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HomeMy WebLinkAbout2026.05.19 Agenda Packet - Regular Meeting________________________________________________________________________________________________________________________ City of Diamond Bar City Council City of Diamond Bar City Council Agenda Steve Tye, Mayor Ruth M. Low, Mayor Pro Tem Andrew Chou, Council Member Stan Liu, Council Member Chia Yu Teng, Council Member City Manager Dan Fox ● City Attorney Omar Sandoval ● City Clerk Kristina Santana Meeting Date: Tuesday, May 19, 2026 Study Session 5:00 p.m., Room CC-8 Regular Meeting 6:30 p.m., Main Auditorium South Coast Air Quality Management District 21865 Copley Drive, Diamond Bar, CA 91765 WELCOME TO A MEETING OF THE DIAMOND BAR CITY COUNCIL Meetings are open to the public, and you are invited to attend and participate. Agendas for regular City Council meetings are available 72 hours prior to the meeting and are posted in the City’s regular posting locations, on DBTV and on the City’s website. The City Council may take action on any item listed on the agenda. HOW TO ACCESS THE MEETING REMOTELY Television: Spectrum Cable Channel 3 and Frontier FiOS television Channel 47 Internet: City’s YouTube Channel (diamondbarca.gov/youtube) Listen-Only: Call +1 (631) 992-3221, Access Code: 872-330-111 Participate: Join Go To Webinar (https://attendee.gotowebinar.com/register/8670145520112900448) RESOURCES Copies of agendas and agenda packets are on file and available for public inspection at the City Clerk's Office at 21810 Copley Drive, Diamond Bar, CA 91765 or online at www.diamondbarca.gov/agendas. For more information about agendas or rules of the City Council, please email the City Clerk's office (cityclerk@diamondbarca.gov) or call 909-839-7010. AMERICANS WITH DISABILITY ACT ACCOMMODATION In compliance with the Americans with Disabilities Act, if you need special assistance, a disability- related modification or accommodation, agenda materials in an alternative format, or auxiliary aids to participate in this meeting, please email the City Clerk's office (cityclerk@diamondbarca.gov) or call 909-839-7010 as soon as possible. Providing at least 72 hours’ notice will help ensure that reasonable arrangements can be made. PUBLIC INPUT The public may provide public comment by attending the meeting in person, by sending an email, or by logging into the teleconference. Please email public comments to the City Clerk Page 1 of 346 Diamond Bar City Council Agenda May 19, 2026 ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ City of Diamond Bar City Council (cityclerk@diamondbarca.gov) by 4:00 p.m. on the day of the meeting and indicate in the Subject Line “FOR PUBLIC COMMENT.” Written comments will be distributed to the City Council Members, noted for the record at the meeting, and posted on the City’s official agenda webpage: www.diamondbarca.gov/agendas. Please note that the meeting will proceed at the South Coast Air Quality Management District/Main Auditorium should comments by teleconferencing become infeasible due to an internet or power outage, or due to technical problems outside the City's control. If you wish to make certain that your comments are heard, please attend the meeting in person or send an email by 4:00 p.m. on the day of the meeting/hearing. Speakers are limited to five (5) minutes per agenda item, unless the Mayor determines otherwise. The Mayor may adjust this time limit depending on the number of people wishing to speak, the complexity of the matter, the length of the agenda, the hour and any other relevant consideration. Speakers may address the Council only once on an agenda item, except during public hearings, when the applicant/appellant may be afforded a rebuttal. Any material to be submitted to the City Council at the meeting should be submitted through the City Clerk. Public comments must be directed to the City Council. A person who disrupts the orderly conduct of the meeting after being warned by the Mayor or the Mayor’s designee that their behavior is disrupting the meeting may result in the person being removed from the meeting. LIVE MEETING NOTICE This meeting is being video recorded and by participating you are giving your permission to be televised. This meeting will be rebroadcast every Saturday and Sunday at 9:00 a.m. and alternate Tuesdays at 8:00 p.m. Page 2 of 346 Diamond Bar City Council Agenda May 19, 2026 ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ City of Diamond Bar City Council 1. STUDY SESSION: 5:00 p.m., CC-8 Conference Room 1.1 Draft FY 2026/27 Operating Budget & Ten-Year General Fund Forecast. . 2. CALL TO ORDER: 6:30 p.m., Main Auditorium PLEDGE OF ALLEGIANCE: Eunice Kim INVOCATION: Jim Wes, Director of Shepherding Ministries, Evangelical Free Church ROLL CALL: Council Members Chou, Liu, Teng, Mayor Pro Tem Low, Mayor Tye APPROVAL OF AGENDA: Mayor Tye 3. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 3.1 Mental Health Awareness Month Proclamation. 3.2 Certificates of Recognition to Diamond Bar High School Colorguard Varsity Team. 4. CITY MANAGER REPORTS AND RECOMMENDATIONS: 5. PUBLIC COMMENTS: “Public Comments” is the time reserved on each regular meeting agenda to provide an opportunity for members of the public to directly address the Council on Consent Calendar items or other matters of interest not on the agenda that are within the subject matter jurisdiction of the Council. Although the City Council values your comments, pursuant to the Brown Act, members of the City Council or Staff may briefly respond to public comments if necessary, but no extended discussion and no action on such matters may take place. There is a five-minute maximum time limit when addressing the City Council. 6. SCHEDULE OF FUTURE EVENTS: 6.1 IVHS Mobile Clinic - May 22, 2026, 5:00 - 6:00 p.m., Pantera Park, 738 Pantera Dr. 6.2 Memorial Day Holiday - May 25, 2026, 6:30 p.m., City Offices Closed. 6.3 Planning Commission Meeting - May 26, 2026, 6:30 p.m., City Hall Windmill Room, 21810 Copley Dr. 6.4 Free Catalytic Converter Etching – May 27, 2026, 9:00 – 11:00 a.m., Calvary Chapel Golden Springs, 22324 Golden Springs Dr. 6.5 Parks and Recreation Commission Meeting - May 28, 2026, 6:30 p.m., City Hall Windmill Room, 21810 Copley Dr. 6.6 City Council Meeting - June 2, 2026, 2026, 6:30 p.m., South Coast Air Quality Management District - Auditorium, 21865 Copley Dr. . Page 3 of 346 Diamond Bar City Council Agenda May 19, 2026 ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ City of Diamond Bar City Council 7. CONSENT CALENDAR: All items listed on the Consent Calendar are considered by the City Council to be routine and will be acted on by a single motion unless a City Council Member or member of the public request otherwise, in which case, the item will be removed for separate consideration. 7.1 City Council Minutes of the May 5, 2026 Regular Meeting. Recommended Action: Approve the May 5, 2026 Regular City Council Meeting Minutes. 7.2 Ratification of Check Register Dated April 22, 2026 through May 5, 2026 totaling $1,026,586.40. Recommended Action: Ratify the Check Register. 7.3 Third Amendment to Consultant Services Agreement with Torti Gallas + Partners. Recommended Action: A. Appropriate $3,620 from the General Plan Update Fund 103 to cover the cost to prepare a response to comments regarding the adequacy of the Final Supplemental Environmental Impact Report; and B. Approve, and authorize the City Manager to sign, the Third Amendment to the Consultant Services Agreement with Torti Gallas + Partners to cover unanticipated expenses pertaining to the adoption of the Town Center Specific Plan. 7.4 Declaration to Levy Assessments for Landscape Assessment District Nos. 38, 39-2022, and 41-2021 for Fiscal Year 2026/27. Recommended Action: A. Adopt Resolution No. 2026-11 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 38 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting; B. Adopt Resolution No. 2026-12 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 39-2022 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting; and, C. Adopt Resolution No. 2026-13 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 41-2021 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting. 8. PUBLIC HEARINGS: 8.1 City Vacancies, Recruitment and Retention Efforts. Recommended Action: Conduct a Public Hearing on City Vacancies, and Recruitment and Retention Efforts. Page 4 of 346 Diamond Bar City Council Agenda May 19, 2026 ________________________________________________________________________________________________________________________ ________________________________________________________________________________________________________________________ City of Diamond Bar City Council 9. COUNCIL CONSIDERATION: None. 10. COUNCIL SUB-COMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS: 11. ADJOURNMENT: CERTIFICATION I, Kristina Santana, MMC, City Clerk, City of Diamond Bar, hereby certify, under penalty of perjury under the laws of the State of California that the foregoing notice was posted pursuant to Government Code Section 54950 Et. Seq., not less than 72 hours prior to the meeting, at the following locations: Diamond Bar City Hall Kiosk, Diamond Bar City Hall Bulletin Board, City website: www.diamondbarca.gov, and Diamond Bar Library. Kristina Santana, MMC City Clerk Date Posted: May 14, 2026 Page 5 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 CITY COUNCIL STUDY SESSION REPORT TO: Honorable Mayor and Members of the City Council VIA: Daniel Fox, City Manager FROM: Jason Jacobsen, Finance Director, Finance TITLE: Draft FY 2026/27 Operating Budget & Ten-Year General Fund Forecast. . BACKGROUND: Each year, the City prepares an annual Operating Budget and Capital Improvement Program (CIP) for City Council consideration that implements the Council’s priorities and Strategic Plan Goals, and provides the financial resources to deliver services to the community. The preparation of the annual budget is a significant and important undertaking that takes place over the course of more than five months. The purpose of this budget study session is to provide the opportunity for the City Council to review the Draft FY 2026/27 Operating Budget. Additionally, staff is presenting the City Council with the Draft Ten-Year General Fund Forecast for review. The Draft FY 2026/27 Operating Budget presents a balanced budget for the upcoming fiscal year. This outcome was made possible only after substantial reductions to the City’s ongoing programs and service level that followed thorough review and deliberation by the city council. Given the City’s structural deficit – where ongoing revenues are not able to keep up with the rate of inflation and cost increases – the updated Ten-Year General Fund Forecast remains largely unchanged under a status quo scenario. Unless new revenues materialize or further service level reductions are made, the City can expect to see significant deficits starting next FY 2027/28 and beyond, with the complete utilization of the General Fund’s unassigned fund balance by year ten. The Draft Ten-Year General Fund Forecast will be included in the City’s official budget document for consideration and adoption at the June 2, 2026 Council Meeting. Below is the schedule for the review and adoption of the FY 2026/27 City Operating and CIP Budget: • Community Budget Workshop #1: Review of Proposed FY 2026/27 Budget and Service Level Adjustments – Held March 3, 2026 • Community Budget Workshop #2: Review of Proposed FY 2026/27 Capital Improvement Program (CIP), Traffic Mitigation Fund Project Priorities, and Vehicle Lease Program – Held April 14, 2026 • Council Study Session #1 to review the Draft FY 2026/27 CIP and Draft Five-Year CIP – Held May 5, 2026 • Council Study Session #2 to review the Draft FY 2026/27 Operating Budget and Ten-Year General Fund Forecast – Scheduled for May 19, 2026 Page 6 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 • Adoption of the Proposed FY 2026/27 Operating Budget, Ten-Year General Fund Forecast, FY 2026/27 CIP, and Five Year CIP – Scheduled for June 2, 2026. Based on direction received, appropriate revisions and refinements will be made and presented to the City Council for adoption at the June 2, 2026 City Council meeting wherein staff will provide a summary of any changes to the draft budget that were incorporated into the final Proposed FY 2026/27 Operating Budget. FISCAL IMPACT: Fund Type Revenues Expenses Addition/(Use) of Fund Balance General Fund $ 34,138,610 $ 34,165,489 $ (26,879) Special Funds 589,000 327,000 262,000 Special Revenue Funds 12,727,145 13,558,232 (831,087) Capital Improvement Fund - - - Debt Service Fund 726,000 726,000 - Internal Service Funds 1,117,107 1,165,307 (48,200) Fiduciary Fund 114,600 - 114,600 Total $ 49,412,462 $ 49,942,028 $ (529,566) See Attachments 1 & 4 for additional information. ANALYSIS: The Proposed FY 2026/27 Operating Budget reflects a continued focus on long-term fiscal sustainability, responsible stewardship of public resources, and the preservation of essential City programs and services. Compared to the prior year, the City has made meaningful progress toward addressing its structural deficit through a combination of revenue enhancements and expenditure reductions. Most notably, the Proposed FY 2026/27 Budget includes updated development-related user fees and reductions to selected programs and services, resulting in a balanced General Fund budget for the upcoming fiscal year. General Fund revenues are projected to increase by 5.6% compared to the prior year. This increase is primarily attributable to updated user fees for development-related services, which are projected to increase by 76.8%, bringing total development fee revenues to approximately $4.1 million. These updated fees better align cost recovery with the cost of providing services and reduce the extent to which General Fund resources subsidize development activity. In addition to revenue enhancements, the Proposed FY 2026/27 Budget includes approximately $987 thousand in reductions to programs and services. These reductions were necessary to balance the budget while preserving core municipal services and maintaining the City’s commitment to fiscal discipline. Although difficult, these actions reflect a measured and proactive approach to addressing the City’s ongoing fiscal challenges. Page 7 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 As a result of these efforts, the Proposed FY 2026/27 General Fund Budget is balanced and proposes the one- time use of fund balance in the amount of $27 thousand for the Hazard Mitigation Plan Update. Though balanced, the City’s long-term financial outlook gor the General Fund remains constrained due to a recurring structural deficit. A structural deficit occurs when a municipality’s ongoing revenues are insufficient to fund ongoing expenditures under normal operating conditions. Unlike one-time or cyclical shortfalls, a structural deficit requires deliberate and ongoing policy actions, such as revenue enhancements, expenditure reductions, service-level adjustments, or other reforms, to eliminate the underlying gap. While the FY 2026/27 General Fund Budget achieves balance, the City’s long-term forecast anticipates the structural deficit will continue in future years. Based on current projections, the General Fund is expected to face a shortfall of approximately $780 thousand in FY 2027/28. This projected deficit reflects the continuing pressure of rising contract costs, labor, materials, utilities, insurance, maintenance needs, and other operating expenses that are growing faster than recurring revenues. Without continued corrective action, future budget shortfalls could require the City to draw down Unassigned General Fund reserves, further defer capital maintenance obligations, reduce service levels, or pursue additional revenue strategies. Accordingly, while the Proposed FY 2026/27 Budget represents an important step toward fiscal stability, continued discipline will be necessary to maintain structural balance in future years. Despite these fiscal challenges, the proposed budget continues to prioritize implementation of the City Council’s high-priority objectives and remains guided by the three overarching goals in the adopted FY 2024– 2027 Strategic Plan: • Responsible Stewardship of Public Resources • Open, Engaged and Responsive Government • Safe, Sustainable and Healthy Community FY 2026/27 Proposed General Fund Budget Overview The Proposed Operating Budget for the General Fund comprises estimated resources and expenditures that are balanced for FY 2026/27. This balance is achieved through a combination of increased recurring revenues, primarily from updated development-related user fees, and reductions to programs and services totaling approximately $987 thousand. In addition, there is a one-time use of fund balance proposed for the Hazard Mitigation Plan Update: A multi-year General Fund revenue and expenditure schedule is included along with this report (see Attachment 3). General Fund Revenues: $34.1 Million Proposed General Fund revenues for FY 2026/27 have increased $1.8 million, or 5.6%, when compared to the prior FY 2025/26 Adopted Budget. The following are noteworthy General Fund revenue items incorporated into Page 8 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 the proposed FY 2026/27 Operating Budget. The table below compares the prior year adopted budget to the Proposed FY 2026/27 Budget, and the percent of change for next fiscal year. Adopted Proposed Property Taxes FY 25/26 FY 2026/27 $6,971,047 $7,013,000 0.6% The estimated change in the City's net taxable value of secured real property for FY 2026/27 is expected to increase 3.6% ($155 thousand). This increase is offset by decreases for unsecured and supplemental property tax rolls which will result in a net year-over-year change to all Property Tax revenue categories of 0.6%. The City uses HdL as a consultant to help monitor, audit and project this major revenue source. Adopted Proposed Property Tax in Lieu of VLF (Vehicle License Fees) FY 25/26 FY 2026/27 $8,107,449 $8,399,320 This major revenue source grows at the same general pace as the City's net taxable value (3.6%). The City’s consultant, HdL, also assists with the projection of this significant revenue item. 3.6% Adopted Proposed Sales Taxes FY 25/26 FY 2026/27 $6,413,700 $6,315,937 -1.5% Sales tax revenue is projected to decline by $98 thousand compared to the prior year. This downward revision is primarily driven by updated assumptions regarding statewide and national economic growth. The City is seeing continued declines across key sectors, including Business & Industry ($88 thousand), Fuel & Service Stations ($74 thousand), Food & Drugs ($74 thousand), and Building & Construction ($7 thousand). These decreases were offset by increases to General Consumer Goods ($84 thousand), Restaurants ($38 thousand), and online sales distributed by the County Pool ($30,000). For the fourth quarter of 2025 (October–December), Diamond Bar experienced a 5.9% decline in sales tax revenue compared to the same quarter in 2024, ranking 78th out of 88 cities in Los Angeles County. This trend appears to reflect Diamond Bar’s unique retail composition, as at least one neighboring LA County city experienced a 3.9% increase Page 9 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 during the same period. Adopted Proposed Transient Occupancy Taxes FY 25/26 FY 2026/27 $1,449,000 $1,539,000 Transient Occupancy Tax is projected to increase by $90 thousand based on current trends. 6.2% Adopted Proposed Use of Money & Property FY 25/26 FY 2026/27 $1,249,000 $920,260 Investment Income – General Fund investment income is anticipated to decline $329 thousand as the City's portfolio reflects changes to the interest rate environment and Federal Open Market Committee policy. -26.3% Rental Revenue – Revenue from rentals at the Diamond Bar Center is anticipated to increase by $52 thousand. $1,102,500 $1,163,000 Field and Park Facility Rentals, and related Facility Security Charges, are anticipated to decrease by $1,500. 5.5% Cell tower lease revenue is projected to increase $10 thousand due to CPI adjustments for current leases. Adopted Proposed Current Service Charges FY 25/26 FY 2026/27 $2,315,210 $4,092,688 Development Fees – Revenue from Building, Planning and Engineering activity is estimated to increase $1.8 million due to the recent comprehensive update to the City's User Fee Schedule which aimed to recoup the full cost of providing these services. 76.8% $618,425 $622,675 Recreation Programs – Program revenue is projected to increase $4 thousand mainly due to Contract Classes and Athletic Programs, offset by a reduction to Youth Programs. 0.7% Page 10 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 Adopted Proposed Gas Tax – Transfer In FY 25/26 FY 2026/27 $1,435,000 $1,435,000 0.0% The Transfer-In from the Gas Tax Fund reimburses the General Fund for eligible road maintenance activities each year. However, as maintenance costs continue to rise, available Gas Tax revenue remains insufficient to fully cover these expenses. General Fund Expenditure Budget: $34.2 Million Proposed recurring General Fund expenditures for FY 2026/27 have increased $1.8 million, or 5.6% when compared to the prior FY 2025/26 Adopted Budget. In addition, staff is proposing a one-time expense in the amount of $56 thousand for the City’s Hazard Mitigation Plan Update, bringing total proposed expenditures to $34.2 million. In response to declining revenues, staff conducted a thorough review of all expense accounts and took deliberate steps to reduce or eliminate expenses in order to present a balanced budget for the upcoming year. As a result, $987 thousand has been reduced from the General Fund budget. This is in addition to $250 thousand in on-going reductions to the FY 2025/26 Adopted Budget, mainly affecting vehicle replacements and the parking lot slurry seal program at city parks. Key reductions to the Draft FY 2026/27 General Fund Budget, as presented during the Community Budget Workshop #1 (held March 3, 2026), are presented in the table below: PROPOSED FY 2026/27 GENERAL FUND PROGRAM & SERVICE LEVEL REDUCTIONS Reductions Public Safety Programs Reductions $ (198,500) Automated License Plate Readers (Flock Safety) (170,000) As Needed Suppression Patrols (25,000) Public Safety Outreach (2,500) Report for Reward Program (1,000) Community Beautification Reductions $ (345,700) Homeless Encampment Remediation (25,000) Lighting & Landscape Dist. 38 Subsidy Median Maint. (161,700) Parks Landscape Watering (15% reduction) (50,000) Right-of-Way Cleanup Contract (44,000) Sunset Crossing Fence Repair (15,000) Tree Maint : Reduce service requests/plantings; keep emergency funds (50,000) Page 11 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 Economic Development Reductions $ (38,000) Community Organization Support (10,000) Eliminate Restaurant Week Banners (keep virtual program) (8,000) Various Economic Development Program Reductions (20,000) Community Event Reductions $ (163,047) Eliminate 2026 Snowfest (96,933) Reduce Concerts in Park, Eliminate Movies in Park (66,114) Road Maintenance Reductions $ (132,000) Sidewalk Repairs (use alternative methods) (100,000) Road Maint. Supplies (20,000) Road Maint Tools (5,000) Street Sweeping (7,000) Other Reductions $ (109,700) Records Mgmt. Services (15,000) Misc. Professional Services (20,000) Indoor plant service (City Hall) (7,500) Community Satisfaction Survey (35,000) Misc. Public Works Contracts (32,200) Total Reductions $ (986,947) Notwithstanding the aforementioned reductions, the following highlighted items are presented for City Council consideration: • Public Safety Law Enforcement – FY 2026/27 County of Los Angeles Sheriff’s Department (LASD) expenditures are expected to be approximately $9.1 million, representing the single largest line item and approximately 26.6% of proposed General Fund expenditures (down from 27.4%). LASD proposed expenditures reflect a net increase of $265 thousand year-over-year, inclusive of a contract rate increase of 2.3% (down from 4.37% in the prior year) plus an increased Liability Trust Fund (LTF) surcharge of 14.5% (up from 13% in the prior year) on each contracted position. The General Fund includes a transfer-in from the Law Enforcement Reserve Fund in the amount of $25,000 for as-needed special assignments and suppression patrols which have proven to be a cost-effective approach to reducing crime and responding to specific public safety issues throughout the year. Crossing Guard Services – The City provides Crossing Guard Services at seven (7) elementary schools and two (2) middle schools with a total of 16 guards. The total budget for crossing guard services in FY 2026/27 is $289,800. Animal Control – Since incorporation, the City has contracted with the Inland Valley Humane Society (IVHS) for animal control and licensing services. The current agreement, last amended in 2021, follows a gross contract model in which the City pays the full cost of services, offset by any licensing revenue collected by IVHS. Since last year, three large member cities have withdrawn from IVHS (Montclair, Chino, Ontario), with the City of Baldwin Park recently being added into IVHS’ service territory effective July 1, 2026. IVHS also Page 12 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 expanded with the acquisition of the San Gabriel Valley Humane Society, which includes the cities of San Gabriel and Temple City. While FY 2025/26 experienced a one-time cost increase of 15%, the FY 2026/27 proposed increase for IVHS Animal Control services is 3%. The gross cost for this contracted service in FY 2026/27 is anticipated to be $667,300. After accounting for estimated licensing and service fee revenues of $80,000, the proposed budget of $587,300 reflects an increase of $15,500 compared to the previous fiscal year. • Human Resources – Each year, the City Council adopts the Compensation and Benefits Plan for the upcoming fiscal year which includes cost of living adjustments, and employee positions with associated salary ranges and benefits. To remain an “Employer of Choice” in the region the City must continue to reinvest in its personnel (i.e. human capital) in a manner similar to its capital projects and infrastructure. To identify and prioritize investment in organizational staffing and organizational structure, and to maintain, enhance and expand City programs, the City has developed a focused effort, led by members of the City Manager’s executive team, referred to as the Human Capital Investment Program (HCIP). This year, staff is planning on implementing flexible staffing solutions to replace current vacant part-time positions in the Parks and Recreation and Public Works Departments. These position swaps will maintain the City’s commitment to investing in optimizing service delivery while providing minimal fiscal impact in the upcoming year. Having an agile workforce able to respond to the changing needs of the community and carry out City priorities is essential. There are sufficient budgeted resources in the proposed departmental budgets; and the positions, as well as salary ranges, already exist in the City’s classification and compensation plan. Therefore, the following position swaps are requested for FY 2026/27 for a total year-one savings of $2,040. *Assumed 3.0% COLA in years 2-5. Cost-of-Living Adjustment – The City’s Personnel Rules and Regulations specify that the City Manager may request that the City Council authorize a Cost-of-Living Adjustment (COLA) for employees based on the March-to-March rates of the federal Consumer Price Index (CPI) for Wage Earners and Clerical Workers in Los Angeles/Orange Counties. This year’s CPI calculation in March 2026 was 3.6%. In order to avoid real wage losses and remain an “Employer of Choice” in the surrounding Los Angeles, Orange, Riverside and San Bernardino counties, it is recommended that the salary schedules for all benefitted classifications of employment including all executive positions, be increased by 3.6% effective with the pay period beginning June 27, 2026. A $100 per month increase to the Benefit Allotment is also recommended for all benefitted classifications of employment including the executive positions and members of the City Council to help keep up with corresponding health premium rate increases. This annual COLA and Benefit Allotment adjustment is a routine maintenance item to preserve the City’s competitive compensation structure. The total estimated cost is approximately $432 thousand, of which $378 thousand is funded by the General Fund. • Parks & Recreation The proposed Parks & Recreation department budget was developed based on continued community interest in valuable programs, services, and events. With City Council support, the department made several strategic adjustments while considering the financial challenges facing the City. These adjustments include the cancelation of the Winter Snow Fest Event, Movies in the Parks, and reductions to the Concerts in the Park series. Several programs and events offered this year to support an active and healthy community include summer youth day camp, senior activities & dances, field allocations for sports organizations, contract classes, picnic reservations, and community special events. This fiscal year will also include the Wedding and Event Expo at the DBC, which serves to promote the facility and is a mostly a cost-neutral Page 13 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 event. Traditional special events, including the Windmill Lighting, Veterans Recognition Ceremony, and the Halloween Party, will continue to bring the community together. Expenses for recreation programs ($2.75 million, a 0.6% decrease) and Diamond Bar Center operations ($1.81 million, a 2.8% increase) have been adjusted commensurate with anticipated activities and service level reductions for a combined budget of $4.56 million, a total increase of $32 thousand from the prior year. Total departmental revenue, including Diamond Bar Center rentals ($750 thousand, an increase of $50 thousand from the prior year) and other recreation program revenue ($622 thousand, an increase of $4 thousand from the prior year amount) is budgeted at $1.37 million for FY 2026/27. Special Revenue Fund Highlights • Integrated Waste Management Fund (250) – The proposed budget of $1.1 million includes a proposed line item for $180 thousand for a routine Residential and Commercial Waste Hauler Compliance Audit, a reimbursable cost paid for by the waste haulers. In addition, $21 thousand is proposed for expanded student waste reduction and recycling field trips. Additionally, the City has maintained a student environmental education program for 3rd-6th graders with Discovery Cube for several years. This program, budgeted at $40 thousand, has been well-received by schools as it provides a fun and interactive way to educate students about recycling, organic waste, and sustainable purchasing choices. Additionally, it supports the goals of SB 1383, particularly through Discovery Cube’s organics lab, which includes composting and vermicomposting activities. • Lighting & Landscape Assessment Districts (LLADs) – Much work has been done in recent years to address operating deficits and reduce General Fund subsidies to the LLADs, particularly Districts 39-2022 and 41-2021. Total General Fund contributions to all three districts for FY 2026/27 is budgeted at $149 thousand, a decrease of $126 thousand from the prior year. Budgeted resources and expenditures for all three districts for FY 2026/27 are shown below. It should be noted that some districts are utilizing fund balance for proposed operations and that the General Fund subsidy to LLAD No. 38 was reduced as part of the budget balancing strategy for FY 2026/27: • Tres Hermanos Fund (248) – The proposed budget of $120 thousand (an increase of $40 thousand) is for the City’s share of maintenance costs provided to the Tres Hermanos Conservation Authority. • Traffic Mitigation Fund (246) – The City receives Traffic Mitigation Funds to address transportation system Page 14 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 impacts associated with development. Staff is recommending the establishment of a prioritized list of street improvement projects to ensure these funds are deployed strategically and transparently.The proposed budget of $350,000 will utilize interest earned on the funds to aid the City’s effort to: o Align traffic mitigation fund expenditures with nexus and eligibility requirements o Prioritize traffic mitigation projects that best improve traffic flow and safety o Provide a clear and defensible framework for future project selection. • AB 2766 Air Quality Management District Fund (251) – AB 2766 Air Quality Management District Fund (251) – The proposed budget of $74 thousand represents no change from the prior year. A total of $35,000 is being shifted from the neighborhood traffic management program (NTMP) to fund the lease of (4) zero-emission fleet vehicles, leaving sufficient funds in the amount of $39,000 to accommodate citizen requests for traffic improvements. • Beverage Container Recycling Grant Fund (254) – The proposed $14 thousand budget includes new recycling receptacles for business and school programs. • Hazard Mitigation Fund (256) – The proposed budget of $221 thousand is requested to updated the City’s Hazard Mitigation Plan in order to remain in compliance with FEMA and State planning requirements. City staff submitted a grant application in 2025 and are awaiting FEMA’s determination. There is a corresponding request of $56,000 from the General Fund to meet the granting agency’s 25% cost-share requirement. • Park Development Fund (262) – The proposed budget of $250 thousand is for the construction of the Sycamore Canyon Park Lower Bridge Replacement project as discussed in the FY 2026/27 CIP. Internal Service Funds Highlights • Debt Service Fund (401) – In May 2021, the City refunded the outstanding Lease Revenue Bonds associated with the original acquisition and construction of the Diamond Bar Center. This achieved a gross savings of $1.736 million and present value savings of $1.63 million (or 20.85%) for the General Fund, which translates to approximately $144,700 in average annual debt service savings for the remainder of the term through June 1, 2033 at an effective interest rate of 1.15%. The 2021 Bonds were rated by S&P as AA+ (top rating for this type of bond) which is a testament to the Council’s conservative and prudent fiscal policies. The total debt service (principal and interest) for FY 2026/27 will be $722 thousand, and is funded by a transfer to the Debt Service Fund from the General Fund. • Self-Insurance Fund (501) – CA Joint Powers Insurance Authority (CJPIA) covers the City’s Property, Pollution Liability, Crime, General Liability and Workers’ Compensation needs. The combined premiums for Property, Pollution, Crime and General Liability are anticipated to be approximately $820 thousand, which reflects a year-over-year increase of $169 thousand (26%). This amount is up from the prior year increase of $117 thousand which, at the time, represented a year-over-year increase of 22%. All funding for the Self-Insurance Fund is provided by a transfer-in from the General Fund. • Vehicle Maintenance & Replacement Fund (502) – The proposed budget of $137 thousand is recommended for necessary operations and maintenance of the citywide fleet, as well as the lease of two new zero-emission electric vehicles funded by a transfer-in from the AB 2766 Fund (fund 251) in the amount of $35 thousand. The remaining budget of $102 thousand is requested to cover fuel and Page 15 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 maintenance costs for the City’s current fleet, and is provided by a transfer-in from the General Fund. • Computer Equipment Maint. & Replacement Fund (503) – The proposed budget of $208 thousand is recommended for necessary information systems, hardware upgrades, and replacements, such as: • Additional mobile touch screens for ELM project ($5 thousand) • (2) Multi-function Copier Replacements ($25 thousand) • (2) Firewalls ($15 thousand) • (2) Timer Server Replacements ($18 thousand) • Additional Tyler support for post go-live reporting ($45 thousand) Plus items carried over from the prior year: • Phase 2 ELM System Integration with Laserfische and Financial System ($80 thousand) • New Touch-Screens for Employee Time Keeping ($20 thousand) • Building Facility & Replacement Fund (504) – Proposed revenues include a transfer-in from the General Fund in the amount of $100 thousand, per the City’s adopted fund balance policy. There are no expenses proposed for 2026/27. Fiduciary Fund • OPEB Trust Fund (601) – The proposed budget of $115 thousand consists only of revenue via a transfer-in from the General Fund in the amount of $88,000 and investment earnings in the amount of $26,600 designated to fund the City’s Other Post-Employment Benefits (OPEB) Trust, an investment vehicle managed by CalPERS for the purpose of reducing the City’s long-term OPEB liabilities (e.g. retiree medical costs). This amount is unchanged from the prior fiscal year. There are no expenses budgeted in this fund. Changes to the Draft FY 2026/27 Capital Improvement Program On May 5, 2026, the City Council held a Study Session to review the recommended Draft FY 2026/27 Capital Improvement Program (CIP). Following that discussion, the updated annual allocation for the City’s Community Development Block Grant was received and incorporated into the Area 7 ADA Curb Ramp project: Street Improvements: • Original CDBG Budget for Area 7 ADA Curb Ramps: $185,894 • Revised CDBG Budget for Area 7 ADA Curb Ramps: $189,734 Below is a summary of the revised Draft FY 2026/27 Capital Improvement Program: A summary of all funds, including the recurring resources and expenses, one-time appropriations, and Capital Page 16 of 346 Agenda Item #: 1.1 Meeting Date: May 19, 2026 Improvement Programs budgets for all funds, is included in Attachment 4. Conclusion The Draft FY 2026/27 Operating Budget and Capital Improvement Program reflects a disciplined approach to addressing the City’s ongoing fiscal challenges. Through updated user fees, increased General Fund revenues, and approximately $987 thousand in program and service reductions, the proposed budget achieves balance while continuing to fund essential City operations and priority capital needs. While this represents meaningful progress, the City’s long-term forecast projects a renewed General Fund shortfall of approximately $780 thousand in FY 2027/28. As a result, continued fiscal discipline and efforts to align ongoing revenues with ongoing expenditures will remain necessary. Staff will continue working on strategies to strengthen long-term fiscal sustainability, including opportunities to enhance revenues, control costs, and evaluate service delivery priorities. Should the City Council wish to modify any part of the Draft FY 2026/27 Operating Budget, staff will incorporate Council direction and revisions for final adoption at the June 2, 2026 City Council Meeting. RECOMMENDATION: That the City Council: 1. Review the Draft FY 2026/27 Operating Budget (see Attachments 1,3, & 4); 2. Review the Draft Ten-Year General Fund Forecast (see Attachment 2); and 3. Provide direction to staff regarding any changes to the proposed budget. ATTACHMENTS: 1. Attachment 1 - Draft FY 26-27 Proposed Budget Book 2. Attachment 2 - 2026-27 10-Year General Fund Forecast 3. Attachment 3 - Draft General Fund Rev & Exp Schedule - Proposed FY 2026-27 4. Attachment 4 - Sources & Uses FY 2026-27 Annual Budget Page 17 of 346 ANNUAL BUDGET Fiscal Year 2027 City of Diamond Bar Fiscal Year 2027 909-839-7000 21810 Copley Drive, Diamond Bar, CA 91765 www.diamondbarca.govEdison Rodriguez - Bee the Sunshine Raymond Wong - Heart of the HillsideDoris Yiang - Spring’s HereJuly 1, 2026-June 30, 2027 2025 Through My Lens Photo Contest Winners DRAFTPage 18 of 346 DRAFTPage 19 of 346 CITY LEADERSHIP Mayor Steve Tye Mayor Pro Tem Ruth Low Council Member Chia Yu Teng Council Member Andrew Chou Council Member Stan Liu City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 20 of 346 ORGANIZATIONAL STRUCTURE City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 21 of 346 BUDGET AWARDS City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov Government Finance Officers Association California Society of Municipal Finance Officers The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to the City of Diamond Bar, California, for its Annual Budget for the fiscal year beginning July 1, 2025. In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as a financial plan, as an operations guide, and as a communications device. This award is the highest form of recognition in governmental budgeting and reflects the City of Diamond Bar's commitment to and achievement in quality governmental budgeting. This award is valid for a period of one year only. We believe our current budget continues to conform to the program requirements, and we are submitting it to GFOA to determine its eligibility for another award. The California Society of Municipal Finance Officers (CSMFO), presented its Operating Budget Excellence Award to the City of Diamond Bar, California for its Fiscal Year 2025-2026 Budget. The City of Diamond Bar is confident that the Fiscal Year 2026-2027 Budget will continue to conform to award requirements.DRAFTPage 22 of 346 DRAFTPage 23 of 346 DIAMOND BAR AT A GLANCE City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 24 of 346 DIAMOND BAR HISTORY City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 25 of 346 DRAFTPage 26 of 346 DRAFTPage 27 of 346 DRAFTPage 28 of 346 DRAFTPage 29 of 346 DRAFTPage 30 of 346 DRAFTPage 31 of 346 DRAFTPage 32 of 346 DRAFTPage 33 of 346 DRAFTPage 34 of 346 DRAFTPage 35 of 346 DRAFTPage 36 of 346 DRAFTPage 37 of 346 DRAFTPage 38 of 346 2024-2027 STRATEGIC PLAN 2024-2027 STRATEGIC PLAN Click the image to view the City's 2024 - 2027 Strategic Plan. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DEPARTMENTAL QUARTERLY UPDATES Click the image to view the latest Departmental Quarterly Updates.DRAFTPage 39 of 346 DEPARTMENT/DIVISIONSTRATEGIC PLAN OBJECTIVE PERFORMANCE METRIC / KPI FUNDING SOURCE STATUS NOTES1Develop and launch economic development outreach programs and business services.1.1 Foster a healthy and resilient local economy.Sales Tax Revenues/AnnualGeneral Fund - City Manager's Office/Economic Development (100150)Complete and ongoing.Includes OpenRewards, ribbon cuttings, multimedia business spotlight programs, etc.2Complete comprehensive citywide fee study.1.3 Foster fiscal health through disciplined long-term planning, cost control, efficiency, increased revenue, and cost recovery.Cost Recovery Rate from FeesGoal: 100%General Fund - City Manager's Office (100130)Complete Becomes effective 7/1/20263Complete procurement process for residential and commercial solid waste franchises.3.3 Protect natural resources. Residential/Commercial Diversion RatesSpecial Revenue Funds - AB 939 Fund (250) CompleteTransitions to new haulers completed 9/1/2025.4Complete Study for compliance with Recovered Organic Waste Products as required by SB 1383.3.3 Protect natural resources. Completion of StudySpecial Revenue Funds - AB 939 Fund (250) & CalRecycle Local Assistant GrantComplete Complete March 20265Complete development impact fee study.1.3 Foster fiscal health through disciplined long-term planning, cost control, efficiency, increased revenue, and cost recovery.Completion of StudyGeneral Fund - City Manager's Office (100130)New initiative/Underway Expected completion by 6/30/20276Revise 2024-2027 City Council Strategic Plan and present to Council for direction.2.1 Provide effective and accessible government services that meet the needs of a diverse population. Adoption by City Council N/A New initiative Expected completion by 6/30/20271Coordinate regularly with department staff to prioritize public records requests to eliminate requests for extensions.Year over year average response timeGeneral Fund - City Clerk (100140)Completed FY 24/25, 25/26Carryover to FY 26/27Recurring Annual Goal. This FY we implemented automatic workflow reminders in Laserfiche to facilitate department responses. 2Complete implementation of new Agenda Management and Live Meeting softwareCustomer Service Survey RatingInternal Service Funds - Equipment Maintenance & Replacement Fund (503)Completed FY 25/26 Transition on first meeting in August, 2025. 3Achieve 100% compliance with City Council, Commission and Designated City Staff submission of Form 700 by annual deadline.Percentage of forms turned in by deadlineGeneral Fund - City Clerk (100140)Completed FY 25/26Carryover to FY 26/27Recurring Annual Goal4Implement SB 707 requirements for public meetings.Agenda Report detailing completion of requirements.General Fund - City Clerk (100140)NEWDeadline to implement state requirements is July 1, 2026. 5Implement minutes and board portal portions of Agenda Management software.Customer Service Survey RatingGeneral Fund - City Clerk (100140)NEW6Conduct and Coordinate General Municipal Elections for three Council Seats in the November 2026 Elections.November 2026 ElectionsGeneral Fund - City Clerk (100140)NEWDistricts 1, 3 and 4.KEY INITIATIVES City Manager's OfficeCity Clerk2.1 Provide effective and accessible government services that meet the needs of a diverse population.FY 2026/27 KEY WORKPLAN INITATIVES BY DEPARTMENT & FY 2025/26 UPDATEDRAFTPage 40 of 346 DEPARTMENT/DIVISIONSTRATEGIC PLAN OBJECTIVE PERFORMANCE METRIC / KPI FUNDING SOURCE STATUS NOTESKEY INITIATIVES FY 2026/27 KEY WORKPLAN INITATIVES BY DEPARTMENT & FY 2025/26 UPDATE1Coordinate production of Annual State of the City Address.Completed FY25/26, Carryover to FY 26/27Recurring Annual Goal2Continue City Government Explained Educational Series.Completed FY25/26, Carryover to FY 26/27Recurring Annual Goal3City Website Refresh2.1 Provide effective and accessible government services that meet the needs of a diverse population.Increased Visitors and Engagement RatesNEW Anticipate completing by fall 2026.1Develop an award winning budget document that meets industry best practices.Receive GFOA Distinguished Budget Presentation AwardCompleted 25/26 Recurring Annual Goal2Maintain compliance with annual debt reporting and provide necessary trainings as needed.Maintain (or improve) AA+ Bond Rating Completed 25/26 Recurring Annual Goal3Assist CM's office with update of the Citywide Fee Study.Cost Recovery Rate from FeesGoal: 100%Completed 25/264Maintain a 10-year General Fund Forecast (Revenues & Expenditures).Percent Variance of Forecast to Actuals. Completed 25/26 Recurring Annual Goal5Implement GASB 103: Financial Model Reporting ImprovementsReceive GFOA Excellence in Financial Reporting AwardNEW6Assist CM's office with long-term budget stabilization strategyA Balanced 10-year General Fund ForecastNEW7Complete centralization of City Hall cashiering utilizing new Enterprise Land Management System.Process 100% of transactions in Tyler CashieringOngoing FY 25/26 Carryover to FY 26/27Integration with Cashiering system is anticipated to be completed in FY 26/278Update User Interface for Online Interactive Budget BookCustomer Service Survey Rating Completed 25/262.2 Build relationships, establish trust, and foster collaboration in the Diamond Bar community.Attendance and Engagement1.3 Foster fiscal health through disciplined long-term planning, cost control, efficiency, increased revenue, and cost recovery.General Fund - Finance (100210)2.1 Provide effective and accessible government services that meet the needs of a diverse population.Community RelationsGeneral Fund - Public Information (100240)FinanceDRAFTPage 41 of 346 DEPARTMENT/DIVISIONSTRATEGIC PLAN OBJECTIVE PERFORMANCE METRIC / KPI FUNDING SOURCE STATUS NOTESKEY INITIATIVES FY 2026/27 KEY WORKPLAN INITATIVES BY DEPARTMENT & FY 2025/26 UPDATE1Develop and implement a formal Employee Onboarding Program.Employee TurnoverOngoing FY 25/26, Carryover to FY 26/27Onboarding program configured; pending roll-out to organization2Successfully onboard new personnel and complete personnel reclassifications pursuant to the adopted annual Human Capital Investment Program (HCIP).Close recruitments and process reclassifications by fiscal year-endCompleted FY 25/26, Carryover to FY 26/27Recurring Annual Goal1Complete the Implementation of the Tyler EnerGov / EPL Land Management SystemOngiong2Implement new Transit Pass systemNEW3 Integrate the Solar+ App for online solar panel installation permits with Tyler EnerGovCompliance with State Regulations NEW4Implement a more robust Security Information and Event Management (SIEM) SolutionNEW5Virtualize non critical serversNEW6Laserfiche integration with Tyler applicationsNEW7Refresh of all Network security appliances including all Cisco Firewalls and ASA’s,NEW8Replacement of the copier in the main copy room and the copier in the Neighborhood Improvement department. NEW9 Provide as-needed support to the City Manager’s Office as false alarm program options are developed and implemented (if approved).NEW10Develop a concept for presentation at an upcoming “All Hands” virtual meeting. Discuss with supervisor and schedule for future meeting.NEW11As part of organizational fiscal sustainability efforts, continue departmental service reviews to determine if there are viable adjustments that will result in budgetary savings and/or service enhancements.NEW12Continue refining long-term departmental structure alternatives with the goal to effectively manage succession planning.NEW1Launch a commercial burglary education and prevention program for business owners3.1 Foster a safe and welcoming environment for residents, businesses, visitors and employeesPart 1 Crime Rate/1,000 Residents + Commercial Burglary totalGeneral Fund - Public Safety / Law Enforcement (100310)Completed and ongoing2Commence work on a revision/update to the Natural Hazard Mitigation Plan (NHMP)3.1 Foster a safe and welcoming environment for residents, businesses, visitors and employeesCommence workSecure FEMA Reimbursement GrantNEWPublic Safety2.3 Establish City of Diamond Bar as an Employer ofChoice.General Fund - Human Resources (100220)2.1 Provide effective and accessible government services that meet the needs of a diverse population.Customer Service RatingMISAC AwardGeneral Fund - Information Systems (100230)& Internal Service Funds - Equipment Maintenance & Replacement Fund (503)Customer Service Survey RatingInformation SystemsHuman ResourcesDRAFTPage 42 of 346 DEPARTMENT/DIVISIONSTRATEGIC PLAN OBJECTIVE PERFORMANCE METRIC / KPI FUNDING SOURCE STATUS NOTESKEY INITIATIVES FY 2026/27 KEY WORKPLAN INITATIVES BY DEPARTMENT & FY 2025/26 UPDATE1Complete the Town Center Specific Plan.1.1 Foster a healthy and resilient local economy.City Council adoption &Number of entitlement applications submitted after adoptionSpecial Funds - General Plan Update Fund (103)Completed FY 25/262Assist IS Department to implement new ELM system for streamlined permit processing.2.1 Provide effective and accessible government services that meet the needs of a diverse population.Customer Service Rating (KPI)General Fund - Planning (100410)General Fund - Building & Safety (100420)Ongoing FY25/26 Carryover to FY 26/27See Information SystemItem 13Adopt Objective Design Standards (ODS) to facilitate the administrative approval of multifamily housing developments.City Council adoption. Number of Development Review applications approved.Special Funds - General Plan Update Fund (103)Completed FY 25/264Incorporate inclusionary housing incentives in the Town Center Specific Plan (TCSP).City Council adoption&Number of inclusionary housing units proposed in Town Center entitlement applications.Special Funds - General Plan Update Fund (103)Completed FY 25/26Part of Town Center Specific Plan. See Item 1 AboveCommunity Development3.6 Foster local housingaccessibility.DRAFTPage 43 of 346 DEPARTMENT/DIVISIONSTRATEGIC PLAN OBJECTIVE PERFORMANCE METRIC / KPI FUNDING SOURCE STATUS NOTESKEY INITIATIVES FY 2026/27 KEY WORKPLAN INITATIVES BY DEPARTMENT & FY 2025/26 UPDATE1Increase revenue at the Diamond Bar Center and community offerings through additional marketing outreach and facility exposure events such as the Wedding & Event Expo and Senior Health Day. 1.3 Foster fiscal health through disciplined long-term planning, cost control, efficiency, increased revenue, and cost recovery.Rental revenue General Fund - Parks & Recreation/Diamond Bar Center(100510)Completed FY 25/26 Recurring Annual Goal2Provide high demand contract classes, updated special events, additional youth mini-camps, and healthy lifestyle educational opportunities showcased at the Summer Programs Open House. 