Yucaipa City Council
July 27, 2026

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STAFF REPORT
DATE: July 27, 2026
TO: Honorable Mayor and City Council
FROM: Dr. Sean M. Moore, City Manager
PREPARED BY: Steven G. Pacifico, City Attorney
Item No. 22
SUBJECT: Measure S Public Safety Funding Policy and Election Options RECOMMENDATION:

That the City Council:

1. Receive and discuss this report concerning alternatives for directing revenues from the voter -approved Measure S transactions and use tax to public safety purposes; and

2. Select one of the following policy alternatives:
a. Adopt the resolution included as Attachment 1 establishing an immediately effective City Council budget policy requiring all Measure S revenues to be budgeted and spent exclusively for public safety purposes; b. Adopt the resolution included as Attachment 2 calling a nonbinding advisory election for November 3, 2026, asking whether the City Council should adopt and maintain such a public safety funding policy;
c. Adopt, by at least four affirmative votes, the resolution and proposed ordinance included as Attachment 3 submitting to the voters at the November 3, 2026 election a binding measure converting future Measure S revenues into a special tax restricted to public safety purposes; or

3. Provide further direction to staff, including direction to maintain the existing Measure S framework or to revise the scope, accountability requirements, or funding limitations contained in the attached documents.

BACKGROUND/DISCUSSION:

On June 24, 2024, the City Council adopted Resolution No. 2024-38 placing the City of Yucaipa Public Safety and Essential Services Protection Measure, commonly known as Measure S, on the November 5, 2024 ballot. Measure S proposed Ordinance No. 453, which imposed a one -percent transactions and use tax within the City. At the time the measure was placed on the ballot, the City estimated that it would generate approximately $6 million annually. The tax has no automatic sunset and continues until ended by the voters.

While the measure established a general tax available for any lawful municipal purpose, the public discussion regarding the measure focused on maintaining police, fire, paramedic, 911 emergency response, roadway maintenance, and other essential services. Accordingly, Measure S revenues are deposited into the General Fund and remain legally available for any lawful municipal purpose.

Measure S was approved on November 5, 2024, by 60.04 percent of the votes cast, and the City Council certified the election results and deemed Ordinance No. 453 adopted on December 9, 2024.

Before the election, the City Council also adopted Resolution No. 2024-41, expressing the Council's intent to use Measure S revenues to prevent reductions in public safety services and directing the City Manager to prepare an annual expenditure plan for review by the Citizens' Oversight Committee. That resolution expresses a policy intention but does not legally convert Measure S into a special tax or restrict the electorate's general -tax authorization.

The City Council requested options for strengthening the connection between Measure S revenues and public safety. Attachments 1 through 3 present three different actions: an immediately effective Council budget policy, a nonbinding advisory vote, and a voter -approved special -tax restriction. Each alternative uses a substantially similar, broad definition of public safety, but the legal effect, approval requirements, fiscal consequences, and degree of future flexibility differ materially.

Common Public Safety Framework
Each attachment defines public safety broadly enough to include both direct public safety operations and the supporting expenses reasonably necessary to deliver those operations. The principal categories are:
a. Law enforcement and police services, including contracted Sheriffs Department services, patrol, investigations, traffic enforcement, dispatch, crime prevention, public safety technology, emergency response, and code enforcement directed to dangerous or hazardous conditions;
b. Fire protection and emergency medical services, including fire suppression, paramedic and rescue services, stations, apparatus, staffing, fire prevention, wildfire mitigation, hazardous -materials response, training, overtime, mutual aid, and equipment;

c. Emergency management and disaster preparedness, including emergency operations, alert systems, evacuation planning, continuity of operations, disaster response and recovery, backup power, shelters, emergency procurement, and mutual -aid obligations; d. Roadway and transportation safety, including traffic enforcement, traffic signals and control devices, crosswalks, street lighting, traffic calming, evacuation routes, emergency access, and roadway work having a substantial safety or hazard -reduction purpose;
e. Public safety facilities, vehicles, equipment, communications, technology, capital projects, financing, and related planning, design, construction, maintenance, and debt - service costs; and
f. The direct or reasonably allocable share of legal, insurance, risk management, workers' compensation, finance, audit, human resources, information technology, fleet, facilities, utilities, procurement, public information, and other administrative or operational support costs.

The attached documents do not authorize unrestricted overhead charges merely because public safety is a significant City function. Indirect and administrative charges must be tied to eligible public safety purposes through a documented, consistently applied, and auditable allocation method. Under the special -tax alternative, roadway repair and similar infrastructure expenditures are further limited to projects having a primary and substantial roadway -safety, emergency -access, evacuation, or hazard -reduction purpose, with a written determination retained for qualifying pavement work.

All three alternatives also intentionally omit a maintenance -of -effort or "supplement, not supplant' requirement. Measure S may therefore pay for public safety costs that otherwise would have been paid from other General Fund revenues. Devoting all Measure S revenues to public safety would not necessarily produce an equivalent dollar -for -dollar increase in total public safety spending because the Council could use other legally available General Fund revenues for other municipal purposes. If the Council intends Measure S to increase public safety funding above a historical baseline, the attachments should be revised to establish a defined maintenance -of -effort requirement. Such a requirement would provide a stronger assurance of additional spending but would materially reduce budget flexibility and require a clearly defined baseline and exceptions.

Option 1 - City Council Budget Policy (Attachment 1)
Attachment 1 would adopt an immediately effective budgetary policy requiring all Measure S revenues, attributable earnings, and prior -year carryover to be proposed, budgeted, appropriated, and spent only for the defined Public Safety Purposes. The resolution would direct the City Manager to include a separately identified Measure S Public Safety Expenditure Plan in each proposed annual budget; separately track budgeted and actual expenditures; provide the proposed plan to the Citizens' Oversight Committee; and present an annual public accountability report to the City Council.

As an ordinary City Council resolution, this option may be adopted by a recorded majority vote of the full City Council under Government Code section 36936. It requires no election and could govern the current budget process immediately. Measure S would remain a general tax, and Ordinance No. 453 would not be amended.

The principal advantages of this option are speed, low implementation cost, detailed accountability, and continued flexibility. The City Council could adjust the definition or allocation policy in response to changing conditions without another election. The principal limitation is that the policy would not create a voter -enforceable restriction. A future City Council could amend or repeal the resolution at a noticed public meeting. The resolution is drafted to make any proposed amendment or repeal a separately identified agenda action, thereby promoting transparency, but it cannot irrevocably bind a future Council's legislative and budgetary discretion.

Option 2 - Advisory Measure (Attachment 2)
Attachment 2 would place a citywide advisory question on the November 3, 2026 ballot asking whether the City Council should adopt and maintain a policy requiring all Measure S revenues to be spent only for the broadly defined Public Safety Purposes, with annual public reporting.

Elections Code section 9603 requires the ballot to identify the proposal as "Advisory Vote Only" and provides that the result is an indication of general voter opinion that is not controlling on the City Council.

The advisory measure would not amend Ordinance No. 453, restrict the legal use of Measure S revenues, appropriate funds, or convert Measure S into a special tax. A majority "yes" vote would express voter support for the policy, a majority "no" vote would express opposition. In either case, the current and future City Councils would retain legal authority to determine Measure S appropriations through the annual budget process.

This option provides direct voter input and may give greater political legitimacy to a public safety funding policy while preserving legal and operational flexibility. Its limitations are election cost, implementation delay, and the possibility that voters may incorrectly understand an affirmative result as legally binding. The ballot heading, impartial analysis, and public information materials must therefore clearly explain the advisory nature of the vote. The Council may adopt the budget policy in Attachment 1 before or after the advisory election; the two actions are legally compatible.

Option 3 - Binding Special Tax Conversion (Attachment 3) Attachment 3 would submit a proposed ordinance to the voters that retains the existing one -percent Measure S rate and existing duration but converts Measure S revenues received after the special - tax operative date into legally restricted special -tax proceeds. The proceeds could be used only for the public safety programs, services, projects, facilities, equipment, capital costs, and reasonably allocable supporting expenses identified in the ordinance. If the measure fails, the existing general - tax version of Measure S would remain in effect without amendment.

A special tax imposed for specific purposes requires approval by two-thirds of the voters voting on the measure under article XIII C, section 2(d) of the California Constitution. Revenue and Taxation Code section 7285.91 also requires the proposing ordinance to be approved by two-thirds of all members of the City Council, to conform to the Transactions and Use Tax Law, and to include an expenditure plan. For the five -member Yucaipa City Council, at least four affirmative Council votes would be required to place the proposed ordinance on the ballot. The measure would then require at least two-thirds voter approval.

The proposed ordinance includes the accountability provisions applicable to a special tax, including a separate restricted account, a detailed expenditure plan, an annual independent audit, an annual public report, budget disclosure, and Citizens' Oversight Committee review.

Government Code sections 50075.1 and 50075.3 require a special -tax measure to identify the specific purposes of the tax, restrict proceeds to those purposes, establish a separate account, and provide annual reporting.

This option provides the strongest and most durable commitment because the spending restriction would be voter approved and legally enforceable. Future Councils could not use the proceeds for non -public -safety purposes or materially broaden the permitted purposes without any voter approval required by applicable law. The corresponding disadvantages are the two-thirds voter threshold, reduced ability to respond to changing municipal priorities, increased accounting and compliance burdens, and greater litigation risk concerning whether particular expenses fall within the voter -approved expenditure plan.

The definition of Public Safety Purposes is intentionally broad, but the broader the category, the more important it is that each expenditure have a documented and substantial relationship to an authorized purpose. Legal services, insurance, general administration, roadway work, and other shared costs would require particularly careful allocation and documentation. The proposed ordinance includes safeguards for those costs, but a court would ultimately evaluate the text approved by the voters and the facts supporting each expenditure.

The special -tax transition is also more administratively complex than either of the other options.

The proposed measure is structured as a voter -approved amendment and continuation of the existing tax rather than as an additional tax. Before final ballot filing, staff should obtain review from the California Department of Tax and Fee Administration regarding the proposed operative date, coding, retailer notice, and uninterrupted collection. If CDTFA recommends a different transition structure, the ordinance should be revised before the statutory election deadline, provided the rate, restricted purposes, duration, and voter -approval threshold are not materially changed without further Council action.

Summary Comparison
Option
Approval
Legal Effect
Primary Considerations

1. Budget policy
Majority of full Council;
Immediate Council policy;
Fastest and least costly; detailed annual
no election
Measure S remains a general
budgeting and reporting; not voter -
tax; future Council may
enforceable
amend or repeal

2. Advisory measure
Majority Council action
Expresses voter opinion only;
Direct voter input but nonbinding; election
to call election; voter
does not amend or restrict
cost and delay; requires clear explanation to
result determined by
Measure S
avoid confusion
more yes than no

3. Special tax
At least 4 Council votes
Binding legal restriction on
Strongest commitment; reduced flexibility;
conversion
and two-thirds voter
future proceeds; special -tax
higher approval threshold; CDTFA
approval
accounting and reporting
coordination and greater
compliance/litigation exposure
Status quo
No new action
Measure S remains a general
Maximum flexibility; existing intent and
tax subject to annual Council
oversight continue; no exclusive -use
appropriations and Resolution
requirement
No. 2024-41
Policy Choices Applicable to Any Selected Option
The Council may revise any attachment before adoption or ballot submission. The most significant policy choices are the public safety definition, whether Measure S may replace existing General Fund spending, whether administrative and support allocations should be capped, whether roadway projects should be limited more narrowly, and whether unspent funds should be accumulated for identified capital projects or applied to current operations.

The three options are not entirely mutually exclusive. The Council could adopt Attachment 1 immediately and also submit either Attachment 2 or Attachment 3 to the voters. An immediate policy would govern the budget while an election is pending. Staff does not recommend placing both the advisory measure and the binding special -tax measure on the same ballot because the measures address the same subject but have different legal effects, creating a substantial risk of voter confusion or inconsistent results.

