-annexation being analyzed in this study. Therefore, no development impact fees are projected for this period for the Island Area Annexation. For information purposes, one-time development impact fees that could be collected by the City and the Municipal Water Department upon annexation are shown in Table 4-1. City fees include Community Development, Public Safety and Engineering fees. 4.2 Schools There is a one-time School Impact Fee of $4.31 per square foot for new, single-family residential development in the City of San Bernardino. 4.3 Utilities Cable television, internet, power, and gas utilities are enterprise services, where fees are determined by each company’s rate structure. 4.4 Roads and Drainage The local circulation systems fee is $233 per unit, while the regional circulation systems fee is $2,435 per unit, as shown in Table 4-1. 4.5 Water and Sewer The San Bernardino Municipal Water Department (SBMWD) charges a Sewer Capacity Fee of $3,500 per unit and a Water Connection Fee of $7,110 per unit, as shown in Table 4-1.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 23 Plan for Service and Fiscal Analysis Table 4-1 Summary of City Development Impact Fees Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 4-1 Summary of City Development Impact Fees

Estimated
Development Fees
Development Impact Fee Category 1 AmountImpact Fees
New Residential Units 0
Fee per Unit
City Fees 2
Community Development Fees
Aquatic Facilities $326 $0
Cultural Development $3,000 $0
Library Facilities $638 $0
Public Meeting Facilities $1,090 $0
Parkland and Open Space $9,518 $0
Subtotal $14,571 $0
Public Safety Fees
Law Enforcement $639 $0
Subtotal $639 $0
Engineering Fees
Local Circulation Systems $233 $0
Regional Circulation Systems $2,435 $0
Storm Drain $3,926 $0
Verdemont (Chestnut Drainage Fee -- $0.289/ sq. ft.) $957 $0 Verdemont (Palm Box Culvert/ Signal -- $0.022/ sq. ft.) $74 $0 Subtotal $7,624 $0
Total City Fees $22,835 $0
Water & Sewer - City of San Bernardino Municipal Water Department (SBMWD) 4 Sewer Capacity $3,500 $0
Water Connection (3/4" x 3/4") $7,110 $0
Total SBMWD Fees $10,610 $0
TOTAL FEES $33,445 $0

1. Note that the analysis does not include engineering processing fees, applicable fee credits, potential CFD/AD proceeds or potential impact of a Development Agreement, Mitigation Agreement, SB 50 Agreement, or similar agreement.

2. Represents the applicable fees per the City of San Bernardino fee schedule cited below. Actual fee amounts may differ at the time of application for building permits or connection to services.

3. Upon annexation, payment of the regional circulation system fee which was the requirement of the County prior to annexation will transfer to the City.

4. Represents the applicable water fees per the City of San Bernardino Municipal Water Department.

Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Land Development Division Impact Fees, Effective February 15, 2022 (Accessed 8/2023) Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 24 Plan for Service and Fiscal Analysis CHAPTER 5 FISCAL IMPACTS This chapter describes the fiscal analysis of the Meyers Road Island Area annexation. Fiscal impacts are first presented to the City of San Bernardino General Fund followed by the projected recurring revenues to the City’s Gas Tax Fund, and the City’s Measure I Fund. Fiscal impacts are shown in constant 2024 dollars with no adjustment for possible future inflation. As required by LAFCO, this study analyzes and presents the fiscal impacts of the Island Area on the City General Fund and other funds for the first five years upon annexation. First year post-annexation is assumed to be 2026. 5.1 City General Fund A small deficit of $2,474 is projected to the City General Fund for the Meyers Road Island Area Annexation at Year 5 upon annexation, as shown in Table 5-1. The projected deficit is based on recurring revenues of about $5,738 and recurring costs of about $8,212. This projection includes assumed revenues from the recently adopted CFD 2018-1 tax for safety services. The revenue-to-cost ratio is estimated at about 0.70 at Year 5 upon annexation. Projected deficit to the General Fund declines slightly from $2,756 in Year 1 upon annexation through $2,474 in Year 5. The calculation assumes revenues from the recently adopted CFD 2018-1 tax for safety services family unit, which increases over time. Table 5-1 Summary of Projected General Fund Recurring Fiscal Impacts Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 5-1 Summary of Projected Recurring Fiscal Impacts

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 25 Plan for Service and Fiscal Analysis General Fund Projected Recurring Revenues The CFD 2018-1 (safety services) taxes, Utility User tax, and off-site and Measure-S sales taxes account for about 82 percent of the total projected General Fund revenues at Year 5, as shown in the detailed projected fiscal impacts in Table 5-2. General Fund Projected Recurring Costs As also shown in Table 5-2, police protection and general government account for about 76 percent of total projected recurring General Fund costs for the project after buildout. Table 5-2 Detailed General Fund Projected Recurring Fiscal Impacts Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 5-2 Detailed General Fund Projected Recurring Fiscal Impacts

Year 1Year 2Year 3Year 4Year 5PercentGeneral Fund 20262027202820292030of Buildout Estimated Recurring Revenues
Property tax 1 $0 $0 $0 $0 $00.0%Property tax in lieu of VLF 0 0 0 0 0 0.0%Off-site retail sales and use tax954 954 954 954 95416.6%Measure S - sales tax 852 852 852 852 85214.8%Franchise tax 548 548 548 548 5489.5% CFD 2018-1 (safety services) 2 1,6661,7321,8021,8741,94934.0%Charges for current services 143 143 143 143 1432.5%Fines and forfeitures 58 58 58 58 581.0%Intergovernmental revenues 78 78 78 78 781.4%Miscellaneous revenues 56 56 56 56 561.0%Tow franchise revenues 28 28 28 28 280.5% Property transfer tax-turnover 3 0 0 0 0 0 0.0%Sales tax - public safety 76 76 76 76 761.3%Utility user tax 997 997 997 997 99717.4%Total Projected Revenues$5,456$5,522$5,591$5,664$5,738100.0% Estimated Recurring CostsEconomic and housing development$68 $68 $68 $68 $680.8%Police protection 4,9494,9494,9494,9494,94960.3%Parks, recreation and community services268 268 268 268 2683.3%Public works' services 1,2361,2361,2361,2361,23615.1%Transfer to Animal Control Fund197 197 197 197 1972.4%Library 153 153 153 153 1531.9%General government - O&M/contracts458 458 458 458 4585.6%General government - overhead883 883 883 883 88310.8%Total Recurring Costs$8,212$8,211$8,212$8,212$8,212100.0% Estimated Net Recurring Surplus-$2,756-$2,689-$2,620-$2,548-$2,474 Estimated Revenue/Cost Ratio0.66 0.67 0.68 0.69 0.70

1. Based on information from the City Finance Director, per the agreement between the City and the San Bernardino County Fire Protection District (SBCFPD) the City will not receive any of the basic one percent property tax upon annexation of the Spring Trails project.