3.2 Build a vibrant, healthy, and supportive community.Attendance & participation General Fund - Parks & Recreation/Recreation Programs(100520)Completed FY 25/26 Recurring Annual Goal3Improve communication and information for park guests through updated park and trail signs.2.1 Provide effective and accessible government services that meet the needs of a diverse population.Replacement with DB Brand Signage General Fund - Parks & Recreation/Recreation Programs(100520)Ongoing to FY 26/27Parks signs are complete, while trail signs are to be completed. 4Improve the Diamond Bar Center's social media presence through various platforms & outreach methods. 2.1 Provide effective and accessible government services that meet the needs of a diverse population.Website visits & DBC appointmentsGeneral Fund - Parks & Recreation/Diamond Bar Center(100510)Completed FY 25/26 Recurring Annual Goal1Provide safe and reliable highways and streets bymaintaining residential and arterial streets.1.2 Provide safe and reliable public infrastructure.Pavement Condition Index (PCI)General Fund - Public Works/Road Maintenance (100655)&CIP Fund (301)Completed FY24/25, Carryover FY 25/26 to FY 26/27.Recurring Annual Goal2Start an EV transition plan for the City fleet1.2 Provide safe and reliable public infrastructure.No of vehicles replaced with EV; number of EV ChargersGeneral Fund, Grants, Special Funds (AB2766)NEWAlternative options reviewed and one of the options will be implemented after the City Council's approval.3Utilize Traffic Management System to improve transportation and mobility systems.3.4 Improve transportation and mobility systems.Maintain Average Speed/Travel Time on Arterials General Fund - Public Works/Engineering (100615)&Special Revenue Funds - Prop C (207)Completed FY25/26 goals; carry over the recurring goal to FY26/27.Recurring Annual Goal4Commence construction of the Diamond Bar Blvd Complete Streets Project.3.2 Build a vibrant, health, and supportive community.Commence Construction Federal, State, and Local Grants &Special Revenue Funds CIP Fund 301Construction Commenced. 5Complete construction of the Diamond Bar Blvd Complete Streets Project.3.2 Build a vibrant, health, and supportive community.Complete Construction State, and Local Grants &Special Revenue Funds CIP Fund 301NEWConstruction ongoing and planned to be completed in FY26/27Parks & RecreationPublic WorksDRAFTPage 44 of 346 DRAFTPage 45 of 346 WHAT IS THE BUDGET? The budget is an annual financial plan for the City of Diamond Bar. It specifies the level of municipal services to be provided in the coming year and reflects strategic priorities set by the City Council. The City of Diamond Bar's budget is designed to serve five major purposes: Definition of policy in compliance with legal requirements for General Law cities in the State of California, Governmental Accounting Standards Board (GASB) financial reporting requirements and audit standards, and fiscal directions of the City Council. 1. Prepare the budget in conformity with Generally Accepted Accounting Principles using the modified accrual basis of accounting. 2. Utilization as an operations guide for administrative staff in the management and control of fiscal resources. 3. Presentation of the City's financial plan for the ensuing fiscal year, itemizing projected revenues and estimated expenditures. 4. Illustration as a communications document for citizens who wish to understand the operations and costs of City services. 5. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 46 of 346 BASIS OF BUDGETING The City of Diamond Bar's annual operating budget is prepared in conformity with Generally Accepted Accounting Principles (GAAP) unless otherwise noted below: 1. The budgetary basis for governmental funds (e.g. General Fund, CIP Fund, Special Revenue funds, Debt Service Fund) is in conformity with GAAP, with a few minor exceptions. In conformity with GAAP, the modified accrual basis of accounting is used wherein revenues are recognized in the accounting period in which they become measurable and available to finance expenditures of the current fiscal period, while expenditures are recognized in the accounting period in which the liability is incurred. However, in the following cases the budgetary basis differs from GAAP: a. Adjustments to recognize gains and losses on investments resulting from changes in their market value are not budgeted. b. Items reported as “other financing sources” and “other financing uses” are classified as revenues and expenditures under the budgetary basis of accounting. 2. The budgetary basis for proprietary funds (e.g. Internal Service funds) is in conformity with GAAP, using the accrual basis of accounting for all revenues and expenses, except for the following instances: a. The receipt of long-term debt proceeds, capital outlays, and debt service principal payments are budgeted, but allocations for depreciation and amortization expense are not. Each of the City's funds is considered a separate accounting entity with a self-balancing set of accounts that records assets, liabilities, fund equity, revenue and expenditures. Funds are established and segregated for the purpose of recording specific programs or attaining certain objectives in accordance with special regulations. The General Fund accounts for all the general revenue of the City not specifically levied or collected for other City funds and for expenditures related to rendering the general services provided by the City. The City of Diamond Bar has twenty-nine Special Revenue Funds that are used to account for specific revenues that are legally restricted to expenditure for particular purposes. The Capital Project Fund is used to account for the purchase or construction of major capital facilities. The Debt Service Fund is used to account for principal and interest payments on outstanding fixed rate bonds. Internal Service Funds are used to account for goods and services provided to other departments within the City such as liability insurance and equipment replacement. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 47 of 346 The budget is prepared on a line item basis by fund and department. The six major General Fund divisions are: City Administration1. Administration & Support2. Public Safety3. Community Development4. Parks & Recreation5. Public Works6.DRAFTPage 48 of 346 BUDGET PROCESS BUDGET STUDY SESSION DETAIL The City Council devotes one Budget Study Session to the annual Capital Improvement Program for the upcoming fiscal year. At this CIP Study Session, staff presents the recommended draft 5-year Capital Improvement Program to the City Council along with the recommended projects for the upcoming fiscal year. Members of the City Council are presented with details on each individual project, along with its recommended budget and funding source, and are given the opportunity to propose new projects. A consensus is then reached at the study session as to the final list of projects to include in the proposed budget for the upcoming fiscal year. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 49 of 346 BUDGET AMENDMENT PROCESS The City Manager is responsible to the City Council for the faithful execution of the City Budget. In order to ensure authorized expenditures are managed in the most efficient and economical manner possible, the City Council authorizes the City Manager to increase or transfer appropriations within the General Fund, Special Revenue Fund or any other unrestricted Fund. The City’s budget may be amended in the following ways: - If a fund has an Undesignated Fund Balance during the Fiscal Year, the City Manager may approve requests for budget increases with Council approval. - Budget adjustments between a department’s line items with a null effect on the overall department budget may be made with the City Manager’s approval. -During the fiscal year, the City Council may modify approved programs and activities or implement new activities that may require budget amendments. On such occasions when the Council approves a project without amending the budget, that approval will constitute authority for the Finance Director to amend the budget subject to the City Manager’s approval. -The City Manager may approve budget amendments to carryover unspent appropriations from the prior year, as authorized by the annual budget resolution.DRAFTPage 50 of 346 FUND STRUCTURE DESCRIPTIONS General Fund is the most versatile fund and is used to account for any legal budgetary purpose not accounted for elsewhere in the budget. Debt Service Funds are used to account for debt payments owed by the City. Capital Improvement Project Funds are used to account for the purchase or construction of major capital projects, which are not financed by proprietary, special assessment or trust funds. Special Revenue Funds are used to account for certain funds, which are legally restricted to certain purposes. Internal Service Funds account for a department of a governmental agency, which provides services to other departments of the agency. The costs of all or a part of the operations and the provision of services are recovered through fees charged to the user departments. Fiduciary (Trust And Agency) Funds account for assets held by the City in a trustee capacity or as agency for individuals, private organizations, other governments, and/or other funds. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 51 of 346 FINANCIAL POLICIES The City’s budget development is shaped by several financial and operational polices. These policies promote and ensure organizational continuity, consistency, transparency, and responsibility from year to year. This section identifies some of the major short and long-term planning documents, financial and operational policies, and fiscal management tools that the City of Diamond Bar employs in order to guarantee fiscal and programmatic integrity and to guide the development of the City’s budget. Annual Budget and Financial Reporting Policy The purpose of this policy is to ensure a balanced annual operating budget and reporting procedures to safeguard public funds and maximize resources available for use by the City in delivering programs and services. A balanced budget is defined as a budget in which operating revenues should cover operating expenditures, including debt service. The ending fund balance must meet minimum policy levels. For the general fund, this level has been stablished at 25%. Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this sutation, beginning fund balance can only be used to fund capital improvement plan projects, or other "one-time," non-recurring expenditures. CAL Card Use Policy The City of Diamond Bar has joined the CAL Card program which is administered through the State General Services Division and US Bank. This program provides a mechanism for government agencies to provide purchasing cards to their employees to expedite purchases of goods and services. This policy sets forth policies and procedures for CAL Card usage. Compensation for City Commissioners/Committee Members The purpose of this policy is to establish compensation for attendance at Commission/Committee Meetings for City Commissioners/Committee Members. Drawing Warrants and Checks Upon City Funds California State law requires the Mayor and City Clerk to execute and countersign all warrants and checks issued for payment from City funds. Government Code Section 37203 provides that the City Council may prescribe an alternative method for drawing warrants and checks. Through adoption of this Policy, the City Council established an alternative method to insure the timely drawing of warrants and checks upon City funds. Travel, Expense and Reimbursement Policy The City of Diamond Bar recognizes the value of attendance by City officials and employees at professional conferences, seminars, meetings with other government officials, professional organizations, community organizations, and constituents and ceremonial events and activities that promote or benefit the City. This City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 52 of 346 policy establishes travel authorization, expense, reimbursement, and reporting standards consistent with the provisions of this policy and in compliance with California Government Code Sections 53232.2 and 53232.3. Fixed Asset Capitalization and Inventory Control Policy The purpose of this policy is to ensure adequate control and appropriate use of City fixed assets. The procedures are intended to define fixed assets and to establish guidelines for budgeting, purchasing and disposing fixed assets. This policy does not apply to infrastructure assets. Anti-Fraud Policy To establish policy and procedures for clarifying acts that are considered to be fraudulent, describing the steps to be taken when fraud or other related dishonest activities are suspected, and providing procedures to follow in accounting for missing funds, restitution and recoveries. Cash Handling Policy The purpose of this policy is to safeguard public funds and also to maximize resources available for use by the City in delivering programs and services. These policies recognize the decentralized nature of the receipting and depositing process, while providing for standardized procedures. Fund Balance and Reserves Policy The purpose of this policy is to establish a key element of the financial stability of the City by setting guidelines for fund balance. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur for unforeseen revenue fluctuations, unanticipated expenditures, and other unexpected circumstances. The fund balance also provides cash flow liquidity for the City's general operations. Capital Financing and Debt Management Policy The purpose of this policy is to provide guidelines for the City's utilization of capital financing and debt for capital improvement projects, property acquisition, and projects whose useful life will exceed the term of the financing. Unclaimed Funds Policy The purpose of this policy is to establish the proper disposition and accounting for unclaimed money in accordance with Government Code Sections 50050 through 50056. Investment Policy The purpose of this policy is to provide guidelines for the prudent investment of the City's temporarily idle cash and to outline the policies for maximizing the efficiency of the City's cash management system. The ultimate goal is to enhance the economic status of the City while protecting its pooled funds in accordance with the applicable local, state and federal laws.DRAFTPage 53 of 346 DRAFTPage 54 of 346 DRAFTPage 55 of 346 100 - GENERAL FUND REVENUE General Fund Revenue 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Property Taxes (40010) Secured Property Taxes $6,178,034 $6,565,175 $6,565,175 $6,720,000 (40020) Unsecured Property Taxes $49,048 $206,872 $206,872 $150,000 (40030) Supplemental Roll Taxes $112,631 $165,000 $165,000 $130,000 (40040) Prior Year Property Taxes -$29,854 -$11,000 -$11,000 -$29,000 (40060) Interest, Penalties & Delinq $21,805 $20,000 $20,000 $20,000 (40070) Homeowner's Exemption $23,355 $25,000 $25,000 $22,000 PROPERTY TAXES TOTAL $6,355,019 $6,971,047 $6,971,047 $7,013,000 Other Taxes & Fees (41010) Sales Tax Revenue $6,122,363 $6,413,700 $6,176,837 $6,315,937 (41020) Transient Occupancy Tax $1,508,775 $1,449,000 $1,449,000 $1,539,000 (41030) Franchise Fees $1,507,567 $1,520,890 $1,520,890 $1,457,000 (41050) Property Transfer Tax $301,982 $330,000 $330,000 $300,000 OTHER TAXES & FEES TOTAL $9,440,687 $9,713,590 $9,476,727 $9,611,937 State Revenue (43010) Motor Vehicle In Lieu $86,648 $65,000 $65,000 $65,000 (43020) Property Tax In Lieu of VLF $7,828,746 $8,107,449 $8,107,449 $8,399,320 STATE REVENUE TOTAL $7,915,394 $8,172,449 $8,172,449 $8,464,320 Fines & Forfeitures (47010) Vehicle Code Fines $101,313 $125,000 $125,000 $110,000 (47020) General Fines $8,770 $15,000 $15,000 $8,000 (47030) Municipal Code Fines $35,805 $50,000 $50,000 $35,000 (47040) Parking Fines $207,233 $170,000 $215,000 $215,000 (47050) Impound Fees $3,700 $10,000 $10,000 $3,000 FINES & FORFEITURES TOTAL $356,821 $370,000 $415,000 $371,000 Building Fees (48010) Construction Permit Fees $1,048,833 $805,415 $1,071,946 $1,453,351 (48020) Plan Check Fees-Bldg/Sfty $575,309 $805,415 $1,060,000 $1,453,351 (48160) Building Standards Admin Fee $181 $500 $500 $500 (48170) SMIP Fees $412 $800 $800 $800 BUILDING FEES TOTAL $1,624,736 $1,612,130 $2,133,246 $2,908,002 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 56 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Planning Fees (48100) Planning Fees $266,281 $215,000 $215,000 $320,708 (48130) Business License Fee $46,932 $43,000 $43,000 $142,508 (48140) Business License - Late Fee $6,032 $4,800 $4,800 $6,160 PLANNING FEES TOTAL $319,245 $262,800 $262,800 $469,376 Engineering Fees (48200) Plan Check Fees - Engineering $26,490 $38,000 $38,000 $135,000 (48210) Address Change Fee $8,277 $8,250 $8,250 $10,000 (48220) Encroachment Permit - Eng $69,529 $119,250 $119,250 $300,000 (48230) Inspections - Engineering $8,942 $12,150 $12,150 $5,000 (48240) Soils/Misc Engineering Fees $15,138 $23,750 $23,750 $24,580 (48260) Waste Hauler Fees $182,501 $186,380 $186,380 $186,380 (48270) Industrial Waste Fees $54,331 $52,500 $52,500 $54,350 ENGINEERING FEES TOTAL $365,210 $440,280 $440,280 $715,310 Recreation Fees (48300) Special Events $36,188 $31,600 $31,600 $15,750 (48310) Senior Programs $33,380 $52,500 $52,500 $55,500 (48320) Youth Programs $166,909 $191,425 $191,425 $127,925 (48330) Athletic Programs $44,391 $42,900 $42,900 $51,500 (48340) Contract Classes $290,158 $300,000 $350,000 $372,000 RECREATION FEES TOTAL $571,026 $618,425 $668,425 $622,675 Investment Income (48500) Investment Earnings $1,328,406 $1,249,000 $1,249,000 $960,260 (48501) Investment Earnings-lease $111,103 $0 $0 $0 (48510) Unrealized Gain/Loss Fmv $698,258 $0 $0 $0 INVESTMENT INCOME TOTAL $2,137,766 $1,249,000 $1,249,000 $960,260 Rental Revenue (48602) Lease Revenue $185,882 $0 $0 $0 (48600) Cell Tower Rental Revenue $30,055 $275,000 $275,000 $285,000 (48601) City Hall EV Charging Fee $3,442 $0 $0 $0 (48605) Db Center Revenue $838,768 $700,000 $700,000 $750,000 (48610) Facility Security Charge $51,563 $73,000 $73,000 $75,000 (48625) Field & Facility Rentals $44,938 $54,500 $54,500 $53,000 RENTAL REVENUE TOTAL $1,154,649 $1,102,500 $1,102,500 $1,163,000 Taxable Sales (48710) Printed Material Sales $7 $200 $200 $200 TAXABLE SALES TOTAL $7 $200 $200 $200 Cost Reimbursements (48800) Prop Damage Reimb - Pwks $9,800 $30,000 $30,000 $30,000 (48810) Prop Damage Reimb - Parks $151 $1,000 $1,000 $1,000 (48820) Cost Reimbursements $164,490 $128,000 $352,310 $144,000 COST REIMBURSEMENTS TOTAL $174,441 $159,000 $383,310 $175,000 Miscellaneous Revenue (48900) Returned Check Charges $138 $230 $230 $230 (48915) Film Permit Revenue $530 $1,000 $1,800 $1,800 (48920) Election Fees $8,920 $0 $0 $0 (48960) Nuisance Abatement $13,351 $0 $0 $0 (48990) Miscellaneous Revenue $6,353 $15,000 $15,000 $15,000 MISCELLANEOUS REVENUE TOTAL $29,292 $16,230 $17,030 $17,030 Interfund Transfers (49102) Transfer In - Law Enforcement $35,837 $50,000 $50,000 $50,000DRAFT Page 57 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (49205) Transfer In - Gas Tax Fd $1,296,349 $1,435,000 $1,435,000 $1,435,000 (49250) Transfer In - Ab939 $0 $10,000 $10,000 $10,000 (49280) Transfer In - Cops Fund $152,500 $152,500 $152,500 $152,500 INTERFUND TRANSFERS TOTAL $1,484,686 $1,647,500 $1,647,500 $1,647,500 TOTAL $31,928,977 $32,335,151 $32,939,514 $34,138,610 DRAFTPage 58 of 346 REVENUE DESCRIPTIONS All revenues which, by law, do not have to be placed in a separate fund are deposited in the General Fund. All general operations of the City are charged to this fund. All expenditures must be made pursuant to appropriations, which lapse annually and at the end of the fiscal year. Unexpended balances are transferred to the unappropriated reserve. PROPERTY TAXES Secured - Current Year Tax levied on secured property pursuant to the revenue and taxation code. Unsecured - Current Year Tax levied on all personal property not secured by real property held in title by the same owner. Due to the transitory nature of unsecured property, a tax is levied immediately after assessed values are determined. Supplemental Roll Taxes levied when secured property is sold to a new owner. It is calculated as the difference between what the seller paid for property tax and what the new owner is expected to pay prorated from the time of closing escrow until the next property tax bill is prepared by the Assessor. Prior Year Uncollected Taxes paid in the current year, which were due in a prior year. Interest and Penalties Interest and penalties charged for the late payment of property taxes. Consultant HdL & Companies provides annual estimates for Secured and Unsecured Property Taxes. Supplemental and Delinquent Property Taxes are based on the latest 3 year average trend. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 59 of 346 PROPERTY TAXES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (40010) Secured Property Taxes $6,178,034 $6,565,175 $6,565,175 $6,720,000 (40020) Unsecured Property Taxes $49,048 $206,872 $206,872 $150,000 (40030) Supplemental Roll Taxes $112,631 $165,000 $165,000 $130,000 (40040) Prior Year Property Taxes -$29,854 -$11,000 -$11,000 -$29,000 (40060) Interest, Penalties & Delinq $21,805 $20,000 $20,000 $20,000 (40070) Homeowner's Exemption $23,355 $25,000 $25,000 $22,000 (41050) Property Transfer Tax $301,982 $330,000 $330,000 $300,000 TOTAL $6,657,001 $7,301,047 $7,301,047 $7,313,000 OTHER TAXES Sales and Use Tax As a result of the Bradley-Burns Local Sales and Use Tax law, 1% of the Sales & Use Tax is to be distributed to the City. Consultant HdL & Companies provides annual estimates. Transient Occupancy Tax These revenues are received on a monthly basis from the hotels in the City. The hotels are required to pay a 14% tax based on the amount of their room rental revenues. Estimate based on historical trends.DRAFTPage 60 of 346 Franchise Fees Companies are granted special privileges for the continued use of public property, such as city streets. Such companies usually involve elements of monopoly and may require regulation. The Franchise Fees are the amounts required for the continued granting of these privileges. Franchises currently granted within the City are Electric, Gas, Cable TV, Bus Benches and Waste Hauler. Estimate based on franchise agreements with each franchisee. OTHER TAXES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (41010) Sales Tax Revenue $6,122,363 $6,413,700 $6,176,837 $6,315,937 (41020) Transient Occupancy Tax $1,508,775 $1,449,000 $1,449,000 $1,539,000 (41030) Franchise Fees $1,507,567 $1,520,890 $1,520,890 $1,457,000 TOTAL $9,138,705 $9,383,590 $9,146,727 $9,311,937 FINES AND FORFEITURES Vehicle Code Fines Amounts derived from traffic citations and fines for violations occurring within the city limits. Court Fines and Forfeitures Fines collected by the county courts for city code violations other than traffic, which are shared with Los Angeles County. Impound Fees Fines collected upon the release of vehicles, which have been impounded and stored by the Sheriff's Department. Miscellaneous DRAFTPage 61 of 346 Other fines and forfeitures not included above. Estimate based on historical trends and changes to the City and/or County Fee Schedule. FINES & FORFEITURES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Fines & Forfeitures $356,821 $370,000 $415,000 $371,000 Miscellaneous Revenue $2,590 $16,230 $17,030 $17,030 TOTAL $359,411 $386,230 $432,030 $388,030 LICENSES AND PERMITS Building Fees Building Fees are collected in accordance with the Uniform Building Code. The revenues from these fees are used to cover the cost of providing building inspections to insure compliance with building codes. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. Encroachment Permit Fees These fees are levied to cover costs of inspections for work within the public right-of-way for the construction of new or repair of existing utility facilities and other public improvements such as sidewalks, curb, gutter, asphalt roadway, etc. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. DRAFTPage 62 of 346 Business License Fees All individuals and businesses doing work with city limits, whether or not they have a physical structure in the city, are required to have a business license. The basic business license fee is $47.39 and $14.00 per year for renewals. Licenses requiring a one-time zoning clearance are $141.19, and an additional fee of $347.39 per individual requiring a background check. These fees are used to cover the cost of reviewing and issuance of permits, records retention, etc. to ensure that businesses are safe for the public. Estimate based on historical business license volume. Certified Access Specialist Program (CASP) Fees SB 1186 requires that a $4 additional fee is to be paid by any applicant seeking a local business license when it is initially issued or renewed. From January 1, 2018 through December 31, 2023, the City will retain 90% of the fees collected. The purpose of the fee is to increase disability access and compliance with construction related accessibility. Money from the Revenue Source are accounted for in Special Revenue Fund 226 Estimate based on historical business license volume and the State's Fee Schedule. LICENSES & PERMITS 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (48010) Construction Permit Fees $1,048,833 $805,415 $1,071,946 $1,453,351 (48020) Plan Check Fees-Bldg/Sfty $575,309 $805,415 $1,060,000 $1,453,351 (48160) Building Standards Admin Fee $181 $500 $500 $500 (48170) SMIP Fees $412 $800 $800 $800 (48130) Business License Fee $46,932 $43,000 $43,000 $142,508 (48140) Business License - Late Fee $6,032 $4,800 $4,800 $6,160 (48220) Encroachment Permit - Eng $69,529 $119,250 $119,250 $300,000 TOTAL $1,747,228 $1,779,180 $2,300,296 $3,356,670DRAFT Page 63 of 346 CURRENT SERVICE CHARGES Planning and Engineering Fees These fees are levied to cover costs of plan checks, inspections, etc. which maybe necessary in conjunction with new construction or improvements being made by contractors. Estimate based on anticipated building activity and any changes to the City's Fee Schedule. Recreation Fees These fees are levied to cover the cost of providing recreation programs such as fee classes, Tiny Tot programs, excursions, summer day camp, youth and adult athletics, senior activities and community events. Estimate based on trending program participation and any changes to the City's Fee Schedule. Public, Educational and Governmental (PEG) Fees Fees totaling 1% of gross revenues are remitted to the City by all video service providers with a valid state franchise. These funds may only be used for capital improvements related to the City's operations of its PEG channels. Money from the Revenue Source are accounted for in Special Revenue Fund 270. Estimate based on historical trends. CURRENT SERVICE CHARGES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (48100) Planning Fees $266,281 $215,000 $215,000 $320,708 (48200) Plan Check Fees - Engineering $26,490 $38,000 $38,000 $135,000 (48210) Address Change Fee $8,277 $8,250 $8,250 $10,000 (48230) Inspections - Engineering $8,942 $12,150 $12,150 $5,000 (48240) Soils/Misc Engineering Fees $15,138 $23,750 $23,750 $24,580DRAFT Page 64 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (48260) Waste Hauler Fees $182,501 $186,380 $186,380 $186,380 (48270) Industrial Waste Fees $54,331 $52,500 $52,500 $54,350 (48300) Special Events $36,188 $31,600 $31,600 $15,750 (48310) Senior Programs $33,380 $52,500 $52,500 $55,500 (48320) Youth Programs $166,909 $191,425 $191,425 $127,925 (48330) Athletic Programs $44,391 $42,900 $42,900 $51,500 (48340) Contract Classes $290,158 $300,000 $350,000 $372,000 TOTAL $1,132,988 $1,154,455 $1,204,455 $1,358,693 DRAFTPage 65 of 346 INTERGOVERNMENTAL REVENUE Property Tax In-Lieu of Vehicle License Fee (VLF) The VLF is a tax imposed by the state on the ownership of registered vehicles. In 2004, the State issued a permanent reduction to the VLF. To offset the reduction to the VLF, the Cities receive additional property tax. This 'property tax in-lieu of VLF' is determined by the change in the gross assessed valuation of taxable properties within the jurisdiction from the prior year. As mentioned, this tax is an additional property tax to the other property tax apportionments. These funds are included in the budget as 'Property Tax In-Liue of VLF' revenue. Property Tax In Lieu of VLF 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (43020) Property Tax In Lieu of VLF $7,828,746 $8,107,449 $8,107,449 $8,399,320 TOTAL $7,828,746 $8,107,449 $8,107,449 $8,399,320 DRAFTPage 66 of 346 Projection prepared by consultant HdL Companies, LLC. AB2766 - Air Quality Improvement/Pollution Reduction Fees These fees are derived from the imposition of an additional motor vehicle registration fee which shall be used to fund the implementation of air quality management compliance and provisions of the California Clean Air Act of 1988. Money from the Revenue Source are accounted for in Special Revenue Fund 251. Estimate based on historical trends. Gas Tax Section 2105 This Section of the Streets and Highways Code provides for the collection and distribution of special gas tax to fund improvements for regional transportation needs. Money from the Revenue Source are accounted for in Special Revenue Fund 205. Gas Tax Section 2106 Section 2106(a) of the Streets and Highways Code provides that each city shall receive a fixed monthly apportionment of $400; Section 2106(c) provides for distribution on a per capita basis. Money from the Revenue Source are accounted for in Special Revenue Fund 205. Gas Tax Section 2107 This section provides monthly allocations of 1.315 cents per gallon of gasoline, 1.8 cents per gallon of diesel and 2.59 cents per liquefied petroleum gas (LPG) based on population. Money from the Revenue Source are accounted for in Special Revenue Fund 205. Gas Tax Section 2107.5 This account represents a fixed amount of revenue received from the state based on population. Money from the Revenue Source are accounted for in Special Revenue Fund 205. Highway Users Tax Act (HUTA) This revenue source replaces the Proposition 42 sales tax on gasoline with a franchise tax. It is intended to be revenue neutral to Cities and allow greater flexibility at the State level. Road Maintenance & Rehabilitation Act of 2017 (SB-1) This source of revenue was signed into law in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide. A fuel tax increase began on November 1, 2017. The value-based transportation fee began on January 1, 2018. The price-based excise tax will be reset on July 1, 2019 and the new zero emissions vehicle fee will begin on July 1, 2020. Money from the Revenue Source are accounted for in Special Revenue Fund 202. Gas Tax, HUTA and SB-1 estimates are provided by California Local Government Finance Almanac which bases their estimates on State Department of Finance statewide revenue projections. Measure W The Safe Clean Water Act (ACW Program) also known as Measure W was approved by the voters in November 2018. The revenue generated from this measure is intended to maximize the ability of local governments to address local storm water and urban runoff challenges and is to be used for water quality improvements within the City. It is estimated that the City will receive $800,000 annually as part of this program. Money from the Revenue Source are accounted for in Special Revenue Fund 201. Measure M Approved by the voters on November 6, 2016, this half-cent sales tax increase will fund projects that will improve local streets, repair potholes and improve traffic flow/safety. The City received its first allocation of Measure M funds during FY 2017-18. Money from the Revenue Source are accounted for in Special Revenue Fund 203.DRAFTPage 67 of 346 Prop A - Transit Tax The City receives twenty-five percent of the 1/2% Prop A Sales tax (approved by voters in 1980). These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis. The funds are to be used for the development of transit programs within the guidelines established by the MTA. Money from the Revenue Source are accounted for in Special Revenue Fund 206. Prop C - Transit Tax The City receives twenty percent of the 1/2% Prop C sales tax (approved by voters in 1990). These funds are distributed by the L.A. County Metropolitan Transportation Authority (MTA), and are distributed to Los Angeles County cities on a proportional population basis. The funds are to be used the improving, expanding and maintaining public transit services. These expenditures must be consistent with the County's Congestion Management Program. Money from the Revenue Source are accounted for in Special Revenue Fund 207. Measure R - Local Return Funds Measure R is funded with 1/2 cent sales tax revenues that LA County voters approved in November 2008 to meet the transportation needs of the County. Fifteen percent of this tax is designated for the Local Return program to be used by cities. These funds are to be used for local transportation projects. Money from the Revenue Source are accounted for in Special Revenue Fund 204. Measure M, Prop A, Prop C and Measure R estimates come from L.A. County Metropolitan Transportation Authority (MTA). Prop A - Safe Parks Program Funds transferred to the City as a result of the 1992 and 1996 L.A. County Safe Neighborhood Parks Act. These funds are to be used to improve, preserve and restore parks and to employ at-risk youth. Projects utilizing the California Conservation Corps are funded through the at-risk youth element of this program. This program ended in FY 2017-18. Measure A Neighborhood Parks Act Approved by the voters in November 2016, this new source of revenue in FY 2018-19 provides funds to improve the quality of life throughout Los Angeles County by preserving and protecting parks, safe places to play, community recreation facilities, beaches, rivers, open spaces and water conservation. Measure A funds provide local funding for parks, recreation, trails, cultural facilities, open space and Veteran and youth programs. Money from the Revenue Source are accounted for in Special Revenue Fund 261. Annual estimates are received from the Los Angeles County Regional Park and Open Space District. STATE GRANTS State TDA The Transportation Development Act provides this source of funding. Derived from statewide sales tax, and allocated by formula to the County Transportation Commission, allocations are deposited in each regional entity's State Transit Assistance Fund. Estimate based on historical trends. SB821 - Bike and Pedestrian Paths SB821 allows the City to request specifically allocated monies for the purpose of constructing bike and pedestrian paths. Money from the Revenue Source are accounted for in Special Revenue Fund 209.DRAFTPage 68 of 346 Estimate based on historical trends. Habitat Conservation Fund (HFC) Established by the California Wildlife Protection Act of 1990 (Proposition 117), the HCF provides funding to local agencies to protect threatened species, to address wildlife corridors, to create trails and to provide for nature interpretation programs which bring urban residents into park and wildlife areas. Grant awards vary from year to year so this is based on individual grant criteria. COUNTY GRANTS County TDA The Transportation Development Act provides this source of funding. Derived from state sales tax and allocated by formula to the County Local Transportation Fund, allocations are available to operators for the support of public transportation systems. Based on estimates from Los Angeles County.DRAFTPage 69 of 346 FEDERAL GRANTS Community Development Block Grant (CDBG) The federal government provides funds for metropolitan areas whose population exceeds 50,000. The funds are based upon a federal formula and are to be used only within low and moderate-income census tracts and/or to benefit low and moderate-income persons. Money from the Revenue Source are accounted for in Special Revenue Fund 225. Based on estimates received from the Community Development Commission of the County of Los Angeles. Moving Ahead For Progress In The 21st Century (MAP-21) The Federal Government has created a Federal Surface Transportation Program that allocates funds for various improvements to the nation’s streets and roads. This two year legislation has annual allocations funded primarily by the Highway Account. Estimate based on historical trends. Land & Water Conservation Fund (LWCF) LWCF is a Federal program that conserves irreplaceable lands and improves outdoor recreation opportunities. Funds are administered by the State of California and are allocated to local agencies through competitive grants. Grant awards vary from year to year so this is based on individual grant criteria. Recreational Trails Program (RTP) RTP is a Federal program that provides financial assistance to local agencies for the development of recreational trails, trailheads and trailside facilities. Funds are administered by the State of California and are allocated to local agencies through competitive grants. Grant awards vary from year to year so this is based on individual grant criteria. Hazard Mitigation Grant Program The City received a grant from FEMA, which is administered by the State, in order to update the City's Hazard Mitigation Plan. This plan establishes the City's strategy to implement improvements and programs to lessen community impacts in the event of natural hazard events. Money from the Revenue Source are accounted for in Special Revenue Fund 256. Grant awards vary from year to year so this is based on individual grant criteria. OTHER FINANCING SOURCES Proceeds from Sale of General Fixed Assets This includes proceeds from the sale of fixed assets (used by governmental funds only). Damage to City Property These funds include reimbursement to the City for repairing willful or accidental damage to city property. Generally these are associated with automobile accidents. Cost Reimbursements Reimbursements to the City for various expenditures incurred that are reimbursable i.e. legal expenses.DRAFTPage 70 of 346 All three of these revenue source estimates are based on historical trends. Street Beautification - Developer Paid Funds received from development projects to be used toward the Diamond Bar Complete Streets improvements as well as other identified capital improvement streetscape or complete streets projects as conditioned by the development projects entitlements. Money from the Revenue Source are accounted for in Special Revenue Fund 245. Estimate based on anticipated development projects and the associated fees. OPERATING TRANSFERS IN Operating Transfers In Includes monies transferred from one fund to another. Transfers are income to recipient fund. USE OF MONEY AND PROPERTY Investments Inactive City funds are pooled and invested on a continuing basis in certain types of investments that are state approved such as time certificate of deposits, money market accounts, Local Agency Investment Fund, and Federal Agency notes. The City's investment software produces a projection based on the holdings in the portfolio.DRAFTPage 71 of 346 USE OF MONEY & PROPERTY 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (48500) Investment Earnings $1,328,406 $1,249,000 $1,249,000 $960,260 (48501) Investment Earnings-lease $111,103 $0 $0 $0 (48510) Unrealized Gain/Loss Fmv $698,258 $0 $0 $0 TOTAL $2,137,766 $1,249,000 $1,249,000 $960,260 DRAFTPage 72 of 346 100 - GENERAL FUND APPROPRIATIONS GF Appropriations 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $6,813,398 $7,060,826 $6,955,826 $7,404,120 (50020) Over Time Wages $38,549 $46,904 $47,354 $43,599 (50030) Part-Time Wages $841,375 $962,748 $945,900 $921,460 (50040) Classic Member Retiremnt $863,508 $874,735 $874,735 $906,424 (50042) Classic Member Ual Pmts $574,111 $688,962 $688,962 $776,820 (50044) Pepra Member Retiremnt $163,829 $189,307 $189,307 $203,886 (50046) Pepra Member Ual Pmts $8,675 $10,138 $10,138 $10,766 (50050) City Paid Benefits $106,712 $71,207 $71,207 $68,804 (50052) Worker's Compensation $136,637 $125,609 $125,609 $147,448 (50054) Short/Long Term Disability $28,958 $68,951 $68,951 $72,528 (50056) Medicare Expense $120,286 $112,747 $112,747 $107,708 (50060) Benefit Allotment $1,321,703 $1,389,577 $1,389,577 $1,477,325 (50062) Benefits Administration -$3,841 $3,000 $3,000 $3,000 (50070) Cell Phone Allowance $3,034 $0 $0 $1,800 (50072) Auto Allowance $42,071 $45,048 $45,048 $43,386 (50074) Technology Allowance $18,300 $25,344 $25,344 $18,564 (50075) Performance Pay Incentive $90,000 $90,000 $90,000 $90,000 PERSONNEL SERVICES TOTAL $11,167,307 $11,765,103 $11,643,705 $12,297,638 Supplies (51200) Operating Supplies $244,732 $352,950 $362,550 $338,000 (51210) Janitorial Supplies $28,718 $30,000 $30,000 $30,000 (51250) Road Maintenance Supplies $36,071 $70,000 $70,000 $50,000 (51300) Small Tools & Equipment $36,218 $47,850 $44,750 $48,850 (51400) Promotional Supplies $30,355 $39,500 $39,500 $39,500 SUPPLIES TOTAL $376,094 $540,300 $546,800 $506,350 Operating Exp (52100) Photocopying $0 $8,000 $8,000 $8,000 (52110) Printing $136,130 $179,798 $179,398 $168,048 (52130) Photography $1,690 $9,750 $9,750 $11,750 (52140) Engraving Services $410 $1,000 $1,000 $1,000 (52160) Advertising $53,008 $78,350 $78,349 $76,600 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 73 of 346 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (52170) Postage $85,178 $67,400 $67,400 $67,400 (52200) Telephone $108,615 $104,900 $147,900 $154,300 (52210) Electric Utility Expenditure $465,953 $510,500 $510,500 $545,500 (52215) Gas Utility Expenditure $22,931 $24,200 $24,200 $22,500 (52220) Water Utility Expenditure $438,215 $336,200 $336,200 $286,200 (52255) Banking Charges $52,894 $51,700 $51,700 $52,100 (52300) Rental/Lease - Equipmnt $20,797 $27,500 $27,500 $27,500 (52302) Rental/Lease - Real Property $98,881 $128,400 $128,400 $142,650 (52304) Rental/Lease - Exhibit Space $6,263 $8,000 $8,000 $9,000 (52310) Equipment Maintenance $43,236 $69,000 $70,500 $74,200 (52314) Computer Maintenance $575,271 $598,700 $598,700 $639,050 (52320) Maint Of Grounds/Buildings $595,992 $627,100 $642,600 $641,600 (52400) Membership & Dues $125,427 $152,385 $152,685 $144,562 (52405) Publications $2,899 $3,870 $3,870 $3,880 (52410) Meetings $10,340 $25,800 $25,800 $23,550 (52415) Conferences $60,259 $114,950 $108,950 $115,100 (52420) Mileage Reimbursement $295 $2,250 $2,250 $2,250 (52500) Education & Training $26,267 $52,700 $52,700 $48,600 (52505) Employee Tuition Reimbursement $2,500 $3,000 $1,500 $3,000 (52510) Employment Physicals $8,802 $15,500 $15,500 $15,500 (52515) Miscellaneous Employee Benefit $1,833 $2,500 $2,500 $2,500 (52520) Employee Recognition Program $4,219 $4,000 $4,000 $4,000 (52525) Commissioner Compensation $4,955 $7,850 $6,850 $7,850 (52601) Shop Local Initiative $34,504 $49,080 $49,080 $34,080 (53500) Criminal Apprehension Reward $0 $2,500 $2,500 $1,500 (53510) Public Safety Outreach $5,519 $12,500 $12,500 $10,000 (53520) Admissions - Youth Activities $16,687 $21,000 $21,000 $21,000 (53530) Elections $649 $2,000 $2,000 $250,000 (53999) Miscellaneous Expenditures $147 $0 $0 $0 OPERATING EXP TOTAL $3,010,766 $3,302,383 $3,353,782 $3,614,770 Professional Svcs (54010) PS - Accounting & Auditing $67,231 $76,750 $86,750 $92,800 (54020) PS - General Legal Services $247,584 $186,000 $186,000 $258,600 (54022) PS - Special Legal Services $112,308 $0 $232,691 $0 (54024) PS - Special Legal Code Enf $75,843 $75,000 $75,000 $75,000 (54030) PS - Data Processing Services $45,415 $44,500 $44,500 $44,500 (54200) PS - Environmental Services $5,700 $30,000 $30,000 $0 (54400) PS - Engineering $102,521 $130,500 $395,500 $130,500 (54410) PS - Traffic $54,613 $115,000 $115,000 $115,000 (54420) PS - Plan Checking $328 $20,000 $20,000 $20,000 (54430) PS - Soils/Surveying $0 $20,000 $55,000 $30,000 (54440) PS - Inspection $0 $10,300 $10,300 $5,300 (54900) PS - Other Prof Svcs $532,186 $674,300 $868,893 $308,950 PROFESSIONAL SVCS TOTAL $1,243,729 $1,382,350 $2,119,634 $1,080,650 Contract Services (55130) CS-Short Term Rental Monitoring $0 $5,500 $5,500 $5,700 (55000) Cs - Contract Services $45,571 $61,200 $61,200 $49,200 (55100) Cs - Building & Safety $729,272 $620,000 $925,000 $1,149,870 (55110) Cs-Code Enforcement $6,686 $10,000 $10,000 $10,000 (55120) Cs-Property Abatement $4,025 $10,000 $10,000 $10,000 (55300) Cs - Special Events $183,290 $258,800 $258,800 $126,200DRAFT Page 74 of 346 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (55305) Cs - Athletic Programs $5,304 $6,000 $6,000 $6,000 (55310) Cs - Senior Programs $32,165 $48,350 $48,350 $49,100 (55315) Cs - Youth Programs $4,370 $10,000 $10,000 $10,750 (55320) Cs - Contract Classes $172,026 $224,000 $254,000 $260,000 (55330) Cs - Security $50,984 $77,800 $77,800 $76,500 (55400) Cs - Sheriff's Department $7,984,309 $8,603,590 $8,603,590 $8,888,490 (55402) Cs-Sheriff - Special Events $194,847 $232,000 $232,000 $212,000 (55404) Cs - Animal Control $463,359 $556,800 $556,800 $572,300 (55406) Cs - Fire Department $7,359 $8,000 $8,000 $8,000 (55408) Cs - Parking Citation Admin $24,253 $32,500 $32,500 $32,500 (55410) Cs - Wild Animal Control $323 $7,500 $7,500 $7,500 (55412) Cs - Crossing Guard Services $252,801 $289,800 $289,800 $289,800 (55505) Cs - Pw Contract Services $469,338 $632,000 $725,000 $804,260 (55510) Cs - Street Sweeping $180,849 $210,000 $210,000 $203,000 (55512) Cs - Road Maintenance $898,740 $898,000 $898,000 $785,000 (55522) Cs - Tree Maintenance $300,961 $378,800 $378,800 $328,800 (55528) Cs - Pkwy/Vegetation Control $151,815 $204,000 $204,000 $160,000 (55530) Cs - Right Of Way Clean Up $51,531 $65,000 $65,000 $65,000 (55536) Cs - Traffic Signal Maint $50,771 $94,000 $94,000 $94,000 (55540) Cs - Graffiti Removal $36,900 $40,000 $44,000 $44,000 (55550) Cs - Industrial Waste Services $44,646 $50,000 $50,000 $50,000 CONTRACT SERVICES TOTAL $12,346,495 $13,633,640 $14,065,640 $14,297,970 Capital Outlay Exp (56110) Buildings/Facilities Exp $5,314 $0 $0 $0 (56116) Equipment $37,089 $65,000 $65,000 $72,000 (56120) Furniture & Fixtures Exp $6,610 $2,000 $2,000 $2,000 CAPITAL OUTLAY EXP TOTAL $49,012 $67,000 $67,000 $74,000 Misc Expenditures $0 $0 $6,000 $7,000 Interfund Transfer Out (59107) Transfer Out - Homelessness Response Fund $50,000 $50,000 $50,000 $25,000 (59101) Transfer Out - Com Org Fund $11,850 $20,000 $20,000 $10,000 (59102) Transfer Out - Law Enforcement $263,609 $0 $0 $0 (59103) Transfer Out - General Plan Reserve $58,000 $0 $0 $0 (59104) Transfer Out - Tech Reserve Fd $100,000 $100,000 $100,000 $100,000 (59106) Transfer Out - Covid19 Fund $0 $0 $106,000 $0 (59105) Transfer Out - OPEB Res Fund $40,000 $44,000 $44,000 $44,000 (59238) Transfer Out - Llad #38 $0 $217,326 $525,803 $88,879 (59239) Transfer Out - Llad #39 $44,037 $45,535 $45,535 $42,533 (59241) Transfer Out-Llad #41 $11,955 $12,314 $12,314 $17,392 (59248) Transfer Out - Tres Hermanos $95,473 $80,000 $80,000 $120,000 (59256) Transfer Out - Haz Elim Grant $0 $0 $0 $56,000 (59301) Transfer Out - Cip Fund $1,124,361 $0 $1,137,008 $0 (59401) Transfer Out - Debt Service $717,935 $729,700 $729,700 $726,000 (59501) Transfer Out - Self Insurance $580,000 $0 $0 $820,807 (59502) Transfer Out - Vehicle Repl Fund $269,000 $296,500 $296,500 $136,500 (59503) Transfer Out-Computer Equip Fund $53,580 $0 $0 $0 (59504) Transfer Out - Building Fund $154,200 $0 $0 $100,000 INTERFUND TRANSFER OUT TOTAL $3,574,000 $1,595,375 $3,146,860 $2,287,111 TOTAL $31,767,403 $32,286,151 $34,949,421 $34,165,489DRAFT Page 75 of 346 DRAFTPage 76 of 346 110 - CITY COUNCIL OVERVIEW The City Council is the legislative and policy-making body for the City of Diamond Bar. Beginning with the November 2022 election, five Council Members will be elected by district to serve four-year, overlapping terms of office. The Council annually elects one of its members to serve as Mayor. The Mayor presides over all Council meetings and is the ceremonial head of the City for official functions. As Diamond Bar's elected representatives, the City Council sets policy and establishes quality of municipal services for the community by determining service levels and revenue obligations through the adoption of an annual budget, authorizing City contracts and expenditures, and adopting necessary regulatory measures. Council Members represent the City on various intergovernmental organizations to achieve governmental cooperation and advocate for programs that are consistent with the needs of the community. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 77 of 346 BUDGET DETAIL 100110 - City Council 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $45,129 $44,761 $44,761 $46,150 (50040) Classic Member Retiremnt $1,690 $1,749 $1,749 $1,812 (50042) Classic Member Ual Pmts $1,366 $1,385 $1,385 $1,561 (50044) Pepra Member Retiremnt $1,412 $2,939 $2,939 $3,034 (50046) Pepra Member Ual Pmts $86 $81 $81 $84 (50050) City Paid Benefits $4,539 $4,119 $4,119 $4,119 (50056) Medicare Expense $1,896 $670 $670 $694 (50060) Benefit Allotment $103,644 $111,000 $111,000 $117,000 (50070) Cell Phone Allowance $3,034 $0 $0 $1,800 (50072) Auto Allowance $17,882 $18,000 $18,000 $18,000 (50074) Technology Allowance $0 $3,000 $3,000 $0 PERSONNEL SERVICES TOTAL $180,679 $187,704 $187,704 $194,254 Supplies (51200) Operating Supplies $0 $250 $250 $250 SUPPLIES TOTAL $0 $250 $250 $250 Operating Exp (52130) Photography $271 $500 $500 $2,500 (52400) Membership & Dues $0 $500 $500 $500 (52410) Meetings $3,843 $4,000 $4,000 $4,000 (52415) Conferences $9,638 $27,000 $27,000 $31,500 (53999) Miscellaneous Expenditures $65 $0 $0 $0 OPERATING EXP TOTAL $13,817 $32,000 $32,000 $38,500 TOTAL $194,496 $219,954 $219,954 $233,004 POSITION FUNDING ALLOCATION DETAIL 100110 - City Council Position Name 2027 Allocated FTE Count Council Member 5 ALLOCATED FTE COUNT 5DRAFT Page 78 of 346 120 - CITY ATTORNEY OVERVIEW The City Attorney serves as the City's legal counsel, reviews resolutions, ordinances and agreements, and advises the City Council and staff on all legal matters relating to the operation of the municipal government. This service is provided through a contract with the law offices of Woodruff & Smart, APC. In addition to the general legal services provided by Woodruff & Smart, APC the City periodically has the need for legal services related to code enforcement prosecution which is also provided for within this Division. The City may also enlist the services of additional legal experts as needed to address personnel issues and to assist with other matters important to the community. BUDGET DETAIL 100120 - City Attorney 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Professional Svcs (54020) PS - General Legal Services $247,584 $186,000 $186,000 $258,600 (54022) PS - Special Legal Services $112,308 $0 $232,691 $0 (54024) PS - Special Legal Code Enf $75,843 $75,000 $75,000 $75,000 PROFESSIONAL SVCS TOTAL $435,735 $261,000 $493,691 $333,600 TOTAL $435,735 $261,000 $493,691 $333,600 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 79 of 346 130 - CITY MANAGER DEPARTMENT OVERVIEW The City Manager Department budget provides administrative direction to all operating divisions in compliance with the City's Municipal Code. This division is responsible for the execution of Council policy and the enforcement of all laws and ordinances. The City Manager, in concert with the City Council, establishes policy, provides leadership and implements efficient and effective services. The City Manager is the director of all City personnel and establishes and maintains appropriate controls to ensure that all operating departments adhere to Council and legally mandated policies and regulations. Additionally, the City Manager is responsible for the development of the City's annual budget. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 80 of 346 CITY MANAGER'S OFFICE ORGANIZATIONAL CHART BUDGET DETAIL 100130 - City Manager 2024 - 25 Actual 2025-26 AdoptedBudget 2025-26 RevisedBudget 2026-27 ProposedBudget Personnel Services (50010) Salaries $653,954 $645,357 $645,357 $649,966 (50030) Part-Time Wages $46,658 $89,775 $89,775 $89,775 (50040) Classic Member Retiremnt $97,853 $96,804 $96,804 $100,282 (50042) Classic Member Ual Pmts $63,819 $76,501 $76,501 $86,229 (50044) Pepra Member Retiremnt $8,522 $8,139 $8,139 $8,397 (50046) Pepra Member Ual Pmts $360 $440 $440 $456 (50050) City Paid Benefits $9,304 $4,043 $4,043 $4,043 (50052) Worker's Compensation $13,046 $11,972 $11,972 $13,775 (50054) Short/Long Term Disability $2,219 $6,111 $6,111 $6,331 (50056) Medicare Expense $10,558 $10,538 $10,538 $10,482 (50060) Benefit Allotment $88,592 $85,788 $85,788 $89,796 (50072) Auto Allowance $1,875 $1,800 $1,800 $1,800 (50074) Technology Allowance $2,070 $2,034 $2,034 $2,034 PERSONNEL SERVICES TOTAL $998,830 $1,039,302 $1,039,302 $1,063,366 Supplies (51200) Operating Supplies $101 $2,000 $2,000 $2,000DRAFT Page 81 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (51300) Small Tools & Equipment $0 $500 $500 $500 SUPPLIES TOTAL $101 $2,500 $2,500 $2,500 Operating Exp (52110) Printing $478 $4,000 $4,000 $4,000 (52302) Rental/Lease - Real Property $32,666 $35,000 $35,000 $35,000 (52400) Membership & Dues $63,612 $68,820 $68,820 $70,692 (52410) Meetings $2,271 $3,500 $3,500 $3,500 (52415) Conferences $11,950 $18,200 $18,200 $14,900 (52500) Education & Training $10,670 $10,000 $10,000 $10,000 OPERATING EXP TOTAL $121,647 $139,520 $139,520 $138,092 Professional Svcs (54900) PS - Other Prof Svcs $108,102 $150,000 $228,435 $55,000 PROFESSIONAL SVCS TOTAL $108,102 $150,000 $228,435 $55,000 TOTAL $1,228,680 $1,331,322 $1,409,757 $1,258,958 POSITION FUNDING ALLOCATION DETAIL 100130 - City Manager's Office Position Name 2027 Allocated FTE Count Management Analyst 1 Assistant to the City Manager 0.59 Principal Management Analyst 0.35 City Manager 0.8 Administrative Intern (PT)1.75 Assistant City Manager 0.6 ALLOCATED FTE COUNT 5.09DRAFT Page 82 of 346 140 - CITY CLERK DEPARTMENT OVERVIEW The City Clerk has the statutory duty to record the official minutes of all City Council meetings. The division maintains original resolutions and ordinances, is responsible for the management of all City records, public hearing notices and for the maintenance of the municipal code. This position also acts as the chief election officer for municipal elections. Administrative and clerical support to the Council Members is also provided through the City Clerk’s office. CITY CLERK ORGANIZATIONAL CHART City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 83 of 346 BUDGET DETAIL 100140 - City Clerk 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $293,590 $245,221 $245,221 $254,677 (50020) Over Time Wages $1,823 $2,604 $2,604 $2,604 (50040) Classic Member Retiremnt $54,188 $46,451 $46,451 $48,117 (50042) Classic Member Ual Pmts $30,097 $36,649 $36,649 $41,309 (50050) City Paid Benefits $4,132 $2,353 $2,353 $2,353 (50052) Worker's Compensation $2,240 $2,102 $2,102 $2,430 (50054) Short/Long Term Disability $1,247 $2,444 $2,444 $2,532 (50056) Medicare Expense $4,712 $3,558 $3,558 $3,671 (50060) Benefit Allotment $51,940 $43,494 $43,494 $45,864 (50072) Auto Allowance $1,440 $1,440 $1,440 $1,440 (50074) Technology Allowance $1,200 $1,200 $1,200 $1,200 PERSONNEL SERVICES TOTAL $446,610 $387,516 $387,516 $406,197 Supplies (51200) Operating Supplies $12,375 $14,500 $14,500 $14,500 (51300) Small Tools & Equipment $0 $1,000 $1,000 $1,000 (51400) Promotional Supplies $562 $3,000 $3,000 $3,000 SUPPLIES TOTAL $12,936 $18,500 $18,500 $18,500 Operating Exp (52110) Printing $6,959 $7,000 $7,000 $7,000 (52140) Engraving Services $410 $1,000 $1,000 $1,000 (52160) Advertising $2,523 $6,000 $6,000 $6,000 (52170) Postage $10,178 $12,400 $12,400 $12,400 (52310) Equipment Maintenance $465 $700 $700 $700 (52400) Membership & Dues $725 $700 $700 $700 (52405) Publications $259 $420 $420 $420 (52410) Meetings $0 $1,000 $1,000 $1,000 (52415) Conferences $2,662 $1,600 $1,600 $1,600 (52420) Mileage Reimbursement $0 $200 $200 $200 (52500) Education & Training $135 $1,100 $1,100 $1,100 (53530) Elections $649 $2,000 $2,000 $250,000 OPERATING EXP TOTAL $24,966 $34,120 $34,120 $282,120 Professional Svcs (54900) PS - Other Prof Svcs $6,821 $13,400 $30,248 $13,400 PROFESSIONAL SVCS TOTAL $6,821 $13,400 $30,248 $13,400 TOTAL $491,334 $453,536 $470,384 $720,217DRAFT Page 84 of 346 POSITION FUNDING ALLOCATION DETAIL 100140 - City Clerk Position Name 2027 Allocated FTE Count Administrative Assistant 0.4 City Clerk 1 Administrative Coordinator 0.575 ALLOCATED FTE COUNT 1.975 DRAFTPage 85 of 346 150 - ECONOMIC DEVELOPMENT DIVISION OVERVIEW The Economic Development division assists in the development and advancement of the local business community, and in the general promotion and marketing of the City of Diamond Bar. Among the functions of this division is the facilitation of programs and activities that are designed to enhance business retention and business attraction efforts, and provide business resource assistance for existing and potential businesses. The City Manager's Office leads the Economic Development division with support from the Community Development Department. BUDGET DETAIL 100150 - Economic Development 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $231,988 $221,616 $221,616 $233,159 (50040) Classic Member Retiremnt $40,490 $39,296 $39,296 $40,708 (50042) Classic Member Ual Pmts $25,433 $31,051 $31,051 $35,000 (50044) Pepra Member Retiremnt $660 $787 $787 $812 (50046) Pepra Member Ual Pmts $34 $43 $43 $44 (50050) City Paid Benefits $2,911 $1,386 $1,386 $1,386 (50052) Worker's Compensation $3,598 $3,366 $3,366 $3,906 (50054) Short/Long Term Disability $758 $2,168 $2,168 $2,246 (50056) Medicare Expense $3,577 $3,219 $3,219 $3,257 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 86 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (50060) Benefit Allotment $28,172 $27,384 $27,384 $28,704 (50072) Auto Allowance $1,200 $1,200 $1,200 $1,200 (50074) Technology Allowance $750 $750 $750 $750 PERSONNEL SERVICES TOTAL $339,571 $332,266 $332,266 $351,172 Supplies $2,717 $4,000 $4,000 $4,000 Operating Exp (52110) Printing $3,455 $5,750 $5,750 $5,000 (52160) Advertising $1,325 $5,500 $5,500 $5,500 (52400) Membership & Dues $6,295 $9,435 $9,435 $9,435 (52410) Meetings $395 $6,000 $6,000 $4,000 (52415) Conferences $1,384 $11,000 $11,000 $8,000 (52500) Education & Training $2,207 $4,600 $4,600 $0 (52601) Shop Local Initiative $34,504 $49,080 $49,080 $34,080 OPERATING EXP TOTAL $49,565 $91,365 $91,365 $66,015 Professional Svcs (54900) PS - Other Prof Svcs $13,751 $39,000 $112,500 $22,000 PROFESSIONAL SVCS TOTAL $13,751 $39,000 $112,500 $22,000 Contract Services (55000) Cs - Contract Services $9,901 $24,000 $24,000 $12,000 CONTRACT SERVICES TOTAL $9,901 $24,000 $24,000 $12,000 TOTAL $415,504 $490,631 $564,131 $455,187 POSITION FUNDING ALLOCATION DETAIL 100150 - Economic Development Position Name 2027 Allocated FTE Count Management Analyst 0.1 Community Development Director 0.1 Assistant to the City Manager 0.05 Principal Management Analyst 0.35 City Manager 0.2 Assistant City Manager 0.3 ALLOCATED FTE COUNT 1.1DRAFT Page 87 of 346 210 - FINANCE DEPARTMENT OVERVIEW The Finance Department administers the financial affairs of the City of Diamond Bar. Under the oversight of the Finance Director, the department manages the City's revenues, expenditures, budget, investments, purchasing, accounting, cashiering, and transit activities. The Finance Department processes all financial transactions of the City. Specific activities include accounts payable, cash receipts, payroll, fixed assets, banking services, issuance of Metrolink train and Foothill Transit bus passes, budget preparation and administration, audits, financial reporting, issuance and management of City debt and financial administration of grants. The Finance Department is also responsible for the safety, liquidity and maximization of the yields of the City's financial resources. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 88 of 346 FINANCE ORGANIZATIONAL CHART BUDGET DETAIL 100210 - Finance 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $540,309 $575,608 $575,608 $579,511 (50020) Over Time Wages $3,617 $1,500 $1,500 $1,500 (50040) Classic Member Retiremnt $68,415 $62,574 $62,574 $64,819 (50042) Classic Member Ual Pmts $39,860 $48,066 $48,066 $54,179 (50044) Pepra Member Retiremnt $12,709 $18,418 $18,418 $18,849 (50046) Pepra Member Ual Pmts $814 $996 $996 $1,024 (50050) City Paid Benefits $9,688 $4,984 $4,984 $4,873 (50052) Worker's Compensation $4,968 $4,725 $4,725 $5,446 (50054) Short/Long Term Disability $2,179 $5,494 $5,494 $5,673 (50056) Medicare Expense $8,371 $7,965 $7,965 $8,226 (50060) Benefit Allotment $94,736 $93,818 $93,818 $96,632 (50072) Auto Allowance $2,925 $2,775 $2,775 $2,775 (50074) Technology Allowance $1,170 $1,110 $1,110 $1,110 PERSONNEL SERVICES TOTAL $789,760 $828,033 $828,033 $844,617 Supplies DRAFTPage 89 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (51200) Operating Supplies $3,287 $2,500 $2,500 $2,500 SUPPLIES TOTAL $3,287 $2,500 $2,500 $2,500 Operating Exp (52110) Printing $2,033 $3,200 $3,200 $2,200 (52160) Advertising $0 $1,600 $1,600 $1,600 (52255) Banking Charges $5,357 $6,200 $6,200 $6,200 (52400) Membership & Dues $2,250 $3,025 $3,025 $3,025 (52405) Publications $851 $850 $850 $860 (52410) Meetings $284 $250 $250 $250 (52415) Conferences $5,951 $9,300 $9,300 $9,300 (52420) Mileage Reimbursement $34 $250 $250 $250 (52500) Education & Training $2,184 $5,900 $5,900 $5,900 (53999) Miscellaneous Expenditures $42 $0 $0 $0 OPERATING EXP TOTAL $18,986 $30,575 $30,575 $29,585 Professional Svcs (54010) PS - Accounting & Auditing $67,231 $76,750 $86,750 $92,800 (54900) PS - Other Prof Svcs $20,575 $10,300 $10,300 $10,300 PROFESSIONAL SVCS TOTAL $87,807 $87,050 $97,050 $103,100 TOTAL $899,839 $948,158 $958,158 $979,802 POSITION FUNDING ALLOCATION DETAIL 100210 - Finance Position Name 2027 Allocated FTE Count Senior Accounting Technician 1.225 Accounting Technician 0.28 Finance Director 0.925 Finance Supervisor 0.935 Senior Accountant 0.8 ALLOCATED FTE COUNT 4.165DRAFT Page 90 of 346 220 - HUMAN RESOURCES & RISK MANAGEMENT OVERVIEW The Human Resources and Risk Management Division provides for the management of personnel services and risk management. Primary functions include the development, modification and management of all employee recruitment, classifications, compensation, education/training, employee relations, employee safety, worker’s compensation and general liability claims. The Human Resources and Risk Management staff also act in an advisory capacity to the City Executive team on administrative matters that impact the workforce. HUMAN RESOURCES ORGANIZATIONAL CHART City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 91 of 346 BUDGET DETAIL 100220 - Human Resources & Risk Management 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $250,211 $264,635 $274,635 $299,644 (50040) Classic Member Retiremnt $47,190 $50,017 $50,017 $56,987 (50042) Classic Member Ual Pmts $31,643 $39,471 $39,471 $48,949 (50050) City Paid Benefits $4,678 $4,700 $4,700 $2,109 (50052) Worker's Compensation $2,355 $2,263 $2,263 $2,880 (50054) Short/Long Term Disability $1,107 $2,632 $2,632 $3,000 (50056) Medicare Expense $5,050 $5,266 $5,266 $4,350 (50060) Benefit Allotment $39,164 $44,040 $44,040 $46,440 (50062) Benefits Administration -$3,841 $3,000 $3,000 $3,000 (50072) Auto Allowance $1,320 $1,440 $1,440 $3,000 (50074) Technology Allowance $1,100 $1,200 $1,200 $1,200 (50075) Performance Pay Incentive $90,000 $90,000 $90,000 $90,000 PERSONNEL SERVICES TOTAL $469,976 $508,664 $518,664 $561,559 Supplies (51200) Operating Supplies $1,492 $2,000 $2,000 $2,000 (51300) Small Tools & Equipment $6,452 $8,000 $3,900 $8,000 (51400) Promotional Supplies $1,482 $2,000 $2,000 $2,000 SUPPLIES TOTAL $9,426 $12,000 $7,900 $12,000 Operating Exp (52110) Printing $122 $500 $100 $500 (52160) Advertising $1,760 $5,000 $3,000 $5,000 (52400) Membership & Dues $4,470 $4,475 $4,775 $4,475 (52405) Publications $521 $500 $500 $500 (52410) Meetings $1,357 $3,500 $3,500 $3,500 (52415) Conferences $1,204 $2,000 $0 $2,000 (52420) Mileage Reimbursement $0 $100 $100 $100 (52500) Education & Training $5,227 $10,000 $10,000 $10,000 (52505) Employee Tuition Reimbursement $2,500 $3,000 $1,500 $3,000 (52510) Employment Physicals $9,418 $15,500 $15,500 $15,500 (52515) Miscellaneous Employee Benefit $1,982 $2,500 $2,500 $2,500 (52520) Employee Recognition Program $4,219 $4,000 $4,000 $4,000 OPERATING EXP TOTAL $32,781 $51,075 $45,475 $51,075 Professional Svcs (54900) PS - Other Prof Svcs $44,956 $42,500 $76,310 $42,500 PROFESSIONAL SVCS TOTAL $44,956 $42,500 $76,310 $42,500 TOTAL $557,139 $614,239 $648,349 $667,134DRAFT Page 92 of 346 POSITION FUNDING ALLOCATION DETAIL 100220 - Human Resources & Risk Management Position Name 2027 Allocated FTE Count Human Resources & Risk Director 1 Senior Human Resources Technician 1 ALLOCATED FTE COUNT 2 DRAFTPage 93 of 346 230 - INFORMATION SYSTEMS DEPARTMENT OVERVIEW The Information Systems Division is responsible for the management and enhancement of the City’s information technology including the evaluation, procurement, implementation, and maintenance of computer/network systems and software; including ongoing technical and software support/training to all the departments of the City. The service areas consist of: telephone & mobile systems, network services, application services, desktop services, digital access controls/cameras, and e-government. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 94 of 346 INFORMATION SYSTEMS ORGANIZATIONAL CHART BUDGET DETAIL 100230 - Information Systems 2024 - 25 Actual 2025-26 AdoptedBudget 2025-26 RevisedBudget 2026-27 ProposedBudget Personnel Services (50010) Salaries $565,068 $575,591 $575,591 $576,486 (50020) Over Time Wages $0 $1,500 $1,500 $1,500 (50040) Classic Member Retiremnt $89,573 $90,082 $90,082 $93,315 (50042) Classic Member Ual Pmts $58,139 $71,142 $71,142 $80,189 (50044) Pepra Member Retiremnt $6,443 $6,437 $6,437 $6,641 (50046) Pepra Member Ual Pmts $301 $347 $347 $360 (50050) City Paid Benefits $6,585 $3,977 $3,977 $3,977 (50052) Worker's Compensation $9,242 $8,626 $8,626 $10,010 (50054) Short/Long Term Disability $2,225 $5,541 $5,541 $5,740 (50056) Medicare Expense $8,419 $8,359 $8,359 $8,323 (50060) Benefit Allotment $78,977 $82,917 $82,917 $87,417 (50072) Auto Allowance $3,000 $2,850 $2,850 $2,850 (50074) Technology Allowance $3,600 $3,390 $3,390 $3,390 PERSONNEL SERVICES TOTAL $831,573 $860,759 $860,759 $880,198 Supplies (51200) Operating Supplies $20,183 $28,000 $36,000 $39,000 (51300) Small Tools & Equipment $117 $2,500 $2,500 $2,500 SUPPLIES TOTAL $20,300 $30,500 $38,500 $41,500 Operating Exp (52100) Photocopying $0 $8,000 $8,000 $8,000 (52200) Telephone $98,137 $94,400 $136,400 $142,800 (52310) Equipment Maintenance $0 $3,300 $3,300 $3,500 (52314) Computer Maintenance $575,271 $598,700 $598,700 $639,050 (52400) Membership & Dues $1,953 $2,200 $2,200 $2,200 (52410) Meetings $40 $500 $500 $500 (52415) Conferences $4,604 $6,000 $6,000 $6,000 (52420) Mileage Reimbursement $0 $100 $100 $100DRAFT Page 95 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (52500) Education & Training $0 $1,500 $1,500 $1,500 OPERATING EXP TOTAL $680,005 $714,700 $756,700 $803,650 Professional Svcs (54030) PS - Data Processing Services $45,415 $44,500 $44,500 $44,500 (54900) PS - Other Prof Svcs $47,414 $57,500 $57,500 $57,500 PROFESSIONAL SVCS TOTAL $92,829 $102,000 $102,000 $102,000 Contract Services (55000) Cs - Contract Services $11,838 $33,700 $33,700 $33,700 CONTRACT SERVICES TOTAL $11,838 $33,700 $33,700 $33,700 TOTAL $1,636,544 $1,741,659 $1,791,659 $1,861,048 POSITION FUNDING ALLOCATION DETAIL 100230 - Information Systems Position Name 2027 Allocated FTE Count Network/Systems Administrator 1.875 Network/Systems Technician 0.925 Information Systems Director 0.95 ALLOCATED FTE COUNT 3.75 DRAFTPage 96 of 346 240 - COMMUNITY RELATIONS OVERVIEW The Community Relations Division provides an ongoing program of public information, which is designed to inform and educate community residents and business owners about the City’s activities, programs, and policies. A variety of methods and materials are utilized to disseminate information including the City’s monthly Community Newsletter, which provides current news and information; the City's web site; the local government access cable channel; local advertising; media releases and advisories; special publications; and community events. The Community Relations Division is also responsible for the general marketing and promotion of the City at the local, regional and national levels, and provides assistance in support of economic development activities. The Division is also engaged in the facilitation of programs that recognize the efforts of individuals and organizations that contribute to the enhancement and general well being of the community. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 97 of 346 Community Relations Organizational Chart BUDGET DETAIL 100240 - Community Relations 2024 - 25 Actual 2025-26 AdoptedBudget 2025-26 RevisedBudget 2026-27 ProposedBudget Personnel Services (50010) Salaries $388,801 $367,738 $367,738 $388,205 (50020) Over Time Wages $8,817 $6,000 $6,000 $6,000 (50040) Classic Member Retiremnt $25,169 $35,786 $35,786 $37,069 (50042) Classic Member Ual Pmts $29,279 $28,228 $28,228 $31,818 (50044) Pepra Member Retiremnt $17,453 $13,801 $13,801 $14,634 (50046) Pepra Member Ual Pmts $665 $746 $746 $794 (50050) City Paid Benefits $5,168 $3,805 $3,805 $3,805 (50052) Worker's Compensation $8,440 $6,763 $6,763 $7,886 (50054) Short/Long Term Disability $1,856 $3,596 $3,596 $3,775 (50056) Medicare Expense $6,065 $5,334 $5,334 $5,474 (50060) Benefit Allotment $69,356 $72,648 $72,648 $76,608 (50072) Auto Allowance $1,404 $1,296 $1,296 $1,296 (50074) Technology Allowance $1,080 $1,500 $1,500 $1,500 PERSONNEL SERVICES TOTAL $563,553 $547,241 $547,241 $578,864 Supplies (51200) Operating Supplies $13,205 $21,100 $21,100 $19,600 (51300) Small Tools & Equipment $1,437 $1,200 $1,200 $1,200 (51400) Promotional Supplies $26,374 $32,500 $32,500 $32,500 SUPPLIES TOTAL $41,016 $54,800 $54,800 $53,300 Operating Exp (52110) Printing $93,981 $111,200 $111,200 $111,200 (52130) Photography $1,419 $9,250 $9,250 $9,250 (52160) Advertising $11,907 $13,250 $13,249 $12,500 (52170) Postage $75,000 $55,000 $55,000 $55,000 (52302) Rental/Lease - Real Property $0 $13,800 $13,800 $13,800 (52400) Membership & Dues $2,489 $2,540 $2,540 $2,445 (52405) Publications $0 $500 $500 $500DRAFT Page 98 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (52410) Meetings $0 $1,200 $1,200 $1,200 (52415) Conferences $6,227 $8,000 $8,000 $6,300 (52420) Mileage Reimbursement $0 $200 $200 $200 (52500) Education & Training $1,407 $4,500 $4,500 $4,500 OPERATING EXP TOTAL $192,431 $219,440 $219,439 $216,895 Professional Svcs (54900) PS - Other Prof Svcs $66,379 $156,500 $156,500 $71,400 PROFESSIONAL SVCS TOTAL $66,379 $156,500 $156,500 $71,400 Contract Services (55000) Cs - Contract Services $17,569 $3,500 $3,500 $3,500 CONTRACT SERVICES TOTAL $17,569 $3,500 $3,500 $3,500 TOTAL $880,948 $981,481 $981,480 $923,959 POSITION FUNDING ALLOCATION DETAIL 100240 - Community Relations Position Name 2027 Allocated FTE Count Community Relations Coordinator 0.85 Community Relations Manager 0.7 Media Specialist 1.75 ALLOCATED FTE COUNT 3.3 DRAFTPage 99 of 346 620 - CIVIC CENTER OVERVIEW The Civic Center Division has been established to account for expenditures related to the operation of the City Hall building. This includes the budget for the utilities, maintenance and salaries related to both City Hall and the County Library. BUDGET DETAIL 100620 - Civic Center 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $80,653 $121,994 $121,994 $125,349 (50020) Over Time Wages $10 $2,500 $2,500 $2,500 (50040) Classic Member Retiremnt $12,973 $15,433 $15,433 $15,987 (50042) Classic Member Ual Pmts $10,105 $12,180 $12,180 $13,729 (50044) Pepra Member Retiremnt $842 $3,055 $3,055 $3,151 (50046) Pepra Member Ual Pmts $138 $165 $165 $171 (50050) City Paid Benefits $812 $1,163 $1,163 $1,163 (50052) Worker's Compensation $3,568 $3,302 $3,302 $3,818 (50054) Short/Long Term Disability $331 $1,191 $1,191 $1,234 (50056) Medicare Expense $1,215 $1,776 $1,776 $1,789 (50060) Benefit Allotment $11,415 $23,166 $23,166 $24,426 (50072) Auto Allowance $222 $222 $222 $222 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 100 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (50074) Technology Allowance $120 $120 $120 $120 PERSONNEL SERVICES TOTAL $122,402 $186,267 $186,267 $193,659 Supplies (51200) Operating Supplies $45,048 $51,000 $51,000 $55,000 (51300) Small Tools & Equipment $1,586 $2,000 $2,000 $2,000 SUPPLIES TOTAL $46,633 $53,000 $53,000 $57,000 Operating Exp (52210) Electric Utility Expenditure $202,856 $200,000 $200,000 $220,000 (52215) Gas Utility Expenditure $9,511 $10,000 $10,000 $10,000 (52220) Water Utility Expenditure $14,524 $15,000 $15,000 $15,000 (52300) Rental/Lease - Equipmnt $0 $2,000 $2,000 $2,000 (52320) Maint Of Grounds/Buildings $293,094 $319,600 $335,100 $333,100 (52400) Membership & Dues $31,923 $45,000 $45,000 $35,000 OPERATING EXP TOTAL $551,908 $591,600 $607,100 $615,100 Capital Outlay Exp (56120) Furniture & Fixtures Exp $6,610 $2,000 $2,000 $2,000 CAPITAL OUTLAY EXP TOTAL $6,610 $2,000 $2,000 $2,000 TOTAL $727,554 $832,867 $848,367 $867,759 POSITION FUNDING ALLOCATION DETAIL 100620 - Civic Center Position Name 2027 Allocated FTE Count Public Works Director/City Engineer 0.05 Public Works Manager/Assistant City Engineer 0.05 Senior Maintenance Worker 0.4 Facilities Maintenance Supervisor 0.5 Parks & Maintenance Superintendent 0.05 ALLOCATED FTE COUNT 1.05DRAFT Page 101 of 346 PUBLIC SAFETY DIVISION OVERVIEW The City Manager's Office is responsible for the overall coordination of the City's Public Safety division, with support from the Public Works Department. Public Safety subdivisions are comprised of Law Enforcement (includes Los Angeles County Sheriff's Dept, Crossing Guard, and Parking Citations Administration), Emergency Preparedness, Animal Control, Fire Protection, and Volunteer Programs. Below is the combined budget for Public Safety. Budgeted expenditure detail for each of the subdivisions are shown on the following pages. PUBLIC SAFETY DIVISION BUDGET Public Safety 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Supplies (51200) Operating Supplies $12,227 $28,000 $28,000 $28,000 (51300) Small Tools & Equipment $2,000 $2,500 $3,500 $3,500 SUPPLIES TOTAL $14,227 $30,500 $31,500 $31,500 Operating Exp (52200) Telephone $10,478 $10,500 $11,500 $11,500 (52210) Electric Utility Expenditure $0 $500 $500 $500 (52300) Rental/Lease - Equipmnt $945 $1,000 $1,000 $1,000 (52302) Rental/Lease - Real Property $400 $400 $400 $400 (52310) Equipment Maintenance $6,011 $8,000 $9,500 $9,500 (52400) Membership & Dues $3,478 $3,860 $3,860 $4,760 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 102 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (52410) Meetings $159 $3,000 $3,000 $3,000 (52500) Education & Training $0 $2,000 $2,000 $2,000 (53500) Criminal Apprehension Reward $0 $2,500 $2,500 $1,500 (53510) Public Safety Outreach $5,519 $12,500 $12,500 $10,000 OPERATING EXP TOTAL $26,990 $44,260 $46,760 $44,160 Professional Svcs (54900) PS - Other Prof Svcs $177,923 $178,500 $178,500 $8,500 PROFESSIONAL SVCS TOTAL $177,923 $178,500 $178,500 $8,500 Contract Services (55400) Cs - Sheriff's Department $7,984,309 $8,603,590 $8,603,590 $8,888,490 (55402) Cs-Sheriff - Special Events $177,817 $212,000 $212,000 $192,000 (55404) Cs - Animal Control $463,359 $556,800 $556,800 $572,300 (55406) Cs - Fire Department $7,359 $8,000 $8,000 $8,000 (55408) Cs - Parking Citation Admin $24,253 $32,500 $32,500 $32,500 (55410) Cs - Wild Animal Control $323 $7,500 $7,500 $7,500 (55412) Cs - Crossing Guard Services $252,801 $289,800 $289,800 $289,800 CONTRACT SERVICES TOTAL $8,910,221 $9,710,190 $9,710,190 $9,990,590 TOTAL $9,129,361 $9,963,450 $9,966,950 $10,074,750 DRAFTPage 103 of 346 310 - LAW ENFORCEMENT OVERVIEW The City of Diamond Bar contracts with the Los Angeles County Sheriff's Department for law enforcement services. General law enforcement provides an assortment of deputies to provide law enforcement services including crime prevention and traffic enforcement, specialized suppression patrols and undercover operations, neighborhood watch and community relations, and the general enforcement of laws. Additionally, the law enforcement budget includes funds for additional as-needed special operations, as-needed aero bureau patrols, the City’s fingerprint program, and funding for the City’s Report for Reward program. This division also includes contract services for crossing guards and the administration of the City's parking citations. With the passage of AB408, Cities are now required to issue and collect their own parking citations. The City is currently under contract with DataTicket, Inc. for the administration of parking citations. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 104 of 346 LOS ANGELES COUNTY SHERIFF'S DEPARTMENT CONTRACT TYPE OF SERVICE Quantity General Law Units: One-Man 56 Hour 10 One-Man 40 Hour 1 One-Man 40 Hour Non-Relief (Special Problems) 5 Community Service Assistant w/Vehicle 1 Special Investigations As Requested Helicopter Patrol As Required Fingerprint Program As Required BUDGET DETAIL 100310 - Law Enforcement 2024 - 25 Actual 2025-26 AdoptedBudget 2025-26 RevisedBudget 2026-27 ProposedBudget Supplies (51200) Operating Supplies $1,678 $4,000 $4,000 $4,000 (51300) Small Tools & Equipment $2,000 $2,500 $3,500 $3,500 SUPPLIES TOTAL $3,678 $6,500 $7,500 $7,500 Operating Exp (52310) Equipment Maintenance $1,769 $2,500 $4,000 $4,000 (53500) Criminal Apprehension Reward $0 $2,500 $2,500 $1,500 (53510) Public Safety Outreach $5,519 $5,000 $5,000 $2,500 OPERATING EXP TOTAL $7,287 $10,000 $11,500 $8,000 Professional Svcs $165,000 $170,000 $170,000 $0 Contract Services (55400) Cs - Sheriff's Department $7,984,309 $8,603,590 $8,603,590 $8,888,490 (55402) Cs-Sheriff - Special Events $177,817 $212,000 $212,000 $192,000 (55408) Cs - Parking Citation Admin $24,253 $32,500 $32,500 $32,500 (55412) Cs - Crossing Guard Services $252,801 $289,800 $289,800 $289,800 CONTRACT SERVICES TOTAL $8,439,180 $9,137,890 $9,137,890 $9,402,790 TOTAL $8,615,145 $9,324,390 $9,326,890 $9,418,290DRAFT Page 105 of 346 320 - VOLUNTEER PROGRAM OVERVIEW The Community Volunteer Patrol Program was established in FY 94/95. This program is coordinated by the Los Angeles County Sheriff's Department and provides general support to law enforcement personnel. Diamond Bar Community Volunteer Patrol members routinely patrol the community and are responsible for reporting any suspicious activity and/or problems to the Sheriff's Department. In addition to their patrol activities, other assignments performed by the Community Volunteer Patrol include vacation and business security checks, park and special event security, graffiti watch, community relations, and other non-hazardous duties. BUDGET DETAIL 100320 - Volunteer Patrol 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Supplies (51200) Operating Supplies $22 $1,000 $1,000 $1,000 SUPPLIES TOTAL $22 $1,000 $1,000 $1,000 Operating Exp (52410) Meetings $159 $3,000 $3,000 $3,000 OPERATING EXP TOTAL $159 $3,000 $3,000 $3,000 TOTAL $181 $4,000 $4,000 $4,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 106 of 346 330 - FIRE PROTECTION OVERVIEW The City is a part of the Consolidated Fire Protection District. The district provides fire and emergency medical services. Upon incorporation, the City became responsible for fire protection within the City boundaries, therefore the City assumed wildland fire protection. This has required additional resources to be used by the Consolidated Fire Protection District. It is a responsibility of the City to pay annually for these added costs. BUDGET DETAIL 100330 - Fire Protection 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Contract Services (55406) Cs - Fire Department $7,359 $8,000 $8,000 $8,000 CONTRACT SERVICES TOTAL $7,359 $8,000 $8,000 $8,000 TOTAL $7,359 $8,000 $8,000 $8,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 107 of 346 340 - ANIMAL CONTROL OVERVIEW Animal Control provides for the care, protection, and control of animals that stray from their homes or are abused by their owners. This service, currently under contract with the Inland Valley Humane Society, includes enforcement of leash laws and the provision of a shelter for homeless animals. In addition to the services rendered by the Humane Society, the City has been called upon to assist in the control of coyotes within the City. Additional funding has been included to fund these activities. BUDGET DETAIL 100340 - Animal Control 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Operating Exp $0 $7,500 $7,500 $7,500 Contract Services (55404) Cs - Animal Control $463,359 $556,800 $556,800 $572,300 (55410) Cs - Wild Animal Control $323 $7,500 $7,500 $7,500 CONTRACT SERVICES TOTAL $463,682 $564,300 $564,300 $579,800 TOTAL $463,682 $571,800 $571,800 $587,300 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 108 of 346 350 - EMERGENCY PREPAREDNESS OVERVIEW The preservation of life and property is an inherent responsibility of local, state and federal governments. The City of Diamond Bar has prepared several planning and response documents, which serve as the basis for the City's emergency organization and emergency operations. The primary objective is to enhance the overall capability of government to respond to emergencies. This is accomplished by incorporating the policies, principles, concepts and procedures contained within the City’s emergency plans into an efficient organization capable of responding adequately in the face of any disaster. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 109 of 346 BUDGET DETAIL 100350 - Emergency Preparedness 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Supplies (51200) Operating Supplies $10,527 $23,000 $23,000 $23,000 SUPPLIES TOTAL $10,527 $23,000 $23,000 $23,000 Operating Exp (52200) Telephone $10,478 $10,500 $11,500 $11,500 (52210) Electric Utility Expenditure $0 $500 $500 $500 (52300) Rental/Lease - Equipmnt $945 $1,000 $1,000 $1,000 (52302) Rental/Lease - Real Property $400 $400 $400 $400 (52310) Equipment Maintenance $4,242 $5,500 $5,500 $5,500 (52400) Membership & Dues $3,478 $3,860 $3,860 $4,760 (52500) Education & Training $0 $2,000 $2,000 $2,000 OPERATING EXP TOTAL $19,543 $23,760 $24,760 $25,660 Professional Svcs (54900) PS - Other Prof Svcs $12,923 $8,500 $8,500 $8,500 PROFESSIONAL SVCS TOTAL $12,923 $8,500 $8,500 $8,500 TOTAL $42,993 $55,260 $56,260 $57,160 DRAFTPage 110 of 346 COMMUNITY DEVELOPMENT DEPARTMENT OVERVIEW The Community Development Department is comprised of three Divisions: Planning, Building and Safety, Neighborhood Improvement. The Department implements regulations and policies intended to foster the orderly growth and well-being of the community. With a strong emphasis on upholding construction standards and preserving the quality of life for residents and businesses, the department is dedicated to shaping Diamond Bar's future as set forth in the General Plan. In addition to planning, permit services and code enforcement functions, the Department also oversees business licensing and manages the Community Development Block Grant (CDBG) program. Below is the combined budget for the department. Budgeted expenditure details for each division is shown in the following pages. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 111 of 346 COMMUNITY DEVELOPMENT ORGANIZATIONAL CHART DRAFTPage 112 of 346 COMMUNITY DEVELOPMENT DEPARTMENT BUDGET Community Development Department Summary 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services $1,696,872 $1,827,782 $1,728,232 $1,951,411 Supplies $2,500 $4,600 $6,700 $4,600 Operating Exp $70,369 $76,695 $73,695 $81,195 Contract Services $776,883 $685,500 $994,500 $1,219,570 TOTAL $2,546,623 $2,594,577 $2,803,127 $3,256,776 DRAFTPage 113 of 346 410 - PLANNING DIVISION OVERVIEW The Planning Division is responsible for the functions related to current and long-term (“advance”) planning, and administers the Community Development Block Grant Program. The Planning Division prepares and updates the City’s General Plan to guide Diamond Bar’s long- term growth and preservation of the community’s quality of life. The Division administers and updates the zoning and subdivision ordinances, which are the primary tools used to implement the General Plans land use and development goals, objectives and policies. The planners provide information and assistance to the public by explaining the City’s zoning regulations, and reviewing all land use, development and business license applications, and performing inspections to ensure compliance with regulations and conditions of approval. For projects requiring Planning Commission and City Council review, the Planning Division serves as those bodies’ technical staff, and provides recommendations based on analysis of environmental, land use compatibility and design factors. The Planning Division also supports the economic development efforts of the City. It updates and maintains records for the general public and coordinates projects and programs with other governmental agencies. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 114 of 346 BUDGET DETAIL 100410 - Planning 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $616,530 $585,841 $585,841 $631,079 (50020) Over Time Wages $785 $5,000 $5,000 $5,000 (50040) Classic Member Retiremnt $89,367 $92,902 $92,902 $96,235 (50042) Classic Member Ual Pmts $60,011 $73,335 $73,335 $82,661 (50044) Pepra Member Retiremnt $8,116 $6,644 $6,644 $7,192 (50046) Pepra Member Ual Pmts $448 $358 $358 $390 (50050) City Paid Benefits $8,207 $4,713 $4,713 $4,713 (50052) Worker's Compensation $11,928 $10,350 $10,350 $12,113 (50054) Short/Long Term Disability $2,593 $5,712 $5,712 $5,960 (50056) Medicare Expense $9,567 $8,507 $8,507 $8,642 (50060) Benefit Allotment $92,455 $96,636 $96,636 $101,916 (50072) Auto Allowance $2,940 $2,940 $2,940 $2,940 (50074) Technology Allowance $1,800 $1,800 $1,800 $1,800 PERSONNEL SERVICES TOTAL $904,747 $894,738 $894,738 $960,641 Supplies (51200) Operating Supplies $1,227 $1,200 $3,300 $1,200 SUPPLIES TOTAL $1,227 $1,200 $3,300 $1,200 Operating Exp (52160) Advertising $3,001 $3,000 $5,000 $3,000 (52400) Membership & Dues $2,201 $2,000 $2,000 $2,100 (52410) Meetings $76 $400 $400 $400 (52415) Conferences $3,365 $2,600 $2,600 $7,000 (52420) Mileage Reimbursement $0 $300 $300 $300 (52500) Education & Training $0 $600 $600 $600 (52525) Commissioner Compensation $3,380 $5,000 $4,000 $5,000 OPERATING EXP TOTAL $12,022 $13,900 $14,900 $18,400 TOTAL $917,996 $909,838 $912,938 $980,241 POSITION FUNDING ALLOCATION DETAIL 100410 - Planning Position Name 2027 Allocated FTE Count Associate Planner 1 Senior Planner 1 Community Development Director 0.5 Planning Manager 1 Administrative Coordinator 0.9 ALLOCATED FTE COUNT 4.4DRAFT Page 115 of 346 420 - BUILDING & SAFETY DIVISION OVERVIEW The Building and Safety Division is responsible for the protection of public health and safety through the enforcement of Building Codes and other related codes. This Division provides for Building and Safety plan check, permit issuance, and inspection services. Much of the plan check and inspections are provided through contract services. BUDGET DETAIL 100420 - Building & Safety 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $222,180 $288,864 $238,864 $304,201 (50020) Over Time Wages $14,260 $250 $700 $250 (50040) Classic Member Retiremnt $24,029 $24,930 $24,930 $25,818 (50042) Classic Member Ual Pmts $16,212 $19,521 $19,521 $22,004 (50044) Pepra Member Retiremnt $6,962 $12,472 $12,472 $13,477 (50046) Pepra Member Ual Pmts $598 $672 $672 $729 (50050) City Paid Benefits $4,849 $3,534 $3,534 $3,534 (50052) Worker's Compensation $3,081 $2,817 $2,817 $3,335 (50054) Short/Long Term Disability $1,184 $2,845 $2,845 $3,024 (50056) Medicare Expense $3,558 $4,190 $4,190 $4,385 (50060) Benefit Allotment $56,753 $68,850 $68,850 $72,630 (50072) Auto Allowance $450 $450 $450 $450 (50074) Technology Allowance $180 $180 $180 $180 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 116 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget PERSONNEL SERVICES TOTAL $354,296 $429,575 $380,025 $454,017 Supplies (51200) Operating Supplies $201 $1,200 $1,200 $1,200 SUPPLIES TOTAL $201 $1,200 $1,200 $1,200 Operating Exp (52255) Banking Charges $45,264 $43,000 $43,000 $43,000 (52302) Rental/Lease - Real Property $10,024 $11,200 $11,200 $11,200 (52500) Education & Training $0 $900 $900 $900 OPERATING EXP TOTAL $55,288 $55,100 $55,100 $55,100 Contract Services (55100) Cs - Building & Safety $729,272 $620,000 $925,000 $1,149,870 CONTRACT SERVICES TOTAL $729,272 $620,000 $925,000 $1,149,870 TOTAL $1,139,057 $1,105,875 $1,361,325 $1,660,187 POSITION FUNDING ALLOCATION DETAIL 100420 - Building & Safety Position Name 2027 Allocated FTE Count Permit Services Coordinator 1 Community Development Director 0.15 Permit Technician 2 ALLOCATED FTE COUNT 3.15 DRAFTPage 117 of 346 430 - NEIGHBORHOOD IMPROVEMENT DIVISION OVERVIEW The City’s Neighborhood Improvement Officers work proactively to investigate Municipal Code violations and in response to complaints filed by concerned residents, business operators or property owners. The Diamond Bar Municipal Code is based on high standards set by the residents and business owners to ensure an attractive and well-maintained community. It is the responsibility of the Neighborhood Improvement Officers to make sure the community conforms to the standards set by the code. BUDGET DETAIL 100430 - Neighborhood Improvement 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $303,339 $352,650 $302,650 $377,572 (50020) Over Time Wages $1,256 $5,000 $5,000 $5,000 (50040) Classic Member Retiremnt $16,280 $17,073 $17,073 $17,686 (50042) Classic Member Ual Pmts $11,178 $13,475 $13,475 $15,189 (50044) Pepra Member Retiremnt $16,777 $20,915 $20,915 $21,578 (50046) Pepra Member Ual Pmts $979 $1,130 $1,130 $1,170 (50050) City Paid Benefits $5,457 $3,783 $3,783 $3,783 (50052) Worker's Compensation $7,129 $6,529 $6,529 $7,582 (50054) Short/Long Term Disability $1,454 $3,494 $3,494 $3,620 (50056) Medicare Expense $5,339 $5,116 $5,116 $5,249 (50060) Benefit Allotment $67,590 $73,254 $73,254 $77,274 (50072) Auto Allowance $750 $750 $750 $750 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 118 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (50074) Technology Allowance $300 $300 $300 $300 PERSONNEL SERVICES TOTAL $437,829 $503,469 $453,469 $536,753 Supplies (51200) Operating Supplies $999 $1,200 $1,200 $1,200 (51300) Small Tools & Equipment $72 $1,000 $1,000 $1,000 SUPPLIES TOTAL $1,071 $2,200 $2,200 $2,200 Operating Exp (52110) Printing $525 $1,600 $1,600 $1,600 (52400) Membership & Dues $610 $945 $945 $945 (52410) Meetings $0 $450 $450 $450 (52415) Conferences $1,477 $4,000 $0 $4,000 (52420) Mileage Reimbursement $0 $100 $100 $100 (52500) Education & Training $447 $600 $600 $600 OPERATING EXP TOTAL $3,058 $7,695 $3,695 $7,695 Contract Services (55130) CS-Short Term Rental Monitoring $0 $5,500 $5,500 $5,700 (55110) Cs-Code Enforcement $6,686 $10,000 $10,000 $10,000 (55120) Cs-Property Abatement $4,025 $10,000 $10,000 $10,000 (55540) Cs - Graffiti Removal $36,900 $40,000 $44,000 $44,000 CONTRACT SERVICES TOTAL $47,611 $65,500 $69,500 $69,700 TOTAL $489,569 $578,864 $528,864 $616,348 POSITION FUNDING ALLOCATION DETAIL 100430 - Neighborhood Improvement Position Name 2027 Allocated FTE Count Administrative Assistant 0.3 Neighborhood Improvement Officer 0.9 Senior Neighborhood Improvement Officer 1.8 Community Development Director 0.25 Administrative Coordinator 0.1 ALLOCATED FTE COUNT 3.35DRAFT Page 119 of 346 PARKS & RECREATION OVERVIEW The Parks & Recreation Department administers the recreation program which includes activities and events that strengthen the community's fabric, health and well-being, economic base, and security. This includes community events, enrichment programs, athletics, excursions, activities, and facilities for residents of all ages. Diamond Bar residents have long valued neighborhood, community and regional parks, and open natural spaces where they can relax, walk, meditate, play, enjoy family time, and seek renewal. Below is the combined budget for the Parks & Recreation department which includes expenditures for Recreation Programs and the Diamond Bar Center. These divisions are also separately shown on the following pages. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 120 of 346 PARKS & RECREATION ORGANIZATIONAL CHART DRAFTPage 121 of 346 PARKS & RECREATION DEPARTMENT BUDGET Parks & Rec Department Summary 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services $2,766,118 $2,944,890 $2,974,890 $3,064,148 Supplies $150,102 $185,950 $185,450 $163,000 Operating Exp $375,188 $490,948 $490,948 $509,948 Professional Svcs $42,238 $22,600 $14,600 $23,850 Contract Services $659,898 $854,450 $884,450 $757,550 Capital Outlay Exp $0 $25,000 $25,000 $30,000 Misc Expenditures $0 $0 $6,000 $7,000 TOTAL $3,993,545 $4,523,838 $4,581,338 $4,555,496 DRAFTPage 122 of 346 510 - DIAMOND BAR CENTER OVERVIEW The extraordinary Diamond Bar Center, located in picturesque Summitridge Park, is owned and operated by the City of Diamond Bar. The Center features impressive banquet and meeting rooms with breathtaking views of the San Gabriel Valley. The 22,500 square foot facility is the perfect setting for wedding receptions, formal dinner gatherings, corporate seminars, training or meetings, and a multitude of other community events. Designed in the modern Craftsman style architecture theme, the Center is equipped with state-of-the-art multimedia capabilities and a full catering kitchen. Colorful gardens, a meandering stream and look-out points enjoy the beautiful vistas that surround the Center to make this exceptional facility the perfect choice for your next special event. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 123 of 346 BUDGET DETAIL 100510 - Diamond Bar Center 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $345,344 $384,813 $384,813 $405,785 (50020) Over Time Wages $758 $2,000 $2,000 $1,500 (50030) Part-Time Wages $448,495 $450,000 $450,000 $450,000 (50040) Classic Member Retiremnt $45,096 $47,814 $47,814 $50,558 (50042) Classic Member Ual Pmts $31,269 $37,714 $37,714 $43,397 (50044) Pepra Member Retiremnt $7,882 $9,802 $9,802 $10,445 (50046) Pepra Member Ual Pmts $428 $528 $528 $566 (50050) City Paid Benefits $3,803 $3,601 $3,601 $3,601 (50052) Worker's Compensation $9,459 $8,828 $8,828 $10,443 (50054) Short/Long Term Disability $1,432 $3,728 $3,728 $3,959 (50056) Medicare Expense $11,726 $10,890 $10,890 $5,740 (50060) Benefit Allotment $59,720 $68,853 $68,853 $72,603 (50072) Auto Allowance $1,722 $3,444 $3,444 $1,722 (50074) Technology Allowance $1,050 $2,100 $2,100 $1,050 PERSONNEL SERVICES TOTAL $968,185 $1,034,115 $1,034,115 $1,061,369 Supplies (51200) Operating Supplies $14,345 $14,400 $14,400 $14,400 (51210) Janitorial Supplies $29,007 $30,000 $30,000 $30,000 (51300) Small Tools & Equipment $15,114 $2,500 $2,500 $2,500 SUPPLIES TOTAL $58,466 $46,900 $46,900 $46,900 Operating Exp (52110) Printing $11,247 $13,000 $13,000 $11,000 (52160) Advertising $31,359 $36,500 $36,500 $37,500 (52210) Electric Utility Expenditure $92,098 $120,000 $120,000 $132,000 (52215) Gas Utility Expenditure $10,961 $9,000 $9,000 $9,000 (52220) Water Utility Expenditure $6,785 $6,500 $6,500 $6,500 (52300) Rental/Lease - Equipmnt $0 $2,000 $2,000 $2,000 (52304) Rental/Lease - Exhibit Space $6,263 $8,000 $8,000 $9,000 (52310) Equipment Maintenance $30,848 $51,000 $51,000 $54,500 (52320) Maint Of Grounds/Buildings $75,698 $92,000 $92,000 $92,000 (52415) Conferences $2,256 $3,250 $3,250 $2,500 OPERATING EXP TOTAL $267,516 $341,250 $341,250 $356,000 Professional Svcs (54900) PS - Other Prof Svcs $15,246 $21,850 $13,850 $23,100 PROFESSIONAL SVCS TOTAL $15,246 $21,850 $13,850 $23,100 Contract Services (55300) Cs - Special Events $2,777 $7,000 $7,000 $7,750 (55330) Cs - Security $48,815 $75,000 $75,000 $75,000 (55505) Cs - Pw Contract Services $191,896 $209,500 $209,500 $209,000 CONTRACT SERVICES TOTAL $243,489 $291,500 $291,500 $291,750 Capital Outlay Exp (56116) Equipment $0 $25,000 $25,000 $30,000 CAPITAL OUTLAY EXP TOTAL $0 $25,000 $25,000 $30,000DRAFT Page 124 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget TOTAL $1,552,902 $1,760,615 $1,752,615 $1,809,119 POSITION ALLOCATION FUNDING DETAIL 100510 - Diamond Bar Center Position Name 2027 Allocated FTE Count Parks & Maintenance Superintendent 0.05 Recreation Coordinator 0.25 Parks & Recreation Director 0.5 Public Works Manager/Assistant City Engineer 0.05 Recreation Superintendent 0.25 Facilities Maintenance Supervisor 0.475 Public Works Director/City Engineer 0.05 Recreation Supervisor 0.3 Recreation Coordinator-Seniors 0.55 Recreation Coordinator-DBC 0.25 Senior Maintenance Worker 0.4 ALLOCATED FTE COUNT 3.125 DRAFTPage 125 of 346 520 - RECREATION OVERVIEW The Parks and Recreation Department administers the recreation program which inclues activities and events that strengthen the community's fabric, health and well-being, economic base, and security. This includes community events, enrichment programs, athletics, excursions, activities, and facilities for residents of all ages. Diamond Bar residents have long valued neighborhood, community and regional parks, and open natural spaces where they can relax, walk, meditate, play, enjoy family time, and seek renewal. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 126 of 346 BUDGET DETAIL 100520 - Recreation 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $946,461 $967,298 $997,298 $1,070,042 (50020) Over Time Wages $2,408 $7,050 $7,050 $4,245 (50030) Part-Time Wages $346,223 $406,125 $406,125 $364,837 (50040) Classic Member Retiremnt $99,805 $101,079 $101,079 $98,806 (50042) Classic Member Ual Pmts $66,392 $79,689 $79,689 $84,722 (50044) Pepra Member Retiremnt $35,448 $38,326 $38,326 $46,913 (50046) Pepra Member Ual Pmts $1,711 $2,063 $2,063 $2,333 (50050) City Paid Benefits $12,381 $12,541 $12,541 $12,840 (50052) Worker's Compensation $23,434 $21,875 $21,875 $26,732 (50054) Short/Long Term Disability $4,463 $10,053 $10,053 $11,030 (50056) Medicare Expense $20,461 $16,520 $16,520 $16,297 (50060) Benefit Allotment $235,228 $241,016 $241,016 $260,412 (50072) Auto Allowance $1,500 $3,000 $3,000 $1,500 (50074) Technology Allowance $2,020 $4,140 $4,140 $2,070 PERSONNEL SERVICES TOTAL $1,797,933 $1,910,775 $1,940,775 $2,002,779 Supplies (51200) Operating Supplies $90,819 $128,900 $128,400 $105,950 (51300) Small Tools & Equipment $817 $10,150 $10,150 $10,150 SUPPLIES TOTAL $91,636 $139,050 $138,550 $116,100 Operating Exp (52110) Printing $16,422 $31,548 $31,548 $23,548 (52160) Advertising $329 $6,000 $6,000 $4,000 (52255) Banking Charges $2,273 $2,500 $2,500 $2,900 (52300) Rental/Lease - Equipmnt $2,789 $0 $0 $0 (52302) Rental/Lease - Real Property $55,790 $68,000 $68,000 $82,250 (52400) Membership & Dues $2,935 $4,050 $4,050 $3,400 (52405) Publications $0 $100 $100 $100 (52410) Meetings $494 $1,000 $1,000 $750 (52415) Conferences $5,878 $7,500 $7,500 $7,500 (52420) Mileage Reimbursement $4 $500 $500 $500 (52500) Education & Training $3,216 $6,000 $6,000 $6,500 (52525) Commissioner Compensation $855 $1,500 $1,500 $1,500 (53520) Admissions - Youth Activities $16,687 $21,000 $21,000 $21,000 OPERATING EXP TOTAL $107,673 $149,698 $149,698 $153,948 Professional Svcs (54900) PS - Other Prof Svcs $26,992 $750 $750 $750 PROFESSIONAL SVCS TOTAL $26,992 $750 $750 $750 Contract Services (55300) Cs - Special Events $180,925 $251,800 $251,800 $118,450 (55305) Cs - Athletic Programs $5,304 $6,000 $6,000 $6,000 (55310) Cs - Senior Programs $32,165 $48,350 $48,350 $49,100 (55315) Cs - Youth Programs $4,370 $10,000 $10,000 $10,750 (55320) Cs - Contract Classes $174,446 $224,000 $254,000 $260,000 (55330) Cs - Security $2,169 $2,800 $2,800 $1,500 (55402) Cs-Sheriff - Special Events $17,029 $20,000 $20,000 $20,000DRAFT Page 127 of 346 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget CONTRACT SERVICES TOTAL $416,409 $562,950 $592,950 $465,800 Misc Expenditures $0 $0 $6,000 $7,000 TOTAL $2,440,643 $2,763,223 $2,828,723 $2,746,377 POSITION ALLOCATION FUNDING DETAIL 100520 - Recreation Position Name 2027 Allocated FTE Count Recreation Coordinator 2.75 Parks & Recreation Director 0.5 Recreation Coordinator-Sports 1 Recreation Superintendent 0.75 Recreation Supervisor 1.7 Rec Specialist PT (30 hr/wk) NEW 26-27 0.75 Recreation Coordinator-DBC2 1 Recreation Coordinator-Seniors 0.45 Recreation Coordinator-DBC 0.75 Senior Maintenance Worker 0.5 Administrative Coordinator 1.1 ALLOCATED FTE COUNT 11.25 DRAFTPage 128 of 346 PUBLIC WORKS DEPARTMENT OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). The Department budget consists of Public Works Administration, Engineering, Road Maintenance, Parks and Facilities Maintenance, and Landscape Maintenance. Public Works is also actively involved in representing community’s interests on significant regional issues, such as storm water and transportation. Below is the combined budget for the Public Works department which includes expenditures for Public Works Administration, Engineering, Civic Center, Parks & Facilities Maintenance, Landscape Maintenance, and Road Maintenance divisions. These divisions are also separately shown on the following pages. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 129 of 346 PUBLIC WORKS ORGANIZATIONAL CHART DRAFTPage 130 of 346 PUBLIC WORKS DEPARTMENT BUDGET Public Works Department Summary 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services $2,083,764 $2,300,946 $2,239,098 $2,401,852 Supplies $127,909 $194,200 $194,200 $172,700 Operating Exp $1,419,732 $1,377,685 $1,393,185 $1,353,535 Professional Svcs $167,188 $329,800 $374,800 $305,300 Contract Services $2,012,019 $2,322,300 $2,415,300 $2,281,060 Capital Outlay Exp $49,012 $42,000 $42,000 $44,000 TOTAL $5,859,624 $6,566,931 $6,658,583 $6,558,447 DRAFTPage 131 of 346 610 - PUBLIC WORKS ADMINISTRATION DIVISION OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). The Department budget consists of Public Works Administration, Engineering, Road Maintenance, Parks and Facilities Maintenance, and Landscape Maintenance. Public Works is also actively involved in representing community’s interests on significant regional issues, such as storm water and transportation. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 132 of 346 BUDGET DETAIL 100610 - Public Works Administration 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $399,990 $374,116 $359,116 $385,618 (50020) Over Time Wages $215 $500 $500 $500 (50040) Classic Member Retiremnt $51,432 $49,127 $49,127 $50,890 (50042) Classic Member Ual Pmts $31,992 $38,780 $38,780 $43,711 (50044) Pepra Member Retiremnt $9,895 $8,801 $8,801 $8,883 (50046) Pepra Member Ual Pmts $413 $477 $477 $484 (50050) City Paid Benefits $6,304 $2,842 $2,842 $2,842 (50052) Worker's Compensation $7,281 $6,717 $6,717 $7,742 (50054) Short/Long Term Disability $1,716 $3,682 $3,682 $3,790 (50056) Medicare Expense $5,868 $5,439 $5,439 $5,495 (50060) Benefit Allotment $63,101 $56,580 $56,580 $59,670 (50072) Auto Allowance $2,109 $2,109 $2,109 $2,109 (50074) Technology Allowance $1,140 $1,800 $1,800 $1,140 PERSONNEL SERVICES TOTAL $581,456 $550,970 $535,970 $572,874 Supplies (51200) Operating Supplies $1,569 $6,000 $6,000 $6,000 (51300) Small Tools & Equipment $1,339 $1,500 $1,500 $1,500 SUPPLIES TOTAL $2,908 $7,500 $7,500 $7,500 Operating Exp (52110) Printing $909 $2,000 $2,000 $2,000 (52160) Advertising $1,405 $1,500 $1,500 $1,500 (52400) Membership & Dues $1,067 $3,385 $3,385 $3,385 (52405) Publications $1,268 $1,500 $1,500 $1,500 (52410) Meetings $1,420 $1,000 $1,000 $1,000 (52415) Conferences $1,843 $9,500 $9,500 $9,500 (52420) Mileage Reimbursement $257 $500 $500 $500 (52500) Education & Training $775 $5,000 $5,000 $5,000 (52525) Commissioner Compensation $720 $1,350 $1,350 $1,350 (53999) Miscellaneous Expenditures $40 $0 $0 $0 OPERATING EXP TOTAL $9,703 $25,735 $25,735 $25,735 Professional Svcs (54200) PS - Environmental Services $5,700 $30,000 $30,000 $0 (54400) PS - Engineering $42,231 $0 $45,000 $0 (54900) PS - Other Prof Svcs $4,026 $4,000 $4,000 $4,500 PROFESSIONAL SVCS TOTAL $51,958 $34,000 $79,000 $4,500 Contract Services (55550) Cs - Industrial Waste Services $44,646 $50,000 $50,000 $50,000 CONTRACT SERVICES TOTAL $44,646 $50,000 $50,000 $50,000 TOTAL $690,671 $668,205 $698,205 $660,609DRAFT Page 133 of 346 POSITION ALLOCATION FUNDING DETAIL 100610 - Public Works Administration Position Name 2027 Allocated FTE Count Public Works Manager/Assistant City Engineer 0.475 Engineering Technician 0.3 Associate Engineer 0.5 Senior Public Works Inspector 0.15 Public Works Director/City Engineer 0.475 Administrative Coordinator 0.675 ALLOCATED FTE COUNT 2.575 DRAFTPage 134 of 346 615 - ENGINEERING DIVISION OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). The Department budget consists of Public Works Administration, Engineering, Road Maintenance, Parks and Facilities Maintenance, and Landscape Maintenance. Public Works is also actively involved in representing community’s interests on significant regional issues, such as storm water and transportation. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 135 of 346 BUDGET DETAIL 100615 - Engineering 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $190,476 $300,241 $285,241 $310,898 (50020) Over Time Wages $55 $1,500 $1,500 $1,500 (50040) Classic Member Retiremnt $26,642 $30,737 $30,737 $31,839 (50042) Classic Member Ual Pmts $19,806 $24,254 $24,254 $27,338 (50044) Pepra Member Retiremnt $3,787 $11,166 $11,166 $11,322 (50046) Pepra Member Ual Pmts $442 $603 $603 $614 (50050) City Paid Benefits $4,153 $2,990 $2,990 $2,990 (50052) Worker's Compensation $6,145 $6,124 $6,124 $7,050 (50054) Short/Long Term Disability $873 $3,003 $3,003 $3,086 (50056) Medicare Expense $2,850 $4,354 $4,354 $4,475 (50060) Benefit Allotment $33,296 $50,676 $50,676 $62,316 (50072) Auto Allowance $666 $666 $666 $666 (50074) Technology Allowance $360 $360 $360 $360 PERSONNEL SERVICES TOTAL $289,551 $436,674 $421,674 $464,454 Operating Exp $321 $0 $0 $0 Professional Svcs (54400) PS - Engineering $60,290 $130,500 $130,500 $130,500 (54410) PS - Traffic $54,613 $115,000 $115,000 $115,000 (54420) PS - Plan Checking $328 $20,000 $20,000 $20,000 (54430) PS - Soils/Surveying $0 $20,000 $20,000 $30,000 (54440) PS - Inspection $0 $10,300 $10,300 $5,300 PROFESSIONAL SVCS TOTAL $115,230 $295,800 $295,800 $300,800 TOTAL $405,102 $732,474 $717,474 $765,254 POSITION ALLOCATION FUNDING DETAIL 100615 - Engineering Position Name 2027 Allocated FTE Count Public Works Inspector 1 Public Works Manager/Assistant City Engineer 0.15 Engineering Technician 0.3 Associate Engineer 0.5 Senior Public Works Inspector 0.4 Public Works Director/City Engineer 0.15 Administrative Coordinator 0.2 ALLOCATED FTE COUNT 2.7DRAFT Page 136 of 346 630 - PARKS & FACILITIES MAINTENANCE DIVISION OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 137 of 346 BUDGET DETAIL 100630 - Parks & Facilities Maintenance 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $406,253 $387,466 $387,466 $401,120 (50020) Over Time Wages $1,619 $8,000 $8,000 $8,000 (50030) Part-Time Wages $0 $16,848 $0 $16,848 (50040) Classic Member Retiremnt $37,547 $35,532 $35,532 $36,807 (50042) Classic Member Ual Pmts $23,266 $28,042 $28,042 $31,608 (50044) Pepra Member Retiremnt $15,676 $15,180 $15,180 $15,661 (50046) Pepra Member Ual Pmts $698 $819 $819 $849 (50050) City Paid Benefits $6,100 $3,499 $3,499 $3,499 (50052) Worker's Compensation $10,399 $9,593 $9,593 $11,071 (50054) Short/Long Term Disability $1,821 $3,752 $3,752 $3,887 (50056) Medicare Expense $6,163 $5,864 $5,864 $5,880 (50060) Benefit Allotment $80,758 $77,508 $77,508 $81,738 (50072) Auto Allowance $222 $222 $222 $222 (50074) Technology Allowance $120 $120 $120 $120 PERSONNEL SERVICES TOTAL $590,644 $592,445 $575,597 $617,310 Supplies (51200) Operating Supplies $32,989 $45,700 $45,700 $40,200 (51300) Small Tools & Equipment $4,998 $5,000 $5,000 $10,000 SUPPLIES TOTAL $37,988 $50,700 $50,700 $50,200 Operating Exp (52210) Electric Utility Expenditure $53,891 $58,000 $58,000 $61,000 (52215) Gas Utility Expenditure $2,459 $5,200 $5,200 $3,500 (52220) Water Utility Expenditure $416,906 $314,700 $314,700 $264,700 (52300) Rental/Lease - Equipmnt $7,497 $7,500 $7,500 $7,500 (52320) Maint Of Grounds/Buildings $241,073 $215,500 $215,500 $216,500 (52400) Membership & Dues $1,098 $1,450 $1,450 $1,500 (52415) Conferences $1,820 $5,000 $5,000 $5,000 OPERATING EXP TOTAL $724,744 $607,350 $607,350 $559,700 Contract Services (55000) Cs - Contract Services $6,264 $0 $0 $0 (55505) Cs - Pw Contract Services $290,162 $422,500 $515,500 $595,260 CONTRACT SERVICES TOTAL $296,426 $422,500 $515,500 $595,260 Capital Outlay Exp (56110) Buildings/Facilities Exp $5,314 $0 $0 $0 (56116) Equipment $37,089 $40,000 $40,000 $42,000 CAPITAL OUTLAY EXP TOTAL $42,402 $40,000 $40,000 $42,000 TOTAL $1,692,203 $1,712,995 $1,789,147 $1,864,470DRAFT Page 138 of 346 POSITION ALLOCATION FUNDING DETAIL 100630 - Parks & Facilities Maintenance Position Name 2027 Allocated FTE Count Parks & Maintenance Superintendent 0.5 Public Works Manager/Assistant City Engineer 0.05 Maintenance Worker (PT)0.45 Facilities Maintenance Supervisor 0.85 Public Works Director/City Engineer 0.05 Facilities & Asset Maintenance Technician 0.5 Senior Maintenance Worker 0.7 Administrative Coordinator 0.875 ALLOCATED FTE COUNT 3.975 DRAFTPage 139 of 346 645 - LANDSCAPE MAINTENANCE DIVISION OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). BUDGET DETAIL 100645 - Landscape Maintenance 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Contract Services (55522) Cs - Tree Maintenance $323,566 $378,800 $378,800 $328,800 (55528) Cs - Pkwy/Vegetation Control $37,356 $44,000 $44,000 $0 CONTRACT SERVICES TOTAL $360,922 $422,800 $422,800 $328,800 TOTAL $360,922 $422,800 $422,800 $328,800 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 140 of 346 655 - ROAD MAINTENANCE DIVISION OVERVIEW The Public Works Department is committed to providing for the efficient operation of public works systems and programs. The vital services include: planning, designing, constructing, and monitoring the City’s roadways and sidewalk infrastructure as well as sewer and storm drain systems; overseeing traffic management/control systems and traffic signal timing programs; maintaining and repairing all City buildings and fleet of vehicles and equipment; maintaining public parks/public property and Landscape Assessment Districts’ medians, parkways, mini parks, slopes, and open space; managing the engineering design and construction of the City’s robust capital improvements program; reviewing/planning and permitting land development activities and subdivisions; and managing environmental programs such as the National Pollutant Discharge Elimination System (NPDES). City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 141 of 346 BUDGET DETAIL 100655 - Road Maintenance 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50010) Salaries $333,123 $357,016 $342,016 $364,658 (50020) Over Time Wages $2,926 $3,500 $3,500 $3,500 (50040) Classic Member Retiremnt $35,769 $37,349 $37,349 $38,689 (50042) Classic Member Ual Pmts $24,244 $29,479 $29,479 $33,227 (50044) Pepra Member Retiremnt $11,245 $12,425 $12,425 $12,897 (50046) Pepra Member Ual Pmts $560 $670 $670 $698 (50050) City Paid Benefits $7,642 $3,174 $3,174 $3,174 (50052) Worker's Compensation $10,324 $9,657 $9,657 $11,229 (50054) Short/Long Term Disability $1,500 $3,505 $3,505 $3,641 (50056) Medicare Expense $4,889 $5,182 $5,182 $5,279 (50060) Benefit Allotment $66,806 $71,949 $71,949 $75,879 (50072) Auto Allowance $444 $444 $444 $444 (50074) Technology Allowance $240 $240 $240 $240 PERSONNEL SERVICES TOTAL $499,711 $534,590 $519,590 $553,555 Supplies (51200) Operating Supplies $2,022 $3,000 $3,000 $3,000 (51250) Road Maintenance Supplies $36,071 $70,000 $70,000 $50,000 (51300) Small Tools & Equipment $2,286 $10,000 $10,000 $5,000 SUPPLIES TOTAL $40,380 $83,000 $83,000 $58,000 Operating Exp (52210) Electric Utility Expenditure $117,124 $132,000 $132,000 $132,000 (52300) Rental/Lease - Equipmnt $10,021 $15,000 $15,000 $15,000 (52310) Equipment Maintenance $5,911 $6,000 $6,000 $6,000 OPERATING EXP TOTAL $133,056 $153,000 $153,000 $153,000 Contract Services (55510) Cs - Street Sweeping $194,525 $210,000 $210,000 $203,000 (55512) Cs - Road Maintenance $898,740 $898,000 $898,000 $785,000 (55528) Cs - Pkwy/Vegetation Control $114,459 $160,000 $160,000 $160,000 (55530) Cs - Right Of Way Clean Up $51,531 $65,000 $65,000 $65,000 (55536) Cs - Traffic Signal Maint $50,771 $94,000 $94,000 $94,000 CONTRACT SERVICES TOTAL $1,310,026 $1,427,000 $1,427,000 $1,307,000 TOTAL $1,983,173 $2,197,590 $2,182,590 $2,071,555DRAFT Page 142 of 346 POSITION ALLOCATION FUNDING DETAIL 100655 - Road Maintenance Position Name 2027 Allocated FTE Count Public Works Maintenance Superintendent-Streets 0.975 Public Works Manager/Assistant City Engineer 0.1 Engineering Technician 0.3 Senior Public Works Inspector 0.35 Public Works Director/City Engineer 0.1 Facilities & Asset Maintenance Technician 0.475 Senior Maintenance Worker 0.975 ALLOCATED FTE COUNT 3.275 DRAFTPage 143 of 346 TOTAL TRANSFERS IN Total Transfers In 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (49100) Transfer In - General Fd $3,465,674 $1,595,375 $3,146,860 $2,287,111 (49102) Transfer In - Law Enforcement $35,837 $50,000 $50,000 $50,000 (49104) Transfer In - Tech Reserve $705,000 $250,000 $250,000 $0 (49105) Transfer In - Opeb Reserve $88,000 $88,000 $88,000 $88,000 (49201) Transfer In - Measure W $245,159 $0 $85,293 $0 (49202) Transfer In - Rmra Fund $3,779,186 $0 $0 $0 (49203) Transfer In - Measure M $925,803 $0 $24,781 $0 (49204) Transfer In - Measure R $662,494 $0 $224,820 $0 (49205) Transfer In - Gas Tax Fd $1,521,653 $1,435,000 $1,435,000 $1,435,000 (49206) Transfer In - Prop A $38,947 $0 $0 $0 (49207) Transfer In - Prop C $2,431,551 $0 $0 $0 (49209) Transfer In - Tda/Trails Fund $26,439 $0 $5,080 $0 (49225) Transfer In - Cdbg Fund $101,421 $0 $0 $0 (49250) Transfer In - Ab939 $0 $10,000 $10,000 $10,000 (49251) Transfer In - Ab2766 $0 $0 $0 $35,000 (49252) Transfer In-Waste Hauler $140,871 $0 $0 $0 (49262) Transfer In - Park Development $1,355,309 $0 $509,641 $0 (49270) Transfer In - Peg Fees $400,744 $0 $0 $0 (49280) Transfer In - Cops Fund $152,500 $152,500 $152,500 $152,500 (49501) Transfer In - Self Insurance $0 $100,000 $100,000 $0 (49504) Transfer In -Building/Facility $10,000 $0 $0 $0 TOTAL $16,086,588 $3,680,875 $6,081,975 $4,057,611 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 144 of 346 TOTAL TRANSFERS OUT Total Transfers Out 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (59107) Transfer Out - Homelessness Response Fund $50,000 $50,000 $50,000 $25,000 (59100) Transfer Out - General Fund $1,484,686 $1,647,500 $1,647,500 $1,647,500 (59101) Transfer Out - Com Org Fund $11,850 $20,000 $20,000 $10,000 (59102) Transfer Out - Law Enforcement $263,609 $0 $0 $0 (59103) Transfer Out - General Plan Reserve $58,000 $0 $0 $0 (59104) Transfer Out - Tech Reserve Fd $100,000 $100,000 $100,000 $100,000 (59106) Transfer Out - Covid19 Fund $0 $0 $106,000 $0 (59105) Transfer Out - OPEB Res Fund $40,000 $44,000 $44,000 $44,000 (59238) Transfer Out - Llad #38 $0 $217,326 $525,803 $88,879 (59239) Transfer Out - Llad #39 $44,037 $45,535 $45,535 $42,533 (59241) Transfer Out-Llad #41 $11,955 $12,314 $12,314 $17,392 (59248) Transfer Out - Tres Hermanos $95,473 $80,000 $80,000 $120,000 (59256) Transfer Out - Haz Elim Grant $0 $0 $0 $56,000 (59301) Transfer Out - Cip Fund $11,359,263 $0 $1,986,628 $0 (59401) Transfer Out - Debt Service $717,935 $729,700 $729,700 $726,000 (59501) Transfer Out - Self Insurance $580,000 $0 $0 $820,807 (59502) Transfer Out - Vehicle Repl Fund $269,000 $296,500 $296,500 $171,500 (59503) Transfer Out-Computer Equip Fund $758,580 $250,000 $250,000 $0 (59504) Transfer Out - Building Fund $154,200 $100,000 $100,000 $100,000 (59601) Transfer Out - OPEB Trust $88,000 $88,000 $88,000 $88,000 TOTAL $16,086,588 $3,680,875 $6,081,980 $4,057,611 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 145 of 346 DRAFTPage 146 of 346 PERSONNEL SUMMARY FY 2026/27 Proposed Budget Includes two (2) reclassifications: •Parks & Recreation Department: (1) Part Time (PT) Pre-School Teacher to PT Recreation Specialist •Public Works Department: (1) PT Public Works Inspector to PT Engineering Technician FY 2025/26 Revised Budget Includes one (1) reclassification: •Human Resources Department: (1) Human Resources & Risk Manager to Human Resources & Risk Director FY 2025/26 Adopted Budget No personnel changes for adopted FY 2025/26 FY 2024/25 Revised Budget Includes two (2) additional new full-time positions: • Public Works Department: (1) Management Analyst • Parks & Recreation Department: (1) Recreation Coordinator Includes three (3) reclassifications: •Finance Department: (1) Accountant to Senior Accountant •Human Resources Department: (1) Human Resources Technician to Senior Human Resources Technician •Community Relations Division: (1) Senior Community Relations Coordinator to Community Relations Coordinator City of Diamond Bar Budget Fiscal Year 26/27 DRAFTPage 147 of 346 DRAFTPage 148 of 346 DRAFTPage 149 of 346 DRAFTPage 150 of 346 101 - COMMUNITY ORGANIZATION SUPPORT FUND FUND DESCRIPTION This fund was established in FY 1997/1998 to account for transfers and expenditures related to the City Council's policy to support various non profit community organizations which are of a benefit to the City. The City has continued this program to show their ever-increasing interest and support of the City's non-profit community organizations. BUDGET DETAIL 101 - Community Organization Support Fund 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Interfund Transfers (49100) Transfer In - General Fd $11,850 $20,000 $20,000 $10,000 INTERFUND TRANSFERS TOTAL $11,850 $20,000 $20,000 $10,000 REVENUES TOTAL $11,850 $20,000 $20,000 $10,000 Expenses Operating Exp (52600) Contributions - Comm Grps $11,850 $20,000 $20,000 $10,000 OPERATING EXP TOTAL $11,850 $20,000 $20,000 $10,000 EXPENSES TOTAL $11,850 $20,000 $20,000 $10,000 REVENUES LESS EXPENSES $0 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 151 of 346 102 - LAW ENFORCEMENT RESERVE FUND FUND DESCRIPTION This fund was established in FY 2012/2013 to incorporate a method to fund future increases in the Sheriff 's Department contract and the Liability Trust Fund. The primary revenue source in this fund is from annual savings realized in the law enforcement budget in the General Fund. BUDGET DETAIL 102 - Law Enforcement Reserve Fund 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues $325,690 $0 $0 $0 Expenses Capital Outlay Exp $0 $0 $32,268 $0 Interfund Transfer Out (59100) Transfer Out - General Fund $35,837 $50,000 $50,000 $50,000 INTERFUND TRANSFER OUT TOTAL $35,837 $50,000 $50,000 $50,000 EXPENSES TOTAL $35,837 $50,000 $82,268 $50,000 REVENUES LESS EXPENSES $289,853 -$50,000 -$82,268 -$50,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 152 of 346 103 - GENERAL PLAN UPDATE FUND FUND DESCRIPTION This fund was created in FY 2014/2015 to establish an allocation of resources needed to fund the preparation of a comprehensive update to the City's General Plan. BUDGET DETAIL 103 - General Plan Update Fund 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues $80,898 $0 $0 $0 Expenses Supplies (51200) Operating Supplies $0 $1,000 $1,000 $1,000 SUPPLIES TOTAL $0 $1,000 $1,000 $1,000 Operating Exp (52110) Printing $0 $2,500 $3,500 $2,500 (52160) Advertising $0 $2,500 $3,500 $2,500 (52170) Postage $0 $6,000 $6,000 $6,000 OPERATING EXP TOTAL $0 $11,000 $13,000 $11,000 Professional Svcs (54900) PS - Other Prof Svcs $209,467 $0 $172,482 $0 PROFESSIONAL SVCS TOTAL $209,467 $0 $172,482 $0 EXPENSES TOTAL $209,467 $12,000 $186,482 $12,000 REVENUES LESS EXPENSES -$128,569 -$12,000 -$186,482 -$12,000 City of Diamond Bar Budget Fiscal Year 25/26 www.diamondbarca.gov DRAFTPage 153 of 346 104 - TECHNOLOGY RESERVE FUND FUND DESCRIPTION This fund was created in FY 2015/2016 to establish an allocation of resources needed to fund the future replacement of a variety of hardware and software platforms throughout the City. BUDGET DETAIL Tech Reserve Fund 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Building Fees (48020) Plan Check Fees-Bldg/Sfty -$114 $0 $0 $0 (48030) Permit System Replacement $50,919 $74,000 $74,000 $290,000 BUILDING FEES TOTAL $50,804 $74,000 $74,000 $290,000 Investment Income (48500) Investment Earnings $20,726 $0 $0 $0 (48510) Unrealized Gain/Loss Fmv $10,337 $0 $0 $0 INVESTMENT INCOME TOTAL $31,063 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $100,000 $100,000 $100,000 $100,000 INTERFUND TRANSFERS TOTAL $100,000 $100,000 $100,000 $100,000 REVENUES TOTAL $181,867 $174,000 $174,000 $390,000 Expenses Interfund Transfer Out (59503) Transfer Out-Computer Equip Fund $705,000 $250,000 $250,000 $0 INTERFUND TRANSFER OUT TOTAL $705,000 $250,000 $250,000 $0 EXPENSES TOTAL $705,000 $250,000 $250,000 $0 REVENUES LESS EXPENSES -$523,133 -$76,000 -$76,000 $390,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 154 of 346 105 - OTHER POST EMPLOYMENT BENEFITS (OPEB) RESERVE FUND FUND DESCRIPTION This fund was created in FY 2014/2015 to establish an allocation of resources needed to fund the Other Post Employment Benefits (OPEB) unfunded liability. BUDGET DETAIL (REVENUES) 105 - OPEB Fund Official (Revenues) 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Investment Income (48500) Investment Earnings $10,492 $0 $0 $0 (48510) Unrealized Gain/Loss Fmv $5,233 $0 $0 $0 INVESTMENT INCOME TOTAL $15,725 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $40,000 $44,000 $44,000 $44,000 INTERFUND TRANSFERS TOTAL $40,000 $44,000 $44,000 $44,000 TOTAL $55,725 $44,000 $44,000 $44,000 BUDGET DETAIL (EXPENSES) 105 - OPEB Fund Official (Expenses) 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Personnel Services (50048) Post Emplymt Beneft (OPEB)$21,889 $22,000 $22,000 $22,000 PERSONNEL SERVICES TOTAL $21,889 $22,000 $22,000 $22,000 Interfund Transfer Out (59601) Transfer Out - OPEB Trust $88,000 $88,000 $88,000 $88,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 155 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget INTERFUND TRANSFER OUT TOTAL $88,000 $88,000 $88,000 $88,000 TOTAL $109,889 $110,000 $110,000 $110,000 DRAFTPage 156 of 346 107 - HOMELESSNESS RESPONSE FUND FUND DESCRIPTION Special Fund 107 was established in Fiscal Year 2023-24 to centralize the City's revenues and expenses related to homelessness response. BUDGET DETAIL 107 - Homelessness Response Fund 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income $125 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $50,000 $50,000 $50,000 $25,000 INTERFUND TRANSFERS TOTAL $50,000 $50,000 $50,000 $25,000 REVENUES TOTAL $50,125 $50,000 $50,000 $25,000 Expenses Contract Services (55000) Cs - Contract Services $22,145 $50,000 $50,000 $25,000 CONTRACT SERVICES TOTAL $22,145 $50,000 $50,000 $25,000 EXPENSES TOTAL $22,145 $50,000 $50,000 $25,000 REVENUES LESS EXPENSES $27,979 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 157 of 346 DRAFTPage 158 of 346 201 - MEASURE W LOCAL RETURN FUND FUND DESCRIPTION Approved by the voters on November 6, 2018, Measure W provides for a 2.5 cents per square foot of “impermeable surface” assessment on the property tax bill to fund projects that improve water quality. This fund accounts for the local return of 40% that is remitted by the County to the City of the total assessments received from Diamond Bar property tax payers. The County retains the remaining amount which is used to fund water quality improvement projects at the regional level. POSITION FUNDING ALLOCATION DETAIL 201 - Measure W Position Name 2027 Allocated FTE Count Management Analyst 0.45 Public Works Manager/Assistant City Engineer 0.1 Engineering Technician 0.1 Associate Engineer 0.2 Senior Public Works Inspector 0.1 Public Works Director/City Engineer 0.1 ALLOCATED FTE COUNT 1.05 BUDGET DETAIL 201 - Measure W Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues County Revenue (44050) Measure W Revenue $842,223 $838,000 $838,000 $838,000 COUNTY REVENUE TOTAL $842,223 $838,000 $838,000 $838,000 Investment Income City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 159 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (48500) Investment Earnings $64,032 $0 $0 $0 (48510) Unrealized Gain/Loss Fmv $31,934 $0 $0 $0 INVESTMENT INCOME TOTAL $95,966 $0 $0 $0 REVENUES TOTAL $938,189 $838,000 $838,000 $838,000 Expenses Personnel Services (50010) Salaries $94,670 $134,354 $134,354 $138,426 (50040) Classic Member Retiremnt $9,622 $11,433 $11,433 $11,843 (50042) Classic Member Ual Pmts $7,425 $9,026 $9,026 $10,174 (50044) Pepra Member Retiremnt $3,406 $5,823 $5,823 $5,942 (50046) Pepra Member Ual Pmts $99 $115 $115 $115 (50050) City Paid Benefits $1,540 $1,162 $1,162 $1,162 (50052) Worker's Compensation $0 $2,206 $2,206 $2,541 (50054) Short/Long Term Disability $383 $1,326 $1,326 $1,365 (50056) Medicare Expense $1,418 $1,923 $1,923 $1,980 (50060) Benefit Allotment $15,092 $23,004 $23,004 $24,264 (50072) Auto Allowance $444 $444 $444 $444 (50074) Technology Allowance $240 $240 $240 $240 PERSONNEL SERVICES TOTAL $134,339 $191,056 $191,056 $198,496 Professional Svcs (54010) PS - Accounting & Auditing $0 $0 $7,400 $8,000 (54200) PS - Environmental Services $178,524 $284,500 $284,500 $284,500 PROFESSIONAL SVCS TOTAL $178,524 $284,500 $291,900 $292,500 Contract Services (55505) Cs - Pw Contract Services $3,750 $15,000 $15,000 $15,000 (55530) Cs - Right Of Way Clean Up $90,697 $105,000 $105,000 $105,000 CONTRACT SERVICES TOTAL $94,447 $120,000 $120,000 $120,000 CIP Capital Projects $0 $0 $1,280,000 $700,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $245,159 $0 $85,293 $0 INTERFUND TRANSFER OUT TOTAL $245,159 $0 $85,293 $0 EXPENSES TOTAL $652,469 $595,556 $1,968,249 $1,310,996 REVENUES LESS EXPENSES $285,720 $242,444 -$1,130,249 -$472,996DRAFT Page 160 of 346 202 - ROAD MAINTENANCE AND REHABILITATION FUND FUND DESCRIPTION Senate Bill 1 (SB-1), the Road Repair and Accountability Act of 2017 was signed into law in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide. SB-1 prioritizes funding towards maintenance, rehabilitation and safety improvements on state highways, local streets and roads, and bridges, and to improve the State's trade corridors, transit and active transportation facilities. BUDGET DETAIL 202 - Road Maintenance & Rehabilitation 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue (43080) Rmra (Sb-1) - Road Maint Rehab $1,499,672 $1,488,368 $1,488,368 $1,541,956 STATE REVENUE TOTAL $1,499,672 $1,488,368 $1,488,368 $1,541,956 Investment Income (48500) Investment Earnings $133,234 $12,900 $12,900 $12,900 (48510) Unrealized Gain/Loss Fmv $66,447 $0 $0 $0 INVESTMENT INCOME TOTAL $199,681 $12,900 $12,900 $12,900 REVENUES TOTAL $1,699,353 $1,501,268 $1,501,268 $1,554,856 Expenses CIP Capital Projects $79,126 $1,500,000 $2,720,874 $1,500,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $3,779,186 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $3,779,186 $0 $0 $0 EXPENSES TOTAL $3,858,312 $1,500,000 $2,720,874 $1,500,000 REVENUES LESS EXPENSES -$2,158,959 $1,268 -$1,219,606 $54,856 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 161 of 346 203 - MEASURE M LOCAL RETURN FUND FUND DESCRIPTION Approved by the voters on November 8, 2016, the Measure M half-cent sales tax increase will fund projects that will improve local streets, repair potholes and improve traffic flow/safety. POSITION FUNDING ALLOCATION DETAIL 203 - Measure M Position Name 2027 Allocated FTE Count Management Analyst 0.15 ALLOCATED FTE COUNT 0.15 BUDGET DETAIL 203 - Measure M Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues County Revenue (44030) Measure M Revenue $987,030 $972,722 $972,722 $988,477 COUNTY REVENUE TOTAL $987,030 $972,722 $972,722 $988,477 Investment Income (48500) Investment Earnings $53,712 $7,400 $7,400 $8,000 (48510) Unrealized Gain/Loss Fmv $26,787 $0 $0 $0 INVESTMENT INCOME TOTAL $80,499 $7,400 $7,400 $8,000 REVENUES TOTAL $1,067,529 $980,122 $980,122 $996,477 Expenses Personnel Services (50010) Salaries $17,318 $15,375 $15,375 $15,928 (50044) Pepra Member Retiremnt $1,365 $1,238 $1,238 $1,278 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 162 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (50050) City Paid Benefits $199 $167 $167 $167 (50052) Worker's Compensation $0 $133 $133 $153 (50054) Short/Long Term Disability $62 $154 $154 $160 (50056) Medicare Expense $277 $223 $223 $231 (50060) Benefit Allotment $3,919 $3,276 $3,276 $3,456 PERSONNEL SERVICES TOTAL $23,139 $20,566 $20,566 $21,373 CIP Capital Projects $0 $1,343,000 $1,913,000 $1,000,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $925,803 $0 $24,781 $0 INTERFUND TRANSFER OUT TOTAL $925,803 $0 $24,781 $0 EXPENSES TOTAL $948,943 $1,363,566 $1,958,347 $1,021,373 REVENUES LESS EXPENSES $118,586 -$383,444 -$978,225 -$24,896 DRAFTPage 163 of 346 204 - MEASURE R FUND FUND DESCRIPTION The Measure R Local Return program funds are to be used for major street resurfacing, rehabilitation, and reconstruction; pothole repair; left turn signals; bikeways; pedestrian improvements; streetscapes; signal synchronization; & transit. POSITION FUNDING ALLOCATION DETAIL 204 - Measure R Position Name 2027 Allocated FTE Count Management Analyst 0.15 ALLOCATED FTE COUNT 0.15 BUDGET DETAIL 204 - Measure R Official 2024 - 25 Actual 2025-26 AdoptedBudget 2025-26 RevisedBudget 2026-27 ProposedBudget Revenues County Revenue (44040) Measure R Revenue $871,191 $858,284 $858,284 $872,186 COUNTY REVENUE TOTAL $871,191 $858,284 $858,284 $872,186 Investment Income (48500) Investment Earnings $43,582 $4,500 $4,500 $4,500 (48510) Unrealized Gain/Loss Fmv $21,735 $0 $0 $0 INVESTMENT INCOME TOTAL $65,317 $4,500 $4,500 $4,500 REVENUES TOTAL $936,507 $862,784 $862,784 $876,686 Expenses Personnel Services (50010) Salaries $13,844 $15,375 $15,375 $15,928 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 164 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (50044) Pepra Member Retiremnt $1,091 $1,238 $1,238 $1,278 (50050) City Paid Benefits $158 $167 $167 $167 (50052) Worker's Compensation $0 $133 $133 $153 (50054) Short/Long Term Disability $49 $154 $154 $160 (50056) Medicare Expense $221 $223 $223 $231 (50060) Benefit Allotment $3,098 $3,276 $3,276 $3,456 PERSONNEL SERVICES TOTAL $18,462 $20,566 $20,566 $21,373 CIP Capital Projects $0 $1,000,000 $1,350,000 $1,000,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $662,494 $0 $224,820 $0 INTERFUND TRANSFER OUT TOTAL $662,494 $0 $224,820 $0 EXPENSES TOTAL $680,956 $1,020,566 $1,595,386 $1,021,373 REVENUES LESS EXPENSES $255,551 -$157,782 -$732,602 -$144,687 DRAFTPage 165 of 346 205 - GAS TAX FUND FUND DESCRIPTION The City receives funds from Sections 2105, 2106, 2107, and 2107.5 of the Streets and Highway Code. State law requires that these revenues be recorded in a Special Revenue Fund, and that they be utilized solely for street related purposes such as new construction, rehabilitation or maintenance. It is anticipated that the City will use Gas Tax Funds to fund ongoing street maintenance programs to the extent possible. Any remaining funds will be used to assist in the funding of the City's Capital Improvement Project Program. Beginning in FY 2011/2012, the State replaced Prop 42 funds with Highway Users Tax. BUDGET DETAIL 205 - Gas Tax Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue (43030) Gas Tax - 2105 $341,426 $355,207 $355,207 $355,207 (43040) Gas Tax - 2106 $199,386 $203,438 $203,438 $203,438 (43050) Gas Tax - 2107 $452,932 $484,299 $484,299 $484,299 (43060) Gas Tax - 2107.5 $7,500 $7,500 $7,500 $7,500 (43070) Gas Tax - 2103 $525,006 $514,659 $514,659 $540,642 STATE REVENUE TOTAL $1,526,251 $1,565,103 $1,565,103 $1,591,086 Investment Income (48500) Investment Earnings $40,968 $1,800 $1,800 $1,800 (48510) Unrealized Gain/Loss Fmv $20,431 $0 $0 $0 INVESTMENT INCOME TOTAL $61,399 $1,800 $1,800 $1,800 REVENUES TOTAL $1,587,650 $1,566,903 $1,566,903 $1,592,886 Expenses CIP Capital Projects (56102) CIP-Traffic Control Imprv $0 $66,000 $66,000 $66,000 CIP CAPITAL PROJECTS TOTAL $0 $66,000 $66,000 $66,000 Interfund Transfer Out (59100) Transfer Out - General Fund $1,296,349 $1,435,000 $1,435,000 $1,435,000 (59301) Transfer Out - Cip Fund $225,304 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 166 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget INTERFUND TRANSFER OUT TOTAL $1,521,653 $1,435,000 $1,435,000 $1,435,000 EXPENSES TOTAL $1,521,653 $1,501,000 $1,501,000 $1,501,000 REVENUES LESS EXPENSES $65,997 $65,903 $65,903 $91,886 DRAFTPage 167 of 346 206 - PROP A TRANSIT FUND FUND DESCRIPTION The City receives Proposition A Transit Tax which is a voter approved sales tax override for public transportation purposes. This fund has been established to account for these revenues and approved project expenditures. POSITION FUNDING ALLOCATION DETAIL 206 - Prop A Position Name 2027 Allocated FTE Count Network/Systems Technician 0.05 Management Analyst 0.25 Assistant to the City Manager 0.01 Administrative Assistant 0.275 Accounting Technician 0.65 Network/Systems Administrator 0.075 Finance Director 0.05 Principal Management Analyst 0.25 Information Systems Director 0.025 Administrative Coordinator 0.45 Senior Accounting Technician 0.65 ALLOCATED FTE COUNT 2.735 206 - Prop A Finance Position Name 2027 Allocated FTE Count Finance Supervisor 0.02 Senior Accountant 0.1 ALLOCATED FTE COUNT 0.12 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 168 of 346 BUDGET DETAIL 206 - Prop A Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Other Taxes & Fees (41030) Franchise Fees $25,954 $26,000 $26,000 $26,000 OTHER TAXES & FEES TOTAL $25,954 $26,000 $26,000 $26,000 County Revenue (44010) Prop A Transportation Tax $1,400,649 $1,379,645 $1,379,645 $1,401,990 COUNTY REVENUE TOTAL $1,400,649 $1,379,645 $1,379,645 $1,401,990 Miscellaneous Fees (48400) Transit Pass Sales $58,788 $250,000 $250,000 $58,000 MISCELLANEOUS FEES TOTAL $58,788 $250,000 $250,000 $58,000 Investment Income (48500) Investment Earnings $97,325 $2,700 $2,700 $407,700 (48510) Unrealized Gain/Loss Fmv $48,538 $0 $0 $0 INVESTMENT INCOME TOTAL $145,863 $2,700 $2,700 $407,700 REVENUES TOTAL $1,631,254 $1,658,345 $1,658,345 $1,893,690 Expenses Personnel Services (50010) Salaries $59,163 $287,008 $287,008 $300,670 (50040) Classic Member Retiremnt $7,294 $40,252 $40,252 $41,695 (50042) Classic Member Ual Pmts $23,326 $28,645 $28,645 $32,288 (50044) Pepra Member Retiremnt $1,624 $7,530 $7,530 $8,256 (50046) Pepra Member Ual Pmts $319 $385 $385 $425 (50050) City Paid Benefits $784 $3,119 $3,119 $3,175 (50052) Worker's Compensation $0 $3,017 $3,017 $3,553 (50054) Short/Long Term Disability $211 $2,844 $2,844 $3,008 (50056) Medicare Expense $940 $4,174 $4,174 $4,361 (50060) Benefit Allotment $10,330 $61,416 $61,416 $65,934 (50072) Auto Allowance $0 $225 $225 $225 (50074) Technology Allowance $0 $186 $186 $186 PERSONNEL SERVICES TOTAL $103,990 $438,801 $438,801 $463,776 Supplies (51200) Operating Supplies $1,006 $1,200 $1,200 $1,200 SUPPLIES TOTAL $1,006 $1,200 $1,200 $1,200 Operating Exp (52255) Banking Charges $2,165 $3,000 $3,000 $3,000 (52314) Computer Maintenance $0 $7,000 $7,000 $7,000 (52400) Membership & Dues $20,000 $20,000 $20,000 $20,000 OPERATING EXP TOTAL $22,165 $30,000 $30,000 $30,000 Contract Services (55300) Cs - Special Events $4,055 $19,000 $19,000 $19,000 (55310) Cs - Senior Programs $7,556 $10,000 $10,000 $10,000 (55315) Cs - Youth Programs $13,916 $14,000 $14,000 $15,400 (55542) Cs-Bus Bench Maint $17,940 $35,000 $35,000 $35,000 (55560) Cs - Dial-A-Cab Services $338,676 $550,000 $550,000 $550,000 (55610) Transit Program Subsidy $16,194 $20,000 $20,000 $7,000 (55620) Transit Fares Expenses $65,187 $80,000 $80,000 $30,000DRAFT Page 169 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget CONTRACT SERVICES TOTAL $463,523 $728,000 $728,000 $666,400 Capital Outlay Exp (56130) Computer Eq - Hardware Exp $18,581 $49,000 $49,000 $12,000 (56135) Computer Eq - Software Exp $0 $80,000 $80,000 $80,000 CAPITAL OUTLAY EXP TOTAL $18,581 $129,000 $129,000 $92,000 CIP Capital Projects $0 $0 $1,340,000 $70,000 Misc Expenditures $1,333,333 $0 $1,333,333 $0 Interfund Transfer Out (59301) Transfer Out - Cip Fund $38,947 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $38,947 $0 $0 $0 EXPENSES TOTAL $1,981,545 $1,327,001 $4,000,334 $1,323,376 REVENUES LESS EXPENSES -$350,291 $331,344 -$2,341,989 $570,314 DRAFTPage 170 of 346 207 - PROP C TRANSIT FUND FUND DESCRIPTION The City receives Proposition C Tax which is additional allocations of State Gas Tax funds from Los Angeles County. These funds must be used for street-related purposes such as construction, rehabilitation, maintenance or traffic safety. The projects must be transit related improvements. In order to spend these funds, the City must submit the project to Metropolitan Transit Authority (MTA) for prior approval. POSITION FUNDING ALLOCATION DETAIL 207 - Prop C Transit Position Name 2027 Allocated FTE Count Network/Systems Technician 0.025 Management Analyst 0.1 Network/Systems Administrator 0.05 Associate Engineer 0.8 Information Systems Director 0.025 Administrative Coordinator 0.05 ALLOCATED FTE COUNT 1.05 207 - Prop C Finance Position Name 2027 Allocated FTE Count Senior Accounting Technician 0.05 Accounting Technician 0.02 Finance Supervisor 0.02 Senior Accountant 0.1 ALLOCATED FTE COUNT 0.19 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 171 of 346 BUDGET DETAIL 207 - Prop C Transit Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues County Revenue (44020) Prop C Transportation Tax $1,161,803 $1,144,379 $1,144,379 $1,162,914 COUNTY REVENUE TOTAL $1,161,803 $1,144,379 $1,144,379 $1,162,914 Investment Income (48500) Investment Earnings $88,297 $9,500 $9,500 $24,500 (48510) Unrealized Gain/Loss Fmv $44,035 $0 $0 $0 INVESTMENT INCOME TOTAL $132,332 $9,500 $9,500 $24,500 REVENUES TOTAL $1,294,135 $1,153,879 $1,153,879 $1,187,414 Expenses Personnel Services (50010) Salaries $149,883 $151,149 $151,149 $161,380 (50040) Classic Member Retiremnt $24,504 $24,522 $24,522 $25,402 (50042) Classic Member Ual Pmts $15,793 $19,256 $19,256 $21,705 (50044) Pepra Member Retiremnt $1,583 $1,734 $1,734 $2,277 (50046) Pepra Member Ual Pmts $42 $50 $50 $78 (50050) City Paid Benefits $2,711 $1,316 $1,316 $1,371 (50052) Worker's Compensation $0 $2,584 $2,584 $3,058 (50054) Short/Long Term Disability $676 $1,500 $1,500 $1,615 (50056) Medicare Expense $2,105 $2,195 $2,195 $2,341 (50060) Benefit Allotment $23,588 $26,024 $26,024 $28,604 (50072) Auto Allowance $0 $75 $75 $75 (50074) Technology Allowance $0 $90 $90 $90 PERSONNEL SERVICES TOTAL $220,886 $230,495 $230,495 $247,996 Operating Exp (52314) Computer Maintenance $33,038 $48,100 $48,100 $48,400 OPERATING EXP TOTAL $33,038 $48,100 $48,100 $48,400 Professional Svcs (54400) PS - Engineering $135,779 $150,000 $176,955 $150,000 (54410) PS - Traffic $44,086 $80,000 $80,000 $80,000 PROFESSIONAL SVCS TOTAL $179,865 $230,000 $256,955 $230,000 Contract Services (55536) Cs - Traffic Signal Maint $301,954 $330,000 $330,000 $330,000 CONTRACT SERVICES TOTAL $301,954 $330,000 $330,000 $330,000 CIP Capital Projects $62,025 $380,000 $1,130,000 $476,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $2,431,551 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $2,431,551 $0 $0 $0 EXPENSES TOTAL $3,229,318 $1,218,595 $1,995,550 $1,332,396 REVENUES LESS EXPENSES -$1,935,183 -$64,716 -$841,671 -$144,982DRAFT Page 172 of 346 209 - SB 821 FUND (BIKE AND PEDESTRIAN PATHS TDA) FUND DESCRIPTION The State allocates funds to cities for the specific purpose of the construction of bike and pedestrian paths via SB821. This fund has been established to account for transactions related to the receipt and expenditure of these funds. BUDGET DETAIL 209 - SB 821 Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue (43230) SB 821 - Bikeways & Trails -$4,420 $0 $0 $45,000 STATE REVENUE TOTAL -$4,420 $0 $0 $45,000 REVENUES TOTAL -$4,420 $0 $0 $45,000 Expenses CIP Capital Projects $0 $0 $100,000 $0 Interfund Transfer Out (59301) Transfer Out - Cip Fund $26,439 $0 $5,080 $0 INTERFUND TRANSFER OUT TOTAL $26,439 $0 $5,080 $0 EXPENSES TOTAL $26,439 $0 $105,080 $0 REVENUES LESS EXPENSES -$30,859 $0 -$105,080 $45,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 173 of 346 224 - Permanent Local Housing Allocation FUND DESCRIPTION The State allocates funds to cities for the construction of affordable housing, programs to assist persons who are experiencing or are at risk of homelessness, or other housing-related assistance programs for low-to- moderate income households. This fund has been established to account for transactions related to the receipt and expenditure of these funds. BUDGET DETAIL 224 - Permanent Local Housing Allocation 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue (43125) PLHA Revenue $30,417 $390,664 $390,664 $145,681 STATE REVENUE TOTAL $30,417 $390,664 $390,664 $145,681 REVENUES TOTAL $30,417 $390,664 $390,664 $145,681 Expenses Professional Svcs (54900) PS - Other Prof Svcs $151,337 $78,133 $78,133 $29,136 PROFESSIONAL SVCS TOTAL $151,337 $78,133 $78,133 $29,136 Contract Services $0 $312,531 $312,531 $116,545 EXPENSES TOTAL $151,337 $390,664 $390,664 $145,681 REVENUES LESS EXPENSES -$120,920 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 174 of 346 225 - COMMUNITY DEVELOPMENT BLOCK GRANT FUND FUND DESCRIPTION The City receives an annual CDBG allotment from the federal government via the Community Development Commission. The purpose of this grant is to fund approved community development programs and projects benefiting low and moderate income citizens. POSITION FUNDING ALLOCATION DETAIL 225 - CDBG Position Name 2027 Allocated FTE Count Recreation Coordinator-Seniors 0 ALLOCATED FTE COUNT 0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 175 of 346 BUDGET DETAIL 225 - CDBG 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Federal Revenue (42020) CDBG Revenue $341,104 $387,192 $387,192 $399,734 FEDERAL REVENUE TOTAL $341,104 $387,192 $387,192 $399,734 REVENUES TOTAL $341,104 $387,192 $387,192 $399,734 Expenses Personnel Services (50010) Salaries $20,051 $20,319 $20,319 $0 (50030) Part-Time Wages $5,126 $0 $0 $0 (50040) Classic Member Retiremnt $239 $50 $50 $0 (50044) Pepra Member Retiremnt $1,309 $1,740 $1,740 $0 (50046) Pepra Member Ual Pmts $71 $94 $94 $0 (50050) City Paid Benefits $259 $300 $300 $0 (50052) Worker's Compensation $0 $427 $427 $0 (50054) Short/Long Term Disability $67 $216 $216 $0 (50056) Medicare Expense $331 $313 $313 $0 (50060) Benefit Allotment $4,845 $5,897 $5,897 $0 PERSONNEL SERVICES TOTAL $32,299 $29,356 $29,356 $0 Supplies (51200) Operating Supplies $0 $2,500 $2,500 $0 SUPPLIES TOTAL $0 $2,500 $2,500 $0 Professional Svcs (54460) Ps - Home Improv Loan $0 $40,026 $40,026 $42,000 (54900) PS - Other Prof Svcs $127,096 $4,206 $4,206 $0 PROFESSIONAL SVCS TOTAL $127,096 $44,232 $44,232 $42,000 Contract Services $0 $160,104 $160,104 $168,000 CIP Capital Projects $87,443 $145,000 $226,145 $189,734 Misc Expenditures $0 $6,000 $6,000 $0 Interfund Transfer Out (59301) Transfer Out - Cip Fund $101,421 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $101,421 $0 $0 $0 EXPENSES TOTAL $348,258 $387,192 $468,337 $399,734 REVENUES LESS EXPENSES -$7,154 $0 -$81,145 $0DRAFT Page 176 of 346 226 - CASP SB1186 FUND DESCRIPTION SB 1186 requires that a $4 additional fee is to be paid by any applicant seeking a local business license when it is initially issued or renewed. From January 1, 2018 through December 31, 2023, the City will retain 90% of the fees collected. The purpose of the fee is to increase disability access and compliance with construction-related accessibility. BUDGET DETAIL 226 - CASP SB 1186 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Planning Fees (48150) Business License - Sb1186 $7,690 $8,000 $8,000 $8,000 PLANNING FEES TOTAL $7,690 $8,000 $8,000 $8,000 Investment Income (48500) Investment Earnings $2,204 $200 $200 $200 (48510) Unrealized Gain/Loss Fmv $1,099 $0 $0 $0 INVESTMENT INCOME TOTAL $3,303 $200 $200 $200 REVENUES TOTAL $10,992 $8,200 $8,200 $8,200 Expenses $0 $60,000 $60,000 $60,000 REVENUES LESS EXPENSES $10,992 -$51,800 -$51,800 -$51,800 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 177 of 346 238 - LANDSCAPE MAINTENANCE DISTRICT #38 FUND DESCRIPTION The City is responsible for the operations of the LLAD #38 which primarily maintains the City's medians. This district was set up in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from this district receive a special assessment on their property taxes. This fund accounts for this district's operations. POSITION FUNDING ALLOCATION DETAIL 238 - District 38 Position Name 2027 Allocated FTE Count Facilities Maintenance Supervisor 0.05 Parks & Maintenance Superintendent 0.2 ALLOCATED FTE COUNT 0.25 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 178 of 346 BUDGET DETAIL 238 - District 38 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Special Assessments (40080) Special Assessments $270,195 $276,780 $276,780 $272,167 SPECIAL ASSESSMENTS TOTAL $270,195 $276,780 $276,780 $272,167 Interfund Transfers (49100) Transfer In - General Fd $0 $217,326 $525,803 $88,879 INTERFUND TRANSFERS TOTAL $0 $217,326 $525,803 $88,879 REVENUES TOTAL $270,195 $494,106 $802,583 $361,046 Expenses Personnel Services (50010) Salaries $36,751 $33,814 $33,814 $37,272 (50040) Classic Member Retiremnt $6,580 $6,427 $6,427 $6,658 (50042) Classic Member Ual Pmts $4,208 $5,073 $5,073 $5,718 (50050) City Paid Benefits $635 $278 $278 $278 (50052) Worker's Compensation $0 $995 $995 $1,150 (50054) Short/Long Term Disability $166 $339 $339 $351 (50056) Medicare Expense $531 $516 $516 $508 (50060) Benefit Allotment $5,275 $5,550 $5,550 $5,850 PERSONNEL SERVICES TOTAL $54,146 $52,992 $52,992 $57,785 Operating Exp (52160) Advertising $1,605 $3,000 $3,000 $3,000 (52210) Electric Utility Expenditure $3,278 $5,500 $5,500 $5,500 (52220) Water Utility Expenditure $158,985 $154,000 $154,000 $97,300 (52320) Maint Of Grounds/Buildings $61,608 $50,000 $50,000 $30,000 OPERATING EXP TOTAL $225,476 $212,500 $212,500 $135,800 Professional Svcs (54900) PS - Other Prof Svcs $1,834 $7,000 $7,000 $7,500 PROFESSIONAL SVCS TOTAL $1,834 $7,000 $7,000 $7,500 Contract Services (55522) Cs - Tree Maintenance $87,375 $10,000 $10,000 $10,000 (55524) Cs - Landscape Maintenance $225,429 $211,500 $211,500 $150,000 CONTRACT SERVICES TOTAL $312,804 $221,500 $221,500 $160,000 EXPENSES TOTAL $594,259 $493,992 $493,992 $361,085 REVENUES LESS EXPENSES -$324,064 $114 $308,591 -$39DRAFT Page 179 of 346 239 - LANDSCAPE MAINTENANCE DISTRCIT #39-2022 FUND DESCRIPTION The County of Los Angeles originally formed Landscape Assessment District No. 39 (LAD 39) prior to the City's incorporation and in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from the district receive a special assessment on their property taxes. After its incorporation, the City took over the administration of the assessment district. In March 2022, the City implemented a successful Proposition 218 balloting procedure to replace LAD 39 with LAD 39-2022 with the same service area and an updated assessment structure approved by the property owners. This fund accounts for this district's operations. POSITION FUNDING ALLOCATION DETAIL 239 - District 39 Position Name 2027 Allocated FTE Count Management Analyst 0.05 Facilities Maintenance Supervisor 0.05 Parks & Maintenance Superintendent 0.1 ALLOCATED FTE COUNT 0.2 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 180 of 346 BUDGET DETAIL 239 - District 39 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Special Assessments (40080) Special Assessments $658,112 $687,833 $687,833 $708,383 SPECIAL ASSESSMENTS TOTAL $658,112 $687,833 $687,833 $708,383 Investment Income $1,862 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $44,037 $45,535 $45,535 $42,533 INTERFUND TRANSFERS TOTAL $44,037 $45,535 $45,535 $42,533 REVENUES TOTAL $704,011 $733,368 $733,368 $750,916 Expenses Personnel Services (50010) Salaries $24,675 $25,154 $25,154 $27,590 (50040) Classic Member Retiremnt $4,035 $3,807 $3,807 $3,944 (50042) Classic Member Ual Pmts $2,493 $3,005 $3,005 $3,387 (50044) Pepra Member Retiremnt $172 $413 $413 $426 (50050) City Paid Benefits $391 $222 $222 $222 (50052) Worker's Compensation $0 $633 $633 $732 (50054) Short/Long Term Disability $108 $252 $252 $261 (50056) Medicare Expense $367 $365 $365 $378 (50060) Benefit Allotment $3,816 $4,422 $4,422 $4,662 PERSONNEL SERVICES TOTAL $36,058 $38,273 $38,273 $41,602 Operating Exp (52160) Advertising $1,690 $3,500 $3,500 $3,500 (52210) Electric Utility Expenditure $307 $2,000 $2,000 $2,000 (52220) Water Utility Expenditure $134,191 $123,500 $123,500 $135,000 (52320) Maint Of Grounds/Buildings $24,821 $248,544 $248,544 $104,133 OPERATING EXP TOTAL $161,008 $377,544 $377,544 $244,633 Professional Svcs (54900) PS - Other Prof Svcs $1,051 $7,000 $7,000 $5,000 PROFESSIONAL SVCS TOTAL $1,051 $7,000 $7,000 $5,000 Contract Services (55522) Cs - Tree Maintenance $32,000 $32,000 $32,000 $32,000 (55524) Cs - Landscape Maintenance $164,586 $175,000 $175,000 $330,000 (55526) Cs - Weed/Pest Abatement $46,092 $58,000 $58,000 $60,000 CONTRACT SERVICES TOTAL $242,678 $265,000 $265,000 $422,000 CIP Capital Projects $0 $400,000 $400,000 $0 EXPENSES TOTAL $440,796 $1,087,817 $1,087,817 $713,235 REVENUES LESS EXPENSES $263,215 -$354,449 -$354,449 $37,681DRAFT Page 181 of 346 241 - LANDSCAPE MAINTENANCE DISTRCIT #41-2021 FUND DESCRIPTION The County of Los Angeles originally formed Landscape Assessment District No. 41 (LAD 41) prior to the City's incorporation and in accordance with the Landscape and Lighting Act of 1972. Property owners benefiting from the district receive a special assessment on their property taxes. After its incorporation, the City took over the administration of the assessment district. In July 2021, the City implemented a successful Proposition 218 balloting procedure to replace LAD 41 with LAD 41-2021 with the same service area and an updated assessment structure approved by the property owners. This fund accounts for this district's operations. POSITION FUNDING ALLOCATION DETAIL 241 - District 41 Position Name 2027 Allocated FTE Count Management Analyst 0.05 Facilities Maintenance Supervisor 0.05 Parks & Maintenance Superintendent 0.1 ALLOCATED FTE COUNT 0.2 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 182 of 346 BUDGET DETAIL 241 - District 41 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Special Assessments (40080) Special Assessments $309,079 $320,686 $320,686 $330,164 SPECIAL ASSESSMENTS TOTAL $309,079 $320,686 $320,686 $330,164 Investment Income $699 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $11,955 $12,314 $12,314 $17,392 INTERFUND TRANSFERS TOTAL $11,955 $12,314 $12,314 $17,392 REVENUES TOTAL $321,733 $333,000 $333,000 $347,556 Expenses Personnel Services (50010) Salaries $24,675 $25,154 $25,154 $27,590 (50020) Over Time Wages $0 $394 $394 $394 (50040) Classic Member Retiremnt $4,035 $3,807 $3,807 $3,944 (50042) Classic Member Ual Pmts $2,493 $3,005 $3,005 $3,387 (50044) Pepra Member Retiremnt $172 $413 $413 $426 (50050) City Paid Benefits $391 $222 $222 $222 (50052) Worker's Compensation $0 $633 $633 $732 (50054) Short/Long Term Disability $108 $252 $252 $261 (50056) Medicare Expense $367 $365 $365 $378 (50060) Benefit Allotment $3,816 $4,422 $4,422 $4,662 PERSONNEL SERVICES TOTAL $36,058 $38,667 $38,667 $41,996 Operating Exp (52160) Advertising $1,637 $3,000 $3,000 $3,000 (52210) Electric Utility Expenditure $232 $2,000 $2,000 $1,000 (52220) Water Utility Expenditure $85,212 $75,000 $75,000 $85,000 (52320) Maint Of Grounds/Buildings $20,730 $50,000 $50,000 $25,000 OPERATING EXP TOTAL $107,811 $130,000 $130,000 $114,000 Professional Svcs (54900) PS - Other Prof Svcs $1,051 $7,000 $7,000 $5,000 PROFESSIONAL SVCS TOTAL $1,051 $7,000 $7,000 $5,000 Contract Services (55522) Cs - Tree Maintenance $23,000 $23,000 $23,000 $23,000 (55524) Cs - Landscape Maintenance $67,479 $70,600 $70,600 $225,000 (55526) Cs - Weed/Pest Abatement $33,405 $51,606 $51,606 $45,000 CONTRACT SERVICES TOTAL $123,884 $145,206 $145,206 $293,000 CIP Capital Projects $0 $200,000 $200,000 $0 EXPENSES TOTAL $268,805 $520,873 $520,873 $453,996 REVENUES LESS EXPENSES $52,929 -$187,873 -$187,873 -$106,440DRAFT Page 183 of 346 245 - STREET BEAUTIFICATION FUND FUND DESCRIPTION This fund was established in FY 2017/2018 as a result of funds received from development projects to be used towards the Diamond Bar Complete Streets improvements as well as other identified capital improvement streetscape or complete streets projects as conditioned by the development projects entitlements. BUDGET DETAIL 245 - Street Beautification 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $13,749 $2,400 $2,400 $2,400 (48510) Unrealized Gain/Loss Fmv $6,857 $0 $0 $0 INVESTMENT INCOME TOTAL $20,605 $2,400 $2,400 $2,400 REVENUES TOTAL $20,605 $2,400 $2,400 $2,400 REVENUES LESS EXPENSES $20,605 $2,400 $2,400 $2,400 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 184 of 346 246 - TRAFFIC MITIGATION FUND FUND DESCRIPTION The Traffic Mitigation Fund is used to account for funds which have been received from development projects and designated by the City Council for traffic mitigation projects. BUDGET DETAIL 246 - Traffic Mitigation 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $324,109 $150,000 $150,000 $150,000 (48510) Unrealized Gain/Loss Fmv $161,640 $0 $0 $0 INVESTMENT INCOME TOTAL $485,749 $150,000 $150,000 $150,000 REVENUES TOTAL $485,749 $150,000 $150,000 $150,000 Expenses $0 $0 $0 $350,000 REVENUES LESS EXPENSES $485,749 $150,000 $150,000 -$200,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 185 of 346 247 - SEWER MITIGATION FUND FUND DESCRIPTION This fund was established in FY 2014/2015 as a result of Developer Impacts to existing sewer facilities in the City. The fund will be used to account for funds which have been received from development projects and designated by the City Council for sewer facility mitigation/improvement projects. BUDGET DETAIL 247 - Sewer Mitigation 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $2,335 $400 $400 $400 (48510) Unrealized Gain/Loss Fmv $1,165 $0 $0 $0 INVESTMENT INCOME TOTAL $3,500 $400 $400 $400 REVENUES TOTAL $3,500 $400 $400 $400 REVENUES LESS EXPENSES $3,500 $400 $400 $400 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 186 of 346 248 - TRES HERMANOS CONSERVATION AUTHORITY FUND FUND DESCRIPTION The Tres Hermanos Conservation Authority is a joint powers agency with representatives from the cities of Chino Hills, Diamond Bar, and Industry with the primary purpose to coordinate the overall ownership, maintenance and use of the 2,445-acre Tres Hermanos Ranch property through the collaborative efforts of its Member Agencies.  