Election Timing and Administration
The statewide General Election will be held on Tuesday, November 3, 2026. Elections Code sections 9222 and 10403 require the City's election order and consolidation request to be completed and filed at least 88 days before the election. The statutory deadline is August 7, 2026, although the San Bernardino County Registrar of Voters may establish earlier administrative deadlines. If the Council selects either election option, the City Clerk should immediately confirm the County's filing schedule, estimated costs, ballot formatting requirements, argument and rebuttal deadlines, and voter information guide procedures.

Following placement of a measure on the ballot, City resources may be used to provide a fair and impartial presentation of relevant facts and the measure's potential effects, but may not be used to campaign for or against the measure. Any City informational program should be reviewed for

compliance with Government Code section 54964 and the principles stated in Stanson v. Mott and related cases.

Conclusion
Each option can advance the objective of connecting Measure S revenues to public safety, but the options serve different purposes. Attachment 1 provides an immediate, transparent, and flexible budget policy. Attachment 2 asks the electorate for guidance without changing Measure S's legal status. Attachment 3 creates a binding and durable restriction but requires four Council votes, two- thirds voter approval, and more extensive administration. The Council should select the option that best reflects the desired balance between legal commitment, voter participation, fiscal flexibility, accountability, and implementation cost.

FISCAL IMPACT:

None of the proposed alternatives would increase the existing one -percent Measure S tax rate.

Measure S generates approximately $9 million annually.

Attachment 1 would not create election costs, but would require staff time for separate accounting, cost allocation, budget disclosure, Citizens' Oversight Committee support, and annual reporting.

Those costs are expected to be primarily administrative and could be absorbed within existing resources unless the Council directs additional consulting work.

Attachments 2 and 3 would require the City to reimburse San Bernardino County for the City's share of the cost of placing and administering a measure on the November 3, 2026 consolidated ballot. The amount is not presently known and will depend on the County's final ballot configuration, number of jurisdictions and measures, printing and translation requirements, and other election costs. The special -tax alternative would also require CDTFA coordination, restricted -fund accounting, an annual independent audit, and ongoing compliance administration.

The most significant fiscal policy effect is the loss of General Fund flexibility. Under Attachment 3, all Measure S revenues would be assigned to eligible public safety expenditures. To the extent Measure S revenues are otherwise needed for non -public -safety programs, the City would need to reduce those programs or identify other revenues.

Attachment(s):

1. Resolution Establishing a Measure S Public Safety Budget Policy.

2. Resolution Calling a Nonbinding Measure S Public Safety Funding Advisory Measure.

3. Resolution Calling a Measure to Convert Measure S to a Public Safety Special Tax.

ATTACHMENT 1

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA,

CALIFORNIA, ESTABLISHING A BUDGETARY POLICY DEVOTING

MEASURE S REVENUES EXCLUSIVELY TO PUBLIC SAFETY
PURPOSES; DIRECTING THE CITY MANAGER TO IDENTIFY THE

PROPOSED AND ACTUAL USE OF MEASURE S REVENUES IN ALL
APPLICABLE BUDGET DOCUMENTS; AND REQUIRING AN ANNUAL

PUBLIC REPORT AND ACCOUNTING
WHEREAS, on June 24, 2024, the City Council adopted Resolution No. 2024-38, submitting to the qualified electors of the City of Yucaipa the Yucaipa Public Safety and Essential Services Protection Measure, commonly known as "Measure S"; and WHEREAS, Measure S proposed the adoption of Ordinance No. 453, imposing a one - percent general transactions and use tax within the City of Yucaipa; and WHEREAS, on November 5, 2024, the qualified electors of the City approved Measure S by a majority vote; and
WHEREAS, on December 9, 2024, the City Council adopted Resolution No. 2024-60, declaring the results of the election and deeming Ordinance No. 453 adopted by the voters; and WHEREAS, the revenues generated by Measure S are general tax revenues that may legally be expended for any lawful municipal purpose, and Measure S therefore remains a general tax within the meaning of Article XIII C of the California Constitution; and WHEREAS, although Measure S is legally a general tax, it was presented to the electorate as the Yucaipa Public Safety and Essential Services Protection Measure and was intended to provide locally controlled revenue to protect public safety and essential municipal services; and WHEREAS, prior to the election, the City Council adopted Resolution No. 2024-41, declaring its intention to use Measure S revenues to prevent reductions in public safety services and directing the City Manager to prepare an annual expenditure plan for review by the Citizens' Oversight Committee; and
WHEREAS, police protection, fire protection, emergency medical response, emergency preparedness, roadway safety, wildfire prevention, disaster response, code enforcement addressing dangerous conditions, and the administrative and support services necessary to provide those services are essential components of a comprehensive municipal public safety system; and WHEREAS, the City Council desires to strengthen and further implement the policy expressed in Resolution No. 2024-41 by directing that all Measure S revenues be budgeted and expended exclusively for public safety purposes; and
pg. 1

WHEREAS, public safety operations depend not only upon the direct cost of police officers, firefighters, paramedics, emergency responders, equipment, vehicles, and facilities, but also upon reasonably allocable legal, risk management, insurance, workers' compensation, information technology, finance, human resources, fleet, facility, procurement, communications, and other supporting expenses; and
WHEREAS, the City Council finds that transparent and separate identification of Measure S revenues and expenditures in the City's budget and financial reports will promote public confidence and allow the City Council, the Citizens' Oversight Committee, and the public to determine whether the revenues have been used consistently with the policy established by this Resolution; and
WHEREAS, the City Council possesses authority to establish budget priorities, commit available General Fund resources to identified municipal purposes, direct the preparation of the City's proposed budget, and appropriate City funds through the annual budget and subsequent budget amendments.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA HEREBY RESOLVES AS FOLLOWS:

Section 1. Incorporation of Recitals.

The recitals set forth above are true and correct and are incorporated into this Resolution as findings of the City Council.

Section 2. Measure S Public Safety Funding Policy.

A. As a matter of City Council budgetary policy, all Measure S Revenues shall be proposed, budgeted, appropriated, carried forward, encumbered, and expended exclusively for Public Safety Purposes, as those terms are defined in this Resolution.

B. The City Manager shall prepare and administer each proposed annual budget, midyear budget review, budget amendment, capital improvement program, long-range financial forecast, and other material City budget document in a manner consistent with this policy.

C. No proposed budget or budget amendment shall assign Measure S Revenues to an expenditure that does not qualify as a Public Safety Purpose under this Resolution.

D. Measure S Revenues that are not appropriated, encumbered, or expended during the fiscal year in which they are received shall be separately identified and carried forward for appropriation and expenditure on Public Safety Purposes in a subsequent fiscal year.

E. Nothing in this Resolution shall limit the City Council's authority to appropriate other General Fund revenues, grants, fees, assessments, special revenues, or other legally available resources for Public Safety Purposes.
pg. 2

Section 3. Definitions.

For purposes of this Resolution, the following definitions shall apply:

A. "Measure S" means the one -percent general transactions and use tax approved by the voters of the City of Yucaipa on November 5, 2024, and enacted through Ordinance No. 453, including any successor provision of the Yucaipa Municipal Code.

B. "Measure S Revenues" means:

1. All transactions and use tax proceeds received by the City pursuant to Measure S;

2. Any interest, investment earnings, penalties, reimbursements, refunds, or other revenue directly attributable to Measure S proceeds, to the extent separately identifiable;

3. Any Measure S proceeds carried forward from a prior fiscal year; and

4. Any reimbursement received by the City for an expenditure originally paid from Measure S Revenues.

C. "Public Safety Purposes" shall be construed broadly and includes the following direct and reasonably allocable indirect costs:

1. Law Enforcement and Police Services.
a. Contracts for law enforcement services, including services provided by the San Bernardino County Sheriff's Department;
b. Patrol services, traffic enforcement, criminal investigations, detective services, crime analysis, specialized enforcement, school and community safety programs, and services addressing gangs, narcotics, organized crime, retail theft, burglary, vehicle theft, fraud, vandalism, and other criminal activity;
c. Community -oriented policing, neighborhood patrols, crime -prevention programs, public education, youth diversion, gang prevention, and services intended to prevent or reduce crime; d. Homelessness response, behavioral -health response, crisis -intervention services, outreach, and related programs when performed by, coordinated with, or materially supporting law enforcement, emergency response, or the mitigation of threats to public health or safety; e. Emergency dispatch, 911 services, records, evidence management, communications, radio systems, body -worn cameras, automated license -plate readers, surveillance systems, cybersecurity for public safety systems, and other public safety technology; pg. 3

f. Emergency response planning, tactical response, mutual aid, training, recruitment, retention, equipment, uniforms, vehicles, facilities, supplies, and other costs necessary to provide law enforcement services; and
g. Civil, administrative, or code enforcement activities primarily directed toward dangerous buildings, illegal occupancy, hazardous property conditions, public nuisances presenting a material threat to health or safety, illegal fireworks, unlawful dumping, dangerous animals, or other conditions reasonably determined to affect public safety.

2. Fire Protection and Emergency Medical Services.
a. Contracts for fire protection, fire suppression, emergency medical services, rescue services, paramedic services, and related emergency -response services, including services provided by the California Department of Forestry and Fire Protection or any successor service provider;
b. The staffing, operation, maintenance, improvement, replacement, construction, or acquisition of fire stations, emergency -response facilities, training facilities, emergency operations centers, and related property;
c. Fire engines, trucks, rescue vehicles, ambulances, command vehicles, apparatus, personal protective equipment, communications systems, medical equipment, rescue equipment, tools, technology, and other supplies or equipment;
d. Fire prevention, inspection, plan review, vegetation management, defensible -space programs, weed abatement, wildfire mitigation, hazardous -materials response, technical rescue, public education, and community risk -reduction programs; e. Emergency medical response, paramedic squads, ambulance coordination, mass - casualty response, medical supplies, automatic external defibrillators, and programs intended to improve survival or reduce response times; and
f. Training, recruitment, retention, mutual aid, emergency deployment, overtime, standby coverage, and other costs necessary to provide fire and emergency medical services.

3. Emergency Management and Disaster Preparedness.
a. Emergency planning, preparedness, response, recovery, mitigation, and continuity -of - operations activities;
b. Emergency operations centers, emergency alert and warning systems, interoperable communications, evacuation planning, shelter coordination, emergency supplies, generators, and backup power;
c. Community Emergency Response Team programs and other volunteer emergency - response or preparedness programs;
pg. 4

d. Response to wildfire, earthquake, flood, severe weather, hazardous -material incidents, terrorism, civil disturbance, pandemic, major utility disruption, and other natural or human -caused emergencies; and
e. Mutual -aid obligations, disaster -response contracts, emergency procurements, disaster recovery, and the non -reimbursed local share of eligible emergency or disaster expenditures.

4. Roadway and Transportation Safety.
a. Traffic enforcement, collision investigation, traffic -control operations, crossing -guard services, and public education concerning roadway, pedestrian, bicycle, e-bike, and vehicle safety; b. Traffic signals, traffic -control devices, warning systems, roadway signs, pavement markings, striping, crosswalks, guardrails, barriers, medians, traffic -calming devices, street lighting, and pedestrian or bicycle safety improvements; c. Engineering, design, construction, maintenance, repair, or replacement of roadways, intersections, sidewalks, trails, bridges, drainage facilities, slopes, shoulders, and related infrastructure when reasonably intended to reduce collisions, correct a hazardous condition, maintain emergency access, support evacuation, or protect the safety of motorists, pedestrians, bicyclists, emergency responders, or adjacent properties; d. Pavement repair, resurfacing, reconstruction, pothole repair, vegetation clearance, drainage work, and similar work where the City Manager or designated City Engineer determines that the work has a substantial roadway -safety, emergency -access, evacuation, or hazard -reduction purpose;
e. Local road -safety plans, traffic studies, collision analyses, speed surveys, signal -timing studies, safe -routes -to -school projects, and grant matching funds for transportation -safety projects; and
f. Maintenance and improvement of designated evacuation routes and routes necessary for police, fire, paramedic, or other emergency response.