2. The City formed CFD 2018-1 in October 2018 which levies a special tax to provide finances for a portion of ongoing citywide public safety services.

The special tax is $385 per single family unit and $358 per multi-family unit effective July 1, 2019 through June 2024. Beginning July 1, 2024, these rates will increase by four percent each following July 1.

3. Residential turnover is not anticipated within first 5 years of annexation.

Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Finance Director
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 26 Plan for Service and Fiscal Analysis

5.2 Other Funds Fund 126 – Gas Tax As shown in Panel A of Table 5-3, recurring Gas Tax Fund revenues to the City are projected at $292 per year for the Island Area annexation over the 5-year period. These revenues are earmarked for transportation related expenditures. Fund 129 – Measure I Measure I includes a ½ cent sales tax for transportation expenditures. Recurring Measure I revenues are projected at $89 per year over the 5-year period, as shown in Panel B of Table 5-3. Table 5-3 Summary of Projected Other Funds Recurring Revenues Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 5-3 Summary of Projected Other Funds Recurring Revenues

1. Annual recurring gasoline tax and Measure I revenues are restricted to street related expenditures.

Sources: Stanley R. Hoffman Associates, Inc.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 27 Plan for Service and Fiscal Analysis CHAPTER 6 CITY OF SAN BERNARDINO FISCAL ASSUMPTIONS This chapter presents the revenue and cost assumptions for projecting the ongoing operations and maintenance costs to the City General Fund and related City Funds for the Meyers Road Island Area annexation into the City of San Bernardino. As discussed earlier, the annexation area is currently located in the unincorporated area of San Bernardino County, within the existing sphere of influence of the City of San Bernardino. The general City demographic and economic assumptions used for calculating fiscal factors are first presented. The assumptions for projecting recurring revenues are then presented followed by the assumptions for projecting recurring costs. The fiscal factors are based on discussion with City finance staff and the City’s Fiscal Year 2023-24 Adopted Budget. 6.1 City General Assumptions Fiscal impacts that are not based on valuation and taxable sales are generally projected based on a per capita, per employee, or per service population basis. Some fiscal impacts are projected based on other factors, such as per unit or per acre, based on the available data. General fund revenue and cost factors are estimated by dividing the FY 2023-24 budget categories by the City’s resident population, employment, total service population, or developed acres where appropriate. Table 6-1 provides the City’s general assumptions for this fiscal analysis. Population As shown in Table 6-1, the State Department of Finance (DOF) estimates the City of San Bernardino’s January 1, 2023, total population at 223,230. The City population estimate is used for projecting certain revenues and costs on a per capita basis, such as State subvened gas taxes. Housing Units DOF estimates 67,593 total housing units for the City of San Bernardino for January 1, 2023. DOF estimates that 64,905 units are occupied. Persons per Household The 2023 average persons per household for the City is estimated at 3.34 persons based on dividing the household population estimate of 216,854 by the 64,905 estimated occupied units.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 28 Plan for Service and Fiscal Analysis Table 6-1 City Population, Housing and Employment Assumptions Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino 6-1 City Population, Housing and Employment Assumptions Employment For fiscal factors that are impacted by only employment, such as business license taxes, the City’s total employment is used as the basis for calculating the factor. The total City employment of 112,478 for the year 2023 represents an interpolation of the years 2019 and 2035 from the Southern California Association of Governments (SCAG) 2024 Regional Transportation Plan (RTP), Preliminary Data.

Assumption Description
Population and Housing 1
216,854Total Household Population
6,376Group Quarters Population
223,230Total Resident Population
43,315Single Family Units
24,278Multi-Family Units
67,593Total Housing Units
64,905Occupied Housing Units

3.34Citywide Average Household Size
Employment
112,478Total City Employment 2
Service Population 3
223,230Total Resident Population
56,239Employment Weighted at 50%
279,469Total Service Population
Note: 1. Population and housing estimates are January 1, 2023 estimates provided by the California Department of Finance (DOF).

2. The total employment estimate for 2023 based on an interpolation of the 2019 and 2035 estimates from the Southern California Association of Governments, (SCAG) 2024 RTP preliminary estimates.

3. This analysis has weighted the employment at 50% to account for the estimated less frequent use of City services by employment versus population. Service population equals the total resident population plus the weighted employment.

Sources: Stanley R. Hoffman Associates, Inc.

