Agenda packet — Upland City Council, June 13, 2022 (part 5 of 8)

Upland City Employees Association (UCEA) 7/1/2022 - 6/30/2023 33 APPENDIX B – Cont’d:

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Upland City Employees Association (UCEA) 7/1/2022 - 6/30/2023 34 APPENDIX B – Cont’d:

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA ESTABLISHING THE

COMPENSATION AND BENEFIT PLAN FOR NON-

REPRESENTED/CONFIDENTIAL EMPLOYEES

WHEREAS, it is the policy of the City of Upland to compensate its employees in a fair and equitable manner for their efficient and faithful service; and

WHEREAS, the City desires to provide consistency between recently negotiated employee agreements, it is necessary to establish the Non- Represented/Confidential employees’ compensation and benefits plan. The compensation and benefits plan will be effective through June 30, 2023.

NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines, and resolves as follows:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council hereby approves the establishment of the Non- Represented/Confidential employees’ compensation and benefits plan, attached hereto, and authorizes the City Manager to execute the compensation and benefits plan.

Section 3. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 4. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. Effective Date. This Resolution shall become effective immediately upon adoption.

PASSED, APPROVED and ADOPTED this 13th day of June, 2022.

Bill Velto, Mayor

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Resolution No.

Page

I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 13th day of June, 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

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THE CITY OF UPLAND

NON-REPRESENTED/CONFIDENTIAL UNIT

COMPENSATION AND BENEFIT PLAN

July 1, 2022 to June 30, 2023

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TABLE OF CONTENTS
ARTICLE 1 - PURPOSE ....................................................................................... 4 ARTICLE 2 - MANAGEMENT RIGHTS ................................................................ 4 ARTICLE 3 - SALARIES ...................................................................................... 5 ARTICLE 4 - RETIREMENT BENEFITS .............................................................. 5 ARTICLE 5 - HEALTH INSURANCE- CAFETERIA PLAN .................................. 7 ARTICLE 6 - RETIREE HEALTH INSURANCE REIMBURSEMENT................... 8 ARTICLE 7 - RETIREE HEALTH SAVINGS ACCOUNTS ................................... 9 ARTICLE 8 - LIFE INSURANCE ........................................................................ 10 ARTICLE 9 - LONG TERM DISABILITY INSURANCE ...................................... 10 ARTICLE 10 - DEFERRED COMPENSATION .................................................. 10 ARTICLE 11 - TUITION REIMBURSEMENT ..................................................... 11 ARTICLE 12 - LONGEVITY PAY ....................................................................... 11 ARTICLE 13 - PERFORMANCE APPRAISAL PAY .......................................... 11 ARTICLE 14 - MERITORIOUS PAY ................................................................... 12 ARTICLE 15 - BILINGUAL PAY ........................................................................ 12 ARTICLE 16 - PREVENTATIVE HEALTH BENEFIT ......................................... 13 ARTICLE 17 - HOLIDAYS - FLOATING HOLIDAYS ......................................... 13 ARTICLE 18 - EXECUTIVE LEAVE .................................................................. 14 ARTICLE 19 - OVERTIME/COMPENSATORY TIME OFF .............................................. 15 ARTICLE 20 - SICK LEAVE BUYBACK ............................................................ 15 ARTICLE 21 - SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT ...... 16 ARTICLE 22 - VACATION .................................................................................. 17 ARTICLE 23 - VACATION BUYBACK ............................................................... 17 ARTICLE 24 - BEREAVEMENT LEAVE ............................................................ 18 ARTICLE 25 - LAYOFFF PROCEDURE ............................................................ 18 ARTICLE 26 - PREVAILING BENEFITS ............................................................ 23 ARTICLE 27 - SAVINGS CLAUSE .................................................................... 23 Page 248 of 333

ARTICLE 28 -TERM OF AGREEMENT .............................................................. 23

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4 THE CITY OF UPLAND

NON-REPRESENTED/CONFIDENTIAL EMPLOYEES

COMPENSATION AND BENEFIT PLAN

ARTICLE 1 - PURPOSE

Non-represented/confidential employees are not represented by an employee organization.

This compensation and benefit plan document is intended as a comprehensive document to define and describe the amounts of compensation, benefits, hours and other terms and conditions of employment for non -
represented/confidential employees. Additional em ployment terms and conditions may be covered by existing ordinances, resolutions, policies, and practices of the City, as well as the Merit System Rules and Regulations presently in effect.

ARTICLE 2 - MANAGEMENT RIGHTS

The rights of the CITY include, but are not limited to the exclusive right to:

• Determine the mission of its constituent departments, commissions, and boards. • Set standards of service.
• Determine the procedure and standards for employment and promotion. • Direct its employees.
• Relieve its employees from duty because of lack of work or for other lawful reasons. • Maintain efficiency of government operations.
• Determine the methods, means and personnel by which government operations are to be conducted.
• Determine the content of job classifications.
• Take all necessary actions to carry out its mission in emergencies. • Exercise complete control and discretion over its organization and the technology of performing its work.
• To discharge, suspend, demote, reprimand, withhold salary increases or otherwise discipline employees for cause.
• To establish employee performance standards, including, but not limited to, quality and quantity standards and to require compliance.

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5 The City reserves the right to contract out any work it deems necessary in the interest of efficiency, economy, improved work product, or emergency.

ARTICLE 3 - SALARIES

A. Effective the first full pay period following MOU ratification by the City Council:
a. all employees in this unit shall receive a four and one half (4.5%) COLA increase in base salary.

The salary schedule in Exhibit B of the City of Upland Compensation Plan and attached hereto as "Exhibit B."

A one-time lump sum Premium Payment in the amount of forty-five hundred dollars ($4,500) per employee utilizing American Rescue Plan Act (ARPA) funding. The payment will be distributed on a special pay roll as soon as practical after approval by the City Council. The one-time distribution shall not be pensionable.

These payments will be pro-rated based on the number of months employees have been employed with the City during April 1, 2020 , through March 31, 2021.

An employee who was hired after the 15th of the month will not receive credit for working that month for purposes of calculating the pro -rated lump sum payment.

• For Example, an employee hired on May 16, 2020, will receive a payment of $3,750 (10 months times $375).

Employees who have been on an unpaid leave of absence during this time will also have their lump sum payment pro-rated based on the period of unpaid leave of absence.

ARTICLE 4 - RETIREMENT BENEFITS

Pension Reform Act of 2013:

The parties agree that the provisions of AB 340 (The California Pension Reform Act of 2013) went into effect on January 1, 2013. In addition, if there is any other clean up or other retirement legislation which goes into

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6 effect during this MOU and if there are provisions of that legislation which, by law automatically goes into effect, it shall do so. Either party may request to negotiate over the impact of such subsequent legislation.

A. PEPRA Members:

Pursuant to the Act, for "new members" herein referred to as PEPRA (Public Employees' Pension Reform Act) members (as defined by the Act ) who are employees hired after January 1, 2013, they will be hired pursuant to the 2% @ 62 retirement formula.

For PEPRA members (as defined by the Act) who are employees hired after January 1, 2013, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement.

For PEPRA members (as defined by the Act) hired after January 1, 2013, the employee shall pay the higher of the classic member contribution or one half of the total normal cost rate as defined by the Act as their employee retirement contribution.

B. Classic Employees - two groups:
1) Classic Employees hired on or before December 31. 2019, Employees are provided with membership in the California Public Employees Retirement System (CalPERS), 2.5%@ 55 retirement formula. The employee will pay the eight percent (8%) CalPERS employee/member contribution. Classic Employees hired after January 1, 2020, shall cost share with the City by contributing 1.4% of CalPERS employer contribution in addition to the 8% employee/member contribution.

The City contracts with CalPERS for the Single Highest Year Option and the 1959 Survivor Benefit, 3rd level. There is an employee cost of $2.00 per month for the 1959 Survivor Benefit.

The agreement between the City and CalPERS allows for the buy-back of time served by the employee in the Military as defined under Government Code Section 21024.

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7 ARTICLE 5 - HEALTH INSURANCE - CAFETERIA PLAN

A. Cafeteria Plan - In accordance with "The City of Upland Cafeteria Plan", the city provides a 125 Flexible Benefit Plan ("the Plan"). The regular and intended effect of the Plan, under current law, is to enable employees to receive benefits which may not be subject to either State or Federal income tax.

The details of Plan eligibility and operational requirements are set forth in the Plan documents. Once enrolled in a cafeteria distribution plan, employees will only be permitted to modify the plan on the same basis as changes are permitted in health insurance plans, that is, during open enrollment periods and when the employee's dependent status changes.

1) The City shall make a monthly contribution as set forth below to each eligible member of the unit to be used toward the Section 125 Cafeteria Plan. These funds shall only be used for qualified benefits as provided for in IRC Section 125.

2) All employees must enroll in one of the health programs unless they submit to the City proof of comparable health coverage.

3) Employees who fail to complete this requirement will be enrolled in the lowest cost health insurance plan the city offers.

4) Employees who meet the requirement shall be allowed to utilize their Section 125 Flexible Benefit Plan contributions for any of the other qualified benefits as provided for in IRC Section 125.

B. City Section 125 Benefit Contribution- The City will make available to each covered employee a monthly amount for benefits, as specified in this compensation and benefits plan .

1) Employees hired prior to March 1, 2016, will receive the maximum benefits contribution allocation:
a. Effective January 1, 2023 - $1,400

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8 2) Employees hired on or after March 1, 2016, will receive the following contributions to the plan effective January 1, 2023, and thereafter.

• Employee Only 100% of the amount to
cover the lowest cost
plans for health, dental,
vision (Kaiser HSA
excluded)

• Employee plus one 100% of the amount to
cover the lowest cost
plans for health, dental,
vision (Kaiser HSA
excluded)

• Family The maximum benefit of
$1,400

The employee must pay the difference between the City's contribution and the actual premium of the plan selected, if any. The City reserves the right to change medical carriers during the open enrollment period.

Employees may transfer unused Cafeteria Plan funds to the Deferred Compensation 457 Plan. No cash-in-lieu will be allowed effective January 1, 2020.

ARTICLE 6 - RETIREE HEALTH INSURANCE REIMBURSEMENT

A. The City shall contribute monthly on behalf of each retiree the amount set forth in the table below. An additional $45 per month allowance is provided for spouse if the spouse is covered under the retiree's insurance.

B. To be eligible for the retiree medical payments herein, an employee must retire from the City and purchase retiree medical insurance within 120 days from separation.

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9 The provisions of this article above shall only apply to employees hired on or before December 31, 2015. To be eligible for the retiree medical payments herein, an employee must retire from the City and purchase retiree medical insurance within 120 days from separation.

ARTICLE 7 - RETIREE HEALTH SAVINGS ACCOUNTS

Retirement Health Savings (RHS) accounts will be established through ICMA which will be payable to the employee only upon service or disability retirement with the City of Upland. City contributions to the RHS accounts will be based upon years of service in accordance with the following schedule:

Years of Service Monthly City Contribution Yearly City
Contribution
5 to 9.99 $12.50 $150.00
10 to 14.99 $25.00 $300.00
15 to 19.99 $50.00 $600.00
20 to 24.99 $75.00 $900.00
25+ $100.00 $1,200.00

YEARS OF

SERVICE
City’s Monthly
Payment -
Retirees in PERS
Medical

RETIREE ONLY
City’s Monthly
Payment -Retirees in
PERS Medical

RETIREE PLUS
SPOUSE

City’s Monthly
Reimbursement-
Retirees in other
than PERS
Medical

10-14 years of
service
PERS statutory
minimum
PERS statutory
minimum
$72.57
15-19 years of
service
PERS statutory
minimum
$141.81 per month $96.81
20-24 years of
service
PERS statutory
minimum
$166.05 per month $121.05
25 + years of
service
$145.14 per
month
$190.14 per month $145.14

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10 ARTICLE 8 - LIFE INSURANCE

The City provides employees in this unit with group life insurance in an amount equal to one times (1x) their annual salary.

ARTICLE 9 - LONG TERM DISABILITY INSURANCE

The City assumes the full premium cost for the employee in the City designated long-term disability program. This benefit will pay 66 2/3% of base salary to a maximum of $5000 per month after 60 days (or use of all sick leave, whichever is later) to qualified members of this unit.

ARTICLE 10 - DEFERRED COMPENSATION

The City will contribute eight percent (8%) of base monthly salary to the City's deferred compensation plan on behalf of employees in the following classifications:
• Accounting Supervisor
• City Clerk
• Executive Assistant to the City Manager
• Finance Officer
• Human Resources Analyst
• Human Resources/Risk Manager
• Senior Human Resources Analyst
This amount may also be used toward the employee's cafeteria options as defined in Article 7, Health Insurance - Cafeteria Plan.

The City will contribute two hundred dollars ($200) a month to the City’s deferred compensation plan on behalf of employees in the following classifications:

• Budget Coordinator
• Executive Assistant I

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11 ARTICLE 11 - TUITION REIMBURSEMENT

The City agrees to reimburse employees up to thirty-five hundred ($3,500) per employee, per fiscal year, as long as funds are available, for costs for tuition and textbooks incurred for job-related education. Such expenditure must enhance the furtherance of the City’s work or continuing educational goals.

Eligibility for reimbursement is contingent upon an approved course or seminar, completed with, where applicable, a grade of “C” or better or “pass” when taken on a pass/fail basis. Approval for reimbursement must be submitted first to the Department Head prior to the employee enrolling in the class or purchasing textbooks and related materials. Upon successful completion of the course(s), the employee must submit a request for reimbursement to Finance Division for processing.

Time spent toward educational, or area development shall not be considered as time actually worked and should not occur during regular work hours.

ARTICLE 12 - LONGEVITY PAY

There are two categories of longevity pay.

A. Longevity Meritorious Pay - Ten Years- Employees with ten (10) years or more of continuous service and who have achieved a minimum of "meets requirements" on the most recent performance evaluation will receive a two percent (2.0%) increase in base salary. An employee who is denied this increase due to the performance evaluation requirement, may follow the grievance procedures as described in the City’s Merit Rules and Regulations.

B. Longevity Pay - Twenty Years - Employees with twenty (20) years or more of continuous service will receive a two- and one -half percent (2.5%) increase in base salary.

These two categories are not mutually exclusive so an employee who meets the requirements of both categories of longevity pay may earn both the 2.0% and the 2.5% concurrently.

ARTICLE 13 - PERFORMANCE APPRAISAL PAY

The Performance Appraisal Pay connects individual achievement to organizational goals

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12 and provides incentives for performance.

Annually employees recommended by their Department head and who have reached top step of their salary grade may be eligible for a up to five percent (5%) lump sum bonus with an overall “Exceeds Standards” on their Employee Performance Appraisal and Development Report. Department head recommendations will be submitted to the City Manager’s Office for review and approval. Recommendations will contain a copy of the employe e’s Performance Appraisal and Development Report.

Payment of the Performance Appraisal Pay will be made in a lump sum payment on the first regularly scheduled payday after approval from the City Manager. This special compensation is considered compensable under the CalPERS guidelines for Classic members.

ARTICLE 14 - MERITORIOUS PAY

It is recognized that certain employees will put forth extraordinary efforts and produce outstanding results for the City. It is desired to reward these individuals. An incentive pay method has been established to encourage all employees to utilize fully their capabilities on behalf of the City. Employees recommended by their department heads and approved by the City Manager may be granted a five percent (5%) increase in salary for a period of three (3) months, six (6) months, or one year. Department head recommendations will be submitted to the City Manager’s Office for review and approval.

Payment of meritorious pay will be made in a lump sum on the first regularly scheduled payday after approval form the City Manager. Recommendations will contain supporting documentation justifying the reasons for the pay.

ARTICLE 15 - BILINGUAL PAY

The City will provide compensation in the amount of one hundred dollars ($100) per month to those employees who as part of their regular duties are required to provide fluency in a second language. The payment for bilingual compensation will be made biweekly in the amount of forty -six dollars and fifteen cents ($46.15) for twenty-six (26) pay periods.

Employees must successfully complete a fluency examination administered by the Human Resources/Risk Management Office.

Bilingual pay will be for employees who speak Spanish or who speak any other language designated by the City Manager as critical to the functions of the City.

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13 If it is determined by the employee’s Department Head that the skill is no longer needed, the Department Head shall notify the Human Resources/Risk Management Office in writing to cease the co mpensation. The compensation will cease the date Human Resources/Risk Management Office receives notification from the Department Head.

ARTICLE 16 - PREVENTATIVE HEALTH BENEFIT

Employees may be reimbursed up to $225 annually for the purchase of items, classes, memberships or programs which contribute to physical fitness. This reimbursement shall be made in June of each year. Items which will be considered acceptable for reimbursement are defined in the City's policy on Preventive Health Benefits.

ARTICLE 17 - HOLIDAYS- FLOATING HOLIDAYS

A. Official Holidays

The City of Upland observes the following holidays as official fixed holidays, established by Resolution:

New Year’s Day (January 1) during holiday closure
Martin Luther King Day (Third Monday in January)
President’s Day (Third Monday in February)
Memorial Day (Last Monday in May)
Independence Day (July 4)
Labor Day (First Monday in September)
Thanksgiving Day (Fourth Thursday in November)
Friday after Thanksgiving Day (The Day After the Fourth Thursday in November) Christmas Day (December 25) during holiday closure

Each official fixed holiday shall be 10 hours unless otherwise noted.

If the holiday falls on a Friday or Saturday, Thursday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday.

In order to be paid for a (the days on which the public offices of the City of

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14 Upland will be closed) employees must be in a paid status both the day before and the day after the holiday. For example, if a holiday falls on a Monday, and the employee was on a 4/10 work schedule with Fridays off, the employee would be required to be in a paid status on the Thursday before the holiday and the Tuesday following the holiday.

City Hall and most City departments will be permanently closed from Christmas Day through New Year’s Day. Christmas Day and New Year’s Day holidays will be part of this closure except for in the case where either holiday falls on a Sunday. In the case that either Christmas Day or New Year’s Day falls on a Sunday, it will be observed on the following Monday. Employees will receive compensation that will cover their absence from work from December 25th through January 1st. The employee must be an active employee of the City of Upland on the above dates to receive this holiday compensation.

Employees that are required to work, due to the nature of their job, during the holiday closure will observe the holidays on the actual day or as provided above when the holiday falls on a Friday, Saturday, or Sunday. Employees required to work during the holiday closure will receive a floating holiday contribution equal to the number of compensable hours provided to the employees that participated in the holiday closure.

B. Floating Holiday Leave

Employees shall receive twenty (20) hours of Floating Holiday annually on January 1st. Floating holiday hours which are not used by the first pay period in December will automatically be cashed out on the second pay period in December.

ARTICLE 18 - EXECUTIVE LEAVE

Employees in the following classifications shall receive sixty (60) hours of executive leave annually on January 1st:

• Accounting Supervisor
• City Clerk
• Executive Assistant to the City Manager
• Finance Officer
• Human Resources Analyst

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15 • Human Resources/Risk Manager
• Senior Human Resources Analyst
Executive Leave which is not used by the first pay period in December will automatically be cashed out on the second pay period in December.

ARTICLE 19 - OVERTIME/COMPENSATORY TIME OFF

Employees in the following classifications are designed as non -exempt position under the Fair Labor Standards Act (FLSA) and are subject to applicable overtime laws:

• Budget Coordinator
• Executive Assistant I

Overtime shall be paid for time worked in excess of the employee’s designated work week at the rate of one and one-half (1 ½) times the basic rate. Paid vacation, sick leave and floating holiday during a work period is counted as hours worked for overtime purposes.

Employees may make a request to the Department Head to have overtime compensation in the form of compensatory time off. In the event of a conflict between the employee and the Department Head, the Department Head’s decision shall prevail.

Employees may not accrue more than 100 hours of compensatory time. Employees who have reached the accrual cap will automatically receive overtime pay until a reduction in the bank of hours to an amount below the maximum accrual is reached.

ARTICLE 20 - SICK LEAVE BUYBACK

Employees earn sick leave at the rate of eight (8) hours per month, up to a maximum accrual of twelve hundred and fifty (1250) hours. No sick leave may be granted during the first thirty (30) days of employment with the City.

Annually, employees may request to convert a maximum of twenty (20) hours of sick leave to compensation if they have used less than forty (40) hours of sick leave between January 1 st and November 30th of the prior calendar year.

Any employee who elects to covert accrued sick leave to compensation as provided for herein shall be limited to a maximum of twenty (20) hours per fiscal year of accrued sick leave to be converted, and in compliance with

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16 the Department of Treasury, Interna l Revenue Service (IRS) Section 1.451 - (a), must comply with the following:

• Any sick leave conversion request must be made in writing using the form provided by Human Resources and must be received by Human Resources no later than December 1 st of the calendar year prior to the end of the calendar year in which the employee wishes to convert such sick leave.
o For example: Employee requests to convert twenty (20) hours of sick leave to compensation, the request must be in Human Resources by December 1, 2022, to be paid on the first pay period in June of 2023.
• All sick leave conversion requests are irrevocable and cannot be changed or amended unless rescinded and received in writing by Human Resources no later than December 1 st of the calendar year prior to the conversion.
• Employees who do not meet the requirement of using less than forty (40) hours of sick leave between January 1 st and November 30th of the prior calendar year will not be eligible for the sick leave conversion.
• Employees who fail to submit a request by December 1 st of the calendar year prior to the conversion will not be eligible for sick leave converted to cash for that calendar year .
• Payments for accrued sick leave conversion to cash shall be made by separate check by the first pay period in June.

ARTICLE 21 - SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT

Upon service or disability retirement under the PERS retirement plan, employees may elect one of the following options for payment of unused sick leave:

a. At the time of service or disability retirement, fifty percent (50%) of accrued sick leave may be cashed out at the current hourly rate, up to a maximum of 625 hours

b. Retiring employees may use fifty percent (50%) of accrued sick leave as Personal Leave just prior to retirement, up to a maximum of 625 hours.

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17 ARTICLE 22 - VACATION

Vacation shall accrue for employees based on the following schedule:

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

ARTICLE 23 - VACATION BUYBACK

In December of every year, employees may be paid in cash for unused vacation if they have used at least forty (40) hours of vacation during the preceding year.

The payment for vacation buyback will be tiered as follows:
• Employees who have less than six (6) years of service with the City, the maximum vacation buyback allowable is sixty (60) hours. • Employees who have six (6) years or more of service with the City, the maximum vacation buyback allowable is one hundred (100) hours.

Employees at this level must have eighty (80) hours of vacation accrual in their bank after the vacation buyback hours are paid. o Example 1: Employee has two hundred (200) hours of vacation accruals and buys back one hundred (100) hours, one hundred (100) hours of vacation will remain in their accrual bank. o Example 2: Employee has one hundre d and twenty (120) hours of vacation accruals. The maximum vacation buyback they will be allowed is forty (40) hours to ensure a bank of eighty (80) hours remains.

Any employee who elects to convert accrued vacation leave to compensation as provided for herein, shall be in compliance with the Department of Treasury, Internal Revenue Service (IRS) Section 1.451 -1(a), must comply with the following:

• Any vacation leave conversion request must be made in writing using 01 – 02 Years of service 80 Hours per year
03 – 05 Years of service 96 Hours per year
06 – 10 Years of service 128 Hours per year
11 – 16 Years of service 136 Hours per year
17 + Years of service One additional day (8 hours) per year, up to a maximum of 176 hours per year

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18 the form provided by Human Resources and must be received by Human Resources no later than December 1 st of the calendar year prior to the end of the calendar year in which the employee wishes to convert such vacation leave.
o For example: Employee requests to buyback twenty (20) hours of vacation leave, the request must be in Human Resources by December 1, 2022, to be paid on the first pay period in June of 2023 or the first pay period in December of 2023.
• All vacation leave conversion requests are irrevocable and cannot be changed or amended unless rescinded and received in writing by Human Resources not later than December 1 st of the calendar year prior to the conversion.
• Employees who do not meet the requirement of using forty (40) hours of vacation leave between January 1st and November 30th of the prior calendar yar will not be eligible for vacation buyback. • Employees who fail to submit a request by December 1st of the calendar year prior to the conversion will not be eligible for vacation leave converted to cash for that calendar year.
• Payments for accrued vacation leave conversion to cash shall be made by separate check by the first pay period in December.

ARTICLE 24 - BEREAVEMENT LEAVE

Employees may take up to 30 hours per occurrence (January 1 through December 31) with pay in the event of a death of the following: mother, father, grandfather, grandmother, brother, sister, spouse, child, grandchild, and employee spouse's father, mother, grandfather, grandmother, brother, sister and any relative who has resided with the employee for at least one year.

Adoptive relatives and step relatives shall count the same as relatives by birth.

Notification of need for such leave must comply with the City's Administrative Policy on Sick Leave.

ARTICLE 25 - LAYOFF PROCEDURE

A. Statement of Intent - Whenever, in the judgment of the City Council, it becomes necessary to abolish any position of employment, the employee holding such position of employment may be laid off or demoted pursuant to the provisions of the City's policy.

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19 1) In determining the order of layoff, a combination of factors shall be considered, including qualifications, productivity, general performance, seniority with the City of Upland, and seniority in job classification, and needs of the City. Variations from the order of layoffs and recall from layoff may occur when the City deems such variations appropriate under fiscal circumstances.

2) The factors the City Manager or designee, in his/her discretion, may use to determine layoff include the following:
a. An employee's last four performance evaluations, if any; b. Any history of employee commendations, awards, etc.; c. Any history of employee disciplinary action;
d. Attendance record, including tardiness and unexcused absences; e. Safety record, including personal injury and damage to city property; f. Probationary and temporary employees shall be laid off before a regular employee in the same classification;
g. Between two regular appointees in the same classification with similar skills, abilities, qualifications, merit and/or record, the employee with the lesser seniority in the classification shall be laid off first;
h. Between two regular appointees in the same classification with equal seniority the employee with the lesser skills, abilities, qualifications, merit and/or record shall be laid off first; i. Memoranda of Understanding (“MOU”) between the City and effected bargaining units.