5. Public Safety Facilities, Vehicles, Equipment, and Capital Improvements. a. Acquisition, construction, leasing, financing, improvement, repair, maintenance, security, and operation of facilities used primarily for law enforcement, fire protection, emergency medical response, emergency management, dispatch, communications, or other Public Safety Purposes;
b. Acquisition, leasing, financing, repair, replacement, maintenance, fueling, outfitting, and operation of vehicles, apparatus, aircraft, equipment, communications systems, software, technology, and other capital assets used for Public Safety Purposes; pg. 5

c. Debt service, lease payments, financing costs, and reserves associated with capital assets or facilities acquired or used for Public Safety Purposes; and d. Planning, design, environmental review, project management, construction management, inspection, permitting, and other costs associated with an eligible public safety capital project.

6. Public Safety Legal, Insurance, Administrative, and Support Costs.

The direct or reasonably allocable share of costs necessary to administer, support, protect, or deliver Public Safety Purposes, including:
a. City Attorney services and outside legal counsel concerning public safety contracts, operations, personnel, labor relations, enforcement, litigation, claims, risk management, emergency response, public safety facilities, public safety procurement, and related matters; b. Liability insurance, property insurance, vehicle insurance, workers' compensation, claims administration, self-insurance contributions, risk -pool contributions, deductibles, settlements, judgments, and loss -prevention activities reasonably attributable to Public Safety Purposes;
c. Finance, accounting, payroll, auditing, purchasing, contracting, grant administration, budgeting, revenue administration, and financial -reporting services supporting Public Safety Purposes;
d. Human resources, recruitment, classification, labor relations, employee benefits administration, training, occupational health, and workplace -safety services supporting public safety personnel or operations;
e. Information technology, cybersecurity, communications, geographic information systems, records management, data storage, software, hardware, and technical support used by or supporting public safety operations;
f. Fleet maintenance, facilities maintenance, utilities, fuel, procurement, warehousing, inventory, and logistical support for public safety facilities, vehicles, personnel, and equipment; g. Public information, community engagement, translation, accessibility, and communications reasonably related to public safety programs, emergencies, alerts, preparedness, or required public accountability;
h. Costs of administering Measure S, including California Department of Tax and Fee Administration charges, revenue consultants, independent audits, Citizens' Oversight Committee support, accounting, reporting, and legal compliance; and pg. 6

i. A reasonable share of other City administrative or overhead costs that support Public Safety Purposes and are assigned pursuant to a documented and consistently applied cost - allocation methodology.

7. Other Substantially Related Expenditures.

Any other expenditure that the City Council expressly determines, based upon written findings made at a public meeting, has a primary and substantial relationship to protecting life, health, property, emergency access, roadway safety, community security, emergency preparedness, or the effective delivery and administration of public safety services.

Section 4. Measure S Expenditure Plan in Annual Budget.

A. Each proposed annual budget shall include a separately identified "Measure S Public Safety Expenditure Plan."
B. The Measure S Public Safety Expenditure Plan shall identify, at a minimum:

1. The amount of Measure S Revenues projected to be received during the fiscal year;

2. The amount of unspent or unencumbered Measure S Revenues carried forward from prior fiscal years;

3. Any interest or other earnings attributable to Measure S Revenues;

4. Every department, program, contract, project, capital improvement, administrative allocation, or expenditure category proposed to receive Measure S Revenues;

5. The amount proposed for each expenditure category;

6. Whether each proposed expenditure is a direct cost, indirect cost, capital cost, debt - service cost, reserve, transfer, or reimbursement;

7. For each material indirect or administrative allocation, the basis and methodology used to calculate the amount;

8. The projected amount of Measure S Revenues that will remain unappropriated or be carried forward at the end of the fiscal year; and

9. A certification by the City Manager that all proposed expenditures qualify as Public Safety Purposes under this Resolution.

C. The expenditure plan may provide for Measure S Revenues to support existing, restored, expanded, enhanced, or newly established public safety services. pg. 7

D. The City Manager shall submit the proposed Measure S Public Safety Expenditure Plan to the Citizens' Oversight Committee sufficiently in advance of budget adoption to allow the Committee to review the proposed expenditures and report its findings to the City Council as contemplated by Resolution No. 2024-41 and the Yucaipa Municipal Code.

E. Material amendments to the Measure S Public Safety Expenditure Plan shall be separately identified in any midyear budget review or other budget amendment presented to the City Council.

Section 5. Separate Accounting and Tracking.

A. The City Manager and the City's chief financial officer shall establish and maintain a separate fund, subfund, account, project code, cost center, or other accounting mechanism sufficient to identify and track:

1. Measure S Revenues received;

2. Interest or earnings attributable to Measure S Revenues;

3. Budgeted Measure S expenditures;

4. Actual Measure S expenditures;

5. Measure S encumbrances and contractual commitments;

6. Reimbursements and adjustments;

7. Transfers among eligible Public Safety Purposes; and

8. Unspent Measure S Revenues carried forward to subsequent fiscal years.

B. The accounting mechanism shall be maintained in a manner consistent with generally accepted accounting principles, applicable governmental accounting standards, the City's adopted financial policies, and the voter -approved requirements of Measure S.

C. Measure S Revenues shall not be used to make an internal loan to a non -public -safety fund or activity unless:

1. The City Council approves the loan at a public meeting;

2. The loan is documented in writing,

3. The loan does not impair the City's ability to fund budgeted Public Safety Purposes; and

4. All principal and interest are repaid to the Measure S account within the period approved by the City Council.
6 Section 6. Annual Measure S Public Safety Accountability Report.

A. No later than March 31 following the close of each fiscal year, or such earlier date as may be reasonably practicable following completion of the City's year-end financial records, the City Manager shall prepare and present to the City Council an annual "Measure S Public Safety Accountability Report."
B. The report shall be presented and discussed at a noticed public meeting of the City Council.

C. Before presentation to the City Council, the report shall be provided to the Citizens' Oversight Committee for its review and report in accordance with the Yucaipa Municipal Code. To the extent practicable, the Committee shall receive the report at least 30 days before the City Council meeting at which the report will be considered.

D. The annual report shall include, at a minimum:

1. The total Measure S Revenues received during the fiscal year;

2. The beginning and ending balance of unspent Measure S Revenues;

3. Interest and investment earnings attributable to Measure S Revenues;

4. A comparison of budgeted and actual Measure S expenditures;

5. Actual expenditures organized by each category of Public Safety Purpose identified in Section 3;

6. Identification of each material contract, program, project, capital improvement, administrative allocation, or other expenditure funded in whole or in part with Measure S Revenues;

7. A description of the public safety service, program, asset, or supporting function provided by each material expenditure;

8. The amount of Measure S Revenues used for direct services, indirect or administrative support, capital improvements, debt service, reserves, and other categories;

9. The methodology used to calculate material indirect or administrative allocations;

10. The amount of Measure S Revenues encumbered but not yet expended;

11. The amount of Measure S Revenues carried forward for future Public Safety Purposes;

12. A reconciliation of total Measure S Revenues, expenditures, encumbrances, adjustments, and remaining balances;
�= .

13. A description of any expenditure initially questioned as potentially ineligible and the disposition of that matter;

14. A summary of service levels, staffing, facilities, equipment, projects, response capabilities, or other public safety outcomes supported by Measure S Revenues, to the extent reasonably measurable;

15. The findings of the city-wide independent annual financial audit (which may or may not separate Measure S);

16. The findings and recommendations of the Citizens' Oversight Committee; and

17. A written certification by the City Manager stating whether all Measure S Revenues expended during the fiscal year were used for Public Safety Purposes consistent with this Resolution.

E. The report, supporting expenditure schedules, independent audit, and Citizens' Oversight Committee report shall be made available for public inspection and posted on the City's website.

Section 7. Existing Services; No Maintenance -of -Effort Requirement.

A. This Resolution establishes an exclusive -use policy for Measure S Revenues. It does not establish a maintenance -of -effort formula, a minimum annual public safety appropriation, or a requirement that Measure S-funded expenditures be in addition to a particular historical level of public safety spending.

B. Measure S Revenues may be used to maintain, preserve, restore, replace, expand, or enhance existing Public Safety Purposes, including costs that otherwise would have been paid from other legally available General Fund revenues.

C. Nothing in this Resolution prohibits the City Council from redirecting other legally available revenues from public safety to other lawful municipal purposes when Measure S Revenues are used to pay eligible public safety costs, provided that all Measure S Revenues remain devoted exclusively to Public Safety Purposes.

Section 8. Relationship to Measure S and Prior Council Actions.

A. This Resolution implements, supplements, and strengthens the expenditure policy stated in Resolution No. 2024-41.

B. Nothing in this Resolution amends Ordinance No. 453, the voter -approved provisions of Measure S, or any codified provision implementing Measure S.

C. Measure S remains a general tax. This Resolution constitutes an exercise of the City Council's legislative and budgetary discretion and does not convert Measure S into a special tax or alter the voter -approval requirements applicable to the tax.
pg. 10

D. This Resolution shall remain the policy of the City unless and until it is amended or repealed by subsequent action of the City Council. Any proposed amendment or repeal shall be separately identified on a City Council agenda and considered at a public meeting.

E. This Resolution does not create a contractual obligation, vested right, entitlement, or private right of action in favor of any person or entity. The adoption, amendment, and administration of the City budget remain legislative acts committed to the discretion of the City Council, subject to applicable law and the voter -approved requirements of Measure S.

Section 9. City Manager Authority.

The City Manager is authorized and directed to take all actions reasonably necessary to implement this Resolution, including establishing accounting procedures, developing expenditure and reporting forms, assigning responsibilities to City departments, obtaining professional or consulting services within existing purchasing authority, and presenting conforming amendments to the City's financial and budget policies.

Section 10. California Environmental Quality Act.

The City Council finds that adoption of this Resolution is not a "project" subject to the California Environmental Quality Act because it constitutes a governmental fiscal and administrative activity that does not involve a commitment to a specific project that may result in a potentially significant physical impact on the environment, within the meaning of State CEQA Guidelines section 15378(b)(4) and (b)(5). Any future capital project funded with Measure S Revenues shall remain subject to any environmental review otherwise required by law.

Section 11. Severability.

If any section, subsection, sentence, clause, phrase, or portion of this Resolution is held invalid or unconstitutional by a court of competent jurisdiction, the remaining portions shall remain in full force and effect. The City Council declares that it would have adopted this Resolution and each section, subsection, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more portions may be declared invalid or unconstitutional. pg. 11

Section 12. Effective Date.

This Resolution shall take effect immediately upon its adoption and shall apply to all proposed budgets, budget amendments, expenditures, and financial reports prepared after its effective date, including the proposed budget for Fiscal Year 2026-2027 and each fiscal year thereafter.

PASSED, APPROVED, and ADOPTED this 27th day of July, 2026.