State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State - January 1, 2021-2023, Sacramento, May 2023 Southern California Association of Governments (SCAG), Preliiminary RTP 2024 Projecions Data Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 29 Plan for Service and Fiscal Analysis Service Population Fiscal factors that are impacted by both population and employment growth are estimated by allocating total budgeted revenues or costs to the estimated service population. Service population includes the City’s resident population plus 50 percent of the total estimated City employment. Employment is weighted at 50 percent to account for the estimated less frequent use of City services by employment versus population. As shown in Table 6-1, The City’s service population is estimated at 279,469 and represents the City’s estimated resident population of 223,230 plus 50 percent of the City’s estimated total employment, or 56,239 (50 percent of the total employment of 112,478). 6.2 City Revenue Assumptions The General Fund and Gas Tax Fund revenue factors that are used in preparing the fiscal analysis for the Island Area are presented in Table 6-2. These factors are based on the City’s Fiscal Year (FY) 2023-24 Adopted revenues for the General Fund and Other Funds shown in Appendix Table B-1 and Table B-2 and the City’s population, employment and service population estimates that are presented in Table 6-1. General Fund Property Taxes - General Fund. The San Bernardino County Fire Protection District (SBCFPD) is now providing fire protection to the City. Based on the agreement between the City and the SBCFPD, the City will not receive a share of the 1.0 percent basic levy. The SBCFPD will receive the entire allocations that would have previously been allocated to the City. Property Tax In Lieu of Vehicle License Fees. Cities and counties began receiving additional property tax revenue to replace vehicle license fee (VLF) revenue that was lowered in 2004 when the state reduced the vehicle license tax. This property tax in lieu of VLF is projected to grow with the change in the citywide gross assessed valuation (AV) of taxable property from the prior year. As shown in Appendix Table B-3, the property tax in lieu of VLF in the City is projected to increase at an average of $1,270 per million dollars of new assessed valuation (AV). This factor is based on the change in AV and the change in property tax in lieu of VLF in the City over the last 10 years.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 30 Plan for Service and Fiscal Analysis Table 6-2 General Fund and Other Funds Recurring Revenue Factors Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 6-2 General Fund and Other Funds Recurring Revenue Factors

FY 2023-24Adopted
Revenue Source Budget Projection Basis 1

GENERAL FUND
Property Taxes 2 n/a Case Study: Project Valuation0.00%City general share of 1% levy Property Tax In Lieu VLF (PTVLF) 3 $23,000,000 Case Study $1,270per $1,000,000 assessed valuation

73.5%of PTVLF allocated to General Fund
Sales and Use Tax $51,500,000 Taxable Sales 100%of 1% of projected sales and use tax Use Tax Factor Use Tax as Percentof Sales Tax 14.9%of sales tax Measure S - Sales Tax 4 $46,000,000 Case Study $893.00per $1,000 of sales and use taxFranchise Taxes $11,781,000Service Population = 279,469$42.15per service population CFD 2018-1 (Safety Services) 5 n/a Residential Units $400per single family unit$372per multi-family unit Charges for Current Services $2,450,750 Population = 223,230$10.98per capita Fines and Forfeitures $1,255,500Service Population = 279,469$4.49per service population Intergovernmental Revenues$1,335,000 Population = 223,230$5.98per capita Business Registration $8,000,000 Employment =112,478$71.13per employee Miscellaneous Revenues $1,209,056Service Population = 279,469$4.33per service population Tow Franchise $606,000Service Population = 279,469$2.17per service population Property Transfer Tax $1,100,000 Property turnover5.0%Residential turnover rateandvaluation assumptions$0.55per $1,000 assessed valuation Sales Tax - Public Safety $1,300,000 Population = 223,230$5.82per capita Utility User Tax $21,430,500Service Population = 279,469$76.68per service population GAS TAX FUND 126State gasoline tax $5,008,561 Population = 223,230$22.44per capita MEASURE I FUND 1291/2% sales tax $4,808,000City Sales and Use Tax =$51,500,000$93.36per $1,000 City sales and use tax

1. For fiscal factors that are based on population and employment, an estimated service population factor is applied, which represents the total population plus 50% of the total employment estimate.2. Based on information from the City Finance Director, at this time the City General Fund will not receive any of the one percent basic property tax levy on the property's assessed valuation because of the property tax exchange agreement between the City and the County Fire Protection District. The County Fire Protection District now provides fire protection to the City.3. The State has lowered the VLF rate, which reduces the amount of VLF received by cities and counties. However, the State is providing property taxes to offset the VLF reduction. VLF is estimated to change according to the City's increased in assessed valuation, as shown in Appendix Table B-3. Based on the property tax agreement between the City and the County Fire Protection District, the City will receive 73.5 percent of the projected property tax in lieu of VLF from the project.4. The City enacted Measure S in 2006 which is a 0.25 percent sales tax and increased to 1 percent in 2020 by voters.5. The City formed Community Facilities District (CFD) 2018-1 in October 2018 which levies a special tax to provide finances for a portion of ongoing citywide public safety services. The special tax is $385 per single family unit and $358 per multi-family unit effective July 1, 2019 through June 2024. Beginning July 1, 2024, these rates will increase by four percent each following July 1.