The Tres Hermanos Conservation Authority Fund was created in 2019 to provide for the City’s share of the property maintenance and administration costs of the Authority.  The revenue source for this fund is a transfer in from the General Fund. BUDGET DETAIL 248 - Tres Hermanos 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income $13 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $95,473 $80,000 $80,000 $120,000 INTERFUND TRANSFERS TOTAL $95,473 $80,000 $80,000 $120,000 REVENUES TOTAL $95,486 $80,000 $80,000 $120,000 Expenses Operating Exp (52320) Maint Of Grounds/Buildings $95,473 $80,000 $80,000 $120,000 OPERATING EXP TOTAL $95,473 $80,000 $80,000 $120,000 EXPENSES TOTAL $95,473 $80,000 $80,000 $120,000 REVENUES LESS EXPENSES $13 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 187 of 346 250 - INTEGRATED WASTE MANAGEMENT FUND FUND DESCRIPTION The Integrated Waste Management Fund was created during FY 1990/1991, to account for expenditures and revenues related to the activities involved with the City's efforts to comply with AB939. Revenues recorded in this fund are the adopted waste hauler fees and funds received from the State for recycling education and efforts. POSITION FUNDING ALLOCATION DETAIL 250 - Integrated Waste Management Position Name 2027 Allocated FTE Count Management Analyst 1.7 Public Works Maintenance Superintendent-Streets 0.025 Senior Neighborhood Improvement Officer 0.2 Assistant to the City Manager 0.35 Public Works Manager/Assistant City Engineer 0.025 Administrative Assistant 0.025 Community Relations Manager 0.3 Media Specialist 0.25 Finance Supervisor 0.025 Accounting Technician 0.05 Community Relations Coordinator 0.15 Finance Director 0.025 Facilities Maintenance Supervisor 0.025 Public Works Director/City Engineer 0.025 Principal Management Analyst 0.05 Assistant City Manager 0.1 Facilities & Asset Maintenance Technician 0.025 Neighborhood Improvement Officer 0.1 Senior Maintenance Worker 0.025 Administrative Coordinator 0.075 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 188 of 346 Position Name 2027 Senior Accounting Technician 0.075 ALLOCATED FTE COUNT 3.625 BUDGET DETAIL 250 - Integrated Waste Management 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue $65,798 $0 $0 $0 Miscellaneous Fees (48410) Integrated Waste Mgmt Fees $906,854 $740,670 $706,780 $772,500 MISCELLANEOUS FEES TOTAL $906,854 $740,670 $706,780 $772,500 Investment Income (48500) Investment Earnings $86,682 $35,000 $35,000 $35,000 (48510) Unrealized Gain/Loss Fmv $43,230 $0 $0 $0 INVESTMENT INCOME TOTAL $129,912 $35,000 $35,000 $35,000 Cost Reimbursements (48820) Cost Reimbursements $50,230 $50,000 $3,704 $5,000 COST REIMBURSEMENTS TOTAL $50,230 $50,000 $3,704 $5,000 REVENUES TOTAL $1,152,794 $825,670 $745,484 $812,500 Expenses Personnel Services (50010) Salaries $347,432 $418,809 $418,809 $434,447 (50020) Over Time Wages $1,839 $2,000 $2,000 $2,000 (50040) Classic Member Retiremnt $23,147 $33,225 $33,225 $34,417 (50042) Classic Member Ual Pmts $20,992 $25,993 $25,993 $29,298 (50044) Pepra Member Retiremnt $17,058 $19,263 $19,263 $19,950 (50046) Pepra Member Ual Pmts $847 $1,040 $1,040 $1,082 (50050) City Paid Benefits $5,711 $3,627 $3,627 $3,627 (50052) Worker's Compensation $0 $5,791 $5,791 $6,724 (50054) Short/Long Term Disability $1,631 $4,124 $4,124 $4,282 (50056) Medicare Expense $5,583 $6,054 $6,054 $6,209 (50060) Benefit Allotment $69,324 $79,548 $79,548 $83,898 (50072) Auto Allowance $567 $630 $630 $630 (50074) Technology Allowance $510 $720 $720 $720 PERSONNEL SERVICES TOTAL $494,640 $600,824 $600,824 $627,284 Supplies (51200) Operating Supplies $24,650 $28,000 $28,000 $28,000 (51300) Small Tools & Equipment $2,320 $10,000 $10,000 $10,000 (51400) Promotional Supplies $11,441 $10,000 $10,000 $10,000 SUPPLIES TOTAL $38,411 $48,000 $48,000 $48,000 Operating Exp (52110) Printing $3,369 $21,000 $21,000 $21,000 (52160) Advertising $2,205 $10,000 $10,000 $10,000 (52170) Postage $0 $15,000 $15,000 $15,000 (52400) Membership & Dues $490 $1,000 $1,000 $1,000 (52405) Publications $0 $200 $200 $200 (52410) Meetings $580 $1,000 $1,000 $1,000DRAFT Page 189 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (52415) Conferences $99 $2,000 $2,000 $2,000 (52500) Education & Training $0 $1,000 $1,000 $1,000 OPERATING EXP TOTAL $6,743 $51,200 $51,200 $51,200 Professional Svcs (54900) PS - Other Prof Svcs $110,004 $150,750 $272,279 $330,750 PROFESSIONAL SVCS TOTAL $110,004 $150,750 $272,279 $330,750 Contract Services (55000) Cs - Contract Services $28,499 $35,000 $35,000 $35,000 CONTRACT SERVICES TOTAL $28,499 $35,000 $35,000 $35,000 Capital Outlay Exp (56116) Equipment $34,186 $0 $0 $0 CAPITAL OUTLAY EXP TOTAL $34,186 $0 $0 $0 Misc Expenditures (57220) Special Events Insurance $2,255 $3,000 $3,000 $3,000 MISC EXPENDITURES TOTAL $2,255 $3,000 $3,000 $3,000 Interfund Transfer Out (59100) Transfer Out - General Fund $0 $10,000 $10,000 $10,000 INTERFUND TRANSFER OUT TOTAL $0 $10,000 $10,000 $10,000 EXPENSES TOTAL $714,738 $898,774 $1,020,303 $1,105,234 REVENUES LESS EXPENSES $438,056 -$73,104 -$274,819 -$292,734 DRAFTPage 190 of 346 251 - AIR QUALITY IMPROVEMENT FUND FUND DESCRIPTION This fund was established in FY 1991/1992 to account for revenues received as a result of AB2766 which authorized the imposition of an additional motor vehicle registration fee to fund the implementation of air quality management compliance and provisions of the California Clean Air Act of 1988. BUDGET DETAIL 251 - Air Quality Improvement 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue (43100) AB 2766 Revenue $71,092 $73,000 $73,000 $71,000 STATE REVENUE TOTAL $71,092 $73,000 $73,000 $71,000 Investment Income (48500) Investment Earnings $5,414 $2,100 $2,100 $2,100 (48510) Unrealized Gain/Loss Fmv $2,700 $0 $0 $0 INVESTMENT INCOME TOTAL $8,114 $2,100 $2,100 $2,100 REVENUES TOTAL $79,206 $75,100 $75,100 $73,100 Expenses Professional Svcs $1,050 $40,000 $40,000 $5,000 CIP Capital Projects (56102) CIP-Traffic Control Imprv $0 $34,000 $34,000 $34,000 CIP CAPITAL PROJECTS TOTAL $0 $34,000 $34,000 $34,000 Interfund Transfer Out (59502) Transfer Out - Vehicle Repl Fund $0 $0 $0 $35,000 INTERFUND TRANSFER OUT TOTAL $0 $0 $0 $35,000 EXPENSES TOTAL $1,050 $74,000 $74,000 $74,000 REVENUES LESS EXPENSES $78,156 $1,100 $1,100 -$900 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 191 of 346 252 - WASTE HAULER FUND FUND DESCRIPTION The Waste Hauler Fund was established in FY 2013/2014. These funds are received from the City's Waste Hauler in order to mitigate damage to City streets by large trash trucks. Previously these funds were recognized in the General Fund. BUDGET DETAIL 252 - Waste Hauler 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Engineering Fees (48265) Road Reimbursement $122,946 $173,150 $173,150 $180,250 ENGINEERING FEES TOTAL $122,946 $173,150 $173,150 $180,250 Investment Income (48500) Investment Earnings $9,593 $1,300 $1,300 $1,300 (48510) Unrealized Gain/Loss Fmv $4,784 $0 $0 $0 INVESTMENT INCOME TOTAL $14,377 $1,300 $1,300 $1,300 REVENUES TOTAL $137,323 $174,450 $174,450 $181,550 Expenses CIP Capital Projects $0 $195,000 $445,000 $180,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $140,871 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $140,871 $0 $0 $0 EXPENSES TOTAL $140,871 $195,000 $445,000 $180,000 REVENUES LESS EXPENSES -$3,548 -$20,550 -$270,550 $1,550 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 192 of 346 253 - USED OIL BLOCK GRANT FUND FUND DESCRIPTION The Department of Resources Recycling and Recovery (CalRecycle) administers the annual Used Oil Payment Program (OPP) grant program to provide cities with the opportunity to offer used oil recycling and disposal programs. BUDGET DETAIL (REVENUES) 253 - Used Oil Block Grant (Revenues) 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget State Revenue (43200) Used Motor Oil Block Grant $7,833 $7,833 $7,833 $7,721 STATE REVENUE TOTAL $7,833 $7,833 $7,833 $7,721 Investment Income (48500) Investment Earnings $1,069 $200 $200 $200 (48510) Unrealized Gain/Loss Fmv $533 $0 $0 $0 INVESTMENT INCOME TOTAL $1,603 $200 $200 $200 TOTAL $9,436 $8,033 $8,033 $7,921 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 193 of 346 BUDGET DETAIL (EXPENSES) 253 - Used Oil Block Grant (Expenses) 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Supplies (51200) Operating Supplies $4,248 $5,873 $5,873 $5,721 (51300) Small Tools & Equipment $1,000 $0 $0 $0 SUPPLIES TOTAL $5,248 $5,873 $5,873 $5,721 Operating Exp (52160) Advertising $750 $1,000 $1,000 $1,000 (52302) Rental/Lease - Real Property $1,818 $0 $0 $0 OPERATING EXP TOTAL $2,568 $1,000 $1,000 $1,000 Professional Svcs (54900) PS - Other Prof Svcs $1,280 $960 $960 $1,000 PROFESSIONAL SVCS TOTAL $1,280 $960 $960 $1,000 TOTAL $9,096 $7,833 $7,833 $7,721 DRAFTPage 194 of 346 254 - BEVERAGE CONTAINER RECYCLING GRANT FUND FUND DESCRIPTION The Department of Resources Recycling and Recovery (CalRecycle) administers this annual grant program to provide cities with the opportunity to offer beverage container recycling programs, including aluminum, glass, plastic and bi-metal. BUDGET DETAIL (REVENUES) 254 - Beverage Container Recycling Grant Revenue 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget State Revenue (43220) Beverage Container Recycling $13,618 $13,000 $13,000 $13,532 STATE REVENUE TOTAL $13,618 $13,000 $13,000 $13,532 Investment Income (48500) Investment Earnings $4,763 $1,800 $1,800 $1,800 (48510) Unrealized Gain/Loss Fmv $2,375 $0 $0 $0 INVESTMENT INCOME TOTAL $7,138 $1,800 $1,800 $1,800 TOTAL $20,756 $14,800 $14,800 $15,332 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 195 of 346 BUDGET DETAIL (EXPENSES) 254 - Beverage Container Recycling Grant Expenses 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Supplies (51300) Small Tools & Equipment $10,839 $6,196 $6,196 $9,532 SUPPLIES TOTAL $10,839 $6,196 $6,196 $9,532 Operating Exp (52160) Advertising $1,924 $7,500 $7,500 $4,000 OPERATING EXP TOTAL $1,924 $7,500 $7,500 $4,000 Contract Services $0 $13,618 $13,618 $0 Capital Outlay Exp (56116) Equipment $0 $70,000 $70,000 $0 CAPITAL OUTLAY EXP TOTAL $0 $70,000 $70,000 $0 TOTAL $12,764 $97,314 $97,314 $13,532 DRAFTPage 196 of 346 256 - HAZARD MITIGATION GRANT FUND FUND DESCRIPTION The City received a grant from FEMA in order to update the City's Hazard Mitigation Plan. This plan establishes the City's strategy to implement improvements and programs to lessen community impacts in the event of natural hazard events. BUDGET DETAIL 256 - Hazard Mitigation Grant 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues $348 $0 $0 $221,000 Expenses $0 $0 $0 $221,000 REVENUES LESS EXPENSES $348 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 197 of 346 260 - PARK FEES (QUIMBY) FUND FUND DESCRIPTION Within the California Subdivision Map Act is a requirement that developers either contribute land or pay fees to the local municipal government to provide recreational facilities within the development area. This fund is used to account for the fees received. BUDGET DETAIL 260 - Quimby 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $5,141 $500 $500 $500 (48510) Unrealized Gain/Loss Fmv $2,564 $0 $0 $0 INVESTMENT INCOME TOTAL $7,704 $500 $500 $500 REVENUES TOTAL $7,704 $500 $500 $500 REVENUES LESS EXPENSES $7,704 $500 $500 $500 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 198 of 346 261 - MEASURE A NEIGHBORHOOD PARKS ACT FUND DESCRIPTION Measure A Neighborhood Parks Act was approved by the voters in November 2016 and provides funds to improve the quality of life throughout Los Angeles County by preserving and protecting parks, safe places to play, community recreation facilities, beaches, rivers, open spaces and water conservation. Measure A funds provide local funding for parks, recreation, trails, cultural facilities, open space and Veteran and youth programs. Funding is approved on a per-project basis and reimburses City expenses. BUDGET DETAIL 261 - Measure A 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues County Revenue (44080) Measure A Category 1 Rev $0 $0 $0 $0 COUNTY REVENUE TOTAL $0 $0 $0 $0 REVENUES TOTAL $0 $0 $0 $0 REVENUES LESS EXPENSES $0 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 199 of 346 262 - PARK & FACILITY DEVELOPMENT FUND FUND DESCRIPTION The purpose of this fund is to provide resources for the development and enhancement of the City's parks and facilities. BUDGET DETAIL 262 - Park & Facility Development Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues State Revenue $250,000 $0 $0 $0 Rev From Oth Cities $1,000,000 $0 $1,000,000 $0 Investment Income (48500) Investment Earnings $109,515 $7,300 $7,300 $7,300 (48510) Unrealized Gain/Loss Fmv $54,618 $0 $0 $0 INVESTMENT INCOME TOTAL $164,133 $7,300 $7,300 $7,300 Miscellaneous Revenue $925,314 $0 $0 $0 REVENUES TOTAL $2,339,447 $7,300 $1,007,300 $7,300 Expenses Professional Svcs $0 $35,000 $35,000 $0 Capital Outlay Exp $925,314 $0 $0 $0 CIP Capital Projects $0 $0 $901,425 $250,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $1,355,309 $0 $509,646 $0 INTERFUND TRANSFER OUT TOTAL $1,355,309 $0 $509,646 $0 EXPENSES TOTAL $2,280,623 $35,000 $1,446,071 $250,000 REVENUES LESS EXPENSES $58,824 -$27,700 -$438,771 -$242,700 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 200 of 346 270 - PEG FEES FUND FUND DESCRIPTION Public, Educational and Governmental (PEG) fees totaling 1% of gross revenues are remitted to the City by all video service providers with a valid state franchise. In accordance with federal law, PEG fees may be used only for capital expenditures related to the City's operations of its PEG channels. Capital expenditures include equipment, and related labor, software, training and associated warranty costs. Repairs are not considered capital expenditures. BUDGET DETAIL 270 - PEG Fees 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Other Taxes & Fees (41040) PEG Fees $65,909 $100,000 $100,000 $65,000 OTHER TAXES & FEES TOTAL $65,909 $100,000 $100,000 $65,000 Investment Income (48500) Investment Earnings $21,333 $3,800 $3,800 $3,800 (48510) Unrealized Gain/Loss Fmv $10,639 $0 $0 $0 INVESTMENT INCOME TOTAL $31,972 $3,800 $3,800 $3,800 REVENUES TOTAL $97,881 $103,800 $103,800 $68,800 Expenses Contract Services $16,000 $0 $0 $0 Capital Outlay Exp (56116) Equipment $20,389 $100,000 $140,000 $50,000 CAPITAL OUTLAY EXP TOTAL $20,389 $100,000 $140,000 $50,000 Interfund Transfer Out (59301) Transfer Out - Cip Fund $292,418 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $292,418 $0 $0 $0 EXPENSES TOTAL $328,806 $100,000 $140,000 $50,000 REVENUES LESS EXPENSES -$230,925 $3,800 -$36,200 $18,800 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 201 of 346 280 - CITIZENS OPTION FOR PUBLIC SAFETY (COPS) FUND FUND DESCRIPTION The purpose of these funds are to enhance the City's public safety budget and to fund special public safety related projects. These funds are used to provide at-risk youth counseling with a majority of the funds being transferred to the General Fund to pay for City's contracted Law Enforcement services. BUDGET DETAIL (REVENUES) 280 - COPS REVENUES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget State Revenue (43160) State Cops Revenue $194,663 $185,000 $185,000 $185,000 STATE REVENUE TOTAL $194,663 $185,000 $185,000 $185,000 Investment Income (48500) Investment Earnings $19,322 $3,200 $3,200 $3,200 (48510) Unrealized Gain/Loss Fmv $9,636 $0 $0 $0 INVESTMENT INCOME TOTAL $28,958 $3,200 $3,200 $3,200 TOTAL $223,622 $188,200 $188,200 $188,200 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 202 of 346 BUDGET DETAIL (EXPENSES) 280 - COPS EXPENSES 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Professional Svcs (54900) PS - Other Prof Svcs $4,800 $5,000 $5,000 $5,000 PROFESSIONAL SVCS TOTAL $4,800 $5,000 $5,000 $5,000 Capital Outlay Exp (56116) Equipment $0 $5,000 $5,000 $5,000 CAPITAL OUTLAY EXP TOTAL $0 $5,000 $5,000 $5,000 Interfund Transfer Out (59100) Transfer Out - General Fund $152,500 $152,500 $152,500 $152,500 INTERFUND TRANSFER OUT TOTAL $152,500 $152,500 $152,500 $152,500 TOTAL $157,300 $162,500 $162,500 $162,500 DRAFTPage 203 of 346 DRAFTPage 204 of 346 CAPITAL IMPROVEMENT PROGRAM (CIP) CIP OVERVIEW The CIP section provides project descriptions and financial information for capital improvement projects citywide. The schedules on the following pages list each project, include a project description, project funding sources, and the Adopted FY 2026-27 Budget for the project. The FY 2026-2027 Capital Improvement Program (CIP) includes a total of $5.36 million in new projects and includes many of the projects that were in the design phase in FY 2025/26 which will now move into the construction phase in FY 2026/27. The CIP was reviewed for consistency with the City’s General Plan at the May 12, 2026 Planning Commission Meeting. CIP projects include: Arterial Street Rehabilitation (Construction) - Diamond Bar Side of Temple Avenue from Diamond Bar Boulevard to City Limits 1. Residential and Collector Streets Pavement Rehabilitation - Area 52. CDBG Curb Ramps - Area 7 (Construction)3. Battery Back-Up and CCTV Replacement Program FY26/274. Full Capture Devices on Stormwater Catchbasins for Trash Amendment Compliance - Phase 15. Chino Hills Parkway Erosion Prevention6. Sycamore Canyon Park Lower Bridge Replacement7. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 205 of 346 BUDGET DETAIL FY26/27 CIP 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (56101) CIP-Street Improvments $0 $0 $0 $4,349,734 (56102) CIP-Traffic Control Imprv $0 $0 $0 $66,000 (56104) CIP-Park Improvements $0 $0 $0 $250,000 (56105) CIP - Misc Pw Improvements $0 $0 $380,000 $700,000 TOTAL $0 $0 $380,000 $5,365,734 DRAFTPage 206 of 346 DESCRIPTIONSTATUSNEWTIMELINEStartApril 2027Completion June 2027ESTIMATED COSTProp A70,000$ Prop C410,000$ Total Budget480,000$ Arterial Street Rehabilitation - Diamond Bar Side of Temple Avenue from Diamond Bar Boulevard to City Limit (Construction)Project #: SI271LOCATIONTemple Ave southbound between Diamond Bar Blvd. and the city limitThe project includes the complete rehabilitation of the Diamond Bar side of Temple Ave between Diamond Bar Blvd. and the City limits (past Golden Springs Dr). Based on existing pavement conditions, the treatment is expected to include an AC edge grind or a full-width overlay, along with ADA curb ramp improvements.DRAFTPage 207 of 346 DESCRIPTIONSTATUSNEWTIMELINE StartApril 2027Completion June 2027ESTIMATED COSTMeasure M $1,000,000Measure R $1,000,000RMRA$1,500,000Hauler Fees $180,000Total Budget $3,680,000LOCATIONResidential and Collector Streets Rehabilitation - Area 5 (Construction)Project #: SI272Area 5 is located towards the north of the City between the 60 Freeway, Diamond Bar Blvd., and the neighborhood north of Pantera Park.The project includes the application of slurry seal over the existing pavement with an AC edge grind and overlay. This type of maintenance activity is performed annually throughout the City on residential streets to extend the life of the roadways.DRAFTPage 208 of 346 DESCRIPTIONSTATUSNEWTIMELINEStartMay 2027Completion June 2027ESTIMATED COSTCDBG189,734$ Total Budget 189,734$ Area 7 is located towards the north west of the City between Grand Ave. on the south, the City limits on the north and west, and Armitos on the north east (neighborhood north of Pantera Park).LOCATIONCDBG Area 7 ADA Curb Ramp Project (Construction)Project #: SI273The project includes upgrading existing curb ramps and installing new curb ramps that meet the latest Federal ADA Compliance Standards. DRAFTPage 209 of 346 DESCRIPTIONSTATUSNEWTIMELINECons. Start February 2027Completion June 2027ESTIMATED COSTCitywideProp C Fund 66,000$ Total Budget 66,000$ Battery Back Up and CCTV Replacement Program FY26/27 (All)Project #: TM271The Battery Back Up and CCTV project will replace existing aging equipment that was originally installed from 2008 to 2011.LOCATIONDRAFTPage 210 of 346 DESCRIPTIONSTATUSOngoing - with New RequestTIMELINEStartJuly 2026Completion October 2026ESTIMATED COSTMeasure W- ApprovedMeasure W- New Request$500,000Total Budget$880,000LOCATIONFull Capture Devices on Stormwater Catchbasin for Trash Amendment Compliance - Phase 1Project #: PW253City-wide.Per the State Water Quality Control Board’s Trash Amendment Compliance requirements, the City is required to install full-capture trash filters on the stormwater catch basins in certain areas. $380,000DRAFTPage 211 of 346 DESCRIPTIONSTATUSNEWTIMELINEStartApril 2027Completion June 2027ESTIMATED COSTMeasure W200,000$ Total Budget200,000$ Chino Hills Parkway Erosion Control (Construction)Project #: PW271Permanent erosion control low-impact development BMP measures for the median on Chino Hills Parkway LOCATIONChino Hills Parkway within the City limits (where needed)DRAFTPage 212 of 346 STATUSOngoing with new request (to add construction)TIMELINEStartAugust 2025Completion June 2027ESTIMATED COSTLOCATIONGeneral Fund-Approved Park Development$150,000 (for design)Total Budget$400,000Sycamore Canyon Park Lower Bridge Replacement Options (All)Project #: FP258Sycamore Canyon Park, located at 22930 Golden Springs Dr.DESCRIPTIONThe pedestrian bridge will be removed, and a new pathway will be built for access from the lower parking area to the trails system. Additional funds are requested to move the project from the design phase to the construction phase. The construction phase will use the savings from the design phase.$250,000 (for construction)DRAFTPage 213 of 346 DRAFTPage 214 of 346 401 - DEBT SERVICE FUND FUND DESCRIPTION This fund was established to account for governmental debt incurred by the City. The Debt Service fund will account for the payment of principal, interest and related administrative costs incurred (e.g. bank fees). The General Fund makes a transfer-in to the Debt Service Fund to provide the resources needed to meet the City’s debt obligations. The City’s only outstanding debt relates to the 2002 financing needed for the acquisition and construction of the Diamond Bar Center. In May 2021, the City refunded $7.83 million of the outstanding Lease Revenue Bonds associated with the original 2002 acquisition and construction of the Diamond Bar Center. This achieved a gross savings of $1.736 million and present value savings of $1.633 million (or 20.85%) which translates to approximately $144,700 in average annual debt service savings to the General Fund for the remainder of the term (June 2033), and an effective interest rate of 1.15%. The 2021 Bonds were rated by S&P as AA+ (top rating for this type of bond) which is a testament to the City Council's prudent fiscal policies. The total debt service (principal and interest) will be $712,600 for FY 2023-24. The current bonds mature June 1, 2033 and the outstanding amount is approximately $5.8 million as of July 1, 2023. The City’s legal debt limit as of June 30, 2022 is $422,238,938. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 215 of 346 BUDGET DETAIL 401 - Debt Service 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $1,976 $0 $0 $0 INVESTMENT INCOME TOTAL $1,976 $0 $0 $0 Interfund Transfers (49100) Transfer In - General Fd $717,935 $729,700 $729,700 $726,000 INTERFUND TRANSFERS TOTAL $717,935 $729,700 $729,700 $726,000 REVENUES TOTAL $719,911 $729,700 $729,700 $726,000 Expenses Operating Exp (52255) Banking Charges $6,000 $6,500 $6,500 $4,000 OPERATING EXP TOTAL $6,000 $6,500 $6,500 $4,000 Misc Expenditures (57000) Bond Principal $505,000 $530,000 $530,000 $550,000 (57100) Interest Expense $229,500 $193,200 $193,200 $172,000 MISC EXPENDITURES TOTAL $734,500 $723,200 $723,200 $722,000 EXPENSES TOTAL $740,500 $729,700 $729,700 $726,000 REVENUES LESS EXPENSES -$20,589 $0 $0 $0 DRAFTPage 216 of 346 DRAFTPage 217 of 346 501 - SELF INSURANCE FUND FUND DESCRIPTION This fund was originally established in 1989 to pay all self-assumed losses and related costs. The City became a member of the California Joint Powers Insurance Authority in 1990 to provide a variety of insurance programs reducing the City's exposure to potential losses. This fund was amended in FY 2025/26 to provide for potential uninsured losses, claims and deductibles. Contributions to this fund are from the General Fund. BUDGET DETAIL 501 - Self Insurance Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $23,590 $10,000 $10,000 $0 (48510) Unrealized Gain/Loss Fmv $11,765 $0 $0 $0 INVESTMENT INCOME TOTAL $35,355 $10,000 $10,000 $0 Interfund Transfers (49100) Transfer In - General Fd $580,000 $0 $0 $820,807 INTERFUND TRANSFERS TOTAL $580,000 $0 $0 $820,807 REVENUES TOTAL $615,355 $10,000 $10,000 $820,807 Expenses Misc Expenditures (57200) Crime Insurance $2,200 $2,408 $2,408 $2,588 (57202) Property Insurance $78,423 $83,011 $83,011 $68,424 (57204) Pollution Insurance $3,854 $4,541 $4,541 $4,795 (57210) Liability Insurance $449,641 $560,784 $560,784 $745,000 MISC EXPENDITURES TOTAL $534,118 $650,744 $650,744 $820,807 Interfund Transfer Out $0 $100,000 $100,000 $0 EXPENSES TOTAL $534,118 $750,744 $750,744 $820,807 REVENUES LESS EXPENSES $81,237 -$740,744 -$740,744 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 218 of 346 502 - VEHICLE MAINTENANCE & REPLACEMENT FUND FUND DESCRIPTION This fund was established in FY 1999/2000 to incorporate a method for the eventual replacement of the City's vehicles and associated equipment. The vehicles and equipment will be capitalized over its useful life expectancy. Beginning with FY 2015/2016 the fleet fuel and maintenance costs will also be tracked in this fund. The necessary funds to cover the costs incurred are transferred from the General Fund. BUDGET DETAIL 502 - Vehicle Maintenance & Equipment 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $15,677 $6,000 $6,000 $6,000 (48510) Unrealized Gain/Loss Fmv $7,819 $0 $0 $0 INVESTMENT INCOME TOTAL $23,496 $6,000 $6,000 $6,000 Interfund Transfers (49100) Transfer In - General Fd $269,000 $296,500 $296,500 $136,500 (49251) Transfer In - Ab2766 $0 $0 $0 $35,000 INTERFUND TRANSFERS TOTAL $269,000 $296,500 $296,500 $171,500 REVENUES TOTAL $292,496 $302,500 $302,500 $177,500 Expenses Operating Exp (52307) Rental/Lease - Vehicles $0 $0 $0 $35,000 (52312) Vehicle Maintenance $55,110 $68,500 $68,500 $61,500 (52330) Fuel $31,131 $43,000 $43,000 $40,000 (53000) Depreciation Expense $39,646 $0 $0 $0 OPERATING EXP TOTAL $125,887 $111,500 $111,500 $136,500 Capital Outlay Exp (56115) Vehicles $29,292 $150,000 $150,000 $0 (56999) Capital Expense Contra -$29,119 $0 $0 $0 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 219 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget CAPITAL OUTLAY EXP TOTAL $173 $150,000 $150,000 $0 EXPENSES TOTAL $126,060 $261,500 $261,500 $136,500 REVENUES LESS EXPENSES $166,436 $41,000 $41,000 $41,000 DRAFTPage 220 of 346 503 - EQUIPMENT MAINTENANCE & REPLACEMENT FUND FUND DESCRIPTION This fund has been established to assist the City in funding and anticipating various equipment replacement and/or enhancements. The equipment will be capitalized over the life expectancy and the amount will be transferred into this fund from the General Fund. BUDGET DETAIL 503 - Equipment Maintenance & Replacement Official 2024-25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $54,576 $8,000 $8,000 $8,000 (48510) Unrealized Gain/Loss Fmv $27,218 $0 $0 $0 INVESTMENT INCOME TOTAL $81,794 $8,000 $8,000 $8,000 Interfund Transfers (49100) Transfer In - General Fd $53,580 $0 $0 $0 (49104) Transfer In - Tech Reserve $705,000 $250,000 $250,000 $0 INTERFUND TRANSFERS TOTAL $758,580 $250,000 $250,000 $0 REVENUES TOTAL $840,374 $258,000 $258,000 $8,000 Expenses Operating Exp (53000) Depreciation Expense $33,042 $0 $0 $0 OPERATING EXP TOTAL $33,042 $0 $0 $0 Capital Outlay Exp (56130) Computer Eq - Hardware Exp $499,528 $187,000 $381,400 $63,000 (56135) Computer Eq - Software Exp $1,592 $145,000 $837,082 $145,000 CAPITAL OUTLAY EXP TOTAL $501,120 $332,000 $1,218,482 $208,000 EXPENSES TOTAL $534,162 $332,000 $1,218,482 $208,000 REVENUES LESS EXPENSES $306,212 -$74,000 -$960,482 -$200,000 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 221 of 346 504 - BUILDING FACILITY & MAINTENANCE FUND FUND DESCRIPTION This fund was established in FY 2012/2013 to incorporate a method to fund the eventual replacement of equipment and capital repairs at City Hall, Diamond Bar Center and other City facilities. BUDGET DETAIL (REVENUES) 504 - Building Facility & Maintenance Revenues 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Investment Income (48500) Investment Earnings $86,758 $10,800 $10,800 $10,800 (48510) Unrealized Gain/Loss Fmv $43,268 $0 $0 $0 INVESTMENT INCOME TOTAL $130,026 $10,800 $10,800 $10,800 Interfund Transfers (49100) Transfer In - General Fd $154,200 $0 $0 $100,000 (49501) Transfer In - Self Insurance $0 $100,000 $100,000 $0 INTERFUND TRANSFERS TOTAL $154,200 $100,000 $100,000 $100,000 TOTAL $284,226 $110,800 $110,800 $110,800 BUDGET DETAIL (EXPENSES) 504 - Building Facility & Maintenance Expenses 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Operating Exp (53000) Depreciation Expense $21,809 $0 $0 $0 OPERATING EXP TOTAL $21,809 $0 $0 $0 Capital Outlay Exp City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 222 of 346 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget (56100) Capital Outlay Expense $229,429 $89,000 $208,500 $0 CAPITAL OUTLAY EXP TOTAL $229,429 $89,000 $208,500 $0 Interfund Transfer Out (59301) Transfer Out - Cip Fund $10,000 $0 $0 $0 INTERFUND TRANSFER OUT TOTAL $10,000 $0 $0 $0 TOTAL $261,237 $89,000 $208,500 $0 DRAFTPage 223 of 346 DRAFTPage 224 of 346 601 - OTHER POST EMPLOYMENT BENEFITS (OPEB) TRUST FUND FUND DESCRIPTION This fund was established in accordance with the GASB Statement 74 (previously GASB 43) for Post Employment Benefit Plans Other Than Pension Plans. BUDGET DETAIL 601 - OPEB Trust Official 2024 - 25 Actual 2025-26 Adopted Budget 2025-26 Revised Budget 2026-27 Proposed Budget Revenues Investment Income (48500) Investment Earnings $75,124 $26,600 $26,600 $26,600 INVESTMENT INCOME TOTAL $75,124 $26,600 $26,600 $26,600 Interfund Transfers (49105) Transfer In - Opeb Reserve $88,000 $88,000 $88,000 $88,000 INTERFUND TRANSFERS TOTAL $88,000 $88,000 $88,000 $88,000 REVENUES TOTAL $163,124 $114,600 $114,600 $114,600 REVENUES LESS EXPENSES $163,124 $114,600 $114,600 $114,600 City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 225 of 346 DRAFTPage 226 of 346 GLOSSARY Accounting System - The set of records and procedures that are used to record, classify, and report information of the financial status and operations of an entity. Accrual - The basis of accounting by which revenues are recorded when earned and expenditures are recorded as soon as they result in liabilities for benefits received. Agency Fund - An assemblage of funds that one government agency holds on behalf of another government agency. Appropriation - Money set aside by the City Council for a specific purpose. Appropriation Limit - The calculated dollar amount that restricts the ability to receive and appropriate proceeds of taxes. Balanced Budget - A balanced budget is defined as a budget in which operating revenues should cover operating expenditures, including debt service. The ending fund balance must meet minimum policy levels. For the general fund, this level has been stablished at 25%. Under this policy, it is allowable for total expenditures to exceed revenues in a given year; however, in this sutation, beginning fund balance can only be used to fund capital improvement plan projects, or other "one-time," non-recurring expenditures. Baseline Budget - A baseline budget serves as the starting point for City departments' budget, and typically includes initial revenue and expenditure projections. Beginning/Ending Fund Balance - Unencumbered resources available in a fund from the prior/current year after payment of the prior/current year expenses. Budget - The City's financial plan for the 12 month period through June, which details spending priorities for the year and how the City will pay for them. Budget Calendar - The schedule of key dates or milestones, which the City follows in the preparation and adoption of the budget. Capital Improvement Program (CIP) - Funds used to account for the purchase or construction of major capital projects, which are not financed by proprietary, special assessment or trust funds. Capital Outlays - Expenditures for the acquisition of capital assets. City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 227 of 346 Capital Project - Any improvement or acquisition of major facilities with a useful life of at least five years such as roads, bridges, buildings, or land. Carry-over - Funding approved in the current budget but not expended during a particular fiscal year. These appropriations are carried forward into the next fiscal year for their original intended purpose. Community Development Block Grants (CDBG) - Funds established to account for revenues from the federal government and expenditures as prescribed under the Community Development Block Grant program. Cost Allocation - A method used to charge general fund overhead costs to other funds such as an Internal Service Fund. Debt - An obligation resulting from the borrowing of money or for the purchase of goods and services. Debt Service - Interest and principal payments on debt issued for major projects. Department - An organizational unit comprised of programs or divisions. Encumbrance - A legal obligation to pay funds, an expenditure of which has not yet occurred. Expense - A cost incurred for operations, maintenance, interest or other charges. Fee - A general term used for any charge levied by government for providing a service or performing an activity. Fiscal Year (FY) - A 12-month accounting period that doesn't necessarily correspond to the calendar year. Diamond Bar's fiscal year starts on July 1 and in any given year and ends on June 30 of the following year. Franchise Fees - Companies are granted special privileges for the continued use of public property, such as city streets. Such companies usually involve elements of monopoly and may require regulation. The Franchise Fees are the amounts required for the continued granting of these privileges. Franchises currently granted within the City are Electric, Gas, Cable TV, Bus Benches, and Waste Hauler. Full-Time Equivalent (FTE) - A position converted to the decimal equivalent of a full-time position based on 2,080 hours per year. Fund - A self-balancing set of accounts. Fund Balance - The amount of financial resources in a given fund that are not restricted to fund existing commitments and are therefore available for any use permitted for the fund. Gann Limit (Proposition 4) - Under this article of the California Constitution, the City must compute an annual appropriation limit that states a ceiling on the total amount of tax revenues the City can appropriate annually. General Fund - A general fund typically is the chief operating fund of a government. Interfund Transfers - Payments from one fund to another fund, primarily for work or services provided. Internal Service Fund - A fund accounting for centralized services provided to various City departments where the cost is reimbursed. Operating Budget - The annual appropriation of funds for on-going program costs, which include salaries, benefits, maintenance, operation, and capital outlay items.DRAFTPage 228 of 346 Operating Costs - Estimated expenses that can be expected to occur. PERS or CalPERS - The California Public Employees Retirement System, which is the agency providing pension benefits to all city employees. Restricted Fund Balance - The part of a fund that is legally limited to a specific use. Revenue - Sources of income that finance the operations of government. Sales and Use Tax - As a result of the Bradley-Burns Local Sales and Use tax law, 1% of the Sales & Use Tax is to be distributed to the City. Special Revenue Funds - A fund that collects revenues that are restricted by the City, State or federal government as the method by which they may be spent. Transient Occupancy Tax (TOT) - These revenues are received on a monthly basis from the hotels in the City. The hotels are required to pay a 10% tax based on the amount of their room rental revenues. Unrestricted Fund Balance - The part of a fund not restricted for a specific use and available for general use. Vehicle License Fee (VLF) - Are collected by the State of California when vehicles are registered with the California Department of Motor Vehicles and distributed to various public agencies, including the City.DRAFTPage 229 of 346 APPROPRIATION LIMIT CALCULATION (GANN LIMIT) Article XIIIB of the California State Constitution, more commonly referred to as the Gann Initiative or Gann Limit, was approved by California voters in November 1979 and placed limits on the amount of proceeds of taxes that state and local governmental agencies can receive and spend in one year. The limit is different for each agency and the limit changes each year. Each year's limit is based on the amount of tax proceeds that were authorized to be spent in fiscal year 1978-79 in each agency, modified for changes in inflation and population in each subsequent year. For cities which incorporated after 1978-79, such as the City of Diamond Bar, the initial appropriations limit was set by the voters at the time of incorporation. The City of Diamond Bar's base year is 1989-90. Each year the City Council must adopt, by resolution an appropriations limit for the following year. The factor that the City uses to compute the appropriation limit is based on the growth factor of the County population change over the prior year and the change in the California per capita income. By using this factor the City will have an appropriation limit of $68,333,798 for FY 2026-27.  City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov DRAFTPage 230 of 346 1989-90 Base Year 9,882,416 1990-91 Adjusted Base 10,785,669 1991-92 Adjusted Base 11,585,192 1992-93 Adjusted Base 11,762,247 1993-94 Adjusted Base 12,275,495 1994-95 Adjusted Base 13,169,824 1995-96 Adjusted Base 14,005,207 1996-97 Adjusted Base 14,729,615 1997-98 Adjusted Base 15,608,665 1998-99 Adjusted Base 16,482,389 1999-00 Adjusted Base 17,561,562 2000-01 Adjusted Base 18,772,045 2001-02 Adjusted Base 20,576,003 2002-03 Adjusted Base 22,364,058 2003-04 Adjusted Base 24,723,466 2004-05 Adjusted Base (revision)25,886,770 2005-06 Adjusted Base (revision)27,569,946 2006-07 Adjusted Base 28,885,277 2007-08 Adjusted Base 30,379,173 2008-09 Adjusted Base 31,954,909 2009-10 Adjusted Base 33,809,489 2010-11 Adjusted Base 33,408,743 2011-12 Adjusted Base 34,377,442 2012-13 Adjusted Base 35,809,031 2013-14 Adjusted Base 37,902,186 2014-15 Adjusted Base 38,109,968 2015-16 Adjusted Base 39,891,361 2016-17 Adjusted Base 42,563,150 2017-18 Adjusted Base 44,385,292 2018-19 Adjusted Base 46,248,905 2019-20 Adjusted Base 48,024,685 2020-21 Adjusted Base 49,761,208 2021-22 Adjusted Base 53,402,669 2022-23 Adjusted Base 57,026,785 2023-24 Adjusted Base 59,112,083 2024-25 Adjusted Base 61,282,567 2025-26 Adjusted Base 65,424,852 2026-27 Adjusted Base 68,333,798 CITY OF DIAMOND BAR ANNUAL APPROPRIATIONS LIMIT 2026-27 DRAFTPage 231 of 346 FUND & DEPARTMENT RELATIONSHIP City of Diamond Bar Budget Fiscal Year 26/27 www.diamondbarca.gov 262 248 Recreation, Public Works SEWER MITIGATION FUND CITIZENS OPTION PUBLIC SAFETY CAPITAL IMPROVEMENT FUND City Manager's Office HAZARD MITIGATION GRANT FUND PARK & FACILITIES DEV FUND 254 Recreation, Public Works City Manager's Office 260 QUIMBY FUND TRAFFIC MITIGATION FUND City Manager's Office MEASURE A NEIGHBORHOOD PARKS ACT Public Works TRES HERMANOS CONSRVTN AUTHORITY FUND INTEGRATED WASTE MGMT FUND AIR QUALITY IMPROVEMENT FUND City Manager's Office, Information Systems251 USED MOTORO OIL BLOCK GRANT 250 BEVERAGE CNTNR RECYCLING GRNT 255 Public Works 253 247 City Manager's Office 256 WASTE HAULER FUND City Manager's Office 261 LOCAL ROADWAY SAFETY PLAN FUND Public Works City Manager's Office 252 Recreation, Public Works 270 PEG FEES FUND Community Relations Division, Information Systems 280 City Manager's Office CIP FUND Public Works, Recreation DEBT SERVICE FUND 401 DEBT SERVICE FUND Finance 501 SERLF INSURANCE FUND Human Resources Division 301 502 Public Works INTERAL SERVICE FUNDS 503 EQUIP MAINT & REPLACEMENT FUND Information Systems VEHICLE MAINTENANCE & EQUIP FD 504 BUILDING FACILITY & MAINT FUND FIDUCIARY FUND Public Works OPEB TRUST601 Finance COMMUNITY ORGANIZATION SUPPORT 102 201 207 209 City Manager's Office, Public Works Public Works 103 107 OPEB RESERVE CASP(SB1186) FEE FUND MEASURE W LOCAL RETURN FUND 204 ROAD MAINT & REHAB (SB-1) MEASURE M LOCAL RETURN FUND MEASURE R LOCAL RETURN FUND PROP A - TRANSIT TAX FUND SB 821 TDA ARTICLE 3 FUND Public Works PROP C - TRANSIT TAX FUND COMMUNITY DEV BLOCK GRANT GENERAL PLAN UPDATE City Manager's Office Community Development GAS TAX FUND 104 Finance 203 101 Finance HOMELESSNESS RESPONSE FUND Public Works City Manager's Office Public Works 206 202 TECHNOLOGY RESERVE 105 Engineering Division Public Works LAW ENFORCEMENT RESERVE 205 Public Works, Community Development, Finance, Information Systems Public Works, Community Development, Finance, Information Systems 224 PERMANENT LOCAL HOUSING ALLOCATION Planning Division 225 Planning Division 226 Planning Division 238 LANDSCAPE MAINT DIST #38 FUND 239 LANDSCAPE MAINT DIST #39-2022 FUND Public Works Public Works 241 LANDSCAPE MAINT DIST #41-2021 FUND Public Works 245 STREET BEAUTIFICATION FUND Public Works 246 All NON-MAJOR FUND: SPECIAL/SPECIAL REVENUE FUNDS Fund & Department Relationship 2026-27 Fiscal Year CITY OF DIAMOND BAR GENERAL FUND 100 GENERAL FUND DRAFTPage 232 of 346 ANNUAL BUDGET Fiscal Year 2027 City of Diamond Bar Fiscal Year 2027 909-839-7000 21810 Copley Drive, Diamond Bar, CA 91765 www.diamondbarca.govEdison Rodriguez - Bee the Sunshine Raymond Wong - Heart of the HillsideDoris Yiang - Spring’s HereJuly 1, 2026-June 30, 2027 2025 Through My Lens Photo Contest Winners DRAFTPage 233 of 346 Est 2026-27 Proposed 2026-27 2027-28 2028-29 2029-30 2030-31 2031-32 2032-33 2033-34 2034-35 2035-36 REVENUES CHARGES FOR SERVCIE (ROLLUP) 2,963$ 4,715$ 4,763$ 4,810$ 4,858$ 4,907$ 4,956$ 5,005$ 5,056$ 5,106$ 5,157$ COST REIMBURSEMENTS 161 175 177 179 181 182 184 186 188 190 192 FINES & FORFEITURES 374 371 375 378 382 386 390 394 398 402 406 FROM OTHER AGENCIES - - - - - - - - - - - FRANCHISE FEES 1,535 1,457 1,470 1,483 1,497 1,510 1,524 1,537 1,551 1,565 1,579 PROP TFR TAX 330 300 300 300 300 300 300 300 300 300 300 SALES TAX 6,555 6,316 6,417 6,520 6,624 6,730 6,838 6,947 7,058 7,171 7,286 TRANSIENT OCCUPANCY TAX 1,463 1,539 1,554 1,570 1,586 1,601 1,618 1,634 1,650 1,667 1,683 PROPERTY TAXES 7,222 7,013 7,265 7,527 7,798 8,079 8,370 8,671 8,983 9,306 9,641 STATE REVENUE - MOTOR VEHICLE IN LIEU 66 65 66 66 67 68 68 69 70 70 71 STATE REVENUE - PROP TAX IN LIEU OF VLF 8,399 8,399 8,702 9,015 9,339 9,676 10,024 10,385 10,759 11,146 11,547 TRANSFERS IN-OTHER FUNDS 1,672 1,648 1,672 1,697 1,723 1,749 1,775 1,801 1,828 1,856 1,884 USE OF MONEY AND PROPERTY: INVESTMENTS 1,019 960 994 1,020 955 865 727 555 327 76 - USE OF MONEY AND PROPERTY: MISCELLANEOUS 16 17 17 17 17 17 17 17 17 17 17 USE OF MONEY AND PROPERTY: RENTS & CONCESSIONS 1,136 1,163 1,198 1,234 1,271 1,309 1,348 1,389 1,430 1,473 1,517 REVENUES TOTAL 32,911$ 34,139$ 34,969$ 35,816$ 36,597$ 37,378$ 38,138$ 38,890$ 39,615$ 40,346$ 41,281$ 1.8%5.6%2.4%2.4%2.2%2.1%2.0%2.0%1.9%1.8%2.3% EXPENSES CAPITAL OUTLAY 69$ 74$ 81$ 90$ 98$ 108$ 119$ 131$ 144$ 159$ 174$ CONTRACT SERVICES 14,372 14,298 14,900 15,527 16,181 16,862 17,572 18,312 19,083 19,886 20,723 OPERATING EXPENSE 4,161 3,622 3,540 3,980 3,903 4,374 4,303 4,808 4,744 5,286 5,231 PERSONNEL 12,119 12,298 12,851 13,429 14,034 14,665 15,325 16,015 16,735 17,488 18,275 PROFESSIONAL SERVICES 1,400 1,081 1,118 1,158 1,198 1,240 1,283 1,328 1,375 1,423 1,473 SUPPLIES 557 506 522 537 553 570 587 605 623 641 661 TRANSFER-OUT 966 1,505 2,006 2,220 2,473 2,775 3,134 3,561 4,071 4,680 5,408 DEBT SERVICE 722 726 730 732 728 728 732 634 - - - EXPENSES TOTAL 34,365$ 34,109$ 35,749$ 37,672$ 39,169$ 41,322$ 43,055$ 45,394$ 46,776$ 49,564$ 51,945$ 6.4%5.6%4.8%5.4%4.0%5.5%4.2%5.4%3.0%6.0%4.8% ADDITION/(USE) OF FUND BALANCE (1,454) 29 (780) (1,856) (2,572) (3,944) (4,918) (6,504) (7,161) (9,218) (10,664) Cummulative Addition/(Use) of Fund Balance (1,454) (780) (2,636) (5,207) (9,151) (14,069) (20,573) (27,734) (36,952) (47,616) Remaining Fund Balance 29,913$ 29,134$ 27,278$ 24,706$ 20,762$ 15,845$ 9,340$ 2,179$ (7,038)$ (17,703)$ Revenue Needed to Restore FY 25/26 Programming 987$ 1,029$ 1,072$ 1,117$ 1,164$ 1,213$ 1,264$ 1,317$ 1,373$ 1,431$ Revenue Needed to Retain Current FY 26/27 Service Levels 780 1,856 2,572 3,944 4,918 6,504 7,161 9,218 10,664 Total Revenue Needed 987$ 1,808$ 2,928$ 3,688$ 5,108$ 6,131$ 7,768$ 8,478$ 10,591$ 12,095$ Long-Term General Fund Forecast Status Quo Scenario: FYs 2026/27 to 2035/36 Compounded Effect of Structural Deficit Erodes General Fund Reserves by FY 2034/35 Page 234 of 346 % Change FY 2024/25 FY 2025/26 Adopted FY 2025/26 Revised FY 2025/26 Actuals FY 2026/27 Proposed Adopted FY 25/26 to Actuals Budget Budget thru 05/08/2026 Budget FY 26/27 REVENUES Property Taxes 6,355,019$ 6,971,047$ 6,971,047$ 6,055,901$ 7,013,000$ 0.6% Sales Tax, TOT & Franchise Fees 9,440,687 9,713,590 9,476,727 6,524,615 9,611,937 -1.0% State Revenue 7,915,394 8,172,449 8,172,449 4,148,013 8,464,320 3.6% From Other Agencies - - - - - - Fines & Forfeitures 370,172 370,000 415,000 348,398 371,000 0.3% Service Charges 2,880,216 2,933,635 3,504,751 2,890,506 4,715,363 60.7% Use of Money & Property 3,299,305 2,367,700 2,368,500 1,448,068 2,140,260 -9.6% Cost Reimbursements 183,498 159,230 383,540 362,538 175,230 10.0% Transfers-In 1,484,686 1,647,500 1,647,500 1,228,125 1,647,500 0.0% Total Revenues 31,928,977$ 32,335,151$ 32,939,514$ 23,006,162$ 34,138,610$ 5.6% EXPENDITURES City Council (110)194,496$ 219,954$ 219,954$ 164,664$ 233,004$ 5.9% City Attorney (120)435,735 261,000 693,691 511,676 333,600 27.8% City Manager (130)1,228,680 1,331,322 1,409,757 1,009,128 1,258,958 -5.4% City Clerk (140)491,334 453,536 470,384 392,543 720,217 58.8% Economic Development (150)415,504 490,631 564,131 354,923 455,187 -7.2% Finance (210)899,839 948,158 958,158 800,545 979,802 3.3% Human Resources (220)556,374 614,239 668,349 543,931 667,134 8.6% Information Systems (230)1,636,544 1,741,659 1,791,659 1,453,429 1,861,048 6.9% Community Relations (240)875,756 981,481 981,481 742,614 923,959 -5.9% Law Enforcement (310)8,615,145 9,324,390 9,326,890 6,116,233 9,418,290 1.0% Volunteer Patrol (320)181 4,000 4,000 573 4,000 0.0% Fire Protection (330)7,359 8,000 8,000 7,359 8,000 0.0% Animal Control (340)463,682 571,800 571,800 423,441 587,300 2.7% Emergency Preparedness (350)42,993 55,260 56,260 29,675 57,160 3.4% Planning (410)917,996 909,838 912,938 765,759 980,241 7.7% Building & Safety (420)1,139,057 1,105,875 1,361,325 1,034,034 1,660,187 50.1% Neighb Improvement (430)489,569 578,864 528,864 349,273 616,348 6.5% Diamond Bar Center (510)1,542,858 1,760,615 1,752,615 1,299,566 1,809,119 2.8% Recreation (520)2,437,811 2,763,223 2,828,723 2,034,098 2,746,377 -0.6% Public Works Admin. (610)690,671 668,205 698,205 679,459 660,609 -1.1% Engineering (615)405,102 732,474 852,474 305,751 765,254 4.5% Civic Center (620)710,954 832,867 968,367 674,807 867,759 4.2% Parks & Facilities Maint. (630)1,688,405 1,712,995 1,789,147 1,285,231 1,864,470 8.8% Landscape Maint. (645)338,317 422,800 422,800 389,367 328,800 -22.2% Road Maint. (655)1,969,041 2,197,590 2,182,590 1,341,203 2,071,555 -5.7% Transfers Out (900)3,574,000 1,595,375 3,146,859 1,290,398 2,231,111 39.8% Total Expenditures 31,767,405$ 32,286,151$ 35,169,421$ 23,999,678$ 34,109,489$ 5.6% Surplus/(Deficit)*161,572$ 49,000$ (2,229,907)$ (993,516)$ 29,121$ Proposed One-Time Expense Hazard Mitigation Plan Update 56,000$ One-Time Addition to/(Use of) Fund Balance (26,879)$ *Note: Revised FY 25/26 Budget includes one-time use of fund balance for amendments and carryovers. CITY OF DIAMOND BAR Budget Summary Proposed General Fund FY 2026/27 Page 235 of 346 Fund #Fund Title Estimated FB Reserves @ 07/01/26 Operating Revenues Transfers-In Total Resources Operating Expense Transfers-Out One-Time Appropriations Capital Improvement Program Total Uses Addition/(Use) of Fund Balance Est. Reserves @ 06/30/27 Fund Balance Notes 100 General Fund (+ 25% Contingency)29,940,218$ 32,491,110$ 1,647,500$ 34,138,610$ 31,822,378$ 2,287,111$ 56,000$ -$ 34,165,489$ (26,879)$ 29,913,339$ One-Time Tfr to Fd 256- - - - 101 Com Organization Support Fund 2,062 - 10,000 10,000 10,000 - - - 10,000 - 2,062 102 Law Enforcement Reserve Fund 1,273,654 - - - - 50,000 - - 50,000 (50,000) 1,223,654 103 General Plan Update Fund 138,731 - - - 12,000 - - - 12,000 (12,000) 126,731 104 Technology Reserve Fund 96,225 290,000 100,000 390,000 - - - - - 390,000 486,225 105 OPEB Reserve Fund 193,360 - 44,000 44,000 22,000 88,000 - - 110,000 (66,000) 127,360 107 Homelessness Response Fund 77,065 - 25,000 25,000 25,000 - - - 25,000 - 77,065 201 Measure W 774,398 838,000 - 838,000 610,996 - - 700,000 1,310,996 (472,996) 301,402 202 Road Maint. & Rehab (RMRA)1,289,529 1,554,856 - 1,554,856 - - - 1,500,000 1,500,000 54,856 1,344,385 203 Measure M Fund 490,792 996,477 - 996,477 21,373 - - 1,000,000 1,021,373 (24,896) 465,896 204 Measure R Fund 629,353 876,686 - 876,686 21,373 - - 1,000,000 1,021,373 (144,687) 484,666 205 Gas Tax Fund 746,925 1,592,886 - 1,592,886 66,000 1,435,000 - - 1,501,000 91,886 838,811 206 Prop A - Transit Fund 392,178 1,893,690 - 1,893,690 1,253,376 - - 70,000 1,323,376 570,314 962,492 207 Prop C - Transit Fund 532,353 1,187,414 - 1,187,414 856,396 - - 476,000 1,332,396 (144,982) 387,371 209 SB821 Trails (TDA)659 45,000 - 45,000 - - - - - 45,000 45,659 Pending Grant Reimb. 