ATTEST:

Ana V. Sauseda, MMC
Director of General Services/City Clerk
APPROVED AS TO FORM:

Steven Graham Pacifico,
City Attorney
Chris Venable, Mayor
pg. 12

ATTACHMENT 2

RESOLUTION NO. 2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA,

CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED

VOTERS OF THE CITY OF YUCAIPA OF A NONBINDING ADVISORY

MEASURE CONCERNING THE USE OF MEASURE S REVENUES FOR

PUBLIC SAFETY PURPOSES AND AUTHORIZING RELATED

ELECTION ACTIONS
WHEREAS, on June 24, 2024, the City Council adopted Resolution No. 2024-3 8, ordering the submission to the qualified voters of the City of Yucaipa of the City of Yucaipa Public Safety and Essential Services Protection Measure, commonly known as "Measure S"; and WHEREAS, Measure S proposed Ordinance No. 453, imposing a one -percent general transactions and use tax within the City of Yucaipa, with the revenues deposited into the City's General Fund and available for any lawful municipal purpose; and WHEREAS, on November 5, 2024, the qualified voters of the City approved Measure S by a majority vote, and on December 9, 2024, the City Council declared the election results and deemed Ordinance No. 453 adopted by the voters; and
WHEREAS, Measure S remains a general tax within the meaning of Article XI1I C of the California Constitution, and its revenues are not legally restricted by the voter -approved ordinance to any particular municipal program or purpose; and
WHEREAS, the ballot materials for Measure S identified the preservation of police, fire, paramedic, emergency response, roadway maintenance, and other essential services as intended uses of the locally controlled revenues generated by the measure; and WHEREAS, on June 24, 2024, the City Council adopted Resolution No. 2024-41, declaring its intention to use Measure S revenues to prevent reductions in public safety services and directing the preparation of an annual Measure S expenditure plan for review by the Citizens' Oversight Committee; and
WHEREAS, the City Council desires to obtain the opinion of the qualified voters of the City concerning whether the City Council should adopt and maintain a budgetary policy directing that all Measure S revenues be budgeted and expended exclusively for broadly defined public safety purposes and subject to annual public reporting; and WHEREAS, police protection, fire protection, emergency medical services, emergency preparedness and response, roadway and traffic safety, public safety facilities and equipment, and the support services necessary to provide those services are all components of a comprehensive municipal public safety system; and
pg. 1

WHEREAS, Elections Code section 9603 authorizes a city, at its discretion, to hold an advisory election on a date on which the city is permitted to hold a regular or special election for the purpose of allowing voters to voice their opinions on substantive issues or indicate approval or disapproval of a ballot proposal; and
WHEREAS, Elections Code section 9603 requires an advisory ballot proposal to appear under the heading "Advisory Vote Only" and provides that the results of an advisory vote are an indication of general voter opinion and are in no manner controlling on the sponsoring legislative body; and
WHEREAS, the next General Municipal Election in the City of Yucaipa will be held on Tuesday, November 3, 2026, and will be consolidated with the statewide general election held on the same date; and
WHEREAS, the City Council finds that submitting the advisory measure to the qualified voters will provide useful public guidance concerning the City Council's future budgetary allocation and public reporting of Measure S revenues, while preserving Measure S as a general tax and preserving the City Council's legislative and budgetary authority under applicable law.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA HEREBY RESOLVEs AS FOLLOWS:

Section 1. Incorporation of Recitals.

The recitals set forth above are true and correct and are incorporated into this Resolution as findings of the City Council.

Section 2. Submission of Advisory Measure.

Pursuant to Elections Code section 9603 and all other applicable laws, the City Council hereby orders the nonbinding advisory measure attached hereto as Exhibit A and incorporated herein by this reference to be submitted to the qualified voters of the City of Yucaipa.

Section 3. Election Called.

The City Council hereby calls and orders that the advisory measure identified in this Resolution be submitted to the qualified voters of the City of Yucaipa at the General Municipal Election to be held on Tuesday, November 3, 2026.

Section 4. Ballot Heading and Question.

The exact form of the advisory ballot heading and question to be printed on the ballot shall be as follows, subject only to such non -substantive formatting, spacing, lettering, or other technical changes as may be required by the San Bernardino County Registrar of Voters or applicable law:
pg. 2

ADVISORY VOTE ONLY
Measure _: Measure S Public Safety Funding Advisory
Measure
Should the City Council adopt and maintain a policy requiring YES all revenues from the voter -approved Measure S one -percent transactions and use tax to be budgeted and spent only for public safety, including law enforcement; fire and emergency medical services; emergency preparedness and response; roadway and traffic safety; public safety facilities, vehicles, equipment and technology; and related legal, insurance, risk management, NO administrative and support costs, with annual public reporting? Section 5. Full Text of Advisory Measure.

The full text of the advisory measure to be submitted to the voters is attached hereto as Exhibit A.

The City Clerk is authorized and directed to maintain a copy of the full text in the City Clerk's office and to make it available for public inspection in the manner required by law.

Section 6. Advisory Nature and Effect of Vote.

A. The measure is an advisory vote only. It does not enact an ordinance, amend Ordinance No. 453, amend the Yucaipa Municipal Code, impose or repeal a tax, create a legally restricted special tax, appropriate funds, or legally bind the City Council or any future City Council.

B. If more voters vote "YES" than "NO," the result shall indicate the electorate's opinion that the City Council should adopt and maintain the policy described in the advisory measure. If more voters vote "NO" than "YES," the result shall indicate the electorate's opinion that the City Council should not adopt or maintain that policy.

C. Consistent with Elections Code section 9603, the election result shall in no manner be controlling on the City Council. The City Council shall receive and consider the certified results as an expression of general voter opinion.

Section 7. Request for Consolidation.

Pursuant to Elections Code section 10403, the City Council requests that the San Bernardino County Board of Supervisors consolidate the election on the advisory measure with the statewide general election to be held on November 3, 2026. The City acknowledges that the consolidated election will be held and conducted in the manner prescribed by Elections Code section 10418.

This request is subject to Elections Code section 9603 and all other applicable requirements governing ballot capacity and consolidation.
pg. 3

Section 8. Election Services.

The City Council requests that the San Bernardino County Registrar of Voters conduct all proceedings and provide all services necessary for the election, including preparing and printing ballots and voter information materials; establishing vote centers, ballot drop boxes, and election procedures; mailing and receiving ballots; canvassing the returns; certifying the results; and performing all other acts necessary to conduct the consolidated election.

Section 9. Canvass of Returns.

The San Bernardino County Registrar of Voters is authorized and requested to canvass the returns of the election and certify the results to the City Council. The City Council shall thereafter receive and declare the results of the advisory election in the manner required by law.

Section 10. Reimbursement of Election Costs.

The City of Yucaipa shall reimburse San Bernardino County for the City's share of the costs of consolidating and conducting the election on the advisory measure upon presentation of a properly submitted invoice. The City Manager is authorized to approve and pay such costs from legally available City funds.

Section 11. Filing with County.

The City Clerk is authorized and directed to file this Resolution, including the exact form of the ballot heading and question and the full text of the advisory measure, with the San Bernardino County Board of Supervisors and the San Bernardino County Registrar of Voters no later than August 7, 2026, or such earlier deadline as may be established by the Registrar of Voters.

Section 12. Impartial Analysis.

Pursuant to Elections Code section 9280, the City Council directs the City Clerk to transmit a copy of the advisory measure to the City Attorney. The City Attorney is directed to prepare an impartial analysis of the measure, not to exceed 500 words, showing the effect of the measure on existing law and the operation of the measure, including its nonbinding advisory effect. The impartial analysis shall state that the measure was placed on the ballot by the City Council and shall be filed by the deadline established by the City Clerk or the San Bernardino County Registrar of Voters.

Section 13. Ballot Arguments.

Pursuant to Elections Code section 9282, the City Council authorizes the filing of written arguments for or against the advisory measure in the manner provided by law. The City Council authorizes the Mayor and such other eligible signers as may be selected by the Mayor in accordance with applicable law to prepare and file an argument concerning the measure, subject to applicable word limits, priorities, and filing deadlines. The City Clerk shall establish and publish the filing deadline and shall select arguments for printing in accordance with law. pg. 4

Section 14. Rebuttal Arguments. Pursuant to Elections Code section 9285, rebuttal arguments shall be permitted for this advisory measure. Rebuttal arguments shall be prepared, signed, filed, selected, printed, and distributed in the manner and within the time required by law and the deadlines established by the City Clerk or the San Bernardino County Registrar of Voters.

Section 15. Public Examination.

The City Clerk is authorized and directed to make the advisory measure materials, including the full text, impartial analysis, arguments, and rebuttal arguments, available for public examination in the time and manner required by Elections Code section 9295 and other applicable law.

Section 16. Notices.

The City Clerk is authorized and directed to give notice of the election and advisory measure, including notice of the time and place of holding the election, argument and rebuttal deadlines, public examination periods, and any other notices required by law.

Section 17. Ballot Letter and Non -Substantive Changes.

The advisory measure shall be designated by the letter assigned by the San Bernardino County Registrar of Voters. The City Manager, City Clerk, and City Attorney, and their respective designees, are authorized to make non -substantive, technical, grammatical, or formatting changes to the ballot heading, ballot question, full text, or election materials that may be required by the Registrar of Voters or applicable law, provided that such changes do not alter the substantive meaning or advisory effect of the measure.

Section 18. California Environmental Quality Act.

The City Council finds that adoption of this Resolution and submission of a nonbinding advisory measure to the voters is not a "project" under the California Environmental Quality Act because it is a governmental fiscal and administrative activity that does not approve a specific project, authorize construction, appropriate funds to a particular physical project, or commit the City to a course of action that may cause a direct or reasonably foreseeable indirect physical change in the environment. The City Council further finds that, even if the action were considered a project, it is exempt because it can be seen with certainty that submission of the advisory measure itself will not have a significant effect on the environment.

Section 19. Severability.

If any provision of this Resolution or its application to any person or circumstance is held invalid, the remaining provisions and applications shall remain in full force and effect to the maximum extent permitted by law.
pg. 5

Section 20. Effective Date. This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED this 27th day of July, 2026.

Chris Venable, Mayor
ATTEST:

Ana V. Sauseda, MMC
Director of General Services/City Clerk
APPROVED AS TO FORM:

Steven Graham Pacifico,
City Attorney

EXHIBIT A

FULL TEXT OF ADVISORY MEASURE

CITY OF YUCAIPA MEASURE S PUBLIC SAFETY FUNDING ADVISORY MEASURE Section A-1. Title.

This advisory measure shall be known as the "City of Yucaipa Measure S Public Safety Funding Advisory Measure."
Section A-2. Purpose and Advisory Nature.

A. The purpose of this measure is to obtain the opinion of the qualified voters of the City of Yucaipa concerning whether the City Council should adopt and maintain a budgetary policy requiring all Measure S Revenues to be budgeted and spent exclusively for Public Safety Purposes and requiring annual public reporting of those expenditures.

B. This measure is an advisory vote only under Elections Code section 9603. It is not legally binding on the City Council or any future City Council and does not itself appropriate or restrict City funds.

C. This measure does not amend Measure S, Ordinance No. 453, or the Yucaipa Municipal Code; does not impose, increase, extend, reduce, or repeal any tax; does not convert Measure S into a special tax; and does not alter the legal availability of Measure S revenues for lawful municipal purposes.

Section A-3. Advisory Proposal.

The voters are asked whether the City Council should adopt and maintain a policy under which:

1. All Measure S Revenues are separately identified in the City's budget and financial records and are budgeted and expended only for Public Safety Purposes, as broadly defined in this measure;

2. Unspent Measure S Revenues are carried forward for future Public Safety Purposes rather than assigned to non -public -safety uses; and

3. The City Manager provides an annual public report to the City Council identifying Measure S revenues received, budgeted and actual expenditures, unspent balances, and the public safety purposes supported by those revenues.

Section A-4. Definitions.

A. "Measure S" means the one -percent general transactions and use tax approved by the qualified voters of the City of Yucaipa on November 5, 2024, and enacted through Ordinance No. 453, including any successor provision of the Yucaipa Municipal Code. pg. 7

B. "Measure S Revenues" means all transactions and use tax proceeds received by the City pursuant to Measure S; separately identifiable interest, investment earnings, penalties, reimbursements, or other revenue attributable to those proceeds; Measure S proceeds carried forward from a prior fiscal year; and reimbursements received for expenditures originally paid from Measure S Revenues.