Sources: Stanley R. Hoffman Associates, Inc. City of San Bernardino, Fiscal Year 2023-24 Adopted Budget City of San Bernardino, Finance Director State of California, Department of Finance, E-5 Population and Housing Estimates for Cities, Counties and the State - January 1, 2021-2023, Sacramento, May 2023 Southern California Association of Governments (SCAG), Preliiminary RTP 2024 Projecions Data Projection Factor
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 31 Plan for Service and Fiscal Analysis The City receives property tax in-lieu of VLF based on the change in its gross assessed valuation of taxable property for new development in the annexed area. Per State law, the existing valuation in an annexing area cannot be used in adjusting the base amount of assessed valuation in the annexing City. However, based on the agreement between the City and the San Bernardino County Fire Protection District the City will receive only 73.5 percent of the projected property tax in lieu of VLF. Sales and Use Tax. Sales tax revenues to the local jurisdiction are projected at one percent of taxable sales. The City receives one percent of the taxable sales of most goods occurring within City limits. In addition to sales tax revenue, the City receives revenues from use tax, which is levied on shipments into the state and on construction materials for new development not allocated to a situs location. Use tax is allocated by the California Department of Tax and Fee Administration (CDTFA) based on each jurisdiction's proportion of countywide and statewide direct taxable sales. Use tax revenues to the City of San Bernardino are estimated at an additional 14.9 percent of point-of-sale sales tax, as shown in Appendix Table B-4. Half-year 2022 sales tax data provided obtained from CDTFA estimates that $3,549,772 of total sales and use tax were made from levies designated as use tax and the remaining $23,826,715 of the sales and use tax was point-of-sale sales tax. Therefore, use tax revenues to the City of San Bernardino are estimated at an additional 14.9 percent of point-of-sale sales tax. Measure S – Sales Tax. As shown in Table 6-2, Measure Z sales tax is projected at $893 per $1,000 of City sales and use tax. This tax is an additional component of sales and use tax that established an additional 0.25 percent sales tax that took effect in 2007. Measure S was increased to 1 percent sales tax by voters in 2020. Based on discussion with the City’s finance director, this revenue is assumed for the fiscal analysis. Franchise Taxes. Franchise taxes are projected at $42.15 per service population based on FY 2023-24 Adopted Budget revenues of $11,781,000 and the service population estimate of 279,469. City franchise taxes are collected for providers of cable, electric, gas, and telephone. Community Facilities District (CFD) 2018-1 (Safety Services). The City formed CFD 2018-1 In October 2018 which levies a special tax to provide financing for a portion of ongoing public safety services. The special tax was $385 per single family unit and $358 per multi-family unit.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 32 Plan for Service and Fiscal Analysis Collection of the fee began July 1, 2019, and will remain at the current rate for five years. Beginning July 1, 2024, these rates will increase by four percent each following July 1. Charges for Current Services. Based on estimated FY 2023-24 Adopted Budget recurring revenues of $2,450,750 and the City’s population estimate, charges for current services are projected at $10.98 per capita. These revenues do not include one-time fees and charges, as shown in Appendix Table B-1. Fines and Forfeitures. These revenues include vehicle code fines, parking citations and other fines and penalties, and are projected at $4.49 per service population based on estimated FY 2023-24 Adopted Budget revenues of $1,255,500 and the City’s service population of 279,469. Intergovernmental Revenues. As shown in Table 6-2, these revenues are projected at $5.98 per capita based on estimated FY 2023-24 Adopted Budget revenues of $1,335,000 and the City’s population estimate of 223,230. Business Registration. These revenues are not projected for the Island Area because there is no employment projected for the project. Miscellaneous Revenue. These revenues are projected at $4.28 per service population based on estimated FY 2023-24 Adopted Budget recurring revenues of $1,209,056 and the City’s service population estimate of 279,469. Water Fund contributions for administrative services are included in this category. Revenues that are generated on a one-time basis and revenues that are not directly generated by the project are not included in this category. Tow Franchise. Tow franchise revenues are projected at $2.17 per service population based on FY 2023-24 Adopted Budget revenues of $606,000 and the service population of 279,469. Property Transfer Tax. Sales of real property are taxed by San Bernardino County at a rate of $1.10 per $1,000 of property value. For property located in the City, property transfer tax is divided equally between the City and the County, with the City receiving $0.55 per $1,000 of transferred property value. Based on the U.S. Census Bureau, American Community Survey for the period from 2015 to 2021, residential development in the City of San Bernardino is estimated to change ownership at an average rate of about 5.0 percent per year (Appendix Table B-5).

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 33 Plan for Service and Fiscal Analysis Sales Tax – Public Safety. These revenues are projected at $5.82 per capita based on the City FY 2023-24 Adopted revenue amount of $1,300,000 and the population estimate of 223,230. Utility User Tax. The City of San Bernardino levies a utility user tax on the users of cable, natural gas, electricity and telephone services within the City. Based on the City FY 2023-24 Adopted Budget revenue amount of $21,430,500 and the City’s estimated service population of 279,469, utility user taxes are projected at $76.68 per service population. Gas Tax Fund 126 As shown in Table 6-2, total State gasoline tax revenues to the City are projected at $22.44 per capita based on estimated FY 2023-24 Adopted Budget revenues of $5,008,561 and the City’s total population estimate of 223,230. These revenues include appropriations the shown in Appendix Table B-2. These revenues are earmarked for road related expenditures. Measure I Fund 129 Measure I includes is a ½ cent sales tax. As shown in Table 6-2, total Measure I sales tax revenues to the City are projected at $93.36 per $1,000 of total sales and use tax. This factor is based on estimated FY 2023-24 Adopted Budget revenues of $4,808,000 for Measure I sales tax and the City’s total sales and use tax of $51,500,000. These revenues are earmarked for transportation related expenditures. 6.3 City Cost Assumptions The General Fund cost factors that are used in preparing the fiscal analysis for the Meyers Road Island Area Annexation are presented in Table 6-3. These factors are based on the City’s Fiscal Year (FY) 2023-24 Adopted Budget net expenditures shown in Table 6-3 and the City’s population and service population estimates that are presented in Table 6-1. City General Fund expenditures are projected for general government, or overhead functions; community development; police; parks, recreation and community services; public works; and transfers from the General Fund to the Animal Control Fund and to Library services. Water and sewer operations are assumed to not impact the General Fund because they are enterprise functions and maintenance costs are assumed to be covered through the payment of user fees and charges. Fire protection to the City is provided by the San Bernardino County Fire Protection District, and these costs are not included in this analysis.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 34 Plan for Service and Fiscal Analysis Table 6-3 General Fund Recurring Cost Factors Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) 6-3 General Fund Recurring Cost Factors General Government General government costs include administration and support of the departmental functions. General government costs for City of San Bernardino include Mayor, City Council, City Clerk, City Attorney, City Manager, Human Resources, Finance, Benefits, Dues and Subscriptions and Debt Service. These are generalized citywide services and can’t be directly linked to a specific department or project. As shown in Table 6-4, Fiscal Year 2023-24 Adopted Budget general government costs are estimated at $19,914,991 and direct departmental costs (or non-general government) are estimated at $165,342,925. Average general government costs are projected at about 12.0 percent of direct non-general government costs.

FY 2023-24Adopted Budget
Cost Category Total Net Projection Basis 1 Cost Factor 1 General Government - Overhead$19,914,991$19,914,991Share of Line Costs12.0%of direct department costs General Government - Operations andMaintenance (O&M)/Contracts$9,846,601$9,846,601Service Population = 279,469$35.23per service population Community and Economic Devevelopment 2 $11,923,799$1,452,799Service Population = 279,469$5.20per service population Police Protection $106,395,588$106,395,588Service Population = 279,469$380.71per service population Parks, Recreation and Community Services$4,596,710$4,596,710Population = 223,230$20.59per capita Public Works Services $26,567,943$26,567,943Service Population = 279,469$95.07per service population Transfer to Animal Control Fund$3,378,783$3,378,783Population = 223,230$15.14per capita Library $2,633,501$2,633,501Population = 223,230$11.80per capita

1. For fiscal factors that are based on population and employment, an estimated service population factor is applied, which represents the total population plus 50% of the total employment estimate.2. Net community and economic development services costs are calculated from budgeted costs minus projected one-time charges for services revenues, license revenues and permit revenues that offset the budgeted costs, as shown in Table B-6.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 35 Plan for Service and Fiscal Analysis Table 6-4 Calculation of City General Government Overhead Rate Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis (In Constant 2024 Dollars) 6-4 Calculation of City General Government Overhead Rate General Government – Operations and Maintenance (O&M)/Contracts About $9,846,601 of General Fund expenditures are for operations and maintenance contracts. Based on this amount and the City’s estimated service population of 279,469, these costs are projected at $35.23 per service population, as shown in Table 6-3.