210 MTA Grants Fund - - - - - - - - - - - 224 PLHA Fund (120,920) 145,681 - 145,681 145,681 - - - 145,681 - (120,920) Pending Grant Reimb. 225 Community Dev Block Grant Fd (7,265) 399,734 - 399,734 210,000 - - 189,734 399,734 - (7,265) Pending Grant Reimb. 226 CASP (SB1186) Fund 65,005 8,200 - 8,200 60,000 - - - 60,000 (51,800) 13,205 238 Landscape Maint Dist - 38 115 272,167 88,879 361,046 361,085 - - - 361,085 (39) 76 239 Landscape Maint Dist - 39 504,549 708,383 42,533 750,916 713,235 - - - 713,235 37,681 542,230 241 Landscape Maint Dist - 41 106,635 330,164 17,392 347,556 453,996 - - - 453,996 (106,440) 195 245 Street Beautification 377,053 2,400 - 2,400 - - - - - 2,400 379,453 246 Traffic Mitigation Fund 8,941,949 150,000 - 150,000 - - 350,000 - 350,000 (200,000) 8,741,949 Design - Traffic Imrpov 247 Sewer Mitigation Fund 64,041 400 - 400 - - - - - 400 64,441 248 Tres Hermanos 6,923 - 120,000 120,000 120,000 - - - 120,000 - 6,923 250 Integrated Waste Mgt Fund 2,333,520 812,500 - 812,500 1,095,234 10,000 - - 1,105,234 (292,734) 2,040,786 251 Air Quality Improvement Fd 210,426 73,100 - 73,100 39,000 35,000 - - 74,000 (900) 209,526 252 Waste Hauler Fund 1,548 181,550 - 181,550 - - - 180,000 180,000 1,550 3,098 253 Used Oil Grant 29,845 7,921 - 7,921 7,721 - - - 7,721 200 30,045 CITY OF DIAMOND BAR Resources & Uses Fiscal Year 2026/27 Proposed Budget PROPOSED RESOURCES PROPOSED USES FISCAL IMPACTS Page 236 of 346 Fund #Fund Title Estimated FB Reserves @ 07/01/26 Operating Revenues Transfers-In Total Resources Operating Expense Transfers-Out One-Time Appropriations Capital Improvement Program Total Uses Addition/(Use) of Fund Balance Est. Reserves @ 06/30/27 Fund Balance Notes CITY OF DIAMOND BAR Resources & Uses Fiscal Year 2026/27 Proposed Budget PROPOSED RESOURCES PROPOSED USES FISCAL IMPACTS 254 Beverage Recycling Grant 48,070 15,332 - 15,332 13,532 - - - 13,532 1,800 49,870 255 Local Streets & Roads Grant Fund - - - - - - - - - - - 256 Hazard Mitigation Grant Fund 5,815 165,000 56,000 221,000 - - 221,000 - 221,000 - 5,815 Update Haz. Mit. Plan 260 Park Fees (Quimby) Fd 140,582 500 - 500 - - - - - 500 141,082 261 Measure A Neigh. Parks Act - - - - - - - - - - - 262 Park & Facility Development Fd 2,155,251 7,300 - 7,300 - - - 250,000 250,000 (242,700) 1,912,551 263 Prop A - Safe Neigh. Pks Fd - - - - - - - - - - - 270 PEG Fees Fund 417,000 68,800 - 68,800 50,000 - - - 50,000 18,800 435,800 280 Citizens Option for Public Sfty Fd 499,376 188,200 - 188,200 10,000 152,500 - - 162,500 25,700 525,076 301 Capital Improvement Project Fd - - - - - - - - - - - 401 Debt Service Fund - - 726,000 726,000 726,000 - - - 726,000 - - 501 Self Insurance Fund 315,479 - 820,807 820,807 820,807 - - - 820,807 - 315,479 502 Vehicle Maint & Replacement Fd 766,393 6,000 171,500 177,500 136,500 - - - 136,500 41,000 807,393 503 Comp. Equipment Maint & Repl Fd 459,543 8,000 - 8,000 208,000 - - - 208,000 (200,000) 259,543 504 Building Facility & Maint Fund 2,513,570 10,800 100,000 110,800 - - - - - 110,800 2,624,370 601 OPEB Trust Fund 1,060,547 26,600 88,000 114,600 - - - - - 114,600 1,175,147 - Grand Totals 57,472,552$ 45,354,851$ 4,057,611$ 49,412,462$ 39,891,683$ 4,057,611$ 627,000$ 5,365,734$ 49,942,028$ (529,566)$ 56,942,986$ Page 237 of 346 Agenda Item #: 7.1 Meeting Date: May 19, 2026 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager SUBJECT: City Council Minutes of the May 5, 2026 Regular Meeting. STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION: Approve the May 5, 2026 Regular City Council Meeting Minutes. FINANCIAL IMPACT: None. BACKGROUND: Government Code Section 36814 mandates the City Clerk to keep an accurate record of the City Council's proceedings. ANALYSIS: Minutes have been prepared and are being presented for approval. PREPARED BY: Kristina Santana, City Clerk, City Clerk's Office ATTACHMENTS: 1. May 5, 2026 City Council Regular Meeting Minutes Page 238 of 346 CITY OF DIAMOND BAR MINUTES OF THE CITY COUNCIL CLOSED SESSION, STUDY SESSION, AND REGULAR MEETING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT/CC-8/MAIN AUDITORIUM 21865 COPLEY DRIVE, DIAMOND BAR, CA 91765 MAY 5, 2026 1. CLOSED SESSION: Mayor Tye opened the Closed Session at 5:00 p.m. All Council Members were present. Conference with Legal Counsel - Existing Litigation Pursuant to Government Code § 54956.9(d)(1) Name of case: City of Diamond Bar v. County of Los Angeles, LACSC Case No. 25STCV15208 There were no public comments provided. No public comments were made. No reportable action was taken. Mayor Tye adjourned the Closed Session at 5:55 p.m. 2. STUDY SESSION: Mayor Tye opened the Study Session at 6:03 p.m. All Council Members were present. 2.1 Draft FY 2026/27 Capital Improvement Program (CIP) Budget & Draft Five-Year CIP Plan. Mayor Tye adjourned the Study Session at 6:25 p.m. 3. CALL TO ORDER: Mayor Tye called the Regular City Council meeting to order at 6:40 p.m. in the South Coast Air Quality Management District Main Auditorium, 21865 Copley Drive, Diamond Bar, CA 91765. PLEDGE OF ALLEGIANCE: Mayor Tye led the Pledge of Allegiance. INVOCATION: Associate Pastor Ab Kastl, Landmark Church. ROLL CALL: Council Members Andrew Chou, Stan Liu, Chia Yu Teng, Mayor Pro Tem Ruth M. Low, Mayor Steve Tye Absent: None. Staff present in person: Dan Fox, City Manager; Omar Sandoval, City Attorney; Ryan McLean, Assistant City Manager; Anthony Santos, Assistant to the City Manager; Amy Haug, Human Resources/Risk Management Director; Jason Jacobsen, Finance Director; Ryan Wright, Parks & Recreation Director; David Liu, Public Works Director/City Engineer; Hal Ghafari, Public Works Manager/Assistant City Engineer; Cecilia Arellano, Community Relations Manager; Joan Cruz, Administrative Coordinator; Kristina Santana, City Clerk. Page 239 of 346 MAY 5, 2026 PAGE 2 CITY COUNCIL Staff present telephonically: Greg Gubman, Community Development Director. Others present: Jason Sotelo, Deputy, Diamond Bar/Walnut Sheriff’s Station; Stephen Tousey, Captain, Diamond Bar/Walnut Sheriff’s Station; William Gamble, Assistant Fire Chief, Los Angeles County Fire Department. APPROVAL OF AGENDA: CA/Sandoval announced that the City Council met in Closed Session and there was no reportable action taken. CM/Fox confirmed there were no changes made to the agenda. Mayor Tye approved the agenda as presented. 4. SPECIAL PRESENTATIONS, CERTIFICATES, PROCLAMATIONS: 4.1 Certificate of Recognition to Edison Scholar James Wang. The City Council, along with Edison Representative Tiffany Tran presented the Certificate to James Wang. 5. CITY MANAGER REPORTS AND RECOMMENDATIONS: 5.1 Presentation of 2025 Public Safety Report. ACM/McLean gave the presentation and along with Captain Tousey, responded to Council Member questions. 6. PUBLIC COMMENTS: The following provided public comments: Cynthia Yu, Diamond Bar Library Manager William Gamble, Assistant Fire Chief, Los Angeles County Fire Department CC/Santana reported that no emails and were submitted and no guests on the teleconference line requested to speak under Public Comments. 7. SCHEDULE OF FUTURE EVENTS: CM/Fox presented the Schedule of Future Events. 8. CONSENT CALENDAR: MPT/Low moved, C/Chou seconded, to approve the Consent Calendar. Motion carried 5-0 by the following Roll Call vote: AYES: COUNCIL MEMBERS: Chou, Liu, Teng, MPT/Low, M/Tye NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None 8.1 Approved April 14, 2026 Special Study Session Minutes and April 21, 2026 Regular Council Meeting Minutes. 8.2 Ratified Check Register Dated April 8, 2026 through April 21, 2026 Totaling Page 240 of 346 MAY 5, 2026 PAGE 3 CITY COUNCIL $1,712,501.97. 8.3 Adopted March 2026 Treasurer’s Statement. 8.4 Adopted the Public Service Recognition Week Proclamation. 8.5 Adopted the Asian American and Pacific Islander Heritage Month Proclamation. 8.6 Approved Ordinance No. 05 (2026) Approving the Amendments to the Diamond Bar City Code Prohibiting Camping on Public Places and Interfering with Public Access, entitled: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR REPEALING DIAMOND BAR CITY CODE SECTION 10.16.115 AND ADDING CHAPTER 8.28 TO TITLE 8 OF THE DIAMOND BAR CITY CODE TO PROHIBIT CAMPING ON PUBLIC PLACES AND INTERFERING WITH PUBLIC ACCESS. 8.7 Approved Appropriation for Special Legal Counsel Services (Hansen Bridgett LLP). 8.8 Approved Appropriation for Special Legal Counsel Services (Atkinson, Adelson, Loya, Ruud and Romo). 9. PUBLIC HEARINGS: None. 10. COUNCIL CONSIDERATION: None. 11. COUNCIL SUBCOMMITTEE REPORTS AND MEETING ATTENDANCE REPORTS/COUNCIL MEMBER COMMENTS: The following Council Members provided a report on meetings attended at the expense of the local agency per Government Code 53232.3(d). Council Member Chou reported attending the Tres Hermanos Conservation Authority Public Hike on April 12, 2026 and the Cal Cities Leaders Summit in Sacramento on April 23, 2026. Council Member Teng reported attending the Sheriff’s Open House and the City’s Earth Day event on the same day. Mayor Pro Tem Low reported attending the Sanitation District meeting and the Niagara Economic Summit webinar. Page 241 of 346 MAY 5, 2026 PAGE 4 CITY COUNCIL 12. ADJOURNMENT: With no further business to conduct, M/Tye adjourned the Regular City Council Meeting at 7:26 p.m. Respectfully Submitted, __________________________ Kristina Santana, City Clerk The foregoing minutes are hereby approved this 19th day of May, 2026. __________________________ Steve Tye, Mayor Page 242 of 346 Agenda Item #: 7.2 Meeting Date: May 19, 2026 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager SUBJECT: Ratification of Check Register Dated April 22, 2026 through May 5, 2026 totaling $1,026,586.40. STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION: Ratify the Check Register. FINANCIAL IMPACT: Expenditure of $1,026,586.40. BACKGROUND: The City has established the policy of issuing accounts payable checks on a bi-weekly basis with City Council ratification at the next scheduled City Council Meeting. The attached check register containing checks dated April 22, 2026 through May 5, 2026 totaling $1,026,586.40 is being presented for ratification. ANALYSIS: All payments have been made in compliance with the City's purchasing policies and procedures. The attached Affidavit affirms that the check register has been audited and deemed accurate. PREPARED BY: Luisa Allen, Senior Accounting Technician, Finance ATTACHMENTS: 1. Check Register Affidavit 5-19-2026 2. Check Register 5-19-2026 Page 243 of 346 Page 244 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18788 4/24/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1450 BRIDGEGATE/VARIOUS - TC-1 100655 52210 $544.94 CHECK TOTAL $544.94 18789 4/24/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1450 BRIDGEGATE/VARIOUS - TC-1 100655 52210 $582.69 CHECK TOTAL $582.69 18790 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - BREA CYN/FALLOWFIELD/ETC - TC-1 100655 52210 $235.65 CHECK TOTAL $235.65 18791 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 22805 GLDN SPRGS/VARIOUS - TC-1 100655 52210 $3,568.70 CHECK TOTAL $3,568.70 18792 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 21010 WASHINGTON AVE - TC-1 100655 52210 $116.60 CHECK TOTAL $116.60 18793 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 2201 DBB PED - TC- 1 100655 52210 $32.76 CHECK TOTAL $32.76 18794 4/27/2026 SOUTHERN CALIFORNIA EDISON TRAFFIC CONTROL - 1798 DBB/22566 GLDN SPRGS - TC-1 100655 52210 $218.60 CHECK TOTAL $218.60 18795 4/27/2026 SOUTHERN CALIFORNIA EDISON PARKS 3334 1/2 BREA CYN RD (032526- 042326) 100630 52210 $46.18 CHECK TOTAL $46.18 18796 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 201 21118 $4.75 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 238 21118 $6.54 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 239 21118 $6.54 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 241 21118 $6.54 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 250 21118 $30.92 Page 245 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 207 21118 $45.28 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 206 21118 $117.99 4/24/2026 TASC FLEX SPENDING MEDICAL/CHILDCARE 04/24/2026 100 21118 $1,952.47 CHECK TOTAL $2,171.03 18797 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 239 21109 $133.74 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 241 21109 $133.74 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 201 21109 $151.15 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 238 21109 $258.76 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 250 21109 $467.86 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 206 21109 $488.56 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 207 21109 $685.45 4/24/2026 VANTAGEPOINT TRNSFR AGNTS- 303248 DEFERRED COMP CONTRIBUTIONS/LOAN PYMTS 04/24/2026 100 21109 $13,951.72 CHECK TOTAL $16,270.98 18798 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 203 21110 $46.51 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 239 21110 $166.20 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 241 21110 $166.20 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 238 21110 $246.57 Page 246 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 201 21110 $660.89 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 207 21110 $1,469.39 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 206 21110 $1,634.93 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 250 21110 $2,235.25 4/24/2026 CALPERS PENSION CONTRIBUTION 4/4/26-4/17/26 & 4/1-4/30/26 100 21110 $46,686.55 CHECK TOTAL $53,312.49 18799 5/5/2026 AARP AARP APRIL 26 100520 55310 $135.00 CHECK TOTAL $135.00 18800 5/5/2026 AIMTD LLC TRAFFIC COUNTS - PECAN GROVE 251650 54410 $1,200.00 CHECK TOTAL $1,200.00 18801 5/5/2026 ALL CITY MANAGEMENT SERVICES INC CROSSING GUARD SERVICES - 3/29/26 - 4/11 26 100310 55412 $6,245.19 CHECK TOTAL $6,245.19 18802 5/5/2026 ATKINSON, ANDELSON, LOYA, RUUD & ROMO PROFESSIONAL SERVICES - LEGAL 100220 54900 $6,708.98 CHECK TOTAL $6,708.98 18803 5/5/2026 BARR & CLARK INC PLHA HIP 323 WANG-23515 GRAND RIM CT. 224440 55580 $697.00 5/5/2026 BARR & CLARK INC HIP PLHA WANG - 23515 GRAND RIM CT. 224440 55580 $550.00 CHECK TOTAL $1,247.00 18804 5/5/2026 LINGO TELECOM LLC CITYWIDE ANALOG PHONE SYSTEM - APR 2026 100230 52200 $5,079.41 CHECK TOTAL $5,079.41 18805 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 318-TSE-24410 STAR CT. 225440 55570 $65.00 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 318 - TSE-24410 STAR CT. 225440 55570 $34.00 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 319-LI/YUAN-3318 BENT TWIG LANE 225440 55570 $65.00 5/5/2026 CHICAGO TITLE COMPANY CDBG HIP 319-LI/YUAN-3318 BENT TWIG LANE 225440 55570 $38.00 Page 247 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $202.00 18806 5/5/2026 COCO SUTZE CHENG CONTRACT CLASS - ZUMBA 100520 55320 $102.00 CHECK TOTAL $102.00 18807 5/5/2026 CORODATA MEDIA STORAGE INC DAILY TAPE ROTATION & STORAGE - MAR 2026 100230 54030 $850.99 CHECK TOTAL $850.99 18808 5/5/2026 CREATE & LEARN INC CONTRACT CLASS INSTRUCTOR PAYMENT 100520 55320 $561.60 CHECK TOTAL $561.60 18809 5/5/2026 CT & T CONCRETE PAVING INC ROAD MAINTENANCE SERVICES (032726) 100655 55512 $135,292.77 5/5/2026 CT & T CONCRETE PAVING INC ROAD MAINTENANCE SERVICES (TREEWELLCOVERREMOVE) 100655 55512 $18,130.00 CHECK TOTAL $153,422.77 18810 5/5/2026 DEPARTMENT OF JUSTICE LIVESCAN FEES 100220 52510 $288.00 CHECK TOTAL $288.00 18811 5/5/2026 DISCOVERY SCIENCE CENTER OF ORANGE ENVIRONMENTAL EDUCATION 250170 54900 $4,262.00 CHECK TOTAL $4,262.00 18812 5/5/2026 EXTERIOR PRODUCTS CORP MAINTENANCE & OPERATION SRVS (PONY041626) 262630 56104 $10,592.74 5/5/2026 EXTERIOR PRODUCTS CORP MAINTENANCE & OPERATION SUPPLIES/SERVICES 100630 52320 $4,500.04 CHECK TOTAL $15,092.78 18813 5/5/2026 FEHR & PEERS ON-CALL TRAFFIC/ENGR- VARIOUS PROJ - NOV 2025 100615 54410 $472.50 CHECK TOTAL $472.50 18814 5/5/2026 FOSTER & FOSTER CONSULTING ACTUARIES, INC PROF. SVCS - OPEB ACTUARIAL STUDY FY 2026 100210 54010 $945.00 CHECK TOTAL $945.00 18815 5/5/2026 FRONTIER COMMUNICATIONS CORP SUMMARY BILL - INTERNET SERVICE - APR 2026 100230 54030 $800.00 5/5/2026 FRONTIER COMMUNICATIONS CORP SUMMARY BILL - INTERNET SERVICES - APR 2026 100230 54030 $505.78 CHECK TOTAL $1,305.78 Page 248 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18816 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 201610 56101 $21,698.10 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56170 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56180 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 301610 56190 $86,792.40 5/5/2026 GENTRY BROTHERS INC DBB COMPLETE STREETS PROJECT 206610 56101 $151,886.70 CHECK TOTAL $433,962.00 18817 5/5/2026 GO2ZERO STRATEGIES LLC COMPOST EQUIPMENT 250170 51400 $1,810.00 CHECK TOTAL $1,810.00 18818 5/5/2026 GOVCONNECTION INC CI012126SCO NETWORK SWITCH (1) 503230 56130 $1,754.90 5/5/2026 GOVCONNECTION INC ANNUAL RENEWAL - VM WARE - FY 25- 26 100230 52314 $4,086.00 5/5/2026 GOVCONNECTION INC HP CAREPACK - ROZ, NABOO & TATOOINE 100230 52314 $23,885.00 CHECK TOTAL $29,725.90 18819 5/5/2026 HANSON BRIDGETT LLP LEGAL SERVICES - SEWER DISTRICT 100120 54022 $16,953.60 CHECK TOTAL $16,953.60 18820 5/5/2026 HDL COREN & CONE CONTRACT SVCS - PROPERTY TAX APR - JUNE 2026 100210 54010 $4,117.50 CHECK TOTAL $4,117.50 18821 5/5/2026 HEATHER JEN CHANG CONTRACT CLASS - YOUTH ART 100520 55320 $600.00 CHECK TOTAL $600.00 18822 5/5/2026 HELIX ENVIRONMENTAL PLANNING INC CANYON LOOP TRAIL RESTORATION- MARCH 2026 301630 56104 $3,680.72 CHECK TOTAL $3,680.72 18823 5/5/2026 INTEGRUS LLC RICOH COPY CHARGES - 3/15/26 - 4/18/26 100230 52314 $979.62 CHECK TOTAL $979.62 18824 5/5/2026 INTERIOR OFFICE SOLUTIONS INC OFFICE FURNITURE - PLANNING MANAGER OFFICE - DEP 504620 56100 $2,663.13 CHECK TOTAL $2,663.13 18825 5/5/2026 IT1 SOURCE LLC LOGITECH WEBCAMS (4) 100230 51200 $412.66 CHECK TOTAL $412.66 Page 249 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18826 5/5/2026 KALIBER ROOFING INC HIP323 PLHA WANG 23515 GRAND RIM CT. 224440 55580 $20,340.00 CHECK TOTAL $20,340.00 18827 5/5/2026 KUMBA INC WEDDING & EVENT EXPO RENTAL TENT 100510 52304 $750.00 CHECK TOTAL $750.00 18828 5/5/2026 LA COUNTY ASSESSOR OFFICE SBF ABSTRACT - MAR 2026 100230 52314 $200.00 CHECK TOTAL $200.00 18829 5/5/2026 LANDS' END INC UNIFORM JACKETS FOR FULLTIME STAFF 100240 51200 $84.42 CHECK TOTAL $84.42 18830 5/5/2026 LOOMIS COURIER SERVICES - APRIL 2026 100210 54900 $873.25 5/5/2026 LOOMIS COURIER SERVICES - APRIL 2026 100510 54900 $873.25 CHECK TOTAL $1,746.50 18831 5/5/2026 LOS ANGELES COUNTY PUBLIC WORKS SUMP PUMP MAINTENANCE (SYCAMORE CYN PARK) FY25-26 100630 52320 $939.03 5/5/2026 LOS ANGELES COUNTY PUBLIC WORKS CS - INDUSTRIAL WASTE SERVICES - THRU MAR 2026 100610 55550 $5,108.75 CHECK TOTAL $6,047.78 18832 5/5/2026 MAGNUS INTERNATIONAL TRADE SERVICES CORP PRESERVE DB FEEDBACK TRANSLATION CHINESE, KOREAN 100240 51200 $227.55 CHECK TOTAL $227.55 18833 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 100655 55530 $2,502.22 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 201655 55530 $3,430.43 5/5/2026 MCE CORPORATION ROAD MAINTENANCE MARCH 2026 100655 55528 $13,096.32 CHECK TOTAL $19,028.97 18834 5/5/2026 MICHAEL BAKER INTERNATIONAL INC CANYON LOOP TRAIL -HMMP PROJECT MANAGER 301630 56104 $1,652.63 CHECK TOTAL $1,652.63 18835 5/5/2026 MOBILE RELAY ASSOCIATES INC RECURRING SERVICES FOR EMERGENCY PREPARDNESS 100350 52300 $78.75 CHECK TOTAL $78.75 18836 5/5/2026 NATIONAL TRENCH SAFETY INC KRAIL EQUIP RENTAL GS SLOPE (041026- 041526) 100655 52300 $943.02 Page 250 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 5/5/2026 NATIONAL TRENCH SAFETY INC KRAIL EQUIP RENTAL GS/SG (CRANE PICKUP) 100655 52300 $487.50 CHECK TOTAL $1,430.52 18837 5/5/2026 NICHOLS CONSULTING ENGINEERS, CHTD ADA CURB RAMP IMPROVEMENT PROJ (AREA 6) 203615 56101 $25,525.00 CHECK TOTAL $25,525.00 18838 5/5/2026 OCCUPATIONAL HEALTH CENTERS OF CALIFORNIA PRE-EMPLOYMENT PHYSICAL FEES 100220 52510 $1,258.00 5/5/2026 OCCUPATIONAL HEALTH CENTERS OF CALIFORNIA PRE-EMPLOYMENT PHYSICAL FEES 100220 52510 $311.00 CHECK TOTAL $1,569.00 18839 5/5/2026 ONE TIME PAY VENDOR ESAUL PUENTES FACILITY REFUND 100 20202 $1,250.00 CHECK TOTAL $1,250.00 18840 5/5/2026 ONE TIME PAY VENDOR KIMM NASSER-FENN FACILITY REFUND 100 20202 $1,208.00 CHECK TOTAL $1,208.00 18841 5/5/2026 ONE TIME PAY VENDOR LIEN PHONGSA FACILITY REFUND 100 20202 $200.00 CHECK TOTAL $200.00 18842 5/5/2026 ONE TIME PAY VENDOR PAUL GHOTRA FACILITY REFUND 100 20202 $1,450.00 CHECK TOTAL $1,450.00 18843 5/5/2026 ONE TIME PAY VENDOR ANDREA CAMPBELL REIMB - TYLER CONNECT CONF 2026 100210 52415 $656.44 CHECK TOTAL $656.44 18844 5/5/2026 ONE TIME PAY VENDOR LUISA ALLEN REIMB - TYLER CONNECT CONF 2026 100210 52415 $518.42 CHECK TOTAL $518.42 18845 5/5/2026 ONE TIME PAY VENDOR TRICIA NEGRON REIMB - TYLER CONNECT CONF 2026 100210 52415 $595.06 CHECK TOTAL $595.06 18846 5/5/2026 ONE TIME PAY VENDOR - CND REFUND CJK CONSTRUCTION C&D REFUND: 610 RIDGEVIEW CT 100 22105 $250.00 CHECK TOTAL $250.00 18847 5/5/2026 ONE TIME PAY VENDOR - CND REFUND HOYT ROOFS INC C&D REFUND: 3425 PASADO DR 100 22105 $250.00 CHECK TOTAL $250.00 Page 251 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 18848 5/5/2026 ONE TIME PAY VENDOR - CND REFUND HUI XIA C&D REFUND: 24411 TOP CT 100 22105 $250.00 CHECK TOTAL $250.00 18849 5/5/2026 ONE TIME PAY VENDOR - CND REFUND JULIO LEMUS C&D REFUND: 2729 SUNBRIGHT DR 100 22105 $250.00 CHECK TOTAL $250.00 18850 5/5/2026 ONE TIME PAY VENDOR - CND REFUND MIKE BOI NGUYEN C&D REFUND: 24229 DOESKIN PL 100 22105 $650.00 CHECK TOTAL $650.00 18851 5/5/2026 ONE TIME PAY VENDOR - CND REFUND RANDY MANG C&D REFUND: 2545 HARMONY HILL DR 100 22105 $250.00 CHECK TOTAL $250.00 18852 5/5/2026 ONE TIME PAY VENDOR - CND REFUND VINCENT WHITLEY C&D REFUND: 334 S DIAMOND BAR BLVD 100 22105 $400.00 CHECK TOTAL $400.00 18853 5/5/2026 ONE TIME PAY VENDOR - CND REFUND YUAN ZHANG C&D REFUND: 21808 HEATHERLANE CT 100 22105 $250.00 CHECK TOTAL $250.00 18854 5/5/2026 PRINTING DYNAMICS INC CERTIFICATE PAPER - 1,000 100140 51400 $1,317.00 CHECK TOTAL $1,317.00 18855 5/5/2026 PRO1PRINT, LLC COFFEE WITH A COP AND THROUGH MY LENS POSTCARDS 100240 52110 $503.70 CHECK TOTAL $503.70 18856 5/5/2026 REINBERGER CORPORATION CERTIFICATE FRAME HOLDERS 100130 52110 $1,963.34 CHECK TOTAL $1,963.34 18857 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 4/24/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - CITY CLERK WK 4/24/2026 100140 54900 $312.00 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 3/6/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 4/3/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 3/13/2026 100210 54900 $1,420.80 5/5/2026 ROTH STAFFING COMPANIES, LP TEMP STAFFING - FINANCE WK 5/1/2026 100210 54900 $1,420.80 Page 252 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $7,416.00 18858 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502130 52330 $82.34 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502430 52330 $272.27 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502620 52330 $324.20 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502630 52330 $545.73 5/5/2026 SC FUELS FLEET FUEL (040126-041526) 502655 52330 $1,075.81 CHECK TOTAL $2,300.35 18859 5/5/2026 SHAW HR CONSULTING INC PROF. SVCS - HR CONSULTING 100220 54900 $3,317.50 CHECK TOTAL $3,317.50 18860 5/5/2026 SOCIAL ASSURANCE LLC ANNUAL RENEWAL - SOCIAL ASSURANCE FY-25-26 100230 52314 $3,500.00 CHECK TOTAL $3,500.00 18861 5/5/2026 SPECTRUM BUSINESS INTERNET SERVICE/HERITAGE PARK - APR 2026 100230 54030 $290.47 5/5/2026 SPECTRUM BUSINESS SUMMARY BILL - CABLE TV/INTERNET - MAY 2026 100230 54030 $1,942.60 5/5/2026 SPECTRUM BUSINESS CABLE TV SERVICE/DBC - MAY 2026 100230 54030 $136.43 CHECK TOTAL $2,369.50 18862 5/5/2026 STEPHEN LUGO RETENTION CONTRACT WITHHOLDING: 26000034 262 29004 $999.50 CHECK TOTAL $999.50 18863 5/5/2026 STUMP FENCE CO RETENTION CONTRACT WITHHOLDING: 26000033 262 29004 $1,490.00 5/5/2026 STUMP FENCE CO RETENTION CONTRACT WITHHOLDING: 26000033 262 29004 $1,680.50 CHECK TOTAL $3,170.50 18864 5/5/2026 TASC FSA FEES - APRIL 100220 52515 $205.41 CHECK TOTAL $205.41 18865 5/5/2026 TENNIS ANYONE INC CONTRACT CLASSES TENNIS SERVIC 100520 55320 $6,238.89 CHECK TOTAL $6,238.89 18866 5/5/2026 THE KNOT WORLDWIDE INC DBC ONLINE STOREFRONT MAY-JULY 2026 100510 52160 $3,744.00 Page 253 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $3,744.00 18867 5/5/2026 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - PL2025-29 - 1400 MONTEFINO MARCH 2026 100 22107 $1,494.90 5/5/2026 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD - PL2025-27 APRIL 2026 100 22107 $921.93 5/5/2026 THE SAN GABRIEL VALLEY NEWSPAPER GR LEGAL AD PL2026-5 QUAIL RUN 100 22107 $579.64 CHECK TOTAL $2,996.47 18868 5/5/2026 THE SAN GABRIEL VALLEY NEWSPAPER GR ORD. NO. 05 (2026) 1ST READING 100140 52160 $371.56 CHECK TOTAL $371.56 18869 5/5/2026 THE SHERWIN-WILLIAMS CO MAINTENANCE SUPPLIES @ DBC (JK 041526) 100510 52320 $26.98 5/5/2026 THE SHERWIN-WILLIAMS CO MAINTENANCE SUPPLIES @ DBC (JK 041526) 100510 52320 $51.30 CHECK TOTAL $78.28 18870 5/5/2026 THE WINDMILL MARCH/APRIL ADS -PRESERVE DB, WEDDING & EVENT EXPO 100240 52160 $1,600.00 CHECK TOTAL $1,600.00 18871 5/5/2026 TYLER TECHNOLOGIES INC ELM PROJECT MGMT - 4/7/26 - 4/10/26 503230 56135 $10,230.55 5/5/2026 TYLER TECHNOLOGIES INC ELM PROJECT MGMT - 4/14/26 503230 56135 $800.00 CHECK TOTAL $11,030.55 18872 5/5/2026 ULINE INC FY2025-26 EMERGENCY PREP SUPPLIES 100350 51200 $1,420.05 CHECK TOTAL $1,420.05 18873 5/5/2026 ULTIMATE MAINTENANCE SERVICES INC JANITORIAL SERVICES (APRIL/2026) 100630 55505 $3,070.00 5/5/2026 ULTIMATE MAINTENANCE SERVICES INC JANITORIAL SERVICES (APRIL/2026) 100510 55505 $9,650.00 5/5/2026 ULTIMATE MAINTENANCE SERVICES INC JANITORIAL SERVICES (APRIL/2026) 100620 52320 $12,075.00 CHECK TOTAL $24,795.00 18874 5/5/2026 US BANK PCARD STATEMENT - APRIL 2026 999 28100 $27,857.87 CHECK TOTAL $27,857.87 18875 5/5/2026 VERIZON WIRELESS WIRELESS PHONE SERVICE - 1/17/26 - 4/16/26 100230 52200 $8,134.69 Page 254 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT CHECK TOTAL $8,134.69 18876 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JW 041626) 100630 51200 $25.53 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (CB042026) 100630 52320 $33.42 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JW042126) 100510 52320 $189.87 5/5/2026 WW GRAINGER INC MAINTENANCE SUPPLIES (JK 042226) 100630 51200 $556.82 CHECK TOTAL $805.64 18877 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES HERITAGE PARK (041526) 100630 51200 $350.39 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) 100510 51210 $1,067.97 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (HERITAGE PARK) 100630 51200 $89.20 5/5/2026 WAXIE SANITARY SUPPLY JANITORIAL SUPPLIES (DBC) 100510 51210 $100.57 CHECK TOTAL $1,608.13 18878 5/5/2026 WILLDAN GEOTECHNICAL BUILDING AND SAFETY INTERIM PERMIT TECHNICIAN 100420 55100 $14,705.00 CHECK TOTAL $14,705.00 18879 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $2,312.40 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $2,453.40 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $2,538.00 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100 22107 $423.00 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100 22107 $1,184.40 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100 22107 $7,009.68 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $12,635.31 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $366.60 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $56.40 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $1,889.40 Page 255 of 346 City of Diamond Bar Check Register CHECK # CHECK DATE VENDOR NAME OTP VENDOR NAME INVOICE DESCRIPTION ORG OBJECT AMOUNT 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $1,410.00 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $112.80 5/5/2026 WOODRUFF & SMART, A PROFESSIONAL CORPORATION LEGAL SERVICES - MARCH 2026 100120 54020 $112.80 CHECK TOTAL $32,504.19 18880 5/5/2026 ZUMAR INDUSTRIES INC ROAD MAINTENANCE SUPPLIES (SIGNAGE) 100655 51250 $4,397.49 CHECK TOTAL $4,397.49 GRAND TOTAL $1,026,586.40 Page 256 of 346 Agenda Item #: 7.3 Meeting Date: May 19, 2026 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager SUBJECT: Third Amendment to Consultant Services Agreement with Torti Gallas + Partners. STRATEGIC GOAL: Responsible Stewardship of Public Resources Open, Engaged and Responsive Government Safe, Sustainable and Healthy Community RECOMMENDATION: A. Appropriate $3,620 from the General Plan Update Fund 103 to cover the cost to prepare a response to comments regarding the adequacy of the Final Supplemental Environmental Impact Report; and B. Approve, and authorize the City Manager to sign, the Third Amendment to the Consultant Services Agreement with Torti Gallas + Partners to cover unanticipated expenses pertaining to the adoption of the Town Center Specific Plan. FINANCIAL IMPACT: The proposed Third Amendment increases the not-to-exceed contract amount by $3,620, for a total contract amount of $1,166,620. An appropriation in the amount of $3,620 is requested to increase the budget (a/c 103410-54900) for this purpose. Sufficient reserve funds are currently available in the General Plan Update Fund (Fund 103) to cover this cost. BACKGROUND: On March 16, 2026, the City received a comment letter from counsel representing Supporters Alliance for Environmental Responsibility (SAFER) regarding the Final Supplemental Environmental Impact Report (SIR) for the Town Center Specific Plan (TCSP), scheduled for City Council second reading and certification on March 17, 2026. The letter raised concerns regarding the adequacy of the SIR, including claims related to air quality analysis, mitigation measures, and the need for recirculation under CEQA. Given the timing of the submittal, staff, in coordination with the City Attorney’s Office and the City’s environmental consultant (Sapphos Environmental, Inc.), determined that a formal written response was necessary to ensure a complete administrative record and to assist the City Council in its consideration of the TCSP and Final SIR certification. Page 257 of 346 Agenda Item #: 7.3 Meeting Date: May 19, 2026 On March 17, 2026, the City Council adopted Ordinance No. 03(2026) approving the TCSP and Resolution No. 2026-05 certifying the Final SIR. The ordinance became effective on April 16, 2026, and the TCSP is now the regulatory framework governing the Town Center planning area. ANALYSIS: In response to the SAFER comment letter, the City’s environmental consultant team prepared a written response memorandum addressing the issues raised. The response was completed under expedited conditions and provided to the City Council on the dais on March 17, 2026, in advance of the second reading of the TCSP ordinance and certification of the Final SIR. The response clarified that the Final SIR did not introduce “significant new information” requiring recirculation under CEQA Guidelines Section 15088.5 and confirmed that the Final SIR did not alter any significance determinations from the Draft SIR, but instead clarified the presentation of construction and operational impacts. Preparation of this response required unanticipated consultant effort outside the scope of the existing Consultant Services Agreement. As documented in correspondence from Sapphos Environmental, Inc., the consultant team mobilized immediately upon receipt of the SAFER letter to prepare the response in time for the March 17, 2026 hearing, resulting in costs that exceeded the remaining contract budget. The total additional cost attributable to this effort is $3,620. Approval of the proposed Third Amendment to the Consultant Services Agreement is necessary to compensate the consultant for this work and to reconcile the contract budget with actual services rendered. The response memorandum also strengthened the administrative record supporting the City’s certification of the Final SIR and approval of the TCSP. Following project approval, the 30-day statute of limitations to challenge the adequacy of the Final SIR expired without legal action. While this outcome cannot be attributed to any single factor, the City’s timely and substantive response ensured that the City Council acted on a complete and well-documented record, reducing potential legal risk and strengthening the City’s position in the event of a challenge. LEGAL REVIEW: The City Attorney has approved the attached Third Amendment to the Consultant Services Agreement as to form. PREPARED BY: Greg Gubman, Director, Community Development ATTACHMENTS: 1. Third Amendment to Consultant Services Agreement with Torti Gallas + Partners Page 258 of 346 Page 259 of 346 Page 260 of 346 Agenda Item #: 7.4 Meeting Date: May 19, 2026 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager SUBJECT: Declaration to Levy Assessments for Landscape Assessment District Nos. 38, 39-2022, and 41-2021 for Fiscal Year 2026/27. STRATEGIC GOAL: Responsible Stewardship of Public Resources RECOMMENDATION: A. Adopt Resolution No. 2026-11 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 38 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting; B. Adopt Resolution No. 2026-12 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 39-2022 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting; and, C. Adopt Resolution No. 2026-13 declaring the City's intention to levy and collect assessments for Landscape Assessment District No. 41-2021 and directing staff to advertise the Public Hearing to be set for the June 16, 2026, regular meeting. FINANCIAL IMPACT: District No. 38 The assessment generated by this District in the amount of $277,290, and $88,378 of the General Fund contribution, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 238. District No. 39-2022 The assessment generated by this District in the amount of $708,703, and $42,638 of the General Fund contribution (6.62% General Benefit), with a $263,134 Fund Balance Carryover, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 239. District No. 41-2021 The assessment generated by this District in the amount of $330,305, and $17,453 of the General Fund contribution (3.84% General Benefit), with a $181,367 Fund Balance Carryover, will be requested for the operation and maintenance costs in the final Proposed Fiscal Year 2026/27 Budget, Special Fund No. 241. Page 261 of 346 Agenda Item #: 7.4 Meeting Date: May 19, 2026 BACKGROUND: District No. 38 On April 7, 2026, the City Council adopted Resolution No. 2026-08, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 38 and any assessment thereon for Fiscal Year 2026/27. District No. 39-2022 On April 7, 2026, the City Council adopted Resolution No. 2026-09, ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 39- 2022 and any assessment thereon for Fiscal Year 2026/27. District No. 41-2021 On April 7, 2026, the City Council adopted Resolution No. 2026-10 ordering the City Engineer to prepare and file an Engineer's Report related to maintenance of improvements in Landscaping Assessment District No. 41-2021 and any assessment thereon for Fiscal Year 2026/27. ANALYSIS: District No. 38 The attached Engineer’s Report (Attachment 2) for the City’s Landscaping Assessment District No. 38 which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of improvements, a diagram for the District and the assessments. The estimated number of assessable parcels within the District is 18,486 parcels. The amount assessed upon the lands within District Number 38 for Fiscal Year 2025/26 was $15.00 per parcel. The amount to be assessed for Fiscal Year 2026/27 is to remain at $15.00 per parcel. The assessments will be utilized to maintain the City’s medians and parkways. The proposed assessment has been determined to be exempt from the provisions of Proposition 218 as set forth in section 5 (a): Any assessment imposed exclusively to finance the capital costs or maintenance and operating expenses for sidewalks, streets, sewers, water, flood control drainage systems or vector control. District No. 39-2022 The attached Engineer’s Report (Attachment 4) for the City’s Landscaping Assessment District No. 39-2022, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments. The estimated number of assessable parcels within the District is 1,246 parcels. The draft Engineer’s Report contains a full and detailed description of the improvements, the boundaries of the assessment district and contains the proposed assessments upon assessable lots and parcels of land within the District. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $583.63 for Zone A, $569.04 for Zone B, and $539.86 for Zone C for Fiscal Year 2026/27. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding. The annual CPI from December 2024 to December 2025 was 3.01%. Page 262 of 346 Agenda Item #: 7.4 Meeting Date: May 19, 2026 The assessments will be utilized for the general maintenance of slopes, open space areas, and the five (5) mini parks within the District. District No. 41-2021 The attached Engineer’s Report (Attachment 6) for the City’s Landscaping Assessment District No. 41-2021, which is prepared pursuant to provisions of the Landscaping and Lighting Act of 1972 of Part 2 of Division 15 of the Streets and Highways Code of the State of California, includes authority for the report, estimated costs of operation and maintenance, a diagram for the District and the assessments. The estimated number of assessable parcels within the District is 554 parcels. The draft Engineer’s Report contains a full and detailed description of the improvements, the boundaries of the assessment district, and the proposed assessments upon assessable lots and parcels of land within the District for Fiscal Year 2026/27. Said proposed assessment amounts for the single-family and multi-family parcels are $608.88 and $560.17, respectively, an increase of 3% from Fiscal Year 2025/26. LEGAL REVIEW: The City Attorney has reviewed and approved the Resolutions as to form. PREPARED BY: Nicholas Delgado, Management Analyst, Public Works ATTACHMENTS: 1. Resolution No. 2026-11 (LAD# 38) 2. LAD No. 38 Draft Engineer's Report 3. Resolution No. 2026-12 (LAD# 39-2022) 4. LAD No. 39-2022 Draft Engineer's Report 5. Resolution No. 2026-13 (LAD# 41-2021) 6. LAD No. 41-2021 Draft Engineer's Report Page 263 of 346 RESOLUTION NO. 2026-11 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 38 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING. WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 38 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27. WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows: Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct. Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed. Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within the area designated “City of Diamond Bar Landscaping Assessment District No. 38,” as shown on Exhibit “A” attached hereto and incorporated herein by reference. Section 4. A general description of the improvements proposed for the aforementioned District is as follows: Page 264 of 346 Resolution No. 2026-11 2 The installation, maintenance, and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks, paving, irrigation, or electrical facilities. Said installation, maintenance, and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit “A,” as attached hereto and incorporated by reference. The location and type of improvement are shown in Exhibit “A.” Section 5. Reference is hereby made to the Report relating to said District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said proposed assessment per lot or parcel is the amount of $15.00, the same amount historically levied. Section 6. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels within the District for fiscal year 2026-27 and hereby gives notice of said hearing. Section 7. The City Council hereby determines and declares that the proposed assessments constitute a continuation of assessments existing on the effective date of Article XIII D of the California Constitution (the “Article XIII D”), that the assessments are imposed exclusively to finance the installation, maintenance, and servicing of improvements within the District, and that the assessment is exempt from the requirements of Article XIII D. Section 8. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 19th day of May 2026. CITY OF DIAMOND BAR __________________________ Steve Tye, Mayor Page 265 of 346 Resolution No. 2026-11 3 ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk Page 266 of 346 Resolution No. 2026-11 4 Exhibit A Page 267 of 346 Fiscal Year 2026/27 Engineer’s Report For: Landscaping Assessment District No. 38 May 2026 Page 268 of 346 TABLE OF CONTENTS 1. Engineer’s Letter ............................................................................................................. 1 2. Introduction ................................................................................................................... 2 2.1 Background .............................................................................................................. 2 2.2 Process for Annual Assessment .............................................................................. 2 2.3 Legislative Context .................................................................................................. 3 3. Plans and Specifications .................................................................................................. 6 4. Estimate of Costs ............................................................................................................ 8 4.1 District Budget ......................................................................................................... 8 4.2 Balance to Levy ........................................................................................................ 8 5. Method of Apportionment............................................................................................ 10 5.1 Special Benefit ....................................................................................................... 10 5.2 General Versus Special Benefit ............................................................................. 12 5.3 Quantification of General Benefit ......................................................................... 13 5.4 Method of Assessment.......................................................................................... 16 5.5 Annual Assessment Calculation ............................................................................ 16 5.6 Duration of Assessment ........................................................................................ 16 5.7 Appeals and Interpretation ................................................................................... 17 6. Assessment Diagram ..................................................................................................... 18 7. Assessment Roll ............................................................................................................ 19 Page 269 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 1 1. ENGINEER’S LETTER WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 38 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received. District Parcel Count (1) Proposed FY 2026/27 Rate Proposed FY 2026/27 Assessment Amount Landscaping Assessment District No. 38 18,486 $15.00 $277,290.00 (1) Includes active and levied parcels. I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information, and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed, and levied in accordance with the assessment methodology adopted, approved, and ordered by the City Council of the City of Diamond Bar at the time of District formation. ____________________________________________ John G. Egan, P. E. Assessment Engineer Page 270 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 2 2. INTRODUCTION 2.1 Background The City services and maintains perimeter and median landscaping, and other improvements (the “Improvements”) to various parts of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the District was formed in 1984 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Landscape and Lighting Act of 1972, and Article XIII D. 2.2 Process for Annual Assessment As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district, and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. The City Council must also annually adopt a Resolution of Intention which: • Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district. • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the Page 271 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 3 improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll. Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate. 2.3 Legislative Context In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments. Article XIII D imposes four basic substantive requirements on assessments1: • All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified; • The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below. GENERAL BENEFIT Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable. The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2 clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” 1 California Constitution Article XIII D Section 4. 