C. "Public Safety Purposes" shall be construed broadly and includes the direct costs and reasonably allocable indirect, administrative, overhead, capital, debt -service, reserve, and support costs described below.

1. Law Enforcement and Police Services.
(a) Contracts for law enforcement services, including services provided by the San Bernardino County Sheriffs Department;
(b) Patrol, traffic enforcement, criminal investigation, detective, crime analysis, specialized enforcement, school and community safety, and enforcement addressing gangs, narcotics, organized crime, retail theft, burglary, vehicle theft, fraud, vandalism, and other criminal activity;
(c) Community -oriented policing, neighborhood patrols, crime prevention, public education, youth diversion, gang prevention, and programs intended to prevent or reduce crime;
(d) Homelessness, behavioral -health, crisis -intervention, and outreach activities when performed by, coordinated with, or materially supporting law enforcement, emergency response, or the mitigation of threats to public health or safety; (e) Emergency dispatch, 911 services, records, evidence management, communications, radio systems, body -worn cameras, license -plate readers, surveillance systems, cybersecurity, and other public safety technology; (f) Training, recruitment, retention, overtime, mutual aid, vehicles, equipment, uniforms, facilities, supplies, and other costs necessary to provide law enforcement services; and
(g) Civil, administrative, or code enforcement primarily directed toward dangerous buildings, illegal occupancy, hazardous property conditions, public nuisances presenting a material threat to health or safety, illegal fireworks, unlawful dumping, dangerous animals, or comparable safety conditions.

2. Fire Protection and Emergency Medical Services.
(a) Contracts for fire protection, fire suppression, emergency medical response, paramedic, rescue, ambulance -coordination, and related emergency services, including pg. 8

services provided by the California Department of Forestry and Fire Protection or any successor provider;
(b) Staffing, operating, maintaining, improving, replacing, constructing, or acquiring fire stations, emergency -response facilities, training facilities, emergency operations centers, and related property;
(c) Fire engines, trucks, rescue vehicles, ambulances, command vehicles, apparatus, personal protective equipment, communications systems, medical equipment, rescue equipment, tools, technology, supplies, and equipment; (d) Fire prevention, inspection, plan review, vegetation management, defensible - space, weed -abatement, wildfire -mitigation, hazardous -materials, technical -rescue, public - education, and community -risk -reduction activities;
(e) Emergency medical response, paramedic squads, mass -casualty response, medical supplies, automatic external defibrillators, and programs intended to improve survival or reduce response times; and
(f) Training, recruitment, retention, mutual aid, emergency deployment, overtime, standby coverage, and other costs necessary to provide fire and emergency medical services.

3. Emergency Management and Disaster Preparedness.
(a) Emergency planning, preparedness, response, recovery, mitigation, continuity of operations, evacuation planning, shelter coordination, and community resilience; (b) Emergency operations centers, emergency alert and warning systems, interoperable communications, emergency supplies, generators, backup power, and volunteer emergency -response programs;
(c) Response to wildfire, earthquake, flood, severe weather, hazardous -material incidents, terrorism, civil disturbance, pandemic, major utility disruption, and other natural or human -caused emergencies; and
(d) Mutual -aid obligations, disaster -response contracts, emergency procurements, disaster recovery, and the non -reimbursed local share of eligible emergency or disaster expenditures.

4. Roadway and Transportation Safety.
(a) Traffic enforcement, collision investigation, traffic -control operations, crossing guards, and education concerning roadway, pedestrian, bicycle, e-bike, and vehicle safety; pg. 9

(b) Traffic signals, traffic -control devices, warning systems, roadway signs, pavement markings, striping, crosswalks, guardrails, barriers, medians, traffic -calming devices, street lighting, and pedestrian or bicycle safety improvements; (c) Engineering, design, construction, maintenance, repair, or replacement of roadways, intersections, sidewalks, trails, bridges, drainage facilities, slopes, shoulders, and related infrastructure when reasonably intended to reduce collisions, correct a hazardous condition, maintain emergency access, support evacuation, or protect motorists, pedestrians, bicyclists, emergency responders, or adjacent property; (d) Pavement repair, resurfacing, reconstruction, pothole repair, vegetation clearance, drainage work, and similar work having a substantial roadway -safety, emergency -access, evacuation, or hazard -reduction purpose; (e) Road -safety plans, traffic studies, collision analyses, speed surveys, signal - timing studies, safe -routes -to -school projects, and grant matching funds for transportation - safety projects; and
(f) Maintenance and improvement of designated evacuation routes and routes necessary for police, fire, paramedic, or other emergency response.

5. Public Safety Facilities, Vehicles, Equipment, and Capital Improvements. (a) Acquisition, construction, leasing, financing, improvement, repair, maintenance, security, and operation of facilities used for law enforcement, fire protection, emergency medical response, emergency management, dispatch, communications, or other Public Safety Purposes;
(b) Acquisition, leasing, financing, repair, replacement, maintenance, fueling, outfitting, and operation of vehicles, apparatus, aircraft, equipment, communications systems, software, technology, and other capital assets used for Public Safety Purposes; (c) Debt service, lease payments, financing costs, and reserves associated with eligible public safety capital assets or facilities; and (d) Planning, design, environmental review, project management, construction management, inspection, permitting, and other costs associated with eligible public safety capital projects.

6. Public Safety Legal, Insurance, Administrative, and Support Costs. (a) City Attorney and outside legal services concerning public safety contracts, operations, personnel, labor relations, enforcement, litigation, claims, risk management, emergencies, facilities, procurement, and related matters; pg. 10

(b) Liability, property, vehicle, workers' compensation, and other insurance; claims administration; self-insurance and risk -pool contributions; deductibles; settlements; judgments; and loss -prevention costs reasonably attributable to Public Safety Purposes; (c) Finance, accounting, payroll, auditing, purchasing, contracting, grant administration, budgeting, revenue administration, and financial reporting supporting Public Safety Purposes;
(d) Human resources, recruitment, classification, labor relations, employee benefits, training, occupational health, and workplace -safety services supporting public safety personnel or operations;
(e) Information technology, cybersecurity, communications, geographic information systems, records management, data storage, software, hardware, and technical support used by or supporting public safety operations; (f) Fleet maintenance, facilities maintenance, utilities, fuel, procurement, warehousing, inventory, and logistical support for public safety facilities, vehicles, personnel, and equipment;
(g) Public information, community engagement, translation, accessibility, and communications related to public safety programs, emergencies, alerts, preparedness, or required accountability;
(h) Administration of Measure S, including California Department of Tax and Fee Administration charges, revenue consultants, independent audits, Citizens' Oversight Committee support, accounting, reporting, and legal compliance; and (i) A reasonable share of other City administrative or overhead costs that support Public Safety Purposes and are assigned through a documented and consistently applied cost -allocation methodology.

7. Other Substantially Related Expenditures.

Any other expenditure that the City Council determines, based upon written findings made at a public meeting, has a primary and substantial relationship to protecting life, health, property, emergency access, roadway safety, community security, emergency preparedness, or the effective delivery and administration of public safety services.

Section A-5. Annual Public Reporting.

The proposed policy would require the City Manager to present an annual public report to the City Council after the close of each fiscal year. The report would identify, at a minimum:

1. Total Measure S Revenues received during the fiscal year and any balance carried forward from prior years;
pg. 11

2. Budgeted and actual Measure S expenditures, organized by Public Safety Purpose;

3. Material contracts, programs, projects, capital improvements, administrative allocations, and other expenditures funded in whole or in part with Measure S Revenues;

4. The methodology used for material indirect, administrative, insurance, legal, and overhead allocations;

5. Encumbered but unspent amounts and Measure S Revenues carried forward for future Public Safety Purposes;

6. A reconciliation of Measure S revenues, expenditures, encumbrances, adjustments, and ending balances; and

7. A certification by the City Manager stating whether all Measure S Revenues expended during the fiscal year were used for Public Safety Purposes under the policy.

Section A-6. Effect of Advisory Vote.

A. A greater number of "YES" votes than "NO" votes will indicate the electorate's opinion that the City Council should adopt and maintain the policy described in this measure.

B. A greater number of "NO" votes than "YES" votes will indicate the electorate's opinion that the City Council should not adopt or maintain the policy described in this measure.

C. The result is advisory only and will in no manner control the City Council. The City Council will retain all legislative and budgetary authority provided by law, including authority to adopt, amend, or repeal budget policies concerning Measure S revenues.

D. No provision of this advisory measure creates a contractual obligation, vested right, entitlement, legally enforceable restriction, or private right of action against the City, the City Council, or any City officer or employee.
pg. 12

ATTACHMENT 3

RESOLUTION NO.2026-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF YUCAIPA,

CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED

VOTERS OF THE CITY OF YUCAIPA OF A MEASURE AMENDING
ORDINANCE NO. 453 AND CHAPTER 3.18 OF THE YUCAIPA

MUNICIPAL CODE TO CONTINUE THE EXISTING ONE -PERCENT

MEASURE S TRANSACTIONS AND USE TAX AS A SPECIAL TAX FOR

PUBLIC SAFETY PURPOSES ONLY AND AUTHORIZING RELATED

ELECTION ACTIONS
WHEREAS, the City of Yucaipa provides essential public safety services to residents, businesses, property owners, and visitors, including law enforcement, fire protection, emergency medical response, emergency management, roadway safety, code enforcement addressing dangerous conditions, and the facilities, equipment, legal, insurance, administrative, and other support necessary to provide those services; and
WHEREAS, on June 24, 2024, the City Council adopted Resolution No. 2024-38, submitting to the qualified voters of the City the Yucaipa Public Safety and Essential Services Protection Measure, commonly known as Measure S, together with proposed Ordinance No. 453; and
WHEREAS, on November 5, 2024, a majority of the qualified voters voting on Measure S approved Ordinance No. 453, which established a one -percent transactions and use tax within the City, with no automatic sunset; and
WHEREAS, Measure S is presently a general tax, and Chapter 3.18 of the Yucaipa Municipal Code presently provides that the revenues may be used for general municipal services and all lawful public purposes and are deposited into the City's General Fund; and WHEREAS, the ballot materials for Measure S emphasized the protection of police, fire, paramedic, 911 emergency response, roadway safety, and other essential services, and the City Council adopted Resolution No. 2024-41 expressing its intent to use Measure S revenues to prevent reductions in public safety services; and
WHEREAS, the City Council desires to submit to the voters a binding amendment that would, without increasing the existing one -percent tax rate, convert Measure S from a general tax into a special tax and legally require all Measure S revenues received on and after the operative date of the amendment to be used solely for the public safety purposes and supporting costs specified in the proposed ordinance; and
WHEREAS, Article XIII C, section 1, subdivision (d) of the California Constitution defines a special tax as a tax imposed for specific purposes, including a tax imposed for specific purposes that is placed into a fund containing other monies; and pg. 1

WHEREAS, Article XIII C, section 2, subdivision (d) of the California Constitution requires a local -government special tax to be submitted to the electorate and approved by a two- thirds vote; and
WHEREAS, Revenue and Taxation Code section 7285.91 authorizes the governing body of a city to levy, increase, or extend a transactions and use tax for specific purposes when the ordinance is approved by a two-thirds vote of all members of the governing body, approved by a two-thirds vote of the qualified voters voting on the measure, conforms to the Transactions and Use Tax Law, and includes an expenditure plan describing the specific projects for which the revenues may be expended; and
WHEREAS, Government Code section 53724 requires a tax proposal to identify the type and rate of the tax, the method of collection, the election date, and, for a special tax, the purpose or service for which the tax is sought, and further provides that special -tax revenues may be used only for the purpose or service for which the tax was imposed; and WHEREAS, Government Code sections 50075.1 and 50075.3 require voter -approved local special -tax measures to identify the specific purposes of the tax, restrict the proceeds to those purposes, create an account into which the proceeds are deposited, and require an annual report concerning collections, expenditures, and the status of authorized projects; and WHEREAS, Elections Code section 9222 authorizes the City Council to submit to the voters, without a petition, a proposition for the amendment or enactment of an ordinance at a regular or special city election, provided that the election is held not less than 88 days after the order of election; and
WHEREAS, the City's next General Municipal Election will be held on Tuesday, November 3, 2026, and the City Council desires to submit the proposed special -tax amendment to all qualified voters of the City at that election and to consolidate the measure election with the statewide general election held on the same date; and
WHEREAS, the proposed ordinance includes a detailed public safety expenditure plan, a separate restricted account, annual budget disclosure, independent audits, annual public reporting, and review by the existing Citizens' Oversight Committee; and WHEREAS, the proposed measure does not increase the Measure S transactions or use tax rate, does not impose a second or duplicate transactions and use tax, and is intended to continue the existing tax without interruption while changing the legal purposes for which future proceeds may be expended.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF YUCAIPA HEREBY RESOLVES AS FOLLOWS:
pg. 2

Section 1. Recitals.

