Attachment A
Activity Report for the
Third Quarter
FINANCE DEPARTMENT
QUARTERLY REPORT
FY 2026 – Q3
FINANCE:
53 Positions
6 Divisions
1 Team
City Manager
Keith C. Metzler
Deputy City Manager
Jenele Davidson
Director of Finance
Carmen Cun
Assistant Director of Finance
Asdghik Keyvanian
January 1, 2026 – March 31,2026
Finance Projects Completed:
• Single Audit FY24-25
• W-2s and 1099 were issued
• Citywide Amazon Business Account
• Hazardous Waste Generation and Handling Fee for calendar year 2024 • Purchasing Contracts Completed for New Projects:
o Installation of rectangular rapid flashing beacons at nine (9) school crossings o Water maintenance and repair for storage reservoirs
o Zeroscape landscape upgrade for LMAD 1
o Northgate Village Apartments rehabilitation project
o Sewer lining phase 3 system rehabilitation work
o SCLA Building 686 Installation of Reduced Pressure Detector Assembly (RPDA) o Request for Qualifications for on-call environmental consultant services o IWWTP Direct Connection 1 & 2
o Annual maintenance for Percolation Pond 14
o Installation of block walls and gates at Well sites 128, 131, and 201 o Route 66 Commercial Façade refresh project
o Installation of Fire Hydrants on La Mesa Rd Phase 2
o Old Town Commercial Façade Improvement project
• Regulatory reporting to:
o W-3 Transmittal of Wage and Tax Statements with SSA for calendar year 2025 o Government Compensation of California Report (GCC) for calendar year 2025 o Quarterly State & Fed tax payment for CNG, diesel, & underground tanks o Quarterly US Census survey of non-property taxes (F73) o Quarterly State payroll wages and taxes
o Quarterly Federal payroll wages and taxes
o Quarterly PERMA wage report
Projects In Progress:
• Annual Budget FY26-27
• IVR Re-Implementation
Department Statistics by Division
Q3 General Fund Revenues and Expenditures Comparison FY25 vs. FY26 The General Fund is the City’s primary operating fund and supports day -to-day operations and essential services.
During the third quarter of FY 2026, General Fund revenues exceeded those recorded during the same period in FY 2025. From January through March 2025, the General Fund received $25,449,322.41, compared to $30,610,568.96 during the same period in FY 2026, representing an increase of $5,161,246.55. This variance is primarily attributable to a one- time pass-through payment of $3,787,285.75 received from the Adelanto School District bond trustee for DIF-funded infrastructure improvements related to the Santolina Development, along with the corresponding payment distribution to D.R. Horton in accordance with the CFD agreement.
Sales tax revenues also increased, rising from $7,639,169.82 in the third quarter of FY 2025 to $8,060,290.19 in FY 2026, a gain of $421,120.37. Similarly, property tax revenues grew from $8,618,661.62 in FY 2025 to $9,238,502.69 in FY 2026, reflecting an increase of $619,841.07.
Overall, third -quarter performance in FY 2026 demonstrates stronger revenue collections compared to the prior fiscal year.
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Jan Feb March Q3 Total
FY 2025 $14.25 $6.25 $4.95 $25.45
FY 2026 $14.30 $6.01 $10.30 $30.61
Amounts are in millions
Q3 General Fund Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
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Jan Feb March Q3 Total
FY 2025 $7.55 $6.21 $7.24 $21.00
FY 2026 $7.13 $6.74 $11.82 $25.70
Amounts are in millions
Q3 General Fund Expenditures Comparison
FY25 vs FY26
FY 2025 FY 2026
During the third quarter of FY 2026, General Fund expenditures exceeded those recorded during the same period in FY 2025. From January through March 2025, General Fund expenditures totaled $21,004,157.74, compared to $25,697,177.73 during the same period in FY 2026, representing an increase of $4,693,019.99. This variance is primarily attributable to a pass- through payment of $3,787,285.75 to D.R. Horton, funded by a reimbursement received from the Adelanto School District bond trustee for DIF-funded infrastructure improvements associated with the Santolina Development, in accordance with the CFD agreement.
Additional factors contributing to the increase in FY 2026 expenditures include a 3% increase in the cost of San Bernardino County police services, which rose from $8,835,084.63 in the third quarter of FY 2025 to $9,136,325.88 in FY 2026, resulting in a variance of $301,241.25. Fire wages also increased by $261,799.73, largely due to the annual holiday payout provided to firefighters at the beginning of the year. Finance Department wages rose by $109,835.44, primarily due to vacation and sick leave payouts associated with recent retirements. Additionally, Legal Services expenditures were higher by $270,856.23 in the third quarter of FY 2026 compared to the same period in FY 2025.
Overall, these factors contributed to the higher level of General Fund expenditures in FY 2026.