B. Definitions

1) Layoff - A layoff is the involuntary separation or reduction of a regular status employee to a position in a lower classification, without fault of the employee.

Cause for Layoff:
a. If a function is to be discontinued, curtailed, mechanized, or operated by a different method.
b. Reorganization
c. Budget reduction
d. Termination or decrease in funds and/or materials for projects or programs.

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20 e. The mandatory reinstatement of an employee.

2) Classification - A list of classifications within the Non- Represented/Confidential unit is included in "Exhibit B."

3) Job Series -A group of classifications similar with respect to the duties performed but different in terms of the nature and level of responsibilities performed. Each job series shall be included in "Attachment B."

4) Seniority-Seniority for the purpose of determining order of layoff shall be defined as total accumulated continuous time served in regular and probationary status in the City classified service. Regular and probationary status does not include seasonal/temporary part-time, contract, and/or provisional employees.

Should it become necessary to lay off by seniority, those employees with the least service in the affected classification shall be laid off or demoted:
a. First by classification; and

b. Second, to displace an employee, by City Seniority, including time served on military leave of absence in the armed forces of the United States. In order to bump into a former or lower classification:

1. An employee must have more City Seniority than at least one of the incumbents in the affected class.

2. Employees bumping to a lower class shall be placed at the salary step representing the least loss of pay. In no case shall the salary be increased above that received in the class from which the employee was laid off. When two or more employees have equal seniority, the layoff shall be made in accordance with Merit Rules and Regulations.

C. Notification - Employees to be laid off shall be given, whenever possible, 45 calendar days prior notice, but no less than 30 calendar days' notice.

D. Order of Layoff - In each classification, employees shall be laid off according to employment status in the following order:
1) Seasonal/temporary part-time, contract, and/or provisional employees

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21 performing services similar to classifications affected by layoff shall be terminated before any reduction in the regular work force. Likewise, other grant-funded employees shall be terminated in affected classifications, in accordance with federal or state rules or guidelines governing such funding programs.

2) Probationary employees and employees holding interim positions, who have regular status in another classification, shall revert to their former classification in the City to determine layoff rights.

3) Regular employees subject to layoff shall be based on seniority of service within that classification. For example, the employee being laid off or displaced from a classification shall be the employee in the affected classification with the least amount of time served in the affected classification.

E. Layoff Procedure - The layoff procedure is intended to minimize the impact of staff reduction on City services and ensure that employees are treated fairly in the process of layoff. The procedure for lay off, once the number of positions to remain by classification has been determined shall be as follows:
1) Except as otherwise provided herein, whenever there is a reduction in the work force, the appointing authority shall demote the affected employee to a vacancy, if any, in a lower class for which the employee is qualified. All persons so demoted shall have their names placed on the reemployment list for the higher class.
2) An employee affected by layoff shall have the right to displace an employee who has less City seniority in a lower classification in which the affected employee once had regular status.
3) If a classification title is changed due to a reclassification; the employee shall retain bumping rights to the previous classification and series. 4) Displaced employees are allowed to bump into positions that they have not previously held, provided that the position did not exist when the employee was appointed to the position from which they are laid off and the employee meets the minimum qualifications.
5) An employee is eligible to bump to a lower classification within job series in which he/she has achieved regular status. For example: Employee "A"

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22 is hired as a Senior Human Resources Analyst and achieves regular status; however, never worked as an Human Resources Analyst.

Employee "A" may bump employee "B" in the lower classification of Human Resources Analyst if Employee "A" has more City seniority than employee “B”.
6) Employees transferring or voluntarily demoting shall retain the same anniversary date as in their previous position for all purposes, including step advancement.

F. Reemployment Lists -The names of persons laid off or demoted in accordance with these rules shall be entered upon a reemployment list.

Lists from different departments or at different times for the same class of position shall be combined into a single list. Such list shall be used by the appointing authority when a vacancy arises in the same or lower class of position before employment is made from an eligible list.

G. Duration of Reemployment List - Names of persons laid off shall be carried on a reemployment list for twelve (12) months, ex cept that the name of an individual reappointed to a regular position of the same class shall, upon reappointment, be dropped from the list. An individual who declines either a voluntary demotion or reemployment in a classification shall be dropped from that specific reemployment list. Persons reemployed in a lower class, or on a temporary basis, shall be continued on the list for the higher class for a balance of the twelve (12)-month period. An individual appointed from a reemployment list may be required to successfully pass a reemployment physical examination provided at City expense.

H. Terms and Conditions of Reemployment- Reemployment from a reemployment list to a previously held class shall be at the same step held at the time of layoff and at the current salary of that class at the time of reemployment. In case of a voluntary demotion from a reemployment list, the employee so electing shall be paid at the highest step in the range for the lower class which does not represent an increase in salary from the salary which would have been effective had the employee been appointed to his/her previously held class; and in no case to exceed "top" step in the current salary range of the class to which the employee is appointed.

Employees reappointed from a reemployment list shall be credited with, at the time of reappointment, all accrued benefits at the time of layoff which were not compensated for at the time of layoff, provided that such accrued

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23 benefits shall not exceed established maximum at the time of reappointment.

I. Retraining- The City will make reasonable efforts to provide retraining opportunities to laid-off employees that will qualify them in classifications not related to their former classification and will attempt to place said laid-off employees in vacant positions in the City for which they are qualified. During the twelve months following a layoff, laid-off employees shall be eligible to compete for in-house promotional examinations for positions for which they qualify.

ARTICLE 26 - PREVAILING BENEFITS

Except as provided herein, all wages, hours and other terms and conditions of employment presently enjoyed by employees shall remain in full force and effect during the term of this Compensation and Benefit Plan.

ARTICLE 27 - SAVINGS CLAUSE

Should any provision of this agreement or the application of such provision be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the City shall immediately provide an equivalent benefit to that which was determined to be unlawful. Such equivalent benefit will be implemented retroactive to the date the old benefit ceased. The remaining parts or portions of the Compensation and Benefits Plan shall remain in full force and effect.

ARTICLE 28 - TERM OF AGREEMENT

The provisions of this Compensation and Benefits Plan shall become effective on July 1, 2022.

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24 APPENDIX A

Classes included in the Non-Represented/Confidential Unit:

Grade Classification Title
57 ACCOUNTING SUPERVISOR
43 BUDGET COORDINATOR
60 CITY CLERK
38 EXECUTIVE ASSISTANT I
45 EXECUTIVE ASSISTANT TO THE CITY MANAGER
62 FINANCE OFFICER
44 HUMAN RESOURCES ANALYST
62 HUMAN RESOURCES/RISK MANAGER
53 SENIOR HUMAN RESOURCES ANALYST

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25 APPENDIX B

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THE CITY OF UPLAND

NON-REPRESENTED/CONFIDENTIAL UNIT

COMPENSATION AND BENEFIT PLAN

July 1, 2022 to June 30, 2023

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ARTICLE 28 -TERM OF AGREEMENT .............................................................. 23

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4 THE CITY OF UPLAND

NON-REPRESENTED/CONFIDENTIAL EMPLOYEES

COMPENSATION AND BENEFIT PLAN

ARTICLE 1 - PURPOSE

Non-represented/confidential employees are not represented by an employee organization.

This compensation and benefit plan document is intended as a comprehensive document to define and describe the amounts of compensation, benefits, hours and other terms and conditions of employment for non -
represented/confidential employees. Additional employment terms and conditions may be covered by existing ordinances, resolutions, policies, and practices of the City, as well as the Merit System Rules and Regulations presently in effect.

ARTICLE 2 - MANAGEMENT RIGHTS

The rights of the CITY include, but are not limited to the exclusive right to:

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5 The City reserves the right to contract out any work it deems necessary in the interest of efficiency, economy, improved work product, or emergency.

ARTICLE 3 - SALARIES

A. Effective the first full pay period following MOU ratification by the City Council:
a. all employees in this unit shall receive a four and one half (4.5%) COLA increase in base salary.

The salary schedule in Exhibit B of the City of Upland Compensation Plan and attached hereto as "Exhibit B."

These payments will be pro-rated based on the number of months employees have been employed with the City during April 1, 2020 , through March 31, 2021.

An employee who was hired after the 15th of the month will not receive credit for working that month for purposes of calculating the pro -rated lump sum payment.

• For Example, an employee hired on May 16, 2020, will receive a payment of $3,750 (10 months times $375).

Employees who have been on an unpaid leave of absence during this time will also have their lump sum payment pro-rated based on the period of unpaid leave of absence.

ARTICLE 4 - RETIREMENT BENEFITS

Pension Reform Act of 2013:

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A. PEPRA Members:

The City contracts with CalPERS for the Single Highest Year Option and the 1959 Survivor Benefit, 3rd level. There is an employee cost of $2.00 per month for the 1959 Survivor Benefit.

The agreement between the City and CalPERS allows for the buy-back of time served by the employee in the Military as defined under Government Code Section 21024.

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7 ARTICLE 5 - HEALTH INSURANCE - CAFETERIA PLAN

2) All employees must enroll in one of the health programs unless they submit to the City proof of comparable health coverage.

3) Employees who fail to complete this requirement will be enrolled in the lowest cost health insurance plan the city offers.

4) Employees who meet the requirement shall be allowed to utilize their Section 125 Flexible Benefit Plan contributions for any of the other qualified benefits as provided for in IRC Section 125.

B. City Section 125 Benefit Contribution- The City will make available to each covered employee a monthly amount for benefits, as specified in this compensation and benefits plan .

1) Employees hired prior to March 1, 2016, will receive the maximum benefits contribution allocation:
a. Effective January 1, 2023 - $1,400

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8 2) Employees hired on or after March 1, 2016, will receive the following contributions to the plan effective January 1, 2023, and thereafter.

• Employee Only 100% of the amount to
cover the lowest cost
plans for health, dental,
vision (Kaiser HSA
excluded)

• Employee plus one 100% of the amount to
cover the lowest cost
plans for health, dental,
vision (Kaiser HSA
excluded)

• Family The maximum benefit of
$1,400

Employees may transfer unused Cafeteria Plan funds to the Deferred Compensation 457 Plan. No cash-in-lieu will be allowed effective January 1, 2020.

ARTICLE 6 - RETIREE HEALTH INSURANCE REIMBURSEMENT

B. To be eligible for the retiree medical payments herein, an employee must retire from the City and purchase retiree medical insurance within 120 days from separation.

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ARTICLE 7 - RETIREE HEALTH SAVINGS ACCOUNTS

Years of Service Monthly City Contribution Yearly City
Contribution
5 to 9.99 $12.50 $150.00
10 to 14.99 $25.00 $300.00
15 to 19.99 $50.00 $600.00
20 to 24.99 $75.00 $900.00
25+ $100.00 $1,200.00

YEARS OF

SERVICE
City’s Monthly
Payment -
Retirees in PERS
Medical

RETIREE ONLY
City’s Monthly
Payment -Retirees in
PERS Medical

RETIREE PLUS
SPOUSE

City’s Monthly
Reimbursement-
Retirees in other
than PERS
Medical

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10 ARTICLE 8 - LIFE INSURANCE

The City provides employees in this unit with group life insurance in an amount equal to one times (1x) their annual salary.

ARTICLE 9 - LONG TERM DISABILITY INSURANCE

ARTICLE 10 - DEFERRED COMPENSATION

The City will contribute two hundred dollars ($200) a month to the City’s deferred compensation plan on behalf of employees in the following classifications:

• Budget Coordinator
• Executive Assistant I

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11 ARTICLE 11 - TUITION REIMBURSEMENT

Time spent toward educational, or area development shall not be considered as time actually worked and should not occur during regular work hours.

ARTICLE 12 - LONGEVITY PAY

There are two categories of longevity pay.

B. Longevity Pay - Twenty Years - Employees with twenty (20) years or more of continuous service will receive a two- and one -half percent (2.5%) increase in base salary.

These two categories are not mutually exclusive so an employee who meets the requirements of both categories of longevity pay may earn both the 2.0% and the 2.5% concurrently.

ARTICLE 13 - PERFORMANCE APPRAISAL PAY

The Performance Appraisal Pay connects individual achievement to organizational goals

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12 and provides incentives for performance.

Annually employees recommended by their Department head and who have reached top step of their salary grade may be eligible for a up to five percent (5%) lump sum bonus with an overall “Exceeds Standards” on their Employee Performance Appraisal and Development Report. Department head recommendations will be submitted to the City Manager’s Office for review and approval. Recommendations will contain a copy of the employee’s Performance Appraisal and Development Report.

ARTICLE 14 - MERITORIOUS PAY

ARTICLE 15 - BILINGUAL PAY

Employees must successfully complete a fluency examination administered by the Human Resources/Risk Management Office.

Bilingual pay will be for employees who speak Spanish or who speak any other language designated by the City Manager as critical to the function s of the City.

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13 If it is determined by the employee’s Department Head that the skill is no longer needed, the Department Head shall notify the Human Resources/Risk Management Office in writing to cease the compensation. The compensation will cease the date Human Resources/Risk Management Office receives notification from the Department Head.

ARTICLE 16 - PREVENTATIVE HEALTH BENEFIT

ARTICLE 17 - HOLIDAYS- FLOATING HOLIDAYS

A. Official Holidays

The City of Upland observes the following holidays as official fixed holidays, established by Resolution:

Each official fixed holiday shall be 10 hours unless otherwise noted.

If the holiday falls on a Friday or Saturday, Thursday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday.

In order to be paid for a (the days on which the public offices of the City of

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B. Floating Holiday Leave

ARTICLE 18 - EXECUTIVE LEAVE

Employees in the following classifications shall receive sixty (60) hours of executive leave annually effective January 1:

• Accounting Supervisor
• City Clerk
• Executive Assistant to the City Manager
• Finance Officer
• Human Resources Analyst

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ARTICLE 19 - OVERTIME/COMPENSATORY TIME OFF

Employees in the following classifications are designed as non -exempt position under the Fair Labor Standards Act (FLSA) and are subject to applicable overtime laws:

• Budget Coordinator
• Executive Assistant I

ARTICLE 20 - SICK LEAVE BUYBACK

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16 the Department of Treasury, Internal Revenue Service (IRS) Se ction 1.451- (a), must comply with the following:

• Any sick leave conversion request must be made in writing using the form provided by Human Resources and must be received by Human Resources no later than December 1 st of the calendar year prior to the end of the calendar year in which the employee wishes to convert such sick leave.
o For example: Employee requests to convert twenty (20) hours of sick leave to compensation, the request must be in Human Resources by December 1, 2022, to be paid on the first pay period in June of 2023.
• All sick leave conversion requests are irrevocable and cannot be changed or amended unless rescinded and received in writing by Human Resources no later than December 1 st of the calendar year prior to the conversion.
• Employees who do not meet the requirement of using less than forty (40) hours of sick leave between January 1 st and November 30th of the prior calendar year will not be eligible for the sick leave conversion.
• Employees who fail to submit a request by Decem ber 1st of the calendar year prior to the conversion will not be eligible for sick leave converted to cash for that calendar year.
• Payments for accrued sick leave conversion to cash shall be made by separate check by the first pay period in June.

ARTICLE 21 - SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT

Upon service or disability retirement under the PERS retirement plan, employees may elect one of the following options for payment of unused sick leave:

a. At the time of service or disability retirement, fifty percent (50%) of accrued sick leave may be cashed out at the current hourly rate, up to a maximum of 625 hours

b. Retiring employees may use fifty percent (50%) of accrued sick leave as Personal Leave just prior to retirement, up to a maximum of 625 hours.

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17 ARTICLE 22 - VACATION

Vacation shall accrue for employees based on the following schedule:

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

ARTICLE 23 - VACATION BUYBACK

In December of every year, employees may be paid in cash for unused vacation if they have used at least forty (40) hours of vacation during the preceding year.

Employees at this level must have eighty (80) hours of vacation accrual in their bank after the vacation buyback hours are paid. o Example 1: Employee has two hundred (200) hours of vacation accruals and buys back one hundred (100) hours, one hundred (100) hours of vacation will remain in their accrual bank. o Example 2: Employee has one hundred and twenty (120) hours of vacation accruals. The maximum vacation buyback they will be allowed is forty (40) hours to ensure a bank of eighty (80) hours remains.

Any employee who elects to convert accrued vacation leave to compensation as provided for herein, shall be in compliance with the Department o f Treasury, Internal Revenue Service (IRS) Section 1.451 -1(a), must comply with the following:

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18 the form provided by Human Resources and must be received by Human Resources no later than December 1st of the calendar year prior to the end of the calendar year in which the employee wishes to convert such vacation leave.
o For example: Employee requests to buyback twenty (20) hours of vacation leave, the request must be in Human Resources by December 1, 2022, to be paid on the first pay period in June of 2023 or the first pay period in December of 2023.
• All vacation leave conversion requests are irrevocable and cannot be changed or amended unless rescinded and received in writing by Human Resources not later than December 1 st of the calendar year prior to the conversion.
• Employees who do not meet the requirement of using forty (40) hours of vacation leave between January 1st and November 30th of the prior calendar yar will not be eligible for vacation buyback. • Employees who fail to submit a request by December 1st of the calendar year prior to the conversion will not be eligib le for vacation leave converted to cash for that calendar year.
• Payments for accrued vacation leave conversion to cash shall be made by separate check by the first pay period in December.

ARTICLE 24 - BEREAVEMENT LEAVE

Adoptive relatives and step relatives shall count the same as relatives by birth.

Notification of need for such leave must comply with the City's Administrative Policy on Sick Leave.

ARTICLE 25 - LAYOFF PROCEDURE

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B. Definitions

1) Layoff - A layoff is the involuntary separation or reduction of a regular status employee to a position in a lower classification, without fault of the employee.

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20 e. The mandatory reinstatement of an employee.

2) Classification - A list of classifications within the Non- Represented/Confidential unit is included in "Exhibit B."

Should it become necessary to lay off by seniority, those employees with the least service in the affected classification shall be laid off or demoted:
a. First by classification; and

1. An employee must have more City Seniority than at least one of the incumbents in the affected class.

C. Notification - Employees to be laid off shall be given, whenever possible, 45 calendar days prior notice, but no less than 30 calendar days' notice.

D. Order of Layoff - In each classification, employees shall be laid off according to employment status in the following order:
1) Seasonal/temporary part-time, contract, and/or provisional employees

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22 is hired as a Senior Human Resources Analyst and achieves regular status; however, never worked as an Human Resources Analyst.

F. Reemployment Lists -The names of persons laid off or demoted in accordance with these rules shall be entered upon a reemployment list.

Lists from different departments or at differen t times for the same class of position shall be combined into a single list. Such list shall be used by the appointing authority when a vacancy arises in the same or lower class of position before employment is made from an eligible list.

G. Duration of Reemployment List - Names of persons laid off shall be carried on a reemployment list for twelve (12) months, except that the name of an individual reappointed to a regular position of the same class shall, upon reappointment, be dropped from the list. An individual who declines either a voluntary demotion or reemployment in a classification shall be dropped from that specific reemployment list. Persons reemployed in a lower class, or on a temporary basis, shall be continued on the list for the higher class for a balance of the twelve (12)-month period. An individual appointed from a reemployment list may be required to successfully pass a reemployment physical examination provided at City expense.

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23 benefits shall not exceed established maximum at the time of reappointment.

ARTICLE 26 - PREVAILING BENEFITS

ARTICLE 27 - SAVINGS CLAUSE

ARTICLE 28 - TERM OF AGREEMENT

The provisions of this Compensation and Benefits Plan shall become effective on July 1, 2022.

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24 APPENDIX A

Classes included in the Non-Represented/Confidential Unit:

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25 APPENDIX B

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA AMENDING THE COMPENSATION

AND BENEFIT PLAN FOR EXECUTIVE EMPLOYEES

WHEREAS, it is the policy of the City of Upland to compensate its employees in a fair and equitable manner for their efficient and faithful service; and

WHEREAS, the City desires to provide consistency between recently negotiated employee agreements, it is necessary to emend the Executive employees’ compensation and benefits plan. The amendment to the compensation and benefits plan will be effective through June 30, 2023.

NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines, and resolves as follows:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council hereby approves the amendment of the Executive employees’ compensation and benefits plan, attached hereto, and authorizes the City Manager to execute the compensation and benefits plan.

Section 4. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. Effective Date. This Resolution shall become effective immediately upon adoption.

PASSED, APPROVED and ADOPTED this 13th day of June, 2022.

Bill Velto, Mayor

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Resolution No.

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AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

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THE CITY OF UPLAND

EXECUTIVE MANAGEMENT

COMPENSATION AND BENEFIT PLAN

Updated July 1, 2022

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TABLE OF CONTENTS
ARTICLE 1 – PURPOSE ................................................................................................. 1 ARTICLE 2 – MANAGEMENT RIGHTS .................................................................... 1 ARTICLE 3 – COMPENSATION .................................................................................. 2 ARTICLE 4 - RETIREMENT BENEFITS .................................................................... 3 ARTICLE 5 – HEALTH INSURANCE – CAFETERIA PLAN .................................. 4 ARTICLE 6 – RETIREE HEALTH INSURANCE REIMBURSEMENT ................. 4 ARTICLE 7 – LIFE INSURANCE ................................................................................. 4 ARTICLE 8 – LONG TERM DISABILITY INSURANCE ......................................... 5 ARTICLE 9 – 401(a) AND DEFERRED COMPENSATION ...................................... 5 ARTICLE 10 – LONGEVITY PAY ................................................................................ 5 ARTICLE 11 – PREVENTATIVE HEALTH BENEFIT ............................................. 5 ARTICLE 12 – UNIFORM ALLOWANCE .................................................................. 5 ARTICLE 13 – VEHICLE ALLOWANCE ................................................................... 5 ARTICLE 14 - CELL PHONE ALLOWANCE ............................................................ 6 ARTICLE 15 – HOLIDAYS ............................................................................................ 6 ARTICLE 16 – FLOATING HOLIDAYS ...................................................................... 7 ARTICLE 17 – EXECUTIVE LEAVE ........................................................................... 7 ARTICLE 18 – SICK LEAVE ......................................................................................... 7 ARTICLE 19 – SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT ...... 7 ARTICLE 20 – VACATION ........................................................................................... 8 ARTICLE 21 – VACATION BUYBACK....................................................................... 8 ARTICLE 22 – BEREAVEMENT LEAVE ................................................................... 8

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Upland Executive Management Compensation and Benefit Plan 1 THE CITY OF UPLAND

EXECUTIVE MANAGEMENT EMPLOYEES

Compensation and Benefit Plan

ARTICLE 1 – PURPOSE

Executive Management employees are not represented by an employee organization. The Executive Management positions serve at the will and pleasure of the City Manager.

This compensation and benefit plan document is intended as a comprehensive document to define and describe the amounts of compensation and benefits for Executive Management Employees. However, the terms and conditions of employment for the Executive Management Employees may also be addressed in individual employment contracts. If an individual’s employment contract agreement conflicts with this document, then the provision of the agreement will supersede the provisions of this document.

ARTICLE 2 – MANAGEMENT RIGHTS

The rights of the CITY include, but are not limited to the exclusive right to:

Determine the mission of its constituent departments, commissions and boards; Set standards of service; Determine the procedure and standards for employment and promotion; Direct its employees; Relieve its employees from duty because of lack of work or for other lawful reasons; Maintain efficiency of government operations; Determine the methods, means and personnel by which government operations are to be conducted; Determine the content of job classifications; Take all necessary actions to carry out its mission in emergencies; Exercise complete control and discretion over its organization and the technology of performing its work; To discharge, suspend, demote, reprimand, withhold salary increases or otherwise discipline employees for cause; To establish employee performance standards, including, but not limited to, quality and quantity standards and to require compliance.

The City reserves the right to contract out any work it deems necessary in the interest of efficiency, economy, improved work product, or emergency.

Notwithstanding anything to the contrary in this section, in any other provision of this chapter of the Upland Municipal Code, or in any other presently existing ordinance, resolution, agreement, rule, policy, practice or other city enactment of any type or nature, all present and future department heads shall be deemed and are designated as at -will employees who each serve at the pleasure of the City Manager, and accordingly the City Manager may reduce the salary of, suspend, demote or discharge any department head,

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Upland Executive Management Compensation and Benefit Plan 2 without prior notice and without cause. No department head shall have any administrative right of due process in connection with any reduction in salary, suspension, demotion or discharge, and no department head shall have any right of appeal to the board of review or the city council. The City Manager’s decision as regards the employment status of a department head shall be final and absolute. No department head shall have the right or authority to undertake any of the rights or powers specified in Upland Municipal Code Sections 2.36.140, 2.36.150, 2.36.160 and 2.36.170. (Ord. 1790 § 2, 2005; prior code § 2350.13)

ARTICLE 3 – COMPENSATION

1. The Executive Management Salary Range Table (Appendix B) is established to provide the minimum and maximum monthly salary levels for Executive Management positions.

2. The City Manager is responsible for determination of each individual employee’s salary rate within the assigned salary range. Such determination will be based on job performance and or other competitive and economic factors.

a. Effective June 26, 2022, all employees in this unit shall receive a four- and one-half percent (4.5%) COLA increase in base salary.

b. A one-time lump sum Premium Payment in the amount of forty-five hundred dollars ($4,500) per employee utilizing American Rescue Plan Act (ARPA) funding. The payments will be distributed on a special payroll as soon as practical after approval of the Compensation and Benefits Plan by the City Council. The one-time distribution shall not be pensionable.

c. These payments will be pro-rated based on the number of months employees have been employed with the City during April 1, 2020, through March 31, 2021. An employee who was hired after the 15th of the month will not receive credit for working that month for purposes of calculating the pro-rated lump sum.

