For the Month Ending March 31, 2016

Quick Look Indicators This Month This Year See Page Cash Balance   3 Residential Building Permits   4 Industrial & Commercial Bldg. Permits   5 Revenues   6 Expenditures   6 Investment Report   10 May 11, 2016

MANAGEMENT SERVICES DEPARTMENT

Executive Summary Cash Balances: The City’s General Fund cash balance is currently in a favorable position at $8.3 million, decreasing $0.1 million from February’s month-end. March 2016’s cash balance is $1.7 million higher than March 2015’s cash balance.

Development Activity: Residential development construction activity through March totals 442 single family dwelling (SFD) permits (161% of the budget of 275 SFDs). Last fiscal year a total of 349 SFDs permits were issued.

Revenues: General Fund revenues through March 2016 are $4.0 million higher than March 2015. Revenues are at 59.5% of the current annual budget compared to a target of 75%, lagging primarily due to the State’s Triple Flip which delays receipt of a large portion of the Sales Tax and Property Tax In-Lieu. Development related revenues have achieved 88.2% of their annual budget.

Expenditures: Expenditures for the fiscal year are under budget at 70.38% compared to a target of 75%.

Investment Report: The City’s investments, through March 2016, have had a rate of return averaging 1.02%; the City’s investment policy benchmark of the “Two-Year Treasury Note” had a return of 0.74%.

Special Reports: Economic Development (page 26): In March, the City issued 160 new business licenses and has a total of 9,058 active businesses as of March 31st. Also in March, there were 81 residential dwellings ready for occupancy based on the number of new sewer hook-ups.

Capital Reinvestment Fund (page 27): For the ten years ending June 30, 2015, the City of Fontana expended $187.1 million from the General Fund on capital improvement projects throughout the City. As of March 2016 $5.6 million of General Fund money is budgeted in this fund on various improvement projects throughout the City. This excludes Non-General fund sources.

MANAGEMENT SERVICES DEPARTMENT

CONTENTS Report Introduction……………………………………………….………………2

Cash Balance and Cash Available…………………………….….………………3 Development Activity…………………………………………….……………….4 Residential Development…………………………………….………...…4 Commercial and Industrial………………………………….……………5 General Fund Revenue and Expenditure Summary…………..……….…………………6 General Fund Revenue Categories…………….……….………………...7 Revenue Highlights…………………………………………….….………8 Departmental Summary………………………………….………..……...9 City and Agency Investment Report………………….………….……………10 Risk Liability Analysis……………………………………………….……………19 Cash and Due To/From Detail……………………..……………….………..….25 Economic Development………………………………..…………….……….....26 Capital Investment Fund #601 and Fund #603.…….………………….….....27 Grants Report ……………………………………………………………….…...28 Customer Service Quality Assurance Survey ….………………………..…..31 Police Helicopter Program..…………………....….………………………..…..32 Fire Services – County Contract……………....….………………………..…..33 Interchange Projects …………………………....….………………………..…..34

MANAGEMENT SERVICES DEPARTMENT

Report Introduction The following serves as an introduction to the Goals, Scope and Contents of this report.

Goals: Consistent with the City Council Goals of: To Operate in a Businesslike Manner; To Practice Sound Fiscal Management; and To Increase Citizen Involvement. This general-purpose “User Friendly” financial report is designed to meet the following objectives: To provide concise information needed to gain a fair understanding of the City’s financial position, results of operations and cash flows; To serve as the critical link between accounting systems and the users they are designed to serve; and To serve as an early warning document to indicate unfavorable financial events.

Scope: Initially, this report’s primary focus is on the fiscal events of the City’s General Fund. This focus will be expanded to other financial activities of the City funds as they occur and this report matures. Current year, monthly and fiscal-year-to-date (F-Y-T-D) information is provided on all charts and prior year data is provided in those areas where trend analysis is applicable. This report is not a substitute for the Comprehensive Annual Financial Report (CAFR).

Frequency: This report will be published monthly.

Contents: This report consists of various sections as detailed on the previous page. Each schedule within these sections contains descriptive information about the schedule. Some of these reports contain graphs to aid the reader. These graphs include a current year and two prior year trend lines and, where available, a five-year averages trend line. These trend lines provide a meaningful comparison of current year data.

Other Focus Features: Periodically, special reports will appear highlighting such fiscal areas as debt, cost allocation, long range fiscal plans, etc.

Contacts…Questions…Suggestions:

Call Lisa Strong, Management Services Director/Deputy City Treasurer…350-7671.

Prepared by Dawn Brooks

Page 2

MANAGEMENT SERVICES DEPARTMENT City of Fontana, Financial Performance Report General Fund Cash Balance and Cash Available

Cash Balance $30,000 Similar to a personal bank account, the Cash Balance in $000's City’s “Cash Balance” is the amount of $25,000 money in the bank at a certain date. $20,000

$15,000 March's ending cash balance reflects a decrease of $85,000 as compared to $10,000 February's ending balance. $5,000 Available Cash $- When other funds temporarily “borrow” $(5,000) money from the General Fund, the Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun remaining amount is called “Cash FY 15-16 Balance FY 14-15 Balance FY 13-14 Balance FY 12-13 Balance FY 11-12 Balance FY 11-FY15 Avg. Bal. Available". The City’s General Fund “Cash Available” $25,000 decreased by $0.5 million since $20,000 Available Cash in $000's February. Other funds have temporarily $15,000 borrowed $2,305,073 from the General Fund to offset negative cash balances. $10,000 This advance is primarily attributable to: $5,000 Prop 1B $521,143, Sewer Capital Project $264,973, Federal Law Enforcement $- Block Grant $732,587 and After School $(5,000)

Program $786,370. $(10,000) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Repayments to the General Fund will be made as funds become available. FY 15-16 Available FY 14-15 Available FY 13-14 Available FY 12-13 Available FY 11-12 Available FY 11-FY15 Avg. Avail. Net Monthly Cash The "Net Monthly Cash” (blue columns ) $15,000 Net Monthly Cash is the difference between the monthly $10,000 revenues and expenditures. $5,000 Occasionally, more expenditures will be $- $(5,000) paid than revenues received during the $(10,000) month. When this occurs, the column $(15,000) drops below the zero line and turns $(20,000) white. If this situation were continuous, $(25,000) a cash flow problem would develop. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

General Fund Cash Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun See page 20 for a listing of all funds with Net Monthly Cash $ (22,382) $ (2,733) $ (715) $ 1,031 $ (309) $ (1,928) $ 10,258 $ (1,410) $ (85) negative cash. FY 15-16 Balance 4,155 1,422 707 1,738 1,429 (499) 9,759 8,349 8,264 FY 15-16 Available 2,351 360 (483) (86) (526) (2,173) 8,181 6,419 5,959 FY 14-15 Balance 6,778 967 (551) (2,718) (2,620) (2,514) 6,549 6,343 6,608 8,079 21,679 26,537 FY 14-15 Available 1,911 (4,227) (2,506) (5,173) (5,838) (5,957) 2,531 2,830 3,298 3,060 17,406 23,272

July - Budgeted Transfers were recorded in the amount of $15,435,030 from the General Fund to various funds to cover operating expenditures for the fiscal year. Page 3 Development Activity . . . Residential City of Fontana, Financial Performance Report Residential Development activity often 500 acts as a barometer of local economic conditions. The brown thick line on the 450 Single Family Dwellings (SFDs) chart represents last year’s building Building Permits Issued for activity within the City. This year’s New Residential Construction 400 activity is represented by the solid thick blue line. 350 349 In March, the City issued 88 SFD building permits. 300 283 The following are all located north of Foothill and Budget…275 SFDs east of Interstate 15. The West End Development 250 , West Gate, Summit Heights, Landings , Rancho 211 Fontana, Sierra Lakes, Walnut Village, 200 Northgate, Citrus Heights North, Bellgrove II , Fontana Star, Morningside, Stratham Homes, Promenade (19) , Providence Point and Sierra 150 159 Crest.

The Hunter’s Ridge Development and Coyote 100 Canyon Development are located north of Interstate 15. 50 The Country Club Estates Development and Sycamore Hills are located south of the Interstate10 Fwy and east of Sierra Avenue. 0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun The Southridge Development is located south of the Interstate10 Fwy and west of Sierra Ave. Monthly FY2015-16 FY2014-15 FY2013-14 FY11-15 Average Permits FY2014-15 Sewer Hook Ups There were 69 permits issued in the City Wide & In-Fill Area, of which (1) was issued to independently owned property. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Certificates of Occupancy: New sewer Monthly 39 47 33 20 88 44 42 41 88 hook-ups (FYTD 440) indicate that new FY2015-16 39 86 119 139 227 271 313 354 442 construction is ready for occupancy. A large number of residential housing hook- FY2014-15 66 97 124 128 166 223 244 251 282 303 342 349 ups follow a large number of previously issued building permits. Bellgrove II Northgate California Landings Promenade 135 City Wide 258 Providence Point 47 Citrus Heights Rancho Fontana Country Club Estates Sierra Crest 2 Coyote Canyon Southridge Fontana Star Stratham Group Hunter's Ridge Summit Heights Landings Sycamore Hills Morningside Walnut Village New West West End

Page 4 City of Fontana, Financial Performance Report

Development Activity . . . Commercial & Industrial

300,000 Sq.Ft. Commercial and Industrial Development activity, similar to 254,858 250,000 Sq.Ft. Commercial Building Permits Issued (Sq. Ft.) residential development, acts as a barometer Monthly of the local economic conditions. New FY2015-16 Actual 200,000 Sq.Ft. FY2014-15 Actual activity in these development categories FY2013-14 Actual initially creates construction jobs and FY2011-2015 Average ultimately provides for a permanent 150,000 Sq.Ft. employment base for the community. 100,000 Sq.Ft. Budget…100,000 Sq. Ft. 115,315 Development activity over the past several years has been light as the industry has 81,179 sought existing vacant buildings. As these 50,000 Sq.Ft. existing structures become occupied and the vacancy rate diminishes, new development 0 Sq.Ft. activity starts to increase. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Square Footage Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly - 30,939 14,004 7,415 - - 8,612 - 2,112 The City issued 1 commercial building permits in March. FY2015-16 Actual - 30,939 44,943 52,358 52,358 52,358 60,970 60,970 63,082 FY2014-15 Actual 7,520 92,506 97,509 137,529 143,989 159,292 218,902 225,629 231,764 243,458 254,858 254,858

Notes: July - none. August - 22,406 sq. ft. Kia dealership @ 16273 South Highland Ave, 6,656 sq. ft. retail/restaurant building @ 10540 Sierra Ave, 1,877 sq. ft. dental office @ 16540 Merrill Ave. September - 13,313 sq. ft. retail The City issued 0 new industrial building tire center @ 6251 Sierra Ave., 691 sq. ft. commercial building @ 10055 Banana Ave. October - 7,415 sq ft. commercial building @ 14565 Foothill Blvd. November - none. December - none. January - 5,177 sq. ft. Am/Pm permits in March. convenience store and fuel station @ 10087 Sierra Ave., 3,436 sq. ft. restaurant building @ 10067 Sierra Ave. February - none. March - 2,112 sq. ft. modular building @ 10785 Beech Ave.