The City Council finds and determines that the foregoing recitals are true and correct and incorporates them into this Resolution by this reference.

Section 2. Approval of Ordinance for Submission to Voters.

Pursuant to Elections Code section 9222, Revenue and Taxation Code section 7285.91, Government Code sections 50075.1, 50075.3, and 53724, Article XIII C of the California Constitution, and all other applicable law, the City Council hereby approves for submission to the qualified voters of the City of Yucaipa the proposed ordinance attached hereto as Exhibit A and incorporated herein by this reference, entitled:
"AN ORDINANCE OF THE PEOPLE OF THE CITY OF YUCAIPA, CALIFORNIA, AMENDING ORDINANCE NO. 453 AND CHAPTER 3.18 OF THE YUCAIPA MUNICIPAL

CODE TO CONVERT THE EXISTING ONE -PERCENT MEASURE S GENERAL

TRANSACTIONS AND USE TAX INTO A SPECIAL TAX FOR PUBLIC SAFETY PURPOSES ONLY, WITHOUT INCREASING THE TAX RATE."
Section 3. Election Ordered.

The City Council hereby calls and orders that the measure identified in this Resolution be submitted to the qualified voters of the City of Yucaipa at the General Municipal Election to be held on Tuesday, November 3, 2026.

Section 4. Ballot Question.

The exact form of the ballot question to be printed on the ballot shall be as follows, subject only to non -substantive formatting, spacing, capitalization, or lettering changes required by the San Bernardino County Registrar of Voters:

CITY OF YUCAIPA MEASURE S PUBLIC SAFETY
SPECIAL TAX MEASURE.

Shall the measure converting the existing one -percent YES Measure S transactions and use tax, without increasing the rate, into a special tax generating approximately
$9,000,000 annually until ended by voters, with proceeds restricted to police, fire, emergency medical response, emergency preparedness, roadway safety, and related
facilities, equipment, legal, insurance, administrative and support costs, with separate accounting, annual audits, NO public reports and citizens' oversight, be adopted?
pg. 3

Section 5. Full Text of Measure.

The full text of the measure to be submitted to the voters is attached as Exhibit A. The City Clerk is authorized and directed to maintain a copy of the full text of the measure in the City Clerk's office and to make it available for public inspection and distribution in the manner required by law.

Section 6. Two -Thirds Voter Approval Required.

The measure is a special tax and shall be adopted only if it receives the affirmative votes of at least two-thirds of the qualified voters of the City voting on the measure. If the measure does not receive the required two-thirds voter approval, the measure shall have no effect and Ordinance No. 453 and Chapter 3.18 of the Yucaipa Municipal Code shall continue in effect without the amendments proposed by Exhibit A.

Section 7. Two -Thirds City Council Approval.

This Resolution and the proposed special -tax ordinance attached as Exhibit A are adopted and approved for submission to the voters by an affirmative vote of not less than two-thirds of all members of the City Council, as required by Revenue and Taxation Code section 7285.91.

Section 8. Request for Consolidation.

Pursuant to Elections Code section 10403, the City Council requests that the San Bernardino County Board of Supervisors consolidate the election on this measure with the statewide general election to be held on November 3, 2026, and that the consolidated election be held and conducted in the manner prescribed by Elections Code section 10418 and other applicable law.

Section 9. Election Services.

The City Council requests that the San Bernardino County Registrar of Voters conduct all proceedings necessary for the election, including printing and mailing voter information materials, preparing and printing ballots, providing vote centers and ballot -processing services, canvassing the returns, and performing all other acts necessary to conduct the election.

Section 10. Canvass of Returns.

The San Bernardino County Registrar of Voters is authorized and requested to canvass the returns of the election and certify the results to the City Council. The City Council shall thereafter receive and declare the results in the manner required by law.

Section 11. Reimbursement of Election Costs.

The City of Yucaipa shall reimburse San Bernardino County for the City's share of the costs of consolidating and conducting the election on the measure upon presentation of a properly submitted invoice.

Section 12. Filing with County.

The City Clerk is authorized and directed to file this Resolution, including the exact form of the ballot question and the full text of the proposed ordinance, with the San Bernardino County Board of Supervisors and the San Bernardino County Registrar of Voters at the same time and no later than August 7, 2026, as required by Elections Code section 10403 and other applicable law.

Section 13. Impartial Analysis.

Pursuant to Elections Code section 9280, the City Council directs the City Clerk to transmit a copy of the measure to the City Attorney. The City Attorney is directed to prepare an impartial analysis of the measure, not to exceed 500 words, showing the effect of the measure on existing law and the operation of the measure, including that the measure was placed on the ballot by the City Council and requires two-thirds voter approval.

Section 14. Ballot Arguments.

Pursuant to Elections Code section 9282 and other applicable law, written arguments for and against the measure may be filed. The City Council authorizes the Mayor, and such other eligible signers as the Mayor may designate, to prepare and file an argument in favor of the measure, subject to applicable word limits, signature limits, and filing deadlines. The City Clerk shall establish or publish the applicable filing deadline and shall follow the statutory priority rules if more than one argument is submitted for either position.

Section 15. Rebuttal Arguments.

Pursuant to Elections Code section 9285, rebuttal arguments shall be permitted for the measure and shall be filed in the manner, form, and time required by law and by the deadlines established by the City Clerk or the San Bernardino County Registrar of Voters.

Section 16. Public Examination.

The City Clerk is authorized and directed to make the measure materials, including the full text of the measure, the impartial analysis, arguments, and rebuttal arguments, available for public examination in the time and manner required by Elections Code section 9295 and other applicable law.

Section 17. Notices.

The City Clerk is authorized and directed to give notice of the election and the measure, including notice of the time and place of holding the election, argument and rebuttal deadlines, public examination periods, and any other notice required by law. pg. 5

Section 18. Measure Letter; Technical and Administrative Revisions.

The measure shall be designated by the letter assigned by the San Bernardino County Registrar of Voters. The City Manager, City Clerk, City Attorney, and their respective designees are authorized to make non -substantive, technical, conforming, or formatting changes to the ballot question, measure text, or election materials that may be required by the Registrar of Voters, the California Department of Tax and Fee Administration, or applicable law, provided that the changes do not alter the tax rate, restricted purposes, duration, voter -approval threshold, or substantive operation of the measure. Any change that would materially alter the measure shall be returned to the City Council for approval before the statutory filing deadline.

Section 19. California Department of Tax and Fee Administration Review.

The City Manager, City Clerk, and City Attorney are authorized and directed to submit the proposed ordinance to the California Department of Tax and Fee Administration for review and to take all actions reasonably necessary to coordinate the continued administration of the existing tax and the implementation of the special -tax restrictions if the measure is approved. This authorization does not permit a substantive amendment of the voter -approved purposes or tax rate without the voter approval required by law.

Section 20. California Environmental Quality Act.

The City Council finds that adoption of this Resolution and submission of the measure to the voters is not a "project" under the California Environmental Quality Act because the action involves governmental fiscal and election activities and does not approve a specific physical project, authorize construction, or commit the City to a course of action that may cause a direct or reasonably foreseeable indirect physical change in the environment. The City Council further finds that, even if the action were considered a project, it is exempt because it can be seen with certainty that submitting the measure to the voters will not itself have a significant effect on the environment.

Any future physical project funded with Measure S revenues shall remain subject to any environmental review otherwise required by law.

Section 21. Severability.

If any provision of this Resolution or its application to any person or circumstance is held invalid, the remaining provisions and applications shall remain in full force and effect to the maximum extent permitted by law.
pg. 6

Section 22. Effective Date.

This Resolution shall take effect immediately upon its adoption.

PASSED, APPROVED, and ADOPTED this 27th day of July, 2026.

ATTEST:

Ana V. Sauseda, MMC
Director of General Services/City Clerk
APPROVED AS TO FORM:

Steven Graham Pacifico,
City Attorney
Chris Venable, Mayor
pg. 7

EXHIBIT A

FULL TEXT OF MEASURE
ORDINANCE NO. _

AN ORDINANCE OF THE PEOPLE OF THE CITY OF YUCAIPA, CALIFORNIA, AMENDING ORDINANCE NO. 453 AND CHAPTER 3.18 OF THE YUCAIPA

MUNICIPAL CODE TO CONVERT THE EXISTING ONE -PERCENT MEASURE S

GENERAL TRANSACTIONS AND USE TAX INTO A SPECIAL TAX FOR PUBLIC

SAFETY PURPOSES ONLY, WITHOUT INCREASING THE TAX RATE
WHEREAS, on November 5, 2024, the qualified voters of the City of Yucaipa approved Measure S and adopted Ordinance No. 453, establishing a one -percent general transactions and use tax within the City; and
WHEREAS, Measure S is codified in Chapter 3.18 of the Yucaipa Municipal Code, continues until ended by the voters, and is presently available for general municipal services and all lawful public purposes; and
WHEREAS, the People of the City desire to retain the existing one -percent transactions and use tax rate while converting the tax into a special tax whose proceeds are legally restricted to the public safety programs, services, projects, facilities, equipment, and supporting costs described in this Ordinance; and
WHEREAS, the People find that law enforcement, fire protection, emergency medical response, emergency management, roadway safety, and the facilities, equipment, legal, insurance, administrative, and support services necessary to deliver those functions protect life, health, property, emergency access, and community security; and WHEREAS, Revenue and Taxation Code section 7285.91 authorizes a city to levy, increase, or extend a transactions and use tax for specific purposes when the ordinance is approved by two- thirds of the governing body and two-thirds of the qualified voters voting on the measure, conforms to the Transactions and Use Tax Law, and includes an expenditure plan describing the specific projects for which the revenues may be expended; and
WHEREAS, Government Code sections 50075.1 and 50075.3 require a voter -approved special tax to identify the specific purposes of the tax, restrict the proceeds to those purposes, establish an account into which the proceeds are deposited, and require an annual report concerning collections, expenditures, and authorized projects; and
WHEREAS, this Ordinance provides a detailed expenditure plan, a separate restricted account, annual budget disclosure, an independent annual audit, annual public reporting, and Citizens' Oversight Committee review; and

WHEREAS, this Ordinance does not increase the existing Measure S tax rate, impose an additional transactions and use tax, or extend the tax beyond its existing voter -approved duration, but instead changes the legal character and permitted use of Measure S revenues received after the operative date.

THE PEOPLE OF THE CITY OF YUCAIPA DO HEREBY ORDAIN AS FOLLOWS:

Section 1. Incorporation of Recitals.

The foregoing recitals are true and correct, are adopted as findings of the People of the City of Yucaipa, and are incorporated into this Ordinance by this reference.

Section 2. Purpose and Voter Intent.