• For example, an employee hired on May 16, 2020, will receive a payment of $3,750 (10 months times $375).

Employees who have been on an unpaid leave of absence during this time will also have their lump sum payment pro-rated based on the period of unpaid leave of absence.

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Upland Executive Management Compensation and Benefit Plan 3 ARTICLE 4 - RETIREMENT BENEFITS

The City of Upland provides its Executive Management Employees with membership in the California Public Employees Retirement System (CalPERS):

Non-Safety: 2.5% @ 55 retirement formula; The City pays 7% of the 8% employee contribution and the employee pays the
remaining 1%. In addition, the employee pays 2.4% of salary (pre-tax) towards the employer contribution rate.

Currently the non-safety executive 8% of the employee share of PERS and the City will pick up the 2.4% employer’s cost sharing contribution. Classic Employees hired after January 1, 2020, shall cost share with the City by contributing 1.4% of CalPERS employer contribution in addition to the 8%
employee contribution.

Police Chief: 3% @ 55 retirement formula; The City pays 9% of salary (pre-tax), and the employee pays 5.8% towards the Employer Contribution rate. Effective July 1, 2013, the employee will pay 9% towards the employee contribution and the City will pick up the 5.8% employer’s cost sharing contribution.

The City contracts with CalPERS for the Single Highest Year Option for all employees who are not defined as “new members” pursuant to the Pension Reform Act of 2013 and the 1959 Survivor Benefit, 3rd level for all members of the bargaining unit. There is an employee cost of $2.00 per month for the 1959 Survivor Benefit.

The agreement between the City and CalPERS allows for the buy-back of time served by the employee in the Military as defined under Government Code Section 21024.

Pension Reform Act of 2013:

1) The parties agree that the provisions of AB 340 (The California Pension Reform Act of 2013) went into effect on January 1, 2013. In addition, if there is any other clean up or other retirement legislation which goes into effect during this compensation and benefit plan and if there are provisions of that legislation which, by law automatically goes into effect, it shall do so.

2) Two Tier Retirement: Pursuant to the Act, for “new members” (as defined by the Act) who are employees hired after January 1, 2013, they will be hired pursuant to the 2% @ 62 retirement formula (non-safety) and 2.7% @

55. For “new members” (as defined by the Act) who are employees hired after January 1, 2013, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date

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Upland Executive Management Compensation and Benefit Plan 4 of his or her retirement.

ARTICLE 5 – HEALTH INSURANCE – CAFETERIA PLAN

Effective January 1, 2023, employees will receive fourteen hundred dollars ($1,400) per month for the purchase of health insurance benefits through the City’s Cafeteria Plan. The health insurance options under the City’s Cafeteria Plan include medical insurance, dental insurance, and vision insurance. Employees may also contribute any remaining Cafeteria Plan Funds to the City’s deferred compensation plan.

An employee may elect not to be covered by the City’s Health Insurance if an employee provides proof of health insurance coverage from another source. The City may require proof of alternative coverage at any time.

ARTICLE 6 – RETIREE HEALTH INSURANCE REIMBURSEMENT

The City will provide retiree medical insurance reimbursement in accordance with the following schedule for employees who have health insurance and are paying a premium which exceeds these amounts. An additional $45 per month allowance is provided for a spouse if the spouse is covered under the employee’s insurance. Retirees who are participating in one of the City’s health insurance plans will have the PERS administrative fee deducted from their reimbursement. This benefit was eliminated for employees hired after October 1, 2014.

10 - 14 years of service $ 72.57 per month
15 - 19 years of service $ 96.81 per month
20 - 24 years of service $121.05 per month
25 + years of service $145.14 per month

ARTICLE 7 – LIFE INSURANCE

The City provides employees with group life insurance in an amount equal to one times (1x) their annual salary.

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Upland Executive Management Compensation and Benefit Plan 5 ARTICLE 8– LONG TERM DISABILITY INSURANCE

The City assumes the full premium cost for the employee in the City designated long- term disability program. This benefit will pay 66 2/3% of base salary to a maximum of $5000 per month after 60 days (or use of all sick leave, whichever is later) to qualified members of this unit.

ARTICLE 9 – 401 (a) AND DEFERRED COMPENSATION PLANS

Effective July 1, 2022, the City will contribute nine percent (9%) of base monthly salary to the City’s 401(a) plan on behalf of each employee.

Employees may contribute to the City’s 457 (b) (deferred comp) up to the yearly maximum limit as defined by IRS guidelines.

ARTICLE 10 – LONGEVITY PAY

Employees with twenty (20) years or more of continuous service will receive a two- and one-half percent (2.5%) increase in base salary.

ARTICLE 11 – PREVENTATIVE HEALTH BENEFIT

Employees may be reimbursed up to $225 annually for the purchase of items, classes, memberships, or programs which contribute to physical fitness. This reimbursement shall be made in June of each year. Items which will be considered acceptable for reimbursement are defined in the City’s policy on Preventive Health Benefits.

ARTICLE 12 – UNIFORM ALLOWANCE

The Police Chief shall receive an allowance in the amount of one thousand dollars ($1,000.00) per year after completion of 12 months of employment. A uniform will be provided at time of appointment.

The purpose of the allowance is to provide uniform cleaning or replacement expenses.

Effective, July 1, 2023, this allowance will be paid per pay period in the amount of thirty- eight dollars and forty-six cents ($38.46).

ARTICLE 13 – VEHICLE ALLOWANCE

The Police Chief shall receive a City vehicle to take home. All other executive management employees receive $350.00/month.

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Upland Executive Management Compensation and Benefit Plan 6 ARTICLE 14 – CELL PHONE ALLOWANCE

Employees shall be entitled to a cell phone allowance in the amount of one hundred dollars ($100) per month or the use of a City-issued cell phone. If the employee chooses the cell phone allowance the amount shall be subject to applicable withholdings. Employee acknowledges that the City makes no representation with respect to the taxability or non- taxability of the benefits provided under this Section.

ARTICLE 15 – HOLIDAYS

The City of Upland observes the following holidays as official fixed holidays, established by Resolution:

New Year’s Day (January 1)
Martin Luther King Day (Third Monday in January)
President’s Day (Third Monday in February)
Memorial Day (Last Monday in May)
Independence Day (July 4)
Labor Day (First Monday in September)
Thanksgiving Day (Fourth Thursday in November)
Friday after Thanksgiving Day (The Day After the Fourth Thursday in November) Christmas Day (December 25)

Each official fixed holiday shall be ten (10) hours unless otherwise noted.

If the holiday falls on a Friday or Saturday, Thursday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday.

To be paid for an official fixed City holiday (the days on which the public offices of the City of Upland will be closed) employees must be in a paid status both the day before and the day after the holiday. For example, if a holiday fell on a Monday, and the employee was on a 4/10 work schedule with Fridays off, the employee would be required to be in a paid status on the Thursday before the holiday and the Tuesday following the holiday.

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Upland Executive Management Compensation and Benefit Plan 7 City Hall and most City departments will be permanently closed from Christmas Day through New Year’s Day. Christmas Day and New Year’s Day holidays will be part of this closure except for the case where either holiday falls on a Sunday. In the case that either Christmas Day or New Year’s Day falls on a Sunday it will be observed on the following Monday. Employees will receive compensation that will cover their absence from work from December 25th through January 1st. The employee must be an active employee of the City of Upland on the above dates to receive this holiday compensation.

ARTICLE 16 – FLOATING HOLIDAYS

Employees in the unit shall receive twenty (20) hours of Floating Holiday annually.

Floating holiday hours which are not used by the first pay period in December will automatically be cashed out on the second pay period in December.

ARTICLE 17 – EXECUTIVE LEAVE

Employees in the unit shall receive eighty (80) hours of executive leave annually.

Executive Leave which is not used by the first pay period in December will automatically be cashed out on the second pay period in December.

ARTICLE 18 – SICK LEAVE

Employees in the unit earn sick leave at the rate of eight (8) hours per month, up to a maximum accrual of twelve hundred and fifty (1250) hours. Notification of need for such leave must comply with the City’s Administrative Policy on Sick Leave.

ARTICLE 19 – SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT

Upon service or disability retirement under the PERS retirement plan, employees may elect one of the following options for payment of unused sick leave:

a. At the time of service or disability retirement, fifty percent (50%) of accrued sick leave may be cashed out at the current hourly rate, up to a maximum of 625 hours; or

b. Retiring employees may use fifty percent (50%) of accrued sick leave as Personal Leave just prior to retirement, up to a maximum of six hundred and twenty-five (625) hours.

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Upland Executive Management Compensation and Benefit Plan 8 ARTICLE 20 – VACATION

Vacation shall accrue based on the following schedule:

01 – 02 Years of service 80 Hours per year
03 – 05 Years of service 96 Hours per year
06 – 10 Years of service 128 Hours per year
11 – 16 Years of service 136 Hours per year
17 + Years of service One additional day (10 hours) per year, up to a maximum of 176 hours per year

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

Police Chief:

Vacation shall accrue based on the following schedule:

01 – 02 Years of service 96 Hours per year
03 – 05 Years of service 120 Hours per year
06 – 16 Years of service 152 Hours per year
17 + Years of service One additional day (10 hours) per year, up to a maximum of 176 hours per year

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

ARTICLE 21 – VACATION BUYBACK

In December of every year, Executive employees may be paid cash in lieu of unused vacation, sick leave, and/or executive leave for up to 80 hours.

Furthermore, an additional 80 hours of vacation can be cashed out in June of each year.

ARTICLE 22 – BEREAVEMENT LEAVE

Employees may take up to 30 hours annually per occurrence (January 1 through December 31) with pay in the event of a death of the following: mother, father, grandfather, grandmother, brother, sister, spouse, child, grandchild, and employee spouse’s father, mother, grandfather, grandmother, brother, sister and any relative who has resided with the employee for at least six (6) months. Adoptive relatives and step relatives shall count the same as relatives by birth. Notification of need for such leave must comply with the City’s Administrative Policy on Sick Leave.

The City will consider a request for bereavement leave for the death of a member’s aunt and uncle on a case-by-case basis.

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Upland Executive Management Compensation and Benefit Plan 9 Executive Management may also take up to four (4) hours per year to attend funeral services.

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Upland Executive Management Compensation and Benefit Plan 1 0

APPENDIX A

Grade Classification Title

96 City Manager

83 Assistant City Manager

94 Chief of Police

3247 Public Works Director

3243 Development Services Director

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Upland Executive Management Compensation and Benefit Plan 1 1

APPENDIX B

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THE CITY OF UPLAND

EXECUTIVE MANAGEMENT EMPLOYEES

COMPENSATION AND BENEFIT PLAN

Updated October 14,
2019July 1, 2022

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TABLE OF CONTENTS
ARTICLE 1 – PURPOSE ................................................................................................. 1 ARTICLE 2 – MANAGEMENT RIGHTS .................................................................... 1 ARTICLE 3 – COMPENSATION .................................................................................. 2 ARTICLE 4 - RETIREMENT BENEFITS2ARTICLE 4 - RETIREMENT BENEFITS ............................................................................................................................................ 3 ARTICLE 5 – EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC) ............ 3 ARTICLE 56 – HEALTH INSURANCE – CAFETERIA PLAN .............................. 34 ARTICLE 67 – RETIREE HEALTH INSURANCE REIMBURSEMENT ............... 4 ARTICLE 8 – RETIREE HEALTH SAVINGS ACCOUNTS ..................................... 4 ARTICLE 79 – LIFE INSURANCE ............................................................................... 4 ARTICLE 180 – LONG TERM DISABILITY INSURANCE ..................................... 5 ARTICLE 911 – 401(a) AND DEFERRED COMPENSATION .................................. 5 ARTICLE 12 – EDUCATION INCENTIVE ................................................................. 5 ARTICLE 103 – LONGEVITY PAY .............................................................................. 5 ARTICLE 114 – PREVENTATIVE HEALTH BENEFIT ........................................... 5 ARTICLE 125 – UNIFORM ALLOWANCE .............................................................. 65 ARTICLE 136 – VEHICLE ALLOWANCE ............................................................... 65 ARTICLE 14 - CELL PHONE ALLOWANCE ............................................................ 6 ARTICLE 157 – HOLIDAYS .......................................................................................... 6 ARTICLE 168 – FLOATING HOLIDAYS .................................................................... 7 ARTICLE 179 – EXECUTIVE LEAVE ......................................................................... 7 ARTICLE 1820 – SICK LEAVE ..................................................................................... 7 ARTICLE 1921 – SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT .. 7 ARTICLE 202 – VACATION ....................................................................................... 78 ARTICLE 213 – VACATION BUYBACK..................................................................... 8 ARTICLE 224 – BEREAVEMENT LEAVE ................................................................. 8 ARTICLE 25 – SAVINGS CLAUSE .............................................................................. 8

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Upland Executive Management Compensation and Benefit Plan 1 THE CITY OF UPLAND

EXECUTIVE MANAGEMENT EMPLOYEES

Compensation and Benefit Plan

ARTICLE 1 – PURPOSE

Executive Management employees are not represented by an employee organization. The Executive Management positions are considered to serve at the will and pleasure of the City Manager.

This compensation and benefit plan document is intended as a comprehensive document to define and describe the forms and amounts of compensation and benefits for Executive Management Employees. However, the terms and conditions of employment for the Executive Management Employees may also be addressed in individual employment contracts. If an individual’s employment contract agreement is in conflict withconflicts with this document, then the provision of the agreement will supersede the provisions of this document.

ARTICLE 2 – MANAGEMENT RIGHTS

The rights of the CITY include, but are not limited to the exclusive right to:

The City reserves the right to contract out any work it deems necessary in the interest of efficiency, economy, improved work product, or emergency.

Notwithstanding anything to the contrary in this section, in any other provision of this chapter of the Upland Municipal Code, or in any other presently existing ordinance, resolution, agreement, rule, policy, practice or other city enactment of any type or nature, all present and future department heads shall be deemed and are designated as at -will employees who each serve at the pleasure of the Ccity Mmanager, and accordingly the Ccity Mmanager may reduce the salary of, suspend, demote or discharge any department head,

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Upland Executive Management Compensation and Benefit Plan 2 without prior notice and without cause. No department head shall have any administrative right of due process in connection with any reduction in salary, suspension, demotion or discharge, and no department head shall have any right of appeal to the board of review or the city council. The Ccity Mmanager’s decision as regards the employment status of a department head shall be final and absolute. No department head shall have the right or authority to undertake any of the rights or powers specified in Upland Municipal Code Sections 2.36.140, 2.36.150, 2.36.160 and 2.36.170. (Ord. 1790 § 2, 2005; prior code § 2350.13)

ARTICLE 3 – COMPENSATION

1. The Executive Management Ssalary Range Table (Appendix B) is established to provide the minimum and maximum monthly salary levels for Executive Management positions. This table incorporates the 4% COLA adjustment provided in section 2. a. below.

2. The City Managerment is responsible for determination of each individual employee’s salary rate within the assigned salary range. Such determination will be based on job performance and or other competitive and economic factors.

3. Effective the pay period beginning August 11, 2019, following City Council approval, all employees in this unit shall receive a 4% COLA increase in base salary.

4.2. a. Effective June 28, 2020, all employees in this unit shall receive a 2% COLA increase in base salary.

a. Effective June 26, 2022June 27, 2021, all employees in this unit shall receive a four- and one-half percent (4.52%) COLA increase in base salary.

• For example, an employee hired on May 16, 2020, will receive a payment of $3,750 (10 months times $375).

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Upland Executive Management Compensation and Benefit Plan 3 Employees who have been on an unpaid leave of absence during this time will also have their lump sum payment pro-rated based on the period of unpaid leave of absence.

ARTICLE 4 - RETIREMENT BENEFITS

The City of Upland provides its Executive Management Employees with membership in the California Public Employees Retirement System (CalPERS):

Currently the non safetynon-safety executive 8% of the
employee share of PERS and the City will pick up the 2.4% employer’s cost sharing contribution. Classic Employees hired after January 1, 20202020, shall cost share with the City by
contributing 1.4% of CalPERS employer contribution in
addition to the 8% employee contribution.

The agreement between the City and CalPERS allows for the buy-back of time served by the employee in the Military as defined under Government Code Section 21024.

Pension Reform Act of 2013:

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Upland Executive Management Compensation and Benefit Plan 4 by law automatically goes into effect, it shall do so. Either party may request to negotiate over the impact of such subsequent legislation.

ARTICLE 56 – HEALTH INSURANCE – CAFETERIA PLAN

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Upland Executive Management Compensation and Benefit Plan 5 contributing 1.4% of CalPERS employer contribution in addition to the 8% employee contribution.

The agreement between the City and CalPERS allows for the buy-back of time served by the employee in the Military as defined under Government Code Section 21024.

Pension Reform Act of 2013:

1) The parties agree that the provisions of AB 340 (The California Pension Reform Act of 2013) went into effect on January 1, 2013. In addition, if there is any other clean up or other retirement legislation which goes into effect during this MOU and if there are provisions of that legislation which, by law automatically goes into effect, it shall do so. Either party may request to negotiate over the impact of such subsequent legislation.

2)1) Two Tier Retirement: Pursuant to the Act, for “new members” (as defined by the Act) who are employees hired after January 1, 2013, they will be hired pursuant to the 2% @ 62 retirement formula (non-safety) and

2.7% @ 55.

3)1) For “new members” (as defined by the Act) who are employees hired after January 1, 2013, final compensation will be based on the highest annual average compensation earnable during the three consecutive years of employment immediately preceding the effective date of his or her retirement.

ARTICLE 5 – EMPLOYER PAID MEMBER CONTRIBUTIONS (EPMC)

The City will report the Employer Paid Member Contribution of 7% (non -safety) and 9% (safety) and as compensation for CalPERS retirement purposes. Effective July 1, 2013, the City will stop paying and reporting the EMPC for all executives.

ARTICLE 6 – HEALTH INSURANCE – CAFETERIA PLAN

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Upland Executive Management Compensation and Benefit Plan 6 Effective January 1, 20230, employees in this unit will receive fourteen hundred dollars ($1,400)184 per month for the purchase of health insurance benefits through the City’s Cafeteria Plan. The health insurance options under the City’s Cafeteria Plan include medical insurance, dental insurance, and vision insurance. Members Employees may also purchase savings bonds contributewith any remaining Cafeteria Plan Funds or contribute to the City’s deferred compensation plan.

ARTICLE 67 – RETIREE HEALTH INSURANCE REIMBURSEMENT

The City will provide retiree medical insurance reimbursement in accordance with the following schedule for employees who have health insurance and are paying a premium which exceeds these amounts. An additional $45 per month allowance is provided for a spouse if the spouse is covered under the employee’s insurance. Retirees who are participating in one of the City’sCalPERS health insurance plans will have the PERS administrative fee deducted from their reimbursement. This benefit was eliminated for employees hired after October 1, 2014.

10 - 14 years of service $ 72.57 per month
15 - 19 years of service $ 96.81 per month
20 - 24 years of service $121.05 per month
25 + years of service $145.14 per month

ARTICLE 8 – RETIREE HEALTH SAVINGS ACCOUNTS

Years of Service Monthly City Contribution Yearly City Contribution 5 to 9.99 $12.50 $150.00
10 to 14.99 $25.00 $300.00
15 to 19.99 $50.00 $600.00
20 to 24.99 $75.00 $900.00
25 + $100.00 $1,200.00
This benefit was eliminated for employees hired after October 1, 2014.

ARTICLE 79 – LIFE INSURANCE

The City provides employees in this unit with group life insurance in an amount equal to

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Upland Executive Management Compensation and Benefit Plan 7 one times (1x) their annual salary.

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Upland Executive Management Compensation and Benefit Plan 8 The City provides employees in this unit with group life insurance in an amount equal to one times (1x) their annual salary.

ARTICLE 810 – LONG TERM DISABILITY INSURANCE

The City assumes the full premium cost for the employee in the City designated long- term disability program. This benefit will pay 66 2/3% of base salary to a maximum of $5000 per month after 60 days (or use of all sick leave, whichever is later) to qualified members of this unit.

ARTICLE 911 – 401 (a) AND DEFERRED COMPENSATION PLANS

The City contributes nine percent (9%) of base monthly salary to the City’s deferred compensation plan on behalf of each employee in the unit. This amount may also be used toward the employee’s cafeteria options as defined in Article 7, Health Insurance – Cafeteria Plan.

Effective July 1, 2012, the deferred compensation amount was reduced by 3.6% for Non- Safety and 3.2% for the Police Chief to go towards the CalPERS retirement.

Effective July 1, 202213, the City will contribute nine percent (9%) of base monthly salary to the City’s 401(a) plan on behalf of each employee. deferred compensation amount will restored to 9% for non- safety and safety executive employees.

Employees may contribute to the City’s 457 (b) (deferred comp) up to the yearly maximum limit as defined by IRS guidelines.

ARTICLE 12 – EDUCATION INCENTIVE

Employees hired after July 1, 1981 will receive a one-time payment of the percentage of total annual base salary at time job related degree is awarded combined with years of service in accordance with the following schedule:

PhD with 2 years of service 10%
JD with 2 years of service 10%

ARTICLE 103 – LONGEVITY PAY

Employees with twenty (20) years or more of continuous service will receive a two and one halftwo- and one -half percent (2.5%) increase in base salary.

ARTICLE 114 – PREVENTATIVE HEALTH BENEFIT

Employees may be reimbursed up to $225 annually for the purchase of items, classes, memberships, or programs which contribute to physical fitness. This reimbursement shall

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Upland Executive Management Compensation and Benefit Plan 9 be made in June of each year. Items which will be considered acceptable for reimbursement are defined in the City’s policy on Preventive Health Benefits.

ARTICLE 12 – UNIFORM ALLOWANCE

The Police Chief shall receive an allowance in the amount of one thousand dollars ($1,000.00) per year after completion of 12 months of employment. A uniform will be provided at time of appointment.

The purpose of the allowance is to provide uniform cleaning or replacement expenses.

Effective, July 1, 2023, this allowance will be paid per pay period in the amount of thirty- eight dollars and forty-six cents ($38.46).

ARTICLE 13 – VEHICLE ALLOWANCE

The Police Chief shall receive a City vehicle to take home. All other executive management employees receive $350.00/ month.

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Upland Executive Management Compensation and Benefit Plan 10 ARTICLE 15 – UNIFORM ALLOWANCE

The Police Chief shall receive an allowance in the amount of $884.00 per year after completion of 12 months of employment. A uniform will be provided at time of appointment.

The purpose of the allowance is to provide uniform cleaning or replacement expenses. This allowance will be paid the first pay period in December.

ARTICLE 16 – VEHICLE ALLOWANCE

The Police Chief shall receive a City vehicle to take home. All other executive management employees receive $350.00/ month.

ARTICLE 14 – CELL PHONE ALLOWANCE

ARTICLE 157 – HOLIDAYS

The City of Upland observes the following holidays as official fixed holidays, established by Resolution:

Each official fixed All holidays shall be ten (10) hours unless otherwise noted.

If the holiday falls on a Friday or Saturday, Thursday shall be designated as the holiday and if the holiday falls on Sunday, Monday shall be designated as the holiday.

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Upland Executive Management Compensation and Benefit Plan 11 In order toTo be paid for an official fixed recognized City holiday (the days on which the public offices of the City of Upland will be closed) employees must be in a paid status both the day before and the day after the holiday. For example, if a holiday fell on a Monday, and the employee was on a 4/10 work schedule with Fridays off, the employee would be required to be in a paid status on the Thursday before the holiday and the Tuesday following the holiday.

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Upland Executive Management Compensation and Benefit Plan 12 City Hall and most City departments will be permanently closed from Christmas Day through New Year’s Day. Christmas. Christmas Day and New Year’s Day holidays will be part of this closure except for the case where either holiday falls on a Sunday. In the case that either Christmas Day or New Year’s Day falls on a Sunday it will be observed on the following Monday. Employees will receive compensation that will cover their absence from work from December 25th through January 1st. The employee must be an active employee of the City of Upland on the above dates to receive this holiday compensation.

ARTICLE 168 – FLOATING HOLIDAYS

Employees in the unit shall receive twentyforty (2040) hours of Floating Holiday annually.

Floating holiday hours which are not used by the first pay period in December will automatically be cashed out on the second pay period in December.must be used during the calendar year or they will be removed from the books on December 31 of each year.

ARTICLE 1719 – EXECUTIVE LEAVE

Employees in the unit shall receive eighty (80) hours of executive leave annually. This leave must be used within the calendar year, or it will be removed from the books as of December 31 of each year. Executive Leave which is not used by the first pay period in December will automatically be cashed out on the second pay period in December.

ARTICLE 1820 – SICK LEAVE

ARTICLE 1921 – SICK LEAVE ACCRUAL PAYMENT UPON RETIREMENT

Upon service or disability retirement under the PERS retirement plan, employees may elect one of the following options for payment of unused sick leave:

a. At the time of service or disability retirement, one halffifty percent (50%) of accrued sick leave may be cashed out at the current hourly rate, up to a maximum of 625 hours; or

b. Retiring employees may use one half fifty percent (50%) of accrued sick leave as Personal Leave just prior to retirement, up to a maximum of six hundred and twenty-five (625) hours.

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Upland Executive Management Compensation and Benefit Plan 13 ARTICLE 202 – VACATION

Vacation shall accrue based on the following schedule:

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

Police Chief:

Vacation shall accrue based on the following schedule:

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

ARTICLE 21 – VACATION BUYBACK

In December of every year, Executive employees may be paid cash in lieu of unused vacation, sick leave, and/or executive leave for up to 80 hours.

Furthermore, an additional 80 hours of vacation can be cashed out in June of each year.