FY 2023-24 Adopted Budget
General Fund Expenditures Total
General
Government
Non-General
Government
General Government
Mayor $317,840$317,840
City Council 959,087 959,087
City Clerk 1,586,8931,586,893
City Attorney 3,310,4433,310,443
City Manager 2,401,8852,401,885
Human Resources 2,587,6142,587,614
Finance 6,218,0786,218,078
General Government:

Transfer to Animal Control3,378,783 3,378,783
Net Personnel45,090 45,090
Dues and Subscriptions122,953 122,953
Maintenance and Operations/Contractual9,846,601 9,846,601 Debt Service2,365,1082,365,108
General Government Subtotal15,758,535
Non-General Government
Community & Economic Development$11,923,799 $11,923,799 Police 106,395,588 106,395,588
Parks, Recreation and Community Services4,596,710 4,596,710 Public Works 26,567,943 26,567,943
Library 2,633,501 2,633,501
GRAND TOTAL GENERAL FUND$185,257,916$19,914,991$165,342,925 Current General Government Overhead Rate
General Government Expenditures $19,914,991
divided by
Direct General Fund Expenditures $165,342,925
equals
Current General Government Overhead Rate 12.0%
Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Fiscal Year 2023-24 Adopted Budget City of San Bernardino, Finance Director
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 36 Plan for Service and Fiscal Analysis Community and Economic Development As also shown in Table 6-3, Community and Economic Development costs are projected on net cost basis. Fiscal Year 2023-24 Adopted Budget Community and Economic Development costs of $11,923,799 are offset by one-time development related permit and fee revenues, as shown in Appendix Table B-6, to result in net costs of $1,452,799. This divided by the service population of 279,469 results in $5.20 per service population. Police Department Based on expenditures of $106,395,588 in the FY 2023-24 Adopted Budget budget, and the City’s service population estimate of 279,469, police costs are projected at $380.71 per service population. As discussed in Chapter 3, the San Bernardino Police Department maintains a ratio of approximately one sworn officer for every 1,000 residents. The annexation area will be served by a main police station, located at 710 North D Street. The project site belongs to patrol beat B1 in the Northwest Patrol District. Parks, Recreation and Community Services Citywide average annual costs for parks, recreation and community services are projected at $20.59 per capita based on the City’s FY 2023-24 Adopted Budget recurring costs for these services of $4,569,710 and the City’s population estimate of 223,230. Onsite parks, trails and open space will be maintained through a homeowners association. Public Works Services The Public Works Department maintains streets, sidewalks, curbs, gutters; street signs, street trees, traffic signals, streetlights, storm drains and sewer main lines. The Department also works with the Police Department for the prevention and removal of graffiti and provides collection services for refuse, recyclables and green waste. Based on FY 2023-24 expenditures of $26,567,943 and the City’s service population estimate of 279,469, average costs for all General Fund Public Works services are projected at $95.07 per service population. All project onsite streets, drains and streetlights will be maintained through a homeowners association and a lighting/ landscaping maintenance district.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 37 Plan for Service and Fiscal Analysis Transfer to Animal Control Fund Animal Control services are financed through a separate Animal Control Fund. Based on the City’s FY 2023-24 Adopted Budget General Fund transfers of $3,378,783 to the Animal Control Fund and the City’s population estimate of 223,230, these costs are projected at $15.14 per capita, as shown in Table 6-3. Library Fund Library services are also paid through a separate fund. Library service costs are projected at $11.80 per capita based on the City’s FY 2022-23 Adopted Budget General Fund transfers of $2,633,501 to the Library Fund and the City’s population estimate of 223,230.

Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 38 Plan for Service and Fiscal Analysis APPENDIX A NEIGHBORHOOD INFRASTRUCTURE IMPROVEMENTS Table A-1 Road, Drainage, Sewer. Parks, Trails and Open Space Phasing Spring Trails Specific Plan A-1 Spring Trails Specific Plan, Roads, Drainage, Sewer, Parks, Trails and Open Space Phasing

Lane MilesSquare FeetLane MilesSquare FeetLane MilesSquare FeetPrimary Access Miles/Square Feet1.04 153,2160.19 25,188Secondary Access Miles/Square Feet2.61 344,7890.08 10,254Primary Local Miles/Square Feet 2.96 309,3820.97 250,669Secondary Local Miles/Square Feet 0.27 28,275Cul-De-Sac I Miles/Square Feet 0.63 99,0760.31 43,960Cul-De-Sac II Miles/Square Feet 0.84 110,5012.41 288,137Total 3.65 498,0054.70 554,4013.96 611,041 PublicPrivatePublicPrivatePublicPrivateDetention Basin Square Feet 298,277 178,392Infiltration Trench Square FeetReinforced Concrete BoxLineal Feet1,430 2,286Reinforced Concrete PipeLineal Feet3,685 7,460 2,378Arch Culvert Lineal Feet580Total Lineal Feet 5,695 9,746 2378 Phase 2PublicPrivatePublicPrivatePublicPrivateSewer Main Lineal Feet4,017 10,857 13,479 PublicPrivatePublicPrivateOpen Space Acre 47.4 27Graded Slopes Acre 25.18 912' Pedestrian/Equestrian TrailLineal Feet 5,700 6,1004' Hiking Trail Lineal Feet 4,600 2,700Observation Point Each 3 3Trailhead Each 2 1Park Square Feet 57,331 landscaping.