5,000,000 Sq.Ft. Building Permits Issued (Sq. Ft.) 4,000,000 Sq.Ft. Industrial Monthly FY2015-16 Actual FY2014-15 Actual 3,000,000 Sq.Ft. FY2013-14 Actual FY2011-2015 Average 2,000,000 Sq.Ft.

Bu 1,020,691 1,000,000 Sq.Ft. Budget…200,000 Sq. Ft. 642,279 - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Square Footage Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly 760,264 9,361 970,747 41,407 434,170 444,669 - - - FY2015-16 Actual 760,264 769,625 1,740,372 1,781,779 2,215,949 2,660,618 2,660,618 2,660,618 2,660,618 FY2014-15 Actual - - 1,092,568 1,092,568 1,099,018 1,741,634 2,053,107 2,404,908 2,404,908 2,715,458 2,723,698 2,723,698

Notes: July - 12,800 sq. ft. truck service facility @ 11123 Banana Ave., 747,464 sq. ft. warehouse and pump house @ 5885 Sierra Ave. August - 9,361 sq. ft. vehicle storage @ 15033 Slover Ave. September - 970,747 sq. ft. warehouse @ 15750 Jurupa Ave. October - 41,407 sq. ft. paver stone manufacturer @ 10714 Poplar Ave. November - 434,170 sq. ft. tilt-up shell building @ 11260 Elm Ave. December - 444,669 sq. ft. tilt-up shell building @ 11250 Poplar Ave. January - none. February - none. March - none.

Page 5 City of Fontana, Financial Performance Report General Fund Financial Summary

The General Fund is comprised of $100,000 such general revenue sources as $90,000 Revenues taxes, fines, licenses and fees. The $80,000 Fiscal Year 2015-16 fund provides for such services as $70,000 Public Safety, Recreation, Legislative ($000's) $60,000 and City Administration. The use of money in this fund is generally not $50,000 $40,000 restricted to specific services and ` projects as is the case with other city $30,000 funds. $20,000 $10,000 Revenues - The green solid line on $0 the adjacent chart, shows that the Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun General Fund revenues are 59.5% of the annual budget. Year-to-date total Monthly Actuals FY2011-2015 Average FY2013-2014 Actuals FY2014-2015 Actuals FY2015-2016 Budget FY2015-2016 Actuals revenue is $4.0 million higher than Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun last year’s revenue levels through Monthly Actuals $ 3,854 $ 4,601 $ 5,310 $ 7,101 $ 5,292 $ 5,361 $ 15,358 $ 5,401 $ 5,914 March's month-end. FY2015-2016 Actuals 3,854 8,455 13,765 20,866 26,158 31,519 46,877 52,278 58,192 FY2015-2016 Budget 8,152 16,304 24,457 32,609 40,761 48,913 57,065 65,217 73,370 81,522 89,674 97,826 FY2014-2015 Actuals 3,624 7,964 11,959 16,877 21,737 28,317 43,943 49,059 54,212 60,927 80,967 92,282

Expenditures - The red solid line $80,000 represents the General Fund $70,000 Expenditures expenditures actually paid and do $60,000 Fiscal Year 2015-16 not include $3.1 million of $50,000 ($000's) encumbrances (commitments made $40,000 and agreed to be paid after $30,000

obligations are fulfilled). The City’s $20,000 Excludes encumbrances of $3.1m operating departments are on course $10,000 with their expenditure plans. $0 Additional details by department are Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun listed on page 9. Monthly Actuals FY2011-2015 Average FY2013-2014 Actuals FY2014-2015 Actuals FY2015-2016 Budget FY2015-2016 Actuals

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Monthly Actuals $ 8,057 $ 6,068 $ 5,882 $ 6,406 $ 6,012 $ 8,754 $ 5,802 $ 6,258 $ 6,342 FY2015-2016 Actuals 8,057 14,125 20,007 26,412 32,424 41,178 46,980 53,238 59,580 FY2015-2016 Budget 7,054 14,108 21,162 28,216 35,270 42,325 49,379 56,433 63,487 70,541 77,595 84,649 FY2014-2015 Actuals 5,383 14,318 20,244 26,137 32,094 38,655 46,381 51,952 58,058 64,486 70,301 77,364

Page 6 City of Fontana, Financial Performance Report

Revenues The General Fund’s 140+ $100,000 revenue accounts are categorized by like types of $95,000 General Fund 97,458 activity on the adjacent chart. In $90,000 92,282 Revenue by Summary Categories 84,363 general, revenues can be further $85,000 summarized into Taxes, Fees, Fiscal Year 2015-16 $80,000 82,178 State Subventions and other $75,000 ($000's) revenues. $70,000 $65,000 Over one-half of the City’s General Fund revenues are $60,000 derived from taxes. The top two $55,000 budgeted tax revenue sources $50,000 are Sales Tax (37% - $36.0 $45,000 million), and Property Tax (22% - $40,000 $21.6 million). $35,000 Through March 2016, the $30,000 General Fund’s actual revenues $25,000 received are 59.5% of the annual $20,000 budget amount. $15,000 $10,000 Development related revenues $5,000 have achieved 88.2% of their annual revenue budget. During $0 February, construction permits Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun were issued for 88 additional homes. Monthly Actuals FY2011-2015 Average FY2013-2014 Actuals FY2014-2015 Actuals FY2015-2016 Budget FY2015-2016 Actuals

MVLF revenues are being Prior Yr significantly affected by the Revenues Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Total FYTD Budget Actuals economic downturn. State charges have grown far in excess Sales Tax $ 1,712 $ 2,273 $ 2,779 $ 1,748 $ 2,310 $ 2,885 $ 3,477 $ 2,497 $ 3,018 $ 22,699 $ 36,000 $ 33,955 of VLF collections. While state Business Tax 377 274 514 455 416 244 623 667 854 4,424 5,823 5,750 charges increased at about 10% Property Tax - - 252 70 427 862 9,001 165 138 10,915 21,594 20,534 per year, actual revenue Franchise Fees 190 778 174 153 651 189 166 699 393 3,393 6,400 6,594 collections have been declining. This decline, together with the Motor Veh. In-Lieu ------100 83 State charges has caused a cash Development 578 631 642 440 771 465 637 546 721 5,431 6,160 5,589 flow issue in recent months in Recreation 360 271 258 188 165 144 197 239 253 2,075 3,114 3,126 which, following state charges, there were zero funds left to Int. and Rentals 36 45 51 42 35 28 74 95 42 448 4,459 5,420 allocate to cities. All legislation Other Revenues 424 396 565 4,012 412 359 1,101 413 453 8,135 12,149 9,475 efforts to restore the MVLF for Reimbursables 177 (67) 75 (7) 105 185 82 80 42 672 2,027 1,972 the annexation areas within the Monthly Actuals City have failed. $ 3,854 $ 4,601 $ 5,310 $ 7,101 $ 5,292 $ 5,361 $ 15,358 $ 5,401 $ 5,914 $ 58,192 $ 97,826 $ 92,498 FY2015-2016 Actuals 3,854 8,455 13,765 20,866 26,158 31,519 46,877 52,278 58,192 FY2015-2016 Budget 8,152 16,304 24,457 32,609 40,761 48,913 57,065 65,217 73,370 81,522 89,674 97,826 FY2014-2015 Actuals 3,624 7,964 11,959 16,877 21,737 28,317 43,943 49,059 54,212 60,927 80,967 92,282

Page 7 City of Fontana, Financial Performance Report General Fund Revenue . . . Highlights

Two of the most significant revenue sources for the

General Fund are Sales Tax and Property Tax In-Lieu of $36,000,000 VLF. These two sources account for 54.9% of the estimated $34,000,000 Sales Tax Revenue General Fund revenues. $32,000,000 $30,000,000 General Fund - Fiscal Year 2015-16 $28,000,000 Current Month FY2011-2015 Average $26,000,000 FY2013-2014 Actuals $24,000,000 Sales Tax: Sales Tax revenues, fiscal year to date, are FY2014-2015 Actuals $22,000,000 FY2015-2016 Budget $22,698,675 or 63.05% of the annual budget of $20,000,000 FY2015-2016 Actuals $36,000,000. $18,000,000 $16,000,000 $14,000,000 $12,000,000 Property Tax in-Lieu of VLF: Property Tax In-Lieu of VLF $10,000,000 $8,000,000 revenues to date are $8,205,476 or 49% of the total annual $6,000,000 budget of $16,700,000. This revenue is received one-half in $4,000,000 January & one-half in May. $2,000,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

The Budget Act of 2004 contains a "swap" of city and county $17,000,000 $16,000,000 Vehicle License fee revenues for property tax revenues effective $15,000,000 Property Tax In-Lieu of VLF for the FY04-05 budget year. $14,000,000 General Fund - Fiscal Year 2015-16 $13,000,000 This act, also known as the State's "Triple Flip" includes a $12,000,000 Current Month permanent reduction of the VLF rate from 2% to 0.65%. The VLF $11,000,000 FY2013-2014 Actuals backfill is eliminated and replaced with a like amount of property $10,000,000 FY2014-2015 Actuals taxes, dollar-for-dollar payable in lump-sum payments twice a $9,000,000 FY2011-2015 Average year in January and May. $8,000,000 FY2015-2016 Budget $7,000,000 FY2015-2016 Actuals $6,000,000 Subsequent to the FY04-05 and FY05-06 base years, each city's $5,000,000 "property taxes in lieu of VLF" will increase in proportion to the $4,000,000 growth in gross assessed valuation in the city. $3,000,000 $2,000,000 Remaining VLF revenue is deposited in the Motor Vehicle License $1,000,000 Fee Account. After the State administrative charges, there are $0 zero funds left to allocate to cities. Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Tax collections for Fiscal year 1998/99 ceased after December 1998.