ARTICLE 22 – BEREAVEMENT LEAVE

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Upland Executive Management Compensation and Benefit Plan 14 The City will consider a request for bereavement leave for the death of a member’s aunt and uncle on a case-by-case basis.

Executive Management may also take up to four (4) hours per year to attend funeral services.

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Upland Executive Management Compensation and Benefit Plan 15 All employees may accrue vacation up to a maximum of three (3) years of entitlement.

Police Chief:

Vacation shall accrue based on the following schedule:

All employees may accrue vacation up to a maximum of three (3) years of entitlement.

ARTICLE 23 – VACATION BUYBACK

In December of every year, Executive employees may be paid cash in lieu of unused vacation, sick leave, and/or executive leave for up to 80 hours.

Furthermore, an additional 80 hours of vacation can be cashed out in June of each year.

ARTICLE 24 – BEREAVEMENT LEAVE

Effective July 1, 2010, employees may take up to 30 hours annually (January 1 though December 31) with pay in the event of a death of the following: mother, father, grandfather, grandmother, brother, sister, spouse, child, grandchild, and employee spouse’s father, mother, grandfather, grandmother, brother, sister and any relative who has resided with the employee for at least six months. Adoptive relatives and step relatives shall count the same as relatives by birth. Notification of need for such leave must comply with the City’s Administrative Policy on Sick Leave.

The City will consider a request for bereavement leave for the death of a member’s aunt and uncle on a case by case basis.

Executive Management may also take up to four hours per year to attend funeral services.

ARTICLE 25 – SAVINGS CLAUSE

Should any provision of this agreement or the application of such provision be rendered or declared invalid by any court action or by reason of any existing or subsequently enacted legislation, the City and Union shall meet and confer immediately upon what constitutes an equivalent benefit to that which was determined to be unlawful. Such

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Upland Executive Management Compensation and Benefit Plan 16 equivalent benefit will be implemented retroactive to the date the old benefit ceased. The remaining parts or portions of the Agreement shall remain in full force and effect.

APPENDIX A

Grade Classification Title

96 City Manager

83 Assistant City Manager

94 Chief of Police

3247 Public Works Director

3243 Development Services Director

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Upland Executive Management Compensation and Benefit Plan 17 APPENDIX B

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UPLAND, CALIFORNIA ADOPTING AN AMENDMENT TO THE

SALARY SCHEDULE FOR PART-TIME EMPLOYEES

WHEREAS, it is the policy of the City of Upland to compensate its employees in a fair and equitable manner for their efficient and faithful service; and

WHEREAS, the City would like to amend the part-time salary schedule to be consistent with salary range and hourly rate of the full-time employees;

NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines, and resolves as follows:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council hereby approves the amendment to the part- time salary schedule, attached hereto, and authorizes the Human Resources/Risk Manager to implement the salary schedule.

Section 4. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.

Section 5. Effective Date. This Resolution shall become effective immediately upon adoption.

PASSED, APPROVED and ADOPTED this 13th day of June, 2022.

Bill Velto, Mayor

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Resolution No.

Page 2 ends

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

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City of Upland
Part-Time Salary Schedule
Effective 06/26/2022
The following part-time hourly positions are associated with the full-time salary schedule.

Job Description Grade 1 2 3 4 5 6 7 8 9 10 11 12 13 ADMINISTRATIVE ASSISTANT 26 Hourly 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37

COMMUNICATIONS INFORMATION
SPECIALIST 45 Hourly 30.16 30.91 31.69 32.48 33.29 34.12 34.98 35.85 36.75 37.67 38.61 39.57 40.56 CUSTODIAN 22 Hourly 17.09 17.52 17.96 18.41 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 CUSTOMER SERVICE SPECIALIST I 25 Hourly 18.41 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 CUSTOMER SERVICE SPECIALIST II 29 Hourly 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37 26.01 26.66 27.32 ENGINEERING TECHNICIAN 30 Hourly 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37 26.01 26.66 27.32 28.01 MAINTENANCE WORKER HRLY 28 Hourly 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37 26.01 26.66 POLICE DISPATCHER I 31 Hourly 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37 26.01 26.66 27.32 28.01 28.71 POLICE DISPATCHER II 35 Hourly 23.56 24.15 24.75 25.37 26.01 26.66 27.32 28.01 28.71 29.43 30.16 30.91 31.69 POLICE RECORDS SPECIALIST I 21 Hourly 16.68 17.09 17.52 17.96 18.41 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 POLICE RECORDS SPECIALISTII 25 Hourly 18.41 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 POLICE SERVICE TECHNICIAN FT 27 Hourly 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 25.37 26.01 PROPERTY & EVIDENCE CLERK 25 Hourly 18.41 18.87 19.34 19.82 20.32 20.83 21.35 21.88 22.43 22.99 23.56 24.15 24.75 UTILITY SYSTEM WORKER 34 Hourly 22.99 23.56 24.15 24.75 25.37 26.01 26.66 27.32 28.01 28.71 29.43 30.16 30.91 STEP

Page 333 of 333 ends

S T A F F R E P O R T
I T E M N O . 13.B .

D A T E :J u ne 1 3, 2 02 2
T O :M A YO R A N D C I T Y C O U N C I L
F R O M : M I C H A E L B L A Y, C I T Y M A N A G E R P R E P A R E D B Y : S T E P H E N PA R K E R , C PA , A S S I S TA N T C I T Y M A N A G E R S U B J E C T :P R O P O S E D A N N U A L B U D G E T F O R F I S C A L Y E A R 20 22 -20 23 A N D

R E L A T E D I T E M S

R E C O M M E N D E D A C T I O N
I t is recom m en d ed th at the C ity C ou ncil:
1 . A p p rove a Resolu tion ad op tin g the F iscal Year 2 02 2-2 02 3 A nn ual B u d g et; an d 2 . A p p rove a Resolu tion ap p rovin g the ap p rop riation s lim it for the C ity of Up lan d ; an d 3 . A p p rove a Resolu tion ap p rovin g the G en eral F u nd Reserve Policy; an d 4 . A p p rove am en d i ng th e C it y’s C lassification P l an to i nc lu d e job d esc ri p t ion s for A ccoun tan t, B u d g et C oord in ator, E xecu tive A ss is tan t I , Park Ran g er, an d Recreation C oord in ator.

G O A L S T A T E M E N T
T he p rop os ed ac ti on s u p p orts th e C ou n c il 's g oal to p rovi d e s oun d fiscal steward ship for th e C ity of Up lan d .

B A C K G R O U N D
Th e p rop os ed F i scal Year 2 02 2-2 02 3 A n nu al B u d g et h as b een p rep ared u n d er t he d irection and lead ersh ip of the C i ty M an ag er. T hi s b u d g et rep resen ts a coop erat ive effort b y th e C ity's E xecu tive Team t o c on t in u e t he d el ivery of t h orou g h an d cos t-effec ti ve m u ni ci p al services w ithin t he c ons train ts of availab le finan cial resou rc es. A p rop osed b u d g et review w as con d u cted w it h t h e F in an c e C om m i tt ee on A p ril 27 , 2 02 2, an d a b ud g et w orkshop th at in clud ed p resentations b y d ep artm ent head s was held on M ay 9 , 20 22 .

I S S U E S /A N A L Y S I S
A n nu al B ud g et

Page 1 of 280 ends

Total G en eral F un d op eratin g reven u es are p rojected t o b e $50 ,18 1,5 80 , an in crease of ap p roxim ately $1.3 m i ll ion over th e p rior year am en d ed b u d g et. N ot ab l e in creases inclu d e $0 .7 m i ll ion in th e variou s form s of p rop ert y taxes d u e t o in creases in as ses sed valu es an d p rop erty sales an d $0 .3 m i ll ion i n sales t ax. N ot ab l e d ecreases of revenu e i n c lu d e variou s p erm it fees i n th e t otal am oun t of $24 8,6 20 as con st ru ct ion ac ti vit y i s exp ected to m od erate d u ring th e year.

G eneral F u n d op erati n g exp end it ures are p roject ed to b e $52 ,25 6,1 20 , wh ic h is $6.5 m illion hig h er th an th e p rior year's orig inal b u d g et . S alaries an d b enefits are estim ated t o in crease b y $3.1 m i ll ion p rim arily d u e to neg otiated p ay and b en efit in creases ($1.4 m i ll ion ), a rem ittan ce to th e C ity's S ect ion 11 5 Pen si on Tru st ($1 .2 m il li on ) i n c on ju n c ti on w i th the Pension F u n d i n g Poli cy an d step i n c reas es ($0.5 m illion ). M ain ten an c e and op erations are estim ated to in crease b y $3.4 m il li on p rim arily d u e to hig h er d eb t s ervi ce taken on to m ake ad d ition al d iscreti onary p aym en t s to C al P E R S to red uce th e C ity's U n fun d ed A c cru ed Liab ility (U A L ) ($1.7 m il li on ) an d sm all er increases su ch as $3 05 ,00 0 for h ig her s elf-i n s u red reten tion costs for l iab il it y an d w orker's com p ensation insurance in creases, $2 00 ,00 0 for a b od y-worn cam era soft w are u p g rad e, a $1 50 ,00 0 in crease for elec ti on s -rel ated costs i n N ovem b er, a $1 50 ,00 0 in crease i n L i b rary c ost s i n c on ju n c ti on wi th th e cu rrent out sou rced contract, a $1 30 ,00 0 al loc ati on to a B ui ld in g Rep lacem ent an d M aintenan ce Res erve to com p l y with the G eneral F u n d Reserve Poli cy and $11 5,0 00 in increased c ost s ant ic ip ated as th e C it y p ursu es a new land scap e m ain ten ance con tractor.

Th is b u d g et reflec ts th e ch all en g es of an ec onom y w it h ris in g in flation . For t h e th ird con secutive year, t h e p rop osed b u d g et is b alan ced w ith on e-t im e fu n d s ; th is year req u irin g a $2 .4 m il li on transfer from th e A m eri can Rescu e P l an A ct (A R PA ) F un d for b asic an d ong oin g p u b lic s afety p ers onn el exp enses. W it h t hos e one-t im e fun d s, t h e p rop osed G eneral F un d b u d g et is b alanced . Th is year's G en eral F u nd b u d g et in clud in g tran s fers out an d reservation of fu nd b alan ce is $5 2,6 26 ,12 0. Th e en d i ng u n as si g n ed fu n d b alan ce is p rojec ted as $3 83 ,37 0, however t hat d oes n ot in clud e rest rict ed , com m i tt ed an d as si g n ed fu n d b alan ce am ou nts, in clud in g th e E conom ic U ncertain ty Reserve estab lish ed b y th e G en eral F un d Reserve Policy at 22 .5% of the op eratin g exp end itures (or $1 1.8 m illion ).

Personn el costs, i n c lu si ve of al l C i ty fu nd s, are in creasi n g b y $2 .6 m i ll ion from $39 .8 m i ll ion to $4 2.4 m illion , larg el y d ue t o n eg oti ated p ay and b en efit increases ($2.7 m i ll ion ). I n t otal , the nu m b er of au th ori zed p ositions has in creased b y si x (6 ), from th e am end ed b ud g et to 26 3.

F u nd in g for h alf of th ese ad d it ion al au th orized p osi ti ons w ill com e from t he Water U ti li ty F un d and ad d itional Police D ep artm en t staffin g is b ein g accom p lish ed th rou g h A m erican Rescue P lan A ct (A R PA ) fu nd in g .

M aintenan ce an d op erations exp en d i tu res (exclu d ing th e U A L & E m p loyee B enefi ts I ntern al S ervice F un d ) are increasin g b y $6 .1 m illion from $91 .7 m illion to $9 7.8 m illion . $3 .1 m illion of th e in crease is attrib uted to in creases in utility fun d s' costs of op eration , and another $1 .7 m illion relates to G eneral F u nd d eb t s ervi ce taken on t o m ake ad d i ti on al d iscretion ary p aym ents t o C al P E R S t o red u ce t h e C i ty's U A L . C ap i tal p rojec ts an d eq u ip m en t ap p rop riations are p roject ed to d ec reas e b y $6.3 m illion from $4 7.2 m il li on to $4 0.9 m illion d u e t o t h e im p lem entation of a 5 -year C ap it al I m p rovem en t P roject list in g . W h il e p rojects over th e 5 years still am ou nt to m ore th an th e p rior years' listin g , th e cu rrent year reflects lower, as on ly cap ital p rojects b ud g eted for F Y 22 /23 are in this listing th is year, wh ile m u ltip le years of cap ital p rojects w ere record ed p reviou sly.

A Lon g -Term F in an c ial P lan ni ng sec ti on at t h e end of th e B ud g et M es sag e inclu d es a chart th at su m m ari zes a fi ve-year b ud g et p rojec ti on inclu d ing ad d i ti onal fun d ing p rovi d ed b y A R PA . A five-year b u d g et p rojection w as also com p l eted refl ect in g th e C i ty's finan cial con d ition with cu rrent trend reven ues , n ot in cl u d in g A R PA fu n d i n g , an d w it h ou t a red u ct ion in service levels. U nd er b oth scenarios, a stru ctural b ud g et im b alance occurs that w ill n eed to b e ad d ressed th rou g h in creased reven ue or service level red uctions.

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A p p rop riation s Lim it
A rticle X I I I B (P rop os it ion 4 ) of th e C ali forn ia C on st it u t ion , c om m on l y referred to as th e G an n I n itiative or G an n A p p rop riat ion s L i m i t, w as ad op ted b y C al iforn i a vot ers in 1 98 0 and p laced lim its on the am oun t of p roceed s of taxes th at can b e sp ent b y all en tities of g overn m en t. T he b ase year of ap p rop riated p roceed s of taxes in 19 78 -79 is ad ju sted ann ually usin g a ratio of th e ch ang es in p op u lation , in flation and /or the chan g es in non -resid ential con stru ction .

Th is ap p rop riat ion s lim it i s req u ired to b e ann ually revi ew ed b y th e C it y's in d ep end ent aud itor, p u b lished in th e an nu al b u d g et d oc u m en t , an d su b m it ted t o t h e S t ate C on troll er w it h the filin g of th e A n n u al Rep ort of F i n an ci al Tran sac ti ons no l ater th an 9 0 d ays after the en d of each fiscal year.

Th e C alifornia D ep artm ent of F inan ce p rovid es th e ch ang e in th e C alifornia Per C ap ita Person al I n com e Fac tor (C C P I ) and t h e p op u lat ion ch ang es in b ot h t he C i ty of U p land an d t he C oun ty of S an B ernard i no. C ities m ay ch oose an inflation factor th at i s ei th er th e ch ang e in th e C C P I or the chan g e i n n on -resi d en ti al c on s tru c ti on . Th e p op ulation fac tor op t ion is eit h er the g row th rate in th e city or cou nty. E ach of th ese factors is an ann ual election.

For th e F Y 22 /23 calculation, st aff recom m en d s elect in g to use the in crease in the ch ang e in Per C ap it a Pers on al I n com e of 7.5 5% as th at p erc ent ag e i ncrease is hig h er than th e in crease in t he ch an g e in N on resid ent ial N ew C onstruction of 7 .00 %. S taff recom m end s elec ti n g to use t he C i ty of U p lan d 's ch ang e i n p op u lation of 0.3 1 %, w hi ch i s h ig her t han t he in crease in p op ulation for th e C ou nty of S an B ernard ino of 0 .14 %.

Th e cal cu lat ion s are p rovi d ed on the at tac h ed worksh eets. T he F Y 22 /23 ap p rop riat ion s lim it is $13 0,6 67 ,62 2, w hi ch exc eed s t h e p roceed s of taxes of $3 7,4 84 ,26 0 b y $9 3,1 83 ,36 2. T he analysis b elow p rovid es th e fig ures for th e estim ate of the ap p rop riation s lim it for F Y 2 2/2 3.

Th e analysis b elow p rovid es th e fig u res for th e estim ate of th e ap p rop riations li m i t for F Y 22 /23 .

I N F L A T I O N O P T I O N FA C TO R
P C P I 7 .55 %
C han g e in N on -Resid en tial C onstruction 7 .00 %

P O P U L A T I O N O P T I O N FA C TO R
C ity of Up lan d 0 .31 %
C oun ty of S an B ern ard in o 0 .14 %

Usin g the fig u res for t he c h an g e i n P C P I and th e ch ang e in p op u l ati on for th e C i ty of Up lan d p rovid es the op tim u m increase.

G eneral F un d Reserve Policy
C u rrently, t he E c on om ic U ncert ain ty Res erve is at $1 0.3 m i ll ion , b u t any year-en d op eratin g su rp lu s w il l b e p rioritized t o rep l en i sh th e reserve t o a fu ll 2 2.5 % of G en eral F u n d op eratin g exp en d itu res, w hich b ased on th e F Y 22 /23 b u d g et, will b e $11 .8 m illion.

Th e G en eral F un d Reserve Policy (the "Policy") w as estab lished in J u ne 20 21 , an d is req u ired to b e reviewed and ap p roved b y th e C i ty C oun ci l at least every year d u ri ng th e ann ual b u d g et p rocess. T h e Poli cy u n d er con sid eration h as only b een rec om m en d ed to b e m od ified from the orig inal t o reflect t h e n ew nam e of t he an n u al fin anc ial statem ents - th e A n nu al C om p rehen sive F in an c ial Rep ort. Th e Policy, att ach ed for c on s id erat ion , con ti nu es to reflect six categ ories of reserves and sets targ ets for fu nd in g levels.

Personn el C han g es
Th e F Y 2 2/2 3 b u d g et in cl ud es several p erson nel ch ang es, w h i ch are d esc ri b ed b elow and are su m m arized in t he follow in g t ab l e, i nclu d i ng the ad d i ti on of s ix (6) F u l l Tim e E q u ivalents

Page 3 of 280 ends

(F T E s) an d the reclassification of four (4) F T E 's.

D epartm ent A ctio n # o f
P o sitio ns P o sitio n
A dministratio n
C ity M an ag er's O ffice Reclass 1 S enior A d m inist rat ive A s si st ant t o E xecu tive A ssistan t I

A dministrative
S ervices
F in ance Reclass 1 S enior A ccoun tan t to A ccou ntant F in ance Reclass 1 S enior A ccoun ting Techn ician to B ud g et C oord in ator
F in ance Reclass 1 A ccoun ting Tec hn ic ian to S en ior A ccoun ting Tech nician
I nform ation
Tech nolog y A d d 1 I nform ation Techn olog y Techn ician Recreation A d d 1 Recreation C oord inator

P ublic W o rks
O p eration s A d d 1 M ain ten ance Worker
Water A d d 1 Water Treatm ent O p erator
Water A d d 1 Water M eter Tech nician
Water A d d 1 A ssociate E n g ineer

Total
A d d ition s 6
N et C h ang e 6

A d m inistration /A d m inistrative S ervices
Th e b ud g et i n c lu d es fou r reclassification s, w it h th ree of th e recl assifi cat ion s b ei n g p rop osed after t he B u d g et Workshop . H ow ever, t he n et effec t of th e fou r reclassification s is a n et saving s to t he G en eral F u n d . A S en i or A ccoun tan t is b ei ng d own g rad ed t o an A ccoun tan t.

Th e savin g s from that m ove i s sup p orting t h ree up w ard recl ass ifi cat ion s. Th e fi rs t u p ward reclassification is in t h e C it y M an ag er's O ffi ce, with t h e n ever fil led S en ior A d m inistrative A ssistant b eing rec las si fied u p 5 ran g es to an E xec u t ive A ss is tan t I i n t h e C on fid ential/N on- Rep resen ted g rou p . Th is p os it ion s erves b oth th e C it y M anag er's O ffi ce and the A d m inistrative S ervices D ep artm en t , as th e A ssistant C it y M an ag er that t he p os it ion rep orts to al so fun ction s as t he A d m in is trati ve S ervices D irect or. T he ot her tw o rec las si fic ati ons in F inan ce are a vacan t A ccou ntin g Tech n i ci an b ei ng m oved to a S en ior A ccoun ting Tech nician and a S en ior A ccou ntin g Tec hn ic ian b ein g m oved to a B u d g et C oord i nat or th at is p l aced i n the C on fid ential/N on-Rep resented g roup . T h e n et G eneral F un d im p ac t of th ese fou r reclassifications is a saving s of $1,9 93 .

I n ad d it ion to th e reclassification s, t here are two n ew p ositions b ei n g p rop osed in the A d m inistrative S ervices D ep artm en t . A n I n form ati on Tech nolog y Techn ician i s b ein g p rop osed to su p p lem ent th e cu rrent 2 Tech nicians in th e d ivision to sup p ort the m any in itiatives th at I T t akes on in t h e servic e of all d ep artm ent s. O n e exam p le of th e n eed in this area is t hat two years ag o we d id n ot film any c om m it tee m eetin g s and now every com m ittee m eetin g i s st ream ed li ve an d record ed on our web site. I n ad d i ti on, every d ep artm en t w ould b e ab le t o id ent ify ad d i ti onal I T n eed s t h at h ave c om e ab ou t in th eir area i n l ast few years.

Th e oth er n ew p osition is a second Recreati on C oord in ator th at w ould oversee t h e Park M on itoring P rog ram and w ork w ith t he new Park Ran g ers b ein g p rop osed i n th e F Y 2 2/2 3

Page 4 of 280 ends

B u d g et. T he p osition wou ld also assist with facility reservations, act as the C ity's volu nteer coord inator, an d assist w ith n ew s p ec ial even ts su ch as Lig h t U p th e N ig h t (4 th of J u ly), L em on Festival, and E arth D ay.

P u b lic W orks
Th e p rop os ed b u d g et i n c lu d es ad d ing 4 F T E s and rem ovin g 3 p art -ti m e p osit ion s i n th e P ub lic Works D ep art m en t. T h e one p osi ti on t h at affects th e G en eral F u n d is a M ai n t en an ce Worker, w hich is p arti all y offs et b y t he red u c ti on of 3 p art tim e p osi ti ons i n O p eration s. I n th e Water F u nd , t h ere is a req ues ted ad d it ion for a Water Treat m en t O p erat or, a W ater M eter Tech nician, and an A s soc iat e E n g ineer. T h es e p osi ti on s wou ld assist in m ovin g forward w ater initiatives su ch as ch ang in g al l C i ty m eters to an A M I s yst em th at al low s read i ng from a d ist ance an d m oving forw ard wi th b id d i n g cap ital p roject s to en s u re t h e $15 .5 m illion 2 02 2 Wat er B ond s are ab le to b e sp en t in a tim ely m ann er.

P olice D ep artm ent
I n ad d ition to t he fu ll ti m e p osi ti on s d es crib ed ab ove, th e p rop os ed b u d g et in cl u d es $1 20 ,00 0 in fun d i ng for 4 p art -ti m e Park Ran g ers th at wou ld b e p laced in t he Pol ic e D ep artm en t. Th ese p osition s w ou ld p rovi d e p at rol li n g an d enforcem ent in C ity p arks t o en su re C ity ord in ances are follow ed . A ll th e p art -ti m e p os it ion s wou ld b e P C-8 32 c ert ifi ed , all ow in g cit ations t o b e w ritten i f n eces sary. I n ad d it ion t o t he salary i n c lu d ed i n th e b ud g et , t w o t ru cks are b ein g b u d g eted in t he F leet M ain ten an c e & Rep lacem ent I n tern al S ervi ce F u nd to p rovid e resou rces for these p osition s.

C lassification P lan U p d ate
A s p art of effect u at in g t h e p ers on n el c h an g es ou t li n ed in th e b u d g et, t he following job d escrip tions m ust b e ad d ed to or am en d ed in th e C ity’s C lassification P lan : A ccoun tan t, B u d g et C oord in ator, E xecu tive A ssistant I , Park Rang er, an d Recreation C oord inator.

F I S C A L I M P A C T S
Total avai lab le sources for F Y 22 /23 are p roject ed t o b e $1 48 ,24 2,1 30 and i s com p rised of p rojected reven u es an d tran sfers in . Th e t otal uses for F Y 2 2/2 3 are p rojec ted to b e $18 4,1 48 ,79 0 an d i nc lu d e op erat in g exp en d itu re b ud g et s, c ap i tal im p rovem en t p roject req u ests, an d tran sfers ou t. E xclu d ing transfers out, total ap p rop riation s b y fun d are $18 1,0 69 ,17 0. T he following tab le sum m arizes total end in g fu nd b alances b y fun d categ ory.

G eneral F un d
$3 83 ,37 0
S p ecial Reven ue F un d s
2 2,2 08 ,90 0
G eneral C ap ital I m p rovem en ts
1 9,3 93 ,93 0
E nterp rise F un d s
2 0,9 43 ,16 0
I n ternal S ervice F u nd
(3 ,68 2,0 60 )
S u ccessor A g en cy F un d
(11 ,31 2,9 80 )
Total
$4 7,9 34 ,32 0
T he foll ow in g tab le sum m arizes tot al ap p rop riation s b y fu nd (excluding inter- fund transfers):

G eneral F un d $5 2,2 56 ,12 0
H ousin g 3,9 82 ,44 0
P u b lic S afety A u g m entation 1,5 12 ,90 0
G as Tax 9,5 06 ,73 0

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M easure I 2,3 99 ,46 0
R M R A 9 52 ,83 0
H O M E I nvestm ent Partnersh ip P rog ram 3 55 ,00 0 C om m u nity D evelop m ent B lock G rant 7 96 ,20 0
Parking B u siness I m p rovem ent A rea 2 19 ,05 0
A ir Q u ality M anag em en t D istrict 1 63 ,66 0
P rop 3 0 1 50 ,00 0
C O P S 1,1 57 ,66 0
O th er G rants 6 35 ,38 0
O ffice of Traffic S afety 5 ,81 0
C al H O M E 6 75 ,00 0
A m erican Rescue P lan A ct (A R PA )4,1 41 ,21 0
G eneral C ap ital I m p rovem en ts 81 ,00 0
Park A cq uisition & D evelop m ent 1,2 90 ,04 0
S torm D rain D evelop m ent 2,0 06 ,10 0
S treet & Traffic Facility D evelop m ent 5 37 ,85 0
G eneral C ap ital P rojects 6 55 ,84 0
S treet & A lley Rep airs 8 92 ,51 0
Water U tility 4 4,2 63 ,70 0
S olid Waste U tility 1 5,8 19 ,44 0
S ewer Utility 1 5,0 66 ,32 0
S elf-F u nd ed Liab ility I nsurance 5,2 82 ,23 0
F leet M ain ten ance & Rep lacem ent 9 66 ,52 0
I n form ation System s 2,8 66 ,35 0
B u ild ing M aintenan ce & O p eration s 1,4 78 ,72 0 U A L & E m p loyee B enefits 7,5 83 ,45 0
S u ccessor A g en cy H ou sing 3,3 69 ,65 0
Total $18 1,0 69 ,17 0

A L T E R N A T I V E S
P rovid e altern ative d irection to staff.