Sources: Stanley R. Hoffman Associates, Inc. J. P. Weber Group, October 2016 Roads 1
Road Type Unit of MeasureOffsite Onsite (Private)Phase 1 Phase 2 Drainage (Basins, Storm Drain) 2
Facility Type Unit of MeasureOffsite OnsitePhase 1 Phase 2 Sewer 3
Facility Type Unit of MeasureOffsite OnsitePhase 1
Note: 1. All proposed offsite roads are assumed to be public maintained roads. Road sections are based on the proposed section on the Tentative Map exhibit. All roads are proposed as 2-lane roads. Lane miles are calculated by doubling the centerline length of a road segment. Road square footage is based on the entire road section, from R/W to R/W. 2. Detention basins are measured by square footage of the entire drainage lot. There are 2 basins in Phase 1 and 1 basin in Phase 2. Infiltration Parks, Trails and Open Space 4
Facility Type Unit of MeasurePhase 1 Phase 2
trenches are as proposed in the project WQMP and Hydrology Report. RCB quantities are based on the length of the centerline of each cell within a multiple celled box culvert. Arch Culverts are assumed for the Secondary Access Road crossing of Cable Creek. Arch Culverts are also proposed for Street " and Street "DD" crossing of Cable Canyon. 3. Offsite sewer is from the tract boundary on Verdemont Drive to Little League Drive, and in Little League Drive to existing facilities as depicted on the proposed Tentative Map. 4. Parks, Trails and Open Space sections are based on the Trails, Parks, and Open Space Plan in the Spring Trails Specific Plan. Trail lengths are approximate based on the Trails, Parks, and Open Space Plan. Open Space is areas on the Tentative Map that is not impacted by any development activity, except trail grading. Graded Slopes are areas within the proposed open space lots that have proposed grading and Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 39 Plan for Service and Fiscal Analysis APPENDIX B SUPPORTING FISCAL TABLES Table B-1 (page 1 of 2) General Fund Revenues, Fiscal Year 2022-23 Adopted Budget Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) B-1 General Fund Adopted Revenues, Fiscal Year 2022-23

Revenue CategoryTotalNon-Recurring 1Not Projected 2 Projected Property TaxesProperty Tax In Lieu of VLF$23,000,000$0 $0$23,000,000Sales and Use TaxSales and Use Tax $51,500,000$0 $0$51,500,000Measure Z - Sales TaxMeasure Z - Sales Tax $46,000,000$0 $0$46,000,000Franchise TaxFranchise Tax - So Cal Edison$1,000,000$0 $0$1,000,000Franchise Tax - So Cal Gas550,000 0 0 550,000Franchise Tax - Charter Cable TV1,100,000 0 0 1,100,000Franchise Tax - Verizon 120,000 0 0 120,000Franchise Tax - AT&T (Pacific Bell)11,000 0 0 11,000Franchise Tax - Burrtec Disposal9,000,000 0 0 9,000,000Total Franchise Taxes$11,781,000$0 $0$11,781,000Charges For ServicesOn Site Plan Check Fees$425,000$425,000$0 $0Cannabis Permit Application Fee20,00020,000 0 0Cannabis Permit Regulatory Fee85,00085,000 0 0Passport Fees 0 0 0 0Subdivision Filing Fee 100,000100,000 0 0Planning Development PR650,000650,000 0 0Technology Fee Development Services135,000135,000 0 0Plan Review 170,000170,000 0 0C&D Application Fee 0 0 0 0Plan Check Fee - B&S 1,700,0001,700,0000 0Plan Check Fee - Fire 0 0 0 0Board Up/Demolition 325,000325,000 0 0CDBG Revenue 10,000 0 10,000 0Pendency Release 3,500 0 3,500 0Miscellaneous Police Receipts1,200,000 0 0 1,200,000Sale of Photos 1,500 0 0 1,500Traffic Offender OTS Fee150,000 0 0 150,000Police Tow Release 575,000 0 0 575,000Private Property Tow Fee145,000 0 0 145,000Fingerprint Fee 14,000 0 0 14,000Property Auction 2,000 0 0 2,000False Alarm Fee 65,000 0 0 65,000Vehicle Repossession Fee5,000 0 0 5,000Investigation Fee 5,000 0 0 5,000Fireworks Enforcement 50,000 0 0 50,000Code SFIF 40,00040,000 0 0Administrative Citations SFRPIP55,00055,000 0 0Payoff Demand Fee 0 0 0 0Crime Free Rental Housing 0 0 0 0Cemetery Burial Fee 7,500 0 0 7,500Sale of Cemetery Vaults and Liners0 0 0 0Blanket Inspection Fee 225,000225,000 0 0Miscellaneous Engineering Receipt120,000120,000 0 0Plan Check Fee - Engineering1,600,0001,600,0000 0Archival Fee - Development Services0 0 0 0NPDES Storm Drain Utility Fee175,000175,000 0 0NPDES Inspection Fee 1,000 1,000 0 0Weed Abatement Destruction25,000 0 0 25,000Program & Facility Use Fees150,000 0 0 150,000Park Energy Fee 0 0 0 0Signal maint/energy 0 0 0 0Class Registration Fee 5,750 0 0 5,750Swimming Pool Fee 50,000 0 0 50,000Burrtec Host Fee 415,000415,000 0 0Library Fines 6,000 6,000 0 0Election Filing Fees 3,000 3,000 0 0Sale of Vases 500 500 0 0Non Resident Fee 500 500 0 0Crime Prevention Revenue400 400 0 0Total Charges for Services$8,715,650$6,251,400$13,500$2,450,750 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 40 Plan for Service and Fiscal Analysis Table B-1 (page 2 of 2) General Fund Revenues, Fiscal Year 2022-23 Adopted Budget Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars)