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) Page 272 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 4 The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”)3 quoted from the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.” The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”) 4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors. BENEFIT-BASED NOT COST-BASED In Bonander v. Town of Tiburon (2009) (“Tiburon”)5, the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.” The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.” PUBLIC PROPERTY Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed. The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6 clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.” 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017) Page 273 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 5 IMPRECISION The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits, however, it must be both defensible and consistently applied.” Page 274 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 6 3. PLANS AND SPECIFICATIONS The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows: MEDIANS The landscaped islands to be maintained by the District are located as follows: • Diamond Bar Blvd • Grand Ave • Golden Springs Dr – 57 freeway overcrossing to West City Limits • Golden Prados Dr – Golden Springs Dr to Hopi St • Tin Dr – Great Bend Dr to Diamond Bar Blvd • Lemon Ave – Lycoming St to Golden Springs Dr • Sunset Crossing Rd – 57 freeway off-ramp to Prospectors Rd • Prospectors Rd – at Dry Creek Rd; at Palo Cedro Dr; and at Beaverhead Dr • Pathfinder Rd at Brea Canyon Rd (east of 57 freeway) PARKWAYS The landscaped parkways to be maintained by the District are located as follows: • Grand Ave – Summit Ridge to Diamond Bar Blvd, north side • Temple Ave – Diamond Bar Blvd to Golden Springs Dr, south side • Golden Springs Dr – Ballena Dr to End of cul-de-sac • Golden Springs Dr – El Encino Dr to Platina Dr • Golden Springs Dr – Rancheria Rd to end of cul-de-sac • Diamond Bar Blvd – Mountain Laurel Way to Maple Hill Rd • Pathfinder Rd – Evergreen Springs Dr to end of cul-de-sac • Brea Canyon Rd – at Gerndal St • Golden Springs Dr – at Adel Ave • Brea Canyon Rd – South of Pathfinder Rd to southerly City Limits, both sides • Sunset Crossing Rd – Big Falls Dr to Chapparal Dr Page 275 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 7 TURF AREAS The landscaped turf areas to be maintained by the District are located as follows: • Diamond Bar Blvd – at Gold Rush Dr • Grand Ave (east side) – from south of Rolling Knoll Dr to driveway at the Diamond • Bar Center Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, lighting, fencing, entry monuments, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage, and lights. Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. Page 276 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 8 4. ESTIMATE OF COSTS 4.1 District Budget Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below. Description Proposed FY 2026/27 Costs Salaries & Benefits (subsidized by General Fund) $57,746 Advertising 3,000 Utilities 102,800 Maintenance of Grounds/Buildings 30,000 Professional Services 7,500 Landscape Maintenance 150,000 Tree Maintenance 10,000 Total Estimated Expenditures $361,046 Contributions from Other Sources (1) (83,756) Fiscal Year 2026/27 Net Amount to be Assessed (2) $277,290 (1) Includes City General Fund contribution. (2) The net available funds, after incidental, administrative, financing, and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report. 4.2 Balance to Levy The following table shows the total costs, additional revenues and contributions, and the Balance to Levy for Fiscal Year 2026/27. Description Amount Salaries & Benefits $57,746 Operating Expenses & Services 303,300 Total District Costs $361,046 Contribution to (from) Operational Reserves 0 Other Revenue Sources (1) (83,756) Balance to Levy $277,290 (1) Includes City General Fund contribution. Page 277 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 9 Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment. Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy. Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions or District sources including interest earnings. Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources. Page 278 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 10 5. METHOD OF APPORTIONMENT The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District. The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report. The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property. 5.1 Special Benefit The improvements are expected to confer certain special benefits to the parcels within the District. Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows: The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. B. Access to Improved landscaped areas and Other Public Improvements within the District. C. Improved Views within the District. D. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements. The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or 7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 279 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 11 improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 Pursuant to the Prior Engineer’s Report, the primary special benefits on landscaping are as set forth below: 1. Beautification of the streets which are used by all of the residents in Diamond Bar. 2. A sense of community pride resulting from well-maintained green spaces. 3. The enhancement of the value of property, which results from the foregoing benefits. In addition, the following special benefits are identified in the Prior Engineer’s Report: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. ACCESS TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Since the parcels in the District are nearly the only parcels that enjoy close access to the Improvements, they directly benefit from the unique close access to improved landscaping areas and other public improvements that are provided by the assessments. This is a direct advantage and special benefit to property in the District. 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 280 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 12 IMPROVED VIEWS WITHIN THE DISTRICT The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. 5.2 General Versus Special Benefit Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: Total Benefit = General Benefit + Special Benefit There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline. Page 281 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 13 A formula to estimate the general benefit is listed below: General Benefit = Benefit to Real Property Outside the District + Benefit to Real Property Inside the District that is Indirect and Derivative + Benefit to the Public at Large Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large. 5.3 Quantification of General Benefit Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general. General benefits cannot be funded by these assessments – the funding must come from other sources. In this section, the general benefit from landscaping and other types of Improvements is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. BENEFIT TO PROPERTY OUTSIDE THE DISTRICT Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis. Since the properties outside the District with frontage abutting the Improvements cannot be assessed by the District, this is a form of general benefit to other property. The primary way that parcels outside the district benefit by the Improvements is from views. Therefore, parcels that abut the landscape areas and are not separated from the Improvements by a privacy fence are counted for this general benefit. Since very few of the Improvements lie at the District boundary near occupied parcels, there are very few parcels in this category. The general benefit to property outside of the District is calculated as follows. Assumptions based on the status of parcels in the District at the time of the initial benefit calculation: Page 282 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 14 • 18 Parcels Outside the District • 18,422 Parcels In the District Calculation of General Benefit to Property Outside the District: 18 / (18 + 18,422) = 0.10%. BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines, and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 4.43% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District. BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers, or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements – and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy landscaping in the same way as they may visit a park. One way to measure the special benefit to the general public is by the vehicle trips through an area with Improvements by people who are not residents within the District. Of the four ways benefits are conferred (proximity, access, views, extension of a property’s green space, and creation of lots), the only benefit that is conferred by way of pass-by vehicle trips is views, which accounts for 25% of the total benefits. This is further reduced to 10% due the brevity of the views and because views are less critically important and are enjoyed much less often to the average non-resident driver than to a resident. Specific data is not available for the number of vehicle trips by non-residents of the District past the Improvements, which lie mostly on arterial roadways. A conservative estimate of vehicle trips by non- residents is 50% of all vehicle trips. Therefore 50% of 10% = 5.00% of the benefits from the other Improvements are general benefits to the public at large. Page 283 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 15 TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, approximately 9.53% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. Landscaping General Benefit Calculation Outside the District 0.10% Inside the District 4.43% Public At Large 5.00% Total General Benefit 9.53% Although this analysis finds that 9.53% of the assessment may provide general benefits from the Improvements, it was determined a requirement for a minimum contribution from sources other than the assessments of 10%. This minimum contribution above the measure of general benefits will serve to provide additional coverage for any other general benefits. CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of in- lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the District’s assessments. A summary and quantification of these other contributions from the City is discussed below: The City owns, maintains, rehabilitates, and replaces curb and gutter along the border of the District Improvements. This curb and gutter serves to support, contain, retain, manage irrigation flow and growth, and provide a boundary for the Improvements. The contribution from the City towards general benefit from the maintenance, rehabilitation, and replacement of the curb and gutter is conservatively estimated to be 5%. The City owns and maintains a storm drainage system along the border of the District Improvements. This system serves to prevent flooding and associated damage to the Improvements and manage urban runoff including local pollutants loading from the Improvements. The contribution from the City towards general benefit from the maintenance and operation of the local storm drainage system is conservatively estimated to be 5%. The City owns and maintains local public streets along the border of the District Improvements. These public streets provide access to the Improvements for its enjoyment as well as efficient maintenance. The contribution from the City towards general benefit from the maintenance of local public streets is conservatively estimated to be 5%. The value of the construction of the improvements can be quantified and monetized as an annuity. Since this construction was performed and paid for by non-assessment funds, this “annuity” can be used to offset general benefit costs and is conservatively estimated to contribute 10%. Page 284 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 16 The total General Benefit is liberally quantified at 10% which is entirely offset by the conservatively quantified total non-assessment contribution towards general benefit described above of 25%. Therefore, no additional General Benefit must be funded by the City. 5.4 Method of Assessment The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below: The net amount to be assessed upon lands within the District in accordance with this report is apportioned by a formula and method which fairly distributes the amount among all assessable lots or parcels in proportion to the estimated benefits to be received by each lot or parcel from the Improvements, namely the maintenance and servicing of public landscaping improvements within such District. The maintenance and servicing of public landscaping improvements installed and constructed in public places in the City provides a special benefit which is received by each and every lot or parcel within the District, tending to enhance their value. The primary benefits on landscaping are set forth below: 1. Beautification of the streets which are used by all of the residents in the City. 2. A sense of community pride resulting from well-maintained green spaces. 3. The enhancement of the value of property, which results from the foregoing benefits. The existing land use information indicates that well over 90 percent of the parcels within the City are residences. Because the special benefits derived apply equally to all residents and parcels, it has been determined that all assessable parcels would receive the same net assessment.9 5.5 Annual Assessment Calculation The assessment per parcel is $15. For Fiscal Year 2026/27 the amount of the Assessment for the District is not increased from prior years. 5.6 Duration of Assessment The District was formed or annexed in previous years. It is proposed that the assessments be continued every year after their formation or annexation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 285 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 17 Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment. 5.7 Appeals and Interpretation Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal with the City of Diamond Bar City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon the filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. Page 286 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 18 6. ASSESSMENT DIAGRAM The boundary of the District is coterminous with the City limits. The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this report. Page 287 of 346 City of Diamond Bar Landscaping Assessment District No. 38 - Fiscal Year 2026/27 Engineer’s Report 19 7. ASSESSMENT ROLL Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference. A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount. Page 288 of 346 RESOLUTION NO. 2026-12 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 39- 2022 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING. WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 39- 2022 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27. WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond as follows: Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct. Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed. Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within that area designated “City of Diamond Bar Landscaping Assessment District No. 39-2022,” as shown on Exhibit “A” attached hereto and incorporated herein by reference. Section 4. A general description of the improvements proposed for the aforementioned District is as follows: Page 289 of 346 Resolution No. 2026-12 2 Installation, maintenance and servicing of public and private areas and facilities, including but not limited to, landscaping, sprinkler systems, landscape corridors, ground cover, shrubs and trees, street frontages, drainage systems, lighting, fencing, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, for property owned and/or maintained by the City. Said installation, maintenance, and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit “A,” as attached hereto and incorporated by reference. The location and type of improvement are shown in Exhibit “A.” Section 5. Reference is hereby made to the Report relating to the District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said estimated cost results in a proposed Single-Family Equivalent (“SFE”) assessment rate of $583.63. The fiscal year 2026-27 assessment rate for Zone A is $583.63, for Zone B is $569.04, and for Zone C is $539.86. Section 6. Said proposed assessments include an authorized annual increase equal to the change in the Los Angeles-Riverside-Orange County Consumer Price Index (“CPI”) per year without further vote or ballot proceeding as authorized by prior majority approval of property owners. However, in January 2018, the Bureau of Labor Statistics (“BLS”) updated their geographic areas for computing CPI. Previously, the Los Angeles- Riverside-Orange County index was made up of Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The BLS divided this index into two areas; one that represents Los Angeles and Orange counties (Los Angeles-Long Beach-Anaheim) and another that represents Riverside and San Bernardino counties (Riverside-San Bernardino-Ontario). This Council previously appointed the CPI to be used for the calculation of the assessments as the Los Angeles-Long Beach-Anaheim Index. The annual Los Angeles-Long Beach-Anaheim CPI from December 2024 to December 2025 was 3.01%. Section 7. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels with the District for fiscal year 2026-27 and hereby gives notice of said hearing. Section 8. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. Page 290 of 346 Resolution No. 2026-12 3 PASSED, ADOPTED AND APPROVED this 19th day of May 2026. CITY OF DIAMOND BAR _____ Steve Tye, Mayor ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: _____ Kristina Santana, City Clerk Page 291 of 346 Resolution No. 2026-12 4 Exhibit A Page 292 of 346 Fiscal Year 2026/27 Engineer’s Report For: Landscaping Assessment District No. 39-2022 May 2026 Page 293 of 346 TABLE OF CONTENTS 1. Engineer’s Letter ............................................................................................................. 1 2. Introduction ................................................................................................................... 2 2.1 Background .............................................................................................................. 2 2.2 Process for Annual Assessment .............................................................................. 2 2.3 Legislative Context .................................................................................................. 3 3. Plans and Specifications .................................................................................................. 6 4. Estimate of Costs ............................................................................................................ 8 4.1 District Budget ......................................................................................................... 8 4.2 Balance to Levy ........................................................................................................ 9 5. Method of Apportionment............................................................................................ 10 5.1 Special Benefit ....................................................................................................... 10 5.2 General Versus Special Benefit ............................................................................. 13 5.3 Quantification of General Benefit ......................................................................... 13 5.4 Zones of Benefit .................................................................................................... 15 5.5 Method of Assessment.......................................................................................... 18 5.6 Annual Assessment Calculation ............................................................................ 19 5.7 Cost of Living Inflator ............................................................................................ 20 5.8 Duration of Assessment ........................................................................................ 20 5.9 Appeals and Interpretation ................................................................................... 20 6. Assessment Diagram ..................................................................................................... 21 7. Assessment Roll ............................................................................................................ 23 Page 294 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 1 1. ENGINEER’S LETTER WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 39-2022 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received. District Parcel Count (1) Single- Family Equivalents Proposed FY 2026/27 Rate Proposed FY 2026/27 Assessment Amount (2) Landscaping Assessment District No. 39-2022 1,246 1,214.300 $583.63 $708,703.00 (1) Includes active and levied parcels. (2) Does not include rounding. I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City at the time of District formation. ____________________________________________ John G. Egan, P. E. Assessment Engineer Page 295 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 2 2. INTRODUCTION 2.1 Background The City services and maintains mini-parks, slopes, and open space areas and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these improvements, the Landscaping Assessment District No. 39 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City. Upon incorporation in 1989, the City assumed jurisdiction over the Landscaping Assessment District No. 39. In 2022, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution). Their intent was to replace the existing Landscaping Assessment District No. 39 with a new District No. 39- 2022 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 52.03% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on March 15, 2022, by its Resolution No. 2022-13, the City Council levied the new assessments for District No. 39-2022. This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D. 2.2 Process for Annual Assessment As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. The City Council must also annually adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district. • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. Page 296 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 3 If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll. Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate. 2.3 Legislative Context In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments. Article XIII D imposes four basic substantive requirements on assessments1: • All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified; • The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below. 1 California Constitution Article XIII D Section 4. Page 297 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 4 GENERAL BENEFIT Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable. The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2 clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”)3 quoted from the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.” The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”) 4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors. BENEFIT-BASED NOT COST-BASED In Bonander v. Town of Tiburon (2009) (“Tiburon”)5, the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.” The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.” PUBLIC PROPERTY Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) Page 298 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 5 no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed. The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6 clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.” IMPRECISION The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017) Page 299 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 6 3. PLANS AND SPECIFICATIONS The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the improvements are generally described as follows: The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained or serviced by the proceeds from the assessment. Installation, maintenance and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, entry monuments, basketball courts, tennis courts, other recreational facilities, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities and public restrooms. Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing - means the furnishing of electric current, or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526). Page 300 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 7 Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. Page 301 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 8 4. ESTIMATE OF COSTS 4.1 District Budget Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below. Description Proposed FY 2026/27 Costs Salaries & Benefits $41,579 Advertising 3,500 Utilities 137,000 Maintenance of Grounds/Buildings 35,000 Professional Services 5,000 Trail & Landscape Maintenance 330,000 Tree Maintenance 32,000 Weed/Pest Abatement 60,000 Additional Enhancement & Improvement 0 Total Estimated Expenditures $644,079 Contingencies/Reserves 370,076 Contributions from Other Sources (1) (305,452) Fiscal Year 2026/27 Net Amount to be Assessed (2) $708,703 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report. Page 302 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 9 4.2 Balance to Levy The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27. Description Amount Salaries & Benefits $41,579 Operating Expenses & Services 602,500 Enhancements / Improvements / Reserves 370,076 Total District Costs $1,014,155 Contribution to (from) Operational Reserves (262,814) Other Revenue Sources (1) (42,638) Balance to Levy $708,703 (1) Includes City General Fund contribution. Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment. Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy. Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings. Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources. Page 303 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 10 5. METHOD OF APPORTIONMENT The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District. The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report. The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property. 5.1 Special Benefit The improvements are expected to confer certain special benefits to the parcels within the District. Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows: The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: A. Proximity and access to Improved Landscaped Areas and Other Public Improvements within the District. B. Improved Views within the District. C. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements. D. Safety and Security within the District. E. Creation of individual lots for residential use that, in absence of the assessments, would not have been created. 7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 39-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 304 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. IMPROVED VIEWS WITHIN THE DISTRICT The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 305 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. SAFETY AND SECURITY WITHIN THE DISTRICT The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression. CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE BEEN CREATED In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment. Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments. SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below. Benefit Category Relative Weight Proximity & Access 10% Views 10% Outdoor Area Extension 10% Safety & Security 10% Creation of Lots 60% Total Benefit 100% Page 306 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 13 5.2 General Versus Special Benefit Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: Total Benefit = General Benefit + Special Benefit There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline. A formula to estimate the general benefit is listed below: General Benefit = Benefit to Real Property Outside the District + Benefit to Real Property Inside the District that is Indirect and Derivative + Benefit to the Public at Large Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large. 5.3 Quantification of General Benefit Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general. General benefits cannot be funded by these assessments – the funding must come from other sources. Page 307 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 14 In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below. BENEFIT TO PROPERTY OUTSIDE THE DISTRICT Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis. Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are eight parcels outside the District that lie within a half mile travel distance of one of mini parks within the District. In addition, there are 79 parcels outside the District that are directly adjacent to areas where brush clearing activity is performed by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows. Assumptions: • 87 Parcels Outside the District • 1,246 Parcels In the District • 40% Benefit Factor Calculation of General Benefit to Property Outside the District: 87 / (87 + 1,246) x 40% = 2.61%. BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. Approximately 1.51% of the land area in the District is used for such regional purposes, so this is a measure of the general benefits to property within the District. Page 308 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 15 BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. There are two ways in which the public at large can enjoy the improvements, with each counting for half the general benefit: use of parks, and pass-by trips where landscaped areas can be viewed. In the case of the mini parks that serve primarily the neighborhood, City staff estimate that approximately 10% of the users do not live, work or own property in the District. The general landscape improvements are typically along slopes and open space areas, out of view of the general public, so no general benefit is conferred for views of landscaping. Finally, the general benefits conferred to the public at large does not include the benefit of lot creation, so this benefit is further reduced by half. Therefore, (50% of 10%) x 50% = 2.50% of the benefits from the Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, approximately 6.62% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. Landscaping General Benefit Calculation Outside the District 2.61% Inside the District 1.51% Public At Large 2.50% Total General Benefit 6.62% CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of in- lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments. 5.4 Zones of Benefit The boundaries of the District were developed in conjunction and concurrent with the planning and design of the subdivisions and Improvements and thus include only the properties in the City that are proximate to the Improvements and that would materially benefit from the Improvements. Certain other properties surrounding the District were not part of the designed association between the Improvements and the assessed areas and are generally less proximate to the Improvements. In other words, the boundaries of the District have been narrowly drawn to include only properties that will specially benefit from the Improvements and would receive a declining level of service if the Assessments were not approved. Page 309 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 16 The SVTA decision indicates: “In a well-drawn district — limited to only parcels receiving special benefits from the improvement — every parcel within that district receives a shared special benefit. Under section 2, subdivision (i), these benefits can be construed as being general benefits since they are not ‘particular and distinct’ and are not ‘over and above’ the benefits received by other properties ‘located in the district.’ “We do not believe that the voters intended to invalidate an assessment district that is narrowly drawn to include only properties directly benefiting from an improvement. Indeed, the ballot materials reflect otherwise. Thus, if an assessment district is narrowly drawn, the fact that a benefit is conferred throughout the district does not make it general rather than special. In that circumstance, the characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g., proximity to park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g., general enhancement of the district’s property values).” In the District, the benefit that each parcel receives from the Improvements is direct, and the boundaries are narrowly drawn to include only parcels that benefit from the assessment. However, proximity to the improvements varies somewhat within the District. In order to most conservatively assure that assessments are proportional to the relative benefits in the District, three zones have been created: A. In the area south of Grand Avenue the concentration of landscaped areas (brush and slopes) as well as mini parks is the greatest. B. In the area north of Grand Avenue but south of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas, but still a high concentration of mini parks. C. In the area around and north of Pantera Park there is less concentration of landscaped slopes and brush-cleared areas and no mini parks within a half-mile. Based on the varying characteristics of these three distinct zones, each of the five benefit categories have been assigned a benefit factor to estimate the overall relative benefit. Using Zone A as the benchmark (100%), the other two zones derive less benefit due to the proximity of relatively fewer improvements. This estimation is summarized below. Benefit Category Weight Zone A Zone B Zone C Factor Benefit Factor Benefit Factor Benefit Proximity & Access 10% 100% 10% 75% 7.5% 75% 7.5% Views 10% 100% 10% 100% 10% 75% 7.5% Outdoor Area Extension 10% 100% 10% 100% 10% 75% 7.5% Safety & Security 10% 100% 10% 100% 10% 100% 10% Creation of Lots 60% 100% 60% 100% 60% 100% 60% Relative Benefit 100% 100% 97.5% 92.5% Page 310 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 17 A general map of the location of the Zones is shown below. Page 311 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 18 5.5 Method of Assessment The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below: The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels. The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.9 RESIDENTIAL PROPERTIES In the District, there is only one type of residential property present: the single-family home. Other types of residential property, such as multifamily, apartments and condominiums, are not present. Furthermore, the property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in that dominate land use is not expected in the future. As a result, there is no need for a detailed analysis of population densities to determine relative benefit for other types of residential properties. Each single-family residential property is assigned one SFE. VACANT/UNDEVELOPED PROPERTIES While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future. The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38-2022, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 312 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 19 that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel. OTHER PROPERTY TYPES Notwithstanding the foregoing discussion, there are four other types of property uses to be considered: School Property: Pantera Elementary School lies within the District and may derive some benefit from the Improvements. However, all benefits that may be derived from the Improvements are included in the General Benefits calculation noted earlier. Therefore, the School accrues no further Special Benefit and is not assessed a fee. Municipal Park: Pantera Park lies partly within the District. However, all benefits that may be derived from the Improvements are included in the General Benefits calculation noted earlier. Therefore, the park accrues no further special benefit and is not assessed. Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed. Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed. 5.6 Annual Assessment Calculation The table below shows the calculation of the estimated number of SFEs for each Zone for Fiscal Year 2026/27. Zone Parcel Count SFE Factor SFEs A 176 100% 176.000 B 971 97.5% 946.725 C 99 92.5% 91.575 Total 1,246 1,214.300 The following table shows the calculation of the assessment rate. Description Fiscal Year 2026/27 Amount Balance to Levy (1) $708,703.00 Total SFEs 1,214.300 Assessment rate per SFE $583.63 (1) Does not include rounding. Page 313 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 20 The assessment rate per Zone is shown below. Zone Fiscal Year 2026/27 Assessment Rate A $583.63 B 569.04 C 539.86 5.7 Cost of Living Inflator The assessment shall be subject to an adjustment tied to the Consumer Price Index-U for the Los Angeles- Riverside-Orange County area as of December of each succeeding year (the “CPI”). The maximum authorized assessment rate is equal to the maximum assessment rate in the first fiscal year the assessment was levied adjusted annually by the change in CPI. In January 2018, the Bureau of Labor Statistics (“BLS”) updated their geographic areas for computing CPI. Previously, the Los Angeles-Riverside-Orange County index was made up of Los Angeles, Orange, Riverside, San Bernardino, and Ventura counties. The BLS divided this index into two areas; one that represents Los Angeles and Orange counties (Los Angeles-Long Beach-Anaheim) and another that represents Riverside and San Bernardino counties (Riverside-San Bernardino-Ontario). The annual resolution approving this Report specifies that the CPI to be used for the calculation of the maximum assessments is the Los Angeles-Long Beach-Anaheim Index. The annual CPI from December 2024 to December 2025 was 3.01%. 5.8 Duration of Assessment It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the Improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment. 5.9 Appeals and Interpretation Any property owner who feels that the assessment levied on the subject property is in error, as a result of incorrect information being used to apply the foregoing method of assessment, may file a written appeal with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the City Council, and the decision of the City Council shall be final. Page 314 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 21 6. ASSESSMENT DIAGRAM The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report. Page 315 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 22 Page 316 of 346 City of Diamond Bar Landscaping Assessment District No. 39-2022 - Fiscal Year 2026/27 Engineer’s Report 23 7. ASSESSMENT ROLL Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this Report is prepared and is incorporated herein by reference. A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount. Page 317 of 346 RESOLUTION NO. 2026-13 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DIAMOND BAR TO DECLARE THE CITY’S INTENTION TO LEVY AND COLLECT ASSESSMENTS FOR LANDSCAPING ASSESSMENT DISTRICT NO. 41- 2021 AND DIRECT CITY STAFF TO ADVERTISE THE PUBLIC HEARING BEFORE THE COUNCIL AT THE JUNE 16, 2026 REGULAR MEETING. WHEREAS, the City of Diamond Bar Landscaping Assessment District No. 41- 2021 (“District”) was created pursuant to Part 2 of Division 15 of the California Streets and Highways Code (§ 22500, et seq.), known as the Landscaping and Lighting Act of 1972 (“Act”); and WHEREAS, NBS has been designated as Engineer of Work for purposes of these proceedings (the “Engineer of Work”) and ordered to prepare the Engineer’s Report in accordance with the Act; and WHEREAS, the Engineer of Work has filed the Engineer’s Report (the “Report”) with the City Clerk, copies of which have been submitted to this City Council, which Report contains the information required by the Act, including: (a) a calculation of the portion of the services to be provided by the District that constitute a special benefit to the parcels in the District; (b) a methodology for assigning assessments to individual parcels; (c) a listing of each lot or parcel of property that would be subject to the proposed assessment; (d) the estimate of cost for the improvements; and (e) the amount of the proposed assessment for each lot or parcel for the fiscal year 2026-27. WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Diamond Bar as follows: Section 1. The Recitals, as set forth in this Resolution, are in all respects true and correct. Section 2. The above-described Report submitted by the Engineer of Work relating to the District is hereby approved as filed. Section 3. The Council hereby declares its intention to levy and collect assessments during fiscal year 2026-27 pursuant to the Act, within that area designated “City of Diamond Bar Landscaping Assessment District No. 41-2021,” as shown on Exhibit “A” attached hereto and incorporated herein by reference. Section 4. A general description of the improvements proposed for the aforementioned District is as follows: Page 318 of 346 Resolution No. 2026-13 2 The maintenance and servicing of landscaping and any facilities which are appurtenant thereto or which are necessary or convenient for the maintenance and servicing thereof, including but not limited to, repair, removal or replacement, grading, clearing, removal of debris, pruning, fertilization, pest control and weed control, and the installation or construction of appurtenant facilities, including curbs, gutters, walls, sidewalks, paving, irrigation, or electrical facilities. Said maintenance and servicing of the landscaping and related work shall be within the area of the District as shown on Exhibit "A" as attached hereto and incorporated by reference. The location and type of improvement are shown on Exhibit "A." Section 5. Reference is hereby, made to the Report relating to the said District hereinabove approved. Said Report is on file with the City Clerk of the City of Diamond Bar and contains a full and detailed description of the improvements, the boundaries of the District, and contains the proposed assessments upon assessable lots and parcels of land within the District for fiscal year 2026-27. Said proposed assessment amounts for the single-family and multi-family parcels are $608.88 and $560.17, respectively, an increase of 3% from fiscal year 2025-26. Section 6. This Council hereby fixes 6:30 p.m. on June 16, 2026, or as soon thereafter as the matter may be heard, in the SCAQMD Auditorium located at 21865 Copley Drive, Diamond Bar, California, as the time and place for a hearing before this Council on this question of the levy of the proposed assessments on assessable parcels within the District for fiscal year 2026-27 and hereby gives notice of said hearing. Section 7. The City Clerk shall certify to the adoption of this Resolution, and staff shall cause a true and correct copy of this Resolution to be published pursuant to California Government Code § 6061. PASSED, ADOPTED AND APPROVED this 19th day of May 2026. CITY OF DIAMOND BAR __________________________ Steve Tye, Mayor ATTEST: I, Kristina Santana, City Clerk of the City of Diamond Bar, do hereby certify that the foregoing Resolution was passed, approved and adopted at the regular meeting of the City Council of the City of Diamond Bar held on the 19th day of May 2026, by the following roll call vote: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: ABSTAINED: COUNCIL MEMBERS: Kristina Santana, City Clerk Page 319 of 346 Resolution No. 2026-13 3 Exhibit A Landscaping Assessment District 41-2021 Page 320 of 346 Fiscal Year 2026/27 Engineer’s Report For: Landscaping Assessment District No. 41-2021 May 2026 Page 321 of 346 TABLE OF CONTENTS 1. Engineer’s Letter ............................................................................................................. 1 2. Introduction ................................................................................................................... 2 2.1 Background .............................................................................................................. 2 2.2 Process for Annual Assessment .............................................................................. 2 2.3 Legislative Context .................................................................................................. 3 3. Plans and Specifications .................................................................................................. 6 4. Estimate of Costs ............................................................................................................ 8 4.1 District Budget ......................................................................................................... 8 4.2 Balance to Levy ........................................................................................................ 8 5. Method of Apportionment............................................................................................ 10 5.1 Special Benefit ....................................................................................................... 10 5.2 General Versus Special Benefit ............................................................................. 13 5.3 Quantification of General Benefit ......................................................................... 14 5.4 Method of Assessment.......................................................................................... 15 5.5 Annual Assessment Calculation ............................................................................ 18 5.6 Cost of Living Inflator ............................................................................................ 18 5.7 Duration of Assessment ........................................................................................ 18 5.8 Appeals and Interpretation ................................................................................... 18 6. Assessment Diagram ..................................................................................................... 20 7. Assessment Roll ............................................................................................................ 22 Page 322 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 1 1. ENGINEER’S LETTER WHEREAS, the City Council of the City of Diamond Bar (the “City”), State of California, under the Landscaping and Lighting Act of 1972 (the “Act”), directed NBS to prepare and file the Annual Engineer’s Report for the Landscaping Assessment District No. 41-2021 (the “District”) for Fiscal Year 2026/27, in accordance with Article 4 of Chapter 1 of the Act and Article XIII D of the California Constitution (the “Article XIII D”). The report presents the plans and specifications describing the general nature, location and extent of the improvements to be maintained, an estimate of the costs of the administration, maintenance, operations and servicing of the improvements for Fiscal Year 2026/27, the diagram for the District, showing the area and properties to be assessed, and assessing the net amount upon the assessable lots and/or parcels within the District in proportion to the special benefit received. NOW THEREFORE, the assessments as detailed in this Engineer’s Report and as summarized in the table below are made to cover the portion of the estimated costs of maintenance, operation, and servicing of said improvements to be paid by the assessable real property within the District in proportion to the special benefit received. District Parcel Count (1) Single- Family Equivalents Proposed FY 2026/27 Rate Proposed FY 2026/27 Assessment Amount (2) Landscaping Assessment District No. 41-2021 554 542.48 $608.88 $330,305.00 (1) Includes active and levied parcels. (2) Does not include rounding. I, the undersigned, respectfully submit this Engineer’s Report and, to the best of my knowledge, information and belief, the Engineer’s Report, Assessments, and the Assessment Diagram herein have been prepared, computed and levied in accordance with the assessment methodology adopted, approved and ordered by the City Council of the City of Diamond Barat the time of District formation. ____________________________________________ John G. Egan, P. E. Assessment Engineer Page 323 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 2 2. INTRODUCTION 2.1 Background The City of Diamond Bar (the “City”) services and maintains turf areas, slopes and open space areas, and other improvements (the “Improvements”) in the Diamond Bar Hills area of the City. In order to fund the maintenance and operation (the “Services”) of these projects and Improvements, Landscaping Assessment District No. 41 was formed in 1985 by the County of Los Angeles prior to the incorporation of the City of Diamond Bar. Upon incorporation in 1989, the City assumed jurisdiction over the District. Since the passage of Proposition 218, the assessments for this existing district cannot be increased beyond the previously approved amount of $280.00 per parcel. This assessment amount does not generate sufficient revenue to fund the District’s Improvements and Services, and the annual shortfalls have been funded by the City’s General Fund. In 2021, the City Council directed that a new assessment be proposed and voted on by property owners within the District in accordance with Proposition 218 (Article XIIIC and D of the California Constitution). Their intent was to replace the existing District No. 41 with a new District No. 41-2021 that would adhere to the existing boundary and include the same improvements and services. These proposed assessments were supported by 87.55% of assessment ballots received from property owners (with each ballot weighted by the amount of assessments it represented). Therefore, on July 6, 2021, by its Resolution No. 2021-33, the City Council levied the new assessments for District No. 41-2021. This Engineer’s Report (the "Report") was prepared to establish the budget for the Improvements (as described below) that will be funded by the Fiscal Year 2026/27 assessments and other revenue, and to determine the general and special benefits received from the Improvements by property within the District and the method of assessment apportionment to lots and parcels. This Report and the assessments have been made pursuant to Part 2 of Division 15 of the California Streets and Highways Code, commonly known as the Act, and Article XIII D. 2.2 Process for Annual Assessment As required by the procedures specified in the Act, an Engineer’s Report must be prepared on an annual basis which contains a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. The City Council must also annually adopt a resolution of intention which: • Declares the intention of the City Council to levy and collect assessments within the assessment district for the fiscal year stated therein. • Generally describes the existing and proposed improvements and any substantial changes proposed to be made in existing improvements. • Refers to the assessment district by its distinctive designation and indicates the general location of the assessment district. Page 324 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 3 • Refers to the report of the engineer, on file with the City Clerk, for a full and detailed description of the improvements, the boundaries of the assessment district and any zones therein, and the proposed assessments upon assessable lots and parcels of land within the assessment district. • Gives notice of the time and place for public hearing by the City Council on the levy of the proposed assessment. • States whether the assessment is proposed to increase from the previous year. If the assessments are to be levied in the same or lesser amounts than the maximum assessment allowed, the City Clerk shall give notice of the public hearing by causing the Resolution of Intention to be published. Any interested person may, prior to the conclusion of the public hearing, file a written protest which shall state all grounds of objection. The protest shall contain a description sufficient to identify the property owned by the property owner filing the protest. During the course or upon conclusion of the hearing, the City Council may order changes in any of the matters provided in the report, including changes in the improvements, any zones within the assessment district, and the proposed diagram or the proposed assessment. If the assessment to be levied exceeds the maximum assessment allowed, the City must comply with the procedures specified in Article XIII D and Proposition 218. The City Council, upon conclusion of the public hearing must then adopt a resolution confirming the diagram and assessment, either as originally proposed or as changed by it. The adoption of the resolution shall constitute the levy of an assessment for the fiscal year referred to in the report. If confirmed, the assessments would be submitted to the County Auditor Controller for inclusion on the property tax roll. Beginning in 2025, NBS became the Assessment Engineer for the District. To maintain an accurate reference and legally defensible record of the District, pertinent language used in previous engineer’s reports has been retained herein and is cited with footnotes, as appropriate. 