AT TAC HM E NT S :

Description
1 - Resolution Approving and Adopting the Fiscal Year 2022-2023 Annual Budget 1a - Operating Budget Fiscal Year 2022-2023
2 - Resolution Approving the Appropriations L imit for F iscal Year 2022-2023 2a - Appropriations L imit S chedule A
3 - Resolution Approving and Adopting the General F und Reserve Policy 3a - Exhibit A - General Fund Reserve P olicy
4 - J ob Descriptions

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RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UPLAND, CALIFORNIA ADOPTING THE FISCAL YEAR 2022-
2023 ANNUAL BUDGET

WHEREAS, the City is required to adopt an annual budget for the Fiscal Year beginning on July 1, 2022 and ending on June 30, 2023; and

WHEREAS, a budget is a spending plan to match anticipated revenues for each fiscal year and is vital to the success of the City of Upland; and

WHEREAS, the City Manager has caused a budget document to be prepared and presented to the City Council; and

WHEREAS, the budget document has been placed on file in the office of the City Clerk and made available for public examination.

NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:

Section 1. The above recitals are true and correct and are incorporated herein by this reference.

Section 2. The City Council of the City of Upland approves and adopts the Fiscal Year 2022-2023 Annual Budget, set forth in Exhibit “A”, attached hereto and incorporated herein by this reference.

Section 3. The following funds, appropriations, and transfers, therefore, are hereby authorized for the fiscal year beginning July 1, 2022:

General Fund $ 52,626,120
Housing 3,982,440
Public Safety Augmentation 1,512,900 Gas Tax 9,506,730
Measure I 2,399,460
RMRA 952,830
HOME Investment Partnership Program 355,000 Community Development Block Grant 796,200 Parking Business Improvement Area 219,050 Air Quality Management District 163,660 Prop 30 150,000
COPS 1,157,660
Other Grants 635,340
Office of Traffic Safety 5,810 CalHOME 675,000
ARPA 6,585,830
General Capital Improvements 81,000

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Resolution No.

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Park Acquisition & Development 1,290,040 Storm Drain Development 2,006,100
Street & Traffic Facility Development 537,850 General Capital Projects 655,840
Street & Alley Repairs 892,510
Water Utility 44,263,700
Solid Waste Utility 16,084,440
Sewer Utility 15,066,320
Self-Funded Liability Insurance 5,282,230 Fleet Maintenance & Replacement 966,520 Information Systems 2,866,350
Building Maintenance & Operations 1,478,720 UAL & Employee Benefits 7,583,450
Successor Agency Housing 3,369,650
Total $ 184,148,790

Section 4. The City Manager is hereby authorized to make expenditures, including capital outlay items, provided for in said budget.

Section 5. The City Manager is hereby authorized to increase appropriations in those instances where there is an offsetting source of revenue such as when money has been received or put on deposit with the City.

Section 6. The City Manager is hereby authorized to approve continuing appropriations for capital improvement projects and other expenditures approved by the City Council but not yet expended prior to July 1, 2022.

Section 7. The City Manager is hereby authorized to redistribute allocated budgeted amounts within or between departments.

Section 8. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.

Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.

Section 9. Certification. The City Clerk shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions.

Section 10. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such

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Resolution No.

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decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.

Section 11. Effective Date. This Resolution shall become effective immediately.

PASSED, APPROVED and ADOPTED this 13th day of June, 2022.

Bill Velto, Mayor

AYES:

NOES:

ABSENT:

ABSTAINED:

ATTEST:

Keri Johnson, City Clerk

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City of Gracious Living

UPLAND, CALIFORNIA

ADOPTED BUDGET
FISCAL YEAR 2022-2023

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Table of Contents
City Manager’s Budget Message ..................................................................................................1 Budget Overview ..........................................................................................................................3 Financial Information
Budget Process ...........................................................................................................................14 Operating and CIP Budget Calendar ..........................................................................................18 Financial Policies .......................................................................................................................19 Fund Structure ............................................................................................................................26 Department/Fund Matrix ............................................................................................................27 City Profile
Strategic Goals ...........................................................................................................................28 Five-Year Financial Projection ..................................................................................................32 Budget Snapshot .........................................................................................................................37 Officials of the City of Upland ...................................................................................................38 Organizational Chart ..................................................................................................................39 Government Finance Officers Association Award ....................................................................40 History of Upland .......................................................................................................................41 City Demographics .....................................................................................................................42 Top 25 Sales Tax Producers .......................................................................................................44 Principal Property Taxpayers .....................................................................................................45 Budget Summaries
Summary of Changes in Fund Balance ......................................................................................46 Summary of Changes in Spendable Fund Balances ...................................................................47 Schedule of Revenues by Fund and Category ............................................................................49 Schedule of Revenue Detail by Fund .........................................................................................50 Schedule of Expenditures by Fund .............................................................................................57 Schedule of Expenditures by Fund and Category ......................................................................58 Expenditures by Department Program .......................................................................................59 Summary of Transfers ................................................................................................................61 General Government ...................................................................................................................62

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City Council ...............................................................................................................................64 City Treasurer .............................................................................................................................64 City Manager ..............................................................................................................................65 City Clerk ...................................................................................................................................68 City Attorney ..............................................................................................................................69 Administrative Services ...............................................................................................................73 Finance .......................................................................................................................................75 Information Systems ..................................................................................................................79 Human Resources .......................................................................................................................81 Self-Funded Insurance ................................................................................................................83 Library ........................................................................................................................................84 Recreation ...................................................................................................................................86 Development Services ................................................................................................................100 Planning ....................................................................................................................................102 Building and Safety ..................................................................................................................106 Weed Abatement ......................................................................................................................109 Economic Development ...........................................................................................................110 Housing ....................................................................................................................................113 HOME Investment Partnership Program .................................................................................116 Community Development Block Grant ....................................................................................117 Successor Agency ....................................................................................................................119 Police Department ......................................................................................................................126 Operations ................................................................................................................................128 Administrative Services ...........................................................................................................128 Special Services ........................................................................................................................129 Public Works ..............................................................................................................................143 Engineering ..............................................................................................................................145 Operations ................................................................................................................................146 Water Enterprise .......................................................................................................................158 Solid Waste .............................................................................................................................165 Sewer .......................................................................................................................................170

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Capital Improvement Program ................................................................................................180 Capital Improvement Projects Fiscal Year 2022-23 ................................................................183 Capital Improvement Project Descriptions (Fiscal Year 2022-23) ..........................................189 2020-21 Schedule of Positions ...................................................................................................207 Chart of Accounts
Fund Numbers ..........................................................................................................................212 Division Numbers ....................................................................................................................214 Object Numbers ........................................................................................................................218 Appendix
Glossary of Terms ....................................................................................................................221 List of Acronyms ......................................................................................................................225

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PROPOSED BUDGET
FY 2022-23

BUDGET MESSAGE

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City Manager’s Budget Message

Honorable Mayor and Council Members:

I am pleased to submit the proposed Fiscal Year 2022/2023 (FY 22/23) operating and capital budget for your review and consideration.

The COVID-19 pandemic has caused over two years of collective trauma, with families around the world experiencing widespread economic hardship, fear, debilitating illness, and the devastating loss of loved ones. As the pandemic began to take hold in early 2020, the U.S. economy reacted dramatically, which resulted in the unemployment rate skyrocketing to a peak of

14.8% in April 2020. The massive number of unemployed Americans triggered the sharpest economic contraction since the Great Depression, evidenced by the broadest measure of economic activity shrinking at an annual rate of 32.9% for the second quarter of 2020. Without question, the pandemic has challenged our City and community like never before. This challenge builds upon years of lean times for the City of Upland, which has made significant budget cuts and service reductions in order to achieve a balanced budget each year.

Fortunately, as we present this budget, the concerted efforts of federal, state, and local governments have pushed back against many of the negative effects caused by the pandemic. To date, the Federal Government has enacted six major bills, appropriating about $5.3 trillion, to help manage the pandemic and mitigate the economic burden on families and businesses. Of this stimulus, the City has directly received more than $2.5 million in CARES Act funding and has been allocated $15.2 million from the American Rescue Plan Act of 2021 (for restricted uses) through December 31, 2024. We are gratified to be receiving our fair share of federal funds, nevertheless vision and steady leadership are needed to bring the City together, strengthen our local economy, invest in our community, and keep the City on track to continued prosperity.

Under the judicious leadership of the City Council, the City continues to meet the fiscal challenges caused by the pandemic and has diligently worked to maintain and enhance revenues and reduce operational expenditures where possible. Furthermore, in spite of the continuing economic impact of the pandemic and resulting budget constraints, City departments continue to do an excellent job of providing services to the community with the resources they have.

This budget reflects the challenges of an economy with rising inflation. For the third consecutive year, the proposed budget is balanced with one-time funds, this year requiring a $2.4 million transfer from the American Rescue Plan Act (ARPA) Fund for basic and ongoing public safety personnel expenses. This has allowed Upland to maintain service levels our residents rely on, but will not be able to be sustained for a long period of time without additional revenues. The City 1

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continues to have a prudent reserve of 22.5% in conjunction with the General Fund Reserve Policy.

Upland has been wise to address its pension obligation through its BLAST Strategy, which will save close to $70 million in interest over the next 22 years as a result. The City has also established pension and OPEB stabilization trusts and funded them with over $4 million in assets.

Importantly, as the economy begins to even out, this budget demonstrates the City’s commitment to public safety by recommending the implementation of a Corporal Program, which will reclassify five vacant Police Officer positions to a Corporal/Detective level and add four Police Officer positions. The proposed Corporal Program will provide several benefits to the staff, department, and the community. First, the reclassification will increase opportunities within the department for employee development and training, enhancing officer retention. Second, the new positions will provide additional operational oversight, improving the effectiveness of officers in the field.

Finally, the additional staffing will supply a 20% increase in patrol staffing per shift, resulting in improved public safety this year. Additional funds will be needed to maintain these investments in public safety.

The proposed FY 22/23 budget is $52,496,120 in the General Fund and $146,473,450 (including Transfers Out) across all funds and $37,545,340 for capital projects. The requested funds will support the necessary operational and capital improvement project needs of each department. This budget represents an increase in level of services compared to FY 21/22, with additional changes in staffing (as notated in the attached FY 22/23 Schedule of Positions). Projected revenues are $50,181,580 in the General Fund and $148,242,130 (including Transfers In) across all funds.

In closing, the preparation of the proposed annual budget was made possible by the dedicated efforts of the Administrative Services Department, department directors, and their staff. Credit also must be given to the Mayor and City Council for their support of maintaining the highest standards of professionalism in the management of the City of Upland’s finances.

Respectfully submitted,

Michael Blay
City Manager

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BUDGET OVERVIEW

Projected citywide operating revenues of $145,292,510 represent a decrease of $2.7 million compared to the prior year. The majority of the decrease is the result of an intentional paydown of the City’s Unfunded Accrued Liability in the prior fiscal year, which is the main reason why the UAL and Employee Benefits Internal Service Fund is requested $2.6 million less in payments from other funds of the City this year. The funds with the highest revenues are: General Fund ($50,181,580), Water Utility Fund ($31,633,050), Solid Waste Utility ($16,285,000), and Sewer Utility Fund ($10,430,600). Revenue by fund type is depicted in the following figure:

The FY 22/23 operating and capital expenditure budget totals $181,199,170, including Capital Improvement Project (CIP) requests. Many funds make up the total budget amount, with the largest being the General Fund in the amount of $52,386,120, or 28.9% of the organization’s total.

Other major fund expenditures include the Water Utility Fund ($44,263,700), Solid Waste Utility ($15,819,440), Sewer Utility Fund ($15,066,320) and Gas Tax Fund ($9,506,730). In summary, appropriations reflect a total increase of $2,603,900 or 1.5% from the prior year. The most notable expenditure increases are: $6.5 million in the General Fund and $5.5 million in ARPA (American Rescue Plan Act) Special Revenue Fund.
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Personnel costs inclusive of all City funds are increasing by $2.6 million from $39.8 million to $42.4 million. The majority of the increase relates to negotiated pay and benefit increases ($2.7 million). In total, the number of authorized FTE positions from the 2022-23 amended budget increased by 6.0 to 263.0 FTE’s.

Maintenance and operation appropriations (excluding the UAL & Employee Benefits Internal Service Fund) are increasing by $6.1 million from $91.7 million to $97.8 million. $3.1 million of the increase is attributed to increases in utility funds’ costs of operation, and another $1.7 million relates to General Fund debt service taken on to make additional discretionary payments to CalPERS to reduce the City’s UAL.

Capital Projects & Equipment appropriations are decreasing by $6.3 million from $47.2 million to $40.9 million. The decrease is primarily due to the implementation a 5-year Capital Improvement Project listing. While projects over the 5 years still amount to more than the prior years’ listing, the current year reflects lower, as only capital projects budgeted for FY 22/23 are in the listing this year, while multiple years of capital projects were recorded previously. This is most obviously seen in the Capital Projects Funds, where $3.3 million less in capital projects are budgeted, and in the Water Fund, where $1.9 less is budgeted despite the implementation of Fund 639, the Water Bond Capital Projects Fund, where the $15.5 million 2022 Water Bond capital projects are being budgeted.

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GENERAL FUND

The ending Unassigned General Fund balance is projected to be $383,370. This does not include funds that are held in Restricted, Committed or Assigned categories in conjunction with the City’s General Fund Reserve Policy. A summary of most General Fund reserves projected as of July 1, 2022 is illustrated in the following table:

General Fund - Reserves
Restricted (Section 115 Trusts) $4,666,106
Committed:

Economic Uncertainty Reserve 10,300,000
Emergency Disaster Contingency Reserve 1,000,000
General Plan Update Reserve 502,000
Others 590,000
Committed Total $12,392,000

Assigned:

Building Replacement and Maintenance
Reserve
1,480,000
Infrastructure Improvement Reserve 3,011,000
Assigned Total $4,491,000
Total General Fund - Reserves $21,549,106

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General Fund Revenues and Transfers In:

Total General Fund operating revenues are projected to be $50,181,580, an increase of $1.3 million from the prior year amended budget. The General Fund revenues by source are depicted in the following figure:

• Property Taxes
Property tax revenues are projected to be $19,267,650. This estimate reflects an overall increase of $681,440 over the prior year budget.
• Sales Tax
Forecasts provided by our sales tax consultant, HdL Companies, estimate that retail sales tax revenues will be $18,404,120, an increase of $250,490 from the prior year amended budget.
• Licenses & Permits
Revenue from Licenses and Permits is estimated to be $1,702,670, which is a decrease over the prior year budget of $248,340.
• Miscellaneous Changes
Other changes include an increase of $67,960 for revenue from Use of Money and Property 6

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and $43,890 in Other Revenue, and decreases in Fines & Forfeitures of $24,330 and in Charges for Services of $93,770.
• Transfers In
Transfers In are estimated to be $2,444,620 from the American Rescue Plan Act (ARPA) Special Revenue Fund. The Transfer In amount covers the General Fund’s shortfall and will be used for Police Department salaries and benefits to maintain current public safety staffing levels. This public benefit expense is allowable under ARPA’s revenue loss calculation rules.

General Fund Expenditures and Transfers Out:

General Fund operating expenditures are projected to be $52,256,120 which is $6.5 million higher than the prior year’s original budget. The change is due to increases in budgeted personnel services (not including PERS UAL) totaling $3.1 million and an increase in operations and maintenance totaling $3.4 million. The General Fund expenditures by department are depicted in the following figure:

• Personnel
General Fund personnel costs are projected to total $22.4 million, an increase of $3.1 million over the prior year adopted budget. The increase is primarily due to negotiated pay and benefit increases ($1.4 million), a remittance ($1.2 million) to the City’s PARS Section 115 Pension Trust in conjunction with the Pension Funding Policy, and employee 7

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step increases ($0.5 million). Not included in this figure is the reduction of $2.6 million in the City’s UAL and Employee Benefits Internal Service Fund as a result of lower unfunded accrued liability expenses. This reduction has occurred due to an intentional paydown of over $45 million of the City’s UAL with CalPERS in conjunction with the BLAST Strategy during the 2021/22 fiscal year.
• Maintenance and Operations (M&O)
The maintenance and operations budget is $29,872,930, which is an increase of $3.4 million over the prior year adopted budget. The largest increase is attributed to higher General Fund debt service ($1.7 million) taken on to make additional discretionary payments to CalPERS to reduce the City’s UAL. Other increases include $305,000 for higher self-insured retention costs for liability and worker’s compensation insurance increases, $200,000 for a body-worn camera software upgrade, a $150,000 increase for elections-related costs in November, a $150,000 increase in Library costs in conjunction with the current outsourced contract, $130,000 allocation to a Building Replacement and Maintenance Reserve to comply with the General Fund Reserve Policy and $115,000 in increased costs anticipated as the City pursues a new landscape maintenance contractor.

SPECIAL REVENUE FUNDS

HOUSING FUND
The Housing Division is responsible for the administration of the Low- and Moderate-Income (LMI) Housing program. Available resources provide for the development and implementation of housing programs to increase and improve or preserve affordable housing within the City’s corporate limits for persons or families of low- to moderate-income. The total appropriations for the Housing Fund are $3,982,440.

STREET MAINTENANCE AND IMPROVEMENT FUNDS
The City receives three sources of funds for street infrastructure improvements. The Gas Tax Fund and Road Maintenance Rehabilitation Account Fund accounts for gasoline taxes received from the State of California, and the Measure I Fund accounts for the City’s share of San Bernardino County revenue received from the State of California from a special 1/2% sales tax. For FY 22/23, the total budget for street improvement projects from these sources is $12,859,020, with $11,445,340 of that budgeted specifically for street-related capital projects. Some of the projects of interest include: City/County North Shared Roadways, Arrow Highway Rehab (Benson to Mountain), Arrow Highway Rehab (Mountain to San Antonio), 17th Street Reconstruction (San Antonio to Euclid), Mulberry Avenue Reconstruction (Foothill Blvd. to Pine Street), Citywide Pavement Maintenance 2021/2022 and Palm Ave (9th Street to Arrow Highway).

HOME/CALHOME INVESTMENT PARTNERSHIP PROGRAM
The Home Investment Partnership Program and CALHOME FY 22/23 budgets are $355,000 and $675,000 respectively. These funds revenues are received from the State of California and the U.S. Housing and Urban Development Department. They are required to be used to assist limited income individuals and families in the purchase of their first home or to make needed improvements and repairs to their current homes.

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COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (CDBG)
This year’s CDBG program has a total allocation of $796,200. The recommendations for these funds have been processed and approved by the CDBG Committee, and the City Council has reviewed and supports the recommendations. These funds continue to address many important community needs that may not otherwise be possible. Programs such as Code Enforcement, Graffiti Removal, and Homeless Services are examples of how these funds directly benefit the Upland community.

CITIZEN’S OPTION FOR PUBLIC SAFETY (COPS)
This fund is used to account for the receipt of funds generated by AB3229 and expenditures must be used for front-line police activities. The total appropriations are $1,157,660 and total revenues are anticipated to total $120,000.

AIR QUALITY MANAGEMENT DISTRICT
This fund accounts for the receipt of funds generated by AB2766, which sets forth requirements for the reduction of air pollution from mobile sources as promulgated by the South Coast Air Quality Management District. The total appropriations are $163,660, and total estimated revenues are $99,400.

CAPITAL PROJECT FUNDS

Capital Project Funds include: General Capital Improvements, Park Acquisition and Development, Storm Drain Development, Street & Traffic Facility Development, General Capital Projects, and Street & Alley Repairs. The total budget is $5,463,340. Projects of interest include: Dog Park Improvements, Downtown Urban Space, Citrus Park Snack Bar Roof Replacement, Shade Structures for Picnic Areas, Arrow Highway Storm Drain Improvements (Benson Avenue to Fairwood Avenue), I-10 & Monte Vista Avenue Interchange Project, I-10 & Euclid Avenue Interchange Project, and the Animal Shelter and Police Department Generator Improvements. The revenues for these funds are derived mostly from development impact fees and are projected to be $2,227,200.

ENTERPRISE FUNDS

WATER UTILITY FUND
The Water Utility Fund budget includes the cost of delivering water and service to City customers and maintaining the system. Total Water Utility appropriations are $44,263,700. Proposed capital improvement projects of interest for FY 22/23 include: Water Master Plan, Reservoir Replacement at 17th Street, 17th Street Water Main (Laurel to Euclid) & Service Replacements (San Antonio to Euclid), Plant 13 Chlorine Generation, Plant 5 Vehicular Gate Replacement, SCADA Antenna Replacement and Equipment, 9th Street Water Main Replacement (Benson to Mountain), and Storm Water Trash Capture Devices in Catch Basins. Revenues are projected at $31,633,050 and year-end fund balance is projected to be $12,552,890.

SOLID WASTE UTILITY FUND
The Solid Waste Utility Fund budget includes the cost of providing refuse service to City customers. Revenues are projected at $16,285,000 and appropriations and transfers out are $16,084,440. The Solid Waste fund balance is projected to be $255,170. 9

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ENVIRONMENTAL ENTERPRISE FUND
The Environmental Enterprise Utility Fund operating budget includes the cost of providing sewer services to City customers and to maintain the system. Total appropriations are $15,066,320.

Significant capital improvement projects include Landfill Flare Modifications, Sewer Master Plan, Citywide Sewer Rehabilitation and Manhole Adjustments to Grade Shared City/County Roadways. Revenues and transfers in are projected to be $10,695,600, leaving an estimated year- end fund balance of $8,135,100.

INTERNAL SERVICE FUNDS

SELF-FUNDED LIABILITY INSURANCE FUND
This fund contains revenues (derived from charges to other funds) and expenditures of $5,282,230, an increase of $463,880 from the prior year adopted budget. For FY 22/23, Self-Funded Insurance expenses have been allocated to other funds based on the fund’s percentage of salary cost.

FLEET MAINTENANCE AND REPLACEMENT FUND
The Fleet Maintenance and Replacement Fund provides for the operation of the City’s Fleet Management division, which accounts for repairs, routine maintenance and replacement of City vehicles. In FY 22/23, the Fleet Maintenance and Replacement Fund expenses are projected to be at $966,520, with revenues are generated from charges to other funds. The fund is projected to have a balance of $795,520 at year-end, which will be used to purchase replacement vehicles in future years.

INFORMATION SYSTEMS FUND
The Information Systems Fund provides for the operation of the City’s Information Systems Division, including maintenance of the City’s communications network, computer network and hardware infrastructure. In FY 22/23, Information Systems expenditures are expected to be $2,866,350. Revenue will be generated from charging other funds and receipt of PEG Fees. The projected fund balance at year end is $1,935,890 and will be used for information technology projects, upgrades and replacements in future years.

BUILDING MAINTENANCE & OPERATIONS FUND
The Building Maintenance & Operations Fund provides for the operation of the City’s Building Maintenance & Operations Division which maintains the City’s facilities. In FY 22/23, operations costs and maintenance of all city facilities are expected to total $1,478,720 while revenues (charges to other departments/funds) are expected to total $995,340. Fund balance is projected to be $536,420 at year end.

UAL AND EMPLOYEE BENEFITS FUND
The UAL and Employee Benefits Fund provides for the allocation and charging of Unfunded Accrued Liability (UAL) pension costs and other employee benefits costs internally among the City’s various functions. In FY 22/23, UAL and employee benefits costs are expected to be $10,168,860. This is a decrease of $2,585,410 from the prior years’ budget, thanks to the implementation of the BLAST Strategy, and the corresponding decrease in unfunded accrued liability payments required to CalPERS.

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LONG TERM FINANCIAL PLANNING

A budget is a fiscal plan that establishes anticipated revenue and expenditures for accomplishing a variety of services over a given time frame. While the City of Upland prepares a one-year budget, we cannot lose sight of our long-term needs. It is critical to safeguard our operating reserves, address any fiscal weaknesses, and make strategic financial decisions to ensure we have a resilient City over the long-term. It is important that we continue to refine our financial strategy with the goal of being a resilient and fiscally responsible City. How well we are able to define our strategy now will enable us to more proactively address our financial concerns and prevent the need for less desirable reactionary approaches in the future.

To aid in this strategic process, the City commissioned a resident satisfaction survey in 2021 to gauge constituent interest in service priorities, among other items. Resident priorities included maintaining local streets and alleys and repairing potholes, keeping public areas clean and free of graffiti, providing quick responses to 9-1-1 emergencies, reducing gang activity and drug-related crimes, addressing homelessness and repairing sidewalks and curbs. Respondents were also interested in preventing cuts to basic services, including public safety, roads, and programs for children and seniors. The City is using these resident priorities to inform Council’s strategic actions on identified priorities.