Revenue CategoryTotalNon-Recurring 1 Not Projected 2 Projected Fines and ForfeituresGeneral Fines $15,000 $0 $0 $15,000Code Administration Citations69,000 0 0 69,000Parking Citations 575,000 0 0 575,000General Administrative Civil Penalty130,000 0 0 130,000Police Administrative Civil Penalty0 0 0 0PW Administrative Civil Penalty0 0 0 0Code Administrative Civil Penalty465,000 0 0 465,000Private Property Tow Fee 0 0 0 0Library Fines 0 0 0 0City Attorney Administrative Citations1,500 0 0 1,500Total Fines and Forfeitures$1,255,500$0 $0$1,255,500IntergovernmentalMotor Vehicle In Lieu Tax$145,000 $0 $0 $145,000Other Governmental Agencies2,051,260 0 2,051,2600State Aid - POST 0 0 0 0State Mandated Cost Reimbursement65,000 0 0 65,000SBIAA Reimbursement 2,000 0 2,000 0Recoverable Expense Income1,100,000 0 0 1,100,000San Manuel Community Credit1,000,000 0 1,000,0000Water Reimbursement 25,000 0 0 25,000Total Intergovernmental$4,388,260$0$3,053,260$1,335,000Investment IncomeLand and Building Rental/Lease$525,000 $0 $525,000$0ATS Land and Building Rental0 0 0 0Total Use of Money and Property$525,000 $0 $525,000$0Licenses and PermitsBusiness Registration $8,000,000$0 $0$8,000,000Miscellaneous Planning Permits15,000 15,000 0 0Annual Alarm Permits 50,000 50,000 0 0Building Permits 2,000,0002,000,000 0 0Mechanical Permits 125,000125,000 0 0C&D Self Haul Permit 5,000 5,000 0 0Street Cut Permits 0 0 0 0Miscellaneous Licenses and Permits400,000400,000 0 0Grading Permits 15,000 15,000 0 0Public Works Construction Permits380,000380,000 0 0On Site Permits 1,750,0001,750,000 0 0Mobile Home Park Permit 3,000 0 3,000 0Total Licenses & Permits$12,740,000$4,740,000$0$8,000,000MiscellaneousMiscellaneous Planning Receipts$125,000 $0 $0 $125,000Miscellaneous Library Receipts4,500 0 0 4,500Miscellaneous Receipts 180,000 0 0 180,000Refunds and Rebates 6,000 0 0 6,000Litigation Settlements 60,000 0 0 60,000Restitutions 0 0 0 0Water Fund Contributions793,556 0 0 793,556Vehicle Take Home Reimbursement0 0 0 0DUI Reimbursement 10,000 0 0 10,000Off-Track Betting 30,000 0 0 30,000Total Miscellaneous$1,209,056$0 $0$1,209,056Other TaxesTow Franchise 606,000 $0 $0 $606,000Transient Occupancy Tax4,650,000 0 0 4,650,000Property Transfer Tax 1,100,000 0 0 1,100,000Sales Tax - Public Safety 1,300,000 0 0 1,300,000Cannabis Tax 4,000,000 0 0 4,000,000Total Other Taxes$11,656,000$0 $0$11,656,000Use of Money and PropertyInterest on Idle Cash $350,000 $0 $350,000$0Rental Income From Former EDA Properties200,000 0 200,000 0Vending Machine Commission4,000 0 4,000 0Total Use of Money and Property$554,000 $0 $554,000$0Utility Users TaxUtility Users Tax $21,430,500$0 $0$21,430,500 General Fund Total $194,754,966$10,991,400$4,145,760$179,617,806 Note: 1. One-time development related fees are not projected as recurring revenues because they are netted from projected development development services costs.

2. Certain recurring revenues (such as transient occupancy tax, intergovernmental revenues and set payment amounts) that are not impacted by the proposed project are not projected in the fiscal analysis.

Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Fiscal Year 2023-24 Adopted Budget Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 41 Plan for Service and Fiscal Analysis Table B-2 Fiscal Year 2022-23 Adopted Budget: Revenues for Other City Funds 1 Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) B-2 Revenues for Other City Fund, Fiscal Year 2022-23

Revenue Category Total Not Projected 2 Recurring
Fund 124 - Animal Control
Animal Licenses $210,000 $0 $210,000
Miscellaneous Licenses and Permits 2,500 0 2,500
General Fines 5,200 0 5,200
Animal License Penalty 13,500 0 13,500
Animal Adoption Fee 53,000 0 53,000
Contracted Shelter Fee 0 0 0
Apprehension Fee 11,000 0 11,000
Boarding Fee 0 0 0
Field Service Fee 6,000 0 6,000
Owner Release Fee 13,400 0 13,400
Vaccination Fee 36,000 0 36,000
Microchip Identification Fee 31,000 0 31,000
Miscellaneous Receipts 12,500 0 12,500
Transfers from General Fund 3,306,435 0 3,306,435
Intergovernmental 0 0 0
Total Animal Control Fund $3,700,535 $0 $3,700,535
Fund 126 - Gas Tax
State Gasoline Tax:
- HUTA Prop 42 Replacement (for Section 2103)$1,608,248 $0 $1,608,248 - Proposition 111 (Section 2105) 1,181,427 0 1,181,427
- Section 2106 716,333 0 716,333
- Section 2107 1,502,553 0 1,502,553
Subtotal $5,008,561 $0 $5,008,561
- Section 2107.5 flat amount 3 23,939 0 23,939Use of Money and Property 5,000 5,000 0 Total Gas Tax Fund $5,037,500 $5,000 $5,032,500
Fund 129 - Measure I
1/2 Cent Sales Tax $4,808,000 $0 $4,808,000
Federal Aid Street Construction 0 0
Subtotal $4,808,000 $0 $4,808,000
Interest on Idle Cash 28,000 28,000 0
Total Gas Tax Fund $4,836,000 $28,000$4,808,000

1. This table includes only the special fund revenues that are projected in the fiscal analysis.

2. Revenues that are not impacted by the proposed project are not projected as recurring revenues. Also, revenues allocated to capital expenditures and interest on idle cash revenues are not projected.