Q3 Measure P Revenues and Expenditure Comparison FY25 vs. FY26 Measure P is a one-percent General Transaction and Use Tax that took effect April 1, 2021.
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evenues for the third quarter of FY 2025 exceeded those recorded in FY 2026. During the third quarter of FY 2025, Measure P revenues totaled $8,368,134.29, compared to $7,984,016.13 in FY 2026. This variance is primarily attributable to the timing of interest income recognition, with $592,016.87 recorded in FY 2025 and no interest income recorded during the same period in FY 2026. The interest income allocation for FY 2026 is currently under review and is expected to be recorded soon.
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dditionally, several revenue sources in FY 2026 were higher than those in FY 2025, including Fire Annual Inspection Fees and Fire Permit and Plan Check Fees, resulting in a positive variance of $384,118.16.
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Jan Feb March Q3 Total
FY 2025 $2.30 $3.11 $2.96 $8.37
FY 2026 $2.41 $3.09 $2.48 $7.98
Amounts are in millions
Q3 Measure P Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
During the third quarter of FY 2026, Measure P expenditures totaled $5,732,441.82, compared to $4,775,987.69 during the same period in FY 2025, representing an increase of $956,454.13.
This increase is largely attributable to one-time capital and project-related expenditures incurred in FY 2026, including $758,165.10 for the design and construction of a new police station and $847,954.83 for the purchase of furniture for the new library, along with other smaller operational and project-related expenditures contributing to the overall variance.
Partially offsetting this increase, FY 2025 also included several one -time expenditures, such as $159,672.48 for improvements to the animal shelter, $113,146.02 for the purchase of three Chevy Colorado trucks, $106,230.84 for a payment related to the library building, and $52,380.44 for the acquisition of a park mower.
Overall, the higher expenditures in FY 2026 reflect increased investment in capital projects compared to the prior fiscal year.
Q3 Citywide Revenues and Expenditures Comparison FY25 vs. FY26
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Jan Feb March Q3 Total
FY 2025 $1.74 $1.32 $1.72 $4.78
FY 2026 $1.75 $1.18 $2.81 $5.73
Amounts are in millions
Q3 Measure P Expenditures Comparison
FY25 vs FY26
FY 2025 FY 2026
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Jan Feb March Q3 Total
FY 2025 $37.81 $39.62 $25.55 $102.98
FY 2026 $35.73 $24.85 $40.43 $101.01
Amount are in millions
Q3 Citywide Revenue Comparison
FY25 vs FY26
FY 2025 FY 2026
Citywide third-quarter revenue for FY 2025 totaled $102,980,925.30, whic h is $1,972,850.15 higher than FY 2026 third-q uarter revenue of $101,008,075.15. This varianc e is primarily driven by differences in grant activity and other revenue fluctuations between the two fiscal years. In FY 2025, the City received an advanced grant pay ment of $6,365,069.60 during the third quarter; this funding is later reclassified to unearned revenue at year-e nd and recognized as expenditures are inc urred. Additionally, the City received $1,994,949 from an FAA reimbursable grant that was fully expended, submitted, and closed within the quarter. FY 2025 also generated $1,614,414.51 in Storm Drain DIF fees, reflecting a higher number of completed projects compared to FY 2026.
In contrast, FY 2026 included $3,315,932.96 in c ustomer sewer rate revenue from a new account established that year, as well as a $2,575,402.33 increase in sewer use fee revenue resulting from a rate adjustment effective July 2025. The City also received $2,494,684.75 in pass-through revenue related to ROPS distributions from a newly clos ed bond. Additionally, SCLA rec eived an FAA reimbursable grant in FY 2026 for expenditures that were incurred, submitted, and reimbursed within the fisc al year.
Citywide
third-quarter expenditures for FY 2025 totaled $68,267,653.91, which is $363,567.68 lower than the FY 2026 third-quarter total of $68,631,221.59. This variance is primarily attributable to several capital projects that incurred costs in FY 2025 but did not recur in FY 2026, including $2,940,824.59 for Airport Runway 17/35 Reconstruction (Phase V), $987,157.14 for water service line replacements, $869,457.90 for roadway pavement work, and $450,086.28 for new library building improvements, among other smaller expenditure variances.
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rast, FY 2026 included expenditures for Airport Runway 17/35 Reconstruction (Phase VI) totaling $958,168.41, as well as the establishment of a new WWFT pass-through account, which recorded $4,973,899.44 in expenses related to treatment costs for Service Area B sewer flows.
Overall, expenditures were higher in FY 2026 compared to FY 2025.
Note: Trans
actions in progress are not included. Revenues and expenditures may include prior quarter adjustments.
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Jan Feb March Q3 Total
FY 2025 $26.90 $18.71 $22.65 $68.27
FY 2026 $20.85 $17.18 $30.60 $68.63
Amount are in millions
Q3 Citywide Expenditures Comparison
FY25 vs FY26
FY 2025 FY 2026