Addressing long term financial concerns has been a priority for the City of Upland for at least ten years. The long-term priorities are:

1. Maintain a balanced operating budget in order to avoid dipping into existing reserves.

2. Maintain operating reserves at of 22.5% of budgeted operating expenditures.

3. Address unfunded liabilities for CalPERS pension and other postemployment benefits (OPEB). At 3/31/2022, pension and OPEB trust balances were $2,819,015 and $1,847,091, respectively.

4. Provide necessary funding for infrastructure maintenance and improvements. One-time federal funds and prior year surpluses have allowed us to start making a dent in improving the health of our deteriorating infrastructure. We have been focusing on improvements that will save the city money in future years and on revenue generating facilities.

5. Provide funding for additional public safety services. We are currently focusing on the training and safety of our officers.

In an effort to plan for the future, this year’s budget includes a 5-year financial projection. The projection includes the additional 6.0 (FTE) positions requested as part of the budget. It does not assume any other increase in service levels. It also does not provide for additional needs such as addressing deteriorating infrastructure.

The projection does take the existing FY 22/23 budget and factored in known increases to personnel costs, along with revenue and expenditure assumptions for the future based on the best available information, including the impacts of ARPA funding on current and projected revenue sources. The 5-year financial projection does not include the use of money from the City’s Section 115 Trust that was established to address the City’s pension obligation. The projection also does not include any additional revenue associated with new development or future grant opportunities. 11

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The chart below reflects the effect of ARPA funding on the Spendable Fund Balance of the General Fund over the next five years.

† Note: Spendable fund balance includes committed, assigned, and unassigned fund balance.

With the use of approximately $8.2 million in ARPA funding through December 31, 2024, the City will be able to increase public safety service levels while maintaining a balanced budget.

However, beginning with the 2024-2025 fiscal year, ARPA funding will no longer be available.

Current deficits show that the City will need to identify additional revenue sources or will need to reduce expenditures in order to balance the budget.

Starting in FY 25/26, without additional revenue or service reductions, the General Fund’s Spendable Fund Balance is projected to decrease from $17.5 million at the end of the 2024-2025 fiscal year (31.8% of operating expenditures) to $13.9 million (24.6% of operating expenditures).

Additionally, in the following fiscal year, the General Fund’s Spendable Fund Balance is projected to decrease from $13.9 million to $9.5 million (16.3% of operating expenditures). Therefore, in order to provide additional funding for police services and infrastructure maintenance and improvements, the City will need to either further reduce spending or find additional sources of local revenue. Staff is evaluating alternatives on an ongoing basis for reorganization, cost savings measures, and other efficiencies that will result in reduced spending; however, given the years of ongoing cost reductions, the potential for a great savings impact is limited.

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While it is clear that progress has been made toward reaching financial goals, there is still quite a distance between the City’s current position and long-term financial goals. Moreover, while funding from ARPA has delayed the need for immediate service reductions, structural imbalances will need to be addressed in the coming years.

To identify just how significant ARPA funding has been on the City’s long-term financial health, a 5-year projection was run assuming current revenues and expenditure trends remain consistent.

† Note: Spendable fund balance includes committed, assigned, and unassigned fund balance.

This comparative chart indicates that without the ARPA funding, the City’s financial situation would be structurally imbalanced, with revenues less than expenditures for the next five years.

CONCLUSION

Under the leadership of the City Council, the City's fiscal condition remains stable and is improving as we continue along a steady course into the coming fiscal year. As mentioned, the challenges of the COVID-19 pandemic are beginning to recede into history and the Council’s thoughtful and measured response to the crisis has kept the City on a sustainable financial path while continuing to provide core services to its citizens. Looking forward to the next five years, we cannot lose sight of our long-term needs and it is critical to safeguard our operating reserves, address any fiscal weaknesses, and make strategic financial decisions to ensure we have a resilient City over the long-term.
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PROPOSED BUDGET
FY 2022-23

FINANCIAL INFORMATION

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BUDGET PROCESS

Purpose of the Budget Document

The Budget sets forth a strategic resource allocation plan that is distinctly aligned with community goals, preferences, and needs. The Budget is a policy document, financial plan, operations guide, and communication device all in one.

The Budget:

♦ Determines the quality and quantity of City programs and services. ♦ States expenditure requirements for the allocation plan and estimated available revenues to finance it.
♦ Sets targets and provides a means of measuring accomplishments against goals, actual versus planned outcomes.
♦ Serves as a communication device for elected officials, the public, and the City organization that promotes the City’s vision and direction, fiscal health and vitality, and what the public is getting for its tax dollars.

Through the Budget document, the City demonstrates its accountability to its residents, customers, and community.

The Relationship Between the Operating Budget and Capital Improvement Program

The Budget document is comprised of both the Annual Operating Budget and the Capital Budget.

The development of the two budgets, however, takes place on two separate, albeit interrelated, tracks.

The Operating Budget is the complete budget used to finance all day-to-day operations and obligations of the City. The budget includes general government administration and operations, debt service, capital expenditures, and transfer payments for a particular fiscal year. The funding for this budget is derived from taxes, fees, licenses, fines, and inter-governmental revenues (state and federal).

The Capital Improvement Program (CIP) is a multi-year instrument that drives the identification, evaluation, and financing of capital infrastructure that is in need of renovation, repair and/or construction. Capital projects range from road maintenance or construction to the renovation of municipal buildings, recreation centers, and water main and sewer system replacement. The CIP relates these capital project needs to the financial sources that will support their realization and the timeframe in which both the financial and work will take place. Capital improvement projects typically carry considerable future impact, meaning, they have a life span of at least five years or more. They are usually financed over a longer period of time, in effect spreading the cost of the project across a generation of users.

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Guide to the Budget

The City of Upland’s fiscal year begins each July 1st and concludes on June 30th. The development of the annual budget is comprised of distinct phases. First, the City Council identifies the priority service requirements for the community, during the Strategic Goals workshop. Second, is the planning and assessment that includes both strategic plan development and data gathering, such as performance measurements. A select group of performance measures used in the development process are featured in the budget document.

The budget kickoff begins in mid-January at a meeting to which the City Manager, Finance staff, and all Department Heads and their budget staff attend. The City Manager briefs the participants on policy directives and general budgeting guidelines. Finance staff follows with a discussion on the technical and procedural aspects of preparing the budget. Departments have approximately two months to prepare their budgets.

Subsequent to budget submittals, the City Manager, Finance staff, and Department Heads hold meetings to discuss proposed budgets. Participants discuss the budget, including reductions or other significant changes, goals and objectives, and performance measures.

Once the City Manager reviews have taken place and all departmental budget issues are resolved, the Finance staff prepares the preliminary budget. The Assistant City Manager presents the proposed budget at a special meeting. Following the Committee review, the Assistant City Manager presents the proposed budget to the City Council, at which time the City Manager will recommend to the City Council the adoption of the budget with any necessary revisions made between the time of publication of the preliminary budget and the date of adoption.

The budget plays a crucial role in communicating to elected officials, City employees, and the public, the City’s plans for the use of its resources. Budgets are complex documents that can be difficult to grasp at first hand. Although the City has made every effort to make the document as easy to navigate as possible, some discussion as to how the book is organized is deemed warranted.

This section provides the reader with some basic understanding of the constituent components of a budget document.

Organization of the Budget Document

The Budget document is comprised of the following sections:

City Manager’s Budget Message

The City Manager’s Budget Message is a transmittal letter addressed to the Mayor and City Council that introduces the FY 2022-23 annual budget. The Budget Message outlines the organizing principles of the budget and the assumptions on which the budget was developed. The City Manager’s Budget Message aims to provide the reader with highlights of the operating and capital budgets, and sufficient context to understand how and why the budgetary changes occurred between fiscal years.
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Financial and Budgetary Policies

This section provides the reader an understanding of the City’s financial policies and budgetary practices. It describes the purpose of the budget, its development, reading the budget, and the financial and operational policies followed in the budget development and planning process.

Additionally, this section includes the resolutions for the appropriations limit and adoption of the budget and a matrix illustrating department/fund relationships.

General Information

The City Profile provides a snapshot of the City for which the Budget has been developed. The purpose of this section is to give the reader an at-a-glance look at the City’s organizational structure, demographic data, and other statistics.

Budget Summaries

The budget summaries section is the nuts and bolts of the Budget. It provides the following information: Summary of Changes in Fund Balance, Schedule of Revenues by Fund and Category, Schedule of Revenue Detail by Fund, Schedule of Expenditures by Fund, Schedule of Expenditures by Fund and Category, Expenditures by Department Program, and the Summary of Transfers.

Department Summaries

The Department Summaries contain detailed budget information for the basic organizational units of the City, its departments. Each department summary presents the following information:

♦ Mission Statement - Each department has formulated a mission statement that presents the “what, for whom, and why” the department exists.

♦ Expenditures by Category - The table and graph provide information on budgeted expenditures organized by the following categories: personnel, maintenance & operations, capital outlay, and capital improvement projects.

♦ Expenditures by Funding Source - The table and graph provide information on the funding sources for the budgeted expenditures.

♦ Goals and Objectives - Departments are comprised of smaller organizational units that allow the department to attain its mission.

♦ Performance Measurements - Each department has established performance measures for assessing progress made toward achieving goals. These measures are used during the budget process to ascertain program performance, workload, and future targets.

♦ Major Accomplishments - This section lists a department’s achievements over the past fiscal year.
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♦ Expenditure Summary by Division – This section lists the various divisions and related expenditures which make up the department.

♦ Expenditure Summary by Object Code – This table provides line-item budgetary detail for the department.

Capital Improvement Program

This section looks at the City’s capital improvement program, funding sources, project highlights, and the specific projects for which funds are allocated for the budget year for the next five years.

Schedule of Positions

The Schedule of Positions section includes the titles of the Full Time Equivalent (FTE) positions authorized for each department. A comparative table that provides four years of data is also presented.

Chart of Accounts

This section provides a list of the City’s funds, divisions, and object codes.

Glossary of Terms

Budget documents may be difficult to read and may contain terms unfamiliar to the reader. This section covers key terms used throughout the budget document and in the budgeting process in general.

List of Acronyms

A list of acronyms used throughout the budget document is included.

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Date Day Responsibility Action
December 8, 2021 Thursday Finance FY 2022-23 Munis Budget Projection ready and available for departments.

December 13, 2021 Monday Finance FY 2022-23 Salary and benefit worksheets are distributed to Department Heads.

January 6, 2022 Thursday Departments Departments submit revisions to FY 2022-23 salary and benefit allocations
January 10, 2022 Monday City Manager and Finance FY 2022-23 Budget kickoff meeting with City Manager, Assistant City Manager, Finance Officer, and Departments.

Budget worksheets and instructions are distributed.

January 24, 2022 Monday Departments Departments submit FY 2022-23 new positions and reclassification requests to Human Resources.

January 24, 2022 Monday Departments Departments submit FY 2022-23 Internal Service Funds requests to IT and Public Works.

February 3, 2022 Thursday Human Resources Human Resources submits approved FY 2022-23 new position/reclassification requests to Finance.

February 10, 2022 Thursday Departments Departments submit budget, enter FY 2021-22 expenditure/revenue projections and FY 2022-23 proposed expenditure budget and revenue estimates in Munis.

February 17, 2022 Thursday Public Works Public Works Department submits Fiscal Year 2022-23 Capital Improvement Project budget (Schedules emailed to Finance and budget entry in Munis).

March 1, 2022 Tuesday Departments Departments submit FY 2022-23 narratives, goals and objectives, performance measures and major accomplishments.

February 21 - March
29, 2022
Finance Finance prepares First Draft of budget summaries.

March 30 - April 14,
2022
City Manager, Finance,
Department Representatives
City Manager, Assistant City Manager, Finance and specific Department staff members assigned with budget preparation meet with departments to discuss revenues and operating and CIP budgets.

April 21, 2022 Thursday Finance Finance completes Second Draft of budget summaries.

April 28, 2022 Wednesday Finance Finance Committee Budget Presentation - Finance presents key elements of the FY 2022-23 Proposed Budget
April 28, 2022 Thursday Departments Department PowerPoint slides due for the budget workshop presentation.

May 9, 2022 Monday City Manager, Finance and
Departments
City Council Workshop - FY 2022-23 Proposed Budget.

June 13, 2022 Monday City Manager, Finance and
Departments
Budget Adoption - Proposed budget presented to the City Council for formal adoption of the Fiscal Year 2022-23 Budget and Appropriations Limit.

City of Upland
Operating and CIP Budget Calendar
Fiscal Year 2022-23
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FINANCIAL POLICIES
The City of Upland was incorporated on May 15, 1906, under the general laws of the State of California and enjoys all the rights and privileges pertaining to “General Law” cities. The City is governed by an elected five-member board. Included within the financial reporting entity of the City are the Successor Agency to the Upland Community Redevelopment Agency and the Upland Public Financing Authority.

Basis of Accounting and Budgeting
The City’s accounting system is organized on a fund basis. Each fund is a separate accounting entity with a self-balancing set of accounts recording its assets, liabilities, fund equity, revenues, and expenditures. The funds are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Governmental funds are classified into three broad categories: governmental (general, special, debt service, and capital improvement projects), proprietary, and fiduciary funds. Governmental funds include activities usually associated with typical or local government operations. Proprietary funds are financed and operated in a manner similar to private business enterprises, where the intent is to recover the cost of providing goods and services from user charges. Fiduciary funds are utilized in situations where the government is acting in a fiduciary capacity as a trustee or agent.

The City’s accounting and budgeting systems are in compliance with the Generally Accepted Accounting Principles (GAAP). This means that the modified accrual basis of accounting is used for governmental fund types and that the accrual basis of accounting is used for proprietary fund types. These funds are described as follows:

General Fund (Fund 101)
The General Fund is the City’s primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The General Fund finances basic services to residents, including police, library, and recreation.

Special Revenue Funds
Housing (Fund 201) - This fund accounts for the housing activities of the City that were previously accounted for in the redevelopment agency low and moderate income housing fund.

SB509 Public Safety Augmentation (Fund 203) - This fund accounts for the half-cent sales tax enacted by Proposition 172 and SB509. Funds are used to cover operational expenditures of the Police Department.

Gas Tax (Fund 204) - This fund accounts for State gasoline taxes received by the City. These funds may only be used for street maintenance, right-of-way acquisition, and street construction.

Gas Tax funds are used for capital projects established within the Gas Tax Fund. 19

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Measure I (Fund 205) - This fund accounts for revenues which were approved by the San Bernardino County voters in a General Election in 1989 authorizing a one-half percent (1/2%) sales tax on all retail transactions within the incorporated and unincorporated territory of the County of San Bernardino. It was approved originally for a period not to exceed twenty years but in 2004, was extended through 2040. These proceeds are restricted solely for county-wide transportation improvements and traffic management programs.

Road Maintenance Rehabilitation Account (RMRA- Fund 206) - This fund accounts for State gasoline taxes received by the City as a result of the passage of the Road Repair and Accountability Act of 2017, better known as SB-1. These funds may only be used for street maintenance, right- of-way acquisition, and street construction. RMRA funds are used for capital projects established within the RMRA Fund.

Home Investment Partnership Program (Fund 208)/CalHome (Fund 222) - These funds account for housing rehab grants from the California Department of Housing and Community Development. These grants are then loaned to local citizens for single-family home rehabilitation, neighborhood restoration, first-time homebuyers, tenant-based assistance, and rental rehabilitation programs.

Community Development Block Grant (CDBG- Fund 209) - This fund accounts for receipt and disbursement of the Community Development Block Grant Program funding by the United States Department of Housing and Urban Development. Program accountability follows the guidelines of Office Management and Budget Circulars A102 and A87.

Parking Business Improvement Area (PBIA- Fund 210) - This fund accounts for revenues received from an additional levy on the general business license tax imposed on businesses located in the downtown area and is to be used for the acquisition, construction, and maintenance of parking facilities for the benefit of the area.

Air Quality Management District (Fund 211) - This fund was established to account for the receipt and disbursement of funds generated by Assembly Bill 2766 which sets forth requirements for reduction of air pollution from mobile sources as promulgated by the South Coast Air Quality Management District (SCAQMD).

Proposition 30 (Fund 215) - This fund accounts for the financial activity related to the City’s share of Proposition 30 (SB109) monies restricted for local law enforcement with a portion of a State income tax increase to be utilized for costs associated with parolees and probationers.

Citizen’s Option for Public Safety (COPS- Fund 216) - This fund is used to account for the receipt of funds generated by AB3299 and the use of which is restricted for front-line police activity.

Other Grants (Fund 217) - This fund accounts for receipts and expenditures of money for various grants.

Office of Traffic Safety (Fund 218)/ Other Public Safety Grants (Fund 219)/ BSCC Budget Act (Fund 225)/ Office of Justice Programs (Fund 227) - These funds account for receipts and expenditures of money for various public safety grants from Local, State, and Federal agencies. 20

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Asset Forfeiture (Fund 220)/ Asset Forfeiture Federal Treasury (Fund 223)/ Asset Forfeiture State (Fund 224) - These funds account for receipts and expenditures of money to police activities.

CARES Act Grant (Fund 226) - This fund accounts for receipt and disbursement of the Coronavirus Aid, Relief, and Economic Security Act in response to the economic fallout of the COVID-19 pandemic.

ARPA (Fund 229) - This fund accounts for receipt and disbursement of the American Rescue Plan Act of 2021 in response to the economic fallout of the COVID-19 pandemic.

Debt Service Funds
Upland Public Financing Authority/City of Upland Public Financing Authority (Fund 301) - The Upland Public Financing Authority is a joint exercise of powers under the laws of the State of California, authorized to issue bonds under the Mello-Roos Local Bond Pooling Act of 1985 (Article 1 through 4, Section 6500, Chapter 5, Division 7, Title 1 of the State of California Government Code). The City of Upland and the Successor Agency (formerly known as Upland Community Redevelopment Agency) formed the Financing Authority by execution of a joint exercise of powers agreement to provide financing by agreements and loans to the Agency for various project purposes. In January 2021, City Council authorized the creation of the City of Upland Public Financing Authority. The City of Upland and the Upland Parking Authority formed the Financing Authority by execution of a joint exercise of powers agreement to provide financing by agreements and loans to the City for various project purposes.

Capital Projects Funds
Capital projects funds are established to account for acquisition and construction of capital facilities other than those financed by proprietary funds.

General Capital Improvements (Fund 420) - This fund was established under the provision of Section 53731 of the Government Code and Section 3.44.050 of the Upland Municipal Code to account for projects for the general government and police and are supported by Development Impact Fees from new development.

Park Acquisition and Development (Fund 421) - This fund accounts for all revenue from the Dwelling Unit Construction Tax, in accordance with Section 3.44.020 of the Upland Municipal Code, which must be used for the acquisition and development of park facilities within the City of Upland.

Storm Drain Development (Fund 422) - This fund, established by Section 3.44.040 of the Upland Municipal Code, is used to account for development impact fees which are set aside to fund storm drain facilities that serve new development.

Street and Traffic Facility Development (Fund 423) - This fund is supplementary to the Gas Tax and Public Transportation Funds. This fund was established under Upland Municipal Code Section 3.44.030 to pay for the city of Upland’s fair share of regional transportation costs in the San Bernardino County Transportation Authority (SBCTA) congestion management program.

The revenue source of this fund is development impact fees. 21

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General Capital Projects (Fund 425) - This fund was established to account for projects of a general nature which are funded by the General Fund.

Street and Alley Repairs (Fund 426) - This fund was established to account for projects for street and alley repairs funded by waste management agreement.

Energy Efficiency Capital Improvement Projects (Fund 427) - This fund was established to account for the proceeds of California Renewable Energy Bonds and lease proceeds strictly to be used for the construction and implementation of energy saving improvements. These improvements include solar panel installations on various municipal structures, the installation of energy efficient HVAC systems, and the installation of energy efficient lighting and control systems.

Proprietary Funds and Fiduciary Funds
Proprietary fund revenues and expenses are budgeted and recognized on the accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and measurable. Expenses are recognized in the period incurred, if measurable.

Fiduciary or private-purpose trust funds are reported using the economic resources measurement focus and the accrual basis of accounting.

Successor Agency (Fund 805) - This fund accounts for the activities of the Successor Agency to the Upland Community Redevelopment Agency, including but not limited to the accumulation and disbursement of monies to meet debt service requirements.

Enterprise Funds
Water Utility (Fund 639/640) - This fund accounts for the sale of water to Upland’s citizens and businesses and also records expenditures for water capital improvement projects.

Solid Waste Utility (Fund 641) - This fund accounts for the refuse pick-up services provided by private contract including billing and collection for commercial customers. Residential billing and collection are accomplished by City staff. Activities include recycling and green waste programs.

Sewer Utility (Fund 645) - This fund records all City sewer service transactions and includes the additional services of street cleaning, tree trimming, storm drain maintenance and NPDES programs.

Internal Service Funds
Self-funded Insurance (Fund 751) - This fund accounts for self-funded insurance for general and worker’s compensation claims. City Departments are charged for the services provided or benefits received from this fund.

Fleet Maintenance and Replacement (Fund 752) - This fund provides for the operation of the City’s Fleet Management Division, which accounts for repairs, routine maintenance, and eventual replacement of City vehicles.
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Information Systems (Fund 753) - This fund provides for the operation of the City’s Information Systems Division, including maintenance of the City’s information technology network and hardware.

Building Maintenance & Operations (Fund 754) - This fund provides for the operation of the City’s Building Maintenance & Operations Division which is responsible for the maintenance of all the City’s facilities.

UAL and Employee Benefits (Fund 755) - This fund provides for PERS unfunded liability, retiree health benefits, and other costs that benefit all employees of the City.

Budgetary Control and Policies
Budgetary control is exercised by (1) the annual budget adoption by the City Council (2) formal budgetary integration within the accounting system (3) the mid-year review presented to the City Council in February (4) the encumbrance of estimated purchase/contract amounts prior to the release of purchase orders to vendors (5) properly and adequately documented City Council approved budget adjustments to appropriation and revenue estimates (6) monthly review of departmental expenditure reports comparing budget to actual amounts and (7) the established review process of carry-overs in which departments are requested to submit justification and funding sources for unencumbered, budgeted amounts requested for carryover. The final list of continued operations becomes part of the City’s annual budget.

The City Council approves each year’s budget submitted by the City Manager prior to the beginning of the fiscal year. Public meetings are conducted prior to the adoption by City Council.

It is the City Council’s goal to adopt a balanced annual budget, a budget in which current revenues equal recurring expenditures. The City Manager has authority to adjust the amounts appropriated between the funds and activities of a fund, provided, however, that the total appropriations for each fund may not exceed the amounts provided in the budget resolution.

The City Manager is also authorized to approve continuing appropriations at year-end for capital improvement projects and other expenditures previously approved by the City Council.

Cash and Investment Policies
The City’s cash and investments are reported at fair value. Changes in fair value that occur during a fiscal year are recognized as interest revenue reported for that fiscal year. Interest revenue includes interest earnings, changes in fair value, and any gains or losses realized upon maturity, liquidation, or sale of investments.

Cash accounts of all funds are pooled for investment purposes to enhance safety and liquidity while maximizing interest earnings. The City Council annually adopts an Investment Policy, which along with the California Government Code, provides a framework for authorized investments of the City’s pooled investments. Interest revenue earned by the pooled investments is allocated to the various funds based on each fund’s average monthly cash balances. 23

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Reserve Policy
In order to prudently protect the fiscal solvency of the City, it is important to maintain some minimum level of reserves. Reserves are important to mitigate the negative impact to revenues from economic fluctuations, fund unforeseen expenditure requirements, provide a minimum level of cash investment interest revenue, and avoid the need to borrow for cash flow purposes. Under the City’s Reserve Policy adopted in June 2021, the City established an Economic Uncertainty Reserve at 22.5% of General Fund operating expenditures. The Economic Uncertainty Reserve can be used if an economic impact resulting in a decrease of 5% or more in property or sales taxes occurs. The City also established an Emergency Disaster Contingency Reserve at $1,000,000 that can be used in the instance where a declaration of emergency as defined by the Upland Municipal Code is made. The Economic Uncertainty Reserve and Emergency Disaster Contingency Reserve are intended to provide liquidity to the City in the event of economic uncertainties, local disasters and other hardships or downturns in the local economy. Once the 22.5% Economic Uncertainty Reserve is met, any year-end operating surplus will be distributed to other reserves established by the Policy in the percentages as follows: Pension Stabilization Reserve (45%), Infrastructure Improvement Reserve (30%), Building Replacement and Maintenance Reserve (15%), General Plan Update Reserve (5%) and Unallocated Fund Balance (5%).

Pension Funding Policy
The City adopted a Pension Funding Policy in June 2021, and subsequently revised it in December 2021. The policy outlines the City’s approach toward addressing its long-term employee pension unfunded accrued liability. It provides narrative background on the California Public Employees Retirement System (CalPERS) and explains key terms and features, including amortization bases, discount rates, additional discretionary payments, normal costs, and unfunded accrued liability. The Pension Funding Policy also outlines financial objectives and establishes a target funding level of 100%, with a minimum funding level of 80%. Specific funding strategies include the use of Internal Revenue Code Section 115 Trust funds. The Pension Funding Policy provides that 50% of any budgetary cash savings realized from any pension funding strategy must be placed into Internal Revenue Code Section 115 Trust for use to accelerate the payoff or funding of new amortization bases (liabilities).

Capital Assets
Capital assets (including infrastructure) greater than $5,000 are capitalized and recorded at cost or at the estimated fair value of the asset at the time of acquisition where complete historical records have not been maintained. The costs of normal maintenance and repairs that do not add to the value of the asset, increase size or efficiency of the asset, or materially extend asset lives are not capitalized.