Page 8 City of Fontana, Financial Performance Report General Fund $90,000,000 84,649,055 $85,000,000 Expenditure General Fund Expenditures $80,000,000 Summary by $75,000,000 - Department Summary - $79,243,294 Fiscal Year 2015-16 $70,000,000 72,129,076 Department $65,000,000 70,337,350 $60,000,000 At the end of March $55,000,000 2016, the Departments’ $50,000,000 expenditures are running $45,000,000 below the estimated $40,000,000 fiscal year to date budget $35,000,000 as illustrated by the solid $30,000,000 red line on the chart. $25,000,000 These expenses do not $20,000,000 include $3.1 million of $15,000,000 encumbrances. $10,000,000 Excludes Encumbrances of $3,058,695 $5,000,000 The Departments are on $- track with their Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun expenditure plans. To date, the Departments have spent 70.38% of Monthly Actuals FY2014-2015 Actuals FY2013-2014 Actuals FY2011-2015 Average Adopted FY2015-2016 Budget FY2015-2016 Actuals their annual budgets compared to a target of Departments Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 75%. City Administration $ 107,587 $ 145,643 $ 106,486 $ 285,739 $ 178,755 $ 224,683 $ 139,098 $ 268,929 $ 130,501 $ - $ - $ - Human Resources 73,566 56,901 58,331 60,904 58,915 84,858 54,757 56,811 65,414 - - - Administrative Svcs. 95,461 42,109 68,996 68,481 45,875 80,247 63,416 59,350 84,765 - - - Community Services 1,358,873 824,963 782,416 776,748 720,447 923,787 732,381 687,385 723,571 - - - Information Technology 270,105 192,785 193,256 195,754 194,952 306,648 204,763 206,836 214,513 - - - Management Services 259,866 211,171 209,018 221,047 218,629 295,216 204,548 190,684 238,742 - - - Office of the City Clerk 57,342 41,189 43,329 43,828 44,600 80,056 35,581 38,811 74,642 - - - Development Services 106,786 70,238 69,110 49,674 48,665 73,610 47,580 47,742 54,226 - - - Community Develop. 345,575 232,923 284,483 261,274 322,787 427,859 296,736 296,306 301,095 - - - Engineering 227,080 175,622 188,664 200,861 228,010 305,659 172,547 191,047 194,478 - - - Public Works 214,562 417,426 380,363 497,467 377,481 583,807 327,225 325,350 555,641 - - - Police Department 4,940,024 3,657,027 3,497,239 3,743,987 3,572,849 5,367,756 3,522,940 3,888,944 3,704,378 - - - Monthly Actuals $ 8,056,827 $ 6,067,997 $ 5,881,691 $ 6,405,764 $ 6,011,965 $ 8,754,186 $ 5,801,572 $ 6,258,195 $ 6,341,966 FY2015-2016 Actuals 8,056,827 14,124,824 20,006,515 26,412,279 32,424,244 41,178,430 46,980,002 53,238,197 59,580,163 FY2015-2016 Budget 7,054,088 14,108,176 21,162,264 28,216,351 35,270,439 42,324,527 49,378,615 56,432,703 63,486,791 70,540,878 77,594,966 84,649,054 FY2014-2015 Actuals 5,383,370 14,318,366 20,243,760 26,136,792 32,093,871 38,654,684 46,380,891 51,952,443 58,057,986 64,486,084 70,300,684 79,243,294

Page 9 City of Fontana, Financial Performance Report

Investment Report City of Fontana March 31, 2016

Page 10 City of Fontana, Financial Performance Report Contents

• Summary of Investment Policy • Summary of Cash and Investments • Portfolio Analysis • Interest Rate Comparison • Actual to Model Comparison • Pooled Investments • Bond Investments

Page 11 City of Fontana, Financial Performance Report Summary of Investment Policy

• Adopted by City Council January 26, 2016 • Objectives: Safety, Liquidity & Yield • Benchmark: Two-Year Treasury Note • Target Duration: Two years • 10% of Portfolio in short-term investments • Requires diversification of maturities • Maximum maturity of five years

Page 12 City of Fontana, Financial Performance Report Summary of Cash and Investments

Pooled Bond Investments Funds Other Total

Money Market Funds $ 19,792.57 $ 29,800,775.32 $ $ 29,820,567.89 Bankers Acceptances 0.00 Government Agency Issues 185,255,732.50 185,255,732.50 Medium-Term Notes 15,284,050.00 15,284,050.00 Local Agency Investment Fund (LAIF) 49,032,180.93 49,032,180.93 Investment Agreements 2,354,021.39 2,354,021.39 Fiscal Agent Cash Accounts 0.00 0.00

Bank of America - General Checking 1,795.82 3,077,799.59 3,079,595.41 Deferred Compensation Funds 22,519,550.77 22,519,550.77 Escrow Accounts 1,776.54 1,776.54 Petty Cash/Self Insurance 414,150.00 414,150.00

$249,591,756.00 $ 32,156,592.53 $ 26,013,276.90 $ 307,761,625.43

This report reflects all cash and investments managed by the Management Services Department and is in conformity with the Investment Policy of the City of Fontana as approved by the City Council on January 26, 2016. The investment program herein shown provides sufficient cash flow liquidity to meet City liabilities for the next six months.

Page 13 City of Fontana, Financial Performance Report Portfolio Analysis

INVESTMENT COMPOSITION: RETURN ON INVESTMENTS:

Original cost of investments held $249,591,756.00 (July 1, 2015 to March 31, 2016) Month-to-Date Year-to-Date Adjusted book value of investments held $249,245,582.00 Market value of investments held $250,341,379.57 Total investment earnings $237,345.07 $1,772,194.93 Unrealized gain (loss) - amount $1,095,797.57 Total realized gains (losses) on sales/calls $0.00 $3,433.00 Unrealized gain (loss) - percentage 0.44% Total amortized premium/discount ($5,877.00) ($24,582.68) Weighted average portfolio life (final maturity) 2.54 years Weighted average portfolio life (call dates) 2.29 years Weighted average portfolio balance $236,228,247.94 $227,384,937.82

Total return on investments annualized 1.15% 1.02% $260,000,000 $250,000,000 COMPARATIVE MARKET RATES: 12-Month $240,000,000 March 31, 2016 Average $230,000,000 $220,000,000 Three-Month Treasury Bills 0.21% $210,000,000 Six-Month Treasury Bills 0.39% One-Year Treasury Bills 0.59% $200,000,000 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Two-Year Treasury Notes 0.73% 0.74% Five-Year Treasury Notes 1.21% LAIF 0.51% Book Value Market Value

HISTORICAL RATES OF RETURN: VARIANCE: 0.42% 0.28% Money Market Mutual Funds 0.01% City of Fontana Government Agency Issues 74.22% Fiscal Year 2006/07 4.36% To evaluate the performance of the City's portfolio, the Statement of Medium Term Notes 6.12% Fiscal Year 2007/08 4.10% Investment Policy has established the two-year treasury note as the Local Agency Investment Fund (LAIF) 19.65% Fiscal Year 2008/09 2.87% benchmark for comparison purposes. It is expected that yields on 100.00% Fiscal Year 2009/10 2.25% City investments will regularly meet or exceed the benchmark; however, a Fiscal Year 2010/11 2.20% variance of .50% (50 basis points) plus or minus is considered reasonable Fiscal Year 2011/12 1.85% by the Investment Review Committee for evaluation purposes. Fiscal Year 2012/13 1.07% Fiscal Year 2013/14 1.01% The City rate currently exceeds the Benchmark rate by Fiscal Year 2014/15 0.97% 27 basis points due to historically low treasury rates and Fiscal Year 2015/16 1.02% one-time gains from securities called.

Page 14 City of Fontana, Financial Performance Report Interest Rate Comparison

2-Year USTN City Pool Difference April 2015 - March 2016 04/30/15 0.58% 1.06% +48 BPs 05/31/15 0.61% 0.96% +35 BPs

2.00% 06/30/15 0.61% 0.97% +36 BPs 07/31/15 0.67% 0.98% +31 BPs 1.50% 08/31/15 0.74% 1.00% +26 BPs

City Pool Rate 09/30/15 0.64% 1.01% +37 BPs 1.00% City Pool Average 10/31/15 0.75% 0.98% +23 BPs 2-Year USTN 11/30/15 0.94% 0.91% -3 BPs

Interest Rates Interest USTN Average 0.50% 12/31/15 1.06% 0.85% -21 BPs 01/31/16 0.76% 0.98% +22 BPs 0.00% 02/29/16 0.78% 1.00% +22 BPs 03/31/16 0.73% 1.02% +29 BPs Jul-15 Apr-15 Oct-15 Jun-15 Jan-16 Mar-16 Feb-16 Aug-15 Sep-15 Nov-15 Dec-15 May-15 Average 0.74% 0.98% +24 BPs

Page 15 City of Fontana, Financial Performance Report Actual to Model Comparison

INVESTMENT PROGRAM: The purpose of the investment program is to provide procedures which: 1) Adhere to the Statement of Investment Policy. 2) Prioritize safety and liquidity. 3) Determine risk and optimize return. 4) Provide for a system of due diligence in making investment decisions.

A "Model" investment portfolio has been developed to provide the strategic framework for managing and reporting on the investment portfolio. This model provides a system of due diligence and directs the tactical theme for how and why securities are bought and sold.

Liquidity Actual Model Variance Sector Actual Model Variance Cash 19.65% 15.00% 4.65% Cash 19.65% 15.00% 4.65% 0-1 Year 0.00% 5.00% -5.00% Treasury/Agency 74.23% 55.00% 19.23% Total 19.65% 20.00% -0.35% Med Term Notes 6.12% 30.00% -23.88%

Avg Maturity Actual Model Variance Avg Maturity Actual Model Variance 0-1 Year 19.65% 20.00% -0.35% 0-1 Year 63.41% 20.00% 43.41% 1-2 Years 32.52% 20.00% 12.52% 1-2 Years 8.49% 20.00% -11.51% 2-3 Years 10.04% 20.00% -9.96% 2-3 Years 4.03% 20.00% -15.97% 3-4 Years 5.61% 20.00% -14.39% 3-4 Years 0.00% 20.00% -20.00% 4-5 Years 32.18% 20.00% 12.18% 4-5 Years 24.07% 20.00% 4.07% (Based on final maturity dates) (Based on call dates if market price is at a premium)

Page 16 City of Fontana, Financial Performance Report Pooled Investments

Face Coupon Maturity Invest Purchase Cost Purchase Estimated Amort Value CUSIP # Security Description Rate Date Type Date Basis Yield Mkt Value Prem/Disc

49,032,181 Local Agency Investment Fund Varies LAIF Varies 49,032,180.93 Varies 49,032,181 0 19,793 BNY - Dreyfus Cash Mgmt Fund Varies MM Varies 19,792.57 Varies 19,793 0 5,000,000 36962G5W0 General Electric Cap Corp 2.300% 04/27/17 MTN 05/14/13 5,219,500.00 1.160% 5,077,000 (159,913) 15,000,000 3135G0TV5 Fed Natl Mtg Assn 1.030% 01/30/18 FNMA 01/30/13 14,998,500.00 1.032% 15,001,200 950 16,000,000 3136G1BK4 Fed Natl Mtg Assn 1.000% 02/05/18 FNMA 02/05/13 15,968,000.00 1.041% 15,995,520 20,153 15,000,000 3135G0UE1 Fed Natl Mtg Assn 1.000% 02/14/18 FNMA 02/14/13 14,977,500.00 1.031% 15,048,150 14,059 15,000,000 3135G0UN1 Fed Natl Mtg Assn 1.150% 02/28/18 FNMA 02/28/13 14,992,500.00 1.160% 15,006,000 4,629 15,000,000 3134G36E5 Fed Home Loan Mtg Corp 1.050% 03/26/18 FHLMC 03/26/13 15,000,000.00 1.050% 15,058,800 0 5,000,000 36962G6W9 General Electric Cap Corp 1.625% 04/02/18 MTN 05/14/13 5,057,900.00 1.379% 5,061,500 (34,143) 5,000,000 46625HJL5 JP Morgan Chase & Co 1.625% 05/15/18 MTN 05/15/13 5,006,650.00 1.597% 5,010,250 (3,828) 15,000,000 3134G43V8 Fed Home Loan Mtg Corp 1.050% 05/15/18 FHLMC 05/15/13 15,000,000.00 1.050% 15,000,150 0 14,000,000 3130A74D4 Fed Home Loan Bank 1.500% 02/03/20 FHLB 02/03/16 14,000,000.00 1.500% 14,033,880 0 15,000,000 3135G0D75 Fed Natl Mtg Assn 1.500% 06/22/20 FNMA 06/30/15 14,825,250.00 1.745% 15,165,600 26,419 5,050,000 3133EE2S8 Fed Farm Credit 1.980% 06/29/20 FFC 06/29/15 5,048,737.50 1.985% 5,065,756 191 15,000,000 3130A5Z77 Fed Home Loan Bank 1.830% 07/29/20 FHLB 10/29/15 15,205,245.00 1.529% 15,296,550 (205,245) 15,000,000 3135G0H55 Fed Natl Mtg Assn 1.875% 12/28/20 FNMA 01/20/16 15,240,000.00 1.537% 15,389,550 (9,446) 15,000,000 3130A6ZT7 Fed Home Loan Bank 2.000% 01/29/21 FHLB 01/29/16 15,000,000.00 2.000% 15,060,600 0 15,000,000 3134G8MZ9 Fed Home Loan Mtg Corp 1.850% 03/30/21 FHLMC 03/30/16 15,000,000.00 1.850% 15,018,900 0

Total Pooled Investments 249,591,756.00 250,341,380 (346,174)

Market prices of securities are obtained from BNY Western Trust Company, A Subsidiary of The Bank of New York Company, Inc.