The purpose of this Ordinance is to amend Ordinance No. 453 and Chapter 3.18 of the Yucaipa Municipal Code so that, beginning on the operative date established below, the existing one - percent Measure S transactions and use tax will continue without interruption as a special tax and all future proceeds will be legally restricted to the public safety purposes stated in this Ordinance.

The voters intend this Ordinance to preserve the existing tax rate and duration while imposing binding expenditure restrictions and enhanced accountability requirements.

Section 3. Amendment and Restatement of Selected Provisions of Chapter 3.18.

Sections 3.18.010, 3.18.020, 3.18.050, 3.18.060, 3.18.070, 3.18.080, and 3.18.160 of Chapter 3.18 of the Yucaipa Municipal Code are amended and restated, and Sections 3.18.170 through 3.18.210 are added, to read as follows:

Sec. 3.18.010. Title.

This chapter shall be known as the "City of Yucaipa Measure S Public Safety Special Transactions and Use Tax Ordinance."
Sec. 3.18.020. Purpose and intent.

In enacting this chapter, it is the purpose and intent of the People of the City to:
(1) Continue, without increasing the rate, the existing one -percent retail transactions and use tax approved by the voters as Measure S in 2024, but convert the tax from a general tax into a special tax whose proceeds may be used only for the Public Safety Purposes identified in Section 3.18.170. (2) Impose and administer the tax in accordance with Revenue and Taxation Code sections 7251 et seq. and 7285.91, Part 1.6 of Division 2 of the Revenue and Taxation Code, Article XIII C of the California Constitution, and other applicable law.
(3) Adopt an expenditure plan describing the specific public safety programs, services, projects, capital improvements, and supporting costs for which the tax proceeds may be expended. �_ .

(4) Require the proceeds and attributable earnings to be deposited into a separate restricted account, budgeted and accounted for separately, independently audited, publicly reported, and reviewed by the Citizens' Oversight Committee.
(5) Retain administrative provisions that conform as closely as practicable to the statutory and administrative procedures used by the California Department of Tax and Fee Administration, minimize collection costs and retailer recordkeeping burdens, and maintain uninterrupted collection of the existing tax.

Sec. 3.18.050. Restricted special -tax proceeds; independent annual audit. (a) All proceeds generated by the tax on and after the Special Tax Operative Date, together with interest and other earnings attributable to those proceeds, are special -tax revenues and shall be deposited into a separate restricted account entitled the "Measure S Public Safety Special Tax Fund" or another separately identifiable restricted account established by the City's chief fiscal officer.
(b) The special -tax revenues shall be applied solely to the Public Safety Purposes and specific programs and projects identified in Section 3.18.170 and shall not be used for any other purpose. (c) The Measure S Public Safety Special Tax Fund and all expenditures from the fund shall be included in the City's independent annual financial audit. The audit shall determine whether the revenues were collected, managed, and expended in accordance with this chapter and applicable law and shall include any findings or recommendations concerning compliance. (d) The independent auditor's report shall be presented annually to the Citizens' Oversight Committee and the City Council at noticed public meetings and shall be made available for public inspection and posted on the City's website.

Sec. 3.18.060. Special Tax Operative Date; continuation and transition. (a) "Special Tax Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the City Council declares the measure approved by at least two-thirds of the qualified voters voting on the measure, or such later date as may be required by the California Department of Tax and Fee Administration for orderly implementation. (b) The existing one -percent tax imposed by this chapter shall remain continuously in effect before, on, and after the Special Tax Operative Date. This Ordinance does not impose a second or duplicate tax, increase the transactions tax rate, increase the use tax rate, or create a gap in collection. (c) Measure S revenues attributable to reporting periods ending before the Special Tax Operative Date shall remain general -tax revenues governed by the law in effect before that date. Measure S revenues attributable to reporting periods beginning on or after the Special Tax Operative Date shall be special -tax revenues governed by this Ordinance. The City Manager may adopt a reasonable and consistently applied allocation method for receipts or adjustments that relate to reporting periods spanning the Special Tax Operative Date. pg. 10

(d) If this Ordinance does not receive the required two-thirds voter approval, it shall have no effect and the existing general transactions and use tax under Ordinance No. 453 and Chapter 3.18 shall remain in force without interruption or amendment.

See. 3.18.070. Duration.

The tax shall continue until ended or amended by the vote of the registered voters of the City required by the California Constitution and applicable law. This Ordinance does not extend or shorten the existing duration of Measure S.

Sec. 3.18.080. Contract with California Department of Tax and Fee Administration.

The City shall maintain and, as necessary, amend its contract with the California Department of Tax and Fee Administration to perform all functions incident to the administration and operation of this chapter. The City Manager is authorized to execute administrative agreements and documents necessary to continue collection and implement the conversion of the tax to a special tax, provided that no administrative agreement may alter the voter -approved tax rate, restricted purposes, duration, or accountability requirements.

Sec. 3.18.160. Citizens' Oversight Committee.
(a) The Citizens' Oversight Committee previously established for Measure S shall continue and shall independently review and report on the City's collection, budgeting, accounting, and expenditure of Measure S revenues. All meetings of the Committee shall be held in accordance with the Ralph M. Brown Act.
(b) The Committee shall consist of five members who are residents of the City. Members shall be appointed by the City Council at a public meeting, shall serve two-year terms at the pleasure of the City Council, and shall serve without compensation. Three members constitute a quorum. The City Council may adopt reasonable procedures governing recruitment, appointment, staggered terms, vacancies, attendance, and removal, provided that such procedures do not materially diminish the Committee's independent review function.
(c) The Committee shall annually review:
(1) The proposed Measure S Public Safety Expenditure Plan included in the City's budget; (2) The actual receipt and expenditure of Measure S revenues, (3) The independent annual audit prepared by the City; and (4) The annual accountability report required by Section 3.18.190. (d) The Committee shall submit an annual written report containing its findings and recommendations to the City Council for review and discussion at a noticed public meeting. The Committee shall not direct expenditures or exercise management authority over City operations. pg. 11

(e) The Committee may not hire or retain its own staff, consultants, or contractors. The City Manager, City Attorney, and City's chief fiscal officer shall provide reasonably necessary staff support and access to nonprivileged financial records. Nothing in this subsection waives the attorney -client privilege, attorney work -product doctrine, personnel confidentiality, law - enforcement privilege, security -sensitive information protections, or any other lawful privilege or exemption.

Sec. 3.18.170. Public Safety Expenditure Plan; permitted purposes. (a) This section constitutes the expenditure plan required by Revenue and Taxation Code section 7285.91. All Measure S special -tax revenues shall be expended solely for one or more of the specific public safety programs, services, projects, capital improvements, and supporting costs identified in this section.
(b) "Public Safety Purposes" means the following direct costs and the reasonably allocable supporting costs described below:
(1) Law Enforcement and Police Services.
(A) Contracts for law enforcement services, including services provided by the San Bernardino County Sheriffs Department or a successor provider. (B) Patrol, traffic enforcement, criminal investigations, detective services, crime analysis, specialized enforcement, school and community safety, and services addressing gangs, narcotics, organized crime, retail theft, burglary, robbery, vehicle theft, fraud, vandalism, and other criminal activity.
(C) Community -oriented policing, neighborhood patrols, crime prevention, public education, youth diversion, gang prevention, and programs intended to prevent or reduce crime.
(D) Homelessness response, behavioral -health response, crisis intervention, outreach, and related services when performed by, coordinated with, or materially supporting law enforcement, emergency response, or mitigation of a documented threat to health or safety.
(E) Emergency dispatch, 911 services, records, evidence management, radio and communications systems, body -worn cameras, automated license -plate readers, public safety cameras, cybersecurity for public safety systems, computer -aided dispatch, records - management systems, and other public safety technology. (F) Recruitment, retention, training, mutual aid, overtime, standby coverage, uniforms, vehicles, equipment, facilities, supplies, and other costs necessary to provide law enforcement services.
pg. 12

(G) Civil, administrative, or code -enforcement programs primarily directed to dangerous buildings, unlawful occupancy, hazardous property conditions, public nuisances presenting a material threat to health or safety, illegal fireworks, unlawful dumping, dangerous animals, or similar safety conditions.
(2) Fire Protection and Emergency Medical Services.
(A) Contracts and operations for fire protection, fire suppression, emergency medical services, paramedic services, rescue, ambulance coordination, hazardous - materials response, and related emergency -response services, including services provided by the California Department of Forestry and Fire Protection or a successor provider. (B) Staffing, operation, maintenance, improvement, replacement, construction, acquisition, or leasing of fire stations, emergency -response facilities, training facilities, emergency operations centers, and related property.
(C) Fire engines, trucks, rescue and command vehicles, ambulances, apparatus, personal protective equipment, communications systems, medical equipment, rescue equipment, tools, technology, and supplies.
(D) Fire prevention, inspection, plan review, vegetation management, defensible - space programs, weed abatement, wildfire mitigation, technical rescue, public education, and community risk -reduction programs.
(E) Emergency medical response, paramedic squads, mass -casualty response, medical supplies, automatic external defibrillators, and programs intended to improve survival or reduce emergency response times.
(F) Recruitment, retention, training, mutual aid, emergency deployment, overtime, standby coverage, and other costs necessary to provide fire and emergency medical services.
(3) Emergency Management and Disaster Preparedness.
(A) Emergency planning, preparedness, response, recovery, mitigation, and continuity -of -operations activities.
(B) Emergency operations centers, emergency alert and warning systems, interoperable communications, evacuation planning, shelters, emergency supplies, generators, backup power, and emergency public information. (C) Community Emergency Response Team and other volunteer preparedness or emergency -response programs.
pg. 13

(D) Response to wildfire, earthquake, flood, severe weather, hazardous -material incidents, terrorism, civil disturbance, pandemic, major utility disruption, and other natural or human -caused emergencies.
(E) Mutual -aid obligations, disaster -response contracts, emergency procurements, disaster recovery, and the non -reimbursed local share of eligible emergency or disaster expenditures.
(4) Roadway and Transportation Safety.
(A) Traffic enforcement, collision investigation, traffic -control operations, crossing -guard services, and public education concerning motorist, pedestrian, bicycle, e- bike, and vehicle safety.
(B) Traffic signals, traffic -control devices, warning systems, roadway signs, pavement markings, striping, crosswalks, guardrails, barriers, medians, traffic -calming devices, street lighting, and pedestrian or bicycle safety improvements. (C) Engineering, design, construction, maintenance, repair, or replacement of roadways, intersections, sidewalks, trails, bridges, drainage facilities, slopes, shoulders, and related infrastructure when the primary and substantial purpose is to reduce collisions, correct a hazardous condition, preserve emergency access, support evacuation, or protect motorists, pedestrians, bicyclists, emergency responders, or adjacent property. (D) Pavement repair, resurfacing, reconstruction, pothole repair, vegetation clearance, drainage work, and similar work only when the City Engineer or designee makes and retains a written determination that the project has a primary and substantial roadway - safety, emergency -access, evacuation, or hazard -reduction purpose. (E) Local road -safety plans, traffic studies, collision analyses, speed surveys, signal -timing studies, safe -routes -to -school projects, and matching funds for transportation -safety grants.
(F) Maintenance and improvement of designated evacuation routes and routes necessary for police, fire, paramedic, or other emergency response. (5) Public Safety Facilities, Vehicles, Equipment, Technology, and Capital Projects. (A) Acquisition, construction, leasing, financing, improvement, repair, maintenance, security, and operation of facilities used primarily for law enforcement, fire protection, emergency medical response, emergency management, dispatch, communications, roadway safety, or another permitted Public Safety Purpose. (B) Acquisition, leasing, financing, repair, replacement, maintenance, fueling, outfitting, and operation of vehicles, apparatus, equipment, communications systems, software, technology, and other capital assets used for a permitted Public Safety Purpose. pg. 14