Capital assets include public domain (infrastructure) general fixed assets consisting of certain improvements including roads, curbs and gutters, streets, sidewalks, medians, sewer & water lines, and storm drains.
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Debt Management
The California Constitution requires that long-term debt pledged by the full faith and credit of the City can only be approved by voter referendum. Currently, the City does not have any general obligation debt. However, per State of California statute, the City’s debt limit is set at 15% of total assessed valuation for purposes of City taxation for all the real and personal property within the city.

Legal Debt Margin Calculation for Fiscal Year 2022-23
Assessed Valuation $10,815,868,904
Debit Limit (15% of assessed value) 1,622,380,336
Debt applicable to limit:

General obligation bonds -
Total net debt applicable to limit $ - Legal debt margin $1,622,380,336
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Water Self-Funded Insurance OPEB
Solid Waste Vehicle Replacement Successor Agency Sewer Information Systems CFDs
Building Maintenance
UAL and Employee Benefits
Public Safety
Housing and Urban Development
Community Development
Housing Fund
General Development
Parks
Storm Drain
Street and Traffic Safety
Street and Alley Repair
General Capital Projects
Energy Efficiency Improvements

DESCRIPTIONS
General Fund is the most versatile fund and is used to account for any legal budgetary purpose not accounted for elsewhere in the budget.

Housing Fund is used to account for the income activities of the City that were previously accounted for in the low and moderate income housing redevelopment agency fund.

Special Revenue Funds are used to account for certain funds, which are legally restricted to certain purposes.

Debt Service Funds are used to account for debt payments owed by the City.

Capital Improvement Project Funds are used to account for the purchase or construction of major capital projects, which are not financed by Proprietary Funds or Trust Funds.

Internal Service Funds account for a department of a governmental agency, which provides services to other departments of the agency.

The costs of all or a part of the operations and the provision of services are recovered through fees charged to the user departments.

Fiduciary (Trust and Agency) Funds account for assets held by the City in a trustee capacity or as agency for individuals, private organizations, other governments, and/or other funds Transportation Improvements and Traffic Management
Grants

FUND STRUCTURE
Governmental Funds Enterprise Funds Internal Service Funds Trust & Agency Fund General Fund
Debt Service Fund
Special Revenue Funds
Capital Projects Funds
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Department / Fund Matrix General
Government
Administrative
Services
Development
Services Police Public
Works
General Fund 
Housing Fund 
Public Safety Augmentation Fund 
Gas Tax Fund 
Measure I Fund 
Road Maintenance Rehabilitation Account 
HOME Investment Partnership Fund 
Community Development Block Grant Fund 
Parking Business Improvement Area Fund 
Air Quality Management District Fund 
Homeland Security Grants Fund - PD 
Prop 30 Fund 
COPS Fund 
Other Grants Fund 
Office of Traffic Safety Fund 
Other Public Safety Grants Fund 
Asset Forfeiture - Federal DOJ 
CalHOME Fund 
Asset Forfeiture - Federal/Treasury 
Asset Forfeiture - State 
Federal Grant-CARES Act 
Office Of Justice Programs 
ARPA 
Public Financing Authority Fund 
General Capital Improvements Fund 
Park Acquisition & Development Fund 
Storm Drain Development Fund 
Street & Traffic Facility Development Fund 
General Capital Projects 
Street & Alley Repairs 
Energy Efficiency Capital Improvements 
Water Utility Fund 
Solid Waste Utility Fund 
Sewer Utility Fund 
Self-Funded Liability Insurance Fund 
Fleet Maintenance and Replacement Fund 
Information Systems Fund 
Building Maintenance & Ops Fund 
UAL and Employee Benefits 
Successor Agency Fund 
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PROPOSED BUDGET
FY 2022-23

CITY PROFILE

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City of Upland
Strategic Goals

In the past, the City has relied on various tools to identify strategic goals for the City.

The following goals have been established to meet the needs of the community:

♦ Responsive Leadership
To enhance the public’s confidence in the City’s current leadership, both elected and staff, by fostering public and private partnerships.

♦ Sense of Community
To ensure an excellent quality of life by facilitating continuous, open dialogue with the City’s civic, non-profit, and faith-based organizations, the business community, residents, and local government.

♦ Community Oriented Public Safety
To assure residents and their families will be safe in their homes and in their neighborhoods, as well as provide basic instructions on disaster preparation and protection of their family and property.

♦ Economic and Workforce Development
To be an even more economically vibrant and diverse City that is a vital commercial and cultural crossroad between the greater Los Angeles Area and the Inland Empire, while attracting creative professionals and the cutting-edge organizations wishing to employ them.

♦ Historic Preservation and Enhancement
To enhance Historic Downtown Upland as the heart of the community where pedestrians enjoy charming shops, restaurants, and cultural art attractions.

♦ Improvement of City Infrastructure
To maintain and manage streets, sidewalks, sewers, parks, and public facilities with emphasis on the revitalization of the Foothill Corridor and Historic Downtown Upland.

Departmental goals and objectives are updated annually and are included in the Operating Budget, listed by division within each department. The following is a listing of Fiscal Year 2022-23 goals and objectives, as they relate to the City’s long-term strategic goals.

Responsive Leadership

♦ Continue managing the City’s resources in a conservative, fiscally responsible manner while maintaining a General Fund reserve of 22.5% of the current operating budget, for economic uncertainty and unforeseen expenditure requirements. 28

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Sense of Community

♦ Improve City communication by producing the Upland Today newsletter and City website upgrades such that communication is found to be core in our service to Upland residents and business owners.

♦ Continue to nurture and promote public communications, transparency, and engagement by maintaining open government ideals and developing programs/projects that support the constant pursuit of excellence in municipal services, as well as model public sector status.

Community Oriented Public Safety

♦ To have well-trained disaster response employees by providing training on the Incident Command System and Emergency Operations Center functions. This will result in a higher and more successful course of action when responding to, containing, controlling, and recovering from an emergency.

♦ Promote the safe movement of vehicles and pedestrians throughout the City by educating the motoring public and by enforcing traffic laws to reduce motor vehicle collisions.

♦ To protect the community from gang activity and graffiti by participating in regional enforcement of gang and graffiti violations, the Graffiti Reward Program, a graffiti/tagger database, proactive gang enforcement, and by participating in countywide San Bernardino Movement Against Street Hoodlums (SMASH) operations.

♦ To keep pace, through ongoing training, with the technological advances in computers, servers, and telecommunication devices such as smart phones. ♦ To operate the Animal Services Shelter such that public safety and welfare are upheld and animal adoptions are increased, as well as enhancing animal services provided to the residents of Upland.

Economic and Workforce Development

♦ Market the following programs designed to retain and attract retail businesses within Upland: Commercial Rehabilitation Program and Sales tax producing business Attraction/Incentive Program.
♦ Acquire property in the downtown area for the purpose of assembling land for development.

♦ Strengthen relationships with the County of San Bernardino Economic Development Agency and other regional agencies. Encourage economic growth by raising public awareness of existing business and employment resources promoting job creation and retention.
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♦ Explore and assist in the facilitation of building and site reuse opportunities to accommodate evolving retail trends and the reuse and/or expansion of existing retail spaces. ♦ Implement the City’s 5-Year Economic Strategic Plan
♦ Explore and assist in the facilitation of attracting new, exciting, and contemporary business ventures that enhance the city as a destination point for visitors.

Historic Preservation and Enhancement

♦ Continue to market the Downtown Façade Program in order to preserve historical structures.

♦ Continue to promote key commercial properties in Downtown and facilitate mixed-use developments and public parking.

♦ Continue implementation of the Downtown Specific Plan by facilitating development opportunities within the plan area.

Improvement of City Infrastructure

♦ Ensure an attractive and well-maintained City by providing parks and recreational facilities that are kept in good condition and are fully functional, and ADA compliant.

♦ Continue to seek opportunities to develop all or a portion of the city owned open space located at Baseline and the 210 Freeway.

♦ To establish an asset protection and management plan that ensures infrastructure is effectively renewed, replaced, and maintained.

♦ To ensure City compliance with federal and state regulations pertaining to storm water and the area-wide National Pollutant Discharge Elimination System (NPDES).

♦ To complete the following major Capital Improvement Projects:

1. Citywide Pavement Slurry Seal (Annual Program)

2. Citywide Sewer Rehabilitation (Annual Program)

3. Street and Alley Rehabilitation (Annual Program)

4. Arrow Highway Rehabilitation & Utility Improvements (Mountain to San Antonio)

5. City/County North Shared Roadways Project
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6. 14th Street Rehab (Campus to Grove)

7. Sycamore Hills Park – Master Plan

8. Shade Structures for Park Picnic Areas

9. Arrow Highway Storm Drain Improvements (Benson to Fairwood)

10. Arrow Highway Water Main Replacement (Mountain to San Antonio)

11. Reservoir Replacement at 17th Street

12. 17th Street Water Main (Laurel to Euclid) and Service Replacements (San Antonio to Euclid)

Page 47 of 280 ends

Projected Projected Projected Projected Projected
2022-23 2023-24 2024-25 2025-26 2026-27
Beginning Spendable Fund Balance 17,266,370$ 17,396,450$ 17,526,543$ 17,656,615$ 14,062,779$ Revenues 50,181,580 50,981,218 51,988,678 53,026,927 54,090,895 Transfers In 2,444,620 2,523,300 3,265,000 - Transfers Out (240,000) - - - - Fund Balance Reservation (130,000) (130,000) (130,000) (140,000) (140,000) Expenditures (52,256,120)$ (53,374,424)$ (55,123,606)$ (56,620,764)$ (58,467,336)$ FY Surplus / (Deficit)80$ 93$ 72$ (3,733,837)$ (4,516,442)$ FY Ending Spendable† Fund Balance 17,396,450$ 17,526,543$ 17,656,615$ 14,062,779$ 9,686,337$ Fund Balance as a % of Operating Expense 33.0%32.6%31.8%24.6%16.3% with ARPA Revenue Replacement Funding

FIVE-YEAR FINANCIAL PROJECTION

CITY OF UPLAND

GENERAL FUND
$0.0 $0.0 $0.0
($3.7)($4.5)
$17.3 $17.4 $17.5
$13.9
$9.5
($10.0)
($5.0)
$0.0
$5.0
$10.0
$15.0
$20.0
2022-23 2023-24 2024-25 2025-26 2026-27
Mi
l
l
i
o
n
s

(
$
)
General Fund Spendable†Fund Balance Projections
(with ARPA Revenue Replacement)
FY2023-2027
FY Surplus /
(Deficit)
FY Ending
Spendable Fund
Balance
The financial projection on this and the following pages is designed to provide a general understanding of how revenues and expenditures are expected to influence the City over the next five years. Revenue and expenditue projections are reviewed in relation to their effect on Unrestricted Fund Balances. The City will update its projections during the annual budget process in order to plan for the future. The projection factors used in projecting revenue and cost increases are detailed below:
* Assumed growth of 2% for most property taxes
* Assumed growth of 0-3% for most other taxes
* Assumed use of ARPA funding for eligible salaries and benefits through 12/31/2024 * Projections from consultant for two fiscal years and then 3% growth for sales taxes * No revenue growth for licenses and permits, other governments, charges for service, fines & forteitures, use of money and property and other revenue categories
* Salary and benefit growth per existing MOU's, with 3% annual growth thereafter * Pension expense estimates per most recent CalPERS actuarial valuation * Expenditure growth of 3% for most maintenance and operations expenditure line items * A $150,000 increase in costs every two years in City Clerk for election expenses 32

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Object 2022-23 2023-24 2024-25 2025-26 2026-27
Code Proposed Projected Projected Projected Projected
Taxes
400X Property Tax 19,267,650$ 19,557,758$ 19,914,327$ 20,278,027$ 20,646,278$ 4101 Sales and Use Tax 18,404,120 18,786,219 19,349,806 19,930,300 20,528,209 4104 Transient Occupancy Tax 164,000 168,920 173,988 182,687 191,821 4121 Franchise Tax 1,284,520 1,284,520 1,284,520 1,284,520 1,284,520 4102 Business License Tax 1,100,000 1,133,000 1,166,990 1,202,000 1,238,060 41XX Other Taxes 682,500 694,500 706,860 719,591 732,704 Total Taxes 40,902,790$ 41,624,917$ 42,596,490$ 43,597,125$ 44,621,591$ Intergovernmental
4103 Intergovernmental 38,000$ 38,000$ 38,000$ 38,000$ 38,000$ Total Intergovernmental 38,000$ 38,000$ 38,000$ 38,000$ 38,000$ Charges for Services
46XX Development Services Fees 1,093,500$ 1,093,500$ 1,093,500$ 1,093,500$ 1,093,500$ 46XX Police Department Fees 477,210 477,210 477,210 477,210 477,210 46XX Public Works Fees 400,000 400,000 400,000 400,000 400,000 46XX Community Service Fees 341,500 366,500 366,500 366,500 366,500 46XX Other Fees 98,920 98,920 98,920 98,920 98,920
Total Charges for Services 2,411,130$ 2,436,130$ 2,436,130$ 2,436,130$ 2,436,130$ Licenses & Permits
42XX Development Services Permits 1,599,540$ 1,599,540$ 1,599,540$ 1,599,540$ 1,599,540$ 42XX Public Works Permits 21,100 21,100 21,100 21,100 21,100 42XX Police Department Permits 78,530 78,530 78,530 78,530 78,530 4218 Other Fees 3,500 3,500 3,500 3,500 3,500
Total Licenses & Permits 1,702,670$ 1,702,670$ 1,702,670$ 1,702,670$ 1,702,670$ (126,030)
Fines & Forfeitures
47XX Fines & Forfeitures 565,830$ 568,330$ 568,330$ 568,330$ 568,330$ Total Fines & Forfeitures 565,830$ 568,330$ 568,330$ 568,330$ 568,330$ Use of Money & Property
48XX Investment Earnings 110,000$ 132,000$ 138,600$ 145,530$ 152,807$ 48XX Rental Income 847,030 875,041 904,328 935,013 967,237 48XX Other - - - - -
Total Use of Money & Property 957,030$ 1,007,041$ 1,042,928$ 1,080,543$ 1,120,043$ Miscellaneous Revenues
49XX Miscellaneous Revenues 3,604,130$ 3,604,130$ 3,604,130$ 3,604,130$ 3,604,130$ Total Miscellaneous Revenue 3,604,130$ 3,604,130$ 3,604,130$ 3,604,130$ 3,604,130$ Total Revenues 50,181,580$ 50,981,218$ 51,988,678$ 53,026,927$ 54,090,895$

GENERAL FUND EXPENDITURES BY DEPARTMENT PROGRAM

FIVE-YEAR FINANCIAL PROJECTION

CITY OF UPLAND
$0
$5
$10
$15
$20
$25
$30
$35
$40
$45
$50
2020-21 Budgeted 2021-22 Projected 2022-23 Projected 2023-24 Projected 2024-25 Projected Mi
l
l
i
o
n
s
Total General Fund Revenues
Taxes Intergovernmental Charges for Services Licenses & Permits Fines & Forfeitures Use of Money & Property Miscellaneous Revenues 33

Page 49 of 280 ends

2022-23 2023-24 2024-25 2025-26 2026-27
Proposed Projected Projected Projected Projected
General Government
City Council 155,490$ 158,181$ 160,952$ 163,807$ 166,747$ City Treasurer 2,950 2,962 2,974 2,987 3,000 Administration 727,780 749,613 772,102 795,265 819,123 City Attorney 500,000 515,000 530,450 546,364 562,754 City Clerk 614,290 478,219 642,565 507,342 672,562 Total General Government 2,000,510$ 1,903,975$ 2,109,044$ 2,015,764$ 2,224,187$ Administrative Services
Finance 1,634,060$ 1,683,082$ 1,733,574$ 1,785,581$ 1,839,149$ Non-Departmental 5,823,520 5,998,226 6,178,172 6,363,518 6,554,423 Library 1,918,420 1,975,973 2,035,252 2,096,309 2,159,199 Human Resources 480,170 494,575 509,412 524,695 540,436 Recreation Administration 996,500 1,026,395 1,057,187 1,088,902 1,121,570 Recreation Classes 165,750 170,723 175,844 181,120 186,553 Recreation Facilities 309,940 319,238 328,815 338,680 348,840 Recreation Parks 119,700 123,291 126,990 130,799 134,723 Senior Center 370,370 381,481 392,926 404,713 416,855 Special Events 189,270 194,948 200,797 206,820 213,025 Total Administrative Services 12,007,700$ 12,367,931$ 12,738,969$ 13,121,138$ 13,514,772$ Development Services
Building & Safety 1,558,900$ 1,605,667$ 1,653,837$ 1,703,452$ 1,754,556$ Weed Abatement 93,590 96,398 99,290 102,268 105,336 Economic Development 342,100 352,363 362,934 373,822 385,037 Planning Commission 20,650 21,270 21,908 22,565 23,242 Planning 582,270 599,738 617,730 636,262 655,350 Santa Fe Depot 6,000 6,180 6,365 6,556 6,753 Total Development Services 2,603,510$ 2,681,615$ 2,762,064$ 2,844,926$ 2,930,273$ Police
Police Administration 10,086,820$ 10,389,425$ 10,701,107$ 11,022,141$ 11,352,805$ Investigations 2,876,550 2,962,847 3,051,732 3,143,284 3,237,582 Animal Services 725,730 747,502 769,927 793,025 816,816 Patrol 12,448,870 12,822,336 13,207,006 13,603,216 14,011,313 Police Special Events & Community Outreach 20,670 21,290 21,929 22,587 23,264 Police Reserves 6,780 6,983 7,193 7,409 7,631 Code Enforcement 815,590 840,058 865,259 891,217 917,954 Total Police 26,981,010$ 27,790,440$ 28,624,154$ 29,482,878$ 30,367,364$ Public Works
Public Works Administration 1,426,040$ 1,468,821$ 1,512,886$ 1,558,272$ 1,605,021$ Engineering Administration 204,710 210,851 217,177 223,692 230,403 Development/Traffic Engineering 919,000 946,570 974,967 1,004,216 1,034,343 Street Maintenance 838,840 864,005 889,925 916,623 944,122 Street Sweeping 17,060 17,572 18,099 18,642 19,201 Sidewalk Maintenance 162,500 167,375 172,396 177,568 182,895 Street Lighting 807,550 821,477 846,121 871,504 897,650 Traffic Control 138,870 143,036 147,327 151,747 156,299 Traffic Facility Maintenance 274,300 - - - - Weed Abatement 23,770 24,483 25,218 25,974 26,753 Flood Control 3,000 3,090 3,183 3,278 3,377 Street Tree Maintenance 793,800 817,614 842,142 867,407 893,429 Public ROW Maintenance 962,830 991,715 1,021,466 1,052,110 1,083,674 Maintenance - Main Street 42,190 43,456 44,759 46,102 47,485 Maintenance - Metrolink 187,730 193,362 199,163 205,138 211,292

GENERAL FUND EXPENDITURES BY DEPARTMENT PROGRAM

FIVE-YEAR FINANCIAL PROJECTION

CITY OF UPLAND
34

Page 50 of 280 ends

2022-23 2023-24 2024-25 2025-26 2026-27
Proposed Projected Projected Projected Projected

GENERAL FUND EXPENDITURES BY DEPARTMENT PROGRAM

FIVE-YEAR FINANCIAL PROJECTION

CITY OF UPLAND
(Public Works continued)
Graffiti Abatement 80,000 82,400 84,872 87,418 90,041 Damage to City Property 66,000 67,980 70,019 72,120 74,284 Park Maintenance 982,860 1,012,346 1,042,716 1,073,998 1,106,218 Sports Field Maintenance 415,050 427,502 440,327 453,536 467,142 Civic Center 317,290 326,809 336,613 346,711 357,113 Total Public Works 8,663,390$ 8,630,463$ 8,889,377$ 9,156,058$ 9,430,740$ Grand Total 52,256,120$ 53,374,424$ 55,123,606$ 56,620,764$ 58,467,336$ 35

Page 51 of 280 ends

Projected Projected Projected Projected Projected
2022-23 2023-24 2024-25 2025-26 2026-27
Beginning Spendable Fund Balance 17,266,370$ 14,821,830$ 12,298,623$ 9,033,695$ 5,299,859$ Revenues 50,181,580 50,981,218 51,988,678 53,026,927 54,090,895 Transfers In - - - - - Transfers Out (240,000) - - - - Fund Balance Reservation (130,000) (130,000) (130,000) (140,000) (140,000) Expenditures (52,256,120)$ (53,374,424)$ (55,123,606)$ (56,620,764)$ (58,467,336)$ FY Surplus / (Deficit)(2,444,540)$ (2,523,207)$ (3,264,928)$ (3,733,837)$ (4,516,442)$ FY Ending Spendable† Fund Balance 14,821,830$ 12,298,623$ 9,033,695$ 5,299,859$ 783,417$ Fund Balance as a % of Operating Expense 28.4%23.0%16.4%9.4%1.3%

CITY OF UPLAND

FIVE-YEAR FINANCIAL PROJECTION
without ARPA Revenue Replacement Funding

GENERAL FUND
($2.4)($2.5)($3.3)($3.7)($4.5)
$14.8
$12.3
$9.0
$5.3
$0.8
($10.0)
($5.0)
$0.0
$5.0
$10.0
$15.0
$20.0
2022-23 2023-24 2024-25 2025-26 2026-27
Mi
l
l
i
o
n
s

(
$
)
General Fund Spendable†Fund Balance Projections
(without ARPA Revenue Replacement or Expenditure Reductions) FY2023-2027
Expenditures
FY Ending
Unrestricted Fund
Balance
The financial projection on this page is designed to provide a general understanding of how revenues and expenditures are expected to influence the City over the next five years without additional funding provided by ARPA. Revenue and expenditue projections are reviewed in relation to their effect on Unrestricted Fund Balances. The City will update its projections during the annual budget process in order to plan for the future. The projection factors used in projecting revenue and cost increases are detailed below:
* Assumed growth of 2% for most property taxes
* Assumed growth of 0-3% for most other taxes
* Assumed no use of ARPA funding for eligible salaries and benefits through 12/31/2024 * Assumed no expenditure reductions to balance the budget * Projections from consultant for two fiscal years and then 3% growth for sales taxes * No revenue growth for licenses and permits, other governments, charges for service, fines & forteitures, use of money and property and other revenue categories
* Salary and benefit growth per existing MOU's, with 3% annual growth thereafter * Pension expense estimates per most recent CalPERS actuarial valuation * Expenditure growth of 3% for most maintenance and operations expenditure line items 36

Page 52 of 280 ends

Where does it come from and how is it used?
Uses of the General Fund by Function
$52,256,120

51.6%Police 26,981,010

23.0%Administrative Services 12,007,700

16.6%Engineering and Public Works 8,663,390

5.0%Development Services 2,603,510

3.8%General Government 2,000,510
Sources of General Fund Revenue
$50,181,580

38.4%Property Taxes 19,267,650

36.7%Sales Tax 18,404,120

6.4%Other Taxes 3,231,020

3.4%Licenses & Permits 1,702,670

0.1% Intergovernmental Revenue 38,000

4.8%Charges for Service 2,411,130

1.1%Fines & Forfeitures 565,830

1.9%Use of Money and Property 957,030

7.2%Other Revenue 3,604,130
Fiscal Year 2022-23 General Fund Budget Snapshot
• Mayor Bill Velto • Mayor Pro Tem Shannan Maust• Council Member Janice Elliot • Council Member Carlos A. Garcia • Council Member Rudy Zuniga • Greg Bradley, City Treasurer 37

Page 53 of 280 ends

Officials of the City of Upland
Elected Officials
Bill Velto, Mayor
Mayor Pro Tem District 1
Councilmember District 2
Councilmember District 3
Councilmember District 4
Shannan Maust
Janice Elliott
Carlos A. Garcia
Rudy Zuniga
Greg Bradley City Treasurer
Executive Staff
Michael Blay, City Manager
Stephen Parker, CPA
Steven Deitsch
Robert D. Dalquest
Marcelo Blanco
Braden Yu
Assistant City Manager
City Attorney
Development Services Director
Chief of Police (Interim)
Public Works Director
38

Page 54 of 280 ends

City of Upland
Organizational Chart
Fiscal Year 2022-23
Assistant City Manager
Citizens of Upland
City Council
City Manager
City Attorney
Administrative Services Development Services Police Public Works City Treasurer
Finance
Human Resources
Risk Management
Information Technology
Recreation
Library
Planning
Building
Economic Development
Housing
Successor Agency
Engineering
Street Maintenance
Storm Drain Maintenance
Facility Maintenance
Park Maintenance
Solid Waste Mangement
Fleet Management
Water Utility Services
Sewer Maintenance
Investigations
Patrol
School Resource Officer
Traffic Safety
Cadet Program
Code Enforcement
Animal Control
Asset Forfeiture
City Clerk
39

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PRESENTED TO

City of Upland
California

For the Fiscal Year Beginning

July 01, 2021

Executive Director

GOVERNMENT FINANCE OFFICERS ASSOCIATION

Distinguished
Budget Presentation
Award
40

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History of Upland

In 1882, George Chaffey arrived in Upland, and shortly after engineered the historic Euclid Avenue. Euclid Avenue was designed to be 200 feet wide, with a spacious median, and various tree species lining the thoroughfare. Chaffey also developed a water system for the area that depended on gravity flow from the canyons of the San Gabriel Mountains to the valley below.

With access to a reliable source of water, lemon grower associations were started. According to sources of the day, oranges and lemons from the Upland groves were always met with a great amount of satisfaction with buyers in the East.

In 1897, citrus grower Charles D. Adams suggested the name “Upland” for a new citrus association proposed in the rich farm area. Adams offered the name of Upland – indicating its location uphill from its more established neighbor, Ontario. It was at that time that 1,000 or so residents persuaded the San Bernardino County Board of Supervisors to rename the community.