Types of Investments: FFC Federal Farm Credit INVAGRMT Investment Agreement FHLB Federal Home Loan Bank LAIF Local Agency Investment Fund FHLMC Fed Home Loan Mortgage Corp MM Money Market Mutual Funds FNMA Federal National Mortgage Assn MTN Medium Term Note Page 17 City of Fontana, Financial Performance Report Bond Investments

Face Coupon Maturity Invest Invest Purchase Cost Yield to Estimated Amort Value Security Description Rate Date Rating Type Date Basis Maturity Mkt Value Prem/Disc

Held By Fiscal Agent:

0 Cash Varies NR Varies 0.00 Varies 0 0 23,456,391 First American Treasury MM Varies Aaa MM Varies 23,456,391.45 Varies 23,456,391 0 742,211 BNY Hamilton Treasury MM Varies Aaa MM Varies 742,211.23 Varies 742,211 0 4,723,021 Wells Fargo Treasury Plus MM Varies Aaa MM Varies 4,723,021.06 Varies 4,723,021 0 Dreyfus Treasury Cash Mgmt 854,420 MM Varies Aaa MM Varies 854,420.23 Varies 854,420 0 24,731 Wells Fargo Advantage Govt MM Varies Aaa MM Varies 24,731.35 Varies 24,731 0 INVAGRM 914,120 AIG MFL 5.470% 08/26/21 Aa1 T 01/09/01 914,119.79 5.470% 914,120 0 INVAGRM 1,439,902 Rabobank International 4.360% 10/01/33 Aaa T 09/07/05 1,439,901.60 4.360% 1,439,902 0

Held By Management Services Department:

1,796 Cash Varies NR Varies 1,795.82 Varies 1,796 0 0 Fidelity Money Market Fund Varies Aaa MM Varies 0.00 Varies 0 0

Total Bond Investments 32,156,592.53 32,156,593 0

Market prices of securities are obtained from the fiscal agent holding the investment.

Types of Investments: FFC Federal Farm Credit INVAGRMT Investment Agreement FHLB Federal Home Loan Bank LAIF Local Agency Investment Fund FHLMC Fed Home Loan Mortgage Corp MM Money Market Mutual Funds FNMA Federal National Mortgage Assn MTN Medium Term Note Page 18 City of Fontana, Financial Performance Report Liability Claims Status . . . Fund 106

Fiscal Year 2015-2016 Self-Insurance Fund Status (Cash balances are based on daily estimates and are subject to change)

Fund Balance Goal and Cost Assumptions Data Provided for March 31, 2016

Liability - Projected Annual Costs Annual value of excess liability insurance $ 493,500 Other professional administrative costs 431,500 Risk Management is an important part of local Annual claims value administered by risk 500,000 government management with significant impact on public Legal services 1,300,000 financial management. Risk management is interdisciplinary, involving finance, environmental Miscellaneous Departmental Costs 12,000 management, public works, safety, transportation, parks, Total Liability - Projected Annual Costs $ 2,737,000 (1) recreation, health, education, personnel, purchasing, and law. Workers' Compensation - Projected Annual Costs Risk management results in more effective use of funds Annual value of excess liability insurance $ 129,000 that might otherwise be diverted to purchasing Other professional administrative costs 346,000 unnecessary or expensive insurance, replacing damaged property, or paying liability or workers' comp claims. Annual claims value administered by risk 1,050,000 Risk management identifies exposures that can be Legal services 180,000 covered by means other than insurance-or that can be Miscellaneous Departmental Costs 13,500 avoided completely. Total Workers' Compensation - Projected Annual Costs $ 1,718,500 (1) Risk management can lower expenditures by reducing the overall "costs of risk." Miscellaneous Services - Projected Annual Costs Unemployment Insurance Expense $ 200,000

Total Miscellaneous Services - Projected Annual Costs $ 200,000 (1)

Cash Reserves - Claims Workers' Comp in reserve $ 4,076,198 Risk Liability in reserve 1,225,232 Miscellaneous reserves - Risk cases 750,000 CFD Litigation - Director HR/Risk Management Total Cash Reserves - Claims $ 6,051,430 (2)

Total Projected Annual Costs and Cash Reserves $ 10,706,930

Year-End Cash Balance Forecast

Available Total Budgeted Payment of Risk Liability Fiscal Fund Balance Cash Budgeted Expenditures Extraordinary Surplus/(Deficit) Year July 1, 2015 Reserves (2) Revenues includes (1) from above Settlement Cash Balance

2015/2016 $ 1,864,835 $ (6,051,430) $ 5,442,355 $ (5,049,770) $ - $ (3,794,010)

Page 19 City of Fontana, Financial Performance Report

Cash Balance and Cash Available . . . All funds . . . Detail Listing

CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs 2013 - 2015 June 30, 2013 June 30, 2014 June 30, 2015 March 31, 2016

CITY FUNDS: 101 General Fund $ 19,661,100 $ 24,041,629 $ 26,536,792 $ 8,263,736

OTHER FUNDS WITH DEFICIT CASH BALANCES: 244 Prop IB (2,760,246) (2,081,442) (521,143) (521,143) 702 Sewer Capital Projects (56,465) (140,917) (387,230) (264,973) Total Other Funds With Deficit Cash Balances (3,556,385) (3,182,408) (1,297,847) (786,116)

GRANTS: 321 Federal Law Enforcement Block Grant (21,948) 14,402 (1,535,402) (732,587) Reimb requested quarterly 385 After School Programs (391,747) (1,116,653) (431,487) (786,370) Reimb requested quarterly Total Grant Funds With Deficit Cash Balances (28,751) 259,525 (1,913,345) (1,518,957)

TOTAL DEFICIT CASH FUNDS (2,419,840) (2,082,140) (2,747,258) (2,305,073)

GENERAL FUND CASH AVAILABLE $ 17,241,260 $ 21,959,489 $ 23,789,534 $ 5,958,663

OTHER GENERAL FUNDS: 102 Equipment Replacement $ 1,566,285 $ 1,241,571 $ 1,528,622 $ 1,746,528 103 City Facility 2,050,404 2,115,605 1,700,993 2,540,190 104 OES 13,237 2,096 2,726 11,634 105 KFON 769,057 854,349 1,111,536 1,013,816 106 Self-insurance - other 2,175,787 1,883,145 1,641,406 1,999,437 107 Retirees Medical Benefits 13,418,379 15,927,385 18,336,862 21,463,461 108 Supplemental Retirement Plan 45,916 19,031 18,536 26,515 110 General Fund Operating Project 84,536 307,074 387,942 363,404 125 Storm Water Compliance Fund 120,031 160,936 211,460 266,554 TOTAL OTHER FUNDS 20,243,632 22,511,192 24,940,083 29,431,539

INTERNAL SERVICE FUNDS: 751 Fleet Operations 2,345,833 1,740,293 2,018,252 2,738,236

GENERAL FUND CASH AVAILABLE WITH OTHER GENERAL FUNDS $ 39,830,725 $ 46,210,974 $ 50,747,869 $ 38,128,438

Page 20 City of Fontana, Financial Performance Report Cash Balance and Cash Available . . . All funds . . . Detail Listing (Continued) Estimated CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs 2013 - 2015 June 30, 2013 June 30, 2014 June 30, 2015 March 31, 2016

OTHER CITY FUNDS: 201 Municipal Services Fiscal Impact 17,906,437 17,272,975 17,400,676 17,865,277 221 AB2928 State Traffic Congestion Relief 127,304 1,629 - 105 222 Crime Prevention Seizure 101,694 80,584 64,322 54,175 223 Federal Seizure 1,573,554 2,421,470 2,658,745 3,827,424 224 Police Seizure 24,505 137,335 104,384 136,200 225 F-STOP (92,003) (159,507) 99,176 232,728 241 AQMD 664,134 896,127 966,773 851,029 242 Traffic Congestion Relief 4,867,812 4,472,962 4,411,007 4,400,014 243 Traffic Safety 2,183,369 2,041,071 1,588,091 1,333,571 245 Measure I 2010-2040 Reimb 151,628 246 Measure I Local Pass-Thru 4,812,559 6,909,613 8,558,823 10,198,364 281 Gas Tax 368,944 (17,938) 2,169,351 2,599,704 282 Solid Waste Mitigation 3,393,924 2,787,743 2,739,636 3,697,898 301 Grants (Public Safety, Parks, etc.) 2,764,624 1,621,924 2,524,318 2,479,803 322 State Grant AB3229 (78,723) 31,958 78,540 71,648 362 Housing/Community Development Block Grants 2,028,558 944,237 1,417,364 787,390 363 Home Program 384,944 1,361,776 53,544 65,132 601 Capital Reinvestment 10,634,404 4,821,642 4,845,723 6,396,882 602 Capital Improvement Program 1,071,853 (146,086) 242,532 120,097 603 Future Capital Projects 1,578,376 2,811,739 565,592 2,103,060 620 San Sevaine Flood Control 755,077 705,851 709,435 665,848 621 Upper Etiwanda Flood Control 42,342 42,832 43,227 43,537 622 Storm Drainage 15,883,406 14,272,909 13,853,046 15,615,834 623 Sewer Expansion 6,363,269 7,151,927 7,871,826 10,736,711 630 Traffic Mitigation 14,107,402 20,097,358 18,235,236 22,570,655 631 Fire Assessment 1,081,867 625,857 315,964 471,059 632 General Government Capital 1,433,990 1,766,038 2,198,948 3,962,816 633 Landscape Improvements 1,454,336 19,291 277,501 1,713,048 634 Library Capital 341,925 369,966 560,250 948,475 635 Parks Development 1,649,425 1,608,360 3,239,892 5,358,345 636 Police Capital Improvements 858,702 361,170 301,912 998,328 637 Underground Utilities 210,459 196,404 61,061 60,018 701 Sewer Maintenance & Operations 6,133,022 6,757,996 336,978 2,765,007 701 Sewer Hook-up Deposits 622,856 633,773 637,348 659,609 703 Sewer Replacement 14,926,355 13,669,655 19,851,516 14,408,492 710 Water Operations 243,692 190,694 202,288 301,210 901 Refundable Deposits 1,740,822 3,064,023 2,963,957 4,277,036 TOTAL OTHER CITY FUNDS $ 128,921,094 $ 127,217,127 $ 123,123,308 $ 142,928,157