(C) Debt service, lease payments, financing costs, and legally required or fiscally prudent reserves associated with eligible public safety facilities or capital assets. (D) Planning, design, environmental review, project management, construction management, inspection, permitting, and other costs associated with an eligible public safety capital project.
(6) Legal, Insurance, Risk Management, Administrative, and Operational Support. (A) City Attorney and outside legal services concerning eligible public safety contracts, operations, personnel, labor relations, enforcement, litigation, claims, emergency response, facilities, procurement, financing, and related matters. (B) Liability, property, vehicle, cyber, and other insurance; workers' compensation; claims administration; risk -pool or self-insurance contributions; deductibles; settlements; judgments; and loss -prevention activities, but only to the extent directly attributable or reasonably allocated to eligible public safety operations, personnel, facilities, vehicles, equipment, or projects.
(C) Finance, accounting, payroll, independent auditing, purchasing, contracting, grant administration, budgeting, revenue administration, investment, and financial - reporting services supporting eligible Public Safety Purposes. (D) Human resources, recruitment, classification, labor relations, employee - benefits administration, training, occupational health, and workplace -safety services supporting public safety personnel or operations.
(E) Information technology, cybersecurity, communications, geographic information systems, records management, data storage, software, hardware, and technical support used by or supporting public safety operations. (F) Fleet maintenance, facilities maintenance, utilities, fuel, procurement, warehousing, inventory, and logistical support for eligible public safety facilities, vehicles, personnel, equipment, and projects.
(G) Public information, community engagement, translation, accessibility, and communications reasonably related to public safety programs, emergencies, alerts, preparedness, accountability, or required public reporting. (H) Costs of administering the tax, including California Department of Tax and Fee Administration charges, revenue consultants, audits, accounting, legal compliance, election -related implementation costs, and Citizens' Oversight Committee support. (I) A reasonable share of other City administrative or overhead costs that materially support eligible Public Safety Purposes, determined under a written, consistently applied, pg. 15

and auditable cost -allocation methodology based on actual use, workload, staffing, expenditures, square footage, transactions, or another reasonable allocation factor. (7) Other Closely Related Public Safety Programs or Projects. (A) A program, service, project, capital improvement, or supporting cost not expressly listed above may be funded only if it falls within the scope of one or more of the categories in paragraphs (1) through (6), and the City Council determines by written findings adopted at a noticed public meeting that the expenditure has a primary and substantial relationship to protecting life, health, property, emergency access, roadway safety, community security, emergency preparedness, or the effective delivery of an expressly authorized Public Safety Purpose.
(B) This paragraph does not authorize the City Council to create a new purpose, materially broaden the voter -approved expenditure plan, or fund a general governmental activity merely because it provides an incidental or indirect public benefit. (c) The following expenditures are not authorized unless and only to the extent they independently satisfy an express category above: general parks and recreation, cultural or entertainment programs, economic development, routine beautification, general social services, ordinary street capacity or aesthetic improvements, and general administrative overhead lacking a documented and proportionate allocation to an eligible Public Safety Purpose. (d) Measure S revenues may be used to maintain, preserve, restore, replace, expand, enhance, or establish eligible Public Safety Purposes. This chapter does not establish a maintenance -of -effort requirement or require Measure S revenues to supplement rather than replace other legally available revenues previously used for an eligible Public Safety Purpose. (e) Unspent or unencumbered Measure S revenues shall remain in the restricted account and may be carried forward and accumulated for future Public Safety Purposes. The City Council may establish reasonable reserves for volatility, emergencies, capital replacement, or future eligible projects, provided that the reserve remains legally restricted by this chapter.

Sec. 3.18.180. Annual budget and Measure S Public Safety Expenditure Plan. (a) Each proposed annual budget shall contain a separately identified Measure S Public Safety Expenditure Plan. The plan shall identify:
(1) Projected Measure S revenues for the fiscal year;
(2) Unspent or encumbered Measure S revenues carried forward from prior years; (3) Interest and other earnings attributable to Measure S revenues; (4) Each department, contract, program, project, capital improvement, reserve, or expenditure category proposed to receive Measure S revenues and the amount proposed for each; pg. 16

(5) Whether each proposed expenditure is a direct cost, indirect or administrative allocation, capital cost, debt -service cost, reserve, transfer, or reimbursement; used;
(6) For each material indirect or administrative allocation, the method and allocation factor (7) The projected year-end restricted fund balance; and (8) A certification by the City Manager and the City's chief fiscal officer that each proposed expenditure is authorized by Section 118.170.
(b) The proposed expenditure plan shall be provided to the Citizens' Oversight Committee sufficiently in advance of budget adoption to permit review and a report to the City Council. The City Council retains exclusive authority to adopt the budget and appropriate funds within the voter - approved purposes.
(c) Any material midyear amendment or transfer affecting Measure S revenues shall be separately identified in the staff report or budget document presented to the City Council and shall state the applicable authorized Public Safety Purpose.

Sec. 3.18.190. Separate accounting; annual accountability report. (a) The City Manager shall maintain accounting records sufficient to separately identify Measure S revenues, attributable earnings, appropriations, expenditures, encumbrances, reimbursements, adjustments, reserves, and carryover balances.
(b) At least once each year, and no later than March 31 following the close of the fiscal year unless a later date is reasonably necessary to complete the independent audit, the City's chief fiscal officer shall file with the City Council and make publicly available a Measure S Public Safety Accountability Report containing at least:
(1) The amount of Measure S funds collected and expended; (2) The beginning and ending restricted fund balances and the amount carried forward; (3) A comparison of budgeted and actual expenditures;
(4) Actual expenditures organized by the Public Safety Purpose categories in Section

3.18.170;
(5) The status of each material program, project, capital improvement, reserve, or contract funded or authorized to be funded;
(6) The amount used for direct services, indirect or administrative support, capital projects, debt service, and reserves;
pg. 17

(7) The methodology used for material indirect or administrative allocations; (8) The amount encumbered but not yet expended;
(9) A reconciliation of revenues, expenditures, encumbrances, reimbursements, adjustments, and remaining balances;
(10) A summary of measurable public safety staffing, service, response, facility, equipment, project, or program outcomes, to the extent reasonably available; (11) The findings of the independent annual audit;
(12) The findings and recommendations of the Citizens' Oversight Committee; and (13) A certification by the City Manager and the City's chief fiscal officer stating whether all Measure S revenues expended during the fiscal year were used for authorized Public Safety Purposes.
(c) The annual report, supporting expenditure schedules, independent audit, and Citizens' Oversight Committee report shall be considered at a noticed public meeting of the City Council and posted on the City's website.

Sec. 3.18.200. Notice of unauthorized expenditures.

If the City Manager determines that Measure S revenues were expended for a purpose not authorized by Section 3.18.170, the City Manager shall promptly notify the City Council.

Sec. 3.18.210. Amendments and voter control.
(a) The City Council may amend this chapter without voter approval only to the extent the amendment is administrative, procedural, clarifying, or necessary to conform to state law or California Department of Tax and Fee Administration requirements, and only if the amendment does not increase the tax rate, extend the duration, broaden or change the Public Safety Purposes, weaken the requirement that proceeds be used only for those purposes, or materially reduce the accountability protections approved by the voters.
(b) Any amendment that increases the rate, extends the duration, adds or materially broadens a permitted purpose, authorizes proceeds to be used for a non -public -safety purpose, or otherwise requires voter approval under the California Constitution or applicable law shall become effective only upon the required voter approval.
(c) Automatic incorporation of amendments to state sales and use tax law under Section 3.18.140 shall not alter the tax rate, voter -approved purposes, duration, or accountability requirements. pg. 18

Section 4. Administrative Conforming Amendment.

Throughout Chapter 3.18, references to the "State Board of Equalization" or "state board of equalization" in connection with the administration or collection of the transactions and use tax shall be construed and, upon codification, replaced with references to the "California Department of Tax and Fee Administration" or "Department," as appropriate. This section does not alter references to historical titles or statutory language where a conforming replacement would be legally inaccurate.

Section 5. Provisions Remaining in Effect.

Except as expressly amended by this Ordinance, Ordinance No. 453 and Sections 3.18.030,

3.18.040, and 3.18.090 through 3.18.150 of the Yucaipa Municipal Code remain in full force and effect. The transactions tax rate and use tax rate remain one percent.

Section 6. Approval Requirement and Effective Date.

This Ordinance is a City Council -sponsored special tax measure. It shall be considered adopted only if approved by at least two-thirds of the qualified voters of the City voting on the measure at the November 3, 2026 election and shall take effect as provided by law, but the special -tax expenditure restrictions shall apply beginning on the Special Tax Operative Date stated in Section

3.18.060.

Section 7. No Rate Increase; Continuity; Preservation of Existing Tax.

This Ordinance amends and continues the existing Measure S tax and does not repeal and reimpose the tax, impose a second tax, or increase the tax rate. The voters intend the existing tax to remain continuously effective. If any provision implementing the special -tax conversion is finally held invalid, Ordinance No. 453 and Chapter 3.18, as they existed immediately before the effective date of this Ordinance, shall remain or be reinstated to the maximum extent legally permissible, unless the court determines that a different result is required.

Section 8. Appropriations Limit.

Pursuant to Article XIII B of the California Constitution and applicable law, the City's appropriations limit shall continue to be increased by the aggregate amount of proceeds received from the tax, as previously authorized by the voters in Ordinance No. 453, to the extent such adjustment remains necessary and legally available.

Section 9. California Environmental Quality Act.

The People find that adoption of this Ordinance is not a "project" under the California Environmental Quality Act because it concerns governmental fiscal and administrative activities and does not approve a specific physical project or commit the City to a course of action that may result in a direct or reasonably foreseeable indirect physical change in the environment. Even if considered a project, the action is exempt because it can be seen with certainty that the tax pg. 19

classification and accountability amendments will not themselves have a significant effect on the environment. Any future physical project funded by Measure S shall remain subject to environmental review otherwise required by law.

Section 10. Legal Defense.

The People desire that this Ordinance, if approved and thereafter challenged, be defended by the City Attorney. The City Attorney is authorized and directed to defend the Ordinance, appeal an adverse judgment, and take other action that, in the City Attorney's reasonable legal judgment, is necessary to defend the validity and implementation of the Ordinance.

Section 11. Severability.

If any section, subsection, sentence, clause, phrase, or application of this Ordinance is held invalid or unconstitutional, the remaining provisions and applications shall remain in full force and effect to the maximum extent permitted by law. The People declare that they would have adopted each remaining provision irrespective of the invalidity of any other provision, subject to the preservation -of -existing -tax provisions in Section 7.

Section 12. Liberal Construction.

This Ordinance shall be liberally construed to effectuate the voters' intent to continue the existing one -percent Measure S tax, legally restrict future proceeds to the stated Public Safety Purposes, and provide meaningful fiscal accountability.

Section 13. Municipal Affair.

The People declare that the purposes and administration of this Ordinance concern municipal affairs and that this Ordinance is intended to coexist with other lawful state, county, district, or City taxes.

Section 14. Certification and Codification.

The City Clerk shall certify the election results and adoption of this Ordinance, cause the Ordinance to be published or posted as required by law, transmit certified copies to the California Department of Tax and Fee Administration and other appropriate agencies, and cause the amended provisions to be codified. The City Clerk and City Attorney may correct typographical, clerical, numbering, and cross-reference errors in the codified text, provided that no correction changes the substantive meaning of the voter -approved measure.
pg. 20

APPROVED FOR SUBMISSION TO THE VOTERS by the City Council of the City of Yucaipa this day of , 2026.

ATTEST:

Ana V. Sauseda, MMC
Director of General Services/City Clerk
Chris Venable, Mayor
APPROVED AS TO FORM:

Steven Graham Pacifico
City Attorney
pg. 21