Incorporation had not yet come for Upland by the time she received her new name and in the next few years Ontario made moves to push its boundaries northward. Upland residents could not bear to think of their railroad station and post office being within Ontario’s boundaries. In early 1906, a committee was named to appear before the Board of Supervisors and request an incorporation election. At the conclusion of that session, the Board declared the election for incorporation should take place. On May 5, 1906, Upland voters approved cityhood.

The City of Upland is situated on the western border of San Bernardino County, bordered by the cities of Claremont, Montclair, Ontario and Rancho Cucamonga. Upland, known as the "City of Gracious Living", is nestled at the base of the San Gabriel Mountains and encompasses 15.3 square miles. It has an estimated population of 79,139 as of December 31, 2021.

Upland is a general law city with a Council-Manager form of government. The City provides a wide range of traditional municipal and public enterprise services.

Services Provided by the City of Upland

Municipal Services

General Administrative Support
Highways and Streets
Planning and Zoning
Police Public Safety
Library Services
Animal Services
Recreation and Parks
Housing and Community Development
Public Improvements

Public Enterprise Services

Water Utility
Solid Waste Utility
Sewer Utility

Page 57 of 280 ends

Date of Incorporation Police Protection
Patrol Units 24
Form of Government General Law Motorcycles 4
Sworn Officers 78
Population Total Police Department Employees 119
Number of City Employees Library
Facilities 1
Employees per capita 1 per 301 residents Volumes 116,755 Current Periodical &
Area in Square Miles 15.6 Serial Subscriptions 7,002
Audio-visual items 5,006
Average Elevation 1,237 feet Registered patrons 26,453
Average Temperature 67.7 F Recreation
Buildings 4
Average Rainfall Per Year 21 inches Parks 13
Soccer fields (lighted)6
Number of Public Schools 14 Baseball fields (lighted)8
Softball fields (lighted) 3
Miles of City Streets
Miles of State Highways 6.20
Miles of Sewer Lines
Miles of Water Mains
263.0
210.01
224.06
247.09
City of Upland
City Demographics
Community Profile City Services
May 15, 1906
79,139
42

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Calendar
Year Population
Growth
Per Year
Cumulative
Growth
2012 74,907 339 1,759
2013 75,147 240 1,999
2014 75,074 -73 1,926
2015 75,774 700 2,626
2016 76,790 1,016 3,642
2017 77,017 227 3,869
2018 78,481 1,464 5,333
2019 78,814 333 5,666
2020 78,513 -301 5,365
2021 79,139 626 5,991
Source: California State Department of Finance
Population Growth
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Population 74,907 75,147 75,074 75,774 76,790 77,017 78,481 78,814 78,513 79,139 72,000
73,000
74,000
75,000
76,000
77,000
78,000
79,000
80,000

POPULATION
Population
43

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Business Name Business Category
Albertsons Grocery Stores
Arco AM PM Service Stations
BevMo Convenience Stores/Liquor
Chevron Service Stations
Chick Fil A Quick-Service Restaurants
Dick's Sporting Goods Sporting Goods/Bike Stores
Euclid Arco Service Stations
Ford of Upland New Motor Vehicle Dealers
Hobby Lobby Specialty Stores
Holliday Rock Contractors
Home Depot Building Materials
In N Out Burger Quick-Service Restaurants
Kohls Department Stores
Lowes Building Materials
Marshalls Family Apparel
Mountain View Chevrolet New Motor Vehicle Dealers
Nordstrom Rack Department Stores
Ross Family Apparel
RV Spa Trailers/RVs
Shell Service Stations
Stater Bros Grocery Stores
Target Discount Dept Stores
TJ Maxx Family Apparel
Vons Fuel Service Stations
Walmart Discount Dept Stores
City of Upland
Top 25 Sales Tax Producers
44

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Percentage of
Taxable Total Taxable
Assessed Assessed
Taxpayer Value Rank Value
Colonies-Pacific LLC 165,016,627$ 1 1.59%
College Park Apartment Homes LP 53,908,710 2 0.52% AMFP IV Alvista 49,878,000 3 0.48%
Foothill Evergreen SPE LLC 49,215,000 4 0.47% MG Stoneridge Village Grove LLC 47,077,637 5 0.45% Rancho Monte Vista Apartment Homes 45,598,985 6 0.44% CT Retail Properties Finance II LLC 43,884,445 7 0.42% WNG Mountain Springs GP 40,146,767 8 0.39%
Dee Matreyek-Kurth Non Exempt Trust 37,152,576 9 0.36% NU-168 Apartments LLC 35,838,074 10 0.35%
Totals 567,716,821$ 5.47%
Source: HdL Coren & Cone
City of Upland
Principal Property Taxpayers
For the Fiscal Year Ending June 30, 2021
45

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PROPOSED BUDGET
FY 2022-23

BUDGET SUMMARIES

Page 62 of 280 ends

FY 2022-23 SUMMARY OF CHANGES IN FUND BALANCE
Fund
No.

Estimated Fund
Balance
(Unassigned)
7/1/22
2022-2023
Estimated
Revenue Transfers In
Available
Sources
2022-2023
Operating
Expenditures
Capital
Improvement
Projects
Transfers
Out
Fund
Balance
Reservation Total Uses
Change in Fund
Balance
Fund Balance
6/30/23
101 General Fund - Estimated Unassigned 383,290$ 50,181,580$ 2,444,620$ 52,626,200$ 52,256,120$ -$ 240,000$ -$ 52,496,120$ 130,080$ 513,370$ Building Replacement and Maintenance
Reserve (.25%) - - - - - - - 130,000 130,000 (130,000) (130,000) Total General Fund 383,290$ 50,181,580$ 2,444,620$ 52,626,200$ 52,256,120$ -$ 240,000$ 130,000$ 52,626,120$ 80$ 383,370$ 201 Housing 4,240,370$ 4,813,280$ -$ 4,813,280$ 3,982,440$ -$ -$ -$ 3,982,440$ 830,840$ 5,071,210$ 203 Public Safety Augmentation 90,200 1,422,700 - 1,422,700 1,512,900 - - - 1,512,900 (90,200) - 204 Gas Tax 7,222,190 2,289,540 - 2,289,540 877,310 8,629,420 - - 9,506,730 (7,217,190) 5,000 205 Measure I 6,572,980 1,623,180 - 1,623,180 428,510 1,970,950 - - 2,399,460 (776,280) 5,796,700 206 RMRA 2,864,380 1,789,680 - 1,789,680 107,860 844,970 - - 952,830 836,850 3,701,230 208 HOME Investment Partnership Program 933,340 48,300 - 48,300 355,000 - - - 355,000 (306,700) 626,640 209 Community Development Block Grant 1,520 794,680 - 794,680 796,200 - - - 796,200 (1,520) - 210 Parking Business Improvement Area 169,130 58,600 - 58,600 88,500 130,550 - - 219,050 (160,450) 8,680 211 Air Quality Management District 107,460 99,400 - 99,400 163,660 - - - 163,660 (64,260) 43,200 215 Prop 30 154,450 - - - 150,000 - - - 150,000 (150,000) 4,450 216 COPS 1,253,660 120,000 - 120,000 1,157,660 - - - 1,157,660 (1,037,660) 216,000 217 Other Grants 4,480 655,340 - 655,340 635,380 - - - 635,380 19,960 24,440 218 Office of Traffic Safety - 154,270 - 154,270 5,810 - - - 5,810 148,460 148,460 219 Other Public Safety Grants - -- -- - - - - - - 220 Asset Forfeiture 540,790 - - - - - - - - - 540,790 222 CalHOME 674,530 35,200 - 35,200 675,000 - - - 675,000 (639,800) 34,730 223 Asset Forfeiture-Federal Treasury 10,260 - - - - - - - - - 10,260 224 Asset Forfeiture State 196,390 - - - - - - - - - 196,390 225 BSCC Budget Act 83,020 - - - - - - - - - 83,020 226 CARES Act - - - - - - - - - - -
227 Office of Justice Programs - - - - - - - - - - - 229 ARPA 12,248,530 35,000 - 35,000 1,206,850 2,934,360 2,444,620 - 6,585,830 (6,550,830) 5,697,700 Total Special Revenue Funds 37,367,680$ 13,939,170$ -$ 13,939,170$ 12,143,080$ 14,510,250$ 2,444,620$ -$ 29,097,950$ (15,158,780)$ 22,208,900$ 420 General Capital Improvements 2,480,360$ 195,000$ -$ 195,000$ -$ 81,000$ -$ -$ 81,000$ 114,000$ 2,594,360$ 421 Park Acquisition & Development 11,135,670 800,000 - 800,000 - 1,290,040 - - 1,290,040 (490,040) 10,645,630 422 Storm Drain Development 5,285,170 366,200 - 366,200 - 2,006,100 - - 2,006,100 (1,639,900) 3,645,270 423 Street & Traffic Facility Development 1,412,070 386,000 - 386,000 12,330 525,520 - - 537,850 (151,850) 1,260,220 425 General Capital Projects 1,629,420 - 240,000 240,000 - 655,840 - - 655,840 (415,840) 1,213,580 426 Street & Alley Repairs 687,380 240,000 - 240,000 61,700 830,810 - - 892,510 (652,510) 34,870 Total Capital Project Funds 22,630,070$ 1,987,200$ 240,000$ 2,227,200$ 74,030$ 5,389,310$ -$ -$ 5,463,340$ (3,236,140)$ 19,393,930$ 639/640 Water Utility 25,183,540$ 31,633,050$ -$ 31,633,050$ 29,259,770$ 15,003,930$ -$ -$ 44,263,700$ (12,630,650)$ 12,552,890$ 641 Solid Waste Utility 54,610 16,285,000 - 16,285,000 15,699,930 119,510 265,000 - 16,084,440 200,560 255,170 645 Environmental Enterprise 12,505,820 10,430,600 265,000 10,695,600 12,543,980 2,522,340 - - 15,066,320 (4,370,720) 8,135,100 Total Enterprise Funds 37,743,970$ 58,348,650$ 265,000$ 58,613,650$ 57,503,680$ 17,645,780$ 265,000$ -$ 75,414,460$ (16,800,810)$ 20,943,160$ 751 Self-Funded Liability Insurance (6,942,570)$ 5,274,910$ -$ 5,274,910$ 5,282,230$ -$ -$ -$ 5,282,230$ (7,320)$ (6,949,890)$ 752 Vehicle Replacement Fund 981,960 780,080 - 780,080 966,520 - - - 966,520 (186,440) 795,520 753 Information Systems 1,974,270 2,827,970 - 2,827,970 2,866,350 - - - 2,866,350 (38,380) 1,935,890 754 Building Maintenance & Operations 1,019,800 995,340 - 995,340 1,478,720 - - - 1,478,720 (483,380) 536,420 755 UAL and Employee Benefits - 7,583,450 - 7,583,450 7,583,450 - - - 7,583,450 - - Total Internal Service Fund (2,966,540)$ 17,461,750$ -$ 17,461,750$ 18,177,270$ -$ -$ -$ 18,177,270$ (715,520)$ (3,682,060)$ 805 Successor Agency Housing (11,317,490)$ 3,374,160$ -$ 3,374,160$ 3,369,650 -$ -$ -$ 3,369,650$ 4,510$ (11,312,980)$ Total Private Purpose Trust Fund (11,317,490)$ 3,374,160$ -$ 3,374,160$ 3,369,650$ -$ -$ -$ 3,369,650$ $ 4,510 (11,312,980) $ 83,840,980 $ 145,292,510 $ 2,949,620 $ 148,242,130 $ 143,523,830 $ 37,545,340 $ 2,949,620 $ 184,148,790 $ (35,906,660) 47,934,320Grand Total $
46

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Fund
No. City of Upland
Estimated
Spendable Fund
Balance
July 1, 2022
Estimated
Spendable Fund
Balance
June 30, 2023
$
Change
%
Change Reason for Changes (greater than 10%)
General Fund
101 General Fund - Estimated Unreserved 383,290 383,370 80 0.02% Total General Fund 383,290 383,370 80 0.02% Special Revenue Funds
201 Housing 4,240,370 5,071,210 830,840 19.59%Accumulating resources for future expenses 203 Public Safety Augmentation 90,200 - (90,200) -100.00%Use of funds for public safety 204 Gas Tax 7,222,190 5,000 (7,217,190) -99.93%Use of funds accumulated over a period of time 205 Measure I 6,572,980 5,796,700 (776,280) -11.81%Use of funds accumulated over a period of time 206 Road Maintenance Rehabilitation Account 2,864,380 3,701,230 836,850 29.22%Use of funds accumulated over a period of time 208 HOME Investment Partnership Program 933,340 626,640 (306,700) -32.86%Use of grant funds to issue loans 209 Community Development Block Grant 1,520 - (1,520) -100.00%Use of grant funds for community development 210 Parking Business Improvement Area 169,130 8,680 (160,450) -94.87%Use of funds accumulated over a period of time 211 Air Quality Management District 107,460 43,200 (64,260) -59.80%Use of funds accumulated over a period of time 215 Prop 30 154,450 4,450 (150,000) -97.12%Use of funds accumulated over a period of time 216 COPS 1,253,660 216,000 (1,037,660) -82.77%Use of funds accumulated over a period of time 217 Other Grants 4,480 24,440 19,960 445.54%Use of grant funds for various community development projects 218 Office of Traffic Safety - 148,460 148,460 -
220 Asset Forfeiture - Federal DOJ 540,790 540,790 - 0.00% 222 CalHOME 674,530 34,730 (639,800) -94.85%Use of grant funds to issue loans 223 Asset Forfeiture - Federal/Treasury 10,260 10,260 - 0.00% 224 Asset Forfeiture - State 196,390 196,390 - 0.00% 225 BSCC Budget Act 83,020 83,020 - 0.00%
226 CARES Act - - - -
227 Office of Justice Programs - - - -
229 ARPA 12,248,530 5,697,700 (6,550,830) -53.48%Use of funds received from American Rescue Plan Act Total Special Revenue Funds 37,367,680 22,208,900 (15,158,780) -40.57% Total Capital Project Funds
420 General Capital Improvements 2,480,360 2,594,360 114,000 4.60% 421 Park Acquisition & Development 11,135,670 10,645,630 (490,040) -4.40% 422 Storm Drain Development 5,285,170 3,645,270 (1,639,900) -31.03%Use of funds accumulated over a period of time 423 Street & Traffic Facility Development 1,412,070 1,260,220 (151,850) -10.75%Use of funds accumulated over a period of time 425 General Capital Projects 1,629,420 1,213,580 (415,840) -25.52%Use of funds from General Fund transfers 426 Street & Alley Repairs 687,380 34,870 (652,510) -94.93%Use of funds accumulated over a period of time Total Capital Project Funds 22,630,070 19,393,930 (3,236,140) -14.30% City of Upland
Summary of Changes in Spendable Fund Balances
Fiscal Year 2022-2023 Proposed Budget
47

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Fund
No. City of Upland
Estimated
Spendable Fund
Balance
July 1, 2022
Estimated
Spendable Fund
Balance
June 30, 2023
$
Change
%
Change Reason for Changes (greater than 10%)
City of Upland
Summary of Changes in Spendable Fund Balances
Fiscal Year 2022-2023 Proposed Budget
Enterprise Funds
639/640 Water Utility 25,183,540 12,552,890 (12,630,650) -50.15%Use of funds accumulated over a period of time 641 Solid Waste Utility 54,610 255,170 200,560 367.26%Accumulating resources for future expenses 645 Sewer Utility 12,505,820 8,135,100 (4,370,720) -34.95%Use of funds accumulated over a period of time Total Enterprise Funds 37,743,970 20,943,160 (16,800,810) -44.51% Total Internal Service Fund
751 Self-Funded Liability Insurance (6,942,570) (6,949,890) (7,320) 0.11% 752 Fleet Maintenance & Replacement 981,960 795,520 (186,440) -18.99%Use of funds accumulated over a period of time 753 Information Systems 1,974,270 1,935,890 (38,380) -1.94% 754 Building Maintenance & Operations 1,019,800 536,420 (483,380) -47.40%Use of funds accumulated over a period of time 755 UAL & Employee Benefits - - - 0.00% Total Internal Service Fund (2,966,540) (3,682,060) (715,520) 24.12% Private Purpose Trust Fund
805 Successor Agency Housing (11,317,490) (11,312,980) 4,510 -0.04% Total Private Purpose Trust Fund (11,317,490) (11,312,980) 4,510 -0.04% Total All Funds 83,840,980 47,934,320 (35,906,660)-42.83% 48

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2019-20 2020-21 2021-22 2021-22 2022-23
Fund No.Actual Actual Adopted Amended Proposed
101 General Fund 45,548,730$ 49,165,380$ 44,891,140$ 48,863,370$ 50,181,580$ Total General Fund 45,548,730$ 49,165,380$ 44,891,140$ 48,863,370$ 50,181,580$ 201 Housing 88,960$ 230,890$ 4,632,780$ 4,632,780$ 4,813,280$ 203 Public Safety Augmentation Fund 990,550 1,057,960 1,339,880 1,339,880 1,422,700 204 Gas Tax 3,905,640 1,727,890 2,052,530 2,052,530 2,289,540 205 Measure I 1,730,130 1,776,810 1,409,270 1,409,270 1,623,180 206 Road Maintenance Rehabilitation Account - 1,465,780 1,533,890 1,533,890 1,789,680 208 HOME Investment Partnership Program 215,280 149,010 75,800 75,800 48,300 209 Community Development Block Grant 367,690 359,110 1,426,860 1,965,190 794,680 210 Parking Business Improvement Area 66,340 60,450 59,000 59,000 58,600 211 Air Quality Management District 260,710 104,900 99,400 99,400 99,400 214 Homeland Security Grants-PD 22,940 28,330 - 11,400 - 215 Prop 30 2,510 1,140 900 900 - 216 COPS 199,140 194,840 120,000 120,000 120,000 217 Other Grants 54,810 25,340 266,980 1,439,820 655,340 218 Office of Traffic Safety 182,850 103,200 45,430 238,430 154,270 219 Other Public Safety Grants - 157,620 11,320 11,320 - 220 Asset Forfeiture 8,100 19,060 - - - 222 CalHOME 43,520 172,940 30,200 30,200 35,200 223 Asset Forfeiture - Federal Treasury 160 80 - - - 224 Asset Forfeiture - State 17,740 1,840 - - - 225 BSCC Budget Act 1,360 620 - - - 226 CARES ACT 324,380 2,143,220 - - - 227 Office of Justice Programs - 41,500 - - - 229 American Rescue Plan Act - 4,740 7,960,000 7,960,000 35,000 Total Special Revenue Funds 8,482,810$ 9,827,270$ 21,064,240$ 22,979,810$ 13,939,170$ 420 General Capital Improvements 652,120$ 345,460$ 279,000$ 279,000$ 195,000$ 421 Park Acquisition & Development 1,791,840 1,572,260 1,242,920 1,242,920 800,000 422 Storm Drain Development 970,880 859,700 410,710 410,710 366,200 423 Street & Traffic Facility Development 471,740 460,660 201,000 201,000 386,000 426 Street & Alley Repairs 234,740 215,730 220,680 220,680 240,000 427 Energy Efficiency Capital Improvement Projec 1,260 40 - - - Total Capital Project Funds 4,122,580$ 3,453,850$ 2,354,310$ 2,354,310$ 1,987,200$ 640 Water Utility 35,692,760$ 31,623,030$ 29,390,000$ 29,390,000$ 31,633,050$ 641 Solid Waste Utility 13,829,030 14,661,310 16,320,980 16,320,980 16,285,000 645 Sewer Utility 15,567,250 10,884,170 10,539,730 10,539,730 10,430,600 Total Enterprise Funds 65,089,040$ 57,168,510$ 56,250,710$ 56,250,710$ 58,348,650$ 750 Fire Annexation Worker's Compensation 7,740$ 3,520$ -$ -$ -$ 751 Self-Funded Insurance 4,182,810 6,144,920 4,818,350 4,818,350 5,274,910 752 Fleet Maintenance & Replacement 1,212,960 728,220 1,435,390 1,435,390 780,080 753 Information Systems 1,763,630 1,996,380 2,505,680 2,505,680 2,827,970 754 Building Maintenance & Operations 1,103,200 939,930 1,127,220 1,127,220 995,340 755 UAL and Employee Benefits - - 10,168,860 10,226,640 7,583,450 Total Internal Service Funds 8,270,340$ 9,812,970$ 20,055,500$ 20,113,280$ 17,461,750$ 805 Successor Agency 3,513,930$ 3,250,430$ 3,408,960$ 3,408,960$ 3,374,160$ Total Private Purpose Trust Fund 3,513,930$ 3,250,430$ 3,408,960$ 3,408,960$ 3,374,160$ Grand Total 135,027,430$ 132,678,410$ 148,024,860$ 153,970,440$ 145,292,510$ 2022-2023 SCHEDULE OF REVENUES BY FUND & CATEGORY
49

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Object 2019-20 2020-21 2021-22 2021-22 2022-23
Code Actual Actual Adopted Amended Proposed
4001 Current Secured Tax 7,094,240$ 7,590,360$ 7,427,570$ 7,668,020$ 8,038,710$ 4001 Property Tax (In-Lieu)8,133,250 8,585,000 9,185,430 8,944,980 8,944,970 4002 Current Unsecured Tax 251,290 264,930 260,000 260,000 275,400 4003 Aircraft Taxes 45,770 41,610 39,660 39,660 33,770 4004 Prior Year Collections 294,720 348,940 241,980 241,980 295,000 4005 Current Supplemental 76,800 94,700 70,000 70,000 85,000 4006 Homeowner Property Tax Relief 69,400 64,890 69,400 69,400 64,800 4009 Weed Abatement Assessment 60,440 4,500 75,000 15,530 75,000 4011 RPTTF-Residual 1,578,910 1,303,180 1,100,000 1,100,000 1,300,000 4012 Trailer Coach in Lieu Tax 66,330 72,970 59,370 59,370 65,000 4403 Motor Vehicle in Lieu Tax 62,110 57,810 57,800 90,700 90,000 17,733,260$ 18,428,890$ 18,586,210$ 18,559,640$ 19,267,650$ 4101 Sales and Use Tax 13,579,780$ 16,876,710$ 14,789,060$ 18,153,630$ 18,404,120$ 4102 Business License Tax 1,133,400 1,119,430 1,080,000 1,080,000 1,100,000 4103 Rock Extraction Tax 277,340 264,960 260,000 260,000 264,000 4104 Transient Occupancy Tax 156,700 195,620 154,000 154,000 164,000 4105 Real Property Transfer Tax 384,580 447,620 350,000 350,000 400,000 4110 Disability Access Fee 20,290 21,940 10,000 10,000 18,500 4121 Franchise Tax 1,252,060 1,284,530 1,252,060 1,252,060 1,284,520 16,804,150$ 20,210,810$ 17,895,120$ 21,259,690$ 21,635,140$ 4201 Building Permits 754,160$ 904,990$ 634,760$ 582,670$ 681,720$ 4202 Plumbing Permits 193,080 144,560 199,330 74,700 86,700 4203 Electrical Permits 434,670 695,080 288,510 392,410 455,400 4204 Heating & Cooling Permits 90,070 55,530 101,610 46,660 54,150 4205 Public Works Construction Permits 843,340 346,630 300,000 150,000 200,000 4206 Grading Permits 2,350 - 4,600 - - 4207 Wall Permits 5,680 11,650 85,850 10,840 12,580 4208 Roofing Permits 51,080 129,950 84,840 93,910 108,990 4215 Other Permits 91,970 73,190 2,940 1,690 1,960 4216 Bicycle Licenses 90 50 70 70 70 4217 Animal Licenses 114,230 114,190 114,000 76,370 76,000 4222 Yard Sale Permits 3,890 3,100 3,500 3,500 3,500 4223 Alarm Permits 130 80 - - - 4224 Gun Licenses 350 2,200 1,510 1,510 500 4226 Metrolink Parking 64,980 2,010 65,000 15,000 21,100 4227 Vehicle Charging - 2,060 - 5,000 - 2,650,070$ 2,485,270$ 1,886,520$ 1,454,330$ 1,702,670$ 4402 State Mandated Costs 1,420$ 50$ -$ -$ -$ 4421 Police Officer Standard Training 19,410 22,310 10,000 18,340 10,000 4482 State Literacy Program 27,470 27,100 27,000 27,000 28,000 48,300$ 49,460$ 37,000$ 45,340$ 38,000$ 4601 Finance Department Fees 28,620$ 31,050$ 28,000$ 28,000$ 28,000$ 4602 City Clerk Fees 2,310 10,870 2,500 2,500 2,500 4603 Damage to City Property 51,630 48,830 - 50,000 - 4604 CFD Admin Fees 57,950 57,950 37,920 37,920 37,920 4611 Planning - Department Fees 131,640 198,490 145,000 325,000 325,000 4613 Planning - Deposit Fees 400,360 253,700 375,000 145,000 70,000 4614 Building - Plan Check Fees 306,770 514,070 238,330 530,190 620,820 4615 Building - Department Fees 274,260 185,250 360 45,710 53,040 4616 Building - Special Inspection Fees 9,160 37,740 58,870 21,220 24,640 4617 Economic Development Fees 200 3,610 - 150,000 - 4622 Police - Department Fees 181,810 147,330 170,580 138,880 143,100 4623 Police - Special Service Fees 6,870 640 24,200 8,760 4,500 4624 Animal Services - Animal Impounds 18,280 8,790 15,000 8,500 8,500 2022-2023 SCHEDULE OF REVENUE DETAIL BY FUND
General Fund
Revenue from Property Tax
Revenue from Other Taxes
Revenue from Licenses & Permits
Revenue from Other Governments
50

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Upland City CouncilJune 13, 2022

Upland City Council
June 13, 2022