Page 21 City of Fontana, Financial Performance Report

Cash Balance and Cash Available . . . All funds . . . Detail Listing (Continued) Estimated CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs 2013 - 2015 June 30, 2013 June 30, 2014 June 30, 2015 March 31, 2016

CFD/LMD DISTRICT FUNDS: 401 Landscape Maint Dist #1 $ 2,525,691 $ 2,646,535 $ 2,774,188 $ 2,592,659 402 Landscape Maint Dist #2 - Heritage 1,102,945 783,148 463,934 88,302 403 Landscape Maint Dist #3-1 - Empire Center 129,301 133,002 149,898 145,653 General Fund subsidy $272,100 404 Landscape Maint Dist #3 - Hunter's Ridge 2,115,213 2,243,958 2,341,670 2,278,686 406 Lighting District #3 - Hunter's Ridge 53,945 50,884 45,904 32,487 407 CFD #1 - Southridge 6,338,906 6,835,092 7,236,902 6,303,149 408 CFD #6 - The Landings 2,357,209 2,530,389 2,660,000 2,626,080 409 CFD #6-1 Stratham 627,011 616,225 618,573 597,186 410 CFD #6-2 North Morningside 229,615 216,780 198,972 192,995 411 CFD #6-3A Bellgrove II 244,209 195,540 151,719 120,093 412 CFD #7 - County Club Estates 326,836 354,345 352,214 337,410 413 CFD #8 - Presley Development 1,058,285 1,072,651 1,089,950 1,067,134 414 CFD #9M - Morningside 555,959 527,150 480,870 448,477 415 CFD #10M Jurupa Industrial Center 165,393 177,932 197,680 203,581 416 CFD #12 Sierra Lakes 2,408,048 2,480,168 1,315,002 1,100,357 417 CFD #13M Summit Heights 1,432,098 1,519,615 1,620,270 1,471,154 418 CFD #14M Sycamore Hills 598,192 610,001 550,085 518,949 419 CFD #15M Silver Ridge 400,848 373,908 336,150 313,021 420 CFD #16M Ventana Pointe 185,312 177,244 175,315 171,647 421 CFD #18M Badiola Homes 21,583 23,933 26,116 27,136 422 CFD #20M Cottages 1 184,458 180,093 177,949 169,423 423 CFD #21M Western Division 116,595 143,154 171,542 170,053 424 CFD #23 CDS Homes 29,734 28,386 25,788 24,270 425 CFD #24M 116,102 127,528 140,314 139,863 426 CFD #25M 273,881 289,945 301,978 304,151 427 CFD #27M 88,027 75,151 65,425 55,387 428 CFD #28M 488,617 510,578 537,457 538,665 429 CFD #29M 97,920 93,123 88,742 84,744 430 CFD #30M 575,278 594,551 626,618 631,816 431 CFD #34 Empire Detention Basin 120,426 137,055 152,056 156,666 432 CFD #33M Empire Lighting District 122,851 142,630 147,510 72,576 433 CFD #31M 427,930 456,258 458,211 444,344 434 CFD #32M 59,073 62,831 67,322 71,044 435 CFD #35M 2,065,104 2,005,615 1,935,404 1,784,008 436 CFD #36M 65,206 65,762 61,997 59,261 437 CFD #38M 496,666 572,972 629,698 654,203 438 CFD #37 Montelago 284,489 296,381 298,793 298,412 439 CFD #39M 63,329 69,246 72,008 68,957 440 CFD #40M 24,341 27,320 32,097 31,302 441 CFD #41M 82,770 88,794 90,899 93,611 442 CFD #42M 200,899 217,846 232,370 234,135 443 CFD #44M 32,864 33,512 32,585 31,556 444 CFD #45M 284,608 313,229 334,586 338,114 SUBTOTAL CFD/LMD FUNDS $ 29,177,767 $ 30,100,460 $ 29,466,761 $ 27,092,717

Page 22 City of Fontana, Financial Performance Report Cash Balance and Cash Available . . . All funds . . . Detail Listing (Continued) Estimated CASH BALANCE Cash Balances Cash Balances Cash Balances Cash Balances FYs 2013 - 2015 June 30, 2013 June 30, 2014 June 30, 2015 March 31, 2016

CFD/LMD DISTRICT FUNDS: 445 CFD #46M 179,385 198,005 207,926 212,606 446 CFD #47M 19,738 21,394 20,545 19,521 447 CFD #48M 263,089 298,261 326,907 330,368 448 CFD #49M 27,045 29,290 30,178 30,207 449 CFD #50M 58,236 70,569 84,618 84,313 450 CFD #51M 144,011 149,445 156,526 159,563 453 CFD #53M 30,721 35,253 39,283 41,353 454 CFD #54M 46,782 57,128 65,215 65,272 455 CFD #55M 26,239 29,392 32,759 34,414 456 CFD #56M 36,089 44,069 51,654 62,240 457 CFD #57M 44,632 48,867 51,828 52,329 458 CFD #58M 6,282 6,789 6,950 7,034 459 CFD #59M 6,599 7,778 7,125 3,569 460 CFD #60M 49,524 56,090 60,589 60,989 461 CFD #61M 194,576 222,987 245,806 254,869 462 CFD #62M 17,253 11,869 17,541 14,876 463 CFD #63M 176,691 201,737 223,732 233,898 464 CFD #64M 19,793 24,952 30,151 32,838 465 CFD #65M 76,721 96,153 115,745 123,330 467 CFD #67M 104,370 136,170 163,428 163,170 468 CFD #68M 24,587 48,751 71,028 81,434 469 CFD #69M 17,503 55,919 94,938 172,476 470 CFD #70M - 75,205 132,540 141,867 471 CFD #71M - - 110,557 158,361 472 CFD #72M - - 10,774 15,956 473 CFD #73M - - 65,759 99,670 474 CFD #74M - - 84,954 128,062 475 CFD #75M - - 14,362 22,709 476 CFD #76M - - 33,512 51,140 477 CFD #77M - - 12,947 20,159 478 CFD #78M - - - 18,454 657 CFD #31 Citrus Heights North 95,520 96,344 97,232 97,929 658 CFD #37 Montelago 24,036 24,314 24,538 24,714 659 CFD #70 Avellino - 85,962 19,946 8,495 951 CFD #3 Hunter's Ridge - Debt Service - - - 263,149 952 CFD #4 Walnut Village - Reserve 62,351 57,595 51,475 1,796 960 CFD #71 Sierra Crest - - 17,334 71,162 SUBTOTAL CFD/LMD FUNDS 1,803,238 2,241,758 2,777,324 3,364,292 TOTAL CFD/LMD FUNDS $ 30,981,005 $ 32,342,218 $ 32,244,085 $ 30,457,009 TOTAL CITY FUNDS $ 199,732,824 $ 205,770,319 $ 206,115,262 $ 211,513,604

Page 23 City of Fontana, Financial Performance Report

SUCCESSOR AGENCY TO THE FONTANA REDEVELOPMENT AGENCY (FRA), FONTANA PUBLIC FINANCE AUTHORITY, AND FONTANA HOUSING AUTHORITY FUNDS:

FONTANA HOUSING AUTHORITY: 297 Low and Moderate Income Housing Fund $ 6,199,375 $ 6,473,902 $ 6,354,959 $ 11,689,976 638 Affordable Housing Trust 104,816 251,619 833,126 1,629,954 697 Fontana Housing Authority 1,816,325 1,761,721 2,169,446 2,200,817 Total Low/Mod Housing Funds 8,120,516 8,487,242 9,357,531 15,520,747

FONTANA COMMUNITY FOUNDATION FUND: 499 Fontana Community Foundation $ 107,024 $ 128,969 $ 127,335 $ 128,228

FONTANA FIRE DISTRICT: 497 Fontana Fire District $ 6,134,485 $ 10,943,088 $ 11,185,002 $ 6,749,749 498 FFD - CFD 2002-2 1,978,231 2,127,630 2,707,724 2,871,287 696 Fontana Capital Project 8,437,660 7,570,325 7,015,877 4,452,932 Total Fontana Fire District Funds 16,550,376 20,641,043 20,908,603 14,073,968

SUCCESSOR AGENCY TO THE FONTANA REDEVELOPMENT AGENCY: 190 FRA - Administration $ 26,360,553 $ - $ 1,279,080 $ (26,259) 290 FRA - Low/Mod (595,085) 230,080 185,365 186,656 591 FRA - Downtown Debt Service 446,949 924,282 789,454 371,277 592 FRA - Jurupa Hills Debt Service 6,000 5,845,881 4,968,838 1,899,358 593 FRA - No Fontana Debt Service 4,681,588 10,927,112 11,863,998 8,171,725 594 FRA - Sierra Corridor Debt Svc 2,163,366 3,872,016 2,353,794 1,711,113 595 FRA - SWIP Debt Service 4,592,230 4,047,887 2,605,971 (103,817) 691 FRA - Downtown Project (448) (583) (259) (425) 693 FRA - No Fontana Project 62,349 (160,339) (131,394) (801,615) 694 FRA - Sierra Corridor Project (5,507) (159,026) 140,000 140,982 695 FRA - SWIP Project 5,436 (133,961) - 28 Total Project/Debt Service Funds 37,717,564 25,393,349 24,054,847 11,549,023 TOTAL OTHER AGENCIES FUNDS $ 62,495,480 $ 54,650,608 $ 54,448,321 $ 41,271,966 TOTAL CITY AND OTHER AGENCIES FUNDS $ 262,228,304 $ 260,420,927 $ 260,563,583 $ 252,785,570

Page 24 City of Fontana, Financial Performance Report

Amounts Due To/From City/FRA Funds and Approved Cash Flow Advances . . . Detail Listing Principal Unpaid Interest Total Due To/From Balances Balances Balances March 31, 2016 March 31, 2016 March 31, 2016

AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS: 403 Landscape District #3-1 - Empire Center 272,100 - 272,100 Non-interest bearing advance TOTAL AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS $ 272,100 $ - $ 272,100

AMOUNTS DUE TO GENERAL FUND FROM FRA FUNDS: 593 FRA/North Fontana Debt Service (Jr. Lien Bonds) 30,481,375 - 30,481,375 12.0% interest 691 FRA/Downtown Debt Service (Administrative Expenses Loan) 787,838 787,838 10.0% interest TOTAL AMOUNTS DUE TO GENERAL FUND FROM FRA FUNDS $ 31,269,213 $ - $ 31,269,213