2.3 Legislative Context In 1996, California Voters adopted Proposition 218, the “Right to Vote on Taxes Act” which added Articles XIII C and XIII D to the California Constitution. Article XIII D imposes certain substantive and procedural requirements on any agency that wishes to levy special assessments. Article XIII D imposes four basic substantive requirements on assessments1: • All parcels that will have a special benefit conferred upon them and upon which an assessment will be imposed must be identified; • The general benefits must be distinguished from the special benefits conferred on the parcels; • The proportionate special benefit derived by each parcel must be determined in relationship to the entirety of the capital improvement, the maintenance and operation expenses of the public improvement, or the cost of the property related service being provided; and • The amount assessed to a parcel must not exceed the reasonable cost of the proportional special benefit conferred on that parcel and does not include any costs attributable to the general benefit. 1 California Constitution Article XIII D Section 4. Page 325 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 4 Since the initial passage of Proposition 218, several court rulings have helped provide context and direction on the practical implementation procedures and requirements for levying assessments. Several of the key concepts from these rulings are summarized below. GENERAL BENEFIT Article XIII D requires an agency to separate the general benefits from the special benefits conferred because only special benefits are assessable. The Court of Appeal in Golden Hills Neighborhood Assn., Inc. v. City of San Diego (2011)2 clarified this concept by stating, “Separation and quantification of general and special benefits must be accomplished by apportioning the cost of a service or improvement between the two and assessing property owners only for the portion of the cost representing special benefits.” The Court of Appeal in Beutz v. County of Riverside (2010) (“Beutz”)3 quoted from the Legislative Analyst’s Office pamphlet titled “Understanding Proposition 218” which states an agency must, “estimate the amount of special benefit landowners would receive from the project or service, as well as the amount of ‘general benefit.’ This step is needed because Proposition 218 allows local government to recoup from assessments only the proportionate share of cost to provide the special benefit.” The Court in Beutz furthered this idea stating, “Separating the general from the special benefits of a public improvement project and estimating the quantity of each in relation to the other is essential if an assessment is to be limited to the special benefits.” The Court of Appeal in Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority (2008) (“SVTA”) 4 clarified that general benefits are not restricted to benefits conferred only on persons and property outside the assessment district but can include benefits both conferred on real property located in the district or to the public at large. The “public at large” includes all members of the public, including those who live, work, and shop within the district, and not simply transient visitors. BENEFIT-BASED NOT COST-BASED In Bonander v. Town of Tiburon (2009) (“Tiburon”)5, the Court of Appeal clarified the idea that assessments must be apportioned based upon benefit rather than cost. The Court stated, “proportionate special benefit is the basis upon which a project’s total assessable costs are apportioned among parcels within an assessment district.” The assessment on a particular property cannot be based on the relative cost of the improvements, but rather the special benefit conferred on such property. The Court in Tiburon also stated, “an assessment represents the entirety of the cost of the improvement or property-related service, less any amount attributable to general benefits (which may not be assessed), allocated to individual properties in proportion to the relative special benefit conferred on the property.” 2 Golden Hill Neighborhood Assn. v. City of San Diego CA4/1, D062203 (Cal. Ct. App. 2013) 3 Beutz v. County of Riverside, 109 Cal. Rptr. 3d 851 (Cal. Ct. App. 2010) 4 Silicon Valley Taxpayers' Association Incorporated v. Santa Clara County Open Space Authority, 44 Cal. 4th 431 (2008). 5 Bonander v. Town of Tiburon, 147 Cal. App. 4th 1116 (Cal. Ct. App. 2007) Page 326 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 5 PUBLIC PROPERTY Section 4, Subdivision (a) of Article XIII D states, in part, “Parcels within a district that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly owned parcels in fact receive no special benefit.” Historically there had been differing opinions about whether this requirement that publicly owned property should not be exempt actually meant those properties must be assessed. The Court of Appeal in Manteca Unified School District v. Reclamation District No. 17 et al (2017)6 clarified this issue by stating, “Section 4, Subdivision (a) of Article XIII D of the California Constitution unambiguously conditions any continuing benefit assessment exemption on a showing by clear and convincing evidence of no special benefit.” IMPRECISION The Court in Tiburon acknowledged the difficulty of trying to precisely assign and measure special benefit, stating, “Any attempt to classify special benefits conferred on particular properties and to assign relative weights to those benefits will necessarily involve some degree of imprecision.” The Court in Tiburon went on to say that a formula assigning equal weight to different special benefits “may be a legally justifiable approach to measuring and apportioning special benefits, [but] it is not necessarily the only valid approach. Whichever approach is taken to measuring and apportioning special benefits; however, it must be both defensible and consistently applied.” 6 Manteca Unified School District v. Reclamation District No. 17 et al, C077906 (Cal. Ct. App. 2017) Page 327 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 6 3. PLANS AND SPECIFICATIONS The work and improvements proposed to be undertaken by the City and the cost thereof paid from the levy of the annual assessment provide special benefit to assessor parcels within the District defined in the Method of Assessment herein. Consistent with the Act, the Improvements are generally described as follows: The City maintains landscaping and other improvements in locations within the District’s boundaries. The work and Improvements to be undertaken by the District, and the cost thereof paid from the levy of the annual assessment provide special benefit to parcels within the District as defined in the Method of Assessment herein. In addition to the definitions provided by the Act, the work and Improvements are generally described as mini-parks, slopes, and open space areas within the District. The Assessment Diagram shows the location and extent of the Improvements to be installed, maintained, or serviced by the proceeds from the assessment. Installation, maintenance, and servicing of Improvements, may include, but are not limited to, turf and play areas, landscaping, ground cover, shrubs and trees, irrigation systems, sidewalks, parking lots, lighting, fencing, graffiti removal and repainting, labor, materials, supplies, utilities and equipment, as applicable, at each of the locations owned, operated or maintained by the District. Installation - means the construction of Improvements, including, but not limited to, land preparation (such as grading, leveling, cutting and filling), sod, landscaping, irrigation systems, walkways, drainage and lights, playground equipment, play courts, playing fields, recreational facilities, and public restrooms. Maintenance - means the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any improvement, including repair, removal, or replacement of all or part of any improvement; providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury; the removal of trimmings, rubbish, debris, and other solid waste; the cleaning, sandblasting, and painting of walls and other improvements to remove or cover graffiti. Servicing - means the furnishing of electric current, or energy, gas or other illuminating agent for any public lighting facilities or for the lighting or operation of any other improvements, or water for the irrigation of any landscaping, the operation of any fountains, or the maintenance of any other improvements. Incidental expenses include all of the following: (a) The costs of preparation of the report, including plans, specifications, estimates, diagram, and assessment; (b) the costs of printing, advertising, and the giving of published, posted, and mailed notices; (c) compensation payable to the County for collection of assessments; (d) compensation of any engineer or attorney employed to render services in proceedings pursuant to this part; (e) any other expenses incidental to the construction, installation, or maintenance and servicing of the Improvements; (f) any expenses incidental to the issuance of bonds or notes pursuant to Streets & Highways Code Section 22662.5; and (g) costs associated with any elections held for the approval of a new or increased assessment (according to Streets & Highways Code §22526). Modifications to the District structure could include, but are not limited to, substantial changes or expansion of the Improvements provided, substantial changes in the service provided, modifications or Page 328 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 7 restructuring of the District including annexation or detachment of specific parcels, revisions in the method of apportionment, or proposed new or increased assessments. The assessment proceeds will be exclusively used for Improvements within the District plus incidental expenses. Page 329 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 8 4. ESTIMATE OF COSTS 4.1 District Budget Fiscal Year 2026/27 estimated costs of maintenance and servicing the Improvements as described in the Plans and Specifications of this Report are summarized below. Description Proposed FY 2026/27 Costs Salaries & Benefits $41,973 Advertising 3,000 Utilities 86,000 Maintenance of Grounds/Buildings 25,000 Professional Services 5,000 Landscape Maintenance 225,000 Tree Maintenance 23,000 Weed/Pest Abatement 45,000 Capital Improvements 0 Total Estimated Expenditures $453,973 Contingencies/Reserves 75,152 Contributions from Other Sources (1) (198,820) Fiscal Year 2026/27 Net Amount to be Assessed (2) $330,305 (1) Includes City General Fund contribution and fund balance carryover. (2) The net available funds, after incidental, administrative, financing and other costs shall be expended exclusively for Improvements within the boundaries of the District or as described herein, and appropriate incidental and administrative costs as defined in the Plans and Specifications section. A list containing the Fiscal Year 2026/27 assessment and number of parcels proposed to be assessed is included in Section 7 of this Report. 4.2 Balance to Levy The following table shows the total costs, additional revenues and contributions, and the balance to levy for Fiscal Year 2026/27. Page 330 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 9 Description Amount Salaries & Benefits $41,973 Operating Expenses & Services 412,000 Capital Improvements / Reserves 75,152 Total District Costs $529,125 Contribution to (from) Operational Reserves (181,367) Other Revenue Sources (1) (17,453) Balance to Levy $330,305 (1) Includes City General Fund contribution. Total District Costs - Includes the personnel services, maintenance, and operations, capital (including capital replacement costs), indirect costs, and equipment. Contribution to (from) Operational Reserves - The operational reserves item provides funds to operate the District from the time period of July 1 (beginning of the fiscal year) through January when the County provides the City with the first installment of assessments collected from the property tax bills. This eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of the fiscal year. Negative amounts shown here are transfers that are used to reduce the Balance to Levy. Other Revenue Sources - The amount of additional funds designated for use by the District that are not from District assessments. These funds are added to the District account to reduce assessments and may be from either non-District sources including City General Fund contributions, fund balance carryover, or District sources including interest earnings. Balance to Levy - The total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of the total direct and administration costs, reserves, contributions, and other revenue sources. Page 331 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 10 5. METHOD OF APPORTIONMENT The following section includes an explanation of the benefits to be derived from the Improvements throughout the District, as well as a description of the assessment methodology used to apportion the total assessment to properties within the District. The Fiscal Year 2024/25 Engineer’s Report was prepared by a different engineer of record and specific language from the Fiscal Year 2024/25 Engineer’s Report 7 has been referenced to describe the Method of Apportionment within the following section of this Report. The District consists of all assessor parcels within the boundaries as defined by the Assessment Diagram included with this Report. Further, all assessor parcels, including all privately and publicly owned parcels, are identified by Assessor Parcel Numbers listed within the included assessment roll. The method used for apportioning the assessment is based on the proportional special benefits to be derived by the properties in the District over and above general benefits conferred on real property or to the public at large. The assessment is apportioned to the parcels in proportion to the relative special benefit from the Improvements. The apportionment of special benefit is a two-step process: the first step is to identify the types of special benefit arising from the improvements, and the second step is to allocate the assessments to property based on the estimated relative special benefit for each type of property. 5.1 Special Benefit The improvements are expected to confer certain special benefits to the parcels within the District. Pursuant to the Prior Engineer’s Report, the special benefit conferred to parcels is more fully described as follows: The following benefit categories summarize the types of special benefit to residential, commercial, industrial, and other lots and parcels resulting from the Improvements to be provided with the assessment proceeds. These types of special benefit are summarized as follows: A. Proximity to Improved Landscaped Areas and Other Public Improvements within the District. B. Improved Views within the District. C. Extension of a property’s outdoor areas and green spaces for properties within close proximity to the Improvements. D. Safety and Security within the District. E. Creation of individual lots for residential and commercial use that, in absence of the assessments, would not have been created. 7 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 332 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 11 The SVTA decision provides enhanced clarity to the definitions of special benefits from landscaping and parks to properties in three distinct areas: proximity, expanded or improved access, and views. The SVTA decision also clarifies that a special benefit is a service or improvement that provides a direct advantage to a parcel and that indirect or derivative advantages resulting from the overall public benefits from a service or improvement are general benefits. The SVTA decision also provides specific guidance that setback landscaping is a direct advantage and special benefit to property that is proximate to a landscaped area that is improved by an assessment: The characterization of a benefit may depend on whether the parcel receives a direct advantage from the improvement (e.g. proximity to a park) or receives an indirect, derivative advantage resulting from the overall public benefits of the improvement (e.g. general enhancement of the district’s property values). Proximity, improved access and views, in addition to the other special benefits listed herein further strengthen the basis of these assessments. 8 In addition, the following special benefits are identified in the Prior Engineer’s Report: PROXIMITY TO IMPROVED LANDSCAPED AREAS WITHIN THE DISTRICT Only the specific properties within close proximity to the Improvements are included in the District. The District has been narrowly drawn to include the properties that receive special benefits from the Improvements. Therefore, property in the District enjoys unique and valuable proximity and access to the Improvements that the public at large and property outside the District do not share. In absence of the assessments, the Improvements would not be provided, and the public improvements funded in the District would be degraded due to insufficient funding for maintenance, upkeep and repair. Therefore, the assessments provide Improvements that are over and above what otherwise would be provided. Improvements that are over and above what otherwise would be provided do not by themselves translate into special benefits but when combined with the unique proximity and access enjoyed by parcels in the District, they provide a direct advantage and special benefit to property in the District. IMPROVED VIEWS WITHIN THE DISTRICT The City, by maintaining permanent public improvements funded by the assessments in the District, provides improved views to properties in the District. The properties in the District enjoy close and unique proximity, access and views of the specific Improvements funded in the District; therefore, the improved and protected views provided by the assessments are another direct and tangible advantage that is uniquely conferred upon property in the District. EXTENSION OF A PROPERTY’S OUTDOOR AREAS AND GREEN SPACES FOR PROPERTIES WITHIN CLOSE PROXIMITY TO THE IMPROVEMENTS In large part because it is cost prohibitive to provide large open land areas on property in the District, the residential, commercial, and other benefiting properties in the District do not have large outdoor areas 8 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 38, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 333 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 12 and green spaces. The Improvements within the District provide additional outdoor areas that serve as an effective extension of the land area for proximate properties because the Improvements are uniquely proximate and accessible to property in close proximity to the Improvements. The Improvements, therefore, provide an important, valuable and desirable extension of usable land area for the direct advantage and special benefit of properties in the District because such properties have uniquely good and close proximity to the Improvements. SAFETY AND SECURITY WITHIN THE DISTRICT The City, through proper installation, maintenance, and servicing of public and private improvements funded by the assessments in the District, provides increased security and safety by preventing crime and suppressing fire. For parks and recreation improvements, proper lighting and well-kept landscapes help to deter crime and vandalism. Other landscaped area activities such as slope maintenance and brush clearing provide critical fire suppression. CREATION OF INDIVIDUAL LOTS FOR RESIDENTIAL USE THAT, IN ABSENCE OF THE ASSESSMENTS, WOULD NOT HAVE BEEN CREATED In the District, the original owner/developer(s) of the property within the District agreed unanimously to the assessments. The assessments provide the necessary funding for improvements that were required as a condition of development and subdivision approval. Therefore, such assessments allowed the original property to be subdivided and for development of the parcels to occur. As parcels were sold, new owners were informed of the assessments through the title reports, and in some cases, through Department of Real Estate “White Paper” reports that the parcels were subject to assessment. Purchase of property was also an “agreement” to pay the assessment. Therefore, in absence of the assessments, the lots within most of the District would not have been created. These parcels, and the improvements that were constructed on the parcels, receive direct advantage and special benefit from the assessments. SUMMARY OF RELATIVE WEIGHT OF BENEFIT FACTORS A solid argument could be made that the creation of individual lots benefit comprises 100% of the benefit because the Improvements were incorporated into the original planning and design of the subdivision, and thus were deemed to be necessary and required for the development of the lot. Without those Improvements and associated benefit, the lots would not have been created. Nevertheless, four other definitive benefits accruing to the parcels within the District are identified, and an allowance should be made within the overall relative importance of benefits. The relative benefit level of the five identified benefits used in this Report is shown below. Benefit Category Relative Weight Proximity & Access 10% Views 10% Outdoor Area Extension 10% Safety & Security 10% Creation of Lots 60% Total Benefit 100% Page 334 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 13 5.2 General Versus Special Benefit Article XIIIC of the California Constitution requires any local agency proposing to increase or impose a benefit assessment to “separate the general benefits from the special benefits conferred on a parcel.” The rationale for separating special and general benefits is to ensure that property owners subject to the benefit assessment are not paying for general benefits. An assessment can fund special benefits but cannot fund general benefits. Accordingly, a separate estimate of the special and general benefit is given in this section. In other words: Total Benefit = General Benefit + Special Benefit There is no widely accepted or statutory formula for general benefit. General benefits are benefits from improvements or services that are not special in nature, are not “particular and distinct” and are not “over and above” benefits received by other properties. SVTA provides some clarification by indicating that general benefits provide “an indirect, derivative advantage” and are not necessarily proximate to the improvements. In this Report, the general benefit is liberally estimated and described and then budgeted so that it is funded by sources other than the assessment. The starting point for evaluating general and special benefits is the current, baseline level of service. The assessment will fund Improvements “over and above” this general, baseline level and the general benefits estimated in this section are over and above the baseline. A formula to estimate the general benefit is listed below: General Benefit = Benefit to Real Property Outside the District + Benefit to Real Property Inside the District that is Indirect and Derivative + Benefit to the Public at Large Special benefit, on the other hand, is defined in the state constitution as “a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large.” The SVTA decision indicates that a special benefit is conferred to a property if it “receives a direct advantage from the improvement (e.g., proximity to a park).” In these assessments, as noted, properties in the District have close and unique proximity, views and access to the Improvements and uniquely improved desirability from the Improvements and other properties and the public at large do not receive significant benefits because they do not have proximity, access or views of the Improvements. Therefore, the overwhelming proportion of the benefits conferred to property is special and is only minimally received by property outside the Districts or the public at large. Page 335 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 14 5.3 Quantification of General Benefit Although the analysis used to support these assessments concludes that the benefits are solely special, as described above, consideration is made for the suggestion that a portion of the benefits are general. General benefits cannot be funded by these assessments – the funding must come from other sources. In this section, the general benefit from the Improvements is liberally estimated and described using the precise language from the Prior Engineer’s Report in the sections below. BENEFIT TO PROPERTY OUTSIDE THE DISTRICT Properties within the District receive almost all of the special benefits from the Improvements because properties in the District enjoy unique close proximity and access to the Improvements that is not enjoyed by other properties or the public at large. However, certain properties within the proximity/access radius of the Improvements, but outside of the boundaries of the District, may receive some benefit from the Improvements. Since this benefit is conferred to properties outside the District boundaries, it contributes to the overall general benefit calculation and will not be funded by the assessments. The general benefit to property outside of the District is calculated with the parcel and data analysis. Since certain properties outside the District enjoy close proximity and access to the Improvements cannot be assessed by the District, this is a form of general benefit to other property. There are 23 parcels outside the District that are directly adjacent to areas where slopes are maintained by the District. The benefits conferred to these properties do not include the Lot Creation benefit factor, therefore the benefit is reduced by 60%. The general benefit to property outside of the District is calculated as follows. Assumptions: • 23 Parcels Outside the District • 554 Parcels In the District • 40% Benefit Factor Calculation of General Benefit to Property Outside the District: 23 / (23 + 554) x 40% = 1.59%. BENEFIT TO PROPERTY INSIDE THE DISTRICT THAT IS INDIRECT AND DERIVATIVE The “indirect and derivative” benefit to property within the District is particularly difficult to calculate. A solid argument can be presented that all benefit within the District is special, because the other Improvements are clearly “over and above” and “particular and distinct” when compared with the baseline level of service and the unique proximity, access and views of the other Improvements enjoyed by benefiting properties in the District. Nevertheless, the SVTA decision indicates there may be general benefit “conferred on real property located in the district.” A measure of the general benefits to property within the assessment area is the percentage of land area within or directly abutting the District that is publicly owned and used for regional purposes such as major roads, rail lines and other regional facilities because such properties used for regional purposes could provide indirect benefits to the public at large. The District boundaries are narrowly drawn to include only the residential areas within the neighborhood, and there are no regional facilities within the District. Therefore, the indirect and derivative general benefits to property within the District are zero. Page 336 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 15 BENEFIT TO THE PUBLIC AT LARGE The general benefit to the public at large can be estimated by the proportionate amount of time that the District’s Improvements are used and enjoyed by individuals who are not residents, employees, customers or property owners in the District. It should be noted that these Improvements do not attract the public at large in the same way as park improvements, and they confer far less benefit to the public at large than do similar park improvements. In essence, the public does not visit an area to enjoy slope improvements in the same way as they may visit a park. However, certain slopes maintained by the District may provide some enhancement to views enjoyed by the public as they drive past. Approximately 25% of the slopes and linear green areas maintained by the District lie along arterial roadways that carry a high percentage of traffic not associated with people who are not residents or property owners within the District. While there are not statistics available as to what percentage of passerby vehicle trips are by non-residents or non-property owners, a liberal factor of 90% is assumed. Finally, of all the types of benefits conferred by the Improvements, passersby only benefit from views, which are estimated at 10% of the total benefits. Therefore, (90% of 25%) x 10% = 2.25% of the benefits from the Improvements are general benefits to the public at large. TOTAL GENERAL BENEFITS Using a sum of these three measures of general benefit, approximately 3.84% of the benefits conferred by the Improvements may be general in nature and should be funded by sources other than the assessment. Landscaping General Benefit Calculation Outside the District 1.59% Inside the District 0.00% Public At Large 2.25% Total General Benefit 3.84% CURRENT GENERAL BENEFIT CONTRIBUTION FROM THE CITY This general benefit cannot be funded from the assessments; it must be funded from other sources such as the City’s General Fund or other non-District funds. These contributions can also be in the form of in- lieu contributions to the installation and maintenance of the Improvements such as other City assets that support and protect the Improvements. The City will contribute both monetary and in-lieu resources to ensure that the general benefits conferred by the proposed Improvements are not funded by the assessments. 5.4 Method of Assessment The development of an assessment methodology requires apportioning benefit to determine the relative special benefit for each property. The precise language from the Prior Engineer’s Report is included below: The allocation of special benefits to property is partially based on the type of property and the size of property. These benefits can also partially be measured by the occupants on Page 337 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 16 property in the District because such parcel population density is a measure of the relative benefit a parcel receives from the Improvements. It should be noted that many other types of “traditional” assessments also use parcel population densities to apportion the assessments. For example, the assessments for sewer systems, roads and water systems are typically allocated based on the population density of the parcels assessed. Therefore, the apportionment of benefit is reasonably based on the type of parcel, the size of parcels and the population density of parcels. The next step in apportioning assessments is to determine the relative special benefit for each property. This process involves determining the relative benefit received by each property in relation to a single-family home, or, in other words, on the basis of Single Family Equivalents (“SFE”). This SFE methodology is commonly used to distribute assessments in proportion to estimated special benefit and is generally recognized as providing the basis for a fair and appropriate distribution of assessments. For the purposes of this Report, all properties are assigned an SFE value, which is each property’s relative benefit in relation to a single-family home on one parcel. In this case, the "benchmark" property is the single-family detached dwelling which is one Single Family Equivalent or one SFE.9 RESIDENTIAL PROPERTIES Certain residential properties in the District that contain a single residential dwelling unit are assigned 1.0 SFE. Detached or attached houses and zero-lot line houses are included in this category of single-family residential property. If there is more than one single family detached dwelling on a parcel, it will be charged one SFE per single family detached dwelling. Another residential property type in the District is the condominium. These properties benefit from the Improvements in proportion to the average number of people who reside in multi-family residential units versus the average number of people who reside in a single-family home (“Population Density Factor”, or “PDF”). Using the total population of each property type in the City from recent Census data and dividing it by the total number of such households reveals that approximately 3.42 persons occupy each single- family residence, whereas an average of 2.48 persons occupy each condominium. The ratio of 2.48 people (condominium) to 3.42 people (single-family) results in a PDF of 0.73 for condominiums. The PDF of 0.73 for condominiums is applied to certain benefit categories, whereas other benefit categories are applicable to condominiums in full measure. The calculation of the overall SFE factors are summarized below. 9 Method of Apportionment and subsections as detailed in the Fiscal Year 2024/25 Engineer’s Report, City of Diamond Bar, Landscaping Assessment District No. 41-2021, dated July 2024 and approved by City Council on June 18, 2024 (“Prior Engineer’s Report”). Page 338 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 17 Benefit Category Weight SFR Condo PDF SFE Factor PDF SFE Factor Proximity & Access 10% 100% 10% 73% 7.3% Views 10% 100% 10% 73% 7.3% Outdoor Area Extension 10% 100% 10% 73% 7.3% Safety & Security 10% 100% 10% 100% 10% Creation of Lots 60% 100% 60% 100% 60% Total Benefit 100% 100% 92% There are no other multi-family property types (e.g., duplex, triples, fourplex, apartments) in the District, and none are foreseen in the near future. Therefore, no other multi-family assessment rate is calculated. VACANT/UNDEVELOPED PROPERTIES While there are currently no vacant or undeveloped properties in the District, the following discussion is included in the event that properties become vacant in the future. The benefit to undeveloped properties is determined to be proportional to the corresponding benefits for similar type developed properties, but at a lower rate due to the lack of improvements on the property. A measure of the benefits accruing to the underlying land is the average value of land in relation to Improvements for developed property. An analysis of the assessed valuation data from the City found that approximately 45% of the assessed value of improved properties is classified as the land value. It is reasonable to assume, therefore, that approximately 45% of the benefits are related to the underlying land and 55% are related to the improvements and the day-to-day use of the property. Using this ratio, the SFE factor for vacant/undeveloped parcels is 0.45 per parcel. OTHER PROPERTY TYPES Notwithstanding the foregoing discussion, there are four other types of property uses to be considered: Water Utility: The Walnut Valley Water District owns a parcel with two water tanks used to supply water for domestic use and fire protection. This property has no people stationed on-site and derives no benefit in any category. Therefore, it is not assessed. Open Space: The open space parcels that lie within the District are part of the Improvements (views, safety and security, etc.) Therefore, these parcels are not assessed. The property in the District is fully developed, has been stable since its original development in the late 1980s, and is zoned such that a change in the predominately residential land use is not expected in the future. As a result, there is no analysis of type, size, and population densities for other uses such as commercial, industrial, and institutional properties. Page 339 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 18 5.5 Annual Assessment Calculation The table below shows the calculation of the estimated number of SFEs for Fiscal Year 2026/27. Description Parcel Count SFE Factor SFEs Single Family Parcels 410 100% 410.00 Condominium Parcels 144 92% 132.48 Total 554 542.48 The following table shows the calculation of the assessment rate. Description Fiscal Year 2026/27 Amount Balance to Levy (1) $330,305.00 Total SFEs 542.48 Assessment rate per SFE $608.88 (1) Does not include rounding. The assessment rate per land use is shown below. Description Fiscal Year 2026/27 Assessment Rate Single Family Parcels $608.88 Condominium Parcels $560.17 5.6 Cost of Living Inflator The assessment shall be subject to an adjustment up to a cap of 3% annually, which adjustment shall be based upon actual costs, including any reasonable reserves, supported by a report prepared in accordance with Article XIIID of the California Constitution. If the report does not support an increase or supports a reduction in the assessment, then the assessment shall not be increased or shall be lowered as applicable. 5.7 Duration of Assessment It is proposed that the assessments be continued every year after their formation, so long as the public improvements need to be maintained and improved, and the City requires funding for the improvements in the District. As noted previously, the assessment can continue to be levied annually after the City Council approves an annually updated Engineer’s Report, budget for the assessment, improvements to be provided, and other specifics of the assessment. In addition, the City Council must hold an annual public hearing to continue the assessment. 5.8 Appeals and Interpretation Any property owner who feels that the assessment levied on the subject property is in error as a result of incorrect information being used to apply the foregoing method of assessment may file a written appeal Page 340 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 19 with the City Manager or his or her designee. Any such appeal is limited to correction of an assessment during the then-current Fiscal Year and applicable law. Upon filing of any such appeal, the City Manager or his or her designee will promptly review the appeal and any information provided by the property owner. If the City Manager or his or her designee finds that the assessment should be modified, the appropriate changes shall be made to the Assessment Roll. If any such changes are approved after the Assessment Roll has been filed with the County for collection, the City Manager or his or her designee is authorized to refund to the property owner the amount of any approved reduction. Any dispute over the decision of the City Manager or his or her designee shall be referred to the Diamond Bar City Council, and the decision of the City Council shall be final. Page 341 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 20 6. ASSESSMENT DIAGRAM The parcels to be assessed in the District are shown on the Assessment Diagram, which is on file with the City Clerk of the City of Diamond Bar and includes all those properties included in the original formation of the District and subsequent annexations. The following Assessment Diagram is for general location only and is not to be considered the official boundary map. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor of the County of Los Angeles, at the time this Report was prepared, and are incorporated by reference herein and made part of this Report. Page 342 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 21 Page 343 of 346 City of Diamond Bar Landscaping Assessment District No. 41-2021 - Fiscal Year 2026/27 Engineer’s Report 22 7. ASSESSMENT ROLL Assessor’s parcel identification, for each lot or parcel subject to the assessment, shall be based on the County Assessor’s secured roll data for the applicable year in which this report is prepared and is incorporated herein by reference. A listing of assessor’s parcels subject to the assessments for Fiscal Year 2026/27, along with the assessment amounts, is on file in the office of the City Engineer and incorporated herein by reference. Based on County Assessor’s secured roll data, current assessor’s parcels, including corrected and/or new assessor’s parcels, will be submitted and/or resubmitted to the County Auditor/Controller. The annual assessment amount to be levied and collected for the resubmitted parcel(s) shall be determined in accordance with the method of apportionment and assessment rate approved in this report. Therefore, if a single assessor’s parcel has a status change in development, other land use change, or subdivides into multiple assessor’s parcels, the charge amounts applied to each of the new assessor’s parcels shall be recalculated and applied according to the approved method outlined in the method of apportionment and assessment rate rather than a proportionate share of the original assessment amount. Page 344 of 346 Agenda Item #: 8.1 Meeting Date: May 19, 2026 CITY COUNCIL AGENDA REPORT TO: Honorable Mayor and Members of the City Council FROM: Daniel Fox, City Manager SUBJECT: City Vacancies, Recruitment and Retention Efforts. STRATEGIC GOAL: Open, Engaged and Responsive Government RECOMMENDATION: Conduct a Public Hearing on City Vacancies, and Recruitment and Retention Efforts. FINANCIAL IMPACT: There is no direct fiscal impact associated with conducting the public hearing required under Government Code section 3205.3. However, addressing recruitment and retention issues may involve future budget and bargaining considerations, which will be presented to the City Council as necessary. BACKGROUND: Assembly Bill 2561 was introduced to address the issue of job vacancies in local government, which adversely affects the delivery of public services and employee workload. Among other requirements, the bill mandates that public agencies present the status of vacancies and recruitment and retention efforts during a public hearing before the agency’s governing body at least once per fiscal year. The bill was enacted into law and is codified at Government Code section 3502.3 effective January 1, 2025. In compliance with the legal obligations, the City is required to do the following: 1. Public Hearing: At least once each fiscal year, at a public hearing before the City Council, the City shall present information regarding the status of vacancies and recruitment and retention efforts (Gov. Code § 3502.3(a)(1)) and identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process (Gov. Code § 3502.3(a)(3)). This presentation must occur prior to the City Council’s adoption of the final annual budget for the City. (Gov. Code § 3502.3(a)(2). 2. Employee Organization Participation: Allow the recognized employee organization at the City to make a presentation during the public hearing concerning vacancies and recruitment and retention efforts. (Gov. Code § 3502.3(b).) The City’s sole employee organization representing part-time non-benefitted Parks and Recreation employees was notified on April 16, 2026 of the public hearing and their opportunity to participate Page 345 of 346 Agenda Item #: 8.1 Meeting Date: May 19, 2026 during the presentation. ANALYSIS: The City’s current 2025/26 fiscal year budget identifies a total of 67 full-time benefited positions across seven (7) departments. The seven (7) City departments provide external and internal service in the areas of Administration (City Manager’s Office, City Clerk’s Office and Community Relations), Community Development, Finance, Human Resources/Risk Management, Information Systems, Parks and Recreation, and Public Works. Between July 2025 – April 2026, the City had a total of six (6) vacancies between July 2025 and April 2026 that were all created through voluntary employee resignations for external promotional job opportunities. The average vacancy rate during that same time period was 3.3%. Through April 2026, the City filled two (2) of the six (6) positions. The remaining vacancies are currently in the process of being filled. The City also employs a number of part-time non-benefitted staff members that work on an intermittent or seasonal basis. These part-time positions are budgeted in a salary pool, filled based on operational and programmatic needs, and do not work more than 999 hours in a fiscal year. The City employs approximately 50 part-time non-benefitted employees, depending on the time of year, in the following job classifications: Administrative Intern, Recreation Leader, Senior Recreation Leader, Recreation Specialist and Facility Attendant. A total of 16 part-time non-benefitted employees were hired between July 2025 – April 2026. Seasonal hiring efforts are underway to bring additional part-time non-benefitted Parks and Recreation department employees to staff the scheduled summer programs and events. Since 2021, the City Council’s strategic plan has included an Employer of Choice initiative to support the recruitment and retention of high-performing employees. A number of investments have been made by the City Council to support this effort for both part-time and full-time employees. Despite some of these efforts, obstacles to the hiring process for and retention of full-time positions still exist. They include an increased number of retirement-eligible staff and competitive external job opportunities. In the future, the City can consider making changes to its existing Personnel Rules and Regulations, Rule IV Classification, Section 8. Flexible Staffing Program to broaden the number of eligible job classifications for the program and to add job classifications to round out job families to better prepare for succession planning purposes. Taking these actions would allow City departments to fill vacancies in a more efficient and expeditious manner, thereby optimizing the delivery of services and programs to the public. Finally, these actions will allow the City to more flexibly move employees within a job series in an efficient and cost-effective manner that is likely to result in an increase of job knowledge transfer and retention of high-performing staff. PREPARED BY: Amy Haug, Human Resources & Risk Management Director ATTACHMENTS: None Page 346 of 346 To: VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL CITY CLERK FROM: L DATE: 1 D ADDRESS: PHONE: (Optional) (Optional) ORGANIZATION: AGENDA#/SUBJECT: I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name as written above. Signature This document is a public record subject to disclosure under the Public Records Act. 5� VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL TO: CITY CLERK �. FROM: A,L FROM: / r I .Z ADDRESS: PHONE: ! A (Optional) (Optional) ORGANIZATION: GLi�%--�' S. Aw r y /-+�•ti'� AGENDA#/SUBJECT: d7a'� � d,) /'v�'Vs' of -C', S, I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name as written above. gnatu This document is a public record subject to disclosure under the Public Records Act. TO: FROM: ADDRESS: VOLUNTARY REQUEST TO ADDRESS THE CITY COUNCIL CITY CLERK l i Jra � y v _.._ DATE: PHONE: (Optional) (Optional) ORGANIZATION: r 0-�n AGENDA#/SUBJECT: I expect to address the Council on the subject agenda/subject item. Please have the Council Minutes reflect my name as written above. 11' Signatun This document is a public record subject to disclosure under the Public Records Act.