3. Section 2107.5 gas tax revenues are allocated based on the population size-range population of the City.

Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Fiscal Year 2023-24 Adopted Budget Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 42 Plan for Service and Fiscal Analysis Table B-3 Estimated In Lieu Property Tax of Vehicle License Fees (VLF) Factor Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino B-3 Estimated In Lieu Property Tax of Vehicle License Fees (VLF) Factor Table B-4 Calculation of Use Tax Factor Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino B-4 Calculation of Use Tax Factor

VLF - Assessed VLF per
Fiscal Year Property Tax In Lieu 1Valuation (AV) 2$1,000,000 AV 3 2013-2014 $16,328,700$10,695,499,230$1,530
2014-2015 $17,249,209$11,298,819,747$1,530
2015-2016 $18,206,540$11,924,444,131$1,530
2016-2017 $17,844,545$12,662,283,004$1,410
2017-2018 $15,000,000$13,395,373,121$1,120
2018-2019 $15,800,000$14,215,676,776$1,110
2019-2020 $16,805,900$15,437,323,990$1,090
2020-2021 $18,316,742$16,296,056,728$1,120
2021-2022 $19,267,608$17,611,502,086$1,090
2022-2023 $22,500,000$18,993,544,611$1,180
Average of Ten Years $1,270

1. The property tax in lieu VLF amounts are from the City's budget as cited below.

2. City assessed valuation is from the County Assessor report as cited below.

3. Estimated VLF per $1,000,000 AV is rounded to the nearest tens.

Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Adopted Budgets, 2013-2014 through 2022-23.

County of San Bernardino, Assessed Rolls, 2013 through 2023 City of San Bernardino Amount 1
Use Tax
County Pool $3,539,112
State Pool $10,660
Total Use Tax $3,549,772
divided by
Point-of-Sale $23,826,715
equals
Use Tax Rate2 14.9%

1. Obtained from CDTFA data for Half-year 2022.

2. The use tax rate is the County Pool plus the State Pool divided by point-of-sale taxable sales tax.

Sources: Stanley R. Hoffman Associates, Inc.

California Department of Tax and Fee Administration, CDTFA, 2023 Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 43 Plan for Service and Fiscal Analysis Table B-5 Estimated Annual Residential Turnover Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino B-5 Estimated Annual Residential Turnover

Occupied
Housing Percent
City of San Bernardino Units Turnover
Total Owner Occupied Units 32,391
Moved in 2019 or later 5,241
Moved in 2015 to 2018 6,044
Total Moved 2015 to 2021 11,285
Estimated Annual Turnover Rate: 2015 to 2021 1 1,612 5%

1. The annual turnover rate is based on the assumption of seven years for the 2015 to 2021 period.

Sources: Stanley R. Hoffman Associates, Inc.

U.S. Census Bureau, 2021 American Community Survey (ACS) 1-Year Estimate, Tenure by Year Householder Moved Into Unit, Report B25038, San Bernardino, California Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 44 Plan for Service and Fiscal Analysis Table B-6 General Fund Net Community and Economic Development Cost Factor Meyers Road Island Area Annexation Plan for Service and Fiscal Analysis City of San Bernardino (In Constant 2024 Dollars) B-6 General Fund Net Community Development Cost Factor

Category Amount
Total General Fund Community and Economic Development Costs$11,923,799 minus
Charges for Service
On Site Plan Check Fees $425,000
Cannabis Permit Application Fee 20,000
Cannabis Permit Regulatory Fee 85,000
Subdivision Filing Fee 100,000
Planning Development PR 650,000
Technology Fee Development Services 135,000
Plan Review 170,000
C&D Application Fee 0
Plan Check Fee - B&S 1,700,000
Board Up/Demolition 325,000
Blanket Inspection Fee 225,000
Miscellaneous Engineering Receipt 120,000
Plan Check Fee - Engineering 1,600,000
Archival Fee - Development Services 0
NPDES Storm Drain Utility Fee 175,000
NPDES Inspection Fee 1,000
Total One-Time Charges for Service $5,731,000
minus
One-Time Licenses and Permits
Miscellaneous Planning Permits $15,000
Annual Alarm Permits $50,000
Building Permits 2,000,000
Mechanical Permits 125,000
C&D Self Haul Permit 5,000
Street Cut Permits 0
Miscellaneous Licenses and Permits 400,000
Grading Permits 15,000
Public Works Construction Permits 380,000
On Site Permits 1,750,000
Total One-Time Licenses and Permits $4,740,000
equals
Recurring Net Community Development Costs $1,452,799
divided by
City Service Population 279,469
equals
Community Development Costs per Service Population $5.20 Sources: Stanley R. Hoffman Associates, Inc.

City of San Bernardino, Fiscal Year 2023-24 Adopted Budget City of San Bernardino, Finance Department
Stanley R. Hoffman Associates, Inc. Meyers Rd Island Annexation, City of San Bernardino July 3, 2024 45 Plan for Service and Fiscal Analysis APPENDIX C PROJECT REFERENCES City of San Bernardino www.sbcity.org/ Community and Economic Development Gabriel Elliot, Director, 909.384.5357 Timothy O’Neal, Senior Management Analyst, 909.384.7276 Travis Martin, Principal Planner, 909.384.5313 Finance Department Jeannie Fortune, Interim Director, 909.384.5242 Former Employees Nathan Freeman, Former Director, Community and Economic Development Marim Fam, Former Deputy Finance Director Rita Conrad, Former Interim Finance Director Brent Mason, Former Finance Director David Murray, Former Deputy Director/City Planner Oliver Mujica, Former Planning Division Manager San Bernardino Municipal Water Department Ted Brunson, Development Services Manager, 909.453.6165 J.P. Weber Group Jeff Weber, Principal, 949.254.0135 Gresham Savage Nolan & Tilden, PC Mark Ostoich, Principal Shareholder, 909.890.4499 Jennifer Dorgan, 909.890.4499 Hinderliter de Llamas and Associates www.hdlcompanies.com San Bernardino County Local Agency Formation Commission 909.388.0480 Samuel Martinez, Executive Officer www.sblafco.com County of San Bernardino www.sbcounty.gov/ San Bernardino City Unified School District Facilities/Operations Division, Facilities Management Takara Russ, Use of Facilities Senior Clerk, 909.388.1600 Omnitrans www.omnitrans.org/

Mayor and City CouncilJuly 16, 2025

Mayor and City Council
July 16, 2025