TOTAL AMOUNTS DUE TO GENERAL FUND FROM OTHER FUNDS AND FRA FUNDS $ 31,541,313 $ - $ 31,541,313

AMOUNTS DUE FROM MEASURE I AND CIRCULATION MITIGATION: 601 Capital Projects/Circulation Mitigation (630) 3,167,132 - 3,167,132 Non-interest bearing advance 603 Future Capital Projects/Measure I 2010-2040 (245) 7,663,655 - 4,915,355 Non-interest bearing advance 603 Future Capital Projects/Circulation Mitigation (630) 15,381,251 - 15,381,251 Non-interest bearing advance TOTAL AMOUNTS DUE FOR SANBAG PROJECTS $ 26,212,038 $ - $ 23,463,738

AMOUNTS DUE TO FUTURE CAPITAL PROJECTS FOR DIF ADVANCEMENT: 603 Capital Projects/Circulation Mitigation Fund (630) 27,264,085 - 30,012,384 Non-interest bearing advance TOTAL AMOUNTS DUE FOR DIF ADVANCEMENT $ 27,264,085 $ - $ 30,012,384

AMOUNTS DUE TO OTHER CITY FUNDS FROM FRA FUNDS: 595 FRAERAF payment due to Housing Authority # 297 $ 14,317,304 $ 14,317,304 Non-interest bearing advance 592 FRA/Jurupa Hills Debt Service due to Sewer Capital Fund #702 3,305,829 3,305,829 7.0% interest TOTAL AMOUNTS DUE TO OTHER CITY FUNDS FROM FRA FUNDS $ 17,623,133 $ - $ 17,623,133

Page 25 City of Fontana, Financial Performance Report

600 2,400 550 2,200 500 2,000 450 1,800 1,526 Factors Indicating the City’s Economic Growth: 400 1,600 350 1,400 300 1,200 Business Licenses: “New” businesses are those that first applied for a 250 1,000

business license in that fiscal year. There were 8,748 active businesses in 200 800 Total FY Active BL FYActive Total

FY 2013-14. As of June 30, 2015 there were 9,034 active business "New"BL per Month 150 600 licenses in the City. Businesses are recorded as renewals in the 100 400 subsequent year. 50 200 - - During the month of March 2016, 160 new business licenses were issued, Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Other Categories Contractor - Specialty Contractor - General primarily to Contractor-Specialty (34), Contractor-General (51) & Retail Retail FY 15-16 "New" BL (26). In addition to these 160, the City received 47 other business license FY 14-15 "New" BL per Month applications that are pending approval. As of March 31, 2016, there are Business Type Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 9,058 active business licenses representing an increase of 24 since June Retail 37 45 23 29 20 24 29 28 26 30, 2015. Contractor - General 35 23 24 23 15 18 17 16 51 Contractor - Specialty 49 52 47 38 34 21 41 27 34 Business License accounts continue to be audited on a continuous basis Other Categories 60 51 39 26 38 31 57 55 49 - - - and any accounts on delinquent status are removed from the Active FY 15-16 "New" BL per 181 171 133 116 107 94 144 126 160 status. FY 15-16 "New" BL 181 352 485 601 708 802 946 1,072 1,232 FY 14-15 "New" BL 123 258 375 520 647 734 845 973 1,132 1,279 1,397 1,526 Current FY Total Active BL 8,869 9,040 9,064 9,064 9,060 8,957 9,018 9,071 9,058

85 500 New Sewer 75 450 New Sewer Hook-Ups: New sewer hook-ups indicate that new Hook-Ups 65 400 construction is ready for occupancy. A large number of residential Fiscal Year 2015-16 349 350 housing hook-ups follow a large number of previously issued building 55 283

Ups 300 permits. In March 2016, there were 81 new residential hook-ups and 2 - 45 commercial/industrial hook-up. 250 35

211 200 FYTotals 25 150

MonthlyHook 163 15 100

5 50

(5) Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun -

FY2015-16 Residential FY2015-16 Comm. & Ind. FY2015-16 Totals FY2014-15 Totals FY2013-14 Totals FY2011-2015 Average FY2015-16 Res. Permits (SFD) FY2014-15 Res. Permits (SFD)

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun FY2015-16 Comm. & Ind. 1 6 2 - 2 1 2 1 2 FY2015-16 Residential 39 23 45 20 30 68 53 64 81 FY2015-16 Totals 40 69 116 136 168 237 292 357 440 FY2014-15 Comm. & Ind. 1 1 - 1 1 - - 2 1 2 - - FY2014-15 Residential 4 8 32 8 27 37 19 12 48 14 16 49 FY2014-15 Totals 5 14 46 55 83 120 139 153 202 218 234 283

Page 26 City of Fontana, Financial Performance Report

Capital Reinvestment Fund #601 Fund Description: The Capital Reinvestment Fund was established in May 1998 to separate General Fund allocations for capital projects from operating funds. Its mission is to implement the City Council goal to invest 10% of the annual General Fund appropriations into discretionary infrastructure projects as defined in the Seven-Year Capital Improvement Program. Revenue Source: The Capital Reinvestment Fund’s main source of revenue is the General Fund. In the past 13 fiscal years, Capital Projects actual expenditures have totaled $187,051,004 through June 30, 2015.

As of March 31, 2016 Project Job Number Description Capital Budget Actuals Encumbrances Remaining Budget Notes Development Services 9325199601 Valley Blvd Transition District 275,000 589 - 274,411 9332200601 General Plan 1,609,000 814,282 733,777 60,941 9384400601 KIA Auto Mall 1,000,004 9,410 - 990,594 Engineering 9308700601 I-10/Cherry Interchange 264,413 111,100 - 153,313 9311501601 Sawtooth Project 2,462,420 1,970,061 15,128 477,231 9329700601 Sierra at Metrolink Crossing 98,180 29,272 68,000 908 9330100601 Oleander/Highland TS 305,000 165,550 56,918 82,532 9334900601 Auto Center Monument 150,000 - - 150,000 Public Works 9410301601 Pavement Rehabilitation 29,207,108 26,588,165 524,680 2,094,263 9412400601 San Bernardino Ave Paving - 2 Party 8,440,800 7,379,787 56,618 1,004,395 9412900601 Cherry/Walnut Storm Drain Repair 185,000 143,131 7,070 34,799 9432600601 Sidewalk Rehab Projet 500,000 348,529 16,504 134,967 9432700601 Fontana Museum Project 700,000 548,787 6,295 144,918 Total: $ 45,196,925 $ 38,108,663 $ 1,484,990 $ 5,603,272

Future Capital Projects Fund #603 Fund Description: The Future Capital Projects Fund was established in July 2011 to accumulate reimbursements received from SA NBAG and the Circulation Mitigation Development Impact Fee Fund. These reimbursements are being received as result of eight Cooperative Ag reements implemented between the City and SANBAG in December 2006. The City Council goal is to invest 100% of these funds into discret ionary infrastructure projects as defined in the Seven-Year Capital Improvement Program.

As of February 29, 2016 Project Job Number Description Capital Budget Actuals Encumbrances Remaining Budget Notes Engineering 9330800603 Jurupa: Sierra-Poplar Median 1,300,000 1,084,970 - 215,030 DIF Reimb. 9331500603 Foothill: Cherry-Hemlock Landscaping 1,500,000 1,329,572 - 170,428 DIF Reimb. Total: $ 2,800,000 $ 2,414,542 $ - $ 385,458

Page 27 City of Fontana, Financial Performance Report Grants and Rebates

The City is aggressively pursuing Grant money as a source to fund projects throughout the City. The purpose of this graph and related information is to report on a monthly and year to date basis the status of grants and

rebates that have been awarded during the fiscal year 2015/2016, as well as applications that have been submitted.

722

590

2 $ $1,000,000

Grants Awarded

Grant & Rebate Dollars Awarded & Grants Submitted

Applications Submitted Rebates Awarded $750,000 By Department Rebates Submitted Fiscal Year 2015/2016

$500,000

$250,000

101 399 897 727

, , , ,

808 488 614 634 000 000

, , , , , ,

593 963 000

, , ,

493 103 467 141

$32,430 $32,430 $32,430

, , , ,

$18,498 $18,498 $18,498 $18,498

2 492 1 65 2 41 484 70 276 555 1 900 250

$14,172 $14,172 $14,172

$11,750 $11,750 $11,750 $11,750

$3,000 $3,000

$2,540 $2,540 $2,540 $2,540

$2,200 $2,200

$2,000 $2,000

$1,200 $1,200

------

$ $ - $ - - $ $ $ $ - $ $ - - - - - $ $ $ $ - - Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Departments Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun YTD Fontana Community Foundation - City Administration - Human Resources - Information Technology - Public Works 53,256 56,134 250,000 $359,390 Police 777,335 41,963 $819,298 AdmSvc/EconDev/Housing 2,475,101 $2,475,101 Engineering 30,000 900,000 2,467,897 $3,397,897 Development Services -

Grants Awarded Fontana Fire District - *Community Services 18,000 242,808 185,593 $446,401 Total $2,493,101 - $1,103,399 - $1,141,727 $2,467,897 $41,963 - $250,000 - - - $7,498,087 Fontana Community Foundation - City Administration - Human Resources - Information Technology - Public Works 250,000 51,614 $301,614 Police 55,634 15,000 $70,634 Admin Services-Housing - Engineering 430,000 500,000 2,470,722 50,000 225,000 $3,675,722 Development Services - Fontana Fire District 650,000 $650,000

Grants Submitted Community Services 62,808 120,000 65,593 469,488 20,000 $737,889 Total $492,808 $555,634 $2,590,722 - $65,593 $900,000 $484,488 $70,000 $276,614 - - - $5,435,859 Police 2,000 14,172 1,200 2,540 2,430 13,998 $36,340 AdmSvc/EconDev/Housing - Public Works - Engineering - Fontana Fire District Awarded Community Services* 1,000 30,000 4,500 11,750 $47,250 Rebate/Other Total $2,000 $14,172 $2,200 $2,540 $32,430 $18,498 - $11,750 - - - - $83,590 Police 2,000 14,172 1,200 2,540 2,430 13,998 $36,340 AdmSvc/EconDev/Housing - Public Works - Engineering - Fontana Fire District

Submitted Community Services 1,000 30,000 4,500 11,750 $47,250 Rebate/Other Total $3,000 $14,172 $1,200 $2,540 $32,430 $18,498 - $11,750 - - - - $83,590 * Community Services is expected to receive reimbursements of $3,288,950 for the 2015-2016 fiscal year from the Fontana Unified School District Prop. 49 After School Education and Safety (ASES) program. Note: Amounts above include grants awarded in this Fiscal Year. These figures do not include any carryover funds or multi-year grants awarded in prior fiscal years.

Page 28 Grant Detail City of Fontana, Financial Performance Report

Grants Awarded

Grant Name Funding Source Fund # Date Amount

Fontana Community Foundation

Public Works City/County Payment Program FY14/15 - Beverage Container Recycling State 301 SEPTEMBER 2015 $53,256 Oil Payment Program- FY2015-16 (OPP6) State 301 NOVEMBER 2015 $56,134 Rubberized Pavement Grant Program 18892:(TRP6 2015-2016) 6th Cycle STATE 301 MARCH 2016 $250,000 Police

OTS STEP Grant 1516 State 301 SEPTEMBER 2015 $215,933 ABC OTS Mini Grant - ABC Enforcement 15/16 STATE 301 SEPTEMBER 2015 $14,900 BJA Body Worn Cameras FY 1415 Federal 301 SEPTEMBER 2015 $546,502 Homeland Security Grant 2015-Cyber Security & Equipment FEDERAL 301 JANUARY 2016 $41,963

Administrative Services/Economic Development/Housing Community Development Block Grant (CDBG) Program 15/16 Federal 362 JULY 2015 $1,903,423 HOME Investment Partnerships Program (HOME) 15/16 Federal 363 JULY 2015 $405,440 Emergency Solutions Grant (HESG) Program 15/16 Federal 362 JULY 2015 $166,238

Engineering Active Transportaion Safety & Encouragement Campaign 1516-Open Streets SCAG na SEPTEMBER 2015 $30,000 MSRC San Sevaine Bike Trail, PH I, Segment II AQMD 241 NOVEMBER 2015 $500,000 HSIP Cycle 7 - Centracs Software System FEDERAL 243 NOVEMBER 2015 $400,000 CA State Parks - Recreational Trail Program - San Sevaine Trail, PH I, Seg 1 STATE 301 DECEMBER 2015 $2,467,897

Development Services

Fontana Fire District

Community Services Kaiser Farm Fresh for Fontana Families - Farmers Market Support Foundation 301 SEPTEMBER 2015 $18,000 USDA Network for Healthy CA San Bern. County CX3 (SNAP-ED) 13/14 RND 4 Federal 301 SEPTEMBER 2015 $62,808 5310 FTA - 2 Senior Vans Federal 301 SEPTEMBER 2015 $180,000 2016 Childhood Obesity Prevention Grant 301 NOVEMBER 2015 $120,000 USDA Network for Healthy CA San Bern. County CX3 (SNAP-ED) 13/14 RND 5 Federal 301 NOVEMBER 2015 $65,593

Total through June 2016 $7,498,087

Grant Applications Submitted

Fontana Community Foundation

Human Resources

Public Works Rubberized Pavement Grant Program 18892:(TRP6 2015-2016) 6th Cycle STATE 301 DECEMEBER 2015 $250,000 AWARDED City/County Payment Program FY15/16 - Beverage Container Recycling State 301 MARCH 2016 $51,614

Police ABC OTS Mini Grant - ABC Enforcement 15/16 STATE 301 AUGUST 2015 $14,900 AWARDED Homeland Security Grant 2015-Cyber Security & Equipment FEDERAL 301 AUGUST 2015 $40,734 AWARDED Wells Fargo Foundation - F.R.S.T. 2016 FOUNDATION 301 JANUARY 2016 $15,000 OTS - STEP Grant FY 2017 - traffic OT STATE 301 JANUARY 2016 $364,395

Administrative Services/Economic Development/Housing

Engineering Active Transportaion Safety & Encouragement Campaign 1516-Open Streets SCAG na JULY 2015 $30,000 AWARDED HSIP Cycle 7 - Centracs Software System FEDERAL 243 JULY 2015 $400,000 AWARDED MSRC San Sevaine Bike Trail AQMD 241 AUGUST 2015 $500,000 AWARDED CA State Parks - Recreational Trail Program - San Sevaine Trail, Segment 1 STATE 301 SEPTEMBER 2015 $2,470,722 AWARDED Transportation Development Article 3, PH II ADA Bus Stop Access STATE 301 FEBRUARY 2016 $50,000 AWARDED Caltrans - Systemic Safety Analysis Report Program (SSAR) STATE 301 MARCH 2016 $225,000

Development Services

Fontana Fire District Assistance to Firefighters Grant (AFG) 2015- PPE - SCBA FEDERAL 301 DECEMBER 2015 $650,000

Community Services USDA Network for Healthy CA San Bern. County CX3 (SNAP-ED) 13/14 RND 4 Federal 301 JULY 2015 $62,808 AWARDED 2016 Childhood Obesity Prevention Grant 301 SEPTEMBER 2015 $120,000 AWARDED IMLS National Medal for Museum & Library Services Award Federal - SEPTEMBER 2015 Award Application USDA Network for Healthy CA San Bern. County CX3 (SNAP-ED) 13/14 RND 4 Federal 301 NOVEMBER 2015 $65,593 AWARDED Robert Wood Johnson Foundation -Invest in Health Foundation 301 JANUARY 2016 $60,000 NOT FUNDED Market Match/Ecology Center- Healthy Fontana Farmers Market Non-Profit 101 JANUARY 2016 $45,093 NOT FUNDED Kaiser Permanente Foundation - Fit for the Future Foundation 101 FEBRUARY 2016 $20,000

Page 29 Total through June 2016 $5,435,859 Rebates, Donations & other Awards Detail Awarded Funding City of Fontana, Financial Performance Report Name Source Fund # Date Cash Amount Value Amount Public Works

Police Fontana Federation of Hope - Fontana Police Explorer Post #531 JULY 2015 $2,000 Volunteer Appreciation Banquet- Police Benefit Assoc. SEPTEMBER 2015 $200 Community Emergency Response Team - So Cal Edison Donation SEPTEMBER 2015 1000 National Night Out- Various AUGUST 2015 $50 $200 National Night Out- Ontario Reign AUGUST 2015 $100 National Night Out- Rio Ranch Market AUGUST 2015 $450 National Night Out- Target AUGUST 2015 $200 National Night Out- Edgar Pazmino Jr. AUGUST 2015 $250 National Night Out- 66er's AUGUST 2015 $70 National Night Out- Dave & Busters AUGUST 2015 $60 Heroes & Helpers/ Bicycle Giveaway AUGUST 2015 $12,792 Red Ribbon Breakfast 2015 - Police Management Association OCTOBER 2015 $200 Red Ribbon Breakfast 2015 - Police Benefit Association OCTOBER 2015 $150 Red Ribbon Breakfast 2015 - Hilton Garden Inn OCTOBER 2015 $80 Red Ribbon Breakfast 2015 - Thompsons Building Materials OCTOBER 2015 $160 Red Ribbon Breakfast 2015 - Hadley Tow OCTOBER 2015 $750 Red Ribbon Breakfast 2015 - Armada Transport OCTOBER 2015 $750 Red Ribbon Breakfast 2015 - Weiner Family Trust OCTOBER 2015 $100 Red Ribbon Breakfast 2015 - Costco OCTOBER 2015 $80 Red Ribbon Breakfast 2015 - Kiwanis Club of Fontana OCTOBER 2015 $100 Red Ribbon Breakfast 2015 - Exchange Club of Fontana OCTOBER 2015 $100 Red Ribbon Breakfast 2015 - Janet M. Koehler-Brooks OCTOBER 2015 $70 Volunteer Appreciation Christmas Banquet- Center Stage NOVEMBER 2015 $163 Volunteer Appreciation Christmas Banquet- Jimmy Johns NOVEMBER 2015 $200 Volunteer Appreciation Christmas Banquet- Abundant Life Chiropractic NOVEMBER 2015 $98 Volunteer Appreciation Christmas Banquet- Corkey's Kitchen & Bakery NOVEMBER 2015 $20 Volunteer Appreciation Christmas Banquet- Hilton Garden Inn NOVEMBER 2015 $104 Volunteer Appreciation Christmas Banquet- Big 5 NOVEMBER 2015 $50 Volunteer Appreciation Christmas Banquet- Inland Empire 66ers NOVEMBER 2015 $48 Volunteer Appreciation Christmas Banquet- Dave & Busters NOVEMBER 2015 $60 Volunteer Appreciation Christmas Banquet- IHOP NOVEMBER 2015 $660 Volunteer Appreciation Christmas Banquet- POA NOVEMBER 2015 $230 Volunteer Appreciation Christmas Banquet- Red Hill Restaurant NOVEMBER 2015 $200 Volunteer Appreciation Christmas Banquet- Menchies NOVEMBER 2015 $100 Volunteer Appreciation Christmas Banquet- Sizzler NOVEMBER 2015 $60 Volunteer Appreciation Christmas Banquet- PMA NOVEMBER 2015 $200 Volunteer Appreciation Christmas Banquet- Ontario Reign Hockey Club NOVEMBER 2015 $116 Volunteer Appreciation Christmas Banquet- Cheesecake Factory NOVEMBER 2015 $25 Volunteer Appreciation Christmas Banquet- Rancho Cucamonga Quakes NOVEMBER 2015 $96 Heroes & Helpers/ Bicycle Giveaway- Police Officers Association DECEMBER 2015 $2,000 Heroes & Helpers/ Bicycle Giveaway-SBC Firefighters Association DECEMBER 2015 $1,250 Heroes & Helpers/ Bicycle Giveaway-Target DECEMBER 2015 $2,000 Heroes & Helpers/ Bicycle Giveaway-Police Management Association DECEMBER 2015 $1,000 Heroes & Helpers/ Bicycle Giveaway-Red Hill Restaurant DECEMBER 2015 $100 Heroes & Helpers/ Bicycle Giveaway-Armada Transport, Inc DECEMBER 2015 $1,000 Heroes & Helpers/ Bicycle Giveaway-Cycling Connection DECEMBER 2015 $4,450 Heroes & Helpers/ Bicycle Giveaway-Coats Cyclery DECEMBER 2015 $1,500 Heroes & Helpers/ Bicycle Giveaway-Jenson USA DECEMBER 2015 $698

Administrative Services/Economic Development/Housing

Engineering

Fontana Fire District

Community Services Let's Move on the Trail Event - San Bernardino Dept. of Public Health SEPTEMBER 2015 $1,000 Senior Community Center -Fontana Foundation of Hope NOVEMBER 2015 $30,000 Festival of Winter - Fontana Nissan DECEMBER 2015 $1,000 Festival of Winter - Thompson Building Materials DECEMBER 2015 $2,500 Festival of Winter -Westech College DECEMBER 2015 $1,000 Fontana Car Show - Seindners Collision FEBRUARY 2016 $2,000 Fontana Days Run - Aldi FEBRUARY 2016 $2,500 Fontana Days Run - Thompson Building Materials FEBRUARY 2016 $5,000 Summer Concert Series - Bel-Air Swap-Meet, Inc. FEBRUARY 2016 $2,000 Summer Concert Series - Fontana Recycling Center FEBRUARY 2016 $250

Total through June 2016 $57,820 $25,770

Applications Submitted Cash Amount Value Amount

Public Works

Police Fontana Federation of Hope - Fontana Police Explorer Post #531 JULY 2015 $2,000 National Night Out- Various AUGUST 2015 $50 $1,330 Heroes & Helpers/ Bicycle Giveaway AUGUST 2015 $12,792 Volunteer Appreciation Banquet- Police Benefit Assoc. SEPTEMBER 2015 $200 S C Edision - Community Emergency Response Team (CERT) SEPTEMBER 2015 $1,000 Red Ribbon Breakfast 2015 OCTOBER 2015 $2,540 Volunteer Appreciation Christmas Banquet- NOVEMBER 2015 $430 $2,000 Heroes & Helpers/ Bicycle Giveaway DECEMBER 2015 $4,350 $9,648

Administrative Services/Economic Development/Housing

Engineering

Fontana Fire District

Community Services Let's Move on the Trail Event - San Bernardino Dept. of Public Health JULY 2015 $1,000 Senior Community Center -Fontana Foundation of Hope NOVEMBER 2015 $30,000 Festival of Winter - DECEMBER 2015 $4,500 Summer Concert Series - Bel-Air Swap-Meet, Inc. FEBRUARY 2016 $2,000 Summer Concert Series - Fontana Recycling Center FEBRUARY 2016 $250 Fontana Days Run - Aldi FEBRUARY 2016 $2,500 Fontana Car Show - Seindners Collision FEBRUARY 2016 $2,000 Fontana Days Run - Thompson Building Materials FEBRUARY 2016 $5,000

Total through June 2016 $57,820 $25,770

Page 30 City of Fontana, Financial Performance Report

Development Services Organization Customer Service Quality Assurance

January 2016 (23 surveys returned) February 2016 (15 surveys returned) Each month the Development 5 5

Services Organization sends 4 4 150 surveys to a random 3 3 sampling of customers. There 2 2 were 14 survey cards

Survey Rating Survey 1

Survey Rating Survey 1 received in March 0 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Surveys Returned Surveys Returned The surveys request a rating of the level of customer assistance that was received. March 2016 - Current (14 surveys returned) A rating of 1 is below 5 expectations. A rating of 5 is above 4 expectations. The survey also invites the customer to comment on the 3 service that was received. The following charts 2 summarize the responses received. Survey Rating 1 The Development Services front counter staff assisted 2,138 customers in 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 March which equates to 113 Surveys Returned customers per day.

Page 31 City of Fontana, Financial Performance Report

As of March 31, 2016, the $2,500,000 Helicopter program has spent 72.77% of their $2,400,000 annual budget compared to $2,300,000 Helicopter Program a target of 75%. $2,200,000 2,078,638 $2,100,000 SIGNIFICANT ITEMS: $2,000,000 -August Helicopter costs includes a loan payment for $1,900,000 $157,684 for the R66 helicopter $1,800,000 and $78,134 for aviation insurance premiums. $1,700,000 1,587,177 - September Helicopter costs $1,600,000 reflect a reimbursement received of $16,151 for $1,500,000 overcalculated interest. $1,400,000 - October Helicopter costs includes the purchase of a $1,300,000 digital image processing $1,200,000 system in the amount of $1,100,000 1,178,596 $129,836. - December personnel costs $1,000,000 includes 3 payroll periods. $900,000 -January Helicopter costs includes $113,000 for an $800,000 engine overhual. $700,000 -February Helicopter costs $600,000 includes $19,651 for helicopter maintenance and engine $500,000 overhaul. $400,000 $300,000 Excludes encumbrances of $73,675 $200,000 $100,000 $0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Monthly Actuals FY2015-2016 Actuals FY2015-2016 Budget FY2014-2015 Actuals FY2013-2014 Actuals

Expenditure Categories Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Personnel $ 59,502 $ 46,771 $ 49,093 $ 51,558 $ 47,954 $ 78,844 $ 46,431 $ 50,008 $ 50,693 Hanger Costs 2,825 12,875 1,525 1,525 14,995 6,015 6,015 6,015 6,015 Helicopter Costs 3,388 252,516 (6,287) 167,477 25,494 7,888 120,836 26,639 16,127 Other Operating Costs - 790 131 88 177 20 26 295 778 Monthly Actuals $ 65,715 $ 312,952 $ 44,462 $ 220,648 $ 88,620 $ 92,767 $ 173,308 $ 82,957 $ 73,613 FY2015-2016 Actuals 65,715 378,667 423,129 643,777 732,397 825,164 998,472 1,081,429 1,155,042 FY2015-2016 Budget 132,265 264,530 396,794 529,059 661,324 793,589 925,853 1,058,118 1,190,383 1,322,648 1,454,912 1,587,177 FY2014-2015 Actuals 139,904 339,705 382,510 433,750 479,734 549,976 1,250,833 1,321,098 1,380,961 1,429,824 1,480,703 2,078,638

Page 32 City of Fontana, Financial Performance Report

$25,000,000

24,406,707 $22,500,000 Fire Services - County Contract 22,986,273 20,611,844

$20,000,000

$17,500,000

As of March 31, 2016, Fire has spent 74.06% of their $15,000,000 annual contract compared to a target of 75.00%. $12,500,000 SIGNIFICANT ITEMS:

$10,000,000

$7,500,000

$5,000,000

$2,500,000

$0 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Monthly Actuals FY2015-2016 Actuals FY2015-2016 Budget FY2014-2015 Actuals FY2013-2014 Actuals

Expenditure Categories Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Salaries & Benefits $ 1,494,527 $ 1,102,358 $ 2,104,866 $ 1,352,021 $ 1,432,418 $ 1,418,825 $ 2,052,789 $ 2,367,434 $ 2,253,931 Operating Expenses 10,649 201,600 53,728 5,393 235,508 15,385 7,586 236,692 23,584 Station Expenses 53,730 92,435 81,622 71,988 59,398 138,681 88,014 120,853 162,690 Fire Prevention Services - 2,436 941 1,794 285 4,877 564 1,681 918 Admin Overhead ------606,918 217,219 Monthly Actuals $ 1,558,906 $ 1,398,829 $ 2,241,157 $ 1,431,196 $ 1,727,609 $ 1,577,768 $ 2,148,953 $ 3,333,578 $ 2,658,342 FY2015-2016 Actuals 1,558,906 2,957,735 5,198,892 6,630,088 8,357,697 9,935,465 12,084,418 15,417,996 18,076,338 FY2015-2016 Budget 2,033,892 4,067,785 6,101,677 8,135,569 10,169,461 12,203,354 14,237,246 16,271,138 18,305,030 20,338,923 22,372,815 24,406,707 FY2014-2015 Actuals 1,146,358 3,064,374 4,589,232 7,050,731 8,664,850 12,130,683 13,825,198 15,318,413 16,757,077 19,484,686 21,414,744 22,986,273

Page 33 City of Fontana, Financial Performance Report INTERCHANGE PROJECTS

I-10/CHERRY INTERCHANGE I-15/DUNCAN CANYON

I-10/Cherry - Inception to date Expenditures I-15/Duncan Canyon - Inception to date Expenditures Opened for Use - January 2015 Opened for Use - October 2015

As of the Work this Total Work % Completed As of the Work this Total Work % Completed 30th of month Completed Construction Budget 30th of month Completed Construction Budget FY 08/09 $ - $ 77,232 0.00% 0.75% FY 08/09 $ 1,976,968 $ 1,976,968 0.0% 5.5% FY 09/10 29 77,261 0.00% 0.75% FY 09/10 583,862 2,560,830 0.0% 7.2% FY 10/11 386,697 463,958 0.00% 4.48% FY 10/11 1,971,967 4,532,797 0.0% 12.7% FY 11/12 33,410 497,368 0.00% 4.80% FY 11/12 1,193,606 5,726,403 0.0% 16.0% FY 12/13 3,950,954 4,448,322 21.83% 42.95% FY 12/13 9,929,550 15,655,953 29.7% 43.8% FY 13/14 1,775,942 6,224,264 61.97% 60.10% FY 13/14 10,523,271 26,179,224 68.6% 73.2% FY 14/15 3,170,827 9,395,091 95.77% 90.71% FY 14/15 4,838,556 31,017,780 83.9% 86.7% FY 15/16 FY 15/16 July - 9,395,091 95.91% 90.71% July 1,966 31,019,746 83.6% 86.7% August - 9,395,091 95.91% 90.71% August 223,999 31,243,745 84.7% 87.3% September - 9,395,091 95.91% 90.71% September 1,021,006 32,264,751 88.0% 90.2% October 32,958 9,428,049 96.27% 91.03% October 1,075,825 33,340,576 91.6% 93.2% November 1,373 9,429,422 96.28% 91.05% November 518,605 33,859,181 93.3% 94.6% December - 9,429,422 96.28% 91.05% December 105,081 33,964,262 93.6% 94.9% January - 9,429,422 96.28% 91.05% January 183,177 34,147,439 94.2% 95.4% February 2,381 9,431,803 96.31% 91.07% February 16,387 34,163,826 94.3% 95.5% March - 9,431,803 96.31% 91.07% I-10/CITRUS INTERCHANGE March 9,275 34,173,101 94.3% 95.5% April I-10/Citrus - Inception to date Expenditures April May Opened for Use - May 2014 May June June Budgeted Funding Sources: Construction Cost: As of the Work this Total Work % Completed 601- Capital Reinvestment $ 264,413 Administrative $ 111,833 30th of month Completed Construction Budget Budgeted Funding Sources: Construction Cost: 630- Circulation Mitigation 9,989,500 Environmental - FY 05/06 $ - $ 432,402 0.0% 1.5% 244- Prop 1B $ 13,972,000 Administrative $ 403,887 695- SWIP Capital Projects 102,820 Land Acquisition/ROW 856,000 FY 06/07 16,553 448,955 0.0% 1.6% 601- Capital Reinvestment 3,330,112 Environmental - Design 49,900 FY 07/08 740,331 1,189,286 0.0% 4.1% 622 - Storm Drain 5,900,473 Land Acquisition/ROW 1,496,394 Construction 9,339,000 FY 08/09 1,247,909 2,437,195 0.0% 8.4% 630- Circulation Mitigation 7,249,970 Design 3,567,895 Utilities - FY 09/10 3,560,974 5,998,169 0.0% 20.8% 659 - CFD # 70 Avellino 200,000 Construction 30,312,255 Other Costs (CAP ACQ) - FY 10/11 2,189,807 8,187,976 0.0% 28.3% 693- North Fontana Cap Proj 5,127,876 Utilities - FY 11/12 2,675,687 10,863,663 4.1% 37.6% Other Costs (CAP ACQ) - Total Funding Sources $ 10,356,733 Total Construction $ 10,356,733 FY 12/13 8,927,985 19,791,648 60.0% 68.5% FY 13/14 3,643,962 23,435,610 74.1% 81.1% Total Funding Sources $ 35,780,431 Total Construction $ 35,780,431 FY 14/15 3,250,938 26,686,548 93.6% 92.4% FY 15/16 July 100,000 26,786,548 93.6% 92.7% August 927 26,787,475 93.6% 92.7% September - 26,787,475 93.6% 92.7% October 10,670 26,798,145 93.7% 92.8% November 5,377 26,803,522 93.7% 92.8% December - 26,803,522 93.7% 92.8% January - 26,803,522 93.7% 92.8% February 7,871 26,811,393 93.7% 92.8% March - 26,811,393 93.7% 92.8% April May June Budgeted Funding Sources: Construction Cost: 242- Measure I $ 653,662 Administrative $ 3,729,967 245 - Measure I Nexus 4,810,430 Environmental - 281- Gas Tax (State) 541,726 Land Acquisition/ROW 6,635,678 301- Grants 3,238,000 Design 4,904,926 302- Transp Enhancement - Construction 13,617,076 601- Capital Reinvestment 1,177,543 Utilities - 630- Circulation Mitigation 17,766,893 Other Costs (CAP ACQ) 695- SWIP Capital Projects 699,393 Total Funding Sources $ 28,887,647 Total Construction $ 28,887,647 * Negative amounts in the month of July is due to year-end